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.  




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             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  





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            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;  





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          Stanislaus Local Agency Formation Commission.

           Opposition  :  Unknown.