BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 499
                                                                  Page 1

          Date of Hearing:  April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                  AB 499 (Hill) - As Introduced:  February 24, 2009
           
          SUBJECT  :  California Environmental Quality Act (CEQA)

           SUMMARY  :  Revises CEQA judicial review procedures to clarify  
          that only the recipients of a project approval identified by the  
          lead agency are the real parties in interest that must be named  
          by the plaintiff in an appeal of the lead agency's decision.

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for  
            carrying out or approving a proposed project to prepare a  
            negative declaration, mitigated negative declaration, or  
            environmental impact report for this action, unless the  
            project is exempt from CEQA.

          2)Requires a state agency to file a notice of its CEQA decision  
            with the Office of Planning and Research and requires a local  
            agency to file a notice of its decision with the appropriate  
            county clerk(s).

          3)Provides appeal procedures to challenge lead agency decisions,  
            including requiring the petitioner or plaintiff to name, and  
            serve, a real party in interest; provides that failure to name  
            potential parties, other than specified real parties in  
            interest, is not grounds for dismissal of the appeal.

           THIS BILL :

          1)Requires the lead agency to identify the recipient of the  
            agency's approval in its notice of determination or exemption.

          2)Provides that the recipient of project approval identified by  
            the lead agency is the real party in interest that a  
            petitioner or plaintiff must name in, and serve, its petition  
            or complaint.

          3)Provides that the petition or complaint is subject to  
            dismissal if the petitioner or plaintiff fails to serve any  
            recipient of approval identified by the lead agency.








                                                                  AB 499
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          4)Provides that the bill's revisions apply prospectively, i.e.,  
            they do not apply to CEQA lawsuits pending, or to public  
            agency decisions for which a notice was filed, on or before  
            December 31, 2009.

           FISCAL EFFECT :  Unknown

           COMMENTS  :

          A "real party in interest" is a person affected by litigation  
          other than the plaintiff or the defendant.  Equitable  
          principles, reflected in the "indispensable party rule," seek to  
          assure that a person who will actually be affected by litigation  
          is adequately notified so he or she can participate in the  
          litigation.  CEQA's judicial review procedures specify which  
          persons are indispensable parties and must be named and served  
          in litigation.

          Under current law as recently declared by the Court of Appeal in  
          County of Imperial v. Superior Court (2007) 152 Cal. App. 4th  
          13, any person who years after project approval claims to be a  
          recipient of approval can be considered an "indispensable party"  
          and therefore required to be named in a CEQA lawsuit, which must  
          brought within 30 days of project approval; failure to name the  
          party within that 30-day period requires categorical dismissal  
          of the lawsuit.  Such dismissal is required, the Court held in  
          interpreting existing Section 21167.6.5 of the Public Resources  
          Code, even though the party not named had asserted in both the  
          administrative proceeding and in court that it did not need the  
          approval in question and did not claim to be "indispensable."

          To prevent important cases from being dismissed, petitioners in  
          CEQA lawsuits are forced to over-name and serve parties who  
          might or might not be considered indispensable to ensure they  
          have not missed anyone. This is extremely burdensome not only to  
          the petitioners, but also to those who have been named as real  
          parties in interest by the petitioners simply out of an  
          abundance of caution in light of the result in the County of  
          Imperial case.

          This bill intends to resolve the situation of CEQA appellants  
          either over-naming and over-serving parties, or facing the risk  
          their appeal may be dismissed for technical errors.  First, the  
          bill requires lead agencies to name the recipients of approval.   








                                                                  AB 499
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          Then, the bill specifies that only those parties actually  
          identified by the lead agency as a recipient of that approval  
          must be named and served.  Other parties may intervene on their  
          own initiative.  The bill appears to improve the efficiency of  
          CEQA judicial review by addressing a burdensome procedural  
          complication without affecting the statute's intent regarding  
          notice and participation in CEQA litigation.

          A similar bill, SB 68 (Kuehl), was approved by this Committee in  
          2008, but was later vetoed by the Governor, who objected to  
          making lead agencies responsible for determining who the "real  
          parties in interest" are.  AB 499 is intended to address the  
          ambiguity the Governor objected to by clearly indicating that  
          lead agencies simply must name the recipients of their approval,  
          who petitioners must then name as real parties in interest.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Council for Environmental and Economic Balance
          California League of Conservation Voters
          California Native Plant Society
          California State Parks Foundation
          Clean Water Action
          Environmental Defense Fund
          Imperial County Board of Supervisors
          Natural Resources Defense Council
          Planning and Conservation League
          Sierra Club California

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092