BILL NUMBER: AB 2067 CHAPTERED 09/10/04 CHAPTER 471 FILED WITH SECRETARY OF STATE SEPTEMBER 10, 2004 APPROVED BY GOVERNOR SEPTEMBER 10, 2004 PASSED THE ASSEMBLY AUGUST 16, 2004 PASSED THE SENATE AUGUST 5, 2004 AMENDED IN SENATE JUNE 30, 2004 AMENDED IN ASSEMBLY MAY 24, 2004 AMENDED IN ASSEMBLY APRIL 19, 2004 INTRODUCED BY Assembly Member Harman FEBRUARY 17, 2004 An act to amend, repeal, and add Sections 56030, 56700, and 56886.5 of, and to add and repeal Section 56826.5 of, the Government Code, relating to local government reorganization. LEGISLATIVE COUNSEL'S DIGEST AB 2067, Harman. Local government reorganization: special district consolidation. Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, establishes procedures for the organization and reorganization of cities and special districts. With respect to the consolidation of special districts, existing law requires all of the districts to have been formed pursuant to the same principal act. This bill would delete that requirement. The bill would require the petition for a change of organization or reorganization that includes consolidation of 2 or more special districts not formed pursuant to the same principal act either to designate the successor district and the applicable principal act or to state that the proposal requires the formation of a new district and includes a plan for services. The bill would authorize the local agency formation commission to approve a proposal for reorganization that includes the consolidation of 2 or more special districts not formed pursuant to the same principal act if specified conditions are met. The bill would require the commission in considering a proposal for such a consolidation to determine whether any service could be discontinued due to a lack of authority in the principal act and whether a new single-purpose local agency is deemed necessary. The bill would make all of these changes inoperative on July 1, 2008, and reinstate the prior law. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 56030 of the Government Code is amended to read: 56030. "Consolidation" means the uniting or joining of two or more cities located in the same county into a single new successor city or two or more districts into a single new successor district. This section shall become inoperative on July 1, 2008, and, as of January 1, 2009, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2009, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 1.5. Section 56030 is added to the Government Code, to read: 56030. (a) "Consolidation" means the uniting or joining of two or more cities located in the same county into a single new successor city or two or more districts into a single new successor district. In the case of consolidation of special districts, all of those districts shall have been formed pursuant to the same principal act. (b) This section shall become operative on July 1, 2008. SEC. 2. Section 56700 of the Government Code is amended to read: 56700. (a) A proposal for a change of organization or a reorganization may be made by petition. The petition shall do all of the following: (1) State that the proposal is made pursuant to this part. (2) State the nature of the proposal and list all proposed changes of organization. (3) Set forth a description of the boundaries of affected territory accompanied by a map showing the boundaries. (4) Set forth any proposed terms and conditions. (5) State the reason or reasons for the proposal. (6) State whether the petition is signed by registered voters or owners of land. (7) Designate not to exceed three persons as chief petitioners, setting forth their names and mailing addresses. (8) Request that proceedings be taken for the proposal pursuant to this part. (9) State whether the proposal is consistent with the sphere of influence of any affected city or affected district. (b) A petition for a proposal for a change of organization or a reorganization that includes the consolidation of two or more special districts not formed pursuant to the same principal act, in addition to the requirements set forth in subdivision (a), shall do either of the following: (1) Designate the district that shall be the successor and specify under which principal act the successor shall conduct itself. (2) State that the proposal requires the formation of a new district and includes a plan for services prepared pursuant to Section 56653. (c) This section shall become inoperative on July 1, 2008, and, as of January 1, 2009, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2009, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 2.5. Section 56700 is added to the Government Code, to read: 56700. (a) A proposal for a change of organization or a reorganization may be made by petition. The petition shall do all of the following: (1) State that the proposal is made pursuant to this part. (2) State the nature of the proposal and list all proposed changes of organization. (3) Set forth a description of the boundaries of affected territory accompanied by a map showing the boundaries. (4) Set forth any proposed terms and conditions. (5) State the reason or reasons for the proposal. (6) State whether the petition is signed by registered voters or owners of land. (7) Designate not to exceed three persons as chief petitioners, setting forth their names and mailing addresses. (8) Request that proceedings be taken for the proposal pursuant to this part. (9) State whether the proposal is consistent with the sphere of influence of any affected city or affected district. (b) This section shall become operative on July 1, 2008. SEC. 3. Section 56826.5 is added to the Government Code, to read: 56826.5. (a) A proposal for reorganization that includes the consolidation of two or more special districts not formed pursuant to the same principal act shall only be approved by the commission if both the following conditions are met: (1) The commission is able to designate a successor or successors, or form a new district or districts, authorized by their respective principal acts to deliver all of the services provided by the consolidating districts at the time of consolidation. (2) The commission makes the determinations specified in subdivision (b) of Section 56881. (b) If a proposal for reorganization that includes the consolidation of two or more special districts not formed pursuant to the same principal act is initiated by the commission pursuant to subdivision (a) of Section 56375, it shall only be approved if the commission has prepared a study pursuant to Section 56378 or the written statement of determinations specified in subdivision (a) of Section 56430, and all of the following conditions are met: (1) Each of the services provided by the districts subject to the proposal will be provided by a successor or successors, or by the formation of a new district authorized under a principal act to deliver the services. The commission may designate a successor other than the districts subject to the proposal only if the successor is currently providing the same service provided by one or more of the districts subject to the proposal. The commission shall not designate a city as a successor unless the city contains 70 percent or more of the area of land within one of the districts subject to the proposal, or the combined territory of two or more of the districts subject to the proposal, within its boundaries, and 70 percent or more of the number of registered voters of the district or the combined districts who reside within the boundaries of the city. (2) The public services costs of the proposal that the commission is authorizing are likely to be less than or substantially similar to the costs of alternative means of providing the service. (3) The proposal that the commission is approving promotes public access and accountability for community services needs and financial resources. (c) This section shall become inoperative on July 1, 2008, and, as of January 1, 2009, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2009, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 4. Section 56886.5 of the Government Code is amended to read: 56886.5. (a) If a proposal includes the formation of a district or the incorporation of a city, the commission shall determine whether existing agencies can feasibly provide the needed service or services in a more efficient and accountable manner. If a new single-purpose local agency is deemed necessary, the commission shall consider reorganization with other single-purpose local agencies that provide related services. (b) If a proposal includes the consolidation of two or more special districts not formed pursuant to the same principal act, the commission shall determine whether any service provided at that time could be discontinued due to a lack of authority under the principal act of the successor. If a new single-purpose local agency is deemed necessary to provide the needed service or services, the commission shall consider the formation of a new district that is authorized to provide the service or services. (c) This section shall become inoperative on July 1, 2008, and, as of January 1, 2009, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2009, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 5.5. Section 56886.5 is added to the Government Code, to read: 56886.5. (a) If a proposal includes the formation of a district or the incorporation of a city, the commission shall determine whether existing agencies can feasibly provide the needed service or services in a more efficient and accountable manner. If a new single-purpose local agency is deemed necessary, the commission shall consider reorganization with other single-purpose local agencies that provide related services. (b) This section shall become operative on July 1, 2008.