BILL NUMBER: SB 1023	CHAPTERED
	BILL TEXT

	CHAPTER  68
	FILED WITH SECRETARY OF STATE  JULY 9, 2010
	APPROVED BY GOVERNOR  JULY 9, 2010
	PASSED THE SENATE  MAY 10, 2010
	PASSED THE ASSEMBLY  JUNE 24, 2010
	AMENDED IN SENATE  APRIL 27, 2010

INTRODUCED BY   Senator Wiggins
   (Coauthor: Assembly Member Evans)

                        FEBRUARY 11, 2010

   An act to amend Section 57077 of, and to add and repeal Sections
56853.5 and 56853.6 of, the Government Code, relating to local
government.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1023, Wiggins. Special districts: consolidation and
reorganization.
   The Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000 requires a local agency formation commission to approve, without
an election, a consolidation or reorganization of 2 or more local
agencies, if a majority of the members of each of the legislative
bodies of the agencies adopt substantially similar resolutions of
application making proposals either for the consolidation of
districts or for the reorganization of all or any part of the
districts into a single local agency, as specified.
   The Community Services District Law authorizes the organization of
a community services district for various purposes, including, among
others, the collection, treatment, or disposal of sewage,
wastewater, recycled water, and stormwater, providing fire protection
services, and providing public library services.
   This bill would, until January 1, 2018, authorize the local agency
formation commission to approve or conditionally approve an
expedited reorganization of specified districts into a community
services district, with the same powers, duties, responsibilities,
obligations, liabilities, and jurisdiction of the district proposed
to be dissolved, unless the governing body of the district proposed
to be dissolved files a resolution of objection with the commission,
as specified.
   The bill would also, until January 1, 2018, authorize the El
Dorado County Local Agency Formation Commission to approve,
disapprove, or conditionally approve an accelerated reorganization of
the Tahoe Paradise Resort Improvement District under specified
circumstances, and would declare the need for a special statute
addressing that reorganization.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 56853.5 is added to the Government Code, to
read:
   56853.5.  (a) In the case of an expedited reorganization,
notwithstanding any provision of this division or the Community
Services District Law (Division 3 (commencing with Section 61000) of
Title 6), unless the governing body of the subject agency files a
resolution of objection with the commission before the close of the
hearing held pursuant to Section 56666, the commission may approve,
disapprove, or conditionally approve, the expedited reorganization.
If the commission approves or conditionally approves the expedited
reorganization, the commission shall order the expedited
reorganization without an election.
   (b) If the governing body of the subject agency files a resolution
of objection with the commission before the close of the hearing
held pursuant to Section 56666, the commission shall disapprove the
proposed expedited reorganization.
   (c) The commission may order any material change to the terms and
conditions of the expedited reorganization set forth in the proposal.
The commission shall direct the executive officer to give the
subject agency mailed notice of any change prior to ordering a
change. The commission shall not, without the written consent of the
subject agency, take any further action on the expedited
reorganization for 30 days following that mailing.
   (d) A proposal for an expedited reorganization shall include
proposed terms and conditions that shall include at least all of the
following:
   (1) The proposed community services district is declared to be,
and shall be deemed a community services district as if the district
had been formed pursuant to the Community Services District Law
(Division 3 (commencing with Section 61000) of Title 6). The exterior
boundary and sphere of influence of the proposed community services
district shall be the exterior boundary and sphere of influence of
the district proposed to be dissolved.
   (2) The proposed community services district succeeds to, and is
vested with, the same powers, duties, responsibilities, obligations,
liabilities, and jurisdiction of the district proposed to be
dissolved.
   (3) The status, position, and rights of any officer or employee of
the district proposed to be dissolved shall not be affected by the
transfer and shall be retained by the person as an officer or
employee of the proposed community services district.
   (4) The proposed community services district shall have ownership,
possession, and control of all books, records, papers, offices,
equipment, supplies, moneys, funds, appropriations, licenses,
permits, entitlements, agreements, contracts, claims, judgments,
land, and other assets and property, real or personal, owned or
leased by, connected with the administration of, or held for the
benefit or use of, the district proposed to be dissolved.
   (5) The unexpended balance as of the effective date of the
expedited reorganization of any funds available for use by the
district proposed to be dissolved shall be available for use by the
proposed community services district.
   (6) No payment for the use, or right of use, of any property, real
or personal, acquired or constructed by the district proposed to be
dissolved shall be required by reason of the succession pursuant to
the expedited reorganization, nor shall any payment for the proposed
community services district's acquisition of the powers, duties,
responsibilities, obligations, liabilities, and jurisdiction be
required by reason of that succession.
   (7) All ordinances, rules, and regulations adopted by the district
proposed to be dissolved in effect immediately preceding the
effective date of the expedited reorganization, shall remain in
effect and shall be fully enforceable unless amended or repealed by
the proposed community services district, or until they expire by
their own terms. Any statute, law, rule, or regulation in force as of
the effective date of the expedited reorganization, or that may be
enacted or adopted with reference to the district proposed to be
dissolved shall mean the proposed community services district.
   (8) All allocations of shares of property tax revenue pursuant to
Part 0.5 (commencing with Section 50) of the Revenue and Taxation
Code, special taxes, benefit assessments, fees, charges, or any other
impositions of the district proposed to be dissolved shall remain in
effect unless amended or repealed by the proposed community services
district, or they expire by their own terms.
   (9) The appropriations limit established pursuant to Division 9
(commencing with Section 7900) of Title 1 of the district proposed to
be dissolved shall be the appropriations limit of the proposed
community services district.
   (10) Any action by or against the district proposed to be
dissolved shall not abate, but shall continue in the name of the
proposed community services district, and the proposed community
services district shall be substituted for the district proposed to
be dissolved by the court in which the action is pending. The
substitution shall not in any way affect the rights of the parties to
the action.
   (11) No contract, lease, license, permit, entitlement, bond, or
any other agreement to which the district proposed to be dissolved is
a party shall be void or voidable by reason of the enactment of the
expedited reorganization, but shall continue in effect, with the
proposed community services district assuming all of the rights,
obligations, liabilities, and duties of the district proposed to be
dissolved.
   (12) Any obligations, including, but not limited to, bonds and
other indebtedness, of the district proposed to be dissolved shall be
the obligations of the proposed community services district. Any
continuing obligations or responsibilities of the district proposed
to be dissolved for managing and maintaining bond issuances shall be
transferred to the proposed community services district without
impairment to any security contained in the bond instrument.
   (e) If a board of supervisors is the governing body of a resort
improvement district pursuant to Chapter 1 (commencing with Section
13000) of Division 11 of the Public Resources Code, then,
notwithstanding paragraph (3) of subdivision (d), the proposed terms
and conditions may provide for the election of an initial board of
directors of a community services district pursuant to Chapter 1
(commencing with Section 61020) of Part 2 of Division 3 of Title 6.
   (f) As used in this section, "expedited reorganization" means a
reorganization that consists solely of the formation of a community
services district and the dissolution of any of the following:
   (1) A resort improvement district formed pursuant to the Resort
Improvement District Law, Division 11 (commencing with Section 13000)
of the Public Resources Code.
   (2) The Montalvo Municipal Improvement District formed pursuant to
Chapter 549 of the Statutes of 1955.
   (3) The Bethel Island Municipal Improvement District formed
pursuant to Chapter 22 of the Statutes of 1960.
   (4) The Embarcadero Municipal Improvement District formed pursuant
to Chapter 81 of the Statutes of 1960.
   (g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later statute which
is enacted before January 1, 2018, deletes or extends that date.
  SEC. 2.  Section 56853.6 is added to the Government Code, to read:
   56853.6.  (a) In the case of an accelerated reorganization,
notwithstanding any provision of this division or the Recreation and
Park District Law (Chapter 4 (commencing with Section 5780) of
Division 5 of the Public Resources Code), unless the governing body
of the Tahoe Paradise Resort Improvement District files a resolution
of objection with the El Dorado County Local Agency Formation
Commission before the close of the hearing held pursuant to Section
56666, the commission may approve, disapprove, or conditionally
approve, the accelerated reorganization. If the commission approves
or conditionally approves the accelerated reorganization, the
commission shall order the accelerated reorganization without an
election.
   (b) If the governing body of the Tahoe Paradise Resort Improvement
District files a resolution of objection with the commission before
the close of the hearing held pursuant to Section 56666, the
commission shall disapprove the proposed accelerated reorganization.
   (c) The commission may order any material change to the terms and
conditions of the accelerated reorganization set forth in the
proposal. The commission shall direct the executive officer to give
the Tahoe Paradise Resort Improvement District mailed notice of any
change prior to ordering a change. The commission shall not, without
the written consent of the Tahoe Paradise Resort Improvement
District, take any further action on the accelerated reorganization
for 30 days following that mailing.
   (d) A proposal for an accelerated reorganization shall include
proposed terms and conditions that shall include, but are not limited
to, all of the following:
   (1) The proposed recreation and park district is declared to be,
and shall be deemed, a recreation and park district as if the
district had been formed pursuant to the Recreation and Park District
Law (Chapter 4 (commencing with Section 5780) of Division 5 of the
Public Resources Code). The exterior boundary and sphere of influence
of the proposed recreation and park district shall be the exterior
boundary and sphere of influence of the Tahoe Paradise Resort
Improvement District.
   (2) The proposed recreation and park district succeeds to, and is
vested with, the same powers, duties, responsibilities, obligations,
liabilities, and jurisdiction of the Tahoe Paradise Resort
Improvement District.
   (3) The status, position, and rights of any officer or employee of
the Tahoe Paradise Resort Improvement District shall not be affected
by the transfer and shall be retained by the person as an officer or
employee of the proposed recreation and park district.
   (4) The proposed recreation and park district shall have
ownership, possession, and control of all books, records, papers,
offices, equipment, supplies, moneys, funds, appropriations,
licenses, permits, entitlements, agreements, contracts, claims,
judgments, land, and other assets and property, real or personal,
owned or leased by, connected with the administration of, or held for
the benefit or use of, the Tahoe Paradise Resort Improvement
District.
   (5) The unexpended balance as of the effective date of the
accelerated reorganization of any funds available for use by the
Tahoe Paradise Resort Improvement District shall be available for use
by the proposed recreation and park district.
   (6) No payment for the use, or right of use, of any property, real
or personal, acquired or constructed by the Tahoe Paradise Resort
Improvement District shall be required by reason of the succession
pursuant to the accelerated reorganization, nor shall any payment for
the proposed recreation and park district's acquisition of the
powers, duties, responsibilities, obligations, liabilities, and
jurisdiction be required by reason of that succession.
   (7) All ordinances, rules, and regulations adopted by the Tahoe
Paradise Resort Improvement District in effect immediately preceding
the effective date of the accelerated reorganization, shall remain in
effect and shall be fully enforceable unless amended or repealed by
the proposed recreation and park district, or until they expire by
their own terms. Any statute, law, rule, or regulation in force as of
the effective date of the accelerated reorganization, or that may be
enacted or adopted with reference to the Tahoe Paradise Resort
Improvement District shall mean the proposed recreation and park
district.
   (8) All allocations of shares of property tax revenue pursuant to
Part 0.5 (commencing with Section 50) of the Revenue and Taxation
Code, special taxes, benefit assessments, fees, charges, or any other
impositions of the Tahoe Paradise Resort Improvement District shall
remain in effect unless amended or repealed by the proposed
recreation and park district, or they expire by their own terms.
   (9) The appropriations limit established pursuant to Division 9
(commencing with Section 7900) of Title 1 of the Tahoe Paradise
Resort Improvement District shall be the appropriations limit of the
proposed recreation and park district.
   (10) Any action by or against the Tahoe Paradise Resort
Improvement District shall not abate, but shall continue in the name
of the proposed recreation and park district, and the proposed
recreation and park district shall be substituted for the Tahoe
Paradise Resort Improvement District by the court in which the action
is pending. The substitution shall not in any way affect the rights
of the parties to the action.
   (11) No contract, lease, license, permit, entitlement, bond, or
any other agreement to which the Tahoe Paradise Resort Improvement
District is a party shall be void or voidable by reason of the
enactment of the accelerated reorganization, but shall continue in
effect, with the proposed recreation and park district assuming all
of the rights, obligations, liabilities, and duties of the Tahoe
Paradise Resort Improvement District.
   (12) Any obligations, including, but not limited to, bonds and
other indebtedness, of the Tahoe Paradise Resort Improvement District
shall be the obligations of the proposed recreation and park
district. Any continuing obligations or responsibilities of the Tahoe
Paradise Resort Improvement District for managing and maintaining
bond issuances shall be transferred to the proposed recreation and
park district without impairment to any security contained in the
bond instrument.
   (e) As used in this section, "accelerated reorganization" means a
reorganization that consists solely of the dissolution of the Tahoe
Paradise Resort Improvement District and the formation of a
recreation and park district.
   (f) This section shall remain in effect only until January 2,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
  SEC. 3.  Section 57077 of the Government Code is amended to read:
   57077.  (a) If a change of organization consists of a dissolution,
disincorporation, incorporation, establishment of a subsidiary
district, consolidation, or merger, the commission shall do either of
the following:
   (1) Order the change of organization subject to confirmation of
the voters, or in the case of a landowner-voter district, subject to
confirmation by the landowners, unless otherwise stated in the
formation provisions of the enabling statute of the district or
otherwise authorized pursuant to Section 56854.
   (2) Order the change of organization without election if it is a
change of organization that meets the requirements of Section 56854,
57081, 57102, or 57107; otherwise, the commission shall take the
action specified in paragraph (1).
   (b) If a reorganization consists of one or more dissolutions,
incorporations, formations, disincorporations, mergers,
establishments of subsidiary districts, consolidations, or any
combination of those proposals, the commission shall do either of the
following:
   (1) Order the reorganization subject to confirmation of the
voters, or in the case of landowner-voter districts, subject to
confirmation by the landowners, unless otherwise authorized pursuant
to Section 56854.
   (2) Order the reorganization without election if it is a
reorganization that meets the requirements of Section 56853.5,
56853.6, 56854, 57081, 57102, 57107, or 57111; otherwise, the
commission shall take the action specified in paragraph (1).
  SEC. 4.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances of the El Dorado County Local
Agency Formation Commission and the Tahoe Paradise Resort Improvement
District. The facts constituting the special circumstances are:
   The Tahoe Paradise Resort Improvement District is the only resort
improvement district in the County of El Dorado. The El Dorado County
Local Agency Formation Commission seeks the opportunity to
accelerate the procedures for the concurrent dissolution of the Tahoe
Paradise Resort Improvement District and the formation of a
recreation and park district as its replacement. The procedures for a
reorganization or an expedited reorganization pursuant to the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
(Division 3 (commencing with Section 56000) of Title 5 of the
Government Code) do not permit the El Dorado County Local Agency
Formation Commission to convert the Tahoe Paradise Resort Improvement
District into a recreation and park district without an election.