BILL ANALYSIS                                                                                                                                                                                                    �



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        CONCURRENCE IN SENATE AMENDMENTS
        AB 743 (Logue)
        As Amended  June 11, 2013
        Majority vote
         
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        |ASSEMBLY:  |77-0 |(April 25,      |SENATE: |33-0 |(July 8, 2013) |
        |           |     |2013)           |        |     |               |
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         Original Committee Reference:    L. GOV.  

         SUMMARY  :  Makes permanent provisions of law that allow local agency  
        formation commissions (LAFCOs) to waive the protest hearing for the  
        annexation of unincorporated islands.  Specifically,  this bill  :

        1)Deletes the January 1, 2014, sunset date that allows a LAFCO to  
          waive the protest hearing for the annexation of unincorporated  
          islands of 150 acres or less, subject to specific requirements,  
          thereby making the provisions permanent.  

        2)Repeals a code section which specifies a process for island  
          annexations after the existing sunset date.  

        3)Makes findings and declarations, and other conforming changes.  

         The Senate amendments  make findings and declarations that the  
        statutes requiring LAFCOs to annex the unincorporated island and  
        waive protest proceedings, subject to criteria in existing law, are  
        consistent with the intent of promoting orderly growth and  
        development and facilitate the annexation of disadvantaged  
        unincorporated communities, pursuant to existing law.  
         
        EXISTING LAW  :

        1)Establishes the Cortese-Knox-Hertzberg Local Reorganization Act of  
          2000 (CKH Act).

        2)Requires a LAFCO to approve the annexation after notice and  
          hearing and waive protest proceedings for the annexation to a 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;









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           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.
         
        FISCAL EFFECT  :  None 

         COMMENTS  :  The Legislature has delegated much of its authority over  
        the boundaries of cities and special districts to LAFCOs in each  
        county.  The courts often refer to LAFCOs as the Legislature's  
        watchdog over local boundaries.  The CKH Act establishes the  
        procedures for local government changes in organization including  
        city incorporations, annexations to a city or special district, and  
        city and special district consolidation, reorganization,  
        disincorporation and dissolution.  An island annexation occurs when  
        a city or district attaches additional territory, an island, to its  
        boundary.  

        Many cities in California still contain "islands" of unincorporated  
        pockets of land which are surrounded by cities.  Islands occur as a  
        result of past boundary decisions, most of which pre-date the  
        establishment of LAFCOs to regulate city boundaries or when an area  
        is unincorporated or annexed and a particular area does not want to  
        be included.  Supporters argue that unincorporated islands can lead  
        to difficult service delivery problems for both cities and counties.  
         Additionally, islands can be expensive and inefficient for counties  
        to serve, as residents of these islands often use city parks,  
        libraries, and other services even though their homes lie outside  
        the city limits.  

        Since 1977, state law has provided an expedited annexation process  
        for unincorporated islands to encourage cities to eliminate past  
        boundary mistakes and to encourage the efficient provision of  
        services.  Under current law, if a city applies to annex an  
        unincorporated island, the LAFCO must approve the annexation after a  
        public hearing if the island meets specified statutory conditions.   
        In addition, the LAFCO must waive the protest hearing requirement.   
        This provision which is set to expire on January 1, 2014, has  








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        already been amended several times by AB 2227 (Harman), Chapter 548,  
        Statutes of 2002, and AB 2223 (Salinas), Chapter 351, Statutes of  
        2006.

        This bill deletes the January 1, 2014, sunset date on the statutes  
        requiring LAFCOs to annex the unincorporated island and waive  
        protest proceedings, subject to criteria in existing law.   
        Additionally, the bill repeals a provision of law which establishes  
        a process for island annexations after the existing January 1, 2014,  
        sunset date expires.  The author and supporters argue that the  
        section is no longer necessary because this bill makes the island  
        annexation process permanent, and therefore, no longer requires  
        statute to prescribe a process beyond January 1, 2014.  This bill is  
        author-sponsored.  

        The author argues, "With the sunset set to expire on January 1,  
        2014, a survey indicated that 54% of LAFCOs would benefit if they  
        had more time to continue annexations."  An informal poll of LAFCO  
        executive officers conducted by the California Association of Local  
        Agency Formation Commissions (CALAFCO) found support for removing  
        the sunset date.  Out of a total of 28 respondents, LAFCOs in the  
        counties of Alameda, Butte, Contra Costa, El Dorado, Kern, Los  
        Angeles, Napa, Orange, Riverside, San Joaquin, Santa Clara, Santa  
        Cruz, Solano, Sonoma, Tulare, and Ventura have remaining islands  
        that would potentially benefit from an elimination of the sunset  
        date.

        Support arguments:  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.

        Opposition arguments:  None on file. 


         Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
        319-3958                                               


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