BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2194|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 2194
          Author:   Mullin (D)
          Amended:  6/18/14 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  5-2, 6/11/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu
          NOES:  Knight, Walters

           ASSEMBLY FLOOR  :  75-1, 5/15/14 - See last page for vote


           SUBJECT :    Mello-Roos Community Facilities Act of 1982

           SOURCE  :     Author


           DIGEST  :    This bill adds to the list of services that a  
          Mello-Roos Community Facilities Districts (CFD) can finance,  
          storm water management services, including, but not limited to,  
          compliance with state and federal storm water permit  
          requirements, and restricts the services to publicly-owned  
          property.

           ANALYSIS  :    The Mello-Roos Community Facilities Act (Mello-Roos  
          Act) allows counties, cities, special districts, and school  
          districts to levy special taxes (parcel taxes) to finance a wide  
          variety of public works, including parks, recreation centers,  
          schools, libraries, child care facilities, and utility  
          infrastructure.  A Mello-Roos CFD issues bonds against these  
          special taxes to finance the public works projects.  Like all  
          special taxes, Mello-Roos Act special taxes require  
                                                                CONTINUED





                                                                    AB 2194
                                                                     Page  
          2

          two-thirds-voter approval.  If there are fewer than 12  
          registered voters, the affected landowners vote.

          In addition to financing public or governmental capital  
          facilities, Mello-Roos Act special taxes can fund a limited list  
          of public services:  police services, fire protection,  
          recreation programs, library services, museum operations, park  
          maintenance, flood and storm protection, hazardous waste  
          cleanup, street and road maintenance, lighting of parks,  
          parkways, streets, roads, and open space, plowing and removal of  
          snow, and graffiti management and removal.

          The federal Clean Water Act requires states to reduce pollution  
          from urban storm water runoff.  In California, the State Water  
          Resources Control Board (SWRCB) and the Regional Water Quality  
          Control Boards (RWQCBs) are pushing counties, cities, and  
          special districts to reduce urban runoff and storm water  
          discharges.  RWQCBs issue National Pollutant Discharge  
          Elimination System General Permits for medium and large  
          municipalities that require public education and outreach,  
          illicit discharge detection and elimination, construction and  
          post-construction, and good housekeeping for municipal  
          operations.  Compliance with permits sometimes requires  
          comprehensive solutions to urban runoff including low impact  
          development, catchments, water treatment, and other costly  
          activities.  In 2013, SWRCB also adopted permits for smaller  
          municipalities, including military bases, public campuses,  
          prisons and hospital complexes.  Local governments continue to  
          struggle to comply with permit requirements and want to be able  
          to use Mello-Roos taxes to help finance storm water management. 

          This bill adds to the list of services that a CFD can finance,  
          storm water management services, including, but not limited to,  
          compliance with state and federal storm water permit  
          requirements, and restricts the services to publicly-owned  
          property. 

           Comments
           
          Numerous local governments throughout California are facing  
          increasingly high costs associated with compliance with federal  
          and state storm water permit requirements.  To comply with storm  
          water permits, cities need to fund projects that may cost  
          millions and even billions of dollars over the next ten years.   

                                                                CONTINUED





                                                                    AB 2194
                                                                     Page  
          3

          This bill establishes an additional funding mechanism to help  
          local governments comply with storm water permit requirements.  

           Related Legislation
           
          Several bills address the issue of financing storm water  
          management this legislative session: 

          AB 2403 (Rendon of 2014) expands the definition of "water" in  
          the Proposition 218 Implementation Act to add storm water. 
          AB 418 (Mullin of 2014) authorizes the City/County Association  
          of Government of San Mateo County to impose a special tax or  
          property-related fee to fund stormwater management programs. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  6/18/14)

          California Building Industry Association
          California Special Districts Association
          City/County Association of Governments of San Mateo County


           ASSEMBLY FLOOR  :  75-1, 5/15/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Eggman, Fong, Frazier, Beth  
            Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,  
            Olsen, Pan, Patterson, Perea, John A. P�rez, V. Manuel P�rez,  
            Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, Atkins
          NOES:  Fox
          NO VOTE RECORDED:  Donnelly, Harkey, Mansoor, Vacancy


          AB:d  6/18/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                                                CONTINUED





                                                                    AB 2194
                                                                     Page  
          4


                                   ****  END  ****
          










































                                                                CONTINUED