BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 2651 (Gomez) - Greenway easements
          
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          |Version: May 25, 2016           |Policy Vote: GOV. & F. 6 - 0    |
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          |Urgency: Yes                    |Mandate: Yes                    |
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          |Hearing Date: June 20, 2016     |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  AB 2651, an urgency measure, would specify that  
          greenway easements may be established to preserve existing  
          greenways, specify that greenway easements may only be  
          established in an urbanized area, require new greenway easement  
          designations to be consistent with existing restoration efforts,  
          and specify that local agencies must designate easements in the  
          land use element, rather than the open space element of the  
          general plan.


          Fiscal  
          Impact:  
           Unknown net impact on property tax revenues, a portion of  
            which must be backfilled by the state General Fund.  The bill  
            could potentially both expand opportunities for designating  
            greenway easements by authorizing them for preservation of  
            existing greenways in some cases, and reduce opportunities by  
            limiting greenway easements to urbanized areas.  The net  







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            impacts are unquantifiable, but the bill could potentially  
            result in a reduction in property tax revenues, approximately  
            half of which are allocated to schools on a statewide basis.   
            The state General Fund generally backfills schools for any  
            loss in property tax revenues, pursuant to Proposition 98.

           Minor reimbursable mandate costs, if any, for local assessors  
            to revise property tax assessments for properties designated  
            as greenway easements (General Fund).  Any local costs to  
            designate easements in the land use element rather than the  
            open space element of the general plan would not be  
            reimbursable. 


          Background:  Existing law, as enacted by AB 1251 (Gomez), Chap. 639/2015,  
          authorizes certain entities to acquire easements for the purpose  
          of developing greenways along urban waterways.  These "greenway  
          easements" act as enforceable restrictions on the use of  
          property that dedicates the land for the purpose of developing  
          greenways along urban waterways.  Greenway easements are  
          permanent provisions placed into a deed, will, or other legal  
          instrument and are binding on successive owners of the land.   
          Local governments must designate greenway easements in the open  
          space element of the general plan.  Urban waterways are defined  
          as creeks, streams, or rivers that cross developed property or  
          open space where the relevant local agency's planning document  
          designates the land as residential, commercial, or industrial.
          Existing law defines a greenway as a separate path for bikes and  
          pedestrians that must be located within 400 yards of an urban  
          waterway where access to the property has been granted through  
          some sort of agreement with the property owner or operator of  
          any facilities on the land.  Additionally, a greenway must:
                 Contain landscaping that (1) improves rivers and  
               streams, (2) provides flood protection benefits, and (3)  
               incorporates the significance and value of natural,  
               historical, and cultural resources as documented in the  
               local agency's applicable planning document;
                 Provide nearby communities with easy access to the path  
               and include features that allow the use of the path, such  
               as lighting and other public amenities;
                 Meet any design standards for greenways that are set by  
               a relevant local agency's planning documents.

          Existing law defines a conservation easement as an easement or  








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          restriction on land for the purpose of retaining the land  
          predominantly in its "natural, scenic, historical, agricultural,  
          forested, or open-space condition."  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:  
            AB 2651, an urgency measure, would make the following changes  
          to provisions authorizing the designation of greenway easements:
                 Allow greenway easements to be used to preserve existing  
               greenways.

                 Require greenway easements that are used to develop new  
               greenways to be consistent with relevant restoration  
               efforts along the urban waterway, if any.

                 Allow local governments to designate greenways in the  
               land use element of their general plans.

                 Provides that greenways may only include public  
               amenities in "urbanized areas," as defined by the  
               California Environmental Quality Act.




          Staff  
          Comments:  The provisions of this bill are primarily intended to  
          further the intent of AB 1251, which allowed specified nonprofit  
          and state and local government entities to designate greenway  
          easements as recorded enforceable restrictions on the use of  
          those designated lands for specified purposes.  Existing law  
          requires assessors to consider enforceable restrictions when  








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          assessing property values, so the designation of greenway  
          easements can reduce the value of property that contains an  
          easement.
          As noted above, the provisions of AB 2651 both expand  
          opportunities for designating greenway easements by authorizing  
          them for preservation of existing greenways (rather than solely  
          for developing new greenways), as well as limit opportunities  
          for designating new easements by specifying that greenways may  
          only include amenities in urbanized areas.  It is unclear  
          whether the bill will result in an overall net increase in  
          greenway easement designations.  To the extent the bill does  
          result in more greenway easements, AB 2651 could result in a  
          reduction in the assessed value of the property on which the  
          enforceable restriction is designated.  The state General Fund  
          must generally backfill any reductions in property tax  
          allocations to schools.




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