BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1251 (Gomez) - Greenway Development and Sustainment Act.
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: June 24, 2015          |Policy Vote: GOV. & F. 5 - 0    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: July 13, 2015     |Consultant: Marie Liu           |
          |                                |                                |
           ----------------------------------------------------------------- 


          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  This bill would allow for the creation of a greenway  
          easement, which must be considered when assessing land values  
          for the purposes of property taxation. This bill would also  
          explicitly allow the open-space element of a general plan to  
          include greenways, as defined.


          Fiscal  
          Impact:  
           Unknown costs, at least in the hundreds of thousands of  
            dollars, if not millions, (General Fund) for increased  
            Proposition 98 payments needed to replace reduced local  
            property tax revenues used for schools.
           Cost pressures, likely in the millions of dollars, to the  
            Greenhouse Gas Reduction fund (special) and various special  
            funds for alternative fuels for greenway projects.


          Background:  Each city and county is required under existing law to prepare  







          AB 1251 (Gomez)                                        Page 1 of  
          ?
          
          
          and periodically update a comprehensive, long- range, general  
          plan to guide future decisions. One of the seven required  
          elements is regarding open space. The open space plan may  
          include, among other things, open space for the preservation of  
          natural resources, the managed production of natural resources,  
          outdoor recreation, and public health and safety. (GOV §65560)
          Existing law defines a conservation easement as an easement or  
          restriction on land for the purpose of retaining the land  
          predominantly in its "natural, scenic, historical, agricultural,  
          forested, or open-space condition." (CIV §815.1) A conservation  
          easement may be held by qualified nonprofit organizations, the  
          state or a local government, or a Native American tribe. Similar  
          land restrictions can also be made for scenic and trail purposes  
          or open-space.


          Existing law requires an assessor, when assessing land, to  
          consider the effect upon the value of any enforceable  
          restrictions on the uses of the land, including, a recorded  
          conservation, trail, or scenic easement.  


          Proposed Law: This bill would create a "greenway easement" that  
          is perpetual in duration and nearly identical to the terms and  
          restrictions of conservation easements. "Greenway" would be  
          defined as a pedestrian and bicycle, nonmotorized vehicle  
          transportation, and recreational travel corridor that meets  
          specific requirements, such as that it is adjacent to an urban  
          waterway, incorporates the significance and value of natural,  
          historical, and cultural resources, and is publically  
          accessible. The greenway may incorporate appropriate lighting,  
          public amenities, art, and other features that are consistent  
          with the local agency's planning document. A recorded greenway  
          easement would be required to be considered by an assessor in  
          the assessment of land values.


          This bill would explicitly state that a local government's  
          open-space element in the general plan may include open space  
          for the preservation of greenways as a natural resource.


          This bill would make several findings and declarations,  
          including that in regards to the development of a greenway along  








          AB 1251 (Gomez)                                        Page 2 of  
          ?
          
          
          the Los Angeles River and its tributaries, developing a greenway  
          that promotes sustainability and acts as a transportation  
          corridor, a city or county may apply for "alternative fuels  
          funding, greenhouse gas reduction funds, and other land use  
          funds, as appropriate." 




          Related  
          Legislation:  AB 1922 (Gomez, 2014) would have expanded the  
          types of nonprofits who can acquire and hold conservation  
          easements, defined greenways as a type of open space for the  
          purpose of an open-space element of a general plan, and would  
          have made various definitions and findings and declarations. AB  
          1922 was held on suspense in the Senate Appropriations  
          Committee.


          Staff  
          Comments:  This bill creates a new type of easement that would reduce a  
          property's value as a use restriction, and will thereby reduce  
          local property tax revenues. Loss in local property tax revenues  
          have state fiscal implications as the state guarantees minimum  
          levels of school funding under Proposition 98. In essence, loss  
          property tax revenues that would have been used for schools are  
          backfilled by the state on a one-to-one basis. Given that  
          property values around urban waterways can be high, staff  
          believes the statewide costs to compensate local schools for the  
          loss of local property tax revenues as a result of the easements  
          could easily be in the hundreds of thousands of dollars, if not  
          millions. 
          These would only be new costs to the extent that a greenway  
          easement would not have qualified as a conservation easement.  
          While it is unclear the scenario in which a greenway easement  
          could not also be considered a conservation easements, staff  
          presumes that such a scenario would exist otherwise creating new  
          type of easement would be unnecessary. And creating a new type  
          of easement is one of the main purposes of the bill.


          This bill also contains findings and declarations that state  
          that a city or county may apply for alternative fuels funding or  
          greenhouse gas reduction funds, as appropriate. The state has  








          AB 1251 (Gomez)                                        Page 3 of  
          ?
          
          
          used the Greenhouse Gas Reduction Fund for purposes including  
          sustainable communities and clean transportation. Some of the  
          activities associated with the development of greenways may be  
          eligible for these funds. However, this bill would add cost  
          pressures to fund the other activities that would not otherwise  
          be funded. In regards to the alternative fuels funding, staff is  
          not aware of alternative fuels funding being used for greenways  
          under the existing programs. Therefore, the use of alternative  
          fuel funding for greenways would be an expansion of existing  
          uses and thus places cost pressures on those funds. 



          This bill contains codified findings and declarations.  In the  
          interest of code clarity and efficiency,  staff recommends  this  
          bill be amended to place the findings and declarations in an  
          uncodified section of the bill.


                                      -- END --