BILL NUMBER: AB 1430	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Local Government (Assembly Members Smyth
(Chair), Alejo (Vice Chair), Bradford, Campos, Davis, Gordon, Hueso,
and Norby)

                        APRIL 5, 2011

   An act to amend Sections 56011, 56012, 56013, 56014, 56015, 56017,
56020, 56020.5, 56020.7, 56021, 56023, 56024, 56029, 56031, 56033,
56034, 56035, 56036, 56038, 56039, 56040, 56041, 56043, 56044, 56046,
56047, 56047.5, 56048, 56049, 56051, 56052, 56053, 56055, 56056,
56057, 56062, 56065, 56066, 56069, 56070, 56073, 56074, 56075, 56078,
56100, 56127, 56128, 56375, 56383, 56428, 56757, 56864, and 57114
of, to amend and renumber Sections 56376 and 56376.5 of, to add
Sections 56017.1, 56017.2, 56020.6, 56032.5, 56036.5, 56036.6,
56050.5, 56069.5, and 56073.1 to, and to repeal Sections 56018,
56037, 56042, 56058, 56063, 56068, 56079, and 56080 of, the
Government Code, and to amend Section 101370 of the Public Utilities
Code, relating to local government.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1430, as introduced, Committee on Local Government. The
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
omnibus bill.
   Existing law defines various terms for purposes of the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
   This bill would revise various definitions within that act, and
would make other conforming and technical 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 56011 of the Government Code is amended to
read:
   56011.  "Affected city" means any city that  satisfies
either of the following conditions:   contains or would
contain, or whose sphere of influence contains or would contain,
territory for which a change of organization is proposed or ordered,
either singularly or as part of a reorganization.  
   (a) It contains, or its sphere of influence contains, territory
for which a change of organization is proposed or ordered either
singularly or as part of a reorganization.  
   (b) It would contain the territory described in subdivision (a) as
a result of proceedings for a change of organization or
reorganization taken pursuant to this division. 
  SEC. 2.  Section 56012 of the Government Code is amended to read:
   56012.  "Affected county" means  each   any
 county  which   that  contains, or
would contain, any territory for which a change of organization
 or reorganization  is proposed or ordered 
either singularly or as part of a reorganization  or 
which   that  contains all or any part of a
district for which a change of organization or reorganization is
proposed  or ordered  with respect to territory
outside that county.
  SEC. 3.  Section 56013 of the Government Code is amended to read:
   56013.  "Affected district" means  a   any
 special district, as defined by Section 56036,  which
  that  contains  or would contain  , or
whose sphere of influence contains  or would contain  , any
territory for which  a reorganization or  a change
of organization is proposed or ordered  either singularly or as
part of a reorganization  .
  SEC. 4.  Section 56014 of the Government Code is amended to read:
   56014.  "Affected local agency" means any local agency 
which   that  contains, or would contain, or whose
sphere of influence contains  or would contain  , any
territory  within any proposal or   for which a
change of organization is proposed or ordered, either singularly or
as part of a reorganization or for which a  study  is 
to be reviewed by the commission.
  SEC. 5.  Section 56015 of the Government Code is amended to read:
   56015.  "Affected territory" means any territory for which a
change of organization or reorganization  , or sphere of
influence change,  is proposed or ordered.
  SEC. 6.  Section 56017 of the Government Code, as added by Section
3 of Chapter 541 of the Statutes of 1985, is amended to read:
   56017.  "Annexation" means the  annexation, 
inclusion, attachment, or addition of territory to a city or
district.
  SEC. 7.  Section 56017.1 is added to the Government Code, to read:
   56017.1.  "Applicant" means a local agency or person or persons
that submits an application, as defined by Section 56017.2.
  SEC. 8.  Section 56017.2 is added to the Government Code, to read:
   56017.2.  "Application" means any of the following:
   (a) A resolution of application or petition initiating a change of
organization or reorganization with supporting documentation as
required by the commission or executive officer.
   (b) A request for a sphere of influence amendment or update
pursuant to Section 56425.
   (c) A request by a city or district for commission approval of an
extension of services outside the agency's jurisdictional boundaries
pursuant to Section 56133.
  SEC. 9.  Section 56018 of the Government Code is repealed. 

   56018.  "Benefit district" means a district, containing lands
which are, or will be, benefited by their inclusion within the
district, the owners of those lands being entitled, under state or
federal statutes or the California Constitution or the United States
Constitution, to notice by mail or personal service and hearing prior
to the inclusion of the lands within the district. 
  SEC. 10.  Section 56020 of the Government Code is amended to read:
   56020.  "Board of supervisors" means the  board of
supervisors   legislative body or governing board 
of a county.
  SEC. 11.  Section 56020.5 of the Government Code is amended to
read:
   56020.5.  "Certificate of completion" means the document prepared
by the executive officer and recorded with the county recorder that
confirms the final successful  resolution  
completion  of a change of organization or reorganization.
  SEC. 12.  Section 56020.6 is added to the Government Code, to read:

   56020.6.  "Certificate of filing" means the document issued by the
executive officer that confirms an application for a change of
organization or reorganization has met submission requirements and is
accepted for filing.
  SEC. 13.  Section 56020.7 of the Government Code is amended to
read:
   56020.7.  "Certificate of  "termination" or "certificate of
 termination of proceedings" means the document prepared by the
executive officer and retained by the commission that indicates that
a proposal for a change of organization or reorganization was
terminated because of a majority written protest  or
  ,  rejection by voters in an election  , or
the expiration of time prior to completion of proceedings pursuant to
Section 57001 or a court order  .
  SEC. 14.  Section 56021 of the Government Code is amended to read:
   56021.  "Change of organization" means any of the following:
   (a) A city incorporation.
   (b) A district formation.
   (c) An annexation to  , or detachment from,  a
city  or district  . 
   (d) An annexation to a district.  
   (e) A detachment from a city.  
   (f) A detachment from a district.  
   (d) 
    (g)  A disincorporation of a city. 
   (e) 
    (h)  A district dissolution. 
   (f) 
    (i)  A consolidation of cities  or special
districts  . 
   (j) A consolidation of special districts.  
   (g) 
    (k)  A merger  or establishment of a subsidiary
district   of a city and a district  . 
   (l) Establishment of a subsidiary district.  
   (h) A proposal for the 
    (m)     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
 as provided in Article 1.5 (commencing with Section 56824.10) of
Chapter 5 or Part 3 of this division  .
  SEC. 15.  Section 56023 of the Government Code is amended to read:
   56023.  "City" means any  incorporated  chartered or
general law city, including any city the name of which includes the
word "town."
  SEC. 16.  Section 56024 of the Government Code is amended to read:
   56024.  "City council" means the city council or legislative body
 or governing board  of a city.
  SEC. 17.  Section 56029 of the Government Code is amended to read:
   56029.  "Conducting authority" means the commission of the
principal county  of the entity proposing a change of
organization or reorganization, unless another conducting authority
is specified by law   , or the commission'   s
executive officer when authorized by the commission, when exercising
its responsibility to conduct protest proceedings following approval
by the commission of a change of organization or reorganization 
.
  SEC. 18.  Section 56031 of the Government Code is amended to read:
   56031.  (a) "Contiguous" means  both of the following:
  territory adjacent to territory within the local
agency.  
   (1) In the case of annexation, territory adjacent to, or territory
adjoining territory within, the local agency to which annexation is
proposed.  
   (2) In the case of consolidation, territory of a local agency or
agencies which is adjacent to, or adjoining the territory of, the
consolidating local agency or to the territory of another local
agency which is contiguous to the consolidating local agency and to
be consolidated with the consolidating local agency. 
   (b) Territory is not contiguous if the only contiguity is based
upon a strip of land more than 300 feet long and less than 200 feet
wide  at its narrowest width  , that width to be exclusive
of highways.
  SEC. 19.  Section 56032.5 is added to the Government Code, to read:

   56032.5.  "Dependent special district" or "dependent district"
includes any special district that has a legislative body that
consists, in whole or part, of ex officio members who are officers of
a county or another local agency, or who are appointees of those
officers, and who are not appointed to fixed terms. "Dependent
special district" or "dependent district" does not include any
district excluded from the definition of district contained in
Section 56063.
  SEC. 20.  Section 56033 of the Government Code is amended to read:
   56033.  "Detachment" means the  detachment, deannexation,
 exclusion, deletion, or removal from a city or district of
any portion of the territory of that city or district.
  SEC. 21.  Section 56034 of the Government Code is amended to read:
   56034.  "Disincorporation" means the disincorporation,
 dissolution, extinguishment,  and   or
 termination of the existence of a city and the cessation of
its corporate powers, except for the purpose of winding up the
affairs of the city.
  SEC. 22.  Section 56035 of the Government Code is amended to read:
   56035.  "Dissolution" means the  dissolution, 
disincorporation, extinguishment,  and   or
 termination of the existence of a district and the cessation of
all its corporate powers, except as the commission may otherwise
provide pursuant to Section 56886 or for the purpose of winding up
the affairs of the district.
  SEC. 23.  Section 56036 of the Government Code is amended to read:
   56036.  (a) "District" or "special district" means
  are synonymous and mean  an agency of the state,
formed pursuant to general law or special act, for the local
performance of governmental or proprietary functions within limited
boundaries  and in areas outside district boundaries when
authorized by the commission pursuant to Section 56133 .
 "District" 
    (b)     "District"  or "special
district" includes a county service area, but excludes all of the
following:
   (1) The state.
   (2) A county.
   (3) A city.
   (4) A school district or a community college district.
   (5)  A   An assessment district or 
special assessment district.
   (6) An improvement district.
   (7) A community facilities district formed pursuant to the
Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing
with Section 53311) of Part 1 of Division 2 of Title 5).
   (8) A permanent road division formed pursuant to Article 3
(commencing with Section 1160) of Chapter 4 of Division 2 of the
Streets and Highways Code.
   (9) An air pollution control district or an air quality
maintenance district.
   (10) A zone of any special district  including, but not
limited to, the following:   .  
   (A) A fire protection district.  
   (B) A mosquito abatement and vector control district. 

   (C) A public cemetery district.  
   (D) A recreation and park district.  
   (E) A community services district.  
   (F) A county service area.  
   (b) Except as otherwise provided in paragraph (1), each of the
entities listed in paragraph (1) is a "district" or a "special
district" for the purposes of this division.  
   (1) For the purposes of Chapter 1 (commencing with Section 57000)
to Chapter 7 (commencing with Section 57176), inclusive, of Part 4 or
Part 5 (commencing with Section 57300), none of the following
entities is a "district" or a "special district":  
   (A) A unified or union high school library district. 

   (B) A bridge and highway district.  
   (C) A joint highway district.  
   (D) A transit or rapid transit district.  
   (E) A metropolitan water district.  
   (F) A separation of grade district.  
   (2) Any proceedings pursuant to Part 4 (commencing with Section
57000) for a change of organization involving an entity described in
paragraph (1) shall be conducted pursuant to the principal act
authorizing the establishment of that entity.  
   (c) Except as otherwise provided in paragraph (1), each of the
entities listed in paragraph (1) is a "district" or "special district"
for purposes of this division.  
   (1) For the purposes of Chapter 1 (commencing with Section 57000)
to Chapter 7 (commencing with Section 57176), inclusive, of Part 4 or
Part 5 (commencing with Section 57300), none of the following
entities is a "district" or "special district" if the commission of
the principal county determines, in accordance with Sections 56127
and 56128, that the entity is not a "district" or "special district":
 
   (A) A flood control district.  
   (B) A flood control and floodwater conservation district.
 
   (C) A flood control and water conservation district. 

   (D) A conservation district.  
   (E) A water conservation district.  
   (F) A water replenishment district.  
   (G) The Orange County Water District. 
   (H) A California water storage district.  
   (I) A water agency.  
   (J) A county water authority or a water authority. 

   (2) If the commission determines that an entity described in
paragraph (1) is not a "district" or "special district," any
proceedings pursuant to Part 4 (commencing with Section 57000) for a
change of organization involving the entity shall be conducted
pursuant to the principal act authorizing the establishment of that
entity. 
  SEC. 24.  Section 56036.5 is added to the Government Code, to read:

   56036.5.  (a) For the purposes of Chapter 1 (commencing with
Section 57000) to Chapter 7 (commencing with Section 57176),
inclusive, of Part 4 or Part 5 (commencing with Section 57300),
proceedings for a change of organization shall be conducted pursuant
to the principal act authorizing the establishment of that district
for the following entities:
   (1) A unified or union high school library district.
   (2) A bridge and highway district.
   (3) A joint highway district.
   (4) A transit or rapid transit district.
   (5) A metropolitan water district.
   (6) A separation of grade district.
   (b) For other districts, where the principle act provides, the
procedures in the principal act shall supersede the procedures set
forth in this division.
  SEC. 25.  Section 56036.6 is added to the Government Code, to read:

   56036.6.  (a) For the purposes of Chapter 1 (commencing with
Section 57000) to Chapter 7 (commencing with Section 57176),
inclusive, of Part 4 or Part 5 (commencing with Section 57300), none
of the following entities is a "district" or "special district" if
the commission of the principal county determines, in accordance with
Sections 56127 and 56128, that the entity is not a "district" or
"special district:"
   (1) A flood control district.
   (2) A flood control and floodwater conservation district.
   (3) A flood control and water conservation district.
   (4) A conservation district.
   (5) A water conservation district.
   (6) A water replenishment district.
   (7) The Orange County Water District.
   (8) A California water storage district.
   (9) A water agency.
   (10) A county water authority or a water authority.
   (b) If the commission determines that an entity described in this
section is not a "district" or "special district," any proceedings
pursuant to Part 4 (commencing with Section 57000) for a change of
organization involving the entity shall be conducted pursuant to the
principal act authorizing the establishment of that entity.
  SEC. 26.  Section 56037 of the Government Code is repealed.

   56037.  "District of limited powers" means an airport district,
community services district, municipal utility district, public
utilities district, fire protection district, harbor district, port
district, recreational harbor district, small craft harbor district,
resort improvement district, library district, local hospital
district, local health district, municipal improvement district
formed pursuant to any special act, municipal water district, police
protection district, recreation and park district, garbage disposal
district, garbage and refuse disposal district, sanitary district,
county sanitation district, public cemetery district, California
water district, county water district, county waterworks district, or
irrigation district. 
  SEC. 27.  Section 56038 of the Government Code is amended to read:
   56038.  "Executive officer" means the  executive officer
  person  appointed by a commission  pursuant
to Section 56384  .
  SEC. 28.  Section 56039 of the Government Code is amended to read:
   56039.  "Formation" means the  formation, incorporation,
organization, or  creation of a district.
  SEC. 29.  Section 56040 of the Government Code is amended to read:
   56040.  "Function" means any power granted by law to a local
agency  or a county  to provide designated
governmental or proprietary services or facilities for the use,
benefit, or protection of persons or property.
  SEC. 30.  Section 56041 of the Government Code is amended to read:
   56041.  "Improvement district" means  a district,
  an  area  ,  or zone formed for
the sole purpose of designating an area which is to bear a special
tax or assessment for an improvement benefiting that area.
  SEC. 31.  Section 56042 of the Government Code is repealed.

   56042.  "Include," except when used in relation to the inclusion
of land, does not necessarily exclude matters not enumerated.

  SEC. 32.  Section 56043 of the Government Code is amended to read:
   56043.  "Incorporation" means the  incorporation,
formation,  creation  , and   or 
establishment of a city  with corporate powers  .
Any area proposed for incorporation as a  new  city
shall have at least 500 registered voters residing within the
affected  area   territory  at the time
 commission proceedings are   the proposal is
 initiated.
  SEC. 33.  Section 56044 of the Government Code is amended to read:
   56044.  "Independent  district" or "independent  special
district" includes any special district having a legislative body all
of whose members are elected by registered voters or landowners
within the district, or whose members are appointed to fixed terms
 , and excludes any special district having a legislative
body consisting, in whole or in part, of ex officio members who are
officers of a county or another local agency or who are appointees of
those officers other than those who are appointed to fixed terms
 . "Independent special district" does not include any
district excluded from the definition of district contained in
Section 56036.
  SEC. 34.  Section 56046 of the Government Code is amended to read:
   56046.  "Inhabited territory" means territory within which there
reside 12 or more registered voters. The  number of registered
voters, as determined by the elections officer, shall be established
as of the  date  on which the number of registered
voters is determined is the date of the adoption of a resolution of
application by the legislative body pursuant to Section 56654, if the
legislative body has complied with subdivision (b) of that section,
or the date a petition or other resolution of application is accepted
for filing and  a certificate of filing is issued by the
executive officer. All other territory shall be deemed "uninhabited."

  SEC. 35.  Section 56047 of the Government Code is amended to read:
   56047.  "Initiate" or "initiation" means  the acceptance
for filing and  the issuance of a certificate of filing by
the executive officer.
  SEC. 36.  Section 56047.5 of the Government Code is amended to
read:
   56047.5.  "Interested agency" means each local agency which
provides facilities or services in the affected territory 
that a subject agency would provide  .
  SEC. 37.  Section 56048 of the Government Code is amended to read:
   56048.  (a)  Except as otherwise provided in subdivision
(b), "landowner"   "Landowner"  or "owner of land"
means  all of the following:   any person shown
as the owner of land on the last equalized assessment roll prepared
by the county at the time the determination is required to be made
pursuant to the requirements of this division. Where that person is
no longer the owner, the landowner or owner of land is any person
entitled to be shown as the   owner of land on the next
equalized assessment roll.  
   (1) Any person shown as the owner of land on the most recent
assessment roll being prepared by the county at the time the
proponent adopts a resolution of application pursuant to Section
56654 or files a notice of intention to circulate a petition with the
executive officer pursuant to subdivision (a) of Section 56700.4,
except where that person is no longer the owner. Where that person is
no longer the owner, the landowner or owner of land is any person
entitled to be shown as owner of land on the next assessment roll.
 
   (2) 
    (b)  Where land is subject to a recorded written
agreement of sale, any person shown in the agreement as  the
 purchaser. 
   (3) 
    (c)  Any public agency owning land  other than
highways, rights-of-way, easements, waterways, or canals  .

   (b) "Landowner" or "owner of land" does not include a public
agency which owns highways, rights-of-way, easements, waterways, or
canals. 
  SEC. 38.  Section 56049 of the Government Code is amended to read:
   56049.  "Landowner-voter" means any person entitled to vote in a
landowner-voter district, or the legal representative of that person
or, in the case of an election, the proxy of that person  if
authorized by the principal act  .
  SEC. 39.  Section 56050.5 is added to the Government Code, to read:

   56050.5.  "Latent service or power" means those services,
facilities, functions, or powers authorized by the principal act
under which the district is formed, but that are not being exercised,
as determined by the commission pursuant to subdivision (i) of
Section 56425.
  SEC. 40.  Section 56051 of the Government Code is amended to read:
   56051.  "Last equalized assessment roll" means the  last
equalized assessment roll or book used   listing in use
 by a county, city, or district for the purpose of the annual
levy and collection of any taxes or assessments  imposed by
the county, city, or district  .
   This section does not require the use of the supplemental roll
prepared pursuant to Chapter 3.5 (commencing with Section 75) of Part
0.5 of Division 1 of the Revenue and Taxation Code.
  SEC. 41.  Section 56052 of the Government Code is amended to read:
   56052.  "Legal representative" means an officer of a corporation
 , partnership, or limited liability company  duly
authorized  , by the bylaws or a resolution of the board of
directors of the corporation,  to sign for, and on behalf
of, the  corporation   entity  . Legal
representative also includes a guardian, conservator, executor,
administrator,  trustee,  or other person holding property
in a trust capacity under appointment of a court, when authorized by
an order of the court.  The order of the court may be made
without notice. 
  SEC. 42.  Section 56053 of the Government Code is amended to read:
   56053.  "Legislative body" means the  legislative body or
 governing board of a city,  special  
county, or  district  , or county  .
  SEC. 43.  Section 56055 of the Government Code is amended to read:
   56055.  "Member district" means any district which is included, in
whole or in part, within another district, a metropolitan water
district, or any of the entities enumerated in  subdivision
(c) of  Section 56036, all or any part of the
first-mentioned district being entitled, under the provisions of the
principal act of the second-mentioned district or entity, to receive
or be furnished with any governmental or proprietary service or
commodity by the second-mentioned district or entity.
  SEC. 44.  Section 56056 of the Government Code is amended to read:
   56056.  "Merger" means the  extinguishment, 
termination  , and cessation  of the existence of a
district  of limited powers by the merger   when
the responsibility for the functions, services, assets, and
liabilities  of that district  with   are
assumed by  a city as a result of proceedings taken pursuant to
this division.
  SEC. 45.  Section 56057 of the Government Code is amended to read:
   56057.  "Next equalized assessment roll" means the  next
assessment roll or book   listing  to be equalized
and used by a city, county, or district for the purpose of the annual
levy and collection of any taxes or assessments imposed by the city,
county, or district.
  SEC. 46.  Section 56058 of the Government Code is repealed.

   56058.  "Notice" means any matter authorized or required by this
division to be published, posted, or mailed. 
  SEC. 47.  Section 56062 of the Government Code is amended to read:
   56062.  "Parent district" means any district, a metropolitan water
district, or any of the entities enumerated in  subdivision
(c) of  Section 56036, which includes all or any part of
another district, the first-mentioned district or entity being
obligated, under the provisions of the principal act of the
first-mentioned district or entity, to provide and furnish any
governmental or proprietary service or commodity to the
second-mentioned district.
  SEC. 48.  Section 56063 of the Government Code is repealed.

   56063.  "Plan of reorganization" means a plan or program for
effecting a reorganization and which contains a description of all
changes of organization included in the reorganization and setting
forth                                           all terms,
conditions, and matters necessary or incidental to the effectuation
of that reorganization. 
  SEC. 49.  Section 56065 of the Government Code is amended to read:
   56065.  "Principal act" means, in the case of a district, the law
under which the district was formed and, in the case of a city, the
general laws or  a   the city  charter
 , as the case may be  .
  SEC. 50.  Section 56066 of the Government Code is amended to read:
   56066.  "Principal county" means the county having  all or
 the greater portion of the entire assessed value, as shown
on the last equalized assessment roll of the county or counties, of
all taxable property within a district or districts for which a
change of organization or reorganization is proposed.
  SEC. 51.  Section 56068 of the Government Code is repealed.

   56068.  "Proponent" means the person or persons who file a notice
of intention to circulate a petition with the executive officer
pursuant to subdivision (a) of Section 56700.4, or the affected local
agency or agencies that adopt a resolution of application pursuant
to Section 56654. 
  SEC. 52.  Section 56069 of the Government Code is amended to read:
   56069.  "Proposal" means a  request or statement of
intention made   desired change of organization or
reorganization initiated  by  a  petition or by
resolution of application  for which a certificate of filing has
been issued   of a legislative body or of a school
district proposing proceedings for the change of organization or
reorganization described in the request or statement of intention
 .
  SEC. 53.  Section 56069.5 is added to the Government Code, to read:

   56069.5.  "Protest proceedings" means proceedings taken by a
commission, or its executive officer when authorized by the
commission, as the conducting authority pursuant to Chapter 1
(commencing with Section 57000), Chapter 2 (commencing with Section
57025), Chapter 3 (commencing with Section 57050), or Chapter 4
(commencing with Section 57075) of Part 4 of this division.
  SEC. 54.  Section 56070 of the Government Code is amended to read:
   56070.  "Public agency" means the state or any state agency,
board, or commission, any city, county, city and county, special
district,  or other political subdivision, or any
agency, board, or commission of the city, county, city and county,
special district,  joint powers authority,  or other
political subdivision.
  SEC. 55.  Section 56073 of the Government Code is amended to read:
   56073.  "Reorganization" means two or more changes of organization
 initiated in   contained within  a single
proposal.
  SEC. 56.  Section 56073.1 is added to the Government Code, to read:

   56073.1.  "Resolution of application" means the document adopted
by a local agency or school district initiating a change of
organization or reorganization pursuant to Section 56654.
  SEC. 57.  Section 56074 of the Government Code is amended to read:
   56074.  "Service" means a  class  s 
 pecific governmental activity  established within, and as a
part of, a  single   general  function
 of the agency  , as provided by regulations adopted by the
commission pursuant to Chapter 5 (commencing with Section 56821) of
Part 3.
  SEC. 58.  Section 56075 of the Government Code is amended to read:
   56075.  "Special assessment district"  or "assessment district"
 means an area fixed, established, and formed by a city,
county, district, or the state, pursuant to general law, special act,
or charter, that is specially benefited by, and assessed, or to be
assessed, to pay the costs and expenses of, acquiring any lands or
rights-of-way, acquiring or constructing any public improvements,
maintaining or operating any public improvement, or lighting any
public street, highway, or place.
  SEC. 59.  Section 56078 of the Government Code is amended to read:
   56078.  "Subsidiary district" means a district  of limited
powers  in which a city council is designated as, and
empowered to act as, the ex officio board of directors of the
district.
  SEC. 60.  Section 56079 of the Government Code is repealed.

   56079.  "Sufficient petition" means a petition which, upon its
filing and certification, requires the commission to hold a hearing
and make determinations with respect to the proposal contained in the
petition. 
  SEC. 61.  Section 56080 of the Government Code is repealed.

   56080.  "Urban service area" means developed, undeveloped, or
agricultural land, either incorporated or unincorporated, within the
sphere of influence of a city, which is served by urban facilities,
utilities, and services or which are proposed to be served by urban
facilities, utilities, and services during the first five years of an
adopted capital improvement program of the city if the city adopts
that type of program for those facilities, utilities, and services.
The boundary around an urban area shall be called the "urban service
area boundary" and shall be developed in cooperation with a city and
adopted by a commission pursuant to policies adopted by the
commission in accordance with Sections 56300, 56301, and 56425.

  SEC. 62.  Section 56100 of the Government Code is amended to read:
   56100.  (a) Except as otherwise provided in  paragraph (2)
of subdivision (b) of  Section  56036 
 56036.5  ,  paragraph (2) of  subdivision
 (c)   (b)  of Section  56036
  56036.6  , and Section 56101, this division
provides the sole and exclusive authority and procedure for the
initiation, conduct, and completion of changes of organization and
reorganization for cities and districts. All changes of organization
and reorganizations shall be initiated, conducted, and completed in
accordance with, and as provided in, this division.
   (b) Notwithstanding any other provision of law, proceedings for
the formation of a district shall be conducted as authorized by the
principal act of the district proposed to be formed, except that the
commission shall serve as the conducting authority and the procedural
requirements of this division shall apply and shall prevail in the
event of conflict with the procedural requirements of the principal
act of the district. In the event of such a conflict, the commission
shall specify the procedural requirements that apply, consistent with
the requirements of this section.
  SEC. 63.  Section 56127 of the Government Code is amended to read:
   56127.  If the legislative body of any of the districts, agencies,
or authorities enumerated in subdivision (c) of Section 
56036   56036.6  desires a determination by the
commission that the district, agency, or authority is not a district
or a special district, for purposes of Part 4 (commencing with
Section 57000) or Part 5 (commencing with Section 57300), the
legislative body, prior to the adoption of any ordinance, resolution,
or order proposing, declaring an intention, or initiating
proceedings to make a change of organization, shall make application
to the commission of the principal county describing the proposed
change of organization and requesting that determination. If a
proposal is initiated by other than the legislative body of a
district or special district, the district or special district may,
within 10 days of notification by the commission of the initiation of
the proposal, request a determination by the commission that it is
not a district or special district for purposes of Part 4 (commencing
with Section 57000) or Part 5 (commencing with Section 57300). That
application shall be filed with the executive officer and shall be
presented to the commission not later than its next regular meeting.
The executive officer shall give the legislative body filing the
application mailed notice of the time and place at which the
application shall be presented to the commission. No other notice is
required to be given. However, the commission may, prior to making
its findings and determinations, order the executive officer to give
notice of the filing and presentation of the application by
publication or by mailing to other affected counties, cities, and
districts, or by both publication and mailing.
  SEC. 64.  Section 56128 of the Government Code is amended to read:
   56128.  (a) Upon presentation of any application filed pursuant to
Section 56127, the commission shall determine that the applicant
district, agency, or authority is not a district or special district
for purposes of Part 4 (commencing with Section 57000) or Part 5
(commencing with Section 57300), if the commission finds that the
applicant is not engaged in any of the following:
   (1) The distribution and sale for any purpose, other than for the
purpose of resale, of water or of gas or electricity for light, heat,
or power.
   (2) Furnishing sanitary sewer service or garbage and refuse
collection service to the ultimate users, as defined in subdivision
(b), of those services.
   (3) Providing fire or police protection.
   (4) The acquisition, construction, maintenance, lighting, or
operation of streets and highways, street and highway improvements,
or park and recreation facilities, except as an incident to the
exercise of other lawful powers of the applicant.
   (b) "Ultimate user" means any user or consumer other than the
state, the United States, a city, a county, or a district, or any
agency, department, or office of any of those entities or a public
utility.
   If the commission determines that any applicant district, agency,
or authority enumerated in subdivision (c) of Section  56036
  56036.6  is not a district or special district,
for purposes of Part 4 (commencing with Section 57000) or Part 5
(commencing with Section 57300), then those provisions shall not
apply to the change of organization or reorganization described in
the application and proceedings for the change of organization or
reorganization shall be taken under and pursuant to the principal
act. If no application is made to the commission, or if the
commission in passing upon an application does not determine that the
applicant is not a district or special district for the purposes of
Part 4 (commencing with Section 57000) or Part 5 (commencing with
Section 57300), then this division shall provide the sole and
exclusive authority for the initiation, conduct, and completion for a
change of organization or reorganization by that district, agency,
or authority and, to the extent of any inconsistency between this
division and the principal act of the applicant, this division shall
control.
  SEC. 65.  Section 56375 of the Government Code is amended to read:
   56375.  The commission shall have all of the following powers and
duties subject to any limitations upon its jurisdiction set forth in
this part:
   (a) (1) To review and approve or disapprove with or without
amendment, wholly, partially, or conditionally, proposals for changes
of organization or reorganization, consistent with written policies,
procedures, and guidelines adopted by the commission.
   (2) The commission may initiate proposals by resolution of
application for any of the following:
   (A) The consolidation of a district, as defined in Section 56036.
   (B) The dissolution of a district.
   (C) A merger.
   (D) The establishment of a subsidiary district.
   (E) The formation of a new district or districts.
   (F) A reorganization that includes any of the changes specified in
subparagraph (A), (B), (C), (D), or (E).
   (3) A commission may initiate a proposal described in paragraph
(2) only if that change of organization or reorganization is
consistent with a recommendation or conclusion of a study prepared
pursuant to Section 56378, 56425, or 56430, and the commission makes
the determinations specified in subdivision (b) of Section 56881.
   (4) A commission shall not disapprove an annexation to a city,
initiated by resolution, of contiguous territory that the commission
finds is any of the following:
   (A) Surrounded or substantially surrounded by the city to which
the annexation is proposed or by that city and a county boundary or
the Pacific Ocean if the territory to be annexed is substantially
developed or developing, is not prime agricultural land as defined in
Section 56064, is designated for urban growth by the general plan of
the annexing city, and is not within the sphere of influence of
another city.
   (B) Located within an urban service area  , as that term is
defined in subdivision (g) of Section 56757,  that has been
delineated and adopted by a commission, which is not prime
agricultural land, as defined by Section 56064, and is designated for
urban growth by the general plan of the annexing city.
   (C) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.
   (5) As a condition to the annexation of an area that is
surrounded, or substantially surrounded, by the city to which the
annexation is proposed, the commission may require, where consistent
with the purposes of this division, that the annexation include the
entire island of surrounded, or substantially surrounded, territory.
   (6) A commission shall not impose any conditions that would
directly regulate land use density or intensity, property
development, or subdivision requirements.
   (7) The decision of the commission with regard to a proposal to
annex territory to a city shall be based upon the general plan and
prezoning of the city. When the development purposes are not made
known to the annexing city, the annexation shall be reviewed on the
basis of the adopted plans and policies of the annexing city or
county. A commission shall require, as a condition to annexation,
that a city prezone the territory to be annexed or present evidence
satisfactory to the commission that the existing development
entitlements on the territory are vested or are already at build-out,
and are consistent with the city's general plan. However, the
commission shall not specify how, or in what manner, the territory
shall be prezoned.
   (b) With regard to a proposal for annexation or detachment of
territory to, or from, a city or district or with regard to a
proposal for reorganization that includes annexation or detachment,
to determine whether territory proposed for annexation or detachment,
as described in its resolution approving the annexation, detachment,
or reorganization, is inhabited or uninhabited.
   (c) With regard to a proposal for consolidation of two or more
cities or districts, to determine which city or district shall be the
consolidated successor city or district.
   (d) To approve the annexation of unincorporated, noncontiguous
territory, subject to the limitations of Section 56742, located in
the same county as that in which the city is located, and that is
owned by a city and used for municipal purposes and to authorize the
annexation of the territory without notice and hearing.
   (e) To approve the annexation of unincorporated territory
consistent with the planned and probable use of the property based
upon the review of general plan and prezoning designations. No
subsequent change may be made to the general plan for the annexed
territory or zoning that is not in conformance to the prezoning
designations for a period of two years after the completion of the
annexation, unless the legislative body for the city makes a finding
at a public hearing that a substantial change has occurred in
circumstances that necessitate a departure from the prezoning in the
application to the commission.
   (f) With respect to the incorporation of a new city or the
formation of a new special district, to determine the number of
registered voters residing within the proposed city or special
district or, for a landowner-voter special district, the number of
owners of land and the assessed value of their land within the
territory proposed to be included in the new special district. The
number of registered voters shall be calculated as of the time of the
last report of voter registration by the county elections official
to the Secretary of State prior to the date the first signature was
affixed to the petition. The executive officer shall notify the
petitioners of the number of registered voters resulting from this
calculation. The assessed value of the land within the territory
proposed to be included in a new landowner-voter special district
shall be calculated as shown on the last equalized assessment roll.
   (g) To adopt written procedures for the evaluation of proposals,
including written definitions consistent with existing state law. The
commission may adopt standards for any of the factors enumerated in
Section 56668. Any standards adopted by the commission shall be
written.
   (h) To adopt standards and procedures for the evaluation of
service plans submitted pursuant to Section 56653 and the initiation
of a change of organization or reorganization pursuant to subdivision
(a).
   (i) To make and enforce regulations for the orderly and fair
conduct of hearings by the commission.
   (j) To incur usual and necessary expenses for the accomplishment
of its functions.
   (k) To appoint and assign staff personnel and to employ or
contract for professional or consulting services to carry out and
effect the functions of the commission.
   (  l  ) To review the boundaries of the territory
involved in any proposal with respect to the definiteness and
certainty of those boundaries, the nonconformance of proposed
boundaries with lines of assessment or ownership, and other similar
matters affecting the proposed boundaries.
   (m) To waive the restrictions of Section 56744 if it finds that
the application of the restrictions would be detrimental to the
orderly development of the community and that the area that would be
enclosed by the annexation or incorporation is so located that it
cannot reasonably be annexed to another city or incorporated as a new
city.
   (n) To waive the application of Section 22613 of the Streets and
Highways Code if it finds the application would deprive an area of a
service needed to ensure the health, safety, or welfare of the
residents of the area and if it finds that the waiver would not
affect the ability of a city to provide any service. However, within
60 days of the inclusion of the territory within the city, the
legislative body may adopt a resolution nullifying the waiver.
   (o) If the proposal includes the incorporation of a city, as
defined in Section 56043, or the formation of a district, as defined
in Section 2215 of the Revenue and Taxation Code, the commission
shall determine the property tax revenue to be exchanged by the
affected local agencies pursuant to Section 56810.
   (p) To authorize a city or district to provide new or extended
services outside its jurisdictional boundaries pursuant to Section
56133.
   (q) To enter into an agreement with the commission for an
adjoining county for the purpose of determining procedures for the
consideration of proposals that may affect the adjoining county or
where the jurisdiction of an affected agency crosses the boundary of
the adjoining county.
  SEC. 66.  Section 56376 of the Government Code is amended and
renumbered to read:
    56376.   56886.6   The commission shall
not impose a condition for the provision of services by the annexing
city to an area which has not been placed within that city's adopted
sphere of influence, as defined in Section 56076, unless that
condition would mitigate effects which are a direct result of the
annexation.
   In the case of any annexation proposal for which a certificate of
completion was not recorded prior to January 1, 1985, a condition
imposed thereon which does not comply with the requirements of this
section is null and void and shall not affect the validity of, or
terminate the annexation proceedings.
  SEC. 67.  Section 56376.5 of the Government Code is amended and
renumbered to read:
    56376.5.   56886.7   (a) The commission
shall not impose any condition on an annexing local agency with
respect to the standards or frequency of maintenance of any existing
street or road within the annexed territory.
   (b) The commission shall not impose a condition which requires a
local agency to improve an existing public facility which is not
owned by the agency.
   (c) This section shall not be construed as authorizing a
commission to impose any conditions which it is not otherwise
authorized to impose.
  SEC. 68.  Section 56383 of the Government Code is amended to read:
   56383.  (a) The commission may establish a schedule of fees and a
schedule of service charges for the proceedings taken pursuant to
this division, including, but not limited to, all of the following:
   (1) Filing and processing applications filed with the commission.
   (2) Proceedings undertaken by the commission and any
reorganization committee.
   (3) Amending a sphere of influence.
   (4) Reconsidering a resolution making determinations.
   (b) The fees shall not exceed the estimated reasonable cost of
providing the service for which the fee is charged and shall be
imposed pursuant to Section 66016. The service charges shall not
exceed the cost of providing the service for which the service charge
is charged and shall be imposed pursuant to Section  60016
  66016  .
   (c) The commission may require that an applicant deposit some or
all of the required amount that will be owed with the executive
officer before any further action is taken. The deposit shall be made
within the time period specified by the commission. No application
shall be deemed filed until the applicant deposits the required
amount with the executive officer. The executive officer shall
provide the applicant with an accounting of all costs charged against
the deposited amount. If the costs are less than the deposited
amount, the executive officer shall refund the balance to the
applicant after the executive officer verifies the completion of all
proceedings. If the costs exceed the deposited amount, the applicant
shall pay the difference prior to the completion of all proceedings.
   (d) The commission may reduce or waive a fee, service charge, or
deposit if it finds that payment would be detrimental to the public
interest. The reduction or waiver of any fee, service charge, or
deposit is limited to the costs incurred by the commission in the
proceedings of an application.
   (e) Any mandatory time limits for commission action may be
deferred until the applicant pays the required fee, service charge,
or deposit.
   (f) The signatures on a petition submitted to the commission by
registered voters shall be verified by the elections official of the
county and the costs of verification shall be provided for in the
same manner and by the same agencies which bear the costs of
verifying signatures for an initiative petition in the same county.
   (g) For incorporation proceedings that have been initiated by the
filing of a sufficient number of voter signatures on petitions that
have been verified by the county registrar of voters, the commission
may, upon the receipt of a certification by the proponents that they
are unable to raise sufficient funds to reimburse fees, service
charges, or deposits for the proceedings, take no action on the
proposal and request a loan from the General Fund of an amount
sufficient to cover those expenses subject to availability of an
appropriation for those purposes and in accordance with any
provisions of the appropriation. Repayment of the loan shall be made
a condition of approval of the incorporation, if successful, and
shall become an obligation of the newly formed city. Repayment shall
be made within two years of the effective date of incorporation. If
the proposal is denied by the commission or defeated at an election,
the loan shall be forgiven.
  SEC. 69.  Section 56428 of the Government Code is amended to read:
   56428.  (a) Any person or local agency may file a written request
with the executive officer requesting amendments to a sphere of
influence or urban service area  , as that term is defined in
subdivision (g) of Section 56757,  adopted by the commission.
The request shall state the nature of the proposed amendment, state
the reasons for the request, include a map of the proposed amendment,
and contain any additional data and information as may be required
by the executive officer.
   (b) After complying with the California Environmental Quality Act,
Division 13 (commencing with Section 21000) of the Public Resources
Code, the executive officer shall place the request on the agenda of
the next meeting of the commission for which notice can be given. The
executive officer shall give notice in the manner provided by
Section 56427. On the date and time provided in the notice, the
commission may do either of the following:
   (1) Without further notice, consider the amendments to a sphere of
influence.
   (2) Set a future date for the hearing on the request.
   (c) The executive officer shall review each requested amendment
and prepare a report and recommendation. The report shall be
completed not less than five days before the date specified in the
notice of hearing. The executive officer shall send copies of the
report to the person or agency making the request, each affected
local agency, and each person who has filed a request for a report.
   (d) At its meeting, the commission shall consider the request and
receive any oral or written testimony. The consideration may be
continued from time to time but not to exceed 70 days from the date
specified in the original notice. The person or agency which filed
the request may withdraw it at any time prior to the conclusion of
the consideration by the commission.
   (e) At the conclusion of its consideration, the commission may
approve or disapprove with or without amendment, wholly, partially,
or conditionally, the request. The commission shall follow the
procedures in Section 56425.
   (f) The commission may require the person or agency making a
request pursuant to this section to pay a fee to cover the commission'
s costs. The fee shall not exceed the estimated reasonable cost of
providing the service and shall be set pursuant to Section 56383. The
commission may waive the fee if it finds that the request can be
considered and studied as part of the periodic review of spheres of
influence required by Section 56425. In addition, the commission may
waive the fee if it finds that payment would be detrimental to the
public interest.
    (g) The commission and executive officer may review and act on
any request to amend a sphere of influence or urban service area 
, as that term is defined in subdivision (g) of Section 56757, 
concurrently with their review and determination on any related
change of organization or reorganization. In case of a conflict
between the provisions of this section and any other provisions of
this part, the other provisions shall prevail.
  SEC. 70.  Section 56757 of the Government Code is amended to read:
   56757.  (a) The commission shall not review a reorganization that
includes an annexation to any city in Santa Clara County of
unincorporated territory that is within the urban service area of the
city if the reorganization is initiated by resolution of the
legislative body of the city.
   (b) The city council shall be the conducting authority for the
reorganization and the proceedings for the reorganization shall be
initiated and conducted as nearly as may be practicable in accordance
with Part 4 (commencing with Section 57000).
   (c) The city council, in adopting the resolution approving the
reorganization, shall make all of the following findings:
   (1) That the unincorporated territory is within the urban service
area of the city as adopted by the commission.
   (2) That the county surveyor has determined the boundaries of the
proposal to be definite and certain, and in compliance with the road
annexation policies of the commission. The city shall reimburse the
county for the actual costs incurred by the county surveyor in making
this determination.
   (3) That the proposal does not split lines of assessment or
ownership.
   (4) That the proposal does not create islands or areas in which it
would be difficult to provide municipal services.
   (5) That the proposal is consistent with the adopted general plan
of the city.
   (6) That the territory is contiguous to existing city limits.
   (7) That the city has complied with all conditions imposed by the
commission for inclusion of the territory in the urban service area
of the city.
   (d) All reorganizations which involve territory for which the land
use designation in the general plan of the city has changed from the
time that the urban service area of the city was last adopted by the
commission, and which are processed by a city pursuant to this
section shall be subject to an appeal to the commission upon
submission of a petition of appeal, signed by at least 50 registered
voters in the county.
   (e) An appeal to the commission may also be made by submission of
a resolution of appeal adopted by the legislative body of a special
district solely for the purpose of determining whether some or all of
the territory contained in the reorganization proposal should also
be annexed or detached from that special district.
   (f) Any petition submitted under subdivision (d) or resolution
submitted under subdivision (e) shall be submitted to the executive
officer within 15 days of the adoption by the city council of the
resolution approving the annexation. The executive officer shall
schedule the hearing for the next regular meeting of the commission
as is practicable. The commission may set a reasonable appeal fee.

   (g) "Urban service area" means developed, undeveloped, or
agricultural land, either incorporated or unincorporated, within the
sphere of influence of a city, which is served by urban facilities,
utilities, and services or which are proposed to be served by urban
facilities, utilities, and services during the first five years of an
adopted capital improvement program of the city if the city adopts
that type of program for those facilities, utilities, and services.
The boundary around an urban area shall be called the urban service
area boundary and shall be developed in cooperation with a city and
adopted by a commission pursuant to policies adopted by the
commission in accordance with Sections 56300, 56301, and 56425. 

  SEC. 71.  Section 56864 of the Government Code is amended to read:
   56864.  Petitions for the annexation of territory to, or
detachment of territory from, a district shall be signed as follows:
   (a) For a registered voter district, by any of the following:
   (1) Not less than 25 percent of the registered voters within the
territory proposed to be annexed  or detached  .
   (2) Not less than 25 percent of the number of landowners within
the territory proposed to be annexed  or detached  who also
own not less than 25 percent of the assessed value of land within the
territory.
   (b) For a landowner-voter district, by not less than 25 percent of
the number of landowners owning land within the territory proposed
to be annexed  or detached  who also own not less than 25
percent of the assessed value of land within the territory.
  SEC. 72.  Section 57114 of the Government Code is amended to read:
   57114.  (a) Notwithstanding Sections 56854 and 57111, for any
proposal for the dissolution of one or more districts and the
annexation of all or substantially all of their territory to another
district, not initiated by the commission pursuant to subdivision (a)
of Section 56375, the commission shall forward the change of
organization or reorganization for confirmation by the voters if the
commission finds either of the following:
   (1) In the case of inhabited territory, that a petition requesting
that the proposal be submitted to confirmation by the voters has
been signed by either of the following:
   (A) At least 25 percent of the number of landowners within any
affected district within the affected territory who own at least 25
percent of the assessed value of land within the territory.
   (B) At least 25 percent of the voters entitled to vote as a result
of residing within, or owning land within, any affected district
within the affected territory.
   (2) In the case of a landowner-voter district, that the territory
is uninhabited and a petition requesting that the proposal be
submitted to confirmation by the voters has been signed by at least
25 percent of the number of landowners within any affected district
within the affected territory, owning at least 25 percent of the
assessed value of land within the territory of that district.
   (b) If a petition that meets the requirements of this section has
been filed, the commission shall  approve  
order  the proposal subject to confirmation by the voters of
each district that has filed such a petition. The voter confirmation
requirements set forth in subdivision (a) shall not apply to any
proposal initiated by the commission under Section 56375 or where
each affected district has consented to the proposal by a resolution
adopted by a majority vote of its board of directors.
  SEC. 73.  Section 101370 of the Public Utilities Code is amended to
read:
   101370.  As used in this article the terms "change of organization"
and "reorganization" shall have the meanings defined in Section
56028 and Section  56068   56073  ,
respectively, of the Government Code.