BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2624
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2624 (Smyth) - As Introduced:  February 24, 2012 

          Policy Committee:                              Local 
          GovernmentVote:9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill adds local agency formation commissions (LAFCOs) to 
          the list of eligible applicants for Strategic Growth Council 
          financial assistance, including grants and loans for developing, 
          adopting and implementing a regional plan or other planning 
          instrument to support the planning and development of 
          sustainable communities.

           FISCAL EFFECT  

          Negligible fiscal impact.

           COMMENTS  

           1)Purpose  .  The author states AB 2624 will provide LAFCOs with 
            grant funding so they could prepare more extensive municipal 
            service review (MSR) in collaboration with regional planning 
            entities.  The author argues because LAFCOs are funded by 
            their own local agencies, LAFCOs are not likely to be able to 
            prepare an MSR in the depth needed by the Councils of 
            Governments (COGs), Metropolitan Planning Organizations 
            (MPOs), Regional Transportation Planning Agencies (RTPAs), 
            cities, counties and Joint Powers Authorities (JPAs) for their 
            planning efforts.  The author notes AB 2624 would avoid the 
            need for an MPO to have to fund studies to obtain the 
            necessary information and would foster a greater opportunity 
            for collaboration among the planning agencies and the LAFCOs.  


           2)Support  .  The California Association of Local Agency Formation 
            Commissions (CALAFCO) argues this bill would reduce 








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            duplication of effort and provide the transportation agencies 
            with more complete information regarding municipal services 
            and growth capacity for the preparation of the Sustainable 
            Communities Strategies.

          3)Background  .  Proposition 84, the Safe Drinking Water, Water 
            Quality and Supply, Flood Control, River and Coastal 
            Protection Bond Act of 2006, includes $90 million for planning 
            grants and incentives including revolving loan programs and 
            other methods to encourage the development of regional and 
            local land use plans.

            SB 732 (Steinberg, 2008), created the Strategic Growth Council 
            (SGC) and requires the SGC to manage and award financial 
            assistance to Councils of Governments (COGs), Metropolitan 
            Planning Organizations (MPOs), Regional Transportation 
            Planning Agencies (RTPAs), cities, counties, and Joint Powers 
            Authorities (JPAs) to develop, adopt, or implement a regional 
            plan or other planning instrument consistent with a regional 
            plan, as specified.

           4)Local Agency Formation Commissions (LAFCOs)  .  LAFCOs are 
            required to complete a MSR prior to a sphere of influence 
            update.  MSRs are comprehensive in nature and examine growth 
            and population projections, present and planned capacity of 
            public facilities, infrastructure needs or deficiencies 
            related to sewer, water and fire protection, and the financial 
            ability of agencies to provide services.    

           5)Related legislation  .  In addition to other provisions, AB 2238 
            (Perea) contains similar language, adding LAFCOs to the list 
            of entities able to apply for Proposition 84 funding from 
            Strategic Growth Council.  AB 2238 allows LAFCOs to apply for 
            funding public water system consolidation, merger or extension 
            of services for projects for the purposes of promoting water 
            conservation.  This bill is pending in this committee.

           6)Previous legislation  .  SB 1006 (Hancock), Chapter 632, 
            Statutes of 2010 added special districts and joint powers 
            authorities to the list of eligible applicants under the 
            purview of the Strategic Growth Council for urban greening 
            projects and plans.

           7)There is no registered opposition on file.
                








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           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081