BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           737 (Negrete-McLeod)
          
          Hearing Date:  05/28/2009           Amended: 04/21/2009
          Consultant: Mark McKenzie       Policy Vote: Loc Gov 5-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   
          SB 737 would repeal specified exemptions from the requirement  
          for counties that contain an airport to establish an Airport  
          Land Use Commission (ALUC). 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Re-establish ALUCs     unknown mandated costs  
          (state-reimbursable)  General
          (local mandate)        for exempted entities to re-establish an  
          ALUC
                                    -----------(see staff  
          comments)----------
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE.
          
          The State Aeronautics Act requires each county in which an  
          airport is located to establish an ALUC to formulate a  
          comprehensive land use compatibility plan (CLUCP), which  
          provides for the orderly growth of the airport and the area  
          surrounding the airport, and for the general protection of the  
          inhabitants within an airport's vicinity.  ALUCs review  
          amendments to local agencies' general plans to ensure  
          consistency with the CLUCP.  Local agencies can overrule an ALUC  
          finding of inconsistency with a 2/3 vote of its governing body,  
          but public agencies in Marin County can overrule such a finding  
          with a majority vote.  Existing law provides for specified  
          exceptions to requirements for the establishment of an ALUC.

          SB 737 would do the following:
           Repeal the authority of a county to exempt itself from the  
            requirement to establish an ALUC.










           Repeal language allowing an elected official of a city or  
            county that owns an airport to qualify as a "person with  
            expertise in aviation" for purposes of ALUC membership.
           Specify that if a county designates an existing body to assume  
            responsibilities of an ALUC, that body must be a countywide  
            body.
           Repeal a specified alternative process for establishment of an  
            ALUC, and instead allows a city to assume ALUC duties for an  
            airport located within its boundaries under certain  
            circumstances.
           Repeal the exemption for the requirement to set up an ALUC in  
            counties that contract with Caltrans' Division of Aeronautics  
            for preparation of a CLUCP.
           Repeal the authority of Marin County to override an ALUC  
            finding of inconsistency with the CLUCP by a majority vote.
           Delete obsolete provisions and make conforming changes.

          Page 2
          SB 737 (Negrete McLeod)

          This bill would require nine counties that are not using ALUCs  
          to change how land use planning and regulation occurs near  
          airports.  By eliminating and limiting exemptions from  
          requirements for counties to establish an ALUC, this bill would  
          impose a state-mandated local program by requiring a higher  
          level of service.  Local agencies have the authority to charge  
          fees to cover costs for preparation and revision of land use  
          plans and policies.  Specifically, Public Utilities Code Section  
          21671.5 authorizes an ALUC to establish a schedule of fees  
          necessary to comply with the airport land use planning law and  
          charge fees on proponents of actions, regulations, or permits.   
          Staff notes, however, that the Commission on State Mandates  
          (COSM) has determined that this fee authority does not disclaim  
          state responsibility to reimburse local entities for costs  
          related to the establishment or re-establishment of an Airport  
          Land Use Commission (see COSM final decision CSM 4507, which  
          provides for reimbursement of costs relative to AB 2831  
          (Mountjoy), Chapter 644 of 1994 and subsequent legislation).   
          While this mandate has been suspended in each Budget Act from  
          2005-06 to 2008-09, costs incurred in fiscal years 1997-98  
          through 2004-05 were $10,825,000.

          The State Controller's Local Agencies Mandated Costs Manual  
          provides guidance to local government entities for reimbursable  
          mandates.  As it pertains to the ALUC mandate, the 2007-08  
          manual specifies that claimants will be reimbursed for the  










          increased cost incurred for analysis and coordination related to  
          selecting one of four specified methods for compliance,  
          activities related to the establishment of the specified method,  
          activities related to re-establishing a method if an exemption  
          no longer applies, and specified per diem charges.  The  
          guidelines explicitly state that ALUC activities related to  
          certain land use planning processes are not reimbursable because  
          any costs incurred are recoverable from fees.  Furthermore, any  
          offsetting saving or reimbursement the claimant received from  
          any other source, including federal or state funds and fees  
          collected, as a direct result of this mandate would be deducted  
          from a reimbursement claim.

          Staff notes that to the extent SB 737 would require the nine  
          affected counties to incur costs related to the establishment or  
          re-establishment of an ALUC, this bill would appear to impose a  
          reimbursable state-mandated local program, despite language in  
          the bill that disclaims state reimbursement due to local fee  
          authority.  Potentially reimbursable costs are unknown, but if  
          each eligible local entity successfully filed a claim with the  
          COSM for $10,000 each, this bill would have a General Fund  
          impact of $90,000.

          SB 737 is similar to SB 1118 (Negrete McLeod), which failed  
          passage on the Assembly Floor last year.