BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 2554
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 2554 (Brownley)
        As Amended  August 5, 2010
        Majority vote
         
         
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        |ASSEMBLY: |48-28|(June 1, 2010)  |SENATE: |22-10|(August 19, 2010)    |
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        |COMMITTEE VOTE:  |6-3  |(August 25, 2010)   |RECOMMENDATION: |Concur    |
        |                 |     |                    |                |          |
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        Original Committee Reference:    L. GOV.  

         SUMMARY  :  Authorizes the Los Angeles County Flood Control District  
        (District) to impose a fee, in Los Angeles County (County), to pay  
        the cost and expenses of carrying out projects and providing  
        services authorized under existing law.  

         The Senate amendments  :  

        1)Expand the application of the fee authorization to the entire  
          County, thereby authorizing the District to impose a fee, in the  
          County, in compliance with Proposition 218, to pay the costs and  
          expenses of carrying out projects and providing services to  
          improve water quality and reduce stormwater and urban runoff  
          pollution in the District.

        2)Require the District to allocate the revenues as follows:

           a)   10% to the District to implement and administer water  
             quality programs and to pay the District's costs for levying  
             and collecting the fee and distributing  revenues;

           b)   40% to Los Angeles County and to the cities within the  
             District, divided proportionally among each jurisdiction, to  
             be expended for water quality improvement programs; and,

           c)   50% to nine watershed authority groups that the District  
             must authorize by ordinance, divided  proportionally among  








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             each watershed, to implement collaborative water quality  
             improvement plans or  programs in the watersheds.

        3)Require nine watershed authority groups to be  established under  
          the Joint Exercise of Powers Act for the following watersheds:  
          Ballona Creek, Dominguez Channel, Upper Los Angeles River, Lower  
          Los Angeles River, Rio Hondo, Upper San Gabriel River, Lower San  
          Gabriel River, Santa Clara River, and Santa Monica Bay.

        4)Specify that implementation of a watershed authority group's  
          collaborative water quality plan or program requires the consent  
          of any member agency whose jurisdiction comprises more than 40%  
          of the total land area in a watershed.

        5)Require the District's governing board to adopt an ordinance to  
          implement its fee authority.

        6)Make other technical amendments to the District's authorizing  
          statutes.


         EXISTING LAW  :

        1)Establishes the District to provide for the control and  
          conservation of flood, storm and other waste waters.

        2)Authorizes the District to levy taxes or assessments on all  
          taxable property within the District, after a vote of property  
          owners.

         AS PASSED BY THE ASSEMBLY  , this bill:

        1)Authorized the District to impose a fee, in the unincorporated  
          area of the County, in compliance with Proposition 218, to pay  
          the costs and expenses of carrying out projects and providing  
          services authorized under the District's Act.

        2)Required any fee that is imposed to be levied and collected  
          together with, and not separately from, taxes for county  
          purposes.

         FISCAL EFFECT  :  None

        COMMENTS  :  Article XIII D of the California Constitution  
        [Proposition 218] distinguishes among taxes, assessments and fees  








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        for property-related revenues, and requires certain actions before  
        such revenues may be collected.  Counties and other local agencies  
        with police powers may impose any one of these options on property  
        owners, after completing the Proposition 218 process.  Special  
        districts created by statute, however, must have specific authority  
        for each of these revenue sources.

        The District's authorizing statute (Los Angeles County Flood  
        Control Act, Chapter 755 of the Statutes of 1915) authorizes the  
        District to impose only taxes or assessments, not fees.  The  
        District, which is governed by the Los Angeles County Board of  
        Supervisors, would like to have the same authority for imposing  
        fees as its governing County.  This bill expands the District's  
        authorization to add the levying of property-related fees to its  
        current authorization for levying of taxes or assessments.

        The County includes six major watersheds, significant amounts of  
        coastline and multiple lakes and rivers.  Consequently, the County  
        and the 85 cities within the District are subject to numerous Total  
        Maximum Daily Load (TMDL) requirements under the federal Clean  
        Water Act (CWA), which necessitate a regional approach to TMDL  
        mitigation that is coordinated with and supportive of individual  
        cities' water quality improvement efforts.

        According to the author's office, this bill would authorize the  
        District to put a fee on the local ballot, asking voters to raise  
        revenue to fund clean water projects and carry out the essential  
        duties of the District.  According to the sponsors, the County  
        faces critical and very costly stormwater and urban runoff  
        pollution challenges as mandated by the CWA.  Runoff containing  
        trash and bacteria not only negatively impacts water quality, but  
        is harmful to the public health and economic vitality of all  
        communities in the region.  Increased funding for necessary  
        environmental projects will help keep waters clean and spur green  
        job creation.

        The May 7, 2009, version of AB 139 (Brownley), which was never  
        heard by a policy committee, would have a) authorized the District  
        to impose a fee to pay the cost and expenses of carrying out  
        projects and providing services to improve water quality and reduce  
        stormwater and urban runoff in the District; and, b) provided for a  
        division of those fees collected between the District and other  
        jurisdictions within the boundaries of the District.  AB 554  
        (Nava), Chapter 510, Statutes of 2005, authorized the Ventura  
        County Watershed Protection District to levy a fee on taxable real  








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        property both district-wide and by zone.

        Support arguments:  Supporters argue that this bill gives the  
        District another tool in the tool box in order to help combat urban  
        stormwater runoff and its environmental impacts.  It is costly to  
        maintain TMDL requirements and any additional revenues that can  
        help assist in this effort would greatly help the District.
         
         Opposition arguments:  Opposition might argue that Los Angeles  
        County is not the only area that have to manage stormwater runoff  
        and that any effort to solve this issue should be done state-wide.  
        Opposition, also argues that this measure expands a fee authority  
        only currently authorized for one other flood control district.


         Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 319-3958 


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