Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 948

Introduced by Assembly Member Patterson

February 26, 2015

An act to amend Section begin delete 61105 end delete begin insert 61040 end insert of begin insert , and to add Section 61040.3 to, end insert the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 948, as amended, Patterson. Local government: community service districts.

The Community Services District Law authorizes the establishment of community services districts to provide various services to the geographic area within each district, and further authorizes specified community services districts to enforce covenants, conditions, and restrictions within that district, as provided. begin insert Existing law requires the board of directors of the district to consist of 5 people, and requires, among other things, that each member of the board of directors be a voter of the district, as specified. end insert

begin insert

This bill would authorize a person to serve on the Board of Directors of the Sierra Cedars Community Services District if he or she holds title to land within the district.

end insert begin insert

This bill would make legislative findings and declarations as to the necessity of a special statute for Sierra Cedars Community Services District.

end insert begin delete

This bill would make a nonsubstantive change to those provisions.

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 61040 of the end insert begin insert Government Code end insert begin insert , as
amended by Section 1 of Chapter 505 of the Statutes of 2014, is
amended to read: end insert

61040.  

(a) Except as provided in Section 61040.1, a legislative
body of five members known as the board of directors shall govern
each district. The board of directors shall establish policies for the
operation of the district. The board of directors shall provide for
the implementation of those policies which is the responsibility of
the district’s general manager.

(b)  begin delete No end delete begin insert Except as provided in Section 61040.3, no end insert person shall
be a candidate for the board of directors unless he or she is a voter
of the district or the proposed district. No person shall be a
candidate for the board of directors that is elected by divisions or
from divisions unless he or she is a voter of that division or
proposed division.

(c) All members of the board of directors shall exercise their
independent judgment on behalf of the interests of the entire
district, including the residents, property owners, and the public
as a whole in furthering the purposes and intent of this division.
Where the members of the board of directors have been elected
by divisions or from divisions, they shall represent the interests of
the entire district and not solely the interests of the residents and
property owners in their divisions.

(d) Service on a municipal advisory council established pursuant
to Section 31010 or service on an area planning commission
established pursuant to Section 65101 shall not be considered an
incompatible office with service as a member of a board of
directors.

(e) A member of the board of directors shall not be the general
manager, the district treasurer, or any other compensated employee
of the district, except for volunteer firefighters as provided by
Section 53227.

(f) This section shall be repealed on January 1, 2035.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 61040 of the end insert begin insert Government Code end insert begin insert , as added by
Section 2 of Chapter 505 of the Statutes of 2014, is amended to
read: end insert

61040.  

(a) A legislative body of five members known as the
board of directors shall govern each district. The board of directors
shall establish policies for the operation of the district. The board
of directors shall provide for the implementation of those policies
which is the responsibility of the district’s general manager.

(b)  begin delete No end delete begin insert Except as provided in Section 61040.3, no end insert person shall
be a candidate for the board of directors unless he or she is a voter
of the district or the proposed district. No person shall be a
candidate for the board of directors that is elected by divisions or
from divisions unless he or she is a voter of that division or
proposed division.

(c) All members of the board of directors shall exercise their
independent judgment on behalf of the interests of the entire
district, including the residents, property owners, and the public
as a whole in furthering the purposes and intent of this division.
Where the members of the board of directors have been elected
by divisions or from divisions, they shall represent the interests of
the entire district and not solely the interests of the residents and
property owners in their divisions.

(d) Service on a municipal advisory council established pursuant
to Section 31010 or service on an area planning commission
established pursuant to Section 65101 shall not be considered an
incompatible office with service as a member of a board of
directors.

(e) A member of the board of directors shall not be the general
manager, the district treasurer, or any other compensated employee
of the district, except for volunteer firefighters as provided by
Section 53227.

(f) This section shall become operative on January 1, 2035.

begin insert

begin insert SEC. end insert begin insert 3. end insert   

end insert

begin insert Section 61040.3 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 61040.3. end insert   

Notwithstanding subdivision (b) of Section 61040, a
person may be a candidate for the board of directors of the Sierra
Cedars Community Services District if he or she holds title to land
within the district.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances relating to the
types of residences within the Sierra Community Services District.

end insert

begin delete

SECTION 1.  

Section 61105 of the Government Code is
amended to read:

61105.  

(a) The Legislature finds and declares that the unique
circumstances that exist in certain communities justify the
enactment of special statutes for specific districts. In enacting this
section, the Legislature intends to provide specific districts with
special statutory powers to provide special services and facilities
that are not available to other districts.

(b) (1) The Los Osos Community Services District may borrow
money from public or private lenders and lend those funds to
property owners within the district to pay for the costs of
decommissioning septic systems and constructing lateral
connections on private property to facilitate the connection of those
properties to the district’s wastewater treatment system. The district
shall lend money for this purpose at rates not to exceed its cost of
borrowing and the district’s cost of making the loans. The district
may require that the borrower pay the district’s reasonable
attorney’s fees and administrative costs in the event that the district
is required to take legal action to enforce the provisions of the
contract or note securing the loan. The district may elect to have
the debt payments or any delinquency collected on the tax roll
pursuant to Section 61116. To secure the loan as a lien on real
property, the district shall follow the procedures for the creation
of special tax liens in Section 53328.3 of this code and Section
3114.5 of the Streets and Highways Code.

(2) (A) (i) Except as otherwise provided in this paragraph, on
and after January 1, 2007, the Los Osos Community Services
District shall not undertake any efforts to design, construct, and
operate a community wastewater collection and treatment system
within, or for the benefit of, the district. The district shall resume
those powers on the date specified in any resolution adopted
pursuant to subdivision (l) of Section 25825.5.

(ii) Upon resuming the powers pursuant to subdivision (i), the
Los Osos Community Services District may continue the program
to offset assessments or charges for very low or low-income
households with funding sources, including, but not limited to,
grants, adopted pursuant to subdivision (g) of Section 25825.5. If
the county has not implemented that program, the Los Osos
Community Services District may adopt a program that complies
with subdivision (g) of Section 25825.5 to offset assessments or
charges for very low or low-income households. The Los Osos
Community Services District shall not include in an assessment
or charge an amount to cover the costs to the county in carrying
out the offset program.

(B) Nothing in this paragraph shall affect the district’s power
to do any of the following:

(i) Operate wastewater collection and treatment facilities within
the district that the district was operating on January 1, 2006.

(ii) Provide facilities and services in the territory that is within
the district, but outside the prohibition zone.

(iii) Provide facilities and services, other than wastewater
collection and treatment, within the prohibition zone.

(C) Promptly upon the adoption of a resolution by the Board of
Supervisors of the County of San Luis Obispo requesting this
action pursuant to subdivision (i) of Section 25825.5, the district
shall convey to the County of San Luis Obispo all retained
rights-of-way, licenses, other interests in real property, funds, and
other personal property previously acquired by the district in
connection with construction projects for which the district awarded
contracts in 2005.

(c) The Heritage Ranch Community Services District may
acquire, construct, improve, maintain, and operate petroleum
storage tanks and related facilities for its own use, and sell those
petroleum products to the district’s property owners, residents,
and visitors. The authority granted by this subdivision shall expire
when a private person or entity is ready, willing, and able to
acquire, construct, improve, maintain, and operate petroleum
storage tanks and related facilities, and sell those petroleum
products to the district and its property owners, residents, and
visitors. At that time, the district shall either (1) diligently transfer
its title, ownership, maintenance, control, and operation of those
petroleum tanks and related facilities at a fair market value to that
private person or entity, or (2) lease the operation of those
petroleum tanks and related facilities at a fair market value to that
private person or entity.

(d) The Wallace Community Services District may acquire,
own, maintain, control, or operate the underground gas distribution
pipeline system located and to be located within Wallace Lake
Estates for the purpose of allowing a privately owned provider of
liquefied petroleum gas to use the underground gas distribution
system pursuant to a mutual agreement between the private
provider and the district or the district’s predecessor in interest.
The district shall require and receive payment from the private
provider for the use of that system. The authority granted by this
subdivision shall expire when the Pacific Gas and Electric
Company is ready, willing, and able to provide natural gas service
to the residents of Wallace Lake Estates. At that time, the district
shall diligently transfer its title, ownership, maintenance, control,
and operation of the system to the Pacific Gas and Electric
Company.

(e) The Cameron Park Community Services District, the El
Dorado Hills Community Services District, the Golden Hills
Community Services District, the Mountain House Community
Services District, the Rancho Murieta Community Services District,
the Salton Community Services District, the Stallion Springs
Community Services District, and the Tenaja Meadows Community
Services District, which enforced covenants, conditions, and
restrictions prior to January 1, 2006, pursuant to former Section
61601.7 and former Section 61601.10, may continue to exercise
the powers provided by former Section 61601.7 and former Section
61601.10.

(f) (1) The Bel Marin Keys Community Services District may
enforce all or part of the covenants, conditions, and restrictions
for a tract, and assume the duties of the architectural control
committee, to the extent that a tract’s covenants, conditions, and
restrictions authorize an architectural control committee. Before
the district can enforce covenants, conditions, and restrictions, and
assume the duties of an architectural control committee, for a tract,
the board of directors shall:

(A) Receive a written request from the board of directors of the
tract’s property owners’ association or homeowners’ association,
with a petition signed by not less than a majority of the property
owners of the parcels within the tracts covered by those
associations, requesting the district to enforce the covenants,
conditions, and restrictions for that tract and assume the duties of
the architectural control committee for that tract, if an architectural
control committee is called for in the covenants, conditions, and
restrictions.

(B) Conduct a public hearing on the question, after giving mailed
notice to each affected property owner of the date, time, and
location of the meeting.

(C) Submit an application to the local agency formation
commission pursuant to Section 56824.10, specifying the exact
nature and scope of the intended services to be provided by the
district.

(D) Receive the approval of the local agency formation
commission, pursuant to Article 1.5 (commencing with Section
56824.10) of Chapter 5 of Part 3 of Division 3 of Title 5, which
may include completion terms deemed appropriate by the
commission, to enforce covenants, conditions, and restrictions for
a tract, and to assume the duties of the architectural control
committee for that tract.

(E) Adopt an ordinance assuming the power to enforce
covenants, conditions, and restrictions for a tract, and to assume
the duties of the architectural control committee for that tract,
provided that the ordinance requires:

(i) The property owners within the tract to finance the
enforcement of the covenants, conditions, and restrictions, and the
duties of the architectural control committee.

(ii) The tract’s property owners’ association or homeowners’
association to indemnify the district for the costs of any litigation,
settlements, injuries, damages, or judgments arising from
enforcement of the covenants, conditions, and restrictions, and the
district’s duties as the architectural control committee.

(2) The Bel Marin Keys Community Services District may, by
ordinance, divest itself of the power undertaken under this
subdivision.

(g) The Bear Valley Community Services District, the Bell
Canyon Community Services District, the Cameron Estates
Community Services District, the Lake Sherwood Community
Services District, the Saddle Creek Community Services District,
the Wallace Community Services District, and the Santa Rita Hills
Community Services District may, for roads owned by the district
and that are not formally dedicated to or kept open for use by the
public for the purpose of vehicular travel, by ordinance, limit access
to and the use of those roads to the landowners and residents of
that district.

(h) Notwithstanding any other provision of law, the transfer of
the assets of the Stonehouse Mutual Water Company, including
its lands, easements, rights, and obligations to act as sole agent of
the stockholders in exercising the riparian rights of the
stockholders, and rights relating to the ownership, operation, and
maintenance of those facilities serving the customers of the
company, to the Hidden Valley Lake Community Services District
is not a transfer subject to taxes imposed by Part 11 (commencing
with Section 23001) of Division 2 of the Revenue and Taxation
Code.

(i) The El Dorado Hills Community Services District and the
Rancho Murieta Community Services District may each acquire,
construct, improve, maintain, and operate television receiving,
translating, or distribution facilities, provide television and
television-related services to the district and its residents, or
authorize the construction and operation of a cable television
system to serve the district and its residents by franchise or license.
In authorizing the construction and operation of a cable television
system by franchise or license, the district shall have the same
powers as a city or county under Section 53066.

(j) The Mountain House Community Services District may
provide facilities for television and telecommunications systems,
including the installation of wires, cables, conduits, fiber optic
lines, terminal panels, service space, and appurtenances required
to provide television, telecommunication, and data transfer services
to the district and its residents, and provide facilities for a cable
television system, including the installation of wires, cables,
conduits, and appurtenances to service the district and its residents
by franchise or license, except that the district may not provide or
install any facilities pursuant to this subdivision unless one or more
cable franchises or licenses have been awarded under Section
53066 and the franchised or licensed cable television and
telecommunications services providers are permitted equal access
to the utility trenches, conduits, service spaces, easements, utility
poles, and rights-of-way in the district necessary to construct their
facilities concurrently with the construction of the district’s
facilities. The district shall not have the authority to operate
television, cable, or telecommunications systems, except as
provided in Section 61100. The district shall have the same powers
as a city or county under Section 53066 in granting a franchise or
license for the operation of a cable television system.

end delete