BILL ANALYSIS �
AB 418
Page 1
Date of Hearing: April 2, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 418 (Mullin) - As Amended: February 10, 2014
SUBJECT : Local government: special tax, assessment, or
property-related fee.
SUMMARY : Authorizes the City/County Association of Governments
(C/CAG) 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 joint powers agreement
of C/CAG's member agencies.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Authorize 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 of the
California Constitution, to implement stormwater management
programs consistent with the joint powers agreement of C/CAG's
member agencies.
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
Legislature that this act shall not be construed to limit,
expand, or otherwise change any local agency's authority to
exercise powers under the Joint Exercise of Powers Act.
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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, 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 :
1)Allows two or more public agencies by agreement, if authorized
by their legislative or other governing bodies, to jointly
exercise any power common to the contracting parties.
2)Requires two-thirds voter approval for a special tax.
3)Provides notice, protest, and hearing procedures for the
levying of new or increased assessments or property related
fees or charges by local government agencies pursuant to
Proposition 218.
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 :
1)Purpose of the bill . This bill authorizes C/CAG to impose a
special tax or a property related fee, in compliance with the
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California Constitution, to implement stormwater management
programs consistent with the joint powers agreement of C/CAG's
member agencies.
2)Author's statement . 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 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 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
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the Municipal Regional Permit."
"C/CAG believes it is the most appropriate 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."
3)Proposition 218 . The California Constitution 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 (1996) 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 that "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."
Counties and other local agencies with police powers may
impose any one of these options on property owners, after
completing the Proposition 218 process. Special districts
created by statute, however, must have specific authority for
each of these revenue sources.
4)Joint Exercise of Powers Act . The Joint Exercise of Powers
Act provides the statutory authority for public entities to
create and use a joint powers agreement, which is a legal
framework for state and local governments to exercise common
powers and even create new public entities. They are an
AB 418
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attractive tool for local governments because they facilitate
more efficient service provision through collaboration, and
because they permit local entities to issue bonds without
voter ratification. Current law authorizes JPAs to jointly
exercise any power common to the contracting parties, if
authorized by their legislative or governing body. However,
current law is silent on a JPA's explicit authority to impose
a special tax, assessment, or property related fee.
AB 2170 (Mullin), pending in this Committee, addresses this
issue by explicitly authorizing two or more public agencies by
agreement to jointly exercise any power common to the
contracting parties including, but not limited to, the
authority to levy a fee or tax. AB 2170 finds and declares
that a joint powers authority has all powers common to the
contracting parties, so long as those powers are specified in
the joint powers agreement, therefore, the bill does not
constitute a change in law, but is declaratory of existing
law.
5)Previous legislation . In 2004, AB 1546 (Simitian), Chapter
931, Statutes of 2004, granted C/CAG the authority to impose
an annual fee on motor vehicles for programs to manage traffic
congestion and stormwater pollution. This authority was
extended until January 1, 2013 by SB 348 (Simitian), Chapter
377, Statutes of 2008. SB 613 (Simitian) of 2007, would have
extended the authority until January 1, 2019, but was vetoed
by Governor Schwarzenegger.
6)Arguments in support. 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 that this bill will enable a coordinated
countywide approach to funding stormwater pollution prevention
programs consistent with the consolidated regional regulations
issued by the San Francisco Bay Regional Water Quality Control
Board.
7)Arguments in opposition. 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.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 418
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Cities of Belmont, Brisbane, Daly City, East Palo Alto, Foster
City, Hillsborough, Millbrae, Pacifica, San Carlos, San Mateo,
South San Francisco
County of San Mateo
Towns of Coloma, Hillsborough and Portola Valley
Opposition
California Taxpayers Association
Howard Jarvis Taxpayers Association
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958