BILL ANALYSIS                                                                                                                                                                                                    

                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1333 (Yee)
          Hearing Date:  05/10/2010           Amended: 04/26/2010
          Consultant: Mark McKenzie       Policy Vote: L.Gov. 5-0
          BILL SUMMARY:  SB 1333 would require an airport to acquire an  
          avigation easement prior to the issuance of a building permit  
          that allows for construction of a residential project within the  
          airport's 65 decibel (dB) or higher noise boundary, as  
          specified.  The easement may be immediately recorded and must  
          include a termination clause if the project is cancelled or the  
          building permit is revoked or expires.  The bill would also  
          require the local government that issued the permit to notify  
          the airport within 30 days of a permit's expiration, and the  
          airport would be required to record a notice of termination of  
          the easement with the county recorder within 90 days of the  
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Recording mandate      potential reimbursable mandate  
                                     ------see staff comments------
          Easement termination notice       likely minor, potentially  
          reimbursable costs     General
                                     ------see staff comments------

          STAFF COMMENTS: 
          An avigation easement typically provides a right-of-way for free  
          and unobstructed passage of aircraft through the airspace over a  
          property, and provides a right to subject the property to noise,  
          vibrations, fumes, dust, and fuel particle emissions associated  
          with normal airport activity.  An avigation easement also places  
          certain restrictions on the subject property, such as  
          prohibitions against structures that would enter the easement  
          airspace, and provides a right of entry for certain purposes.


          California airport noise regulations establish the standard for  
          acceptable levels of noise in the vicinity of airports to be a  
          "community noise equivalent level" (CNEL) of 65 dB.  Development  
          of residential and certain other uses within an airport's 65 dB  
          CNEL contour area are deemed to be an incompatible unless the  
          airport obtains an avigation easement.  Typically, avigation  
          easements are granted at the time of occupancy by a new owner,  
          rather than when development is approved for a property.

          SB 1333 would require avigation easements to be acquired by an  
          airport prior to the issuance of a building permit for a  
          "noise-sensitive project," if a local government conditions the  
          approval of the project on the granting of an avigation easement  
          to the airport.

          The bill requires a local government that issues a building  
          permit for a noise-sensitive project to notify an airport owner  
          or operator of the expiration or revocation of an avigation  
          easement, as specified.  By requiring this notice, SB 1333  
          imposes a state-
          Page 2
          SB 1333 (Yee)

          mandated local program by requiring a higher level of service.   
          Staff notes, however, that costs would likely be minor and local  
          governments may be able to adjust permit fees to cover this  
          additional burden.  Mandated costs that can be covered by fees  
          are not reimbursable.

          The bill would also authorize an airport owner or operator to  
          immediately record an avigation easement upon receipt, and would  
          require the airport to record a notice of termination of the  
          easement with the county recorder within 90 days of receiving a  
          notice of the permit's expiration or revocation from the local  
          agency that issued the building permit.  By imposing the  
          additional recording burden on county recorders, this bill would  
          impose a state-mandated local program.  County recorders can  
          generally charge fees for recording easements or other property  
          instruments, but cannot charge fees to other governmental  
          entities.  In the case of an airport owned or operated by a  
          county, city, district, or other political subdivision, the  
          county recorder could be precluded from charging a fee to record  
          or terminate an avigation easement.  Staff recommends an  
          amendment to explicitly authorize the county recorder to charge  
          a fee sufficient to cover its recordation costs imposed by this  
          bill.  Specifically, on page 4, after line 8, insert the  



               (e) Notwithstanding Sections 6103 and 27383 of the  
               Government Code, in filing any instrument, paper, or notice  
               pursuant to this section, the owner or operator of an  
               airport shall pay all applicable recording fees prescribed  
               by law.