BILL NUMBER: AB 2698	INTRODUCED
	BILL TEXT


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

                        MARCH 21, 2012

   An act to amend Sections 56375, 56425, 56658, 56827, 56853, 57077,
57107, and 57113 of, to add Sections 57077.1, 57077.2, 57077.3, and
57077.4 to, and to repeal Sections 56854, 57081, and 57114 of, the
Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2698, as introduced, Committee on Local Government. The
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
   (1) Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, sets forth the powers and duties of a
local agency formation commission, including, among others, the power
to approve the annexation of a contiguous disadvantaged community,
under specified circumstances. Existing law provides that an
application to annex a contiguous disadvantaged community is not
required if the commission finds that a majority of the residents
within the affected territory are opposed to annexation.
   This bill would provide that an application to annex a contiguous
disadvantaged community is not required if the commission finds that
a majority of the registered voters within the affected territory are
opposed to annexation.
   (2) The act additionally requires the commission to determine the
sphere of influence of each local governmental agency within the
county, and to enact policies designated to promote the logical and
orderly development of areas within the sphere.
   This bill would instead require the commission to determine the
sphere of influence of each city, and each special district subject
to the jurisdiction of the commission, within the county.
   (3) The act authorizes a petitioner or legislative body desiring
to initiate proceedings before the commission to submit an
application to the executive officer of the principal county, and
requires the executive officer, immediately after receiving an
application and before issuing a certificate of filing, to give
mailed notice that the application has been received to specified
agencies, as specified.
   This bill would correct an incorrect cross-reference in these
provisions.
   (4) The act also authorizes the commission to approve proposals
for changes of organization or reorganization, consistent with
written policies, procedures, and guidelines adopted by the
commission. The act requires a local agency formation commission to
comply with certain procedural requirements prior to ordering a
change of organization or reorganization, including, among others,
requiring voter approval of a change of organization or
reorganization if certain requirements are met.
   This bill would revise and recast those provisions to, among other
things, specify that voter approval is required for a change of
organization or reorganization that consists of an incorporation or
disincorporation, and provides for specific protest standards for a
change of organization that consists of a dissolution of a district,
a consolidation of 2 or more districts, certain types of
reorganizations, and the merger or establishment of a subsidiary
district.
   (5) The act provides that if a commission has initiated a change
of organization or reorganization that affects more than one special
district, the commission may utilize and is encouraged to utilize a
reorganization committee to review the proposal.
   This bill would revise and recast that provision.
   (6) The act requires a commission to order the consolidation of
districts, dissolution, merger, the establishment of a subsidiary
district, or a reorganization that includes any of these changes of
organization, without an election, as specified. The act exempts from
these provisions, any proposal for a change of organization or
reorganization submitted to a commission before January 1, 2003,
where the Goleta Sanitary District or the Goleta West Sanitary
district is an affected district, as specified.
   This bill would repeal this exemption.
   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 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 with or without amendment, wholly,
partially, or conditionally, or disapprove 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 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.
   (8) (A) Except for those changes of organization or reorganization
authorized under Section 56375.3, and except as provided by
subparagraph (B), a commission shall not approve an annexation to a
city of any territory greater than 10 acres, or as determined by
commission policy, where there exists a disadvantaged unincorporated
community that is contiguous to the area of proposed annexation,
unless an application to annex the disadvantaged unincorporated
community to the subject city has been filed with the executive
officer.
   (B) An application to annex a contiguous disadvantaged community
shall not be required if either of the following apply:
   (i) A prior application for annexation of the same disadvantaged
community has been made in the preceding five years.
   (ii) The commission finds, based upon written evidence, that a
majority of the  residents   registered voters
 within the affected territory are opposed to annexation.
   (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.
   (r) To approve with or without amendment, wholly, partially, or
conditionally, or disapprove pursuant to this section the annexation
of territory served by a mutual water company formed pursuant to Part
7 (commencing with Section 14300) of Division 3 of Title 1 of the
Corporations Code that operates a public water system to a city or
special district. Any annexation approved in accordance with this
subdivision shall be subject to the state and federal constitutional
prohibitions against the taking of private property without the
payment of just compensation. This subdivision shall not impair the
authority of a public agency or public utility to exercise eminent
domain authority.
  SEC. 2.  Section 56425 of the Government Code is amended to read:
   56425.  (a) In order to carry out its purposes and
responsibilities for planning and shaping the logical and orderly
development and coordination of local governmental agencies 
subject to the jurisdiction of the commission  to advantageously
provide for the present and future needs of the county and its
communities, the commission shall develop and determine the sphere of
influence of each  local governmental agency  
city and each special district, as defined by Section 56036, 
within the county and enact policies designed to promote the logical
and orderly development of areas within the sphere.
   (b) Prior to a city submitting an application to the commission to
update its sphere of influence, representatives from the city and
representatives from the county shall meet to discuss the proposed
new boundaries of the sphere and explore methods to reach agreement
on development standards and planning and zoning requirements within
the sphere to ensure that development within the sphere occurs in a
manner that reflects the concerns of the affected city and is
accomplished in a manner that promotes the logical and orderly
development of areas within the sphere. If an agreement is reached
between the city and county, the city shall forward the agreement in
writing to the commission, along with the application to update the
sphere of influence. The commission shall consider and adopt a sphere
of influence for the city consistent with the policies adopted by
the commission pursuant to this section, and the commission shall
give great weight to the agreement to the extent that it is
consistent with commission policies in its final determination of the
city sphere.
   (c) If the commission's final determination is consistent with the
agreement reached between the city and county pursuant to
subdivision (b), the agreement shall be adopted by both the city and
county after a noticed public hearing. Once the agreement has been
adopted by the affected local agencies and their respective general
plans reflect that agreement, then any development approved by the
county within the sphere shall be consistent with the terms of that
agreement.
   (d) If no agreement is reached pursuant to subdivision (b), the
application may be submitted to the commission and the commission
shall consider a sphere of influence for the city consistent with the
policies adopted by the commission pursuant to this section.
   (e) In determining the sphere of influence of each local agency,
the commission shall consider and prepare a written statement of its
determinations with respect to each of the following:
   (1) The present and planned land uses in the area, including
agricultural and open-space lands.
   (2) The present and probable need for public facilities and
services in the area.
   (3) The present capacity of public facilities and adequacy of
public services that the agency provides or is authorized to provide.

   (4) The existence of any social or economic communities of
interest in the area if the commission determines that they are
relevant to the agency.
   (5) For an update of a sphere of influence of a city or special
district that provides public facilities or services related to
sewers, municipal and industrial water, or structural fire
protection, that occurs pursuant to subdivision (g) on or after July
1, 2012, the present and probable need for those public facilities
and services of any disadvantaged unincorporated communities within
the existing sphere of influence.
   (f) Upon determination of a sphere of influence, the commission
shall adopt that sphere.
   (g) On or before January 1, 2008, and every five years thereafter,
the commission shall, as necessary, review and update each sphere of
influence.
   (h) In determining a sphere of influence, the commission may
assess the feasibility of governmental reorganization of particular
agencies and recommend reorganization of those agencies when
reorganization is found to be feasible and if reorganization will
further the goals of orderly development and efficient and affordable
service delivery. The commission shall make all reasonable efforts
to ensure wide public dissemination of the recommendations.
   (i) When adopting, amending, or updating a sphere of influence for
a special district, the commission shall do all of the following:
   (1) Require existing districts to file written statements with the
commission specifying the functions or classes of services provided
by those districts.
   (2) Establish the nature, location, and extent of any functions or
classes of services provided by existing districts.
  SEC. 3.  Section 56658 of the Government Code is amended to read:
   56658.  (a) Any petitioner or legislative body desiring to
initiate proceedings shall submit an application to the executive
officer of the principal county.
   (b) (1) Immediately after receiving an application and before
issuing a certificate of filing, the executive officer shall give
mailed notice that the application has been received to each
interested agency and each subject agency, the county committee on
school district organization, and each school superintendent whose
school district overlies the subject area. The notice shall generally
describe the proposal and the affected territory. The executive
officer shall not be required to give notice pursuant to this
subdivision if a local agency has already given notice pursuant to
subdivision  (b)   (c)  of Section 56654.
   (2) It is the intent of the Legislature that an incorporation
proposal shall be processed in a timely manner. With regard to an
application that includes an incorporation, the executive officer
shall immediately notify all affected local agencies and any
applicable state agencies by mail and request the affected agencies
to submit the required data to the commission within a reasonable
timeframe established by the executive officer. Each affected agency
shall respond to the executive officer within 15 days acknowledging
receipt of the request. Each affected local agency and the officers
and departments thereof shall submit the required data to the
executive officer within the timelines established by the executive
officer. Each affected state agency and the officers and departments
thereof shall submit the required data to the executive officer
within the timelines agreed upon by the executive officer and the
affected state departments.
   (c) If a special district is, or as a result of a proposal will
be, located in more than one county, the executive officer of the
principal county shall immediately give the executive officer of each
other affected county mailed notice that the application has been
received. The notice shall generally describe the proposal and the
affected territory.
   (d) Except when a commission is the lead agency pursuant to
Section 21067 of the Public Resources Code, the executive officer
shall determine within 30 days of receiving an application whether
the application is complete and acceptable for filing or whether the
application is incomplete.
   (e) The executive officer shall not accept an application for
filing and issue a certificate of filing for at least 20 days after
giving the mailed notice required by subdivision (b). The executive
officer shall not be required to comply with this subdivision in the
case of an application which meets the requirements of Section 56663
or in the case of an application for which a local agency has already
given notice pursuant to subdivision (b) of Section 56654.
   (f) If the appropriate fees have been paid, an application shall
be deemed accepted for filing if no determination has been made by
the executive officer within the 30-day period. An executive officer
shall accept for filing, and file, any application submitted in the
form prescribed by the commission and containing all of the
information and data required pursuant to Section 56652.
   (g) When an application is accepted for filing, the executive
officer shall immediately issue a certificate of filing to the
applicant. A certificate of filing shall be in the form prescribed by
the executive officer and shall specify the date upon which the
proposal shall be heard by the commission. From the date of issuance
of a certificate of filing, or the date upon which an application is
deemed to have been accepted, whichever is earlier, an application
shall be deemed filed pursuant to this division.
   (h) If an application is determined not to be complete, the
executive officer shall immediately transmit that determination to
the applicant specifying those parts of the application which are
incomplete and the manner in which they can be made complete.
   (i) Following the issuance of the certificate of filing, the
executive officer shall proceed to set the proposal for hearing and
give published notice thereof as provided in this part. The date of
the hearing shall be not more than 90 days after issuance of the
certificate of filing or after the application is deemed to have been
accepted, whichever is earlier. Notwithstanding Section 56106, the
date for conducting the hearing, as determined pursuant to this
subdivision, is mandatory.
  SEC. 4.  Section 56827 of the Government Code is amended to read:
   56827.  (a) Except as provided in subdivision (b), upon the
presentation of any petition or applications making a proposal for a
reorganization, the commission may take proceedings pursuant to Part
3 (commencing with Section 56650) without referring the proposal to a
reorganization committee, as provided in this part.
   (b) The commission may refer to a reorganization committee any
incorporation proposal that includes, or may be modified to include,
any of the following changes of organization affecting an independent
special district: consolidation, dissolution, formation, merger, or
establishment of a subsidiary district. 
   (c) If the commission has initiated a change of organization or
reorganization that affects more than one special district, the
commission may, and is encouraged to, utilize a reorganization
committee to review the proposal. 
  SEC. 5.  Section 56853 of the Government Code is amended to read:
   56853.  (a) If a majority of the members of each of the
legislative bodies of two or more local agencies adopt substantially
similar resolutions of application making proposals either for the
consolidation of districts or for the reorganization of all or any
part of the districts into a single local agency, the commission
shall approve, or conditionally approve, the proposal.  The
commission shall order the consolidation or reorganization without an
election, except as otherwise provided in subdivision (b) of Section
57081. 
   (b) Except as provided in subdivision (d), a commission may order
any material change in the provisions or the terms and conditions of
the consolidation or reorganization, as set forth in the proposals of
the local agencies. The commission shall direct the executive
officer to give each subject agency mailed notice of any change prior
to ordering a change. The commission shall not, without the written
consent of all subject agencies, take any further action on the
consolidation or reorganization for 30 days following that mailing.
Upon written demand by any subject agency, filed with the executive
officer during that 30-day period, the commission shall make
determinations upon the proposals only after notice and hearing on
the proposals. If no written demand is filed, the commission may make
those determinations without notice and hearing. The application of
any provision of this subdivision may be waived by consent of all of
the subject agencies. 
   (c) Where the commission has initiated a change of organization or
reorganization affecting more than one special district, the
commission may utilize and is encouraged to utilize a reorganization
committee to review the proposal.  
   (d) 
    (c)  The commission shall not order a material change in
the provisions of a consolidation or reorganization, as set forth in
the proposals of the local agencies pursuant to subdivision (a),
that would add or delete districts without the written consent of the
applicant local agencies.
  SEC. 6.  Section 56854 of the Government Code is repealed. 

   56854.  (a) Notwithstanding Sections 57077 and 57107, the
commission shall order (1) the consolidation of districts, (2)
dissolution, (3) merger, or (4) the establishment of a subsidiary
district, or (5) a reorganization that includes any of these changes
of organization without an election, except that an election shall be
held in each affected city or district if there are written protests
as follows:
   (1) Where the proposal was not initiated by the commission, and
where an affected city or district has not objected by resolution to
the proposal, a written protest has been submitted that meets the
requirements specified in subdivisions (b) and (c) of Section 57081.
   (2) Where the proposal was not initiated by the commission, and
where an affected city or district has objected by resolution to the
proposal, a written protest has been submitted that meets the
requirements specified in paragraphs (1) and (2) of subdivision (a)
and subdivision (b) of Section 57114.
   (3) Where the proposal was initiated by the commission, and
regardless of whether an affected city or district has objected to
the proposal by resolution, a written protest has been submitted that
meets the requirements of Section 57113.
   (b) Notwithstanding subdivision (a), the commission shall not
order a merger or establishment of a subsidiary district without the
consent of the affected city.
   (c) This section shall not apply to any proposal for a change of
organization or reorganization that is submitted to the commission
before January 1, 2003, where the Goleta Sanitary District or the
Goleta West Sanitary District is an affected district. The
Legislature finds and declares that a special law is necessary and
that a general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the following special circumstances:
   The voters of the Goleta Sanitary District previously voted
against a proposed consolidation with the Goleta West Sanitary
District by a margin of two to one. More recently, a reorganization
proposal was submitted to the commission in Santa Barbara County that
would have combined the Goleta Sanitary District and the Goleta West
Sanitary District under circumstances where no opportunity for
confirmation by the Goleta Sanitary District voters would be
available. In light of the issues that were raised in connection with
these earlier consolidation and reorganization proposals, a
five-year moratorium on the application of Section 56854 to proposals
affecting the Goleta Sanitary District or the Goleta West Sanitary
District is necessary to ensure an opportunity for voter
confirmation. 
  SEC. 7.  Section 57077 of the Government Code is amended to read:
   57077.   (a)    If a change of
organization consists of  a dissolution, disincorporation,
incorporation, establishment of a subsidiary district, consolidation,
or merger, the commission shall do either of the following:
  an incorporation or disincorporation, or if a
reorganization includes an incorporation or disincorporation, the
commission shall order the change of organization or reorganization
subject to confirmation of the voters. A protest proceeding shall not
be conducted.  
   (1) 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 Section 56854.  
   (2) Order the change of organization without election if it is a
change of organization that meets the requirements of Section 56854,
57081, 57102,                                           or 57107;
otherwise, the commission shall take the action specified in
paragraph (1).  
   (b) Notwithstanding subdivision (a) or Section 57102, if a change
of organization consists of the dissolution of a district that is
consistent with a prior action of the commission pursuant to Section
56378, 56425, or 56430, the commission may do either of the
following:  
   (1) If the dissolution is initiated by the district board,
immediately order the dissolution without an election or protest
proceeding pursuant to this part.  
   (2) If the dissolution is initiated by an affected local agency,
by the commission pursuant to Section 56375, or by petition pursuant
to Section 56650, order the dissolution after holding at least one
noticed public hearing, and after conducting protest proceedings in
accordance with this part. Notwithstanding any other law, the
commission shall terminate proceedings if a majority protest exists
in accordance with Section 57078. If a majority protest is not found
the commission shall order the dissolution without an election.
 
   (c) If a reorganization consists of one or more dissolutions,
incorporations, formations, disincorporations, mergers,
establishments of subsidiary districts, consolidations, or any
combination of those proposals, the commission shall do either of the
following:  
   (1) Order the reorganization subject to confirmation of the
voters, or in the case of landowner-voter districts, subject to
confirmation by the landowners, unless otherwise authorized pursuant
to Section 56854.  
   (2) Order the reorganization without election if it is a
reorganization that meets the requirements of Section 56853.5,
56853.6, 56854, 57081, 57102, 57107, or 57111; otherwise, the
commission shall take the action specified in paragraph (1).

  SEC. 8.  Section 57077.1 is added to the Government Code, to read:
   57077.1.  Notwithstanding Section 57102, if a change of
organization consists of the dissolution of a district that is
consistent with a prior action of the commission pursuant to Section
56378, 56425, or 56430, the commission may do either of the
following:
   (a) If the dissolution is initiated by the district board,
immediately approve and order the dissolution without an election or
protest proceedings pursuant to this part.
   (b) If the dissolution is initiated by an affected local agency,
by the commission pursuant to Section 56375, or by petition pursuant
to Section 56650, order the dissolution after holding at least one
noticed public hearing, and after conducting protest proceedings in
accordance with this part. Notwithstanding any other law, the
commission shall terminate proceedings if a majority protest exists
in accordance with Section 57078. If a majority protest is not found,
the commission shall order the dissolution without an election.
  SEC. 9.  Section 57077.2 is added to the Government Code, to read:
   57077.2.  (a) If the change of organization consists of a
consolidation of two or more districts, the commission shall order
the consolidation without confirmation by the voters, except that if
the proposal meets the requirements of subdivision (b), the
commission shall order the consolidation subject to confirmation of
the voters.
   (b) The commission shall order the consolidation subject to the
confirmation of the voters as follows:
   (1) If the commission has approved a proposal submitted by
resolution of a majority of the members of the legislative bodies of
two or more local agencies pursuant to Section 56853, and the
commission has found that protests meet one of the following protest
thresholds:
   (A) In the case of inhabited territory, protests have been signed
by either of the following:
   (i) At least 25 percent of the number of landowners within the
territory subject to the consolidation who own at least 25 percent of
the assessed value of land within the territory.
   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the territory.
   (B) In the case of a landowner-voter district, the territory is
uninhabited and protests have been signed by at least 25 percent of
the number of landowners within the territory subject to the
consolidation, owning at least 25 percent of the assessed value of
land within the territory.
   (2) If the commission has approved a proposal not initiated by the
commission and if a subject agency has not objected by resolution to
the proposal, written protests have been submitted that meet the
requirements specified in subparagraph (A) or (B) of paragraph (1).
   (3) If the proposal was not initiated by the commission, and if a
subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:
   (A) In the case of inhabited territory, protests have been signed
by either of the following:
   (i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.
   (B) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
   (4) If the commission has approved a proposal initiated by the
commission, and regardless of whether a subject agency has objected
to the proposal by resolution, written protests have been submitted
that meet the requirements of Section 57113.
  SEC. 10.  Section 57077.3 is added to the Government Code, to read:

   57077.3.  (a) If a proposal consists of a reorganization not
described in Section 57075, 57075.5, 57076, 57077, 57077.4, or 57111,
the commission shall order the reorganization without confirmation
by the voters except that if the reorganization meets the
requirements of subdivision (b), the commission shall order the
reorganization subject to confirmation of the voters.
   (b) The commission shall order the reorganization subject to
confirmation of the voters as follows:
   (1) If the commission has approved a proposal submitted by
resolution of a majority of the members of the legislative bodies of
two or more local agencies pursuant to Section 56853, and the
commission has found that protests meet one of the following protest
thresholds:
   (A) In the case of inhabited territory, protests have been signed
by:
   (i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.
   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the affected
territory.
   (B) In the case of a landowner-voter district, that the territory
is uninhabited, and that protests have been signed by at least 25
percent of the number of landowners within the affected territory,
owning at least 25 percent of the assessed value of land within the
territory.
   (2) If the commission has approved a proposal not initiated by the
commission, and if a subject agency has not objected by resolution
to the proposal, a written protest has been submitted that meets the
requirements specified in subparagraph (A) or (B) of paragraph (1).
   (3) If the commission has approved a proposal not initiated by the
commission, and if a subject agency has objected by resolution to
the proposal, written protests have been submitted as follows:
   (A) In the case of inhabited territory, protests have been signed
by either of the following:
   (i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the affected
territory.
   (B) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
   (4) If the commission has approved a proposal initiated by the
commission, and regardless of whether a subject agency has objected
to the proposal by resolution, written protests have been submitted
that meet the requirements of Section 57113.
   (c) This section shall not apply to reorganizations governed by
Sections 56853.5 and 56853.6.
  SEC. 11.  Section 57077.4 is added to the Government Code, to read:

   57077.4.  (a) If a reorganization consists of the dissolution of
one or more districts and the annexation of all or substantially all
the territory to another district not initiated pursuant to Section
56853 or by the commission pursuant to Section 56375, the commission
shall order the reorganization without confirmation by the voters
except that if the reorganization meets the requirements of
subdivision (b), the commission shall order the reorganization
subject to confirmation by the voters.
   (b) The commission shall order the reorganization subject to
confirmation by the voters as follows:
   (1) In the case of inhabited territory, protests have been signed
by either of the following:
   (A) At least 25 percent of the number of landowners within any
subject agency 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 subject agency within
the affected territory.
   (2) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
   (3) If the reorganization has been initiated by the commission
pursuant to Section 56375, protests have been submitted that meet the
requirements of Section 57113.
  SEC. 12.  Section 57081 of the Government Code is repealed.

   57081.  (a) If authorized by the commission pursuant to Section
56853, the protest proceedings shall be conducted for the
consolidation of districts or the reorganization of all or any part
of those districts into a single local agency pursuant to this
section. The commission shall hold at least one noticed public
hearing on the proposal within 30 days after approval of the
application by the commission. After the conclusion of the hearing,
the commission shall order the consolidation or reorganization
without an election, except as otherwise provided in subdivision (b).

   (b) An election shall only be held 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 the
territory subject to the consolidation or reorganization 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, the 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 the territory subject
to the consolidation or reorganization, owning at least 25 percent of
the assessed value of land within the territory.
   (c) The petition shall be filed with the commission prior to the
conclusion of the protest hearing. 
  SEC. 13.  Section 57107 of the Government Code is amended to read:
   57107.   (a)    In any resolution ordering a
merger or establishment of a subsidiary district, the commission
shall  take one of the following actions:  
approve the change of organization without an election except that if
the change of organization meets the requirements of subdivision
(b), the commission shall order the change of organization subject to
confirmation of the voters.  
   (b) The commission shall order the change of organization subject
to confirmation of the voters within any subject agency as follows:
 
   (1) If the proposal was not initiated by the commission, and if a
subject agency has not objected by resolution to the proposal, the
commission has found that protests meet one of the following protest
thresholds:  
   (A) In the case of inhabited territory, protests have been signed
by:  
   (i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.  
   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within or owning land within, the affected
territory.  
   (B) In the case of a landowner-voter district, that the territory
is uninhabited and that protests have been signed by at least 25
percent of the number of landowners within the affected territory
owning at least 25 percent of the assessed value of land within the
territory.  
   (2) If the proposal was not initiated by the commission, and if a
subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:  
   (A) In the case of inhabited territory, protests have been signed
by either of the following:  
   (i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory. 

   (ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.  
   (B) In the case of a landowner-voter district, that the territory
is uninhabited and protests have been signed by at least 25 percent
of the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.  
   (3) If the proposal was initiated by the commission, and
regardless of whether a subject agency has objected to the proposal
by resolution, written protests have been submitted that meet the
requirements of Section 57113.  
   (c) Notwithstanding subdivision (a) or (b), the commission shall
not order the merger or establishment of a subsidiary district
without the consent of the subject city.  
   (a) Order the merger or establishment of the subsidiary district
subject to confirmation of the voters upon the questions, as the case
may be, of merger, the establishment of a subsidiary district, or
both merger and the establishment of a subsidiary district. 

   (b) Order the merger or establishment of the subsidiary district
without election, if the legislative body of the city and the board
of directors of the district have by resolution consented to the
merger or the establishment of the subsidiary district. 
  SEC. 14.  Section 57113 of the Government Code is amended to read:
   57113.   (a)    Notwithstanding
Section  57081,  57102,  57107, 
57108, or 57111, for any proposal that was 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) 
    (a)  In the case of inhabited territory,  that a
petition requesting that the proposal be submitted to confirmation
by the voters has   protests have  been signed by
either of the following: 
   (A) 
    (1)  At least 10 percent of the number of landowners
within any  affected district   subject agency
 within the affected territory who own at least 10 percent of
the assessed value of land within the territory. However, if the
number of landowners within  an affected district 
 a subject agency  is less than 300,  the petition
requesting the proposal to be submitted to the voters  
the protests  shall be signed by at least 25 percent of the
landowners who own at least 25 percent of the assessed value of land
within the territory of the affected district. 
   (B)
    (2)  At least 10 percent of the voters entitled to vote
as a result of residing within, or owning land within, any 
affected district     a   subject
agency  within the affected territory. However, if the number of
voters entitled to vote within  an affected district
  subject agency  is less than 300,  the
petition requesting the proposal to be submitted to the voters
  the protests  shall be signed by at least 25
percent of the voters entitled to vote. 
   (2) 
    (b)  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 
 protests have  been signed by at least 10 percent of the
number of landowners within any  affected district 
 subject agency  within the affected territory, owning at
least 10 percent of the assessed value of land within the territory.
However, if the number of voters entitled to vote within  an
affected district   a subject agency  is less than
300,  the petition requesting the proposal to be submitted to
the voters   protests  shall be signed by at least
25 percent of the voters entitled to vote. 
   (b) The petition shall be filed with the commission prior to the
conclusion of the protest hearing. 
  SEC. 15.  Section 57114 of the Government Code is repealed.

   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 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.