BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 418
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 418 (Mullin)
          As Amended  
           February 10, 2014  
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(May 9, 2013)   |SENATE: |27-8 |(February 20,  |
          |           |     |                |        |     |2014)          |
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               (vote not relevant)

          Original Committee Reference:    JUD.  

           SUMMARY  :  Authorizes the City/County Association of Governments  
          of San Mateo County to impose a special tax, in compliance with  
          Article XIII C of the California Constitution, or to impose a  
          property related fee, in compliance with Article XIII D of the  
          California Constitution, to implement stormwater management  
          programs consistent with the agencies' joint powers agreement.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Authorize the City/County Association of Governments of San  
            Mateo County (C/CAG) to impose a special tax, in compliance  
            with Article XIII C of the California Constitution, or to  
            impose a property related fee, in compliance with Article XIII  
            D, to implement stormwater management programs consistent with  
            the agencies' joint powers agreement.  

          2)Allow the special tax or property related fee, at the option  
            of C/CAG, to be collected on the tax rolls of the county in  
            the same manner, by the same persons, subject to the same  
            penalties, and at the same time as county ad valorem property  
            taxes.  Allow the county auditor to deduct the amount required  
            to reimburse the county for its actual cost of collection.  

          3)Contain an urgency clause.  

          4)Find and declare that a special statute is necessary because  
            of the unique circumstances applicable only to C/CAG.  

          5)Find and declare that this bill responds to the specific and  
            unique circumstances of C/CAG and that it is the intent of the  








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            Legislature that this act shall not be construed to limit,  
            expand, or otherwise change any local agencies' authority to  
            exercise powers under the Joint Exercise of Powers Act.  

          6)Find and declare that this bill will enable C/CAG to do all of  
            the following:

             a)   Protect, in conjunction with its member agencies, the  
               watersheds and natural resources within C/CAG and restore  
               and enhance the environment, including the long-term  
               protection of the waters of local creeks and waterways, the  
               San Francisco Bay, and the coastline along the Pacific  
               Ocean;  

             b)   Develop and adopt a countywide stormwater management  
               program designed to coordinate, fund, and implement water  
               pollution prevention programs within the County of San  
               Mateo by C/CAG or its member agencies; and,  

             c)   Impose, consistent with the California Constitution, a  
               special tax or property related fee to fund activities  
               outlined in its joint powers agreement and consistent with  
               municipal stormwater permit requirements mandated by the  
               San Francisco Bay Regional Water Quality Control Board.  

           EXISTING LAW  authorized, until January 1, 2013, C/CAG to impose  
          a fee of up to $4 on motor vehicles registered within San Mateo  
          County to fund a program for the management of traffic  
          congestion and stormwater pollution within the county.  

           AS PASSED BY THE ASSEMBLY  , this bill required state agencies to  
          post a specifically described graphical Internet link  
          referencing the State Auditor's Web site location that contains  
          information on how to file a complaint pursuant to the  
          California Whistleblower Protection Act.

           FISCAL EFFECT  :  None

           COMMENTS  :  According to the author, "C/CAG is a joint powers  
          agency formed in 1991 to provide a forum for all local  
          governments in San Mateo County to work together on common  
          issues.  C/CAG's member agencies are the County of San Mateo and  
          the 20 cities and towns within the county.  In addition to its  
          primary role as the county's Congestion Management Agency, C/CAG  
          provides numerous other services, including managing the  








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          Countywide Water Pollution Prevention Program, which supports  
          member agencies in complying with municipal stormwater  
          regulations issued by the San Francisco Bay Regional Water  
          Quality Control Board under its Municipal Regional Permit.   
          Although C/CAG is not a permittee under the permit, it does  
          implement compliance programs for certain requirements on behalf  
          of its member agencies when it is more efficient or  
          cost-effective to perform those services at a countywide level  
          (e.g. water quality monitoring).  
             
           "C/CAG and about half of its member agencies have existing  
          pre-Proposition 218 assessments dedicated to stormwater  
          pollution prevention programs.  In some cases, member agencies  
          that currently don't have a dedicated stormwater assessment are  
          funding stormwater compliance activities through other sources,  
          including their local general funds.  C/CAG has two existing  
          countywide stormwater assessments imposed through the San Mateo  
          County Flood Control District under the Board of Supervisors.   
          Those two assessments generate approximately $1.5 million  
          annually."  

          In 2004, AB 1546 (Simitian), Chapter 931, Statutes of 2004,  
          granted C/CAG the authority to impose on annual fee on motor  
          vehicles for programs to manage traffic congestion and  
          stormwater pollution.  SB 348 (Simitian), Chapter 377, Statutes  
          of 2008, extended that authority until January 1, 2013.   
          According to the author, "In 2010, San Mateo County voters  
          approved C/CAG's Measure M, authorizing a $10 vehicle  
          registration fee that primarily funds congestion  
          management-related activities, but is also used for stormwater  
          pollution prevention programs by both C/CAG and its member  
          agencies.  C/CAG's member agencies have been required to  
          implement increasingly expensive programs to address a variety  
          of ubiquitous stormwater pollutants and others that are  
          challenging to address, including trash, pesticides, mercury,  
          and polychlorinated biphenyls, existing revenues are now  
          insufficient to meet regulatory demands.  C/CAG estimates  
          countywide funding deficits exceed $15 million per year for  
          C/CAG and its member agencies to provide compliant stormwater  
          programs over the next five year-term of the Municipal Regional  
          Permit.
          "Like other coastal communities around the state, there is still  
          a significant unmet need within the county to generate  
          additional revenue to comply with stormwater mitigation and  
          remediation mandates.  C/CAG believes it is the most appropriate  








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          agency to pursue countywide funding in its role as the  
          Countywide Water Pollution Prevention Program administrator,  
          given that any decision to place a special tax or  
          property-related fee before voters or property owners would be  
          subject to approval by C/CAG's Board of Directors, which  
          includes an elected official from each of the 21 local agencies.  
           C/CAG is pursuing enabling legislation because there are no  
          other viable means already codified for a joint powers agency to  
          propose special taxes or property-related fees for stormwater  
          pollution prevention programs."

          This bill authorizes C/CAG to impose a special tax, in  
          compliance with Article XIII C of the California Constitution,  
          or to impose a property related fee, in compliance with Article  
          XIII D, to implement stormwater management programs consistent  
          with the agencies' joint powers agreement.  

          The California Constitution (Proposition 218, 1996)  
          distinguishes among taxes, assessments and fees for property  
          related revenues, and requires certain actions before such  
          revenues may be collected.  This bill requires C/CAG to comply  
          with the provisions of Proposition 218 which require a  
          two-thirds voter approval for a special tax.  For a property  
          related fee Proposition 218 requires local officials to identify  
          the parcels, calculate the fee for each parcel, and conduct a  
          majority protest proceeding 45 days after mailing notice of a  
          new fee to all fee payers.  Additionally, Article XIII D,  
          Section 6 subdivision (c) of the California Constitution,  
          provides, "Except for fees or charges for sewer, water, and  
          refuse collection services, no property related fee or charge  
          shall be imposed or increased unless and until that fee or  
          charge is submitted and approved by a majority vote of the  
          property owners of the property subject to the fee or charge or,  
          at the option of the agency, by a two-thirds vote of the  
          electorate residing in the affected area."  Supporters argue  
          that this bill ensures C/CAG will have to abide by the existing  
          protections in the California Constitution in order to impose a  
          special tax or property related fee.  

          Support arguments:  Supporters argue while ultimate approval of  
          any new funding stream still rests with the voters and property  
          owners within our jurisdictions pursuant to the Constitution,  
          this bill will enable a coordinated countywide approach to  
          funding stormwater pollution prevention programs consistent with  
          the consolidated regional regulations issued by the San  








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          Francisco Bay Regional Water Quality Control Board.  

          Opposition arguments:  Opposition argues that this bill is  
          unnecessary because San Mateo County, its cities, and some of  
          its special districts already have authority to fund stormwater  
          programs using existing revenue tools.   

           This bill was substantially amended in the Senate and the  
          Assembly-approved provisions of this bill were deleted.  The  
          subject matter of this bill, as amended in the Senate, has not  
          been heard in any Assembly policy committee this legislative  
          session.
           

          Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958 


          FN:  
          0003042