BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |SB 1374                          |Hearing    | 8/29/16 |
          |          |                                 |Date:      |         |
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          |Author:   |Lara                             |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |8/19/16                          |Fiscal:    |Yes      |
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          |Consultant|Favorini-Csorba                                       |
          |:         |                                                      |
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               The Lower Los Angeles River Recreation and Park District



          Authorizes the formation of the Lower Los Angeles River  
          Recreation and Park District.


           Background 

           Local Agency Formation Commissions. The Cortese-Knox-Hertzberg  
          Local Government Reorganization Act of 2000 (CKH Act) controls  
          how local officials change the boundaries of cities and special  
          districts, putting local agency formation commissions (LAFCOs)  
          in charge of the proceedings.  LAFCOs are tasked with ensuring  
          that services are effectively and efficiently delivered, and  
          local governments can only exercise their powers and provide  
          services where allowed to by LAFCO.  In order to accomplish  
          these goals, LAFCOs preside over boundary changes that include  
          the formation of new cities and special districts, modifications  
          of existing boundaries, and dissolutions of unsustainable  
          special districts.  The CKH Act describes the procedures that  
          local governments and LAFCOs must follow when approving a  
          boundary change, such as specifying the contents of petitions  
          for the formation of new special districts.

          Recreation and Park Districts. The Recreation and Park District  
          Law is the principal act that governs the 95 recreation and park  
          districts in California.  As a special district, recreation and  
          park districts are subject to LAFCO jurisdiction and are subject  







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          to the proceedings contained in the CKH Act.  Current law  
          provides two means for initiating the formation of a recreation  
          and parks district: (1) by petition signed by 25 percent of the  
          registered voters in the proposed district's territory, or (2)  
          by resolution of application by a city or county that contains  
          the territory proposed to be included in the district.  The  
          petition or resolution must be submitted to LAFCO.  

          The petition or resolution must meet all requirements for such  
          petitions in the CKH Act and specify the methods by which the  
          district will be financed, the proposed name for the district,  
          the method of selecting the initial board of directors, and  
          whether the district will have eminent domain authority.  Upon  
          receipt of the petition or resolution, the LAFCO must conduct  
          proceedings to consider the formation of the district.  The  
          LAFCO may not approve a proposal unless the commission  
          determines that the proposed district will have sufficient  
          revenues to carry out its purpose.

          Each recreation and parks district is governed by a five-member  
          board of directors.  A district's board may be elected by voters  
          or appointed by the legislative bodies of the cities and  
          counties that make up the district's territory.  If appointed,  
          the seats must be allocated proportionally based on the  
          population that falls within the proposed boundaries of the  
          district in each city and in the unincorporated territory of the  
          relevant county or counties, as long as each city and the county  
          appoints at least one member.  City councils and boards of  
          supervisors may appoint their own members to the district's  
          board.  Following the initial appointment, board members may be  
          reorganized according to a process laid out in the Recreation  
          and Park District Law.

          A recreation and park district may exercise numerous powers,  
          including to organize, promote, conduct, and advertise community  
          recreation programs and to acquire, construct, improve,  
          maintain, and operate recreation facilities. These districts  
          have several means of funding their operations, including  
          borrowing money and incurring indebtedness, levying fees,  
          special taxes, and benefit assessments, as well as selling  
          general obligation bonds and forming Mello-Roos community  
          facilities districts.  A district may also adopt rules,  
          regulations, and ordinances governing the district's operations,  
          including rules and regulations for the administration and use  








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          of recreation facilities.

          Los Angeles River Restoration. The Los Angeles River is entirely  
          within the County of Los Angeles (County).  The approximately 32  
          miles of the River upstream of the City of Vernon is considered  
          to be the Upper River and is within the bounds of the City of  
          Los Angeles.  The approximately 19 miles of the Lower River  
          include the Cities of Vernon, Commerce, Maywood, Bell, Bell  
          Gardens, Cudahy, South Gate, Lynwood, Compton, Paramount, Carson  
          and Long Beach.  The Lower River is fed by the tributaries  
          Compton Creek and Rio Honda, which is bordered by the Cities of  
          Commerce, Downey, Montebello, and Pico Rivera. 

          The areas surrounding the River are widely considered to have  
          relatively few open space and park areas.  Particularly along  
          the Lower River, industrial activity and railyards immediately  
          adjacent to the River serve to isolate the River from the  
          surrounding communities.  

          In the early 1990s, community activism over turning a railyard  
          adjacent to the River into open space coincided with the County  
          beginning a process that - after considerable input from  
          stakeholders and community outreach - resulted in the County's  
          Los Angeles River Master Plan in 1996.  The Master Plan  
          described how economic growth could be spurred along the River  
          in the County through zoning changes and the development of open  
          space, recreational, cultural, artistic, educational, and other  
          opportunities.  

          The City of Los Angeles' Los Angeles River Revitalization Master  
          Plan was released in 2007.  Continuing the long-term goals of  
          the County's Master Plan, the Revitalization Master Plan also  
          promoted the revitalization of the River as a multi-benefit  
          solution to addressing and enhancing water quality and flood  
          control while enabling safe access to the River and restoring a  
          functional river ecosystem.  The City's Revitalization Master  
          Plan focused on the Upper River.  The Lower LA River does not  
          have such a plan.  However, AB 530 (Rendon, 2015) established  
          the Lower Los Angeles River Working Group, which is tasked with  
          developing a revitalization plan for the Lower River watershed  
          and the communities through which it passes by March 1, 2017.  

          Some elected officials want to create a park district to assist  
          in the funding and development of parks along the Lower Los  








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          Angeles River.


           Proposed Law

           Senate Bill 1374 authorizes the formation of the Lower Los  
          Angeles River Recreation and Park District (District) pursuant  
          to the CKH Act and the Recreation and Park District Law until  
          January 1, 2019, and establishes the governance and powers for  
          the District.  

          SB 1374 requires the District's initial board of directors to  
          consist of no more than 13 members, appointed by cities that  
          border the LA River, its tributaries, and Los Angeles County.   
          Specifically:

                 The city councils of the Cities of Vernon, Maywood,  
               Bell, Bell Gardens, Cudahy, South Gate, Lynwood, Compton,  
               Paramount, and Long Beach may each appoint one  
               representative.

                 The Los Angeles County Board of Supervisors may appoint  
               two public members and must include at least one  
               representative of a nonprofit organization serving the  
               Lower Los Angeles River region.  

                 The city councils of the Cities of Commerce, Downey,  
               Montebello, and Pico Rivera may jointly appoint one  
               representative, who serves for a two-year fixed term.  

          Except for the jointly appointed board member, board members  
          serve at the pleasure of their appointing legislative body, and  
          the board may be reorganized as provided in the Recreation and  
          Park District Law.

          SB 1374 authorizes the District to exercise the powers and  
          financing authority provided under existing law to recreation  
          and park districts, subject to review and approval of the Los  
          Angeles County Local Agency Formation Commission (LAFCO).  SB  
          1374 also requires the District, in coordination with the Lower  
          Los Angeles River Working Group and the San Gabriel and Lower  
          Los Angeles Rivers and Mountains Conservancy, to:

                 Promote the development of open space and parks along  








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               the Lower Los Angeles River;

                 Identify funding and resources to promote the  
               revitalization of the Lower Los Angeles River and open  
               spaces along the river, for the benefit and enjoyment of  
               local communities, and;

                 Acquire, construct, improve, maintain, and operate parks  
               and open space along the Lower Los Angeles River.  


           State Revenue Impact

           No estimate.


           Comments

           1.  Purpose of the bill  .  Access to parks and open space is  
          linked to numerous benefits for the public, such as improved air  
          quality, increased exercise activities, reduced obesity rates,  
          improved mental health, reductions in urban heating effects, and  
          lower greenhouse gas emissions.  Yet many people of color and  
          people who live in low income communities lack access to parks.   
          This problem is particularly pronounced in southern Los Angeles,  
          where numerous studies have found that residents along the Lower  
          LA River are disproportionally impacted by poor air quality and  
          lack access to recreational opportunities and outdoor park  
          space.  One obstacle to enhancing access to parks for these  
          communities is a lack of funding.  SB 1374 authorizes the  
          creation of the Lower Los Angeles River Recreation and Park  
          District with the authority to levy fees, taxes, or assessments  
          to fund parks along the Lower LA River.  By providing access to  
          funding and a single governmental body that represents affected  
          cities and counties along the Lower LA River and possesses  
          revenue-raising authority, this bill will ensure that residents  
          in those areas have access to the benefits that many other  
          Californians enjoy.  

           2.  Local needs, local solutions  .  SB 1374 authorizes the  
          creation of a new recreation and parks district.  However,  
          current law provides multiple means by which local governments  
          may be formed to raise funds for parks without any State action.  
           First, LAFCOs may create park districts and define their  








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          boundaries.  Second, the Joint Exercise of Powers Act allows two  
          or more public agencies to enter an agreement to jointly  
          exercise any power held in common by the parties to the  
          agreement, including the ability to impose taxes, fees, and  
          assessments.  Sometimes an agreement creates a new, separate  
          government called a joint powers authority (JPA).  JPAs  
          establish their own governance structure, affording local  
          governments flexibility in how to apportion representation among  
          the JPA's members.  Both the LAFCO process and the formation of  
          a JPA allow local governments to meet their unique needs while  
          considering local conditions-without Sacramento's involvement.   
          The Committee may wish to consider the precedent set by  
          authorizing the creation of new special districts when similar  
          bodies may already be created through actions at the local  
          level.

          3.  Related legislation  .  AB 2444 (Garcia), which the Committee  
          approved by a vote of 4-1 at its June 29, 2016 hearing, enacts  
          the California Parks, Water, Climate, and Coastal Protection and  
          Outdoor Access For All Act of 2018.  If approved by the voters  
          at the June 5, 2018 statewide primary election, the act  
          authorizes issuance of $3.5 billion in General Obligation bonds  
          to finance parks, water, climate adaptation, coastal protection,  
          and outdoor access programs.  Among other things, AB 2444 would  
          allocate $995 million for the creation and expansion of safe  
          parks in park-poor neighborhoods and an additional $187.5  
          million for multi-benefit greening projects in urbanized areas  
          along waterways.  If approved, the District (as well as the  
          local governments represented on its board) would be eligible to  
          receive funding from this bond.  AB 2444 is pending in the  
          Senate Rules Committee.

          4.  Mandate  .  The California Constitution generally requires the  
          state to reimburse local agencies for their costs when the state  
          imposes new programs or additional duties on them.  SB 1374  
          authorizes the creation of a district that may enact rules and  
          regulations, violations of which are a misdemeanor.  By creating  
          a new crime, SB 1374 creates a new state-mandated program.  But  
          the bill disclaims the state's responsibility for reimbursing  
          local governments for enforcing these new crimes.  That's  
          consistent with the California Constitution, which says that the  
          state does not have to reimburse local governments for the costs  
          of new crimes (Article XIIIB, 6[a] [2]).









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          5.  Special legislation  .  The California Constitution prohibits  
          special legislation when a general law can apply (Article IV,  
          §16).  SB 1374 contains findings and declarations explaining the  
          need for legislation that applies only to the Lower Los Angeles  
          River. 

          6.  New bill, prior votes not relevant  . As passed by the Senate,  
          SB 1374 contained provisions relating to San Gabriel and Lower  
          Los Angeles Rivers and Mountains Conservancy.  The Senate  
          Governance & Finance Committee never heard that version of the  
          bill.  The June 16 amendments deleted SB 1374's contents and  
          inserted the current language relating to the Lower Los Angeles  
          River Recreation and Park District.


           Assembly Actions

           Assembly Water, Parks, and Wildlife Committee:    11-4
          Assembly Local Government Committee:              5-3
          Assembly Appropriations Committee:                11-3
          Assembly Floor:                                   57-20

           Support and  
          Opposition   (8/24/16)


           Support  : City of Bell Gardens; City of Compton; City of Lynwood;  
          City of Maywood; City of Paramount; City of South Gate.

           Opposition  :  Unknown.


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