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SACRAMENTO, Calif. (AP) — Faced with a crippling housing shortage that is driving prices up while putting more people on the streets, California's governor and legislative leaders agreed Thursday on a plan to reward local governments that make it easier to build more housing faster and punish those that don't.The proposed law, which still needs approval by both houses of the Legislature, would let state officials reward "pro-housing" jurisdictions with more grant money for housing and transportation.It also calls for the state to sue local governments that do not comply, possibly bringing court-imposed fines of up to 0,000 a month.The agreement removes one of the final barriers to Newsom signing the state's 4.8 billion operating budget. Lawmakers passed the budget earlier this month, and Newsom has until midnight Thursday to sign it. He has delayed his signature while negotiating the housing package with state lawmakers.The housing plan does not define what local governments must do to be declared "pro-housing," other than passing ordinances involving actions to be determined later.In a joint statement, Gov. Gavin Newsom, Assembly Speaker Anthony Rendon and Senate President Pro Tempore Toni Atkins — all Democrats — said the agreement "creates strong incentives — both sticks and carrots — to help spur housing production across this state."RELATED: Newsom proposes plan to withhold gas tax funds from cities that don't meet housing requirementsCalifornia's population is closing in on 40 million people and requires about 180,000 new homes each year to meet demand. But the state has averaged just 80,000 new homes in each of the past 10 years, according to a report from the California Department of Housing and Community Development.Home ownership rates are the lowest since the 1940s while an estimate 3 million households pay more than 30% of their annual income toward rent.State officials often blame local zoning laws for slowing the pace of construction.In January, Newsom proposed withholding state transportation dollars from local governments that do not take steps to increase housing. Local governments pushed back hard, resulting in Thursday's compromise.The court fines could be difficult to collect. A court would have to rule local officials are out of compliance. And once that happens, jurisdictions would have a year to comply before they would have to pay a fine.If they refuse, the state controller could intercept state funding to make the payment. In some cases, the court could appoint an agent to make a local government comply. That would include the ability to approve, deny or modify housing permits."This bill puts teeth into existing state laws, to ensure cities and counties actually follow those laws," said state Sen. Scott Wiener, a Democrat from San Francisco who is chairman of the Senate Housing Committee. "At the same time, we need to be clear that California's existing housing laws, even with better and more effective enforcement, are inadequate to solve our state's massive housing shortage."Lawmakers have already agreed on most major items in the state budget. They voted to expand taxpayer-funded health insurance to adults younger than 26 who are living in the country illegally.They also agreed to tax people who refuse to purchase private health insurance and use the money to help families of four who earn as much as 0,000 a year to pay their monthly health insurance premiums.Lawmakers have not yet voted on details of a plan to spend 0 million from the state's cap and trade program to help improve drinking water for about a million people. 3635

SACRAMENTO, Calif. (AP) — California's skyrocketing gas prices could be driven by "possible market manipulation" by a handful of well-known retailers, according to a new government analysis.In a memo to Democratic Gov. Gavin Newsom, the California Energy Commission said at the end of April the difference between the state's gas prices and the national average increased by more than a dollar — "the highest increase ever seen." After accounting for the state's additional taxes and other program costs, the increase has ranged between 17 cents and 34 cents per gallon since 2015.The agency noted the price jump "roughly matches" the period in 2015 when an explosion at Exxon Mobil's refinery in Torrance crippled production in the state for more than a year. But the refinery has restored normal operations, suggesting other factors are driving up the price of fuel.One possible explanation the commission identified is some retailers are charging higher prices than others "for essentially the same product." The commission noted Chevron, Shell, Exxon, Mobil and 76 have doubled their prices compared to ARCO, unbranded retailers and hypermart locations, which include stations associated with supermarkets or big-box retail stores."While this practice is not necessarily illegal, it may be an effort of a segment of the market to artificially inflate prices to the detriment of California consumers," the commission noted in its report.Agency officials said this type of price increase would normally drive customers to lower-priced competitors. From 2010 to 2017, the commission said the percentage of gasoline sold by Chevron, Shell and 76 retail stores dropped by about 3 percentage points combined.However, the commission noted its preliminary estimates are "imprecise." Agency officials have proposed studying the issue for the next five months and then presenting the governor with a full report.Western States Petroleum Association President Catherine Reheis-Boyd said lots of factors can explain why California's gas prices are higher than the national average, including the state's mandated fuel blend requirements, increasingly high state taxes and regulations that include the Low Carbon Fuel Standard Program."This report provides further evidence of what market experts and government agencies have maintained for years: there are many factors that influence movement in the price of gasoline and diesel, but the primary driver is the dynamics of supply and demand of crude oil," Reheis-Boyd said. 2523

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom has tested negative for the coronavirus. The governor's office said Newsom was tested on Wednesday after someone in the governor's office tested positive. The staff member who tested positive had not interacted with Newsom or anyone else who often sees the governor. The governor's office said Newsom took the test out of “an abundance of caution.” Newsom said Wednesday that he has been tested many times and has always been negative.California has reported more than 834,000 coronavirus cases and more than 16,300 deaths. 586

SACRAMENTO, Calif. (AP) -- California Gov. Gavin has signed a law to let counties offer fewer in-person voting options as they hold the November election in the midst of the pandemic.Newsom has already signed a law requiring counties to mail ballots to voters ahead of the Nov. 3 election.County election officials are having trouble securing enough polling places because of the pandemic.California continues to have problems with missing data on virus infections throughout California.State officials have acknowledged California has been undercounting virus cases because of a technical issue with a database used to collect test information from labs. 663

SACRAMENTO, Calif. (AP) — California police say a man brandished what they later learned was a fake gun during a standoff that resulted in the evacuation of a hotel. The Sacramento Bee reported guests were evacuated from a Comfort Inn in Red Bluff early Saturday during a standoff between police and a domestic violence suspect. The Red Bluff Police Department said in a release that 21-year-old Christian Sandoval-Perez of Corning faces multiple charges including child abuse and domestic violence. Officers went to the hotel’s second floor and encountered Sandoval-Perez with a gun. He held off police for more than 75 minutes. 637

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