BILL NUMBER: AB 3047 CHAPTERED 07/03/08 CHAPTER 68 FILED WITH SECRETARY OF STATE JULY 3, 2008 APPROVED BY GOVERNOR JULY 3, 2008 PASSED THE SENATE JUNE 16, 2008 PASSED THE ASSEMBLY JUNE 23, 2008 AMENDED IN SENATE MAY 19, 2008 AMENDED IN ASSEMBLY APRIL 21, 2008 INTRODUCED BY Committee on Local Government (Caballero (Chair), Houston (Vice Chair), De La Torre, Lieber, Saldana, Smyth, and Soto) FEBRUARY 27, 2008 An act to amend Sections 56106, 56157, 56332, 56375.3, 56425.5, 56654, 56706, and 57080 of, to amend the heading of Chapter 7 (commencing with Section 57176) of Part 4 of Division 3 of Title 5 of, and to repeal Sections 56650.5 and 56758 of, the Government Code, relating to local agencies. LEGISLATIVE COUNSEL'S DIGEST AB 3047, Committee on Local Government. Local agency formation commissions: notice requirements. (1) The Cortese-Knox-Hertzberg Act of 2000 requires the local agency formation commission in each county to review and approve or disapprove proposals for changes of organization or reorganization of cities and districts within the county. The legislative body of the affected local agency is authorized to adopt, by resolution, a proposal for a change of organization or a reorganization. At least 20 days before the adoption of the resolution of application for organization or reorganization, the legislative body is authorized to give mailed notice of its intention to do so to the commission and to each interested agency and each subject agency. All provisions in the act governing the time within which an official or the commission is to act are required to be deemed directory, rather than mandatory, except for notice requirements and the specified requirements for conducting a hearing in relation to an application to initiate proceedings. This bill would instead authorize the legislative body to give mailed notice of its intention to adopt a resolution of application at least 21 days before the adoption of the resolution to the commission and to each interested agency and each subject agency. The bill also would make a conforming addition to the exceptions to the requirement that the time within which an official or the commission is to act is to be deemed directory, rather than mandatory, and would make other conforming changes. (2) Under the act, when mailed notice is required to be given to landowners, the notice must be addressed to each person to whom the land is assessed, as specified, and to the most recent address of all registered voters within the affected territory, as specified. This bill would provide that when the landowner or landowners and the registered voter or voters are the same individual or individuals, only one notice is required to be mailed. (3) The act requires a local agency formation commission to carry out specified duties with regard to a proposal for the annexation of territory to a city, as specified. This bill would revise these provisions to require the local agency formation commission to carry out these duties with regard to proposals for a change of organization or reorganization that meet the specified requirements. (4) The act prohibits proceedings from being initiated for a proposal for annexation of inhabited territory to a city with over 100,000 residents that is located in a county with a population of over 4,000,000 unless the proposal is consistent with the sphere of influence of any affected city or district. This bill would repeal these provisions. (5) The act requires the executive officer to, within 30 days after the date of receiving a petition, cause the petition to be examined by, in the case of a registered voter petition, the county elections official, or in the case of a landowner petition, the county assessor, and prepare a certificate of sufficiency indicating whether the petition is signed by the requisite number of signers. This bill would require these actions to take place within 30 days, excluding Saturdays, Sundays, and holidays. (6) This bill would incorporate additional changes in Section 56654 of the Government Code, proposed by AB 2484, to become operative only if AB 2484 and this bill are both chaptered and become effective January 1, 2009, and this bill is chaptered last. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 56106 of the Government Code is amended to read: 56106. Any provisions in this division governing the time within which an official or the commission is to act shall in all instances, except for notice requirements and the requirements of subdivision (i) of Section 56658 and subdivision (b) of Section 56895, be deemed directory, rather than mandatory. SEC. 2. Section 56157 of the Government Code is amended to read: 56157. When mailed notice is required to be given to: (a) A county, city, or district, it shall be addressed to the clerk of the county, city, or district. (b) A commission, it shall be addressed to the executive officer. (c) Proponents, it shall be addressed to the persons so designated in the petition at the address specified in the petition. (d) Landowners, it shall be addressed to each person to whom land is assessed, as shown upon the most recent assessment roll being prepared by the county at the time the proponent adopts a resolution of application pursuant to Section 56654 or files a notice of intention to circulate a petition with the executive officer pursuant to subdivision (a) of Section 56700.4, at the address shown upon the assessment roll and to all landowners within 300 feet of the exterior boundary of the property that is the subject of the hearing at least 21 days prior to the hearing. This requirement may be waived if proof satisfactory to the commission is presented that shows that individual notices to landowners have already been provided by the initiating agency. Notice also shall be either posted or published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the affected territory 21 days prior to the hearing. (e) Persons requesting special notice, it shall be addressed to each person who has filed a written request for special notice with the executive officer or clerk at the mailing address specified in the request. (f) To all registered voters within the affected territory, to the address as shown on the most recent index of affidavits prepared by the county elections official at the time the proponent adopts a resolution of application pursuant to Section 56654 or files a notice of intention to circulate a petition with the executive officer pursuant to subdivision (a) of Section 56700.4 and to all registered voters within 300 feet of the exterior boundary of the property that is the subject of the hearing at least 21 days prior to the hearing. This requirement may be waived if proof satisfactory to the commission is presented that shows that individual notices to registered voters have already been provided by the initiating agency. Notice shall also either be posted or published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the affected territory 21 days prior to the hearing. (g) Pursuant to subdivisions (d) and (f), if a landowner or landowners and registered voter or voters are the same individual or individuals, only one notice is required to be mailed. (h) If the total number of notices required to be mailed in accordance with subdivisions (d) and (f) exceeds 1,000, then notice may instead be provided by publishing a display advertisement of at least one-eighth page in a newspaper, as specified in Section 56153, at least 21 days prior to the hearing. SEC. 3. Section 56332 of the Government Code is amended to read: 56332. (a) The independent special district selection committee shall consist of the presiding officer of the legislative body of each independent special district. However, if the presiding officer of an independent special district is unable to attend a meeting of the independent special district selection committee, the legislative body of the district may appoint one of its members to attend the meeting of the selection committee in the presiding officer's place. Those districts shall include districts located wholly within the county and those containing territory within the county representing 50 percent or more of the assessed value of taxable property of the district, as shown on the last equalized county assessment roll. Each member of the committee shall be entitled to one vote for each independent special district of which he or she is the presiding officer. Members representing a majority of the eligible districts shall constitute a quorum. (b) The executive officer shall call and give written notice of all meetings of the members of the selection committee. A meeting shall be called and held under either of the following circumstances: (1) Whenever a vacancy exists among the members or alternate members representing independent special districts upon the commission. (2) Upon receipt of a written request by one or more members of the selection committee representing districts having 10 percent or more of the assessed value of taxable property within the county, as shown on the last equalized county assessment roll. (c) (1) If the executive officer determines that a meeting of the special district selection committee, for the purpose of selecting the special district representatives or for filling a vacancy, is not feasible, the executive officer may conduct the business of the committee in writing, as provided in this subdivision. The executive officer may call for nominations to be submitted in writing within 30 days. At the end of the nominating period, the executive officer shall prepare and deliver, or send by certified mail, to each independent special district one ballot and voting instructions. If only one candidate is nominated for a vacant seat, that candidate shall be deemed selected, with no further proceedings. (2) As an alternative to the delivery by certified mail, the executive officer, with the prior concurrence of the district, may transmit the ballot and voting instructions by electronic mail, provided that the executive officer shall retain written evidence of the receipt of that material. (3) The ballot shall include the names of all nominees and the office for which each was nominated. The districts shall return the ballots to the executive officer by the date specified in the voting instructions, which date shall be at least 30 days from the date on which the executive officer mailed the ballots to the districts. (4) If the executive officer has transmitted the ballot and voting instructions by electronic mail, the districts may return the ballots to the executive officer by electronic mail, provided that the executive officer retains written evidence of the receipt of the ballot. (5) Any ballot received by the executive officer after the specified date is invalid. The executive officer shall announce the results of the election within seven days of the specified date. (d) The selection committee shall appoint two regular members and one alternate member to the commission. The members so appointed shall be elected or appointed special district officers residing within the county but shall not be members of the legislative body of a city or county. If one of the regular district members is absent from a commission meeting or disqualifies himself or herself from participating in a meeting, the alternate district member may serve and vote in place of the regular district member for that meeting. The representation by a regular district member who is a special district officer shall not disqualify, or be cause for disqualification of, the member from acting on a proposal affecting the special district. The special district selection committee may, at the time it appoints a member or alternate, provide that the member or alternate is disqualified from voting on proposals affecting the district of which the member is a representative. (e) If the office of a regular district member becomes vacant, the alternate member may serve and vote in place of the former regular district member until the appointment and qualification of a regular district member to fill the vacancy. SEC. 4. Section 56375.3 of the Government Code is amended to read: 56375.3. (a) In addition to those powers enumerated in Section 56375, a commission shall do either of the following: (1) Approve, after notice and hearing, the change of organization or reorganization of a city, and waive protest proceedings pursuant to Part 4 (commencing with Section 57000) entirely, if all of the following are true: (A) The change of organization or reorganization is initiated on or after January 1, 2000, and before January 1, 2014. (B) The change of organization or reorganization is proposed by resolution adopted by the affected city. (C) The commission finds that the territory contained in the change of organization or reorganization proposal meets all of the requirements set forth in subdivision (b). (2) Approve, after notice and hearing, the change of organization or reorganization of a city, subject to subdivision (a) of Section 57080, if all of the following are true: (A) The change of organization or reorganization is initiated on or after January 1, 2014. (B) The change of organization or reorganization is proposed by resolution adopted by the affected city. (C) The commission finds that the territory contained in the change of organization or reorganization proposal meets all of the requirements set forth in subdivision (b). (b) Subdivision (a) applies to territory that meets all of the following requirements: (1) It does not exceed 150 acres in area, and that area constitutes the entire island. (2) The territory constitutes an entire unincorporated island located within the limits of a city, or constitutes a reorganization containing a number of individual unincorporated islands. (3) It is surrounded in either of the following ways: (A) Surrounded, or substantially surrounded, by the city to which annexation is proposed or by the city and a county boundary or the Pacific Ocean. (B) Surrounded by the city to which annexation is proposed and adjacent cities. (C) This subdivision shall not be construed to apply to any unincorporated island within a city that is a gated community where services are currently provided by a community services district. (D) Notwithstanding any other provision of law, at the option of either the city or the county, a separate property tax transfer agreement may be agreed to between a city and a county pursuant to Section 99 of the Revenue and Taxation Code regarding an annexation subject to this subdivision without affecting any existing master tax sharing agreement between the city and county. (4) It is substantially developed or developing. The finding required by this paragraph shall be based upon one or more factors, including, but not limited to, any of the following factors: (A) The availability of public utility services. (B) The presence of public improvements. (C) The presence of physical improvements upon the parcel or parcels within the area. (5) It is not prime agricultural land, as defined by Section 56064. (6) It will benefit from the change of organization or reorganization or is receiving benefits from the annexing city. (c) Notwithstanding any other provision of this subdivision, this subdivision shall not apply to all or any part of that portion of the development project area referenced in subdivision (e) of Section 33492.41 of the Health and Safety Code that as of January 1, 2000, meets all of the following requirements: (1) Is unincorporated territory. (2) Contains at least 100 acres. (3) Is surrounded or substantially surrounded by incorporated territory. (4) Contains at least 100 acres zoned for commercial or industrial uses or is designated on the applicable county general plan for commercial or industrial uses. SEC. 5. Section 56425.5 of the Government Code is amended to read: 56425.5. (a) A determination of a city's sphere of influence, in any case where that sphere of influence includes any portion of the redevelopment project area referenced in subdivision (e) of Section 33492.41 of the Health and Safety Code, shall not preclude any other local agency, as defined in Section 54951, including the redevelopment agency referenced in Section 33492.41 of the Health and Safety Code, in addition to that city, from providing facilities or services related to development, to or in that portion of the redevelopment project area that, as of January 1, 2000, meets all of the following requirements: (1) Is unincorporated territory. (2) Contains at least 100 acres. (3) Is surrounded or substantially surrounded by incorporated territory. (4) Contains at least 100 acres zoned for commercial or industrial uses or is designated on the applicable county general plan for commercial or industrial uses. (b) Facilities or services related to development may be provided by other local agencies to all or any portion of the area defined in paragraphs (1) to (4), inclusive, of subdivision (a). Subdivision (a) shall apply regardless of whether the determination of the sphere of influence is made before or after January 1, 2000. SEC. 6. Section 56650.5 of the Government Code is repealed. SEC. 7. Section 56654 of the Government Code is amended to read: 56654. (a) A proposal for a change of organization or a reorganization may be made by the adoption of a resolution of application by the legislative body of an affected local agency. (b) At least 21 days before the adoption of the resolution, the legislative body may give mailed notice of its intention to adopt a resolution of application to the commission and to each interested agency and each subject agency. The notice shall generally describe the proposal and the affected territory. (c) Except for the provisions regarding signers and signatures, a resolution of application shall contain all of the matters specified for a petition in Section 56700 and shall be submitted with a plan for services prepared pursuant to Section 56653. SEC. 7.5. Section 56654 of the Government Code is amended to read: 56654. (a) A proposal for a change of organization or a reorganization may be made by the adoption of a resolution of application by the legislative body of an affected local agency, except as provided in subdivision (b). (b) Notwithstanding Section 56700, a proposal for a change of organization that involves the exercise of new or different functions or classes of services, or the divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district, shall only be initiated by the legislative body of that special district in accordance with Sections 56824.10, 56824.12, and 56824.14. (c) At least 21 days before the adoption of the resolution, the legislative body may give mailed notice of its intention to adopt a resolution of application to the commission and to each interested agency and each subject agency. The notice shall generally describe the proposal and the affected territory. (d) Except for the provisions regarding signers and signatures, a resolution of application shall contain all of the matters specified for a petition in Section 56700 and shall be submitted with a plan for services prepared pursuant to Section 56653. SEC. 8. Section 56706 of the Government Code is amended to read: 56706. (a) Within 30 days, excluding Saturdays, Sundays, and holidays, after the date of receiving a petition, the executive officer shall cause the petition to be examined by, in the case of a registered voter petition, the county elections official, in accordance with Sections 9113 to 9115, inclusive, of the Elections Code, or in the case of a landowner petition, the county assessor, and shall prepare a certificate of sufficiency indicating whether the petition is signed by the requisite number of signers. (b) (1) Except as provided in paragraph (2), if the certificate of the executive officer shows the petition to be insufficient, the executive officer shall immediately give notice by certified mail of the insufficiency to the proponents, if any. That mailed notice shall state in what amount the petition is insufficient. Within 15 days after the date of the notice of insufficiency, a supplemental petition bearing additional signatures may be filed with the executive officer. (2) Notwithstanding paragraph (1), the proponents of the petition may, at their option, collect signatures for an additional 15 days immediately following the statutory period allowed for collecting signatures without waiting for notice of insufficiency. Any proponent choosing to exercise this option may not file a supplemental petition as provided in paragraph (1). (c) Within 10 days after the date of filing a supplemental petition, the executive officer shall examine the supplemental petition and certify in writing the results of his or her examination. (d) A certificate of sufficiency shall be signed by the executive officer and dated. That certificate shall also state the minimum signature requirements for a sufficient petition and show the results of the executive officer's examination. The executive officer shall mail a copy of the certificate of sufficiency to the proponents, if any. SEC. 9. Section 56758 of the Government Code is repealed. SEC. 10. Section 57080 of the Government Code is amended to read: 57080. (a) With respect to a proceeding initiated on or after January 1, 2014, when approved and authorized by the commission pursuant to Section 56375.3, Sections 57050, 57051, 57052, and 57078, shall apply and Section 57075 shall not apply. (b) The commission, not more than 30 days after conclusion of the hearing, shall make a finding regarding the value of written protests filed and not withdrawn and shall do either of the following: (1) Terminate proceedings if written protests have been filed and not withdrawn by 50 percent or more of the registered voters within the affected territory. (2) Order the territory annexed without an election. SEC. 11. The heading of Chapter 7 (commencing with Section 57176) of Part 4 of Division 3 of Title 5 of the Government Code is amended to read: CHAPTER 7. CONFIRMATION OF ELECTION RESULTS SEC. 12. Section 7.5 of this bill incorporates amendments to Section 56654 of the Government Code proposed by both this bill and AB 2484. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2009, (2) each bill amends Section 56654 of the Government Code, and (3) this bill is enacted after AB 2484, in which case Section 7 of this bill shall not become operative.