With House of Origin Deadline Passed, Legislature Tackles State Budget Crisis

The House of Origin deadline was last Friday, and roughly 35% of the 2,159 bills introduced this year died — a dramatic increase from historical norms. Many of the bills that were killed would have had a significant effect on the state budget deficit, which is estimated to be $44.9 billion this year, despite early budget actions that were taken to reduce the deficit by approximately $7 billion.

Much of the work being done is taking place in the Senate and Assembly Budget Committees, working off a revised budget proposal introduced in early May by the Governor. Budget committees are resolving differences with the Governor’s office on key program cuts that include deferring $5.5 billion of school funding as required by Proposition 98, scaling back a minimum wage increase up to $25 per hour for healthcare workers, and eliminating home care services for 1,500 elderly or disabled undocumented immigrants.

There is also a serious discussion taking place about the wisdom of enacting various tax increases on businesses that utilize a Net Operating Loss (NOL) deduction by eliminating the deduction to raise nearly $1 billion in new revenue.

To read and learn more about the Governor’s proposed 2024-25 budget, please click here.

In response to the Governor’s budget proposal, the Legislature this week distributed a summary of its own budget proposal that can be read by clicking here.

The next couple of weeks will see the Legislature hold multiple budget hearings as a final plan is developed by the Constitutional deadline of June 15. In a column written by Dan Walters, a veteran journalist in Sacramento, he explains the process of crafting this year’s state budget and how it has taken shape.  You can read the column by clicking here.

WMA continues to monitor the budget as it is being written, paying special attention to any trailer bill language that is often used to pass policies contained in bills previously stopped but resurrected in the budget process. The misuse of the budget trailer bill process has been previously mentioned in this column, and our lobbying team will keep you apprised of any developments that could affect manufactured housing communities across the state.

Committees Begin Meeting in Advance of Summer Recess

Once the state budget is passed, the Legislature’s committees will start to pick up the pace of hearing bills in the so-called Second House in advance of the Summer Recess will begin on July 3. Several bills of interest to WMA will be considered over the coming weeks, including the following:

AB 2022 (Addis, D-Morro Bay) – OPPOSE

This bill, dealing with how parkowners and managers operate in emergency situations, was substantially amended from its introduced version. The Assembly Appropriations Committee advanced the bill to the full Assembly, despite a fiscal analysis that showed the legislation would have a $2.6 million impact on the state’s General Fund with the addition of 13 employees at the California Department of Housing and Community Development (HCD). 

AB 2022 passed the full Assembly on a 56-4 vote with 20 legislators abstaining. WMA continues to oppose this measure. It will be heard in the Senate Judiciary Committee in late June and if passed, will move to the Senate Appropriations Committee — which could decide to not advance the bill to the full Senate for consideration.

To read the language of AB 2022, please click here.

AB 2387 (Pellerin, D-Santa Cruz) – SUPPORT

This bill would exempt new spaces constructed in existing mobilehome parks from local fees and taxes not currently levied on other spaces in the park. WMA testified in support of this measure, and we continue to work with the author to ensure that areas used for recreational vehicle storage and boat storage can be converted to new housing. 

The bill limits the number of new spaces that are exempt from fees and taxes to ten percent of the permitted spaces currently allowed in the park. For example, this bill would allow for ten new spaces to be constructed in an existing 100-space mobilehome park. As drafted, the bill involves new space construction and is silent on the number of homes placed on a space.

If the Senate Judiciary Committee passes the bill in mid to late June (it passed the Assembly on a 69-0 vote), it will be considered by the Senate Appropriations Committee.

To read the most current language of AB 2387, please click here.

AB 2291 (Alanis, R-Modesto) – SUPPORT

This bill was originally drafted in response to the California State Audit of the Mobilehome Residency Law Protection Program (MRLPP). It would have suspended the annual $10 per lot fee and would have required Legal Service Providers (LSPs) to disclose to HCD how funds distributed to LSPs are being spent in dealing with MRLPP complaints. This bill has received no opposition throughout the process so far. If AB 2291 passes the Senate Judiciary Committee in mid to late June, it will advance to the Senate Appropriations Committee.

To read the language of AB 2291, please click here.

AB 2247 (Wallis, R-Rancho Mirage) – SUPPORT

This bill is a sunset extension bill that will extend the life of the Mobilehome Parks Act (MPA), set to expire on January 1, 2025, to January 1, 2030. AB 2247 will also require HCD to provide residents with violations about the Manufactured Housing Opportunity and Revitalization (MORE) programs to inform them how to apply for loans and grants to correct the violation.  WMA was the primary witness in support of this legislation.

AB 2247 was amended and passed by the Assembly on a 71-0 vote and will be considered by the Senate Judiciary Committee later in June. If it passes out of committee, it will be considered by the Senate Appropriations Committee.

To read the language of AB 2247 without the amended language, please click here.

SB 1108 (Ochoa Bogh, R-Redlands) – SUPPORT

This bill is sponsored by WMA and would more promptly inform community owners about resident violations that could result in a suspension or revocation of a Permit to Operate (PTO) if left uncured. This bill has received no opposition and will soon be considered by the full Senate before being transmitted to the Assembly for its consideration.

While not yet assigned to a policy committee, it is likely that the Assembly Housing and Community Development will hear the bill in mid-to late June. If passed, it will be considered by the Assembly Appropriations Committee.

To read the language of SB 1108, please click here.

To view a list of bills being monitored and tracked by WMA and to learn about the positions WMA has taken on these legislative measures, please click here.

WMA June Coffee Talk to Discuss Frank J. Evans Charitable Trust Scholarship Program

Please mark your calendars for June 6 at 10:00 am for our monthly coffee talk. This month’s topic will be the Frank J. Evans Charitable Foundation’s Scholarship Program that provides $2,000 annual scholarships to selected applicants living in WMA-member manufactured housing communities.

This past year, scholarship recipients received certificates of recognition from their respective legislators as part of WMA’s ongoing efforts to educate elected officials about the outreach our parkowners do for their residents and communities.   

This month’s “Coffee Talk” will feature Charlene Solyman, Vice President of Evans Management Services and WMA Legislative and Communications Assistant Ray Perez who has been instrumental in coordinating the schedules of scholarship recipients and legislators in their district offices. 

To learn more about how to join this month’s Coffee Talk that is free of charge to WMA members, please click here.

It is an honor to serve WMA. Please feel free to reach me directly at chris@wma.org, or on my direct line at the office at 916.288.4026 if I may be of assistance or you need additional information.