BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1141 (Negrete McLeod)
          
          Hearing Date:  05/03/2010           Amended: 04/05/2010
          Consultant: Mark McKenzie       Policy Vote: L Gov 4-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  SB 1141 would: (1) make various changes to the  
          general statutory requirement that each county form an airport  
          land use commission (ALUC); (2) authorize the Division of  
          Aeronautics (Division) at Caltrans to establish a fund to  
          provide grants to counties for the establishment of an ALUC; and  
          (3) prohibit airports in counties that have not established an  
          ALUC from receiving state Aeronautics Account funds if an ALUC  
          has not been established in that county, as specified.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Administer grant program          Staff costs of about $50 in a  
          fiscal year            Special*
                                 once the division identifies sufficient  
          funds                  

          ALUC grants            unknown, potentially significant cost  
          Special**              
                                 pressures to use existing funds for ALUC  
          grants
          ____________
          * Aeronautics Account in State Transportation Fund
          ** Airport Land Use Commission Establishment Fund (comprised of  
          transfers of federal funds and Aeronautics Account funds under  
          the control of the Division of Aeronautics)
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          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.   
          For example, a board of supervisors may exempt its county if it  
          establishes, through a public hearing process, that there are no  
          noise, public safety, or land use issues affecting any airport  
          in the county.  Current law also allows the board of supervisors  
          and the city selection committee of mayors to designate an  
          alternative local body for airport related land use planning,  
          which may then perform requirements assigned to ALUCs.  Counties  
          that have contracted with the Caltrans' Division of Aeronautics  
          are also exempt from forming and ALUC, as are cities satisfying  
          other specific criteria.


          Page 2
          SB 1141 (Negrete McLeod)

          SB 1141 would:
           Specify that if a county designates an existing body to assume  
            responsibilities of an ALUC, that body must be a countywide  
            body.
           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.
           Allow a city to assume ALUC duties for an airport located  
            within its boundaries if specified conditions are met by  
            January 1, 2011.
           Repeal the authority of Marin County to override an ALUC  
            finding of inconsistency with the CLUCP by a majority vote.
           Extend the existing liability immunity that applies to  
            publicly-owned airports to privately-owned public use  
            airports.
           Authorize Caltrans' Division of Aeronautics to establish an  
            Airport Land Use Commission Establishment Fund and allocate  
            money under its control to the Fund.
           Require the Division to notify counties that have not formed  
            an ALUC that money is available for ALUC startup costs, and  
            allow the Division to award grants for that purpose.  A county  
            that accepted a grant would be required to establish an ALUC  










            or designate an appropriate countywide body for that purpose  
            within 12 months.
           Prohibit the Division from allocating Aeronautics Account  
            funds to any public entity within a county that has not  
            established an ALUC or established an alternative planning  
            body.  This prohibition would only apply after the Division  
            notifies counties that funding is available for ALUC startup  
            costs, as specified.
           Delete obsolete provisions and make conforming changes.

          Staff notes that SB 737 (Negrete McLeod), which was held on this  
          Committee's Suspense File last year, contained provisions that  
          would require the nine counties that were 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.  To the extent SB 737 would have  
          required the nine affected counties to incur costs related to  
          the establishment or re-establishment of an ALUC, the bill would  
          have imposed a reimbursable state-mandated local program.  SB  
          1141 does not explicitly require these counties to establish an  
          ALUC, but would instead prohibit the airports within those  
          counties from receiving any assistance from the Aeronautics  
          Account if the Division of Aeronautics notified the counties  
          that funds were available to pay for their ALUC startup costs,  
          and those counties failed to establish an ALUC.

          The Division administers three state aid programs for airports.   
          The sole funding source for these grants is excise tax revenues  
          on general aviation gasoline and jet fuel that are annually  
          deposited into the Aeronautics Account.  
           The Airport Improvement Program (AIP) provides funds to assist  
            general aviation airports in meeting the local match for  
            federal AIP grants related to capital projects.
           The Annual Credit Program provides a $10,000 per year  
            entitlement to eligible publicly-owned, public-use airports  
            for discretionary expenditures.
           Acquisition and Development (A&D) grants are for eligible  
            projects subject to programming and allocation by the CTC.  An  
            ALUC can receive A&D funding to either prepare or update a  
            comprehensive land use plan.  

          Page 3
          SB 1141 (Negrete McLeod)

          Staff notes that the 2009-10 Budget Act transferred $4,000,000  
          from the Aeronautics Account to the General Fund.  As a result,  










          the Division was forced to suspend AIP grants and Annual Credit  
          grants for the current fiscal year.  The Governor's proposed  
          budget would fully fund these local assistance programs. 

          SB 1141 would authorize the Division to establish an Airport  
          Land Use Commission Establishment Fund and allocate money under  
          its control to the Fund for use as grants to counties that have  
          not established an ALUC or alternative planning process.  Staff  
          notes that by establishing a new use for a finite amount funds  
          that are dedicated for other purposes, this bill would create  
          cost pressures of an unknown, but potentially significant  
          magnitude.  The bill would require the Division to determine  
          when sufficient funding is available to provide these grants to  
          counties, but does not provide any guidance for the Division to  
          make such a determination.  Staff assumes that the Division  
          would need to seek input from counties, airports, and other  
          interested entities on what might be a realistic grant amount  
          for the establishment of an ALUC.  Depending on the amount that  
          is required for ALUC startup costs, it could take a number of  
          years before sufficient funding is available from existing  
          resources that might be appropriate for this purpose.  The  
          Division would also develop guidelines and criteria for the  
          administration of the grant program.  Caltrans indicates that it  
          would require approximately  PY to administer the program, once  
          sufficient funding is identified.

          SB 1141 would prohibit the Division from allocating Aeronautics  
          Account funds to any public entity within a county that has not  
          established an ALUC or established an alternative planning body.  
           This prohibition would only apply after the Division notifies  
          counties that funding is available for ALUC startup costs, as  
          specified.  Staff notes that while this might serve as an  
          incentive to counties that have not established an ALUC, it  
          would exacerbate the negative impact on the 47 airports that are  
          located in counties that have not conducted sufficient land use  
          planning around airports.  Withholding funding from airports  
          seems contrary to the Division's mission of promoting and  
          maintaining aviation safety.