BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2651 (Gomez) - Greenway easements ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 25, 2016 |Policy Vote: GOV. & F. 6 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 20, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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 AB 2651 (Gomez) Page 1 of ? 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 AB 2651 (Gomez) Page 2 of ? 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 AB 2651 (Gomez) Page 3 of ? 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. -- END --