BILL NUMBER: AB 438	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 16, 2011

INTRODUCED BY   Assembly Member Williams

                        FEBRUARY 14, 2011

   An act to amend Sections 19104, 19106, and 19116 of the Education
Code, relating to libraries.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 438, as amended, Williams. County free libraries: withdrawal.
   Existing law provides that the county boards of supervisors may
establish and maintain, within their respective counties, county free
libraries pursuant to specified provisions of law. Existing law
provides that the board of trustees, common council, or other
legislative body of any city or the board of trustees of any library
district may, on or before January 1st of any year, notify the board
of supervisors that the city or library district no longer desires to
be a part of the county free library system, as specified.
   This bill would require that if the city's trustees, common
council, or legislative body or the board of trustees of a library
district intends to operate the city's or the district's library or
libraries itself with the help of a private  company
  contractor  that will employ library staff, that
notice to the county board of supervisors be preceded by voter
approval of the decision to withdraw from the county free library
system and to  employ   use  a private
contractor  that will employ library staff  to operate the
city's or the district's library or libraries.
   Existing law requires that before any board of trustees, common
council, or other legislative body of any city, or the board of
trustees of any library district gives notice that the city or
library district desires to become a part of the county free library
system, or gives notice of withdrawal from the system, that notice of
the contemplated action be published, as specified.
   This bill would provide that no notice need be given if the voters
have approved the withdrawal pursuant to the provisions discussed
above.
   This bill would make other conforming changes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 19104 of the Education Code is amended to read:

   19104.  The board of trustees, common council, or other
legislative body of any city or the board of trustees of any library
district may, on or before January 1st of any year, notify the county
board of supervisors that the city or library district no longer
desires to be a part of the county free library system. If the city's
trustees, common council, or legislative body or the board of
trustees of a library district intends to operate the city's or the
district's library or libraries itself with the help of a private
 company   contractor  that will employ
library staff, this notice shall be preceded by voter approval at a
regularly scheduled election of the decision to withdraw from the
county free library system and to  employ   use
 a private contractor  that will employ library staff 
to operate the city's or the district's library or libraries. The
notice shall be accompanied by a statement complying with the
requirements of Chapter 8 (commencing with Section 54900) of Part 1
of Division 2 of Title 5 of the Government Code. The clerk of the
county board of supervisors shall file the statement with the county
assessor and the State Board of Equalization. Thereafter, the city or
library district shall cease to participate in the benefits of the
county free  library,   library system, 
and the property situated in the city or library district shall not
be liable  to   for  taxes for county free
library purposes.
  SEC. 2.  Section 19106 of the Education Code is amended to read:
   19106.  Before any board of trustees, common council, or other
legislative body of any city, or the board of trustees of any library
district gives notice that the city or library district desires to
become a part of the county free library system, or gives notice of
withdrawal from the system, the board of trustees, common council, or
other legislative body of the city or the board of trustees of the
library district shall publish at least once a week for two
successive weeks prior to the giving of either notice, in a newspaper
designated by the board of trustees, common council, or other
legislative body of the city or the board of trustees of the library
district, and circulating throughout the city or library district,
notice of the contemplated action, giving the date and the place of
the meeting at which the contemplated action is proposed to be taken
unless the voters have approved withdrawal pursuant to Section 19104.

  SEC. 3.  Section 19116 of the Education Code is amended to read:
   19116.  (a) Sections 19104 and 19105 are not applicable to the
withdrawal of a city or library district from the county free library
system in Los Angeles County or Riverside County. The legislative
body of any city or the board of trustees of any library district,
whose jurisdiction is within the County of Los Angeles or the County
of Riverside, may notify the board of supervisors for Los Angeles
County or Riverside County, as appropriate, that the city or library
district no longer desires to be a part of the county free library
system. In the event that the city's legislative body or the library
district's board of trustees intends to operate the city or district'
s library or libraries itself, with the help of a private 
company  contractor  that will employ library
staff, that notice shall be preceded by voter approval at a regularly
scheduled election on the decision to withdraw and to 
employ   use  a private contractor  that will
employ library staff to operate the city or district's library or
libraries  . The notice shall state whether the city or library
district intends to acquire property pursuant to subdivision (c). The
board of supervisors shall transmit a copy of the notice to the Los
Angeles County Assessor or Riverside County Assessor, as appropriate,
the Los Angeles County Auditor or Riverside County Auditor, as
appropriate, and the State Board of Equalization.
   (b) When a city or library district files a notice pursuant to
subdivision (a), it shall remain a member of the county free library
system until July 1 of the base year or the date on which property is
transferred pursuant to subdivision (c), whichever date is later.
Upon ceasing to be a member of the county free library system, the
city or library district shall not participate in any benefits of the
county free library system, and shall assume the responsibility for
the provision of library services within its jurisdiction. Unless
otherwise agreed by July 1 of the base year in writing by the Board
of Supervisors of Los Angeles County or the Board of Supervisors of
Riverside County, as appropriate, and the withdrawing city or library
 system  district, an amount of property tax revenue equal
to the property tax revenues allocated to the county free library
pursuant to Article 2 (commencing with Section 96) of Chapter 6 of
Part 0.5 of Division 1 of the Revenue and Taxation Code in the fiscal
year prior to the base year and that were derived from property
situated within the boundaries of the withdrawing entity shall be
allocated to and used to maintain library services by the withdrawing
entity in the base year and, adjusted forward, in each fiscal year
thereafter at the same time allocations are made pursuant to Article
2 (commencing with Section 96) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code. This subdivision shall not apply
to property tax revenues that have been pledged to repay bonded
indebtedness of the county free  library.  
library system. 
   (c) If there are one or more county library facilities within the
territorial boundaries of the withdrawing entity at the time the
withdrawing entity provides notice pursuant to subdivision (a), the
withdrawing entity shall have the right to acquire any or all of
those facilities from the county and the county shall, no later than
July 1 of the base year, transfer to the withdrawing entity each
facility to be acquired and the personal property therein related to
the provision of library services. If the facility or personal
property was purchased with bond proceeds or other forms of
indebtedness, acquisition shall only take place if the withdrawing
entity assumes any remaining indebtedness and in no way impairs the
repayment thereof. If the withdrawing entity opts not to acquire any
facilities or personal property, the county at its discretion may
dispose of the facilities or personal property or convert the use of
those facilities or personal property, including transferring
collections and other personal property to other sites and converting
facilities to other purposes. If the withdrawing entity opts to
acquire any facilities or personal property, the acquisition prices
shall be as follows unless otherwise provided for by statute or
contract:
   (1) Each county library facility which, for the purposes of this
section, shall include the real property upon which the facility is
located and any fixtures therein and shall not include computer
systems and software, shall be transferred for the lesser of:
   (A) No cost, if the facility was donated to the county by the
withdrawing entity.
   (B) The price paid to the withdrawing entity by the county for the
facility, if the county bought the facility from the withdrawing
entity. However, if the county constructed capital improvements to
the facility after it was bought from the withdrawing entity, the
county's total out-of-pocket costs for the capital improvement
excluding any costs for routine repairs, restoration or maintenance,
shall be added to the price.
   (C) The fair market value of the facility. However, if any portion
of the facility was donated to the county by the withdrawing entity
or if any moneys were donated by the withdrawing entity towards the
county's construction or acquisition of the facility or any portion
thereof, the value of the donation shall be subtracted from the fair
market value.
   (2) Any personal property within the facility related to the
provision of library services, including books and resource
materials, computer systems and software, furniture, and furnishings,
shall be transferred for the lesser of:
   (A) No cost, if the property was donated to the county by the
withdrawing entity.
   (B) The fair market value of the personal property. However, on or
before the March 1 preceding the July 1 of the base year, the county
librarian may designate collections of resource books and materials
that are unique in, and integral to, the county free library system
to be special collections. The special collections shall be acquired
by the withdrawing entity only upon mutually agreeable terms and
conditions.
   (d) If a facility transferred pursuant to subdivision (c) serves
residents of surrounding jurisdictions, the board of supervisors
governing the county free library system may require, as a condition
of transferring the facility, that the library services provided by
the withdrawing entity to its residents also be available on the same
basis to the residents of the surrounding jurisdictions. However, if
the withdrawing entity contributes to the provision of library
services from other city funds, or through taxes, assessments, or
fees of its residents, the withdrawing entity may provide additional
services to its residents. If the requirement to provide regional
services is imposed and, unless otherwise agreed in writing by the
county and the withdrawing entity by July 1 of the base year, an
amount of property tax revenues equal to the property tax revenues
derived from property situated in the surrounding jurisdictions which
were, in the fiscal year prior to the base year, allocated to the
county free library system pursuant to Article 2 (commencing with
Section 96) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and
Taxation Code shall be allocated to and used to maintain library
services by the withdrawing entity in the base year and, adjusted
forward, in each fiscal year thereafter at the same time other
allocations are made pursuant to Article 2 (commencing with Section
96) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and
Taxation Code. This subdivision shall not apply to property tax
revenues that have been pledged to repay bonded indebtedness. If a
surrounding jurisdiction subsequently provides notice of its intent
to withdraw from the county free library system pursuant to
subdivision (a), on the date the surrounding jurisdiction ceases to
participate in the benefits of the county free library system
pursuant to subdivision (b), the withdrawing entity shall no longer
be required to make library services available to the residents of
the surrounding jurisdiction and property tax revenues derived from
property situated in the surrounding jurisdiction shall no longer be
allocated to the withdrawing entity pursuant to this subdivision.
   (e) For purposes of this section, the following terms are defined
as follows:
   (1) "Base year" means the fiscal year commencing on the July 1
following the December 2 following the date of the notice given
pursuant to subdivision (a) of this section.
   (2) "Fair market value" means:
   (A) Any value agreed upon by the withdrawing entity and the
county.
   (B) If no agreement as to value is reached by the March 1
preceding the July 1 of the base year, the value assigned by an
appraiser agreed upon by the withdrawing entity and the county.
   (C) If no agreement as to the appointment of an appraiser is
reached pursuant to subparagraph (B) by the April 1 preceding the
July 1 of the base year, the value assigned by an appraiser agreed
upon between the withdrawing entity's appraiser and the county's
appraiser.
   (D) If no agreement as to the appointment of an appraiser is
reached pursuant to subparagraph (C) by the May 1 preceding the July
1 of the base year, the value assigned by a state certified appraiser
designated by the withdrawing entity. The designated appraiser shall
provide the appraisal in writing to the county no later than the
June 1 preceding the July 1 of the base year.
   (E) The withdrawing entity shall reimburse the county for any
appraisal costs the county incurs in determining the fair market
value pursuant to this section.
   (3) "Surrounding jurisdictions" means cities and library districts
that are adjacent to the withdrawing entity and tax rate areas in
unincorporated areas of the county that are wholly or partially
within the withdrawing entity's sphere of influence, that are within
the county free library system and have no facility within their
territorial boundaries providing library services at the time the
withdrawing entity provides notice pursuant to subdivision (a).