BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2698|
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                                    CONSENT


          Bill No:  AB 2698
          Author:   Assembly Local Government Committee
          Amended:  6/6/12 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  8-0, 6/13/12
          AYES:  Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe, 
            La Malfa, Liu

           ASSEMBLY FLOOR  :  77-0, 5/21/12 - See last page for vote


           SUBJECT  :    Local government:  reorganization 

           SOURCE  :     Author


           DIGEST  :    This bill proposes several changes to laws 
          affecting local government organization and reorganization.

           ANALYSIS  :     The Cortese-Knox-Hertzberg Local Government 
          Reorganization Act delegates the Legislature's power to 
          control the boundaries of cities and special districts to 
          local agency formation commissions (LAFCOs).  The courts 
          call LAFCOs the Legislature's watchdog over local boundary 
          changes.

          This bill makes changes to state laws affecting local 
          agency formation commissions (LAFCOs) and local 
          governments' boundaries. 

           1.Protest provisions  .  This bill reorganizes protest 
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            provisions of the Cortese-Knox-Hertzberg Local Government 
            Reorganization Act of 2000.  

           2.Goleta West Sanitary District  .  The Act requires a LAFCO 
            to order the consolidation of districts, dissolution, 
            merger, or a reorganization that includes any of these 
            changes, without an election, pursuant to state law.  The 
            Act exempts the Goleta Sanitary District or the Goleta 
            West Sanitary District from these provisions.  This bill 
            repeals this exemption, which expired January 1, 2003. 

           3.Spheres of influence  .  The Act requires a LAFCO to 
            determine the sphere of influence (SOI) of each local 
            governmental agency and to enact policies that promote 
            local and orderly development of areas within SOIs.  This 
            bill requires a LAFCO to develop and determine the SOI of 
            each city and each special district that is subject to 
            the LAFCO's jurisdiction. 

           4.Revise and recast  .  If a LAFCO 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 moves this provision from 
            the statute dealing with district consolidations that are 
            initiated by special districts' governing boards to the 
            statute pertaining to the formation of reorganization 
            committees.  The bill also revises and recasts several 
            provisions related to the initiative of a change of 
            organization or reorganization that affects more than one 
            special district. 

           5.Waiver of protest proceedings  .  The Act authorizes a 
            LAFCO to approve changes in organization or 
            reorganization proposals, if proposals are consistent 
            with a LAFCO's adopted written policies, procedures, and 
            guidelines.  A LAFCO must require voter-approval of a 
            change in organization or reorganization that includes an 
            incorporation or disincorporation.  

            This bill provides that voter approval is required for a 
            change of organization or reorganization that consists of 
            an incorporation or disincorporation.  The bill provides 
            specific protest standards for district dissolution, 

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            consolidation of two or more districts, certain 
            reorganizations, and the merger or establishment of a 
            subsidiary district.  The bill also authorizes the waiver 
            of protest proceedings under specified circumstances and 
            sets forth procedures that apply to those waivers, 
            including specified notice mailings.  The bill exempts 
            from voter approval a change of organization that 
            includes a dissolution, except if the proposal meets 
            certain requirements subject to protest procedures. 

           6.Technical amendments  .  This bill makes other technical 
            and conforming changes. 

           Comments
           
          As practitioners find problems with the 
          Cortese-Knox-Hertzberg Act, they ask for statutory 
          improvements.  These minor problems do not warrant separate 
          (and expensive) bills.  According to the Legislative 
          Analyst, in 2001-02 the cost of producing a bill was 
          $17,890.

          Legislators respond by combining several of these minor 
          topics into an annual "omnibus bill."  Although this 
          practice may violate a strict interpretation of the 
          single-subject and germaneness rules as presented in 
          Californians for an Open Primary v. McPherson (2006), it is 
          an expeditious and relatively inexpensive way to respond to 
          multiple requests.  Last year's LAFCO clean-up bill was AB 
          2795 (Assembly Local Government Committee, 2010).

          When statutory problems appear in the state law affecting 
          LAFCOs, the Assembly Local Government Committee avoids 
          legislative costs by combining several changes to the state 
          laws into a single, consensus bill.  By carefully reviewing 
          each item with the affected parties, the Committee also 
          avoids controversy.  The changes made by this bill don't 
          raise statewide policy questions.  This bill makes a 
          complex statute easier for property owners, residents, and 
          local officials to use.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


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           SUPPORT  :   (Verified  6/14/12)

          California Association of Local Agency Formation 
          Commissions
          Coalition of California LAFCOs
          El Dorado Local Agency Formation Commission
          Riverside Local Agency Formation Commission
          San Diego Local Agency Formation Commission


           ASSEMBLY FLOOR  :  77-0, 5/21/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth 
            Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber, 
            Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, 
            Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, 
            Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, 
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Fletcher, Roger Hernández, Perea


          AGB:nl  6/14/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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