BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                    AB 46|
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                                 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 
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          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, 

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          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)

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          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 

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          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

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          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, 

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            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

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