BILL ANALYSIS Ó AB 438 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 438 (Williams) - As Amended: April 4, 2011 Policy Committee: Local GovernmentVote:6-2 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill requires voter approval for the withdrawal of a library district from the county free library system, if that withdrawing entity will be operated by a private contractor. Specifically, this bill: 1)Requires that if the legislative body of a city or a library district intends to operate the city's or the district's library, with the help of a private contractor that will employ library staff, the legislative body must provide notice of the contemplated action and the date and place of the meeting at least once a week for two consecutive weeks prior to taking any action, in a newspaper, as specified 2)Requires that if the legislative body approves withdrawal from the county free library system, and decides to use a private contractor that will employ library staff, the proposal shall be submitted for voter approval at a regularly scheduled election. 3)If a majority of voters approve the withdrawal, the legislative body shall notify the county board of supervisors of approval by the voters to withdraw from the county free library system. The notice to withdraw shall not be effective until the succeeding year. FISCAL EFFECT Potential mandated costs to the state in excess of $150,000 to reimburse local governments that must have an election to approve the legislative body's decision. Costs depend on the AB 438 Page 2 number and size of jurisdictions required to have an election. In the event the library measure was the only measure on a regularly scheduled election, the costs could be much higher. COMMENTS 1)Purpose. The author wishes to provide taxpayers a clear right to determine how library services will be delivered in their communities by allowing them to vote on the matter in a regularly scheduled election. 2)Background. Existing law establishes noticing requirements when a city wants to withdraw from a county free library system. In addition, there is a specified process for the withdrawal of cities from the Los Angeles County free library system and the Riverside County free library system, which requires those counties to transfer to a city or library district the portion of property tax proceeds attributable to that city or district and establishes provisions relating to the right of the withdrawing entity to acquire county library facilities under specified conditions. 3)Timing. The bill could add significant additional time before contracting could be implemented. If a legislative body makes a decision, they may have to wait two years for a regularly scheduled election and then wait until the next year for the decision to take effect. If contracting is being done because the legislative body believes it will save money, the alternative may be to shut down a library or drastically reduce library services to gain the savings in the interim. 4)Amendment needed. The term "employ library staff" is vague and suggests that this bill applies to situations where the private entity is hiring library staff that worked or formerly worked for the local government. The bill's requirements could then be circumvented by choosing a private contractor who would not employ library staff. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081 AB 438 Page 3