BILL NUMBER: AB 948	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Patterson

                        FEBRUARY 26, 2015

   An act to amend Section  61105   61040 
of  , and to add Section 61040.3 to,  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. 
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.  
   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.  
   This bill would make legislative findings and declarations as to
the necessity of a special statute for Sierra Cedars Community
Services District.  
   This bill would make a nonsubstantive change to those provisions.

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


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 61040 of the  
Government Code   , as amended by Section 1 of Chapter 505
of the Statutes of 2014, is   amended to read: 
   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)  No   Except as provided in Section
61040.3, no  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.
   SEC. 2.    Section 61040 of the   Government
Code   , as added by Section 2 of Chapter 505 of the 
 Statutes of 2014, is amended to read: 
   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)  No   Except as provided in Section
61040.3, no  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.
   SEC.   3.    Section 61040.3 is added to the
  Government Code   , to read:  
   61040.3.  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. 
   SEC. 4.    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.  
  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.