BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 1058                     HEARING:  6/12/13
          AUTHOR:  Chávez                       FISCAL:  Yes
          VERSION:  5/16/13                     TAX LEVY:  No
          CONSULTANT:  Lui                      

                  SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY
          

          Makes several changes to the laws governing the San Diego  
          County Regional Airport Authority. 


                                    Background  

          In 2000, the Legislature created the San Diego Regional  
          Government Efficiency Commission (RGEC), which developed  
          plans to consolidate regional agencies and improve  
          coordination of regional functions (SB 329, Peace, 2000).   
          RGEC released its report and recommended that the  
          Legislature consolidate the region's aviation  
          responsibilities into a new San Diego Regional Airport  
          Authority. In response to those recommendations, AB 93  
          (Wayne, 2001) created the San Diego County Regional Airport  
          Authority (the Authority) with the power to plan, site,  
          own, and operate a new regional airport, shifting powers  
          from the San Diego Unified Port District and the San Diego  
          Association of Governments (SANDAG).  

          The Authority has three key functions:
                 Own and operate the San Diego International Airport  
               (Lindbergh Field).
                 Adopt airport land use compatibility plans for the  
               county's 16 airports. 
                 Plan for the region's future air transportation  
               needs. 

          Since 2001, the Authority has completed its plan for San  
          Diego International Airport's future development, and some  
          provisions in the Authority's enabling act pertain to  
          outdated timelines.  The Authority would like to update its  
          enabling legislation. 

                                   Proposed Law  





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          Assembly Bill 1058 makes several changes to laws governing  
          the San Diego County Regional Airport Authority.

           Board of Directors  .  Current law provides that a  
          nine-member board of directors governs the Authority: 
                 The Mayor of San Diego appoints three persons, two  
               of whom are subject to confirmation by San Diego City  
               Council, and at least one must be either a city  
               councilmember or the Mayor.
                 The Chair of the Board of Supervisors appoints two  
               persons, subject to confirmation by San Diego County's  
               Board of Supervisors.  At least one must be a county  
               supervisor. 
                 The mayors of the east county cities appoint one  
               city councilmember or a resident from their cities.
                 The mayors of the north county coastal cities  
               appoint one city councilmember or a resident from  
               their cities.
                 The mayors of the north county inland cities  
               appoint one city councilmember or a resident from  
               their cities.
                 The mayors of the south county cities appoint one  
               city councilmember or a resident from their cities. 

          Current law defines:
                 "East county cities" as El Cajon, La Mesa, Lemon  
               Grove, and Santee.
                 "North county coastal cities" means Carlsbad, Del  
               Mar, Encinitas, Oceanside, and Solana Beach.
                 "North county inland cities" means Escondido,  
               Poway, San Marcos, and Vista.
                 "South county cities" means Chula Vista, Coronado,  
               Imperial Beach, and National City. 

          Assembly Bill 1058 clarifies that the Board of Directors  
          (Board) for the Authority shall consist of nine voting  
          members. 

          Existing law requires the Authority's four regional  
          jurisdictions to appoint their Authority Board member at a  
          meeting of the city selection committee, defined as a  
          committee created for the purpose to appoint city  
          representatives to boards, commissions, and agencies,  
          pursuant to state law.  Assembly Bill 1058 eliminates the  
          term "city selection committee" and removes the requirement  
          that the four regional jurisdictions appoint their member  





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          at a city selection committee meeting.  The bill, instead,  
          requires the appointment be made a public meeting pursuant  
          to a majority vote of the regional jurisdiction's mayors.  

          Existing law requires that a city selection committee's  
          meeting be subject to the Ralph M. Brown Act, the  
          open-meeting law for local governments.  Assembly Bill 1058  
          requires that meetings convened by mayors of cities to  
          appoint a city councilmember or resident to the Authority's  
          governing board be subject to the Ralph M. Brown Act and be  
          publicly noticed by the Authority and by each of the cities  
          whose mayor is eligible to participate.   Assembly Bill  
          1058 also requires the meetings to be conducted by the  
          Authority clerk who must record the meeting's minutes.

          Assembly Bill 1058 authorizes the Authority to issue  
          guidance to cities concerning the appointment process.

          The bill clarifies that the Mayor of San Diego must appoint  
          the Board chair from among the nine voting members of the  
          Board.

           Terms of office  .  To provide for an orderly transition from  
          the San Diego Unified Port District and the San Diego  
          Association of Governments, current law specifies terms of  
          office for appointments to the Board.  Assembly Bill 1058  
          repeals this language. 

          The bill authorizes a Board member to continue to serve  
          beyond his or her term's expiration, until a successor  
          takes office.

          Assembly Bill 1058 changes the date when a Board member  
          must take office, from noon on the first Monday in February  
          following their appointment to 12:01 am on February 1 of  
          the year when the appointment commences.  If a board  
          appointment is made after February 1 of the year when the  
          member's term is scheduled to commence, the Board member  
          must take office immediately upon appointment, and if  
          applicable, after receiving confirmation, to serve the  
          remainder of the term.

           Vacancy  .  Current law requires any Board vacancy to be  
          filled promptly, pursuant to state law.  Assembly Bill 1058  
          removes this language.






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          Current law provides that if a Board member serving an  
          extended term pursuant to state law leaves office prior to  
          the expiration of his or her term, the vacancy shall be  
          filled for the balance of the unexpired term pursuant to  
          state law, except if a vacancy occurs for the Governor's  
          appointment to the board of directors before June 30, 2011,  
          then the Governor must make the appointment to fill the  
          vacant office for the balance of the unexpired term.   
          Assembly Bill 1058 removes the language pertaining to 2011  
          and the Governor's appointments. 
           
          Board's Executive Committee  .  The Board must have a  
          3-member Executive Committee, comprised of:
                 The chair of the Authority's Board. 
                 A Board member appointed by the Chair of the Board  
               of Supervisors.
                 A Board member appointed by city selection  
               committees.

          Assembly Bill 1058 clarifies the membership of the Board's  
          Executive Committee to include:
                 A board member selected from among those members  
               appointed by the Mayor of the City of San Diego  
               pursuant to state law (category 1),
                 A board member appointed by the Chair of the Board  
               of Supervisors pursuant to state law (category 2), and
                 A board member selected from among the four  
               regional jurisdictions (category 3). 

          Assembly Bill 1058 also requires that Executive Committee  
          members be the following:
                 Chair of the Authority's board of directors, 
                 Vice-chair of the Authority's board of directors,  
               appointed from a category different than the chair,  
               and
                 A third Board member appointed from a category not  
               represented on the executive committee. 

          Assembly Bill 1058 requires that the Vice-chair and the  
          third Board member be selected to serve by a vote of the  
          Board. 
           
           Weighted votes  .  Current law provides that adopting an  
          ordinance, resolution, or motion requires both a numerical  
          and weighted majority vote of the total voting membership  
          of the Board.  Current law defines a numerical majority as  





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          an affirmative vote of five of the voting membership of the  
          Board.  Assembly Bill 1058 clarifies that a "numerical  
          majority" requires at least five affirmative votes. 

          Existing law defines "weighted majority" as an affirmative  
          vote of 51 vote points allocated to the voting membership  
          of the Board, or an affirmative vote of 50% plus one of the  
          total vote points.  Assembly Bill 1058 clarifies that a  
          "weighted majority" requires at least 51 points, or at  
          least 50% plus one of the total vote points.

          Existing law requires the allocation of vote points, for  
          the purposes of the Board's weighted votes, to be made by  
          the Board based on SANDAG's population calculations every  
          July 1.  Assembly Bill 1058 changes the date from "every  
          July 1" to "annually." 

           Audit committee  .  Current law requires the Board, on or  
          before July 1, 2000, to expand the membership of the audit  
          committee, which acts independently and is charged with  
          oversight of the Authority's financial reporting and  
          operations.   Assembly Bill 1058 eliminates this date and  
          the requirement to expand the audit committee's membership,  
          and instead establishes the audit committee as a standing  
          committee of the Board. 

          Existing law requires that public members must be appointed  
          for three-year terms, commencing July 1, 2008 and specifies  
          the terms for staggered terms, wherein the initial term of  
          one of the public members is one year, the initial term of  
          another public member must be two years, and the initial  
          term of one of the public members be three years.  Assembly  
          Bill 1058 eliminates this language and provides that the  
          public members must be appointed by the Board for staggered  
          three-year terms. 
           
          San Diego Regional International Airport  .  Current law  
          requires the Authority to adopt a comprehensive plan on the  
          future development of San Diego's regional international  
          airport.  The Authority also must review all options of  
          alternative sites, including expansion of existing airport  
          site and other development options available to address  
          future airport needs.  Because the Authority adopted this  
          comprehensive plan in 2008, Assembly Bill 1058 makes this  
          language permissive. 






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           The Port  .  Current law requires the Port to transfer all  
          title and ownership to the San Diego International Airport  
          to the Authority, consistent with terms specified in state  
          law, and the transition plan, required under state law.   
          Assembly Bill 1058 removes language pertaining to the  
          transition plan.

           Rent  .  Current law requires the Port to agree to lease, for  
          a period of 66 years, starting on January 1, 2003, to the  
          Authority, specified parcels.  The law also provides how  
          much rent must be paid monthly for calendar years 2003  
          through 2005, and specifies that the annual rent shall be  
          level based on a fair market value of the property as of  
          January 1, 2006.  Assembly Bill 1058 eliminates language  
          related to rent for years 2003 through 2005.

           Transition  .  Current law requires the Authority to develop  
          a transition plan to facilitate the transfer of San Diego  
          International Airport (Airport) to the Authority.  The  
          Authority and the Port must jointly commission a certified  
          audit to determine San Diego International Airport's  
          financial condition.  Current law also requires that the  
          transfer of the Airport to the Authority be completed on or  
          after December 16, 2002.  Upon completion of the transfer,  
          the Authority must hire existing Port staff assigned to the  
          aviation division.  The transfer may not impair any  
          contracts with vendors, tenants, employees, or other  
          parties.  Because the transition was completed in 2003,  
          Assembly Bill 1058 removes language pertaining to the  
          transition plan. 

           Miscellaneous  .  The bill also makes other technical and  
          conforming changes. 


                               State Revenue Impact
           
          No estimate. 


                                     Comments  

           Purpose of the bill .  In 2001, Wikipedia went online for  
          the first time, Apple stock was $10 per share, and the  
          average price of one premium gallon of gas in California  
          was $1.82.  It's also been 12 years since San Diego County  





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          Regional Airport Authority was first established.   
          According to the author, "AB 1058 serves as a 'clean-up'  
          bill, making necessary changes to the Act that have been  
          identified by counsel, and eliminating sections of the Act  
          which are outdated and obsolete."  AB 1058 removes these  
          outdated provisions and provides clarity in the Authority's  
          governing statute.  


                                 Assembly Actions  

          Assembly Local Government:9-0
          Assembly Appropriations:                          17-0
          Assembly Floor:                    74-0


                         Support and Opposition  (6/6/13)

           Support  :  San Diego County Regional Airport Authority;  
          California Airports Council. 

           Opposition  :  Unknown.