BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 798                      HEARING:  6/8/11
          AUTHOR:  Chesbro                      FISCAL:  No
          VERSION:  2/17/11                     TAX LEVY:  No
          CONSULTANT:  Weinberger               

                          JOINT POWERS AGREEMENTS AND 
                    THE SMITH RIVER RANCHERIA TRIBAL COUNCIL
          

          Allows the Smith River Rancheria Tribal Council to enter a 
          joint powers agreement.


                           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).

          The Del Norte County Regional Airport is a commercial 
          service and general aviation airport located north of 
          Crescent City (Del Norte County).  The Border Coast 




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          Regional Airport Authority, a JPA, operates the airport.  
          The JPA's governing board includes representatives from Del 
          Norte County, the City of Crescent City, the Elk Valley 
          Rancheria, the City of Brookings (Oregon), and Curry County 
          (Oregon).  The Smith River Rancheria is a 
          federally-recognized sovereign tribal nation located about 
          14 miles north of Crescent City.  As the governing body of 
          a community served by the Del Norte County Regional 
          Airport, the Smith River Rancheria Tribal Council wants the 
          same ability to become a member of the Border Coast Airport 
          Authority JPA that the Legislature granted to the Elk 
          Valley Rancheria Tribal Council.


                                   Proposed Law  

          Assembly Bill 798 allows the Smith River Rancheria Tribal 
          Council to enter into a joint powers agreement with the 
          County of Del Norte and the City of Crescent City, or both. 
           The Smith River Rancheria Tribal Council is deemed to be a 
          public agency for the purposes of the Joint Exercise of 
          Powers Act.

          AB 798 specifies that, on and after Janaury 1, 2004, joint 
          powers authorities that the Smith River Rancheria Tribal 
          Council enters into are prohibited 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 authorities or one 
               or more of its public agency members,  and  
                 The revenue streams pledged to repay the bonds 
               derive from the authorities or one or more of its 
               public agency members.
                

                               State Revenue Impact
           
          No estimate.


                                     Comments  

          1.   Purpose of the bill  .  The Border Coast Regional Airport 
          Authority JPA already includes a sovereign tribal 
          government, the Elk Valley Rancheria, as one of its 
          members.  Since 2007, the JPA has operated the Del Norte 





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          County Regional Airport, which is a vital transportation 
          facility for the surrounding communities.  The JPA plans to 
          significantly improve the airport, including an expansion 
          of the passenger terminal.  Although the airport directly 
          affects the Smith River Rancheria's tribal members and 
          economic activities, the Rancheria can't join the airport's 
          JPA.  AB 798 remedies this unfair situation by giving the 
          Smith River Rancheria the same authority to participate in 
          a JPA that the Legislature gave to the Elk Valley 
          Rancheria.

          2.   Be specific  .  State law allows the Hoopa Valley 
          Business Council and the Torrez Martinez Desert Cahuilla 
          Indians to participate in specific JPAs.  The 2003 Berg 
          bill was less specific, authorizing the Elk Valley 
          Rancheria Tribal Council to enter into a JPA with Del Norte 
          County, Crescent City, or both.  When the Berg bill passed, 
          the Elk Valley Rancheria Tribal Council expected to join a 
          JPA to finance a sewer plant.  Instead, it became a member 
          of the Border Coast Regional Airport Authority JPA.  
          Although the Smith River Rancheria Tribal Council expects 
          that AB 798 will allow it to join the airport JPA, AB 798 
          uses the Berg bill's broad language, raising the 
          possibility that the Tribal Council could join different 
          JPAs.  The Committee may wish to consider narrowing AB 798 
          to allow the Smith River Rancheria Tribal Council to enter 
          into a joint powers agreement to participate in the Border 
          Coast Regional Airport Authority.

          3.   New Governor, different result  ?  AB 798 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 





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               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 798, 
          or whether he will take a different approach.

          4.   Related legislation  .  At its June 8 hearing, the 
          Committee will also consider AB 307 (Nestande), which 
          authorizes any federally-recognized Indian tribe to enter 
          into a joint powers agreement pursuant to state law.  If 
          Governor Brown signs AB 307, AB 798 would be duplicative.  
          To ensure that AB 798 only takes effect if AB 307 does not 
          become law, the Committee may wish to consider amending AB 
          798 to repeal its provisions if both AB 798 and AB 307 are 
          chaptered.

          5.   Special legislation  .  The California Constitution 
          prohibits special legislation when a general law can apply 
          (Article IV, §16).  AB 798 contains findings and 
          declarations explaining the need for legislation that 
          applies only to the Smith River Rancheria Tribal Council.


                                 Assembly Actions  

          Assembly Local Government Committee:  9-0
          Assembly Floor:                    58-1


                         Support and Opposition  (6/2/11)

           Support  :  Smith River Rancheria; Border Coast Regional 
          Airport Authority; California Association of Tribal 
          Governments; California Nations Indian Gaming Association; 
          California State Association of Counties; California Tribal 
          Business Alliance; California Valley Miwok Tribe; City of 
          Crescent City; County of Del Norte; Elk Valley Rancheria; 
          Ewiiaapaayp Band of Kumeyaay Indians; Paskenta Band of 
          Nomlaki Indians of California; Regional Council of Rural 
          Counties; Santa Ynez Band of Chumash Indians; Scotts Valley 





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          Band of Pomo Indians; Susanville Indian Rancheria; United 
          Auburn Indian Community of Auburn Rancheria.

           Opposition  :  Unknown.