With Test Run Budget Passed, Real Negotiations Have Begun

Last week was the Constitutional deadline for the Legislature to pass a budget. However this budget will not be signed by the Governor in order to close a $45 billion deficit. To address the budget crisis, the Governor and Democrats in the Legislature are crafting language to raise taxes on businesses while also borrowing from special funds — including education funding mandated under the voter-approved Proposition 98.

July 1 is the start of the next fiscal year, so a budget deal must be passed and signed by midnight on June 30. The language of the entire package must be made available to the public on June 27 to comply with a constitutional requirement that bills in their final form be in print for 72 hours before being passed by the Legislature.

The State Budget passed last week will most likely be substantially amended by June 27.  WMA staff is closely monitoring the budget process to determine if any of the language will have a material impact on the manufactured housing community industry, but so far, all is quiet on that front. The State Budget can be viewed by clicking here.

Legislation Easing Path to New Lot Construction Passes Important Policy Committee

On Tuesday, the Senate Housing Committee passed AB 2387 (Pellerin, D-Santa Cruz), which would allow mobilehome parks to construct up to 10 percent of additional lots in a manufactured housing community without paying additional local business taxes and development impact fees. The measure passed the committee on a 10-0 vote and will next be considered by the Senate Local Government Committee on June 26.

Of special interest is that this bill is supported by its sponsor, the California Manufactured Housing Institute as well as WMA, and GSMOL. That certainly doesn’t happen very often!

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

Other Bills Being Considered by Policy Committees

Several other bills of importance to WMA are set to be heard over the next two weeks before the Legislature adjourns for its summer recess after July 4. (The Senate and Assembly will be out of session from July 4 through August 5.)

The following bills are set for hearings over the next two weeks.

AB 2022 (Addis, D-Morro Bay) – Oppose

This bill, which deals 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, which will be heard in the Senate Housing Committee on July 2. If it passes, it will move to the Senate Appropriations Committee, which could decide upon the Legislature’s return in August to hold the bill on the suspense file due to its fiscal impact and the current state budget crisis.

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

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

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

AB 2247 passed by the Assembly on a 71-0 vote and will be considered by the Senate Housing Committee on June 24.  If it passes out of committee, it will be considered by the Senate Appropriations Committee.

To read the language of AB 2247, please click here.

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

This bill, sponsored by WMA, would inform community owners more promptly about resident violations that, if left uncured, could result in a suspension or revocation of a Permit to Operate (PTO). 

This bill will be considered by the Assembly Housing and Community Development Committee on June 26. 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.

Major Deal Struck to Limit Frivolous Lawsuits Against Employers

While not directly relevant to the manufactured housing community industry, a significant deal was struck between employer groups led by the California Chamber of Commerce and public employee labor union groups led by the California Labor Federation to reform the Private Attorneys General Act (PAGA). The deal enables aggressive trial lawyers to file lawsuits against employers for minor technical violations to secure significant financial settlement agreements. 

The existing law makes it easier for an employer to pay a few thousand dollars to make the lawsuit go away than go through the time and expense of moving to a full trial. This is why the trial lawyer lobby was so upset about the deal being struck.

This compromise was reached in order to avoid a costly ballot measure campaign this November, since business groups have secured enough signatures to place a repeal of PAGA on the ballot. A legislative compromise means the ballot measure will be withdrawn from the ballot, and PAGA will be reformed to allow employers an opportunity to cure violations of the Labor Code without facing significant fines.

To read a general summary of the struck deal, please click here.

WMA’s Annual Dues Renewal Campaign Is Underway

Since 1945, WMA has been the leading advocate for manufactured housing community owners. By renewing, you ensure that WMA will remain a strong organization that protects your business interests.

Renew today to continue receiving the valuable benefits and services included in a WMA membership, such as representation before state and local governments, superior education, forms and manuals, insurance discounts, day-to-day assistance, and much more.

As a reminder, membership dues will remain the same this year, and we have made it even easier for you to renew your membership by allowing you to do so online.

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.