BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 792 (DeSaulnier) - Bay Area regional planning.
          
          Amended: April 22, 2013         Policy Vote: T&H 10-0; G&F 7-0
          Urgency: No                     Mandate: Yes
          Hearing Date: May 23, 2013      Consultant: Mark McKenzie
          
          SUSPENSE FILE. 

          
          Bill Summary: SB 792 would require the San Francisco bay area's  
          "joint policy committee" (JPC) to prepare a plan for  
          consolidating the functions common to its member agencies and  
          develop and adopt a public outreach and participation plan for  
          adoption of the regional organization plan, as specified.  The  
          bill would also require the inclusion of additional elements in  
          the region's Sustainable Communities Strategy (SCS), and assign  
          responsibility for those elements to member entities of the JPC.  
           In addition, the bill would require the San Francisco Bay  
          Conservation and Development Commission (BCDC) to relocate to a  
          building that will be occupied by other members of the JPC.

          Fiscal Impact: 
              Potential reimbursable state mandate costs related to  
              duties imposed on the JPC and other regional government  
              member agencies.  It is unclear whether the JPC or other  
              regional entities upon whom the state-mandated program is  
              imposed would have standing to bring a claim before the  
              Commission on State Mandates (see staff comments below).  If  
              a successful claim were filed, General Fund reimbursements  
              could be significant.

              Unknown, potentially significant costs to the BCDC to draft  
              an element pertaining to sea level rise in the SCS (General  
              Fund).

              One-time costs to the BCDC, likely in the hundreds of  
              thousands, to prepare a consolidation plan in 2014 (General  
              Fund).

              Unknown, primarily one-time costs to the BCDC to relocate  
              to a specified location (General Fund).









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          Background: 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), the San Francisco  
          Bay Conservation and Development Commission (BCDC), and the San  
          Francisco Bay Region Regional Water Quality Control Board.   
          While each entity has a unique stand-alone function, existing  
          law requires these entities to cooperate in coordinating  
          regional planning, including the development of regional  
          planning documents such as regional transportation plans, the  
          regional housing needs assessment, the Ozone Attainment Plan,  
          the Clean Air Plan, and the San Francisco Bay Plan.  These  
          coordinated efforts are performed through a joint policy  
          committee (JPC), which was originally formed voluntarily for  
          regional coordination between MTC and ABAG, but later codified  
          to include members of each of the nine counties in the region  
          and participation of BAAQMD and BCDC with the passage of SB 849  
          (Torlakson), Chapter 791 of 2004, and AB 2094 (DeSaulnier),  
          Chapter 442 of 2008.

          SB 375 (Steinberg) Chap 728/2008, requires the Air Resources  
          Board (ARB) to provide each region that has a metropolitan  
          planning organization (MPO) with a greenhouse gas emission  
          reduction target for the automobile and light truck sector for  
          2020 and 2035, respectively.  Each MPO, in turn, is required to  
          include within its regional transportation plan a sustainable  
          communities strategy (SCS) designed to achieve the ARB targets  
          for greenhouse gas emission reduction.  Each MPO must submit its  
          SCS to ARB for review.  ARB must accept or reject the MPO's  
          determination that the implementation of a submitted SCS  
          submitted would achieve the greenhouse gas emission reduction  
          targets.

          Proposed Law: SB 792 would require regional consolidation  
          planning by the member agencies of the JPC, place additional  
          requirements on these entities with respect to the SCS, and  
          require the JPC to conduct public outreach and participation  
          efforts in furtherance of adopting a regional organization plan.  
           Specifically, this bill would:
                 Require the next adopted SCS to include consideration of  
               local and regional air quality, sea level rise, priority  
               infrastructure needs, and the goals and policies related to  
               economic development opportunities and specified social  








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               equity goals. 
                 Assign responsibility for these additional elements of  
               the SCS to ABAG, MTC, BAAQMD, and BCDC, as specified.
                 Require the member entities of the JPC to prepare a plan  
               for consolidating common functions that includes specified  
               elements, and submit the plan to each respective agency's  
               board by December 31, 2014
                 Require JPC member entities to report to the Legislature  
               on the adoption and implementation of the plan by December  
               31, 2015.
                 Require the JPC to develop and adopt public and  
               community outreach and inclusive participation policies  
               related to the regional organization plan, as specified.
                 Require the JPC to follow the Ralph M. Brown Act's open  
               meeting laws.
                 Require the JPC to appoint an advisory committee on  
               economic competitiveness comprised of members of the  
               business community, education interests, labor, local  
               government, and specified community organizations.
                 Require the JPC, in consultation with the advisory  
               committee, to adopt goals and policies related to the  
               inclusion of economic development opportunities in the SCS.
                 Require MTC to report biennially to the Legislature and  
               public on progress in implementing the new elements of the  
               SCS specified in this bill.
                 Require the BCDC to relocate to 390 Main Street in San  
               Francisco.

          Related Legislation: SB 1149 (DeSaulnier), which died in this  
          Committee last year without a hearing, would have created a  
          regionally-elected Bay Area Regional Commission to improve  
          coordination among regional agencies.

          Staff Comments: The California Constitution generally requires  
          the state to reimburse local agencies for costs associated with  
          state-mandates that impose a new program or higher level of  
          service on local agencies.  Existing law specifies that cities,  
          counties, K-12 school districts, county offices of education,  
          and community college districts are local government entities  
          eligible to claim reimbursement.  Special districts, joint  
          powers authorities, and other prospective claimants must meet  
          additional criteria to qualify for reimbursement: (1) the  
          claimant's interest must be direct; (2) the claimant must be  
          subject to the tax and spend limitations of the California  








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          Constitution, although the claimant may serve in a  
          representative capacity for costs incurred by eligible local  
          entities (e.g. a JPA may have standing to claim reimbursement on  
          behalf of county members); and (3) there must be an expenditure  
          of local government proceeds of taxes and not just a reduction  
          in those revenues.

          This bill places new duties on regional entities and the rather  
          unique JPC, but not directly on local agencies that normally  
          have standing to bring a claim for reimbursement to the  
          Commission on State Mandates.  Legislative Counsel has indicated  
          that this bill creates a state-mandated local program by  
          imposing new duties on the JPC.  It does not appear, however,  
          that the JPC has standing to bring a claim before the Commission  
          for state reimbursement.  As stated above, the JPC was  
          originally a voluntary partnership established by MTC and ABAG,  
          and later statutorily required to add BCDC and the BAAQMD, so  
          eligible local government claimants are several steps removed  
          from the mandates imposed by this bill.  To the extent that the  
          requirements of the bill indirectly result in increased  
          expenditures of proceeds of taxes by those underlying local  
          government entities, this bill could theoretically create a  
          reimbursable state-mandated local program, but there is no known  
          similar precedent.  The case noted above in which a JPA may have  
          standing in a representative capacity would be the closest  
          example of standing before the Commission.  If the Commission  
          were to accept such a claim as valid, this bill could result in  
          unknown state-reimbursable costs to the General Fund.

          The BCDC, as a state governmental agency, would incur costs as a  
          result of this bill.  Specifically, the bill specifies that the  
          BCDC would be responsible for incorporating an element  
          pertaining to sea level rise in the Sustainable Communities  
          Strategy.  The BCDC has conducted some preliminary work on the  
          issue of climate change and how sea level rise could impact the  
          San Francisco bay area, and the Commission is actively working  
          on scoping tasks needed to address regional sea level rise  
          adaptation planning in the next SCS.  The fiscal impacts of  
          incorporating sea level rise into the SCS, as required by the  
          bill, are unknown at this time, but could be significant.

          The bill would also require BCDC, and other JPC member entities,  
          to prepare a consolidation plan that includes a number of  
          specified elements, which must be submitted to each respective  








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          agency's board by December 31, 2014.  Each entity must also  
          report to the Legislature on the adoption and implementation of  
          the plan within the subsequent year.  These costs are also  
          unknown at this time, but staff estimates these duties could  
          result in costs to the BCDC in the hundreds of thousands in  
          2014.

          The bill also requires BCDC to relocate to 390 Main Street in  
          San Francisco, which is a building that will be occupied by  
          other regional partners.  Staff notes that the Department of  
          General Services has previously conducted a cost-benefit  
          analysis of this proposal, but determined the move to be  
          cost-prohibitive.  Details of this analysis are not available at  
          this time, so fiscal impacts related to the move are unknown.