BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 453
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          Date of Hearing:  April 3, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                 AB 453 (Mullin) - As Introduced:  February 19, 2013
           
          SUBJECT  :  Sustainable communities.

           SUMMARY  :  Adds local agency formation commissions to the list of  
          eligible applicants for financial assistance grants and loans  
          made by the Strategic Growth Council for the purpose of  
          developing, adopting, and implementing a regional plan or other  
          planning instrument to support the planning and development of  
          sustainable communities.  

           EXISTING LAW :

          1)Allows local agency formation commissions (LAFCOs) to consider  
            regional growth goals and requires reviews of municipal  
            services prior to sphere of influence updates.

          2)Requires Metropolitan Planning Organizations (MPOs) to  
            consider LAFCOs' spheres of influence while preparing their  
            sustainable communities strategies.

          3)Requires LAFCOs, in reviewing a proposal before the LAFCO, to  
            also consider a regional transportation plan adopted pursuant  
            to Section 65080 of the Government Code.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

          1)SB 732 (Steinberg), Chapter 729, Statutes of 2008, created and  
            requires the Strategic Growth Council (SGC) to manage and  
            award financial assistance to Councils of Governments (COGs),  
            MPOs, Regional Transportation Planning Agencies (RTPAs),  
            cities, counties, and Joint Powers Authorities (JPAs) to  
            develop, adopt, or implement a regional plan or other planning  
            instruments consistent with a regional plan that improves air  
            and water quality, improves natural resource protection,  
            increases the availability of affordable housing, improves  
            transportation, meets the goals of AB 32, and encourages  
            sustainable land use.









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          2)The objectives of the SGC and purposes of LAFCOs are  
            interrelated.  LAFCOs were created by the Legislature to serve  
            as the "watchdog" on local growth and local agencies.  Current  
            law defines among the purposes of LAFCOs to discourage urban  
            sprawl, preserve open-space and prime agricultural lands,  
            efficiently provide government services, and encourage the  
            orderly formation and development of local agencies.  

            LAFCOs are required under current law to complete a municipal  
            service review (MSR) prior to a sphere of influence update,  
            which occurs every five years or as necessary.  MSRs are  
            comprehensive in nature and examine things like growth and  
            population projections, present and planned capacity of public  
            facilities, infrastructure needs or deficiencies related to  
            sewer, water, and fire protection, and the financial ability  
            of agencies to provide services.  In some cases, MSRs may  
            contain critical baseline information for Regional  
            Transportation Plans (RTPs) and Sustainable Communities  
            Strategies.  Because LAFCOs are funded by their own local  
            agencies, LAFCOs are not likely to be able to prepare an MSR  
            in the depth needed by the MPO or COG for their RTP or  
            Sustainable Communities Strategy.

          3)Currently LAFCOs can only apply through an MPO or other  
            eligible local agencies for grants that support the  
            preparation of Sustainable Community Strategies.  This bill  
            adds LAFCOs to the list of eligible applicants for financial  
            assistance grants and loans made by the SGC for the purpose of  
            developing, adopting, and implementing a regional plan or  
            other planning instruments to support the planning and  
            development of sustainable communities.  

            With grant funding, LAFCOs would be able to prepare much more  
            extensive MSRs in collaboration with MPOs to provide the data  
            needed to complete the RTP or Sustainable Communities  
            Strategy. Additionally, this bill would then avoid the need  
            for the MPO to have to fund studies to obtain the necessary  
            information and would foster a greater opportunity for  
            collaboration among the planning agencies and the LAFCOs.  

            This bill is sponsored by the California Association of Local  
            Agency Formation Commissions (CALAFCO).

          4)CALAFCO notes that "under current law, the cost of the MSR  
            preparation is paid for by the cities, districts and county  








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            within each LAFCO.  The limited availability of local funds  
            can restrict the level of detail in an MSR.  By making LAFCOs  
            eligible to apply for SGC grants, LAFCO would be able to  
            prepare more comprehensive and data-rich MSRs and sphere of  
            influence studies in collaboration with the regional  
            transportation agency.  This would reduce duplication of  
            effort and provide the transportation agencies with more  
            complete information regarding municipal services and growth  
            capacity for the preparation of the Sustainable Communities  
            Strategies."

          5)Proposition 84, the Safe Drinking Water, Water Quality and  
            Supply, Flood Control, River and Coastal Protection Bond Act  
            of 2006, includes $90 million for planning grants and  
            incentives including revolving loan programs and other methods  
            to encourage the development of regional and local land use  
            plans.  Of the approximately $63 million allocated  
            specifically for planning grants more than $50 million has  
            been awarded in 93 grants to cities, counties and regional  
            agencies.  With approximately $12.5 million remaining in the  
            pot the SGC will reopen program guidelines before proceeding  
            with the third round of grants.  According to the SGC, one of  
            the factors they will review before reopening program  
            guidelines is how to strengthen the connection to sustainable  
            community planning.  

          6)This bill is substantially similar to, AB 2624 (Smyth, 2012)  
            that was heard by this Committee and passed out on 9-0 vote.   
            AB 2624 was later held on the suspense file in the Senate  
            Appropriations Committee.  

           7)Support arguments  :  Supporters believe that this bill provides  
            a resource for preparing more comprehensive MSRs to better  
            inform both LAFCO and regional transportation agency  
            decisions.

           Opposition arguments  :  None on file.  

           

          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Local Agency Formation Commissions  








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          [SPONSOR]
          American Federation of State, County and Municipal Employees

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958