BILL ANALYSIS Ó
AB 418
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 418 (Mullin)
As Amended February 10, 2014
2/3 vote. Urgency
-----------------------------------------------------------------
|ASSEMBLY: | |(May 9, 2013) |SENATE: |27-8 |(February 20, |
| | | | | |2014) |
-----------------------------------------------------------------
(vote not relevant)
------------------------------------------------------------------------
|COMMITTEE VOTE: |7-2 |(April 2, 2014) |RECOMMENDATION: |concur |
|(L. Gov.) | | | | |
------------------------------------------------------------------------
Original Committee Reference: JUD.
SUMMARY : Authorizes the City/County Association of Governments
(C/CAG) of San Mateo County to impose a special tax, in compliance
with Article XIII C of the California Constitution, or to impose a
property related fee, in compliance with Article XIII D of the
California Constitution, to implement stormwater management
programs consistent with the joint powers agreement of C/CAG's
member agencies.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Authorize C/CAG to impose a special tax, in compliance with
Article XIII C of the California Constitution, or to impose a
property related fee, in compliance with Article XIII D of the
California Constitution, to implement stormwater management
programs consistent with the joint powers agreement of C/CAG's
member agencies.
2)Allow the special tax or property related fee, at the option of
C/CAG, to be collected on the tax rolls of the county in the same
manner, by the same persons, subject to the same penalties, and
at the same time as county ad valorem property taxes. Allow the
county auditor to deduct the amount required to reimburse the
county for its actual cost of collection.
AB 418
Page 2
3)Contain an urgency clause.
4)Find and declare that a special statute is necessary because of
the unique circumstances applicable only to C/CAG.
5)Find and declare that this bill responds to the specific and
unique circumstances of C/CAG and that it is the intent of the
Legislature that this act shall not be construed to limit,
expand, or otherwise change any local agency's authority to
exercise powers under the Joint Exercise of Powers Act.
6)Find and declare that this bill will enable C/CAG to do all of
the following:
a) Protect, in conjunction with its member agencies, the
watersheds and natural resources within C/CAG and restore and
enhance the environment, including the long-term protection of
the waters of local creeks, the San Francisco Bay, and the
coastline along the Pacific Ocean;
b) Develop and adopt a countywide stormwater management
program designed to coordinate, fund, and implement water
pollution prevention programs within the County of San Mateo
by C/CAG or its member agencies; and,
c) Impose, consistent with the California Constitution, a
special tax or property related fee to fund activities
outlined in its joint powers agreement and consistent with
municipal stormwater permit requirements mandated by the San
Francisco Bay Regional Water Quality Control Board.
EXISTING LAW :
1)Allows two or more public agencies by agreement, if authorized by
their legislative or other governing bodies, to jointly exercise
any power common to the contracting parties.
2)Requires two-thirds voter approval for a special tax.
3)Provides notice, protest, and hearing procedures for the levying
of new or increased assessments or property related fees or
charges by local government agencies pursuant to Proposition 218
(1996).
AS PASSED BY THE ASSEMBLY , this bill required state agencies to
AB 418
Page 3
post a specifically described graphical Internet link referencing
the State Auditor's Web site location that contains information on
how to file a complaint pursuant to the California Whistleblower
Protection Act.
FISCAL EFFECT : None
COMMENTS :
1)Purpose of the bill. This bill authorizes C/CAG to impose a
special tax or a property related fee, in compliance with the
California Constitution, to implement stormwater management
programs consistent with the joint powers agreement of C/CAG's
member agencies.
2)Author's statement. According to the author, "C/CAG is a joint
powers agency formed in 1991 to provide a forum for all local
governments in San Mateo County to work together on common
issues. C/CAG's member agencies are the County of San Mateo and
the 20 cities and towns within the county. In addition to its
primary role as the county's Congestion Management Agency, C/CAG
provides numerous other services, including managing the
Countywide Water Pollution Prevention Program, which supports
member agencies in complying with municipal stormwater
regulations issued by the San Francisco Bay Regional Water
Quality Control Board under its Municipal Regional Permit.
Although C/CAG is not a permittee under the permit, it does
implement compliance programs for certain requirements on behalf
of its member agencies when it is more efficient or
cost-effective to perform those services at a countywide level
(e.g. water quality monitoring).
"C/CAG and about half of its member agencies have existing
pre-Proposition 218 assessments dedicated to stormwater pollution
prevention programs. In some cases, member agencies that
currently don't have a dedicated stormwater assessment are
funding stormwater compliance activities through other sources,
including their local general funds. C/CAG has two existing
countywide stormwater assessments imposed through the San Mateo
County Flood Control District under the Board of Supervisors.
Those two assessments generate approximately $1.5 million
annually.
"In 2010, San Mateo County voters approved C/CAG's Measure M,
authorizing a $10 vehicle registration fee that primarily funds
AB 418
Page 4
congestion management-related activities, but is also used for
stormwater pollution prevention programs by both C/CAG and its
member agencies. C/CAG's member agencies have been required to
implement increasingly expensive programs to address a variety of
ubiquitous stormwater pollutants and others that are challenging
to address, including trash, pesticides, mercury, and
polychlorinated biphenyls, existing revenues are now insufficient
to meet regulatory demands. C/CAG estimates countywide funding
deficits exceed $15 million per year for C/CAG and its member
agencies to provide compliant stormwater programs over the next
five year-term of the Municipal Regional Permit.
"C/CAG believes it is the most appropriate agency to pursue
countywide funding in its role as the Countywide Water Pollution
Prevention Program administrator, given that any decision to
place a special tax or property-related fee before voters or
property owners would be subject to approval by C/CAG's Board of
Directors, which includes an elected official from each of the 21
local agencies. C/CAG is pursuing enabling legislation because
there are no other viable means already codified for a joint
powers agency to propose special taxes or property-related fees
for stormwater pollution prevention programs."
3)Proposition 218. The California Constitution distinguishes among
taxes, assessments and fees for property related revenues, and
requires certain actions before such revenues may be collected.
This bill requires C/CAG to comply with the provisions of
Proposition 218 (1996) which require a two-thirds voter approval
for a special tax. For a property related fee Proposition 218
requires local officials to identify the parcels, calculate the
fee for each parcel, and conduct a majority protest proceeding 45
days after mailing notice of a new fee to all fee payers.
Additionally, Article XIII D, Section 6, subdivision (c) of the
California Constitution provides that "Except for fees or charges
for sewer, water, and refuse collection services, no property
related fee or charge shall be imposed or increased unless and
until that fee or charge is submitted and approved by a majority
vote of the property owners of the property subject to the fee or
charge or, at the option of the agency, by a two-thirds vote of
the electorate residing in the affected area."
Counties and other local agencies with police powers may impose
any one of these options on property owners, after completing the
Proposition 218 process. Special districts created by statute,
however, must have specific authority for each of these revenue
AB 418
Page 5
sources.
4)Joint Exercise of Powers Act. The Joint Exercise of Powers Act
provides the statutory authority for public entities to create
and use a joint powers agreement, which is a legal framework for
state and local governments to exercise common powers and even
create new public entities. They are an attractive tool for
local governments because they facilitate more efficient service
provision through collaboration, and because they permit local
entities to issue bonds without voter ratification. Current law
authorizes joint powers authorities (JPAs) to jointly exercise
any power common to the contracting parties, if authorized by
their legislative or governing body. However, current law is
silent on a JPA's explicit authority to impose a special tax,
assessment, or property related fee.
AB 2170 (Mullin) of the current legislative session, pending in
the Assembly, addresses this issue by explicitly authorizing two
or more public agencies by agreement to jointly exercise any
power common to the contracting parties including, but not
limited to, the authority to levy a fee or tax. AB 2170 finds
and declares that a JPA has all powers common to the contracting
parties, so long as those powers are specified in the joint
powers agreement, therefore, the bill does not constitute a
change in law, but is declaratory of existing law.
5)Previous legislation. In 2004, AB 1546 (Simitian), Chapter 931,
Statutes of 2004, granted C/CAG the authority to impose an annual
fee on motor vehicles for programs to manage traffic congestion
and stormwater pollution. This authority was extended until
January 1, 2013, by SB 348 (Simitian), Chapter 377, Statutes of
2008. SB 613 (Simitian) of 2007, would have extended the
authority until January 1, 2019, but was vetoed by Governor
Schwarzenegger.
6)Arguments in support. Supporters argue while ultimate approval
of any new funding stream still rests with the voters and
property owners within our jurisdictions pursuant to the
Constitution that this bill will enable a coordinated countywide
approach to funding stormwater pollution prevention programs
consistent with the consolidated regional regulations issued by
the San Francisco Bay Regional Water Quality Control Board.
7)Arguments in opposition. Opposition argues that this bill is
unnecessary because San Mateo County, its cities, and some of its
AB 418
Page 6
special districts already have authority to fund stormwater
programs using existing revenue tools.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
FN: 0003116