BILL ANALYSIS Ó SENATE GOVERNANCE & FINANCE COMMITTEE Senator Lois Wolk, Chair BILL NO: AB 2762 HEARING: 6/11/14 AUTHOR: Committee on Local GovernmentFISCAL: Yes VERSION: 5/6/14 TAX LEVY: No CONSULTANT: Ewing LOCAL AGENCY FORMATION COMMISSIONS Proposes several changes to laws affecting local government organization and reorganization. Background 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. 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. Last year's LAFCO clean-up bill was AB 1427 (Assembly Local Government Committee, Chapter 87, 2013). Proposed Law Assembly Bill 2762 makes several changes to state laws affecting local agency formation commissions (LAFCOs). 1.In 2001 the Cortese-Knox-Hertzberg Local Government Act of 2000 took effect, modifying its predecessor, the Cortese-Knox Local Government Reorganization Act of 1985. AB 2762 -- 5/6/14 -- Page 2 The 2000 reorganization allowed for applications pending before LAFCOs to be processed, if those applications had been submitted prior to January 1, 2001. There are no longer applications pending from before that date, making the code section obsolete. AB 2762 repeals the obsolete code section and its reference in a corresponding code section. 2.Independent special district members who serve on LAFCO are selected using an independent special district selection committee. AB 2762 modifies the authority of that committee in the following manner: AB 2762 would allow a majority of the committee members to determine to conduct the committee's business by mail, including holding all elections by mail. AB 2762 specifies that for an election to be valid, at least a quorum of special districts must submit valid ballots. If a quorum of valid ballots is not submitted according to the terms of an election, the executive officer is authorized to extend the date to submit ballots by 60 days. All ballot materials must be retained for at least six months following the announcement of results. 1.AB 2762 reauthorizes LAFCOs to review and comment on extensions of services into previously unserved territory or the creation of new service providers to extend urban type development, consistent with the LAFCOs statutory functions. This authority was enacted by AB 2259 (Salinas, Chapter 460, 2006) and it sunset on January 1, 2013. The reauthorization under AB 2762 would sunset on January 1, 2019. 2.AB 2762 clarifies that a proposal for a change of organization or reorganization can be submitted by a local agency, or by others, such as a petition of residents, which is common practice. 3.AB 2762 clarifies that the specific terms and conditions imposed by a LAFCO, consistent with its specific authority, prevail in the event of a conflict with any general provisions under Government Code 57300. 4.Corrects other non-substantive, technical and AB 2762 -- 5/6/14 -- Page 3 cross-reference errors. State Revenue Impact No estimate. Comment 1. 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 2762 do not raise statewide policy questions. AB 2762 makes a complex statute easier for property owners, residents, and local officials to use. Assembly Actions Assembly Local Government Committee: 9-0 Assembly Appropriations 17-0 Assembly Floor: 73-0 Support and Opposition (6/5/14) Support : Amador Local Agency Formation Commission; Butte Local Agency Formation Commission; California Association of Local Agency Formation Commissions; California Special Districts Association; Contra Costa Local Agency Formation Commission; Local Agency Formation Commission for the County of Los Angeles; Local Agency Formation Commission for San Bernardino; Local Agency Formation Commission of Napa County; Local Agency Formation Commission of Yolo County; Marin Local Agency Formation Commission; Orange County Local Agency Formation Commission; Placer County Local Agency Formation Commission; Riverside Local Agency Formation Commission; San Benito Local Agency Formation Commission; San Luis Obispo Local Agency Formation Commission; Santa Clara County Local Agency Formation Commission; Sonoma Local Agency Formation Commission; AB 2762 -- 5/6/14 -- Page 4 Stanislaus Local Agency Formation Commission. Opposition : Unknown.