BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 398
                                                                  Page  1

           Without Reference to File
           
          CONCURRENCE IN SENATE AMENDMENTS
          AB 398 (Migden)
          As Amended August 30, 2000
          2/3 vote
           
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          |ASSEMBLY:  |     |(June 21, 1999) |SENATE: |33-4 |(August 31,    |
          |           |     |                |        |     |2000)          |
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                    (vote not relevant)

          Original Committee Reference:   L. GOV.   

           SUMMARY  :  Appropriates $30 million from the General Fund (GF) to  
          the newly created San Francisco Baylands Restoration Program  
          Account (Account) for the purpose of acquiring and restoring  
          wetlands in the San Francisco Bay area.

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

          1)Create the Account for the purpose of acquiring and restoring  
            wetlands in the San Francisco Bay area.

          2)Authorize the Wildlife Conservation Board (WCB) to expend the  
            funds in the Account provided the following conditions are  
            met:

             a)   The purchase price does not exceed the fair market value  
               of the property;

             b)   WCB determines that there are sufficient funds exists  
               for the acquisition and long-term maintenance of property  
               and that there are no unique long-term maintenance  
               requirements;

             c)   A federal matching appropriation has been deposited into  
               the Account in the event that WCB determines to acquire all  
               or a portion of the Cargill property;

             d)   WCB determines, after consultation with the State  
               Coastal Conservancy, that the acquisition is consistent  








                                                                           
           AB 398
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               with the San Francisco Bay Area Conservancy Program; and,

             e)   The acquisition of the property will not result in any  
               liability for the state for the cleanup of hazardous  
               materials.

          3)Define "Cargill property" to mean all property owned by the  
            Cargill Salt Division that Cargill proposes to sell to the  
            state and federal governments.

          4)Require the State Controller to transfer $30 million from the  
            GF to the Account to be appropriated by WCB for the  
            implementation of the recommendations and objectives of the  
            Baylands Ecosystem Habitat Goals Report.

           EXISTING LAW  requires WCB to authorize the acquisition of real  
          property, rights in real property, water, or water rights as  
          necessary to carry out the purposes of the Wildlife Conservation  
          Law of 1947.

           AS PASSED BY THE ASSEMBLY  ,  this bill enacted the Housing Bond  
          Act of 2000, which proposed a  $750 million general obligation  
          bond for state housing programs.

           FISCAL EFFECT  :  $30 million GF appropriation.

           COMMENTS:   The Cargill Salt Ponds are located at the south end  
          of San Francisco Bay in Alameda, Santa Clara, and San Mateo  
          counties.  Cargill says that these ponds are still being used  
          for commercial salt purposes.  However, it seems that in recent  
          years, the commercial use of these ponds has seriously  
          diminished and Cargill is now willing to sell part of the  
          acreage.

          The ponds cover an area of 29,000 acres. Cargill is offering  
          19,000 acres for sale.  The total estimated cost of the  
          acquisition of the salt ponds is $300 million.  Congress is  
          moving legislation to have the federal government pay 50% of the  
          acquisition cost up to $150 million if the State of California  
          also participates in the acquisition.

          In 1999, The San Francisco Bay Area Wetlands Wetlands Ecosystem  
          Goals Project issued, "Baylands Ecosystem Habitat Goals," a  
          report providing a guide for the restoration of the baylands and  








                                                                           
           AB 398
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          adjacent habitats of the San Francisco Bay estuary.  This report  
          determined that in the South Bay area, achieving restoration  
          goals depends largely on the willingness of the Cargill Salt  
          Division to undertake major changes in its operations or to  
          cease it commercial salt production.


           Analysis Prepared by  :  Kristin Stauffacher / W., P. & W. / (916)  
          319-2096


          FN: 0007348