BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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  
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             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.


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           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

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