BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1656
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1656 (Fong) - As Amended:  March 29, 2012 

          Policy Committee:                              Natural 
          ResourcesVote:6-3
                        Local Government                      9-0     

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill extends, from January 1, 2029, to January 1, 2036, the 
          sunset on the San Francisco Bay Restoration Authority; expands 
          the jurisdiction of the authority's East Bay board member to 
          include all of Contra Costa County; and expands the eastern 
          boundary within with projects are eligible for grants and awards 
          from the authority.  

           FISCAL EFFECT  

          1)Negligible direct state costs.

            (The authority currently receives administrative support and 
            from the Coastal Conservancy, roughly equivalent to less than 
            $50,000 annually.  However, the conservancy anticipates its 
            administrative support of the authority to cease, following 
            parcel tax measures the authority is expected soon to place 
            before Bay Area voters.)

          2)Substantial cost pressures, in the millions of dollars 
            annually starting in a future fiscal year, to fund wetlands 
            and wildlife habitat restoration, enhancement, protection, and 
            recreational activities. (GF, future resources bond proceeds.)

           COMMENTS  

           1)Rationale.   The sponsor intends this bill to align the 
            jurisdiction of the authority with representation on its 
            governing board and with areas presenting opportunities for 
            shoreline restoration.  In addition, the author contends it 








                                                                  AB 1656
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            appropriate to extend the authority's sunset so that the 
            authority will exist at least as long as potential funding 
            streams.

           2)Background.   In 2008, Chapter 690 (2954 (Lieber)) created the 
            San Francisco Bay Restoration Authority in order to restore 
            shoreline wetland habitat around the San Francisco Bay, which, 
            by some estimates, could cost $1.4 billion over 50 years.  
            Statute directs the authority to be governed by a board of 
            directors comprised of local government representatives and 
            authorizes the authority to raise funding through mechanisms, 
            such as levying special taxes, benefit assessments and 
            property-related fees; pursuing grant funding; issuing revenue 
            bonds; and incurring bond indebtedness. Statute requires the 
            authority to repay, before January 1, 2029, the principal and 
            interest of any bond indebtedness.  

            The authority plans to place measures on local ballots in the 
            coming years to raise revenue for restoration projects. Should 
            local voters approve these measures, the authority expects to 
            begin receiving revenue as soon as 2015 and as late as 2017 
            and further expects funding streams to continue for 10 years.
           
           3)Support.   This bill is supported by the San Francisco Bay 
            Restoration Authority (sponsor) and some local conservation 
            groups.

           4)There is no opposition formally registered to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081