BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1390                   HEARING DATE: April 22, 2014   

          AUTHOR: Correa                     URGENCY: No  
          VERSION: February 21, 2014         CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Santa Ana River Conservancy.  
          
          BACKGROUND AND EXISTING LAW
          California has created a diverse assemblage of state  
          conservancies ranging from the very large (Coastal, Sierra  
          Nevada, and Santa Monica Mountains) to smaller conservancies  
          such as the Baldwin Hills Conservancy and the San Diego River  
          Conservancy. The other conservancies include the Coachella  
          Valley Mountains Conservancy, Tahoe Conservancy, Sacramento San  
          Joaquin Delta Conservancy, San Gabriel and Lower Los Angeles  
          Rivers and Mountains Conservancy, and the San Joaquin River  
          Conservancy (which deals with 22 miles of that river.) These  
          conservancies have different missions, but common themes are to  
          enhance and restore important habitat lands, provide for public  
          recreation, educational opportunities, and undertake watershed  
          restoration activities. Conservancies frequently enter into  
          voluntary real estate transactions with landowners, and leverage  
          their investments with other public agencies on lands either  
          owned outright by the conservancy or on which easements are  
          purchased. 

          Except as noted below, all conservancies have a board of  
          directors, usually with representatives of specifically  
          designated interests of the State of California. Typically,  
          these slots are for the Resources Agency, Finance, or another  
          state agency. In addition, for most conservancies, the governor  
          names public voting members who, together with the designated  
          officials, comprise a majority. It has long been the policy of  
          the state to have a voting majority of each conservancy board  
          comprised of statewide appointees. A minority of each board is  
          typically comprised of local elected officials, special district  
          representatives, nonprofit organizations, and legislative  
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          representatives appointed by the Speaker and Senate Rules. There  
          are often additional legislative ex officio members. 

          All but one conservancy has its own board of directors and  
          staff. That exception is the San Francisco Bay Conservancy which  
          is housed within the State Coastal Conservancy. 

          PROPOSED LAW
          This bill would establish the Santa Ana River Conservancy. The  
          bill includes several findings regarding the lack of public  
          recreation areas in parts of Orange County, the significance of  
          the Santa Ana River watershed from an ecological perspective,  
          and other declarations. 

          The conservancy would be authorized to acquire lands located  
          within  mile on either side of the riverbed of the river, to  
          manage those lands, to provide public recreational  
          opportunities, to restore and protect wetlands and agricultural  
          lands, and to improve water quality and floodwater protection in  
          the region, as well as providing public education opportunities.  


          The conservancy would also undertake planning to achieve the  
          listed objectives. It could not undertake activities that  
          infringe on water quality, water supply, or flood control. 

          Another major responsibility of the conservancy would be to  
          develop a Santa Ana River Parkway Open Space Plan. This plan  
          would identify actions that are consistent with the mission of  
          the conservancy and emphasize underused, existing public open  
          spaces that could enhance public use and enjoyment. The  
          conservancy would not be allowed to manage, regulate, or control  
          the use of any lands owned, leased, or otherwise used by another  
          public agency. Another aspect of the plan would be to identify  
          and prioritize additional low-impact recreational and open-space  
          needs, including additional or upgraded facilities and parks.

          The conservancy would be governed by a 13-member board of  
          directors including the Secretary for Resources, Director of  
          Finance, a public member appointed by the Governor from  
          recommendations of conservation groups, three public members  
          appointed by the Governor who meet various criteria, one member  
          each from the Boards of Supervisors of Riverside, Orange, and  
          San Bernardino County, one member from the Santa Ana River  
          Watershed Project Authority, one member appointed by Senate  
          Rules and one member appointed by the Speaker, and one tribal  
          representative. Each member would serve for two years, except  
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          for the secretary of resources and the director of finance.  
          Terms would also expire when board members (such as county  
          supervisors) are no longer in office. The bill contains other  
          terms and conditions that would apply to the conservancy and its  
          board such as compliance with Bagley-Keene Open Meeting Act,  
          definitions of a quorum, hiring of staff, use of advisory  
          committees, and other matters. 

          As with other conservancies, this bill would authorize the Santa  
          Ana River Conservancy to manage and maintain the lands that it  
          acquires, adopt regulations pertaining to those lands, and  
          collect reasonable fees. It could acquire lands either fee title  
          or easements or other interests in lands either itself, or  
          through arrangements with other third parties such as local  
          governments or nonprofits. It would be subject to the Property  
          Acquisition Law and could obtain property only from willing  
          sellers and at fair market value. The conservancy is authorized  
          to establish a mitigation land bank. It would be authorized to  
          exercise the right of first refusal for surplus public agency  
          property provided other legal requirements are observed. 

          For real estate transactions not identified in the Santa Ana  
          River Parkway and Open Space Plan, the conservancy would be  
          required to provide 30 day notice to an affected local agency. 

          The conservancy would be authorized to apply for grants, accept  
          bond funding, and would be prohibited from levying taxes or  
          regulating land use except on its own lands. It would not have  
          the power of eminent domain. It would also be subject to all  
          general and specific plans of local agencies. 

          The conservancy would be authorized to enter into real estate  
          transactions and real estate agreements with a variety of third  
          parties including local governments, nonprofits, and individuals  
          as well as to enter into land management contracts. It could  
          form a joint powers agreement. 

          It would be authorized to recruit volunteers although it is  
          directed to use California and local conservation corps services  
          if available. 

          The conservancy would be authorized to undertake a number of  
          projects on its lands, including site improvements, regulation  
          of public access, revegetation, and rehabilitation. These  
          projects could be undertaken in consultation or participation  
          with other public agencies. The conservancy is authorized to  
          construct or upgrade facilities for public education, public  
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          recreation, and historic and cultural preservation. Local  
          governments are to be provided 30 days written notice of such  
          projects. 

          For real estate transactions, the conservancy may award grants  
          for acquisition provided the conservancy approves the terms of  
          the acquisition and the purchase price does not exceed fair  
          market value and otherwise complies with specified provisions in  
          the bill. 

          The conservancy's finances would be administered through a new  
          fund, called the Santa Ana River Conservancy Fund. Its budget  
          would be subject to appropriation by the Legislature, and that  
          fund would receive all revenues and fees payable to the  
          conservancy. The conservancy would be eligible to receive  
          donations, grants, or other revenues contributed or donated to  
          it. 

          The bill requires an annual report to the Governor and the  
          Legislature on its activities and financial data. The bill also  
          prohibits the creation of the fund (but not the conservancy)  
          until after voter approval of a bond with an allocation to the  
          conservancy. There is also a prohibition on the appropriation of  
          general fund dollars to the conservancy. 


          ARGUMENTS IN SUPPORT
          According to the author, the Santa Ana River is an extraordinary  
          natural resource of statewide significance. Additionally, many  
          communities in that watershed have poor access to park space and  
          the river faces a number of water management issues. The  
          watershed has been subject to intense development and is in need  
          of restoration, conservation, and enhancement. 

          The river is the focal point of Southern California's largest  
          watershed, covering approximately 2.600 miles. It is contained  
          in portions of Orange, San Bernardino, and Riverside Counties.  
          The upland reach of the watershed including many tributaries of  
          the river contain important wildlife habitat. Much of the river  
          itself is an important public recreation option. 

          In 1969, the Army Corps of Engineers began installing concrete  
          lining in the river to channel as part of a flood control  
          project. Supporters of a new conservancy argue that  
          consideration should be given to restoring the natural function  
          of the river. Coordination of that effort would require  
          cooperation among numerous state and local and federal partners,  
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          which they believe could be provided by the conservancy. 

          Friends of Harbors, Beaches, and Parks is an Orange County  
          organization in support, based on the numerous environmentally  
          sensitive locations along the river as well as opportune  
          community sites that would benefit from the assistance of a  
          conservancy. The California Watershed Network made the same  
          points. 

          ARGUMENTS IN OPPOSITION
          None received. 

          COMMENTS 
          1. The author is aware that the initial and continuing costs of  
          establishing a new conservancy with a new board may subject the  
          bill to heightened scrutiny based on those fiscal costs as well  
          as opposition to a new governmental entity. The author is also  
          aware that in the case of the San Francisco Bay Conservancy that  
          those administrative costs were avoided or reduced by nesting  
          that conservancy within the larger umbrella of the Coastal  
          Conservancy. The Coastal Conservancy jurisdiction extends from  
          the coast to the headwaters of various rivers. The Santa Ana  
          River empties into the ocean in Orange County. Thus, it would be  
          appropriate for the Santa Ana River Conservancy to become a  
          program of the State Coastal Conservancy. 

          Not only were various administrative efficiencies achieved by  
          placing the San Franciso Bay Conservancy Program in the Coastal  
          Conservancy, but the program, which was established in 1997, has  
          been quite effective with that innovative organizational  
          structure. Since its inception, it has completed 425 projects,  
          protected 83,000 acres, helped provide 4 regional trails with  
          more than 200 miles of trail, received funding from the Coastal  
          Conservancy from bonds, and received $63 million in grants from  
          state and federal agencies, private foundations, and nonprofits.  


          2. The first suggested amendment would accomplish a similar  
          result and establish the Santa Ana River Program at the State  
          Coastal Conservancy. This change would necessitate re-numbering  
          the sections of this bill as well, although the sections used in  
          the bill are retained for the purposes of displaying these  
          amendments.  Also, the amendments continue to use the word  
          "conservancy" although technically it will be known as the  
          "Santa Ana River Conservancy Program." This amendment also  
          deletes the reference to the governing board and the staff. Both  
          functions would be assigned to the Coastal Conservancy. 
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          3. The second suggested amendment would retain the  mile limit  
          on either side of the riverbed,  except as otherwise agreed upon  
          by the conservancy and the affected local public agency  . This  
          would allow the conservancy and local governments some  
          flexibility for future projects or acquisitions provided that  
          both parties are in agreement. 

          4. The third suggested amendment would modify a restriction on  
          the conservancy. The bill prohibits the conservancy from  
          managing or regulating lands "owned, leased, or otherwise used"  
          by another public agency. This amendment would delete the term  
          "otherwise used" and add "except with the written approval of  
          another public agency." There may be times when the conservancy  
          and the local government choose to have the conservancy involved  
          with lands owned by that local government. 

          5. The fourth suggested amendment would require notice to local  
          governments of land transactions by the conservancy, regardless  
          of whether those projects were included in the Santa Ana River  
          Parkway and Open Space Plan. 

          6. The fifth suggested amendment would delete Section 33847.  
          That section prohibits the conservancy from administering the  
          Santa Ana River Conservancy Fund until the Legislature  
          appropriates funds or a bond measure is approved by the voters.  
          It is conceivable that the conservancy could be established even  
          in the absence of either of those options and it is conceivable  
          that the conservancy could solicit funds from other sources.  
          Also, while it is uncommon for the Legislature to appropriate  
          General Fund dollars to conservancies, it does happen from time  
          to time and this conservancy would not be well-served by such a  
          prohibition. 

          There are other technical amendments mentioned below as well. 


          




          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               Page 2, line 5. The Santa Ana River Conservancy Program is  
               established pursuant to this chapter, to be administered by  
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               the conservancy, to address the recreational and resource  
               goals of the Santa Ana River region, as identified pursuant  
               to Section 33815. 

               Delete Sections 33825 and 33826 (a)-(e) and 33830. 

               AMENDMENT 2 
                Page 3, line 29. Add, after "mile": "except for a greater  
               distance expressly authorized in a written agreement by and  
               between the conservancy and the local government whose  
               jurisdiction contains the affected land."

               AMENDMENT 3
               Page 4, page 23. Delete "otherwise used" and add, at end,  
               "without written permission." 
               
               AMENDMENT 4 

               Page 7, line 40 and page 8, lines 1-2: Delete "if that  
               project was not included in the Santa Ana River Parkway and  
               Open Space Plan." 
               
               AMENDMENT 5
               Page 11, Lines 8-14. Delete. 

               Technical Amendments. 
               Page 7, line 13. Change "at" to "not to exceed" 
               Page 7, line 21. Delete " and may create and administer a  
               mitigation land bank." 
               Page 7, line 32. Put a "." After "Plan," delete "and," and  
               add "The conservancy"

               Consistent with the first amendment, above, there are many  
               instances where "the conservancy" should be replaced with  
               "the program." 


          SUPPORT
          Friends of Harbors, Beaches, and Parks
          California Watershed Network
          1 Individual

          OPPOSITION
          None Received



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