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 AB 798 -- 2/17/11 -- Page 2 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 AB 798 -- 2/17/11 -- Page 3 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 AB 798 -- 2/17/11 -- Page 4 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 AB 798 -- 2/17/11 -- Page 5 Band of Pomo Indians; Susanville Indian Rancheria; United Auburn Indian Community of Auburn Rancheria. Opposition : Unknown.