BILL ANALYSIS Ó AB 1656 Page 1 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: AB 1656 Page 2 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, AB 1656 Page 3 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 AB 1656 Page 4 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 AB 1656 Page 5 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. AB 1656 Page 6 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