BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 1427                     HEARING: 6/12/13
          AUTHOR:  Committee on Local GovernmentFISCAL:  No
          VERSION:  4/30/13                     TAX LEVY:  No
          CONSULTANT:  Lui                      

                       LOCAL AGENCY FORMATION COMMISSIONS
          

          Proposes eight changes to laws affecting local government  
          organization and reorganization.


                           Background and Existing Law  

          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.

          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.  The Assembly Local Government Committee  
          annually authors a LAFCO-related omnibus bill (AB 2795,  
          2010; AB 1430, 2011;    AB 2698, 2012).  Last year's LAFCO  
          clean-up bill was AB 2698 (Assembly Local Government  
          Committee, 2012).


                                   Proposed Law  

          AB 1427 makes changes to state laws affecting local agency  
          formation commissions (LAFCOs) and local governments'  




          AB 1427 -- 4/30/13 -- Page 2



          boundaries. 

           Independent vs. dependent special district definition  .   
          Current law defines an "independent district" or  
          "independent special district" to include any special  
          district that has a legislative body, whose members are  
          elected by registered voters or landowners within the  
          district or whose members are appointed to fixed terms.  AB  
          1427 clarifies that difference between an independent  
          district and a dependent district.  

           Landowner definition  .  Current law defines a "landowner" as  
          any of the following:
                 A person shown as the landowner on the last  
               equalized assessment roll by the county at the time  
               the determination is required to be made;
                 Any person shown in the recorded written agreement  
               of sale as the purchase; or
                 Any public agency owning land other than highways,  
               rights-of-way, easements, waterways, or canals.

          AB 1427 adds the plural forms of "person" in the  
          definition.


           Independent special district selection committee  .  Current  
          law specifies the makeup, meeting requirements, and  
          election proceedings of an independent special district  
          selection committee.  The law also requires that the  
          selection committee to appoint two regular members and one  
          alternate member to the commission.  AB 1427 clarifies that  
          appointed and elected commissioners are members of an  
          independent special district's legislative body.  

           Santa Clara County  .  Santa Clara County has special  
          provisions regarding reorganization proposals.  Current law  
          prohibits the LAFCO from reviewing a reorganization that  
          includes an annexation to any city in Santa Clara County  
          that is within the urban service area of the city and the  
          annexation is initiated by resolution.  Instead, the city  
          council must be the conducting authority for the  
          reorganization and must make specified findings in adopting  
          a resolution approving the reorganization.  AB 1427  
          clarifies that this provision of law applies to city  
          annexations and reorganizations involving city annexations.  
           





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           Petitions for a merger of a district  .  Current law  
          specifies procedures for petitions for a merger or  
          establishment of a subsidiary district.  AB 1427 corrects  
          the typo, "resident voter district," to "registered voter  
          district."

           Protest hearing notice  .  Current law requires a LAFCO  
          executive office to give notice of the protest hearing, and  
          sets forth procedures for those notice requirements.  A  
          protest hearing must be held within 60 days from the date  
          specified for the hearing in the notice.  If inhabited  
          territory is proposed to be annexed to a city with more  
          than 100,000 residents in the County of Los Angeles, the  
          protest hearing date must be at least 90 days, but not more  
          than 105 days, after the adoption date of the resolution  
          initiating the proceeding.  AB 1427 repeals the extended  
          protest period. 

           Dissolution  .  Current law sets forth procedures for a  
          dissolution.  AB 1427 corrects a wording error, changing  
          "consolidation" to "dissolution" in the relevant section.
           Election location  .  For a change of organization or  
          reorganization that is subject to voter confirmation, a  
          LAFCO must determine where the election will be held.  AB  
          1427 deletes an obsolete cross-reference and replaces it  
          with the proper code section. 


                               State Revenue Impact
           
          No estimate. 


                                     Comments  

           Purpose of the bill  .  Even the best written statutes  
          contain minor flaws.  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  
          AB 1427 don't raise statewide policy questions.  AB 1427  
          makes a complex statute easier for property owners,  
          residents, and local officials to use.





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                                 Assembly Actions  

          Assembly Local Government:8-0
          Assembly Floor:                    70-0


                         Support and Opposition  (6/6/13)

           Support  :  California Association of Local Agency Formation  
          Commissions (CALAFCO); Association of California Water  
          Agencies; Riverside LAFCO; San Bernardino LAFCO; San Diego  
          LAFCO.

           Opposition  :  Unknown.