BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2554
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2554 (Brownley)
          As Amended  August 5, 2010
          Majority vote
           
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          |ASSEMBLY:  |48-28|(June 1, 2010)  |SENATE: |23-10|(August        |
          |           |     |                |        |     |19,2010)       |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  Authorizes the Los Angeles County Flood Control  
          District (District) to impose a fee, in Los Angeles County  
          (County), to pay the cost and expenses of carrying out projects  
          and providing services authorized under existing law.  

           The Senate amendments  :  

          1)Expand the application of the fee authorization to the entire  
            County, thereby authorizing the District to impose a fee, in  
            the County, in compliance with Proposition 218, to pay the  
            costs and expenses of carrying out projects and providing  
            services to improve water quality and reduce stormwater and  
            urban runoff pollution in the District.

          2)Require the District to allocate the revenues as follows:

             a)   10% to the District to implement and administer water  
               quality programs and to pay the District's costs for  
               levying and collecting the fee and distributing  revenues;

             b)   40% to Los Angeles County and to the cities within the  
               District, divided proportionally among each jurisdiction,  
               to be expended for water quality improvement programs; and,

             c)   50% to nine watershed authority groups that the District  
               must authorize by ordinance, divided  proportionally among  
               each watershed, to implement collaborative water quality  
               improvement plans or  programs in the watersheds.

          3)Require nine watershed authority groups to be  established  
            under the Joint Exercise of Powers Act for the following  
            watersheds: Ballona Creek, Dominguez Channel, Upper Los  
            Angeles River, Lower Los Angeles River, Rio Hondo, Upper San  








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            Gabriel River, Lower San Gabriel River, Santa Clara River, and  
            Santa Monica Bay.

          4)Specify that implementation of a watershed authority group's  
            collaborative water quality plan or program requires the  
            consent of any member agency whose jurisdiction comprises more  
            than 40% of the total land area in a watershed.

          5)Require the District's governing board to adopt an ordinance  
            to implement its fee authority.

          6)Make other technical amendments to the District's  authorizing  
            statutes.





           EXISTING LAW  :

          1)Establishes the District to provide for the control and  
            conservation of flood, storm and other waste waters.

          2)Authorizes the District to levy taxes or assessments on all  
            taxable property within the District, after a vote of property  
            owners.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Authorized the District to impose a fee, in the unincorporated  
            area of the County, in compliance with Proposition 218, to pay  
            the costs and expenses of carrying out projects and providing  
            services authorized under the District's Act.

          2)Required any fee that is imposed to be levied and collected  
            together with, and not separately from, taxes for county  
            purposes.

           FISCAL EFFECT  :  None

           COMMENTS  :  Article XIII D of the California Constitution  
          [Proposition 218] distinguishes among taxes, assessments and  
          fees for property-related revenues, and requires certain actions  
          before such revenues may be collected.  Counties and other local  
          agencies with police powers may impose any one of these options  








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          on property owners, after completing the Proposition 218  
          process.  Special districts created by statute, however, must  
          have specific authority for each of these revenue sources.

          The District's authorizing statute (Los Angeles County Flood  
          Control Act, Chapter 755 of the Statutes of 1915) authorizes the  
          District to impose only taxes or assessments, not fees.  The  
          District, which is governed by the Los Angeles County Board of  
          Supervisors, would like to have the same authority for imposing  
          fees as its governing County.  This bill expands the District's  
          authorization to add the levying of property-related fees to its  
          current authorization for levying of taxes or assessments.

          The County includes six major watersheds, significant amounts of  
          coastline and multiple lakes and rivers.  Consequently, the  
          County and the 85 cities within the District are subject to  
          numerous Total Maximum Daily Load (TMDL) requirements under the  
          federal Clean Water Act (CWA), which necessitate a regional  
          approach to TMDL mitigation that is coordinated with and  
          supportive of individual cities' water quality improvement  
          efforts.

          According to the author's office, this bill would authorize the  
          District to put a fee on the local ballot, asking voters to  
          raise revenue to fund clean water projects and carry out the  
          essential duties of the District.  According to the sponsors,  
          the County faces critical and very costly stormwater and urban  
          runoff pollution challenges as mandated by the CWA.  Runoff  
          containing trash and bacteria not only negatively impacts water  
          quality, but is harmful to the public health and economic  
          vitality of all communities in the region.  Increased funding  
          for necessary environmental projects will help keep waters clean  
          and spur green job creation.

          The May 7, 2009, version of AB 139 (Brownley), which was never  
          heard by a policy committee, would have a) authorized the  
          District to impose a fee to pay the cost and expenses of  
          carrying out projects and providing services to improve water  
          quality and reduce stormwater and urban runoff in the District;  
          and, b) provided for a division of those fees collected between  
          the District and other jurisdictions within the boundaries of  
          the District.  AB 554 (Nava), Chapter 510, Statutes of 2005,  
          authorized the Ventura County Watershed Protection District to  
          levy a fee on taxable real property both district-wide and by  
          zone.








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          Support Arguments:  Supporters argue that this bill gives the  
          District another tool in the tool box in order to help combat  
          urban stormwater runoff and its environmental impacts.  It is  
          costly to maintain TMDL requirements and any additional revenues  
          that can help assist in this effort would greatly help the  
          District.
           
           Opposition Arguments:  Opposition might argue that Los Angeles  
          County is not the only area that have to manage stormwater  
          runoff and that any effort to solve this issue should be done  
          state-wide. Opposition, also argues that this measure expands a  
          fee authority only currently authorized for one other flood  
          control district.

          The subject matter of this bill has been expanded, and  
          therefore, provisions of  this measure have not been heard in  
          any Assembly policy committee this legislative session.
           

          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958 



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