BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 743| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 743 Author: Logue (R) Amended: 6/11/13 in Senate Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/5/13 AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu ASSEMBLY FLOOR : 77-0, 4/25/13 - See last page for vote SUBJECT : The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 SOURCE : Author DIGEST : This bill makes permanent provisions of law that allow local agency formation commissions (LAFCOs) to waive the protest hearing for the annexation of unincorporated islands. ANALYSIS : Existing law: 1. Establishes the procedures for the organization and reorganization of cities, counties, and special districts under the Cortese-Knox-Hertzberg Local Reorganization Act of 2000. 2. Requires a LAFCO to approve the annexation after notice and hearing and waive protest proceedings for the annexation to a CONTINUED AB 743 Page 2 city of an unincorporated island, if the following apply: A. The change of organization or reorganization is initiated on or after January 1, 2000, and before January 1, 2014; B. The change of reorganization is proposed by resolution adopted by the affected city; and, C. The LAFCO finds that the territory in the proposed change of organization or reorganization proposal does not exceed 150 acres in area, constitutes an entire unincorporated island located within the limits of a city, is surrounded, is substantially developed or developing, is not prime agricultural land, and will benefit from the change of organization or reorganization or will benefit from the annexing city. 3. Allows a separate property tax transfer agreement between a city and county regarding an annexed island under the process in #2 above without affecting any existing master tax sharing agreement between the city and county. 4. Provides limitations on the process described in #2 above for territory surrounded by a city after January 1, 2000, in which annexation is proposed. This bill: 1. Eliminates the January 1, 2014, sunset date that allows a LAFCO to waive the protest hearing for the annexation of territory that meets specified requirements in state law. 2. Provides that the authority to initiate, conduct, and complete changes in organization or reorganization does not apply to any territory that, after January 1, 2014, became surrounded or substantially surrounded by the city to which the annexation is proposed, except for islands created after January 1, 2014 as a result of boundary adjustments between two counties. 3. Repeals language that specifies the process for island annexations on or after the January 1, 2014 sunset date. CONTINUED AB 743 Page 3 FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/12/13) California Association of Local Agency Formation Commissions California State Association of Counties City of Napa Local Agency Formation Commission of Napa County Orange County Local Agency Formation Commission Riverside Local Agency Formation Commission ARGUMENTS IN SUPPORT : Supporters argue that the streamlined provisions in existing law have assisted cities, counties, and LAFCOs to transition municipal services in these areas to the adjacent cities, which are best able to provide those services. This bill will make those beneficial provisions permanent. ASSEMBLY FLOOR : 77-0, 4/25/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Lowenthal, Nazarian, Vacancy AB:k 6/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED