BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1656
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          Date of Hearing:  April 11, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                     AB 1656 (Fong) - As Amended:  March 29, 2012
           
          SUBJECT  :  San Francisco Bay Restoration Authority.

           SUMMARY  :  Extends the sunset date for the San Francisco Bay 
          Restoration Authority (Authority) from 2029 to 2036 and makes 
          several other changes to the Authority's enabling act.  
          Specifically,  this bill  :  

          1)Extends the sunset date for the Authority from January 1, 2029 
            until January 1, 2036, unless a later enacted statute deletes 
            or extends that date.

          2)Expands the jurisdiction of the Authority's East Bay Board 
            member to include all of Contra Costa County.

          3)Expands the eastern boundary for eligible projects to include 
            all of the Bay-related shoreline in the Counties of Solano and 
            Contra Costa.

           EXISTING LAW  :

          1)Creates the Authority as a regional entity to generate and 
            allocate resources for the protection and enhancement of tidal 
            wetlands and other wildlife habitat in and surrounding the San 
            Francisco Bay.

          2)Establishes the Authority's jurisdiction which extends 
            throughout the San Francisco Bay Area.

          3)Prohibits the jurisdiction of the Authority from being subject 
            to the Cortese-Knox-Hertzberg Local Government Reorganization 
            Act of 2000.

          4)Declares the Authority's purpose to raise and allocate 
            resources for the restoration, enhancement, protection, and 
            enjoyment of wetlands and wildlife habitats in the San 
            Francisco Bay and along its shoreline.

          5)Specifies the composition of the Authority's governing board, 
            which is comprised of seven voting members, as follows:








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             a)   A resident of the San Francisco Bay Area with expertise 
               in the implementation of the San Francisco Bay Area 
               Conservancy Program, as chair;

             b)   An elected official of a bayside city or county in the 
               North Bay (Counties of Marin, Napa, Solano, and Sonoma);

             c)   An elected official of a bayside city or county in the 
               East Bay (consists of the portion 
             of Contra Costa County that is west of the City of Pittsburg 
               and the portion of Alameda County that is north of the 
               southern boundary of the City of Hayward);
             d)   An elected official of a bayside city or county in the 
               South Bay (consists of Santa Clara County, the portion of 
               Alameda County that is south of the southern boundary of 
               the City of Hayward, and the portion of San Mateo County 
               that is south of the northern boundary of Redwood City;

             e)   An elected official of a bayside city or county in the 
               West Bay (consists of the City and County of San Francisco 
               and the portion of San Mateo County that is north of the 
               northern boundary of Redwood City); and,

             f)   Two member who are elected officials of one or more of 
               the following:

               i)     A bayside city or county; and,

               ii)    A regional park district, regional open-space 
                 district, or regional park and open-space district as 
                 specified that owns or operates one or more San Francisco 
                 Bay shoreline parcels.

          6)Provides that the Association of Bay Area Governments appoints 
            the Authority's board members.

          7)Subjects the members of the Authority's board to the Political 
            Reform Act of 1974.

          8)Provides that board members must exercise his or her 
            independent judgment on behalf of the interests of the 
            residents, the property owners, and the public as a whole.

          9)Gives the Authority the power to levy a benefit assessment, 








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            special tax, or property-related fee consistent with the 
            Constitution, and specifies that an assessment, special tax or 
            property-related fee cannot be levied beyond December 31, 
            2028.

          10)Gives the Authority the power to levy a benefit assessment 
            pursuant to any of the following:

             a)   The Improvement Act of 1911;

             b)   The Improvement Bond Act of 1915;

             c)   The Municipal Improvement Act of 1913;

             d)   The Landscaping and Lighting Assessment Act of 1972; 
               and,

             e)   Any other statutory authorization.

          11)Allows the Authority to apply for and receive grants from 
            federal and state agencies, and solicit and accept gifts, 
            fees, grants and allocations from public and private entities.

          12)Allows the Authority to issue revenue bonds, incur bond 
            indebtedness as specified, receive and manage a dedicated 
            revenue source, deposit or invest moneys, sue and be sued, 
            engage legal counsel and other professional services, enter 
            into and perform all necessary contracts, enter into joint 
            powers agreements, hire staff, and use interim or temporary 
            staff, as specified.  

          13)Prohibits the Authority from acquiring or owning real 
            property.

          14)Provides that records prepared, owned, used, or retained by 
            the Authority are public records for purposes of the 
            California Public Records Act.

          15)Subjects meetings of the Authority to provisions of the Ralph 
            M. Brown Act.

          16)Allows the Authority to raise funds and award grants to 
            public and private entities, including, but not limited to, 
            owners or operators of San Francisco Bay shoreline parcels, 
            for eligible projects in the counties within the Authority's 








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            jurisdiction, and requires an eligible project to do at least 
            one of the following:

             a)   Restore, protect or enhance tidal wetlands, managed 
               ponds, or natural habitats on the San Francisco Bay 
               shoreline;

             b)   Build or enhance shoreline levees or other flood 
               management features that are part of a project to restore, 
               enhance, or protect tidal wetlands, managed ponds, or 
               natural habitats identified in a) above; or,

             c)   Provide or improve public access or recreational 
               amenities that are part of a project to restore, enhance, 
               or protect tidal wetlands, managed ponds, or natural 
               habitats identified in a) above.

          17)Authorizes grants to be used to support all phases of 
            planning, construction, monitoring, operation, and maintenance 
            for specified projects.

          18)Requires annual financial reports that are available to the 
            public, and requires the board to provide for regular audits, 
            as specified.

          19)Sunsets the Authority on January 1, 2029.

           FISCAL EFFECT  :  This bill is keyed fiscal.

           COMMENTS  :   

          1)The Authority was established by AB 2954 (Lieber), Chapter 
            690, Statutes of 2008, in order to restore shoreline wetland 
            habitat around the San Francisco Bay.  In 2007, Save the Bay 
            released a report proposing a broad framework to achieve a 
            goal of 100,000 cumulative acres of wetlands in the Bay.  The 
            report estimated costs of about $1.43 billion over 50 years to 
            restore, monitor, and maintain approximately 36,000 of 
            wetlands that have already been acquired, not including the 
            costs of acquiring and restoring an additional 22,912 acres.  
            The result was the creation of the Authority, which was 
            implemented by AB 2954.

          2)The Legislature created the San Francisco Bay Area Conservancy 
            Program (Program) in 1997 within the State Coastal 








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            Conservancy, and since that time, it has helped develop and 
            fund over 425 restoration and other projects, urban and rural, 
            large and small, in Bay and Delta waters, in streams and on 
            land.  The Program has lead or facilitated the restoration 
            planning for four of the largest restoration projects in the 
            Bay totaling over 26,000 acres, at a cost of over $1.2 
            billion.
          3)According to the sponsor, current statute specifies that the 
            Authority's jurisdiction includes the entire San Francisco Bay 
            Area, including Contra Costa County.  However, the East Bay 
            seat of the governing board excludes the eastern portion of 
            the County.  This bill expands the jurisdiction of the East 
            Bay board member to include all of Contra Costa County.

            Additionally, the bill expands the eastern boundary for 
            eligible projects to include all of the Bay-related shoreline 
            in Solano and Contra Costa Counties.  The author states that 
            important Bay restoration opportunities have been identified 
            on the eastern Solano and Contra Costa County shorelines.

            Lastly, the bill extends the sunset date for the life of the 
            Authority from January 1, 2029, until January 1, 2036.  The 
            sponsor notes that revenue for the restoration project is not 
            expected prior to the 2015 year, and possibly as late as 2017, 
            dependent upon when a ballot measure is passed.  Funding from 
            the ballot measure is anticipated for a 10-year period.

            Existing law allows the Authority to levy an assessment, 
            special tax, or property-related fee consistent with 
            provisions contained in the California Constitution, but 
            grants this power only until December 31, 2029.  Also, 
            provisions in the Authority's enabling act specify that the 
            principal and interest of any bond indebtedness must be paid 
            and discharged prior to January 1, 2029.  

            The Committee may wish to ask the author and sponsor to 
            discuss how the Authority plans to wind down its operations, 
            and discuss whether the expansion of the sunset is premature 
            seeing that the Authority was only created several years ago.

           4)Support arguments  :  This bill contains several technical fixes 
            so that the Authority may efficiently continue its charge to 
            restore, enhance and protect the wetlands and wildlife habitat 
            in the San Francisco Bay and along its shoreline.









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             Opposition arguments  :  The Legislature may want to let more 
            time pass before a sunset extension is granted, in order to 
            ensure that the work of the Authority is progressing in the 
            appropriate ways  .

           5)This bill was heard by the Natural Resources Committee on 
            March 26, 2012, where it passed with a 6-3 vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support                                   Opposition  

          San Francisco Bay Restoration Authority ÝSPONSOR]None on file
          Save Mount Diablo
          Save the Bay
          Trust for Public Land

           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 
          319-3958