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 --