BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 792                      HEARING:  5/1/13
          AUTHOR:  DeSaulnier                   FISCAL:  Yes
          VERSION:  4/22/13                     TAX LEVY:  No
          CONSULTANT:  Weinberger               

                           BAY AREA REGIONAL PLANNING
          

          Expands the Bay Area Joint Policy Council's role in  
          regional planning activities and requires the Legislative  
          Analyst's Office to report on specified regional voting  
          disparities. 


                           Background and Existing Law  

          With nine counties and 101 cities, the San Francisco Bay  
          Area is home to several single-purpose regional agencies,  
          including the Association of Bay Area Governments (ABAG),  
          the Bay Area Air Quality Management District (BAAQMD), the  
          Metropolitan Transportation Commission (MTC), and the San  
          Francisco Bay Conservation and Development Commission  
          (BCDC).

          ABAG is a voluntary "council of governments" (COG) created  
          by cities and counties with a joint powers agreement.  Like  
          other COGs, ABAG prepares long-term regional plans and  
          creates the regional housing needs analysis that local  
          officials use in preparing their general plans' housing  
          elements.  ABAG also has other statutory planning duties.

          The federal government designates a metropolitan planning  
          organization (MPO) to coordinate transportation planning in  
          each urban region.  Most of California's MPOs are COGs,  
          organized by the cities and counties in their own regions.   
          The Bay Area is an exception.  The Legislature created MTC  
          to coordinate the Bay Area's transportation planning.  ABAG  
          is the COG, but MTC is the MPO.

          The MTC also functions as the Bay Area Toll Authority  
          (BATA).  In 1997, the Legislature created the BATA, which  
          is responsible for managing and investing toll revenues  
          from the Bay Area's seven state-owned toll bridges, funding  
          the day-to-day bridge operations, facilities maintenance,  




          SB 792 -- 4/22/13 -- Page 2



          administration, and long-term capital improvement and  
          rehabilitation of the bridges (SB 226, Kopp, 1997).

          Created by the Legislature in 1955 as the first regional  
          air pollution control agency in the country, the BAAQMD is  
          the public agency entrusted with regulating stationary  
          sources of air pollution in the nine counties that surround  
          San Francis-co Bay.

          Created by the Legislature in 1965, the San Francisco Bay  
          Conservation and Development Commission (BCDC) is a state  
          commission which plans and regulates land uses under and  
          around San Francisco Bay and the Suisun Marsh.  

          In 2003, ABAG and MTC formed a regional Joint Policy  
          Committee (JPC) to co-ordinate their regional planning  
          efforts.  At the direction of the Legislature, the JPC  
          subsequently added the BAAQMD and the BCDC as represented  
          agencies (SB 849, Torlakson, 2004 and AB 2094, DeSaulnier,  
          2008).  State law requires the JPC to coordinate the  
          development and drafting of major planning documents  
          prepared by ABAG, MTC, BAAQMD, and BCDC, including:
                 The regional transportation plan prepared by MTC.
                 The ABAG housing element planning process for  
               regional housing needs. 
                 The BAAQMD's Ozone Attainment Plan and Clean Air  
               Plan.
                 The BCDC's San Francisco Bay Plan and related  
               documents.

          To help improve the JPC's coordination efforts, some Bay  
          Area elected officials want the Legislature to increase the  
          JPC's independence and expand its role in regional planning  
          activities.


                                  Proposed Law  

          Senate Bill 792 requires the Joint Policy Committee (JPC)  
          to prepare a regional organization plan that includes: 
                 A plan for integrating, by July 1, 2016, major  
               planning documents prepared by ABAG, MTC, BAAQMD, and  
               BCDC into a comprehensive regional plan that  
               addresses: priority infrastructure needs, goals and  
               policies related to economic development  
               opportunities, and specified social equity goals.





          SB 792 -- 4/22/13 -- Page 3



                 A plan for consolidating common functions of the  
               four regional entities, including: human resources,  
               budget and financial services, electronic data and  
               communications systems, legal services, contracting  
               and procurement, public information and outreach,  
               intergovernmental relations, transportation, land use,  
               economic, and related forecasting models.

          SB 792 requires the JPC's staff to submit a draft regional  
          organization plan to the JPC on or before December 31,  
          2014.  The JPC must ensure public participation in  
          developing and adopting the regional organization plan and  
          must hold at least one public hearing to receive public  
          comments in each county of the region.  The JPC must adopt  
          a final plan on or before June 30, 2015.  The regional  
          organization plan's provisions related to integrating major  
          planning documents into a comprehensive regional plan must  
          be implemented by July 1, 2016.

          The bill requires that all cost savings derived from the  
          regional organization plan's implementation must be  
          directed to the JPC's General Fund.

          Until the JPC adopts a comprehensive regional plan, SB 792  
          requires it to review draft and adopted versions of:
                 Specified major planning documents prepared by  
               ABAG, MTC, BAAQMD, and BCDC.
                 Policies, plans, and regulations of each regional  
               entity associated with the major planning documents.

          The JPC's review must assess the planning documents,  
          policies, plans, and regulations' consistency with each  
          other, with the requirements of Senate Bill 375 (Steinberg,  
          2008), and with the specified goals and policies related to  
          economic development opportunities.  The JPC must issue a  
          consistency report describing the findings of each review  
          and hold public and community hearings in accordance with  
          its public outreach policies regarding the draft  
          consistency findings. Each consistency review's finding  
          must be considered by the applicable regional entity in  
          connection with any proposed amendment to a planning  
          document, policy, plan, or regulation.

          SB 792 requires the JPC, after providing opportunity for  
          public comment, to develop and adopt public and community  
          outreach and inclusive public participation policies.  The  





          SB 792 -- 4/22/13 -- Page 4



          policies, which must be adopted by October 31, 2014, will  
          govern regular JPC meetings, the JPC's development and  
          adoption of a regional organization plan, other regional  
          entities' meetings, standing committee meetings, meetings  
          of ad hoc or other temporary committees, and workshops.  

          SB 792 directs the JPC to maintain an Internet Web site  
          containing relevant information pertaining to its  
          activities.

          SB 792 specifies that the JPC is subject to the Ralph M.  
          Brown Act's open meeting requirements.

          SB 792 requires the JPC to appoint an advisory committee on  
          economic competitiveness which must include specified  
          representatives of the business community, educational  
          institutions, labor, local governments, community  
          organizations, and other organizations involved with the  
          private economy.

          SB 792 requires the JPC, in consultation with the advisory  
          committee, to adopt goals and policies related to including  
          economic development opportunities in regional entities'  
          plans and the comprehensive regional plan.  The goals and  
          policies also must promote amenities that are special to  
          the region and contribute to the region's quality of life  
          and must integrate specified social equity goals.

          SB 792 requires the Legislative Analyst's Office to analyze  
          and report to the Legislature on the voting power that each  
          city and county in the region has on the governing board of  
          each of the regional entities, including an analysis of any  
          voting power disparities based on population, race, and  
          ethnicity. The analysis must use appropriate metrics, such  
          as votes per million in population.  The LAO must report to  
          the Legislature by July 1, 2014.  The report must include  
          recommended changes to regional entity governance and  
          voting, including any recommended legislation that would  
          lessen any disparities to insignificant levels.


                               State Revenue Impact
           
          No estimate.







          SB 792 -- 4/22/13 -- Page 5



                                     Comments 

          1.   Purpose of the bill  .  Some regional planning advocates  
          express frustration that the JPC does not truly coordinate  
          the activities of the Bay Area's regional planning  
          agencies.  The JPC currently lacks the authority to make  
          binding policy decisions or override its member agencies'  
          decisions.  Regional business and community groups have  
          expressed concerns about the lack of a regional economic  
          development plan.  They would like to see planners give  
          greater consideration to how regional plans and regulations  
          affect the region's economic competitiveness.  In response  
          to these concerns, SB 792 seeks to strengthen the JPC's  
          coordinating role, improves community outreach, and ensure  
          consideration of the economic impacts of regional plans and  
          regulations.  Unlike some more ambitious attempts to  
          combine regional institutions, SB 792 neither creates new  
          agencies nor dissolves existing agencies.  The bill relies  
          on an existing joint policy committee to better integrate  
          regional planning.  This modest effort at coordinating  
          regional agencies' programs and planning processes reduces  
          institutional fragmentation, improves regional agencies'  
          efficiency, and advances efforts to achieve political  
          consensus about a desirable long-range vision of the Bay  
          Area.

          2.   Institutional capacity  .  Developing a regional  
          organization plan and merging the Bay Area's major planning  
          documents into a well-designed and useable comprehensive  
          regional plan are complex tasks.  The JPC depends upon  
          staff and funding from its member agencies.  The only new  
          resources that the bill directs to the JPC come from  
          savings that are obtained from implementing the regional  
          organization plan after it has been adopted.  SB 785 does  
          not provide the JPC with any new resources to use during  
          the period that it must develop the regional organization  
          plan, conduct extensive public hearings and workshops, and  
          merge the region's major planning documents.  The bill also  
          asks the LAO to examine imbalances in voting power and  
          representation on Bay Area regional agencies' governing  
          boards.  However, the bill does not require that the JPC's  
          governing board, which must approve the regional  
          organization plan and regional economic development goals,  
          to eliminate voting power disparities by adequately  
          representing all of the region's communities.  Without  
          sufficient staffing, adequate funding, or representative  





          SB 792 -- 4/22/13 -- Page 6



          membership on its governing board, it is unclear that the  
          JPC will have the capacity to implement the substantial new  
          responsibilities that SB 792 imposes on it.

          3.   Implementation  .  The 2004 Torlakson bill adding BAAQMD  
          to the JPC also required the JPC, by 2006, to provide a  
          report to the Legislature analyzing the feasibility of  
          consolidating functions performed separately by ABAG and  
          the MTC.  SB 792 similarly requires the JPC to plan for  
          consolidating specified functions performed by regional  
          agencies.  However, like the earlier consolidation  
          reporting requirement, the bill does not actually require  
          the agencies to consolidate any functions.  If the 2006 JPC  
          report on consolidation didn't generate sufficient  
          consolidation among regional agencies, why will another  
          non-binding regional consolidation plan produce different  
          results?  The Committee may wish to consider amending SB  
          792 to require that regional agencies must comply with the  
          plan for consolidating functions by a specified date.

          4.   Duplicative  ?  Some of SB 792's provisions appear to  
          duplicate existing law.  State law requires the JPC to  
          review and comment on drafts and final versions of major  
          planning documents produced by ABAG, MTC, BAAQMD, and BCDC.  
           SB 792 reiterates this requirement, adding some criteria  
          that the JPC must consider and requiring the JPC to hold  
          public hearings before it finalizes its review of planning  
          documents, policies, and regulations.  Current law requires  
          the JPC to comply with the Ralph M. Brown Act's open  
          meeting requirements.  SB 792 reiterates this requirement.   
          SB 375 (Steinberg, 2008) requires metropolitan planning  
          organizations and local governments to comply with  
          extensive public participation requirements that seek to  
          include a wide range of stakeholders in public hearings and  
          workshops to consider regional and local planning  
          proposals.  SB 792 requires the JPC to adopt its own public  
          participation policies to govern its hearings, workshops,  
          and regional organization plan adoption process.  The  
          Committee may wish to consider amending SB 785 to remove  
          provisions that duplicate requirements of current law.

          5.   Let's be clear  .  Recent amendments to SB 792 could be  
          misinterpreted as requiring the substantive provisions of a  
          comprehensive regional plan to be fully implemented by July  
          1, 2016.  The language was intended to clarify only that  
          the JPC must complete the integration of specified planning  





          SB 792 -- 4/22/13 -- Page 7



          documents into a comprehensive regional plan by July 1,  
          2016.  The Committee may wish to consider amending SB 792  
          to clarify that the July 1, 2016 deadline only applies to  
          the adoption, and not the implementation, of a  
          comprehensive regional plan.

          6.   Not the first time  .  Legislative debates over how to  
          organize Bay Area regional governance stretch deep into the  
          last century.  The debate over regional transportation  
          planning emerged from the Bay Area Transportation Study  
          (BATS) Commission (SB 371, McAteer, 1963).  A 1968 bill  
          required BATS to finish its report (AB 911, Knox, 1968).   
          One result was the statutory creation of MTC (AB 363,  
          Foran, 1970).  A citizens' group called Action for Regional  
          Environmental Agency (AREA) pushed to consolidate regional  
          governments in the early 1970s.  BayVision 2020 advocated  
          improved regional governance in the 1990s.  In 2002,  
          legislation to merge ABAG and the MTC passed the Senate,  
          but died in the Assembly (SB 1243, Torlakson, 2002).  Last  
          year, the Senate Governance & Finance Committee passed SB  
          1149 (DeSaulnier, 2012) which created a regionally-elected  
          Bay Area Regional Commission to improve coordination among  
          regional agencies.  That bill died in the Senate  
          Appropriations Committee.  For the last 40 years the  
          region's institutions have been stable while the Bay Area's  
          population and economy have changed.  SB 792 presents  
          legislators with an opportunity take another look at this  
          perennial challenge.

          7.    Mandate  .  The California Constitution requires the  
          state to reimburse local governments for the costs of new  
          or expanded state mandated local programs.  Because SB 792  
          imposes new duties on the JPC, Legislative Counsel says  
          that the bill imposes a new state mandate.  SB 792 requires  
          the state to reimburse local agencies if the Commission on  
          State Mandates determines that the bill imposes a  
          reimbursable mandate.  Because SB 792 requires that  
          cost-savings from implementing a regional organization plan  
          must go to the JPC's general fund, these savings may be  
          used to offset mandate reimbursements required by the  
          commission.

          8.   Double-referral  .  Because some of SB 792's provisions  
          fall within the jurisdictions of the Senate Transportation  
          & Housing Committee and the Senate Governance & Finance  
          Committee, the Senate Rules Committee ordered a  





          SB 792 -- 4/22/13 -- Page 8



          double-referral.  The Senate Transportation & Housing  
          Committee passed the bill at its April 16 hearing by a 10-0  
          vote.


                         Support and Opposition (4/25/13)

           Support  :  Public Advocates; Urban Habitat.

          Opposition  :  Metropolitan Transportation Commission.