BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SCA 12
          Author:   Torlakson (D) and Yee (D)
          Amended:  6/18/07
          Vote:     27

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-1, 6/27/07
          AYES:  Negrete McLeod, Kehoe, Machado
          NOES:  Harman
          NO VOTE RECORDED:  Cox

           SEN. ELECTIONS, REAPP. & CONST. AMEND. CMTEE.  :  3-2,  
            7/10/07
          AYES:  Migden, Padilla, Calderon
          NOES:  Battin, Cogdill


           SUBJECT  :    Local government:  property-related fees

           SOURCE  :     Author


          DIGEST  :    This constitutional amendment exempts new or  
          increased stormwater and urban runoff management fees or  
          charges from the California Constitutions voter approval  
          requirements for property-related fees and charges.

           ANALYSIS  :    Proposition 218 of 1996 defines a  
          property-related fee or charge as, any levy other than an  
          ad valorem tax, a special tax, or an assessment, imposed by  
          an agency upon a parcel or upon a person as an incident of  
          property ownership, including a user fee or charge for a  
          property-related service.  Before a local government can  
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          charge a new property-related fee, or increase an existing  
          one, Proposition 218 requires local officials to:

          1. Identify the parcels to be charged.
          2. Calculate the fee for each parcel.
          3. Notify the parcels' owners in writing about the fees and  
             the hearing.
          4. Hold a public hearing to consider and count protests.
          5. Abandon the fees if a majority of the parcels' owners  
             protest.
           
           Existing law provides that further, new, or increased  
          property-related fees require one of the following:

          1. A majority-vote of the affected property owners.
          2. Two-thirds registered voter approval.
          3. Weighted ballot approval by the affected property  
             owners.
           
           Existing law provides however that this election  
          requirement does not apply to property-related fees for  
          sewer, water, or refuse collection services.
           
           This constitutional amendment exempts new or increased  
          stormwater and urban runoff management fees or charges from  
          the California Constitution's voter approval requirements  
          for property-related fees and charges.
           
          Background
           
          According to the Senate Local Government Committee  
          analysis, California regulators are pushing counties,  
          cities, and special districts to reduce urban runoff and  
          stormwater discharges.  But local officials face the  
          problem of how to pay for community-wide efforts without  
          requiring new development to pay a disproportionate share  
          of those costs.

          In 2002, an appellate court decision in  Howard Jarvis  
          Taxpayers Association   v. City of Salinas  found that charges  
          imposed by the City of Salinas on developed parcels to fund  
          stormwater management were property-related fees, and were  
          not covered by Proposition 218's exemption for "sewer" or  
          "water" services.  As a result, those fees require a vote  







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          of property owners or registered voters.
           
          Comments  

          According to proponents of this constitutional amendment,  
          increasingly strict regulation of pollutants from  
          stormwater and urban runoff has significantly increased the  
          costs faced by local agencies responsible for controlling  
          those pollutants, which can contaminate drinking water,  
          despoil beaches, and endanger public health.  Local  
          agencies find themselves caught between the need to expend  
          large amounts of money on stormwater runoff management and  
          Proposition 218's prohibitively high requirements for  
          approving fees to fund those efforts.  This constitutional  
          amendment gives California voters the opportunity to  
          reverse the  Salinas  decision and carve out a fourth  
          exception to Proposition 218, which would provide a  
          much-needed infusion of funding for local stormwater and  
          runoff management programs.
           
          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  7/12/07)

          Association of California Water Agencies
          Barbara Pierce, Mayor, Redwood City 
          Bay Area Stormwater Management Agencies Association
          California Association of Environmental Health  
          Administrators
          California Coastal Coalition
          California Coastkeeper Alliance
          California Special Districts Association
          California State Association of Counties
          City and County Association of Governments, San Mateo
          City of Burlingame
          City of Camarillo
          City of Chula Vista
          City of Concord
          City of Coronado
          City of Covina
          City of Eureka
          City of Fremont
          City of Livermore 







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          City of Lompoc
          City of Los Angeles
          City of Manteca
          City of Martinez
          City of Millbrae
          City of Moorpark
          City of Moreno Valley
          City of Palo Alto
          City of Redwood City
          City of Roseville
          City of San Leandro
          City of San Pablo
          City of Santa Monica
          City of Saratoga
          City of Signal Hill
          City of Sunnyvale
          City of Thousand Oaks
          City of Walnut Creek
          City of Woodland
          Contra Costa County
          Friends of the Santa Clara River
          Heal the Bay
          Inland Empire Waterkeeper
          Irvine Ranch Water District
          Lake County Board of Supervisors
          League of California Cities
          Ocean Conservation Society 
          San Joaquin County
          San Luis Obispo Coastkeeper
          Santa Clara County
          Santa Clara County Water District
          Santa Cruz County
          Save the Bay
          South Bay Cities Council of Governments
          The River Project
          Town of Los Gatos
          Ventura Countywide Stormwater Quality Management Program

           OPPOSITION  :    (Verified  7/12/07)

          California Taxpayers' Association
          Howard Jarvis Taxpayers Association









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          AGB:mw  7/13/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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