BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |SB 1374 |Hearing | 8/29/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Lara |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |8/19/16 |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Favorini-Csorba | |: | | ----------------------------------------------------------------- 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 SB 1374 (Lara) 8/19/16 Page 2 of ? 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 SB 1374 (Lara) 8/19/16 Page 3 of ? 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 SB 1374 (Lara) 8/19/16 Page 4 of ? 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 SB 1374 (Lara) 8/19/16 Page 5 of ? 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 SB 1374 (Lara) 8/19/16 Page 6 of ? 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]). SB 1374 (Lara) 8/19/16 Page 7 of ? 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. -- END --