BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                        Senator Patricia Wiggins, Chair


          BILL NO:  SB 215                      HEARING:  4/1/09
          AUTHOR:  Wiggins                      FISCAL:  Yes
          VERSION:  3/26/09                     CONSULTANT:  Ho
          
                       LAFCOs AND SUSTAINABLE COMMUNITIES

                           Background and Existing Law  

          Metropolitan planning organizations (MPOs) are regional  
          transportation planning agencies that serve the state's  
          most urbanized areas.  Sacramento Area Council of  
          Governments (SACOG) and San Diego Association of  
          Governments (SANDAG) are two of the state's 17 MPOs.   
          Federal and state laws require each MPO to develop a  
          regional transportation plan (RTP), which is a set of  
          long-term, regional transportation policies and goals.

          There is increasing legislative and public support for  
          linking land use decisions to transportation policy to help  
          reduce greenhouse gas (GHG) emissions from vehicles.  A new  
          state law requires the California Air Resources Board to  
          assign each MPO a GHG emissions reduction target; and then  
          requires each MPO to prepare a "sustainable communities  
          strategy" as a component of its RTP (SB 375, Steinberg,  
          2008).  This strategy will serve as a blueprint for  
          communities to achieve the region's GHG emissions reduction  
          target.  If the sustainable communities strategy does not  
          achieve the reduction target, the MPO must prepare an  
          alternative planning strategy. 

          Local agency formation commissions (LAFCOs) control the  
          boundaries of cities and special districts, including  
          annexations, detachments, city incorporations, and district  
          formations.  When preparing to make boundary decisions,  
          LAFCOs must consider 15 specified factors, such as  
          population density, regional housing needs, local general  
          plans, and environmental justice.  Furthermore, LAFCOs are  
          encouraged, but are not required, to consider regional  
          goals and policies.  By controlling the boundaries of local  
          governments, LAFCOs can influence the time, location, and  
          character of land development.  For example, when a  
          subdivision needs sewer service, a LAFCO's approval of an  
          annexation of the territory to a sanitation district makes  
          the development feasible.  




           
           SB 215 - 3/26/09 -- Page 2




          To plan for orderly development, LAFCOs adopt "spheres of  
          influence" for every city and special district.  Spheres of  
          influence are planning documents that show a city or  
          special district's future boundary and service area.   
          LAFCOs' boundary decisions must be consistent with these  
          spheres of influence.  

          Existing law requires MPOs to consider LAFCOs' spheres of  
          influence while preparing their sustainable communities  
          strategies.  However, there is no reciprocal requirement  
          for LAFCOs to consider MPOs' regional transportation plans  
          or sustainable communities strategies. 

                                   Proposed Law  

          Senate Bill 215 adds regional transportation plans,  
          including sustainable communities strategies and alternate  
          planning strategies, to the list of factors that local  
          agency formation commissions (LAFCOs) must consider before  
          making boundary decisions.  SB 215 also repeals the  
          authorization for LAFCOs to consider regional growth goals  
          and policies.

                                     Comments  

          1.   It makes sense  .  Efforts to reduce GHG emissions will  
          require regional cooperation in making land use decisions  
          that promote less driving, which is why last year's SB 375  
          (2008, Steinberg) required metropolitan planning  
          organizations (MPOs) to include a sustainable communities  
          strategy in their regional transportation plans.  The  
          success of implementing SB 375 depends on the degree to  
          which cities and counties conform their land use decisions  
          to the sustainable communities strategies.  Unfortunately,  
          the state lacks a formal, comprehensive regional planning  
          mechanism.  To prevent MPOs from ignoring the planning  
          realities of local governments, SB 375 requires MPOs to  
          consider LAFCOs' spheres of influence when preparing its  
          sustainable communities strategy.  SB 215's reciprocal  
          requirement for LAFCOs to consider sustainable communities  
          strategies before making a boundary decision is another  
          step toward aligning the state's fragmented planning  
          processes.  






           
           SB 215 - 3/26/09 -- Page 3



          2.   Jumping the gun  ?  Although SB 375 has been celebrated  
          as the most significant land use bill passed in the past  
          ten years, there has been widespread confusion among local  
          officials about how to implement the new law.  No one  
          really knows what a sustainable communities strategy will  
          look like because the first one won't be adopted for  
          another five or six years.  The Committee may wish to  
          consider if it is premature to add a new requirement to an  
          already complicated planning scheme.  

          3.   Think about it  .  SB 215 doesn't declare a new state  
          policy for LAFCOs to carry out.  The bill doesn't add  
          another item to the three purposes that the  
          Cortese-Knox-Hertzberg Act already lists for LAFCOs.  The  
          measure doesn't require LAFCOs to make formal findings when  
          they approve boundary changes.  It merely requires LAFCOs  
          to "consider" regional transportation plans as one factor  
          they think about before they vote.  Sustainable communities  
          strategies are tied to transportation funds and other  
          incentives; a LAFCO would be doing its county a disfavor by  
          not acknowledging its regional sustainable communities  
          strategy.  Moreover, no LAFCO has ever lost an appellate  
          case for failing to properly consider the 15 statutory  
          factors.  It is unlikely that SB 215 will result in more  
          legal challenges against LAFCOs.  To implement SB 215, most  
          LAFCO executive officers will probably add one or two  
          paragraphs to their required staff reports. 

          4.   State mandate, local fees  .  The California Constitution  
          requires the state to pay for new or increased  
          state-mandated local programs.  By adding more items to the  
          list of factors that LAFCOs must consider before acting, SB  
          215 results in a state mandate.  The bill, however,  
          disclaims state payment because LAFCOs can recover their  
          costs by charging processing fees to those who apply for  
          boundary changes.


                         Support and Opposition  (3/26/09)

           Support  :  California Association of Local Agency Formation  
          Commissions.

           Opposition  :  Unknown.