BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 46| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 46 Author: John A. Pérez (D) Amended: 6/28/11 in Senate Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 6-3, 06/22/11 AYES: Wolk, DeSaulnier, Hancock, Hernandez, Kehoe, Liu NOES: Huff, Fuller, La Malfa ASSEMBLY FLOOR : 62-7, 04/28/11 - See last page for vote SUBJECT : Local government: cities SOURCE : Author DIGEST : This bill establishes a uniform disincorporation process for any city with a population of less than 150 persons as of January 1, 2010, and allows that city's respective county board of supervisors to vote to continue the existence of that city within the county's boundaries in certain circumstances. ANALYSIS : The California Constitution requires the Legislature to "prescribe uniform procedure for city formation and provide for city powers." The Constitution also prohibits the annexation of a city to or consolidation with another city without the approval of the city's voters. The Cortese-Knox-Hertzberg Act controls how local officials CONTINUED AB 46 Page 2 change the boundaries of cities and special districts, putting local agency formation commissions (LAFCOs) in control. LAFCOs' boundary decisions must be consistent with "spheres of influence" which LAFCOs adopt to show the future boundaries and service areas of the cities and special districts. Before LAFCOs can adopt their spheres of influence, they must prepare "municipal service reviews" which review population growth, public facilities, and service demands. Besides the more common annexations to cities and special districts, LAFCOs also control city incorporations, consolidations, and disincorporations as well as special district formations, consolidations, and dissolutions. This bill disincorporates every city that had fewer than 150 people as of January 1, 2010. This bill exempts these disincorporations from specified provisions of the Cortese-Knox-Hertzberg Act. The bill specifically applies the Act's provisions for terms and conditions for disincorporated cities. This bill requires LAFCO to oversee these conditions. This bill allows LAFCO to enforce its provisions with writs of mandate. The bill allows a county board of supervisors to continue a city in existence if the board determines within 90 days of the bill's effective date that continuing the city would serve a public purpose. The board must find that the city is in an isolated, rural location that makes it impractical for residents to organize another form of local governance. If the board meets these conditions, the city will not disincorporate. This bill is contingent upon the enactment of AB 781 (J. Perez). Comments This bill establishes a uniform disincorporation process for any city with a population of less than 150 persons as of January 1, 2010, according to the Department of Finance's official records. The disincorporated territory would then become part of the county unincorporated area, CONTINUED AB 46 Page 3 unless the county board of supervisors votes to continue the city in existence because the city meets specified conditions in the bill. If the disincorporation carries, the county's LAFCO would be responsible for the unwinding of the former city's affairs and debts. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/28/11) Adult Day Health Care Association Bienestar Central City Association City of Los Angeles City of Maywood Coalition for Clean Air Common Cause Communications Workers of America, Local 9000 Communities for a Better Environment County of Kern County of Los Angeles Huntington Park City Councilman Andy Molina Huntington Park City Councilman Elba Guerrero LA Voice PICO Latino Business Chamber of Greater Los Angeles Los Angeles County Sheriff's Department Monica Garcia, President of the Los Angeles Unified School District Board Mayor of the City of Fresno Mayor of the City of Los Angeles Mayor of the City of Santa Ana Mona Field, Los Angeles Community College Board of Trustees Mothers of East Los Angeles Mujeres de la Tierra Nancy Pearlman, Los Angeles Community College Board of Trustees National Association of Women Business Owners Service Employees International Union William C. Velasquez Institute Richard Polanco, Chairman of the California Legislative Latino Institute for Public Policy OPPOSITION : (Verified 6/28/11) CONTINUED AB 46 Page 4 All American Manufacturing AmeriPride Uniform Services Baker Commodities Bandini Truck Terminal Ben's General Store Berney-Karp Inc. Bricklayers & Allied Craftworkers, Local 4 Brotherhood of Locomotive Engineers & Trainmen California Contract Cities Association California Labor Federation California Manufacturers & Technology Association California Teamsters Public Affairs Council Cargill Meat Solutions Castle & Cooke Cold Storage Charlie's Pride Meats City of Cerritos City of Vernon Clean Foods, Inc. Coast Packing Command Packaging Cooperative Purchasers CR Laurence Company Crown Poly, Inc. Culver City Meat Company Douglas Steel Company Epic Textiles, Inc. F. Gaviña & Sons, Inc. Farmer John Meats Food Industry Business Roundtable Golberg and Solovy Foods, Inc. Hercules Forwarding, Inc. IBEW, Local 47 International Association of Machinist and Aerospace Workers, Local 947 Jobbers Meat Packing Company, Inc. Kal Plastics/Tom York Enterprises King Meat, Inc. L.A. Washrack League of California Cities Los Angeles Area Chamber of Commerce Los Angeles County Business Federation Los Angeles County Federation of Labor Los Angeles/Orange Counties Building and Construction CONTINUED AB 46 Page 5 Trades Council Marantz & Associates Mt. Vernon Industrial Nai Capital National Meat Association Neptune Foods Overhill Farms PABCO Paper Pacific Coast Coffee Association Papa Cantella's, Inc. Petrelli Electric Preferred Freezer ProCases, Inc. Purchase Environment Consulting & Analytics, LLC Rehrig Paper Company Rite-Way Meat Packers, Inc. Rose and Shore Rose Meat Services, Inc. Sir Speedy Square H Brands, Inc. Steel Services Company Sweetner Products T & T Foods, Inc. Teamsters Joint Council 7 Teamsters Joint Council 42 Teamsters, Local 63 Teamsters, Local 572 Teamsters, Local 848, Division 56 Teamsters, Local 986 The Ligature Tom Anderson of Morgan Stanley Tool & Abrasive Supply, Inc. True World Foods Los Angeles, LLC U.S. Growers Cold Storage, Inc. UFCW, Local 770 Union Ice Company United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, Local 345 United Food Group, Inc. United Steel Fence Company United Transportation Union Valley Industry & Commerce Association Vernon Chamber of Commerce CONTINUED AB 46 Page 6 Vernon Police Officers' Benefit Association Vivion Inc. Walters Wholesale Electric Wayne Provision Company West Coast Protective League, Glass Molders, Pottery, Plastic International Union Yonekyu USA, Inc. ARGUMENTS IN SUPPORT : According to the author's office, smaller cities often lack the needed checks and balances that all levels of government deserve. When the population is so small, the burden of monitoring government activities falls on the few and therefore no real protections exist. Additionally, cities with very small populations may face political instability because there are too few residents to support the government, and this may contribute to public corruption, voter fraud, and stalled growth. ARGUMENTS IN OPPOSITION : The City of Vernon argues that this bill will have a harmful impact on the city employees and private business located in Vernon. The California Teamsters Public Affairs Council states that Vernon is an industrial city and is set up to serve industrial enterprises in an efficient and cost effective way. The Teamsters argues that Vernon's energy prices are far lower in comparison to other service providers, and Vernon has one of the few specialized hazardous materials trained fire department, which has led to lower fire insurance rates. Additionally, the California Contract Cities Association believes that this bill is "an attempt to usurp the authority of a city to exercise local control over planning and land use decisions" and that the bill's precedent could potentially "impact any city in California should the Legislature wish to impose its misguided authority in the future." ASSEMBLY FLOOR : 62-7, 04/28/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Halderman, Hall, Hayashi, Roger Hernández, CONTINUED AB 46 Page 7 Hill, Huber, Hueso, Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, Miller, Mitchell, Monning, Nestande, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Torres, Wieckowski, Williams, Yamada, John A. Pérez NOES: Conway, Donnelly, Grove, Hagman, Mansoor, Morrell, Swanson NO VOTE RECORDED: Garrick, Gorell, Harkey, Jones, Knight, Logue, Mendoza, Nielsen, Valadao, Wagner, Vacancy AGB:nl 6/28/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED