BILL ANALYSIS Ķ SENATE GOVERNANCE & FINANCE COMMITTEE Senator Lois Wolk, Chair BILL NO: AB 307 HEARING: 6/8/11 AUTHOR: Nestande FISCAL: No VERSION: 5/31/11 TAX LEVY: No CONSULTANT: Weinberger JOINT POWERS AGREEMENTS AND TRIBAL GOVERNMENTS Allows federally recognized Indian tribes to enter joint powers agreements. Background and Existing Law The Joint Exercise of Powers Act allows two or more public agencies to use their powers in common if they sign a joint powers agreement. Sometimes an agreement creates a new, separate government called a joint powers authority (JPA). Public officials have created about 700 JPAs which are confederations of governments working together for common purposes. State law generally limits membership in JPAs to public agencies: federal, state, and local governments. According to a 1996 informal Attorney General's opinion, tribal governments can't sign joint powers agreements because Indian tribes are "domestic dependent nations" and not public agencies as defined by the Act. Nevertheless, the Legislature has allowed three tribal governments to join JPAs: The Hoopa Business Council can join the Humboldt County Association of Governments (AB 1137, Hauser, 1987). The Torres Martinez Desert Cahuilla Indians can join the Salton Sea Authority (AB 959, Kelley, 2001). The Elk Valley Rancheria Tribal Council can join a JPA with Del Norte County or the City of Crescent City, or both (AB 1172, Berg, 2003). Most federally recognized Indian tribes received federal recognition status through treaties, acts of Congress, presidential executive orders, other federal administrative actions, or federal court decisions. Federal law specifies AB 307 -- 5/31/11 -- Page 2 three ways in which an Indian group may become federally recognized: By Act of Congress, By administrative procedures specified in federal regulations, or By decision of a United States court. The federal government recognizes 565 American Indian and Alaska Native tribes and villages. More than 100 federally recognized tribes are in California. Many tribal governments and California local governments want to use joint powers agreements to collaborate on transportation, land use, public safety, environmental restoration, economic development and other policy issues. Instead of requiring the Legislature to pass numerous bills authorizing specific joint powers agreements to include specific tribal governments, some tribal government officials want to include federally recognized Indian tribes in the definition of public agencies that may enter into agreements under the Joint Exercise of Powers Act. Proposed Law Assembly Bill 307 adds federally recognized Indian tribes to the Joint Exercise of Powers Act's definition of a "public agency." AB 307 prohibits any joint powers authority that includes a federally recognized Indian tribe from having the authority to authorize or issue Marks-Roos bonds unless: The public improvements to be funded by the bonds will be owned and maintained by the authority or one or more of its public agency members, and The revenue streams pledged to repay the bonds derive from the authority, one or more of its public agency members, or any governmental or public fund or account the proceeds of which may be used for that purpose. The bill defines "governmental or public fund or account" as including monies or revenue streams derived from, held by, belonging to, due to, or otherwise held for the benefit of, one or more public agency members, but not including any fund or account that is funded by any grants AB 307 -- 5/31/11 -- Page 3 distributed to local government agencies from the Indian Gaming Special Distribution Fund. AB 307 repeals the statutes authorizing the Torres Martinez Desert Cahuilla Indians and the Elk Valley Rancheria Tribal Council to enter into specified joint powers agreements. The bill repeals language authorizing the Hoopa Business Council to enter into a joint powers agreement specifically for the purpose of participating on the Humboldt County Association of Governments. AB 307 declares that it must not be construed to affect, modify, or repeal any existing joint powers authority formed before its effective date, including a joint powers authority that includes a federally recognized Indian tribe as a party or cooperating agency. The bill continues any authority granted by any prior law for a federally recognized Indian tribe to enter into a joint powers agreement. State Revenue Impact No estimate. Comments 1. Purpose of the bill . Recognizing that collaboration between local governments and tribal governments on matters of mutual concern can produce significant public benefits, AB 307 eliminates the need for local governments to seek legislative approval before entering into JPAs with Indian tribes. California local governments already exercise independent discretion when entering into joint powers agreements with each other, California state agencies, the federal government, federal agencies, other states, or even local governments from other states. AB 307 simply grants local governments the same discretionary authority to enter into JPAs with federally recognized Indian tribes. Two California joint powers authorities already include Indian tribal governments as members; the Salton Sea Authority's membership includes the Torres Martinez Desert Cahuilla Indians and the Border Coast Regional Airport Authority's membership includes the Elk Valley Rancheria. State laws in other states, including Arizona, Nevada, New Mexico, AB 307 -- 5/31/11 -- Page 4 Oregon, and Washington authorize joint powers agreements that include tribal governments. AB 307 follows these examples by eliminating the statutory barrier to local-tribal government collaboration through joint powers agreements. 2. New Governor, different result ? AB 307 is similar to several recently unsuccessful legislative efforts to authorize tribal participation in JPAs. Governor Schwarzenegger vetoed: AB 2166 (Chesbro, 2010), which would have allowed the Smith River Rancheria Tribal Council to join the Border Coast Regional Airport Authority. AB 1884 (Maze, 2008), which would have allowed the Tule River Tribal Council to join a JPA to develop land near the Porterville airport. AB 1962 (Berg, 2006), which would have allowed the Tribal Council of the Yurok Tribe to join a JPA to restore fisheries in the Klamath River Basin. AB 2762 (Levine, 2006), which would have allowed 17 tribal governments to join a the Southern California Association of Governments. AB 1747 (Wolk, 2005), which would have allowed the Rumsey Band of Wintun Indians to join a JPA in Yolo County. The Governor's veto messages cited various concerns related to tribes' exercising sovereign powers, particularly off reservation lands, and expressed his preference that tribes and local governments cooperate through "agreements and memorandums of understanding." The Committee may wish to consider whether the new Governor will continue his predecessor's practice of vetoing bills similar to AB 307, or whether he will take a different approach. 3. Related legislation . At its June 8 hearing, the Committee will also consider AB 798 (Chesbro), which allows the Smith River Rancheria Tribal Council to enter into a joint powers agreement. Assembly Actions Assembly Local Government Committee: 9-0 Assembly Floor: 66-0 AB 307 -- 5/31/11 -- Page 5 Support and Opposition (6/2/11) Support : United Auburn Indian Community; Agua Caliente Band of Cahuilla Indians; California Nations Indian Gaming Association; City of La Mesa; Coachella Valley Association of Governments; Elk Valley Rancheria; Heartland Communications Facility Authority; Rincon Band of Luiseņo Indians; San Diego County Supervisor Dianne Jacob; Santa Ynez Band of Chumash Indians; Smith River Rancheria; Susanville Indian Rancheria; Yocha Dehe Wintun Nation. Opposition : Unknown.