BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 453
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         ASSEMBLY THIRD READING
        AB 453 (Mullin)
        As Introduced  February 19, 2013
        Majority vote 
         
         LOCAL GOVERNMENT    8-1         APPROPRIATIONS      16-0         
         
         ----------------------------------------------------------------- 
        |Ayes:|Achadjian, Levine, Alejo, |Ayes:|Gatto, Harkey, Bigelow,   |
        |     |Bradford, Gordon,         |     |Bocanegra, Bradford, Ian  |
        |     |Melendez, Mullin, Bonta   |     |Calderon, Campos, Eggman, |
        |     |                          |     |Gomez, Hall, Ammiano,     |
        |     |                          |     |Linder, Pan, Quirk,       |
        |     |                          |     |Wagner, Weber             |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Waldron                   |     |                          |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 

         SUMMARY  :  Adds local agency formation commissions (LAFCOs) to the  
        list of eligible applicants for financial assistance grants and  
        loans made by the Strategic Growth Council (SGC) 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 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  
          Government Code Section 65080.

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee,  
        increased cost pressures resulting from expanding eligibility for  
        sustainable community loans and grants (Proposition 84 bond funds  
        and special funds) and negligible costs for the administration of  








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        the grant program.  

         COMMENTS  :  SB 732 (Steinberg), Chapter 729, Statutes of 2008,  
        created and requires 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 (N��ez), Chapter  
        488, Statutes of 2006, and encourages sustainable land use.

        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.

        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  








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        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).

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

        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.  

        This bill is substantially similar to, AB 2624 (Smyth) of 2012 which  
        was held on the suspense file in the Senate Appropriations  
        Committee.  

        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.  
         









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        Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
        319-3958 

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