State Adopts Comprehensive Housing Legislation

December 2017
Number 81

Facing one of the tightest housing markets in California history, state lawmakers have approved an extensive package of bills intended to maintain existing housing stocks and boost new housing construction. These bills become effective on January 1, 2018.

This legislative package will provide funding to stimulate housing production and will eliminate procedural hurdles to getting housing built. Alternatively, though, the bills also require more detailed justification and reporting on planning for and production of housing, limit local agencies’ ability to say no to development projects, and may increase local agencies’ infrastructure costs.

Summaries of the legislation are provided below.

Funding

Senate Bills 2 and 3: The Building Homes and Jobs Act and Veteran and Affordable Housing Bond

Senate Bills (SB) 2 and 3 provide funding opportunities for local housing projects and programs. SB 2 establishes a $75 fee for recorded documents, excluding commercial and residential real estate sales. During the first year the fee is collected, local governments will have access to half of the money collected to update planning documents and zoning ordinances, while the rest will be allocated to the Department of Housing and Community Development (HCD) to assist homeless people. After the first year, up to 70 percent of the fee proceeds will be allocated to local governments for purposes including development of affordable rental and ownership housing, creation of home ownership opportunities, and matching funds for localities that approve low-income housing projects.

SB 3 places a $4 billion general obligation bond for veteran and affordable housing and infill infrastructure on the November 2018 ballot.

Assembly Bill (AB) 571: Expands Funding Access for Farmworker Housing Projects

AB 571 expands the availability of the state’s Low Income Housing Tax Credit Program to aid farmworker housing development and redefines the term “farmworker housing” to mean “housing which is available to and occupied by not less than 50 percent of farmworkers and their households” rather than the prior 100 percent requirement. The bill also extends the occupancy period during which migrant farm labor centers are open from 180 days to 275 days.

Local governments, particularly those in rural districts, should prepare for additional housing developments for farmworkers. The reduction of the occupancy requirement for farmworker housing and the extension of the occupancy period during which migrant farm labor centers are open may result in increased costs to the migrant farm labor centers.

Approvals

Senate Bill 35: Streamlined Approval of Multifamily Residential Developments

SB 35 streamlines the development process for infill multifamily residential developments in communities that have not met their fair share housing goals. The bill makes approval of such developments on sites already zoned to accommodate them a ministerial action, eliminating public input and CEQA review and removing local discretion. A developer must pay prevailing wages on the projects fast-tracked under this bill. The bill sunsets on January 1, 2026.

Senate Bill 167 and Assembly Bills 678 and 1515: Higher Burden of Proof for Disapproval of Development

SB 167 and AB 678 make significant changes to the Housing Accountability Act (HAA), also known as the Anti-NIMBY Law. These amendments impose a heightened standard of proof on local agency governing bodies that vote no on housing projects, authorize the award of attorneys’ fees to housing advocates and project applicants who successfully challenge such disapprovals and allow courts to vacate local disapprovals and impose fines of $10,000 or more per housing unit within an affected project where a local government failed to comply with a court order.

Local agencies should be aware that if courts find that the agency acted in bad faith when it disapproved or conditionally approved a development, the agency could be subject to additional fines if it fails to abide by a court’s injunctive order. To prevent the imposition of fines, local agencies should ensure that their decision to disapprove or conditionally approve a development is based on sufficient evidence that meets the higher burden of proof.

AB 1515 strengthens the HAA by imposing a “reasonable person” standard for determining consistency, compliance, and conformity with any applicable plan or requirement for a housing development project or emergency shelter under the HAA. Concurrent with AB 678’s changes, this law makes it more difficult for localities to vote down housing projects or emergency shelters that comply with existing land use regulations. Per the bill’s author, AB 1515 gives courts a clear standard for interpreting the HAA in favor of building housing, thus weakening local government power to disapprove development.

Assembly Bill 1505: Restores Locals’ Right to Apply Inclusionary Ordinances to Rental Housing

AB 1505 restores a local agency’s right to require that at least 15 percent of units in a rental housing development be set aside as affordable to low-or moderate-income residents. The bill supersedes a 2009 appeals court decision that eliminated local governments’ ability to apply inclusionary policies to rental housing. In addition to restoring locals’ rights to apply inclusionary housing rules to rental housing developments, AB 1505 grants HCD authority to review such ordinances if they were approved or amended after September 15, 2017 and if the locality fails to meet certain housing production thresholds.

Local governments that already have inclusionary housing policies on the books should be prepared to re-familiarize themselves with their inclusionary policies and to apply them as necessary.

Housing Element

Senate Bill 166: Local Governments Must Perpetually Maintain Housing Site Inventory

SB 166 revises the “No Net Loss” zoning law to require local governments to maintain enough housing sites to meet their assigned housing needs at all times during a general plan housing element planning period. Existing law prohibits local agency governing boards from approving new housing development at significantly lower densities than are projected in the housing element of the local agency’s general plan without identifying other sites that could accommodate the lost units. SB 166 ensures that, as development occurs, local governments reassess their ability to accommodate new housing on remaining housing sites in their inventory and make adjustments to their zoning if needed. According to the bill’s author, prior law did not adequately ensure that local governments would maintain a supply of available land to accommodate unmet housing needs because land that was previously zoned for lower-income housing could later be developed into high-end market-rate housing or a commercial development. SB 166 requires local governments to maintain housing site inventory at each income level.

Local governments should maintain a log of adequate housing sites, which may or may not result in development of the sites that include affordable housing. Local governments should also be prepared to review their remaining housing sites and analyze zoning.

Assembly Bill 72: Permits HCD to Revoke Findings of Compliance with Housing Element

AB 72 enhances HCD’s authority to review any local government action or failure to act that it deems inconsistent with that local government’s housing element. HCD may revoke its finding that a housing element complies with state law and notify the local government entity and the state Attorney General that the entity is in violation of state law.

Assembly Bill 879: Mandates More Comprehensive Housing Element and Annual Report

AB 879 creates additional requirements for a local government’s housing element and the housing element portion of its general plan annual report and also applies the existing and new requirements to charter cities, which were previously exempt. Under the new law, the housing element must discuss efforts to address restraints to housing development, while the annual report must include:

  • The number of housing development applications received in the prior year;
  • Units included in all development applications in the prior year;
  • Units approved and disapproved in the prior year; and
  • A list of sites rezoned to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on specified sites.

The bill also requires the housing element portion of the annual report to be prepared using standards adopted by HCD and requires that agency to conduct a study evaluating the reasonableness of local development fees.

Local governments should be prepared to create a more extensive general plan and to include a housing element that addresses constraints affecting development, maintenance, and improvement of housing for all income levels.

Assembly Bill 1397: Zoning for Realistic Housing Capacity

AB 1397 establishes higher standards and requires localities to conduct a stronger analysis before they may include sites with existing uses in their housing element, and limits reliance on potential housing development sites that are considered too large or too small or sites that have been recycled across multiple housing elements without development occurring. The bill also requires replacement of existing affordable housing slated for demolition with housing affordable to occupants at the same or lower income levels.

Local governments should be prepared to provide more evidence demonstrating the suitability of sites listed in a housing element for residential development, and particularly those expected to accommodate affordable housing development. Local governments may face funding difficulties in implementing the new mandates of AB 1397, such as bringing utilities to each identified site in the housing element.

Zoning

Senate Bill 540 and Assembly Bill 73: Establish New Zoning Designations

SB 540 allows cities and counties to adopt a specific plan establishing a Workforce Housing Opportunity Zone, which is intended to encourage workforce and affordable housing close to jobs and transportation. The zones may be created by preparing a specific plan and an environmental impact report, both of which would remain valid for five years. Approval of housing developments in these zones will be streamlined, with no further environmental review required, and the local agency will be mandated to approve projects meeting the plan criteria. HCD funds may be made available to create the zones. The developer of a project that takes advantage of this process must pay prevailing wages.

AB 73 creates a new type of overlay district intended to speed development of high density housing in areas with transit and existing infrastructure. Local governments that create such districts are eligible for state incentive payments when the districts are created and when housing is permitted. Local governments would conduct environmental review of a “housing sustainability district” in advance of any development proposals. Residential projects within a housing sustainability district would be subject to ministerial review that must be completed within 120 days. At least 20 percent of the units in a residential project to be built in a housing sustainability district must be affordable units, and such projects are subject to prevailing wage requirements.

Assisted Housing Developments

Assembly Bill 1521: Stricter Notice Requirement for Assisted Housing Development Owners

AB 1521 requires an owner of an assisted housing development to accept a bona fide offer to purchase from a qualified purchaser, if specified requirements are met. It also requires the HCD to monitor assisted housing development owners’ notice requirement compliance.

This bill is intended to help keep affordable housing available for low-income families and to reduce displacement of low-income residents. Owners who receive a market rate offer from a qualified preservation entity that intends to maintain the property’s affordability restrictions must either accept the offer or abide by the affordability restrictions for another five years.

Local governments should be aware of this notice requirement, as owners of assisted housing developments may fail to meet the requirement and would then be required by law to maintain the characterization of their property. Owners may turn to cities or counties to seek the ability to sell property for market rate conversion and cities and counties should be prepared for potential pushback.

Takeaways

This comprehensive housing package seeks to encourage a more residential development- and affordable housing-friendly environment in local communities. City and county planning staff should review the benefits of streamlining development approvals and work closely with their legal counsel to ensure that the streamlined procedures are in place. Additionally, staff should ensure that enhanced findings are included in staff reports to supplement records of housing project disapprovals. Local agencies should also prepare for housing advocates and HCD to conduct far more rigorous review of any decisions related to their housing element.

These new laws are complicated, presenting a double-edged sword to public agencies, and Lozano Smith stands ready to assist. For more information on these bills or on law governing housing projects in general, please contact
the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

Harold M. Freiman

Partner

William P. Curley III

Partner

James Sanchez

Senior Counsel

Lauren Kawano

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

Advertisements

New Law Requires Legal Consult Prior to Custodial Interrogation of Minor under Age 16

November 2017
Number 78

Beginning January 1, 2018, minors under the age of 16 must consult with legal counsel prior to a custodial interrogation and before waiving their Miranda rights.

Existing law requires a peace officer to advise minors of their rights by providing a Miranda warning. But if the minor or parent waives those rights, officers can interrogate the minor. Senate Bill (SB) 395, which adds section 625.6 to the Welfare and Institutions Code, will prohibit a law enforcement officer from conducting a custodial interrogation of or accepting a waiver of Miranda rights by a minor 15 or younger until the minor has had an opportunity to consult with legal counsel. This consultation must occur in person, by telephone or by video conference and may not be waived.

SB 395 requires a court to consider the impact of a peace officer’s failure to provide such legal consultation in determining the admissibility of statements the minor made during or after a custodial interrogation.

SB 395 provides limited exceptions to its consultation requirement. The new law does not require probation officers to comply with its requirements and also excludes questions related to obtaining information believed to be necessary to protect life or property from an imminent threat.

SB 395 creates new issues for police and other public agencies, including schools, when dealing with minors and illegal or inappropriate conduct. School districts that rely upon interviews of students by school district police department officers or contract school resource officers (SRO) in relation to student discipline proceedings may wish to review those practices for conformance with the new law, which covers potential criminal misconduct occurring on school campuses. In particular, school districts may wish to review how and when a law enforcement officer or an SRO may become involved with investigations of student misconduct.

Lozano Smith is currently working with our law enforcement, municipal, school district and community college district clients to address these and other issues related to the enactment of SB 395. If you have questions or need more information on how the new law impacts your agency, please contact the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

Jenell Van Bindsbergen

Partner

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

Legislative Update: Bill Eases Fee Collection for Storm Water Systems

November 2017
Number 74

A new law will make it easier for local governments to raise the revenue necessary to maintain and upgrade storm water management systems. Senate Bill (SB) 231 becomes effective on January 1, 2018.

Proposition 218

Proposition 218 limits local governments’ ability to impose new or increased fees or charges. The California Constitution defines a “fee” or “charge” as “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service.” Prior to imposing a new or increased fee or charge, local governments are required to provide notice to the property owners or ratepayers that would be responsible for the fee or charge. The proposed new or increased fee or charge can be blocked by the submission of written protests from a majority of property owners. This is commonly known as the “majority protest process.”

Proposition 218 requires, in addition to the majority protest process, that new or increased fees or charges be approved by either a majority vote of the property owners or a two-thirds vote of the electorate in the affected
area. The exception to this voter approval requirement is for fees or charges for “sewer, water, and refuse collection services.”

SB 231

In the case of Howard Jarvis Taxpayers Ass’n v. City of Salinas (2002) 98 Cal.App.4th 1351, the Court of Appeal considered, among other things, whether a storm drainage fee was subject to the voter approval requirement. The court held that the exception to the voter approval requirement for fees or charges for sewer services did not apply because the term “sewer” as defined in the Proposition 218 Omnibus Implementation Act was limited to “sanitary sewage.” SB 231 is a direct response to theCity of Salinas decision.

SB 231 creates a new, expansive definition of “sewer” for the purposes of Proposition 218 that explicitly includes storm water systems. The new definition is contained in the Proposition 218 Omnibus Implementation Act. SB 231 also contains findings that state the Legislature’s disapproval of the City of Salinas decision. This change will make it easier for local government to raise the revenue necessary to maintain proper storm water management systems.

For more information on SB 231 or on Proposition 218 in general, please contact the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

David J. Wolfe

Partner

Nicholas J. Clair

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

New Restrictions on Disclosure of Video and Audio Recordings

November 2017
Number 72

A new law will restrict the public disclosure of video and audio recordings created during the commission or investigation of rape, incest, sexual assault, domestic violence, or child abuse that depicts the face, intimate
body part, or voice of a victim of the incident. Assembly Bill (AB) 459 goes into effect on January 1, 2018.

The California Public Records Act (CPRA) requires public agencies to respond to a records request within 10 days, and to make eligible public records promptly available to a requester who pays the costs associated with duplication. Video and audio data are generally considered public records that are subject to disclosure, unless they are exempt under the express provisions of the CPRA or the public interest served by not disclosing the record clearly outweighs the public interest served by disclosure.

Over the past several years, peace officers’ use of body-worn cameras has become a frequent topic of public debate. Advocates stress public benefits such as improved evidence documentation and greater transparency, while others express concerns regarding potential invasions of privacy and violations of trust. AB 459 addresses the possibility that such recordings, which may contain sensitive, personal, or violent imagery or audio, could be distributed to the public, and is designed to provide victims of sexual or domestic violence with greater confidence that such footage will not be released.

AB 459 adds section 6254.4.5 to the Government Code, which specifies that the CPRA “does not require disclosure of an audio or video recording that was created during the commission or investigation of the crime of rape, incest, sexual assault, domestic violence, or child abuse that depicts the face, intimate body part, or voice of a victim of the incident depicted in the recording.” A public agency may withhold any such video or audio recording by showing that the public interest served by not disclosing the recording clearly outweighs the public interest served by disclosure of the recording. When balancing the public interest served by disclosure, AB 459 sets forth the two factors the public agency must consider:

  • The constitutional right to privacy of the person or persons depicted in the recording; and
  • Whether the potential harm to the victim caused by disclosing the recording may be mitigated by redacting the recording to obscure images showing intimate body parts and personally identifying characteristics of the victim or by distorting portions of the recording containing the victim’s voice, provided that the redaction does not prevent a viewer from being able to fully and accurately perceive the events captured on the recording.

Notably, AB 459 also explicitly allows a victim of sexual assault or domestic violence, or his or her parent or guardian (if the victim is a minor), next of kin, or legally authorized designee, to obtain a copy of any such recordings. Such a disclosure to a victim or family member does not require that the recording be made available to the public.

Lozano Smith will provide additional details about how AB 459 is applied and interpreted as public agencies begin utilizing these new standards. For more information on AB 459, please contact the authors of this Client News Brief or an attorney in our Charter Schools Practice Group or at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

Penelope R. Glover

Senior Counsel

Ellen N. Denham

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

Legislative Update: Employers Can’t Ask, but Applicants Can Tell

October 2017
Number 68

Employers, including public agency employers, will be forbidden from asking job applicants for their salary history when Assembly Bill (AB) 168 becomes effective on January 1, 2018.

AB 168 explicitly prohibits public agency employers from asking job applicants for salary history information. However, when an applicant voluntarily and without prompting provides salary history information, employers may use the information as a factor in determining salary if the employer’s decision is supported by a bona fide factor other than sex, race, or ethnicity. Further, if the applicant’s prior salary history information is subject to public disclosure pursuant to federal or state law, employers may independently obtain the public information and use it as a factor in determining salary if the employer’s decision is supported by a bona fide factor other than sex, race, or ethnicity.

AB 168 also requires employers to provide a pay scale for an open position upon an applicant’s “reasonable request.” Employers that violate AB 168 are subject to monetary civil penalties under the Private Attorneys General Act.

The bill’s supporters argue that eliminating the practice of asking for salary history information will equalize pay for women and people of color. They claim that basing wages on market value instead of salary history will eradicate pay inequality.

Critics of AB 168 say the new law is gratuitous because there are already protections in place to prevent wage discrimination. For example, California Labor Code section 1197.5 prohibits an employer from using an applicant’s salary history, by itself, to justify a pay disparity. They argue that there are often legitimate reasons to ask about salary history, including unavailability of information regarding the market value for a newly created position. The new law may expose employers to litigation by creating another reason for applicants to sue prospective employers.

The availability of public agency salary information and the uniformity of wages paid to similarly situated workers may blunt the impact of AB 168 on the process of hiring rank-and-file employees and may minimize the need to ask applicants for salary history information. For school districts, the uniform salary schedule rule provides a rigid benchmark for certificated salaries that are paid uniformly based on an employee’s education and years of experience. Classified employee salary schedules are similarly uniform in nature. Applicants for both certificated and classified positions are placed on the salary schedules based upon standard criteria.

AB 168 will likely have a greater impact on the negotiation of salaries for management position applicants, because public employers are now required to produce a salary range for open positions upon request and cannot place new hires within the range based solely upon the applicant’s prior salary level. As a result, public employers may not have as much room to negotiate.

Takeaways

Public employers should ensure that their standard application forms do not include a request for prior salary information. Further, public employers should train employees who interview prospective employees to refrain from asking applicants about their salary history.

For more information about AB 168 or on hiring practices in general, please contact the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

Darren C. Kameya

Partner

Carolyn L. Gemma

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

California Supreme Court Holds Disclosure Is the Rule, Not the Exception, in Public Record Requests

October 2017
Number 59

Automated license plate reader (ALPR) scan data is not subject to the “records of investigation” exemption under the California Public Records Act (CPRA), the California Supreme Court has ruled. The Court, however, did not foreclose the ability to withhold such information if it would invade an individual’s privacy.

In American Civil Liberties Union of Southern California v. Superior Court of Los Angeles County (Aug. 31, 2017, No S227106) ___ Cal.5th ____, the Court considered whether a request for ALPR data was exempt from disclosure.

Background

The Los Angeles Police Department (LAPD) and the Los Angeles Sheriff’s Department (LASD) both utilize ALPR technology to locate vehicles linked to crimes under investigation. High-speed computer-controlled cameras that are mounted onto fixed structures or patrol cars automatically capture images of license plates for each vehicle that passes through the optical range. Each number captured is then checked against a list of license plate numbers that are associated with crimes or criminal investigations-the “hot” list. If a match occurs, the system alerts either officers or a central dispatch unit.

The American Civil Liberties Union (ACLU) sought to investigate the legal and policy implications of the government’s use of ALPR data. The ACLU submitted a CPRA request to the LAPD and LASD seeking all ALPR data collected over a one-week period, consisting of at minimum the license plate number, date, time and location information of each license plate recorded. The ACLU did not seek disclosure of any license plate numbers that matched the hot list. Both the LAPD and LASD declined to produce the requested scan data, citing the CPRA’s exemption for law enforcement records of investigation.

Both the trial court and the Court of Appeal concluded that the requested data was exempt from disclosure under the records of investigation exemption. But in a unanimous decision, the California Supreme Court reversed the appellate court’s decision, noting that its obligation to interpret the CPRA in a manner that favors disclosure required that all exemptions be construed narrowly. The Court reasoned that in order to qualify as an “investigation,” an inquiry by law enforcement must be targeted at suspected violations of the law and not collected as part of “bulk data collection.” Here, the ALPR scans were not each “conducted as part of a targeted inquiry” into a specific crime, and therefore could not be considered records of investigation.

The Court recognized the public interest in not disclosing the data. As the Court explained, such disclosure threatened individuals’ privacy, since “data showing where a person was at a certain time could reveal where that person lives, works, or frequently visits.” However, the Court also recognized that disclosure of the ALPR data could be used to determine if the information was being properly obtained and used. Accordingly, the Court returned the case to the trial court with instructions to consider whether the balance of public interests would be altered if the ALPR data could be redacted or anonymized by “replacing the actual license plate numbers with fictional numbers.” The Court cautioned that in analyzing the catchall exemption of the CPRA, a court “cannot allow ‘vague safety concerns’ to foreclose the public’s right of access.”

Takeaways

This opinion serves as an important reminder that courts are likely to err on the side of disclosure under the CPRA and will likely continue to restrict the general use of disclosure exemptions.

For more information on this case or the California Public Records Act in general, contact the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.
Written by:

Jenell Van Bindsbergen

Partner & Co-Chair

Alyse Pacheco

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.

Rescission of DACA: What Public Agencies Need to Know

October 2017
Number 57

On September 5, 2017, the Trump Administration announced plans to end the Deferred Action for Childhood Arrivals (DACA) program. The program temporarily permitted some 800,000 undocumented immigrants who arrived in the United States as children to lawfully stay, attend school, and work in the U.S. without the threat of deportation. The Administration is phasing out the program over a six-month period that will end on March 5, 2018, unless Congress enacts legislation extending DACA’s protections.

The Department of Homeland Security’s (DHS) official memorandum rescinding the program provides the following:

  • New Initial DACA Applications: New initial DACA applications will no longer be accepted.
  • Pending Initial DACA Applications: Pending initial DACA applications submitted before September 5, 2017will still be adjudicated and processed on a case-by-case basis.
  • New DACA Renewal Requests: Requests for DACA renewals from current beneficiaries whose benefits expire between September 5, 2017 and March 5, 2018 are eligible for a two-year extension, but the applications must be sent in by October 5, 2017. For individuals whose renewal date is after March 5, 2018, the individual’s current work permit expiration date will be his or her last day of DACA status and employment authorization-no renewals will be allowed.
  • Pending DACA Renewal Requests: Renewal requests from current beneficiaries that were accepted by DHS as of September 5, 2017 will still be adjudicated and processed on a case-by-case basis.
  • Existing DACA Beneficiaries: DHS will not terminate previously issued DACA removal protections or revoke work authorization for the remaining duration of their validity periods.

The Administration’s decision has raised many concerns. According to an August 2017 report by the Migration Policy Institute, the vast majority of DACA recipients are employed or attending school, with one quarter of recipients juggling both college and work. Thus, the end of DACA is poised to have significant impacts on both public employers and schools. Below we highlight some of the implications for public agencies, and note a few measures that agencies can take now to prepare for the upcoming changes.

Implications for Employers

Proving Authorization to Work

Federal law prohibits employers from employing an individual when the employer knows that the individual is not authorized to work in the U.S. Within three days of hire, all employees must fill out an employment eligibility verification Form I-9, regardless of the employee’s immigration or citizenship status, in order to verify identity and employment eligibility. DACA beneficiaries granted work authorizations are issued Employment Authorization Documents (EADs) by U.S. Citizenship and Immigration Services (USCIS). An EAD card issued to a DACA recipient is one of the acceptable identification and work authorization documents listed on Form I-9. EADs are issued to foreign nationals with different types of legal status (e.g., refugees and asylum recipients), not just DACA beneficiaries, and employers are not permitted to ask employees for specific details regarding their immigration status.

Reverification

Once an employee has completed Form I-9 or the E-Verify work eligibility process, an employer should not ask to see the employee’s work permit or other identity or employment eligibility verification documents until the document the employee provided expires or is about to expire. When an employer asks to see such a document again, the process is called “reverification.” Based on USCIS guidance, in order to continue to employ an individual whose EAD has expired, employers will need to reverify the employee no later than the date of expiration. If the reverification process is not completed by the expiration date, the employee may not continue to work and should be put on leave of absence or terminated, in accordance with the employer’s policy.

Avoiding Discriminatory Practices

Although it is unlawful to continue to employ DACA recipients after the expiration of their EADs, it is also unlawful to subject them to greater scrutiny than other employees for reverification purposes, or fire them prematurely based on having a permit that will expire in the future. Under both the federal Immigration and Nationality Act (INA) and Title VII of the Civil Rights Act, employers are prohibited from discriminating against work-authorized individuals based on their nationality or their citizenship or immigration status. It is unlawful, for example, for an employer to selectively reverify the employment eligibility of one employee or a group of employees based on their country of origin, citizenship or immigration status. Employers are also prohibited from discriminating in the verification and reverification process by requesting additional or different documents than are required for verification, demanding a specific document, or refusing to accept a document because of an unfounded suspicion that a document is fraudulent. In addition, authorized workers are protected from intimidation, threats, coercion and retaliation for having filed a discrimination charge against their employer.

Employers should have an established, periodic practice of internally reviewing their employees’ Form I-9 paperwork in order to ensure compliance with federal laws. A best practice is for employers to keep track of all temporary work authorizations that are about to expire and then give employees advance notice that they will soon need to show proof of updated work authorization when their permits are about to expire. USCIS suggests establishing a calendar notification system for employees whose EADs will expire and providing those employees with at least 90 days’ notice prior to the expiration date. Employers without a current practice of internal reviews should consider implementing such a practice.

Implications for Schools

Public schools have an obligation to provide K-12 students a free public education, regardless of their citizenship or immigration status. The rescission of DACA does not change a public school’s obligations to educate and provide a safe learning environment for all students. In addition, undocumented students are afforded protections under the Family Educational Rights and Privacy Act (FERPA) and the McKinney-Vento Homeless Assistance Act. Under FERPA and California student records laws, schools may not provide information from a student’s education record to federal immigration agents unless they obtain parental consent or receive a warrant, court order or lawfully issued subpoena for the information. Immigrant students may also be protected under the federal McKinney-Vento Homeless Assistance Act, which provides certain educational rights for displaced and migrant children. For college students, undocumented status does not affect a student’s ability to attend California colleges, qualify for exemptions of non-resident tuition, or to apply for financial aid. Thus, the rescission of DACA has minimal impact on students’ eligibility for school attendance and financial aid.

Takeaways

While pending federal lawsuits and various companies and organizations are actively urging the reinstatement of DACA, the future for DACA beneficiaries remains uncertain. As public agencies wait for further guidance from Congress and the courts, there are some proactive measures that employers and schools can take now, including:

  • Avoid discriminatory practices, such as engaging in unfair verification and reverification; prematurely terminating employees before work authorization expires; treating individuals differently based on their nationality, immigration or citizenship status; or intimidating or retaliating against employees for having filed discrimination charges;
  • Have an internal practice of consistently tracking work authorizations, and provide an employee with at least 90 days’ notice prior to the expiration of his or her work authorization that he or she will need to show proof of updated authorization; and
  • Inform students and parents of DACA students’ education and privacy rights, which include the right to attend college and the right to apply for financial aid, regardless of immigrations status.

If you have any questions about the federal government’s rescission of DACA or its impact on public agencies, please contact the authors of this Client News Brief or an attorney at one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter or download our Client News Brief App.

Written by:

Dulcinea A. Grantham

Partner & Co-Chair

Sloan R. Simmons

Partner & Co-Chair

Sara E. Santoyo

Associate

©2017 Lozano Smith

As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.