BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2444| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2444 Author: Eduardo Garcia (D), et al. Amended: 8/16/16 in Senate Vote: 27 - Urgency SENATE NATURAL RES. & WATER COMMITTEE: 6-2, 6/28/16 AYES: Pavley, Allen, Hertzberg, Hueso, Jackson, Monning NOES: Stone, Vidak NO VOTE RECORDED: Wolk SENATE GOVERNANCE & FIN. COMMITTEE: 4-1, 6/29/16 AYES: Hertzberg, Beall, Hernandez, Lara NOES: Moorlach NO VOTE RECORDED: Nguyen, Pavley SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 56-18, 6/23/16 - See last page for vote SUBJECT: California Parks, Water, Climate, and Coastal Protection and Outdoor Access For All Act of 2016 SOURCE: Author DIGEST: This bill enacts the California Parks, Water, Climate, and Coastal Protection and Outdoor Access For All Act of 2016, which, if approved by the voters, authorizes issuance of $2 billion in State General Obligation bonds to finance parks, water, climate adaptation, coastal protection, and outdoor access programs. AB 2444 Page 2 ANALYSIS: Existing law: 1) Authorizes the Legislature to pass legislation, by a 2/3 vote, to place a proposed general obligation bond measure before the voters on the statewide ballot, to authorize the sale of bonds to finance various state purposes. General obligation bonds have been one of the primary methods voters have used to fund the acquisition and improvement of park lands, open space, and wildlife areas; water conservation and infrastructure projects, and related purposes. 2) Ratified, by a vote of the people, The California Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Act of 2002 (Proposition 40), a legislative ballot measure approved in 2002, which authorized $2.6 billion in bond expenditures for parks and other resource related purposes, which was the last parks-only bond measure. 3) Ratified, by a vote of the people, The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Act of 2006 (Proposition 84), an initiative measure approved by in 2006, that authorized bond expenditures of $5.4 billion, of which approximately $875 million was for parks. 4) Authorizes general obligation bonds which the public agency pays out of general revenues and are guaranteed by its full faith and credit. This bill: 1) States legislative findings and declarations regarding California's parks, natural resources and outdoor opportunities, and the scale of unmet need and demand for, and lack of equal access to, those resources and activities. It contains findings and declarations regarding the benefits AB 2444 Page 3 of investments for these purposes to public health, and to state and local economies. 2) States that it is the intent of the people of the state that: a) Public investments authorized by this bill provide public benefits and address the most critical statewide needs and priorities; b) Priority is given to projects that leverage other funding sources; c) Projects receiving funding include signage informing the public of the bond investments; d) Administering entities be encouraged when developing program guidelines for urban recreation and habitat projects, to give favorable consideration to projects that both provide urban recreation and protect or restore natural resources, to the extent practicable, and authorizes entities to pool funding for such purposes. 3) Includes a number of general provisions that apply to all of the articles included in the Act, including: a) Allows up to 10% of funds in each category to be used for planning and monitoring. Planning funds for projects in disadvantaged communities can exceed the 10% if needed. b) Requires at least 20% of funds in each article to be allocated to severely disadvantaged communities. c) Allows up to 10% of funds to go toward technical assistance. Technical assistance may exceed 10% for disadvantaged communities if needed. d) Requires agencies administering the bond to develop project solicitation and evaluation guidelines, to conduct 3 public meetings, and to publish draft guidelines on the Internet. e) Requires the Department of Finance to provide for an independent audit of expenditures. f) Requires projects that use California Conservation Corps services or certified community conservation corps to be given preference for grants where feasible. g) Authorizes projects that include water efficiencies, AB 2444 Page 4 stormwater capture, or carbon sequestration features in the project design to be given priority for grant funding. h) Authorizes the Legislature to enact legislation necessary to implement programs funded by the bond. 4) Makes available in Article 2 an unspecified amount for creation and expansion of safe neighborhood parks in park-poor communities, in accordance with the Statewide Park Development and Community Revitalization Act of 2008 competitive grant program [AB 31, De León, Chapter 623, Statutes of 2008]. 5) Makes available in Article 3 an unspecified amount for local and regional outdoor spaces as follows: a) An unspecified amount for local park rehabilitation and improvement grants to local governments on a per capita basis. Requires a 20% local match unless the entity is a disadvantaged community. Describes the formula to be used to allocate the per capita funds between cities, districts, counties, and regional park districts, based on population. b) An unspecified amount for grants to cities and districts of less than 200,000 population in urbanized counties of less than 500,000 total population. A 20% match is required except for disadvantaged communities. c) An unspecified amount is to go to cities and districts that are not regional park districts on a per capita basis except each jurisdiction receives a minimum of an unspecified amount. d) 40% of the unspecified amount in this article is to go to counties and regional park districts on a per capita basis. 6) Makes available in Article 4 an unspecified amount in funding for state parks, as follows: a) An unspecified amount for enterprise projects for new user experiences and revenue generation projects. b) An unspecified amount for grants to local agencies that operate state parks for deferred maintenance. A 25% AB 2444 Page 5 match is required except for disadvantaged communities. c) An unspecified amount for infrastructure repairs at state parks through new regional programs at state parks with unspecified amounts in the Central Valley, Central Coast in Ventura County, East Bay, Inland Empire, and San Diego. d) An unspecified amount for direct distribution by the department to its existing 12 districts to address historic underinvestment. 7) Makes available in Article 5 an unspecified amount for the California Natural Resources Agency for Trails and Waterfront Greenway investments. These funds would be for competitive grants to local agencies, conservancies, tribes, and nonprofit organizations for trails and non-motorized access to parks, waterways, or other natural environments, to encourage health-related commuting. Authorizes 25% of the total for this program to be made available for innovative transportation programs for disadvantaged youth. 8) Makes available in Article 6 an unspecified amount for competitive grants for rural recreation and tourism to rural entities eligible for under criteria established in the Roberti, Z-Berg, Harris grants program. 9) Makes available in Article 7 an unspecified amount for clean water and coastal programs including urban creeks and requires 60% of the funds to be expended in the area of the Los Angeles River upstream of the northernmost boundary of the City of Vernon, and 40% of the funds expended for project grants in the remainder of the Los Angeles River area. 10)Designates in Article 7 unspecified amounts to the following: a) The Lower American River Conservancy Program or the American River Parkway Plan; b) The Santa Ana River program of the Coastal Conservancy; and c) The Urban Streams Restoration program. The bill specifies that projects serving disadvantaged AB 2444 Page 6 communities must be given funding priority. 11)Makes available in Article 7.5 unspecified proposed funding for state conservancies, including the Baldwin Hills Conservancy, the Tahoe Conservancy, the Coachella Conservancy, the Sacramento-San Joaquin Delta Conservancy, the Salton Sea Authority, the San Diego River Conservancy, the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, the San Joaquin River Conservancy, the Santa Monica Mountains Conservancy, the Sierra Nevada Conservancy, and the State Coastal Conservancy of which an unspecified amount would be allocated to the Bay Area program. There is a declaration of legislative intent to increase funding for conservancies by an unspecified amount. 12)Makes available in Article 8 unspecified expenditures for climate preparedness and habitat resiliency including: a) An unspecified amount for climate adaptation and resiliency projects that improve a community's ability to adapt to climate change, including projects to improve and protect coastal and rural economies, agricultural viability, wildlife corridors or habitat, recreational opportunities, or drought tolerance and water retention. b) An unspecified amount to the Wildlife Conservation Board (WCB) for wildlife corridors and open space, for climate change adaptation, for species habitat, and for existing open space corridors and trail linkages of which an unspecified amount above would go to the implementation of natural community conservation plans and $10 million would go to nonprofit wildlife rehabilitation facilities. c) An unspecified amount to the Climate Resilience Account to assist local communities and commercial fisheries adapt to climate change, address ocean acidification, sea level rise, or habitat protection along the Pacific flyway. d) An unspecified amount for projects that improve agricultural and open-space soil health, to improve AB 2444 Page 7 carbon soil sequestration, erosion control, water quality, and water retention. e) An unspecified amount for forest projects to reduce fuel loading, and to invest in forest management practices that increase the resilience of forests to wildlife and climate change. These funds would be administered jointly by the Department of Forestry and the Sierra Nevada Conservancy, with an unspecified amount available to the Tahoe Conservancy. f) An unspecified amount to the Department of Fire and Forestry for existing urban forestry programs. g) An unspecified amount to the California Conservation Corps, with half of that available as grants to local conservation corps, for projects in parks, forests, and stream and river restoration. h) An unspecified amount to the California Natural Resources Agency for grants to local agencies, tribes, and others for restoration protection and acquisition of natural, cultural, and historic sites. Also eligible are projects to repurpose former fossil fuel power plants as permanent open space and projects that enhance natural resource protections in those areas of the state not within the jurisdiction of a state conservancy. A match of 20 percent is required. i) An unspecified amount to the Ocean Protection Council. j) States legislative intent to increase funding for article by an unspecified amount. 13)Adds Article 8.5 regarding advance payments for water projects for nonprofit organizations or disadvantaged communities. 14)Includes related fiscal provisions regarding sales of bonds and implementation of the Act pursuant to the State General Obligation Bond Law. Establishes a finance committee for the bond composed of the Director of Finance, the Treasurer, and AB 2444 Page 8 the Controller. 15)Requires the Secretary of State to submit the bond act to the voters at the November 2016 statewide general election, and includes related instructions regarding preparing ballot pamphlets and statements. Provides that this act shall take effect upon approval by the voters. 16)Includes an urgency clause providing that it is necessary that this bill take effect immediately in order to fund a California parks, water, climate, and coastal protection and outdoor access for all programs at the earliest possible date. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to Senate Appropriations Committee: Unknown significant costs, in the low billions of dollars. A total of approximately $735,000,000 in interest per billion in bonds issued, assuming 30-year maturity at 4 percent interest rate. (General Fund) Unknown, but potentially significant, costs to the State Treasurers Office and administering agencies (bond funds). Nearly $3 million (General Fund) to the Secretary of State for printing and postage for a supplemental ballot in the 2016 election. This bill missed the deadline for printing for this election. SUPPORT: (Verified8/16/16) Association of California Water Agencies Audubon California Azul AB 2444 Page 9 Bay Area Open Space Council Big Sur Land Trust Bolsa Chica Land Trust Bronzan Consulting Calcoast California Association of Local Conservation Corps California Association of Museums California Association of Park & Recreation Commissioners & Board Members California Association of Park Districts California Association of Recreation and Park Districts California Council of Land Trusts California Center for Public Health Advocacy California Coastal Protection Network California League of Conservation Voters California Native Plant Society California Park & Recreation Society California ReLeaf California Special Districts Association California State Parks Foundation California Tahoe Alliance California Urban Streams Partnership California Wilderness Coalition Carmichael Recreation and Park District City of American Canyon Parks and Recreation Department City of Chino City of Dublin City of Fountain Valley City of Imperial City of Morgan Hill City of Poway City of Torrance City of Tustin Parks & Recreation Department City of Lafayette City of Milpitas City of Montebello City of Portola City of Selma City of Westminster City of Victorville Children's Defense Fund County of Placer AB 2444 Page 10 Consumnes Community Services District Park & Recreation Department Defenders of Wildlife Desert Recreation District Desert Valley Builders Association East Bay Regional Park District El Cerrito Recreation El Dorado Irrigation District Fathers & Families of San Joaquin Friends of Harbors, Beaches, and parks Fulton-El Camino Recreation & Park District Golden Gate National parks Conservancy Greater Vallejo Recreation District Hesperia Recreation & Park District Hetch Hetchy Regional Water System Hills for Everyone John Muir Land Trust Laguna Greenbelt, Inc Land Paths Land Trust of Santa Cruz County Latino Outdoors Livermore Area Recreation and Park District Mammoth Lakes California Marin Agricultural Land Trust Marin County Parks Midpeninsula Regional Open Space District Mono Lake Community Napa County Regional Park and Open Space District Sierra Business Council Orangevale Recreation & Park District Outdoors Access for All Pacific Forest Trust Paradise Recreation & Park District Pathways for Wildlife Peninsula Open Space Trust Pleasant Hill Recreation and Park District Policy Link Rails to Trails Conservancy Rancho Simi Recreation and Park District San Francisco Parks Alliance Santa Clara County Board of Supervisors Santa Clara Valley Open Space Authority AB 2444 Page 11 Save Mount Diablo Save the Redwoods League Sierra Business Council Sierra Club California Sierra Institute for Community and Environment Sierra Nevada Alliance Sierra Water Workgroup Solano Land Trust Sonoma County Agricultural Preservation and Open Space District Sonoma County Regional Parks Sonoma County Water Agency Sonoma Land Trust State Park Partners Coalition Tahoe Mountain Sports The City Project The Greenlining Institute The Nature Conservancy The Trust for Public Land TODEC Legal Center TreePeople United Ways of California Watershed Conservation Authority OPPOSITION: (Verified8/16/16) Howard Jarvis Taxpayers Association ARGUMENTS IN SUPPORT: The author notes that to maintain a high quality of life for California's growing population the state requires a continuing investment in parks, recreation facilities, and protection of the state's natural and historical resources. It has been 14 years since California last approved a "true park bond." The 2008 economic downturn had a disproportionate impact on local, regional and state park infrastructure. There is a high unmet demand for park investment, as witnessed by the 8-1 ratio of grant application requests vs. available grant dollars for park grants awarded under the AB 31 Statewide Parks Program. Demand has been particularly high in both urban and rural disadvantaged communities where many still lack access to safe parks, trails, AB 2444 Page 12 and recreation areas. The author notes that according to the Statewide Comprehensive Outdoor Plan of 2015 (SCORP), 38% of Californians still live in areas with less than 3 acres of parkland per 1,000 population, a recognized standard for adequate parks, and 9 million people do not have a park within a half mile of their home. The SCORP action plan highlights the need for increasing park access to residents in underserved communities by encouraging park development within a half mile of park deficient neighborhoods, creating new trails and greenways to provide active transportation corridors for commuting, and expanding transportation opportunities to larger parks. The author also notes the findings of the Parks Forward Commission which highlighted the need to prioritize protection of natural and cultural resources for future generations, expand access to parks for underserved communities and younger generations, and to address state park deferred maintenance. Investing in parks and trails will help ensure all Californians have access to safe places to exercise and recreate. Additionally, continued investment in the state's natural resources and greening of urban areas will help mitigate the impacts of climate change and provide access to natural resources for future generations. The author also emphasizes that a priority throughout the bond will be to address the needs of park-poor and severely disadvantaged communities. There is a huge list of supporters of this measure. The general theme is to support public investment in local and state parks and resource protection that has not been able to be achieved because of the recession and because earlier bond funds have largely been depleted. There is also widespread support for the emphasis on increasing access to parks by disadvantaged communities and especially disadvantaged youth. ARGUMENTS IN OPPOSITION: The Howard Jarvis Taxpayers Association opposes increasing the state's indebtedness and questions whether improvements in parks will endure for the life of the bond. ASSEMBLY FLOOR: 56-18, 6/23/16 AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina AB 2444 Page 13 Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine, Lopez, Low, Maienschein, McCarty, Medina, Mullin, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Wilk, Williams, Wood, Rendon NOES: Travis Allen, Bigelow, Brough, Dahle, Beth Gaines, Grove, Harper, Jones, Kim, Linder, Mathis, Mayes, Melendez, Obernolte, Patterson, Steinorth, Wagner, Waldron NO VOTE RECORDED: Achadjian, Chang, Chávez, Gallagher, Nazarian, Olsen Prepared by:William Craven / N.R. & W. / (916) 651-4116 8/17/16 9:25:14 **** END ****