BILL ANALYSIS Ó
AB 912
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ASSEMBLY THIRD READING
AB 912 (Gordon)
As Amended May 27, 2011
Majority vote
LOCAL GOVERNMENT 9-0
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|Ayes:|Smyth, Alejo, Bradford, | | |
| |Campos, Davis, Gordon, | | |
| |Hueso, Knight, Norby | | |
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SUMMARY : Establishes an expedited dissolution process for a
district recommended for dissolution by a prior action of a
local agency formation commission (LAFCO), in specified
conditions. Specifically, this bill :
1)Allows a LAFCO to do either of the following, if a change or
organization consists of the dissolution of a district that is
consistent with a prior action of the LAFCO in a specified
study, a sphere of influence update, or a municipal service
review:
a) If the dissolution is initiated by the district board,
immediately order the dissolution without an election or
protest proceedings pursuant to existing law; or,
b) If the district dissolution is initiated by an affected
local agency, by a LAFCO pursuant to existing law, or by
petition pursuant to existing law, order the dissolution
after holding at least one noticed public hearing, and
after conducting protest proceedings in accordance with
existing law.
2)Provides that if district dissolution is initiated by an
affected local agency, by a LAFCO, or by petition, the LAFCO
shall terminate proceedings if a majority protest exists in
accordance with provisions of existing law.
3)Provides that if a district dissolution is initiated by an
affected local agency, by a LAFCO, or by petition, that if no
majority protest is found, the LAFCO shall order the
dissolution without an election.
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EXISTING LAW :
1)Establishes the procedures for the organization and
reorganization of cities, counties, and special districts
under the Cortese-Knox-Hertzberg Local Reorganization Act of
2000 (ACT).
2)Defines "change of organization" to mean any of the following:
a) A city incorporation;
b) A district formation;
c) An annexation to, or detachment from, a city or
district;
d) A disincorporation of a city;
e) A consolidation of cities or special districts;
f) A merger or establishment of a subsidiary district; or,
g) A proposal for the exercise of new or different
functions or classes of services, or divestiture of the
power to provide particular functions or classes of
services, within all or part of the jurisdictional
boundaries of a special district.
1)Defines "dissolution" to mean the dissolution,
disincorporation, extinguishment, and termination of the
existence of a district and the cessation of all its corporate
powers, except as the LAFCO may otherwise provide pursuant to
existing law or for the purpose of winding up the affairs of
the district.
2)Provides, in the case of any reorganization or change of
organization, a majority protest is deemed to exist and the
proposed change of organization or reorganization shall be
abandoned if the LAFCO finds that written protests filed and
not withdrawn prior to the conclusion of the hearing represent
any of the following:
a) In the case of uninhabited territory, landowners owning
50% or more of the assessed value of the land within the
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territory;
b) In the case of inhabited territory, 50% or more of the
voters residing in the territory; or,
c) In the case of a landowner-voter district, 50% or more
of the voting power of the voters entitled to vote as a
result of owning land within the district.
3)Requires LAFCOs to conduct a service review of the municipal
services provided in the county or other appropriate area
designated by LAFCO, and in that municipal service review, the
LAFCO shall comprehensively review all of the agencies that
provide the identified service or services within that
designated geographic area.
4)Requires, if a change or organization consists of a
dissolution, the LAFCO to do either of the following:
a) 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 existing law; or,
b) Order the change of organization without election if it
is a change of organization that meets specified
requirements in current law.
FISCAL EFFECT : None
COMMENTS : Current law requires a LAFCO, when that LAFCO is
considering a change or organization that consists of a district
dissolution to either order a change of organization subject to
confirmation of the voters, or to order the change of
organization without an election if the change of organization
meets certain specified requirements.
According to the author, district reorganization is often
initiated by the affected district based on the LAFCO's or
district's analysis indicating that there will be improved
service delivery, cost savings, or efficiencies of scale from
that reorganization. However, for a district being dissolved,
this process can be cost prohibitive, as a successor agency
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would probably assume any debts of the district. The author
notes that by facilitating the dissolution of extraneous
districts, this bill encourages more efficient use of local
resources and delivery of local government services.
The provisions of this bill allow for an expedited process for
the dissolution of a district, if specified conditions are met,
thus saving time, resources, and potentially eliminating the
need for an election. This bill authorizes a LAFCO, for a
situation in which the LAFCO is considering a change of
organization that consists of the dissolution of a district
recommended for dissolution by a prior action of that LAFCO, to
do either one of the following: 1) immediately order the
dissolution if the dissolution was initiated by the district
board, without an election or protest proceedings; or, 2) if the
dissolution is initiated by an affected local agency, by the
LAFCO, or by petition pursuant to existing law, the LAFCO shall
order the dissolution after holding at least one noticed public
hearing, and after conducting protest proceedings in accordance
with existing law. If there is no majority protest, the LAFCO
must order the dissolution without an election, otherwise if
there is a majority protest, the LAFCO must terminate the
dissolution proceedings.
Recent amendments clarify that a "prior action of the LAFCO"
include those actions specified in a municipal service review, a
sphere of influence update, or specified studies undertaken by
LAFCOs. The amendments also clarify that if the dissolution of
a district is initiated by a party other than the district
itself, that the LAFCO must conduct protest proceedings in
accordance with existing law, and if a majority protest exists,
the LAFCO must terminate the proceedings. If no majority
protest is found, the LAFCO must order the district's
dissolution without an election. These amendments address
technical concerns raised by the California Special Districts
Association and the California Association of LAFCOs.
Support arguments: Dissolution of districts can be a lengthy
and expensive process. This bill provides for limited
circumstances for a quicker process to dissolve a district in
order to encourage more efficient delivery of local government
services.
Opposition arguments: Actions of a LAFCO to dissolve a district
as contained in a prior municipal service review or a sphere of
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influence update may not be relevant or may be out of date
several years after the review or update approved by the LAFCO.
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
FN: 0000828