Today's Law As Amended

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SB-384 Housing.(2019-2020)



SECTION 1.
 The Legislature hereby finds and declares the following:
(a) According to the most recent United States Census, California’s poverty rate is 16 percent, 1.4 percent higher than the national rate of 14.6 percent. However, under an alternative method, also calculated by the United States Census Bureau, called the Supplemental Poverty Measure, California has the highest poverty rate in the nation at 23.4 percent, well above the national alternative rate of 15.5 percent.
(b) The median value of a home in California of $383,900 is 111.6 percent higher than the national median home value of $181,400, yet the median household income of $61,400 in California is only 15.7 percent higher than the national average of $53,046. This may help to explain why only 56 percent of Californians own a home, far behind the national average of 65.5 percent.
(c) According to the Department of Housing and Community Development’s 2001 report on local development fees, “California’s high residential development fees significantly contribute to its high housing costs and prices.” In fact, 15 years ago, local fees accounted for 10 to 15 percent of the cost of building a home. At that time, it was estimated that a reduction of local fees by half could increase home ownership by as much as 14 percent. Today, data from the California Building Industry Association shows local fees may account for 30 percent of the cost of a new home.

SEC. 2.

 Section 21168.6.10 is added to the Public Resources Code, to read:

21168.6.10.
 (a) For purposes of this section, the following definitions apply:
(1) “Environmental review document” means any of the following:
(A) A determination that a project is exempt from this division.
(B) A negative declaration or mitigated negative declaration.
(C) An environmental impact report.
(2) “Housing development project” or “project” means a housing development project with 50 or more residential units.
(b) The Judicial Council shall, on or before September 1, 2020, adopt a rule of court that applies to any action or proceeding brought to attack, review, set aside, void, or annul the certification or adoption of an environmental review document for a qualified project that meets the requirements of subdivision (c) or the granting of any approval for the qualified project, to require the action or proceeding, including any potential appeals therefrom, to be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court.
(c) (1) The draft environmental review document and final environmental review document for a qualified project shall include a notice in not less than 12-point type stating the following:

THIS ENVIRONMENTAL REVIEW DOCUMENT IS SUBJECT TO SECTION 21168.6.10 OF THE PUBLIC RESOURCES CODE, WHICH PROVIDES, AMONG OTHER THINGS, THAT THE LEAD AGENCY NEED NOT CONSIDER CERTAIN COMMENTS FILED AFTER THE CLOSE OF THE PUBLIC COMMENT PERIOD, IF ANY, FOR THE DRAFT ENVIRONMENTAL REVIEW DOCUMENT. ANY JUDICIAL ACTION CHALLENGING THE CERTIFICATION OR ADOPTION OF THE ENVIRONMENTAL REVIEW DOCUMENT OR THE APPROVAL OF THE PROJECT DESCRIBED IN SECTION 21168.6.10 OF THE PUBLIC RESOURCES CODE IS SUBJECT TO THE PROCEDURES SET FORTH IN THAT SECTION. A COPY OF SECTION 21168.6.10 OF THE PUBLIC RESOURCES CODE IS INCLUDED IN THE APPENDIX TO THIS ENVIRONMENTAL REVIEW DOCUMENT.

(2) The draft environmental review document and final environmental review document shall contain, as an appendix, the full text of this section.
(3) Within 10 days after the release of the draft environmental review document, if any, the lead agency shall conduct an informational workshop to inform the public of the key analyses and conclusions of that document.
(4) Within 10 days before the close of the public comment period, the lead agency shall hold a public hearing to receive testimony on the draft environmental review document. A transcript of the hearing shall be included as an appendix to the final environmental review document.
(5) (A) Within five days following the close of the public comment period, a commenter on the draft environmental review document may submit to the lead agency a written request for nonbinding mediation. The lead agency and applicant shall participate in nonbinding mediation with all commenters who submitted timely comments on the draft environmental review document and who requested the mediation. Mediation conducted pursuant to this paragraph shall end no later than 35 days after the close of the public comment period.
(B) A request for mediation shall identify all areas of dispute raised in the comment submitted by the commenter that are to be mediated.
(C) The lead agency shall select one or more mediators who shall be retired judges or recognized experts with at least five years’ experience in land use and environmental law or science, or mediation. The applicant shall bear the costs of mediation.
(D) A mediation session shall be conducted on each area of dispute with the parties requesting mediation on that area of dispute.
(E) The lead agency shall adopt, as a condition of approval, any measures agreed upon by the lead agency, the applicant, and any commenter who requested mediation. A commenter who agrees to a measure pursuant to this subparagraph shall not raise the issue addressed by that measure as a basis for an action or proceeding challenging the lead agency’s decision to certify or to adopt the environmental impact report or to grant project approval.
(6) The lead agency need not consider written comments submitted after the close of the public comment period, unless those comments address any of the following:
(A) New issues raised in the response to comments by the lead agency.
(B) New information released by the public agency subsequent to the release of the draft environmental review document, such as new information set forth or embodied in a staff report, proposed permit, proposed resolution, ordinance, or similar documents.
(C) Changes made to the project after the close of the public comment period.
(D) Proposed conditions for approval, mitigation measures, or proposed findings required by Section 21081 or a proposed reporting and monitoring program required by paragraph (1) of subdivision (a) of Section 21081.6, if the lead agency releases those documents subsequent to the release of the draft environmental impact report.
(E) New information that was not reasonably known and could not have been reasonably known during the public comment period.
(7) The lead agency shall file the notice required by subdivision (a) or (b) of Section 21152 within five days after the last initial project approval.
(d) (1) The lead agency shall prepare and certify the record of the proceedings in accordance with this subdivision and in accordance with Rule 3.2205 of the California Rules of Court. The applicant shall pay the lead agency for all costs of preparing and certifying the record of proceedings.
(2) No later than three business days following the date of the release of the draft environmental review document, the lead agency shall make available to the public in a readily accessible electronic format the draft environmental review document and all other documents submitted to or relied on by the lead agency in the preparation of the draft environmental review document. A document prepared by the lead agency or submitted by the applicant after the date of the release of the draft environmental impact report that is a part of the record of the proceedings shall be made available to the public in a readily accessible electronic format within five business days after the document is prepared or received by the lead agency.
(3) Notwithstanding paragraph (2), documents submitted to or relied on by the lead agency that were not prepared specifically for the project and are copyright protected are not required to be made readily accessible in an electronic format. For those copyright protected documents, the lead agency shall make an index of the documents available in an electronic format no later than the date of the release of the draft environmental review document, or within five business days if the document is received or relied on by the lead agency after the release of the draft environmental review document. The index shall specify the libraries or lead agency offices in which hardcopies of the copyrighted materials are available for public review.
(4) The lead agency shall encourage written comments on the project to be submitted in a readily accessible electronic format, and shall make any such comments available to the public in a readily accessible electronic format within five days of their receipt.
(5) Within seven business days after the receipt of any comment that is not in an electronic format, the lead agency shall convert that comment into a readily accessible electronic format and make it available to the public in that format.
(6) The lead agency shall indicate in the record of the proceedings comments received that were not considered by the lead agency pursuant to paragraph (6) of subdivision (c) and need not include the content of the comments as a part of the record.
(7) Within five days after the filing of the notice required by subdivision (a) or (b) of Section 21152, the lead agency shall certify the record of the proceedings for the approval or determination and shall provide an electronic copy of the record to a party that has submitted a written request for a copy. The lead agency may charge and collect a reasonable fee from a party requesting a copy of the record for the electronic copy, which shall not exceed the reasonable cost of reproducing that copy.
(8) Within 10 days after being served with a complaint or a petition for a writ of mandate, the lead agency shall lodge a copy of the certified record of proceedings with the superior court.
(9) Any dispute over the content of the record of the proceedings shall be resolved by the superior court. Unless the superior court directs otherwise, a party disputing the content of the record shall file a motion to augment the record at the time it files its initial brief.
(10) The contents of the record of proceedings shall be as set forth in subdivision (e) of Section 21167.6.
(e) Subdivision (c) and paragraphs (2) and (3) of subdivision (d) do not apply to a determination that the project is exempt from this division.
(f) (1) Notwithstanding any other law, in granting relief in an action or proceeding brought pursuant to this division challenging a housing development project, the court shall not stay or enjoin the siting, construction, or operation of the project unless the court finds either of the following:
(A) The continued construction or operation of the housing development project presents an imminent threat to public health and safety.
(B) The housing development project site contains unforeseen important Native American artifacts or unforeseen important historical or archaeological values that would be materially, permanently, and adversely affected by the continued construction or operation of the project unless the court stays or enjoins the construction or operation of the project.
(2) If the court finds that subparagraph (A) or (B) of paragraph (1) is satisfied, the court shall only enjoin those specific activities associated with the housing development project that present an imminent threat to public health and safety or that materially, permanently, and adversely affect unforeseen important Native American artifacts or unforeseen important historical or archaeological values.

SEC. 3.

 Section 17152 of the Revenue and Taxation Code is amended to read:

17152.
 Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is modified as follows:
(a) The two-year period in Section 121(a) of the Internal Revenue Code shall be reduced by the period of the taxpayer’s service, not to exceed 18 months, in the Peace Corps during the five-year period ending on the date of the sale or exchange.
(b) If the taxpayer is prohibited from filing a joint return pursuant to Section 18521, Section 121(b)(2)(A) of the Internal Revenue Code shall nevertheless be treated as being satisfied if the taxpayer files a joint return for federal income tax purposes for the same taxable year. However, in no instance shall the total amount excludable from gross income under Section 121(a) of the Internal Revenue Code with respect to any sale or exchange exceed the maximum amount allowed by Section 121(b) of the Internal Revenue Code.
(c) (1) If a taxpayer has, at any time, made an election for federal purposes under Section 121(f) of the Internal Revenue Code not to have Section 121 of the Internal Revenue Code apply to a sale or exchange, Section 121 of the Internal Revenue Code shall not apply to that sale or exchange for state purposes, a separate election for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 17024.5, the federal election shall be binding for purposes of this part, and that election shall be treated as an election to include in gross income for purposes of this part all the gain from the sale or exchange of that property, including that amount which, but for that election, would have been excluded from income under Section 121(a) of the Internal Revenue Code for state purposes.
(2) If a taxpayer fails to make an election for federal purposes under Section 121(f) of the Internal Revenue Code to not have Section 121 of the Internal Revenue Code apply to a sale or exchange, no election under Section 121(f) of the Internal Revenue Code shall be allowed for state purposes, Section 121 of the Internal Revenue Code shall apply to that sale or exchange for state purposes, and a separate election for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 17024.5.
(d) (1) If a taxpayer has, at any time, made an election for federal purposes under Section 312(d)(2) of the Taxpayer Relief Act of 1997 (Public Law 105-34), relating to sales before date of enactment, or Section 312(d)(4) of that act, relating to binding contracts, to not have the amendments made by Section 312 of the Taxpayer Relief Act of 1997 (Public Law 105-34) apply to a sale or exchange, the amendments made by the act adding this subdivision shall not apply to that sale or exchange, Sections 1, 4, and 6 of Chapter 610 of the Statutes of 1997 shall not apply to that sale or exchange, a separate election for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 17024.5, and the federal election shall be binding for purposes of this part.
(2) If a taxpayer fails to make an election for federal purposes under Section 312(d)(2) of the Taxpayer Relief Act of 1997 (Public Law 105-34), relating to sales before date of enactment, or Section 312(d)(4) of that act, relating to binding contracts, to not have the amendments made by Section 312 of the Taxpayer Relief Act of 1997 (Public Law 105-34) apply to a sale or exchange, an election under Section 312(d)(2) of the Taxpayer Relief Act of 1997 (Public Law 105-34), relating to sales before date of enactment, or Section 312(d)(4) of that act, relating to binding contracts, shall not be allowed for state purposes, the amendments made by the act adding this subdivision shall apply to that sale or exchange, Sections 1, 4, and 6 of Chapter 610 of the Statutes of 1997 shall apply to that sale or exchange, and a separate election for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 17024.5.
(e) (1) If a taxpayer has, at any time, made or revoked an election for federal purposes under Section 121(d)(9) of the Internal Revenue Code to suspend the running of the five-year period described in Sections 121(a), 121(c)(1)(B), and 121(d)(7) of the Internal Revenue Code, that election or revocation of election to suspend the five-year period under Section 121(d)(9) of the Internal Revenue Code shall be applicable for state purposes, a separate election or revocation of election for purposes of Section 121(d)(9) of the Internal Revenue Code may not be allowed under paragraph (3) of subdivision (e) of Section 17024.5, and the federal election or revocation of election shall be binding for purposes of this part.
(2) If a taxpayer fails to make an election for federal purposes under Section 121(d)(9) of the Internal Revenue Code to suspend the running of the five-year period described in Sections 121(a), 121(c)(1)(B), and 121(d)(7) of the Internal Revenue Code, that five-year period may not be suspended under Section 121(d)(9) of the Internal Revenue Code for state purposes, and a separate election for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 17024.5.
(f) Section 121(d)(11) of the Internal Revenue Code, relating to property acquired from a decedent, shall not apply.
(g) If the buyer of the principal residence is a first-time homeowner who is subject to income taxation imposed by this state, Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, is modified as follows:
(1) Section 121(b)(1) of the Internal Revenue Code, relating to in general, is modified by substituting “$300,000” in lieu of “$250,000.”
(2) Section 121(b)(2)(A) of the Internal Revenue Code is modified by substituting “$600,000” in lieu of “$500,000.”
(3) Section 121(b)(4) of the Internal Revenue Code, relating to special rule for certain sales by surviving spouses, is modified by substituting “$600,000” in lieu of “$500,000.”
(g) (h)  The amendments made by Section 417 of the Tax Relief and Health Care Act of 2006 (Public Law 109-432) to Section 121(d)(9) of the Internal Revenue Code, relating to uniformed services, foreign service, and intelligence community, shall apply to sales or exchanges that occur on or after January 1, 2010.
(h) (i)  The amendments made by subdivision (a) of Section 7 of the Mortgage Forgiveness Debt Relief Act of 2007 (Public Law 110-142) to Section 121 of the Internal Revenue Code, relating to exclusion of gain from sale of principal residence, shall apply to sales or exchanges that occur on or after January 1, 2010.
SEC. 4.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.