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.