BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Patricia Wiggins, Chair
BILL NO: SB 652 HEARING: 5/6/09
AUTHOR: Huff FISCAL: No
VERSION: 4/30/09 CONSULTANT: Ho
JOINT POWERS AGENCIES (URGENCY)
Background and Existing Law
The Joint Exercise of Powers Act allows two or more public
agencies to exercise their common powers by signing a joint
powers agreement. Sometimes an agreement creates a joint
powers authority (JPA). The San Gabriel Valley Council of
Governments (COG) is a JPA consisting of 29 cities in the
San Gabriel Valley of Los Angeles County, the County of Los
Angeles, and three municipal water districts.
A JPA can delegate its functions to an "administrative
entity" for the purposes of program development, policy
formulation, or program implementation. In 1998, the San
Gabriel Valley COG created the Alameda Corridor-East (ACE)
Construction Authority to develop and implement the "ACE
Project," a collection of construction projects aimed at
mitigating the effects of rail traffic in the San Gabriel
Valley. The ACE Project includes grade crossing safety
improvements, traffic signal control measures, roadway
widenings, and grade separations. Federal, state, local,
and private funds pay for the ACE projects.
In 2008, the ACE Construction Authority submitted an
application to the Federal Railroad Administration (FRA)
Capital Grants Program for Rail Line Relocation and
Improvement Projects. This federal grant program is open
to states, political subdivisions of states, and the
District of Columbia. Although the grant program
regulations do not define "political subdivision of a
state," the FRA determined that the ACE Construction
Authority is not a political subdivision of a state and,
thus, ineligible to apply for the FRA's funds. In an
effort to convince the FRA to reconsider its determination,
the ACE Construction Authority wants the Legislature to
declare in statute that the San Gabriel Valley COG and the
ACE Construction Authority are political subdivisions of
California.
SB 652 -- 4/30/09 -- Page 2
Proposed Law
Senate Bill 652 declares that the San Gabriel Valley
Council of Governments (COG) and the Alameda Corridor-East
(ACE) Construction Authority are political subdivisions of
the state. SB 652 states that this provision is
declaratory of existing law. The bill also states that the
San Gabriel Valley COG and the ACE Construction Authority
are eligible to apply for state and federal funds,
including the Federal Railroad Administration Capital
Grants Program for Rail Line Relocation and Improvement
Projects.
Comments
1. Back on track . Since 1998, the Alameda Corridor-East
(ACE) Construction Authority has worked on projects that
improve safety and decrease congestion around rail
crossings in the San Gabriel Valley. These projects are
essential for a region that faces significant future
increases in rail and vehicular traffic. There are federal
funds administered by the Federal Railroad Administration
(FRA) immediately available to support ACE projects.
However, the ACE Construction Authority may lose out on
those funds because the FRA does not recognize the
Authority as a political subdivision of the state. Efforts
at the federal level can clarify the Authority's
eligibility for future FRA administered funds, but not for
the money that's currently available. The ACE Construction
Authority is asking the Legislature for help.
2. Unintended consequences . SB 652 is a narrowly drawn
bill because it intends to solve a narrowly defined
problem. However, there are 36 other COGs and over 1,000
JPAs. The specificity of SB 652 could imply that all of
the other COGs and JPAs are not political subdivisions of
the state and are not eligible to apply for state and
federal funds. As a consequence, the bill may trigger many
future requests for special statutes similar to SB 652.
The Committee may wish to consider whether a general,
statewide bill is more appropriate. The Joint Exercise of
Powers Act declares that JPAs are public entities. Why not
also declare that JPAs and their administrative entities
SB 652 -- 4/30/09 -- Page 3
are political subdivisions of the state?
3. Another suggestion . Critics of a general, statewide
bill worry that a broader bill could generate confusion and
trigger opposition from some COGs. To avoid potential
confusion, a general, statewide bill could include
declarations and findings that clarify the Legislature's
intentions. The Committee may wish to consider amending SB
652 so that it broadly applies to all JPAs, but also
includes declarations and findings that are specific to the
ACE Construction Authority and the San Gabriel Valley COG.
4. Will this really work ? While the California
Legislature may recognize the ACE Construction Authority as
a political subdivision of the state, the FRA may not. The
ACE Construction Authority sent a copy of SB 652 to the FRA
and is waiting for a response. At this time, no one knows
if SB 652 will convince the FRA that ACE Construction
Authority is a political subdivision of the state.
5. What's the hurry ? SB 652 includes an urgency clause
because federal funding for rail relocation and improvement
projects is available now and the ACE Construction
Authority does not want to miss its chance to apply for
those funds.
Support and Opposition (4/30/09)
Support : Alameda Corridor-East Construction Authority
Opposition : Unknown.