California Legislature—2013–14 Regular Session

Assembly BillNo. 2762


Introduced by Committee on Local Government (Achadjian (Chair), Levine (Vice Chair), Alejo, Gordon, Melendez, Mullin, Rendon, and Waldron)

March 24, 2014


An act to amend Sections 56100, 56653, 56668, 56886, and 57113 of, and to repeal Section 56101 of, the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2762, as introduced, Committee on Local Government. Local government.

Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, provides the authority and procedures for the initiation, conduct, and completion of changes of organization and reorganization of cities and districts. The act does not apply to pending proceedings for a change or organization or reorganization for which the application was accepted for filing prior to January 1, 2001, as specified. The act authorizes these pending proceedings to be continued and completed under, and in accordance with, the law under which the proceedings were commenced.

This bill would repeal those provisions relating to pending proceedings for a change or organization or reorganization for which an application was accepted for filing prior to January 1, 2001, and make other conforming changes.

The act specifies that provisions governing the time within which an official or the commission is to act are, with specific exceptions, directory rather than mandatory.

This bill would make a technical amendment to that provision.

The act requires a local agency or school district that initiates proceedings for a change of local government organization or reorganization by submitting a resolution of application for a change of organization or reorganization to also submit a plan for providing services within the effected territory, as specified.

This bill would instead require, if a proposal for a change of organization or reorganization is submitted, that the applicant submit a plan for providing services within the effected territory.

The act specifies the factors that a local agency formation commission is required to consider in the review of a proposal for a change of organization or reorganization, including, among other things, a regional transportation plan, as specified, and its consistency with city or county general and specific plans.

This bill instead would require the local agency formation commission to consider, in the review of a proposal for a change of organization or reorganization, among other things, a regional transportation plan, and the consistency of the proposal for a change of organization or reorganization with city or county general and specific plans. By increasing the duties of a local agency formation commission, this bill would impose a state-mandated local program.

The act authorizes a change of organization or reorganization to provide for, or to be made subject to, one or more terms and conditions specified in the commission’s resolution making determinations, in which case, the terms and conditions imposed constitute the exclusive terms and conditions for the change of organization or reorganization, notwithstanding other specified general provisions of law.

This bill instead would provide, that if a change or reorganization is made subject to terms and conditions, those terms and conditions shall prevail in the event of a conflict with other specified general provisions of law.

The act defines a landowner-voter district and prescribes certain voting thresholds for landowner-voter districts for elections associated with proposals initiated by a local agency formation commission.

This bill would make nonsubstantive, technical changes to these provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 56100 of the Government Code is
2amended to read:

3

56100.  

(a) Except as otherwise provided in Sectionbegin delete 56036.5,end delete
4begin insert 56036.5 andend insert subdivision (b) of Section 56036.6,begin delete and Section
556101,end delete
this division provides the sole and exclusive authority and
6procedure for the initiation, conduct, and completion of changes
7of organization and reorganization for cities and districts. All
8changes of organization and reorganizations shall be initiated,
9conducted, and completed in accordance with, and as provided in,
10this division.

11(b) Notwithstanding any otherbegin delete provision ofend delete law, proceedings
12for the formation of a district shall be conducted as authorized by
13the principal act of the district proposed to be formed, except that
14the commission shall serve as the conducting authority and the
15procedural requirements of this division shall apply and shall
16prevail in the event of conflict with the procedural requirements
17of the principal act of the district. In the event of such a conflict,
18the commission shall specify the procedural requirements that
19apply, consistent with the requirements of this section.

20

SEC. 2.  

Section 56101 of the Government Code is repealed.

begin delete
21

56101.  

This division does not apply to any proceeding for a
22change of organization or reorganization for which the application
23shall have been accepted for filing by the executive officer pursuant
24to Section 56658 prior to January 1, 2001. These pending
25proceedings may be continued and completed under, and in
26accordance with, the provisions of law under which the proceedings
27were commenced. The repeals, amendments, and additions made
28by the act enacting this division shall not apply to any of those
29pending proceedings, and, the laws existing prior to January 1,
302001, shall continue in full force and effect, as applied to those
31pending proceedings.

end delete
32

SEC. 3.  

Section 56106 of the Government Code is amended
33to read:

P4    1

56106.  

Any provisions in this division governing the time
2within which an official or the commission is to act shall in all
3instances, except for notice requirements and the requirements of
4subdivisionbegin delete (i)end deletebegin insert (h)end insert of Section 56658 and subdivision (b) of Section
556895, be deemed directory, rather than mandatory.

6

SEC. 4.  

Section 56653 of the Government Code is amended
7to read:

8

56653.  

(a) begin deleteWhenever end deletebegin insertIfend insertbegin insert end insertabegin delete local agency or school district
9submits a resolution of applicationend delete
begin insert proposalend insert for a change of
10organization or reorganizationbegin insert is submittedend insert pursuant to this part,
11thebegin delete local agencyend deletebegin insert applicantend insert shall submitbegin delete with the resolution of
12applicationend delete
a plan for providing services within the affected
13territory.

14(b) The plan for providing services shall include all of the
15following information and any additional information required by
16the commission or the executive officer:

17(1) An enumeration and description of the services to be
18extended to the affected territory.

19(2) The level and range of those services.

20(3) An indication of when those services can feasibly be
21extended to the affected territory.

22(4) An indication of any improvement or upgrading of structures,
23roads, sewer or water facilities, or other conditions the local agency
24would impose or require within the affected territory if the change
25of organization or reorganization is completed.

26(5) Information with respect to how those services will be
27financed.

28

SEC. 5.  

Section 56668 of the Government Code is amended
29to read:

30

56668.  

Factors to be considered in the review of a proposal
31shall include, but not be limited to, all of the following:

32(a) Population and population density; land area and land use;
33per capita assessed valuation; topography, natural boundaries, and
34drainage basins; proximity to other populated areas; the likelihood
35of significant growth in the area, and in adjacent incorporated and
36unincorporated areas, during the next 10 years.

37(b) The need for organized community services; the present
38cost and adequacy of governmental services and controls in the
39area; probable future needs for those services and controls; probable
40effect of the proposed incorporation, formation, annexation, or
P5    1exclusion and of alternative courses of action on the cost and
2adequacy of services and controls in the area and adjacent areas.

3“Services,” as used in this subdivision, refers to governmental
4services whether or not the services are services which would be
5provided by local agencies subject to this division, and includes
6the public facilities necessary to provide those services.

7(c) The effect of the proposed action and of alternative actions,
8on adjacent areas, on mutual social and economic interests, and
9on the local governmental structure of the county.

10(d) The conformity of both the proposal and its anticipated
11effects with both the adopted commission policies on providing
12planned, orderly, efficient patterns of urban development, and the
13policies and priorities in Section 56377.

14(e) The effect of the proposal on maintaining the physical and
15economic integrity of agricultural lands, as defined by Section
1656016.

17(f) The definiteness and certainty of the boundaries of the
18territory, the nonconformance of proposed boundaries with lines
19of assessment or ownership, the creation of islands or corridors of
20unincorporated territory, and other similar matters affecting the
21proposed boundaries.

22(g) A regional transportation plan adopted pursuant to Section
23begin delete 65080, and its consistency with city or county general and specific
24plansend delete
begin insert 65080end insert.

begin insert

25(h) Consistency with city or county general and specific plans.

end insert
begin delete

26(h)

end delete

27begin insert(i)end insert The sphere of influence of any local agency which may be
28applicable to the proposal being reviewed.

begin delete

29(i)

end delete

30begin insert(j)end insert The comments of any affected local agency or other public
31agency.

begin delete

32(j)

end delete

33begin insert(k)end insert The ability of the newly formed or receiving entity to provide
34the services which are the subject of the application to the area,
35including the sufficiency of revenues for those services following
36the proposed boundary change.

begin delete

37(k)

end delete

38begin insert(l)end insert Timely availability of water supplies adequate for projected
39needs as specified in Section 65352.5.

begin delete

40(l) 

end delete

P6    1begin insert(m)end insertbegin insertend insertThe extent to which the proposal will affect a city or cities
2and the county in achieving their respective fair shares of the
3regional housing needs as determined by the appropriate council
4of governments consistent with Article 10.6 (commencing with
5Section 65580) of Chapter 3 of Division 1 of Title 7.

begin delete

6(m)

end delete

7begin insert(n)end insert Any information or comments from the landowner or owners,
8voters, or residents of the affected territory.

begin delete

9(n)

end delete

10begin insert(o)end insert Any information relating to existing land use designations.

begin delete

11(o)

end delete

12begin insert(p)end insert The extent to which the proposal will promote environmental
13justice. As used in this subdivision, “environmental justice” means
14the fair treatment of people of all races, cultures, and incomes with
15respect to the location of public facilities and the provision of
16public services.

17

SEC. 6.  

Section 56886 of the Government Code is amended
18to read:

19

56886.  

Any change of organization or reorganization may
20provide for, or be made subject to one or more of, the following
21terms and conditions. If a change of organization or reorganization
22is made subject to one or more of the following terms and
23conditions in the commission’s resolution making determinations,
24the terms and conditions imposed shallbegin delete constitute the exclusive
25terms and conditions for the change of organization or
26reorganization, notwithstandingend delete
begin insert prevail in the event of a conflict
27between a specific term and condition authorized pursuant to this
28section and any ofend insert
the general provisions of Part 5 (commencing
29with Section 57300). However, none of the following terms and
30conditions shall directly regulate land use, property development,
31or subdivision requirements:

32(a) The payment of a fixed or determinable amount of money,
33either as a lump sum or in installments, for the acquisition, transfer,
34use or right of use of all or any part of the existing property, real
35or personal, of any city, county, or district.

36(b) The levying or fixing and the collection of any of the
37following, for the purpose of providing for any payment required
38pursuant to subdivision (a):

39(1) Special, extraordinary, or additional taxes or assessments.

P7    1(2) Special, extraordinary, or additional service charges, rentals,
2or rates.

3(3) Both taxes or assessments and service charges, rentals, or
4rates.

5(c) The imposition, exemption, transfer, division, or
6apportionment, as among any affected cities, affected counties,
7affected districts, and affected territory of liability for payment of
8all or any part of principal, interest, and any other amounts which
9shall become due on account of all or any part of any outstanding
10or then authorized but thereafter issued bonds, including revenue
11bonds, or other contracts or obligations of any city, county, district,
12or any improvement district within a local agency, and the levying
13or fixing and the collection of any (1) taxes or assessments, or (2)
14service charges, rentals, or rates, or (3) both taxes or assessments
15and service charges, rentals, or rates, in the same manner as
16provided in the original authorization of the bonds and in the
17amount necessary to provide for that payment.

18(d) If, as a result of any term or condition made pursuant to
19subdivision (c), the liability of any affected city, affected county,
20or affected district for payment of the principal of any bonded
21indebtedness is increased or decreased, the term and condition
22may specify the amount, if any, of that increase or decrease which
23shall be included in, or excluded from, the outstanding bonded
24indebtedness of that entity for the purpose of the application of
25any statute or charter provision imposing a limitation upon the
26principal amount of outstanding bonded indebtedness of the entity.

27(e) The formation of a new improvement district or districts or
28the annexation or detachment of territory to, or from, any existing
29improvement district or districts.

30(f) The incurring of new indebtedness or liability by, or on behalf
31of, all or any part of any local agency, including territory being
32annexed to any local agency, or of any existing or proposed new
33improvement district within that local agency. The new
34indebtedness may be the obligation solely of territory to be annexed
35if the local agency has the authority to establish zones for incurring
36indebtedness. The indebtedness or liability shall be incurred
37substantially in accordance with the laws otherwise applicable to
38the local agency.

39(g) The issuance and sale of any bonds, including authorized
40but unissued bonds of a local agency, either by that local agency
P8    1or by a local agency designated as the successor to any local agency
2which is extinguished as a result of any change of organization or
3reorganization.

4(h) The acquisition, improvement, disposition, sale, transfer, or
5division of any property, real or personal.

6(i) The disposition, transfer, or division of any moneys or funds,
7including cash on hand and moneys due but uncollected, and any
8other obligations.

9(j) The fixing and establishment of priorities of use, or right of
10use, of water, or capacity rights in any public improvements or
11facilities or any other property, real or personal. However, none
12of the terms and conditions ordered pursuant to this subdivision
13shall modify priorities of use, or right of use, to water, or capacity
14rights in any public improvements or facilities that have been fixed
15and established by a court or an order of the State Water Resources
16Control Board.

17(k) The establishment, continuation, or termination of any office,
18department, or board, or the transfer, combining, consolidation,
19or separation of any offices, departments, or boards, or any of the
20 functions of those offices, departments, or boards, if, and to the
21extent that, any of those matters is authorized by the principal act.

22(l) The employment, transfer, or discharge of employees, the
23continuation, modification, or termination of existing employment
24contracts, civil service rights, seniority rights, retirement rights,
25and other employee benefits and rights.

26(m) The designation of a city, county, or district, as the successor
27to any local agency that is extinguished as a result of any change
28of organization or reorganization, for the purpose of succeeding
29to all of the rights, duties, and obligations of the extinguished local
30agency with respect to enforcement, performance, or payment of
31any outstanding bonds, including revenue bonds, or other contracts
32and obligations of the extinguished local agency.

33(n) The designation of (1) the method for the selection of
34members of the legislative body of a district or (2) the number of
35those members, or (3) both, where the proceedings are for a
36consolidation, or a reorganization providing for a consolidation or
37formation of a new district and the principal act provides for
38alternative methods of that selection or for varying numbers of
39those members, or both.

P9    1(o) The initiation, conduct, or completion of proceedings on a
2proposal made under, and pursuant to, this division.

3(p) The fixing of the effective date or dates of any change of
4organization, subject to the limitations of Section 57202.

5(q) Any terms and conditions authorized or required by the
6principal act with respect to any change of organization.

7(r) The continuation or provision of any service provided at that
8time, or previously authorized to be provided by an official act of
9the local agency.

10(s) The levying of assessments, including the imposition of a
11fee pursuant to Section 50029 or 66484.3 or the approval by the
12voters of general or special taxes. For the purposes of this section,
13imposition of a fee as a condition of the issuance of a building
14permit does not constitute direct regulation of land use, property
15development, or subdivision requirements.

16(t) The extension or continuation of any previously authorized
17charge, fee, assessment, or tax by the local agency or a successor
18local agency in the affected territory.

19(u) The transfer of authority and responsibility among any
20affected cities, affected counties, and affected districts for the
21administration of special tax and special assessment districts,
22including, but not limited to, the levying and collecting of special
23taxes and special assessments, including the determination of the
24annual special tax rate within authorized limits; the management
25of redemption, reserve, special reserve, and construction funds;
26the issuance of bonds which are authorized but not yet issued at
27the time of the transfer, including not yet issued portions or phases
28of bonds which are authorized; supervision of construction paid
29for with bond or special tax or assessment proceeds; administration
30of agreements to acquire public facilities and reimburse advances
31made to the district; and all other rights and responsibilities with
32respect to the levies, bonds, funds, and use of proceeds that would
33have applied to the local agency that created the special tax or
34special assessment district.

35(v) Any other matters necessary or incidental to any of the terms
36and conditions specified in this section. If a change of organization,
37reorganization, or special reorganization provides for, or is made
38subject to one or more of, the terms and conditions specified in
39this section, those terms and conditions shall be deemed to be the
40exclusive terms and conditions for the change of organization,
P10   1reorganization, or special reorganization, and shall control over
2any general provisions of Part 5 (commencing with Section 57300).

3

SEC. 7.  

Section 57113 of the Government Code is amended
4to read:

5

57113.  

Notwithstanding Section 57102, 57108, or 57111, for
6any proposal that was initiated by the commission pursuant to
7subdivision (a) of Section 56375, the commission shall forward
8the change of organization or reorganization for confirmation by
9the voters if the commission finds either of the following:

10(a) In the case of inhabited territory, protests have been signed
11by either of the following:

12(1) At least 10 percent of the number of landowners within any
13subject agency within the affected territory who own at least 10
14percent of the assessed value of land within the territory. However,
15if the number of landowners within a subject agency is less than
16300, the protests shall be signed by at least 25 percent of the
17landowners who own at least 25 percent of the assessed value of
18land within the territory of the subject agency.

19(2) At least 10 percent of the voters entitled to vote as a result
20of residing within, or owning land within, any subject agency
21within the affected territory. However, if the number of voters
22entitled to vote within a subject agency is less than 300, the protests
23shall be signed by at least 25 percent of the voters entitled to vote.

24(b) In the case of a landowner-voter district,begin delete thatend delete the territory
25is uninhabited and protests have been signed by at least 10 percent
26of the number of landowners within any subject agency within the
27affected territory,begin delete owningend deletebegin insert who ownend insert at least 10 percent of the
28assessed value of land within the territory. However, if the number
29ofbegin delete votersend deletebegin insert landownersend insert entitled to vote within a subject agency is
30less than 300, protests shall be signed by at least 25 percent of the
31begin delete votersend deletebegin insert landownersend insert entitled to vote.

32

SEC. 8.  

No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34a local agency or school district has the authority to levy service
35charges, fees, or assessments sufficient to pay for the program or
36level of service mandated by this act, within the meaning of Section
3717556 of the Government Code.



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