BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2554
                                                                  Page  1

          Date of Hearing:   August 25, 2010

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                   AB 2554 (Brownley) - As Amended:  August 5, 2010
           
          SUBJECT  :   Los Angeles County Flood Control District: fees and  
          charges.

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









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          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  :  

          1)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 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.









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          2)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.

          3)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.

          4)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.

          5)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.

           6)Support Arguments  :  Supporters argue that this bill gives the  
            District another tool in the tool box in order to help combat  








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            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.

           7)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.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County of Los Angeles [SPONSOR]
          Gateway Cities Council of Governments
          Cities of Bell Gardens, Cerritos, Long Beach, Los Angeles,  
          Signal Hill, Whittier
          Los Angeles Conservation Corps
          Los Angeles Gateway Authority
          Tree People

           Opposition 
           
          Howard Jarvis Taxpayers Association (unless amended)
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958