BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1217


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1217 (Daly)


          As Amended  August 2, 2016


          Majority vote


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          |ASSEMBLY:  |47-25 |(May 26, 2015) |SENATE: |24-12 |(August 15,      |
          |           |      |               |        |      |2016)            |
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          |           |      |               |        |      |                 |
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          Original Committee Reference:  L. GOV.




          SUMMARY:  Prohibits the governing board (Board) of the Orange  
          County Fire Authority (OCFA) from including alternate members.  


          The Senate amendments delete language that would have altered  
          the composition of the OCFA Board and add language prohibiting  
          the Board from including alternate members.




          AS PASSED BY THE ASSEMBLY, this bill would have restructured the  
          composition of the OCFA Board by reducing the current 25-member  
          Board to 13 members, most of whom would have been selected by an  
          as-yet-to-be-created OCFA City Selection Committee.  The  
          existing OCFA Board - comprised of two members from the County  








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          Board of Supervisors (BOS) and one member from each of the  
          cities that are a party to the joint powers agreement that  
          created the OCFA - would have been eliminated.  Instead, the  
          OCFA Board would have been comprised of the following:


          1)Three members of the County BOS, selected by the BOS;


          2)One member from each of the five supervisorial districts of  
            the County, elected by the OCFA City Selection Committee on a  
            population weighted voting basis; and,


          3)One member from each of the five supervisorial districts of  
            the County, elected by the OCFA City Selection Committee on a  
            "one city, one vote" basis.


          FISCAL EFFECT:  None


          COMMENTS:  


          1)Bill Summary.  This bill prohibits the composition of the OCFA  
            Board from including alternate members.  This bill is  
            sponsored by the author.


          2)Background.  OCFA is a joint powers agency (JPA) formed  
            pursuant to a joint powers agreement in 1995 to provide fire  
            protection and related services to 18 member cities and the  
            unincorporated area within Orange County.  Because five  
            additional cities have become members of OCFA since its  
            formation, OCFA now operates within 23 cities and the  
            unincorporated area in Orange County.


            OCFA's joint powers agreement has been amended four times:  in  
            1999, 2010, 2013, and 2015.  The agreement establishes a  
            25-member board of directors to govern OCFA.  The board is  








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            comprised of one voting member from each member city and two  
            voting members from Orange County.  Until last year, each  
            member jurisdiction could name an alternate member to OCFA's  
            board, making 49 people eligible to attend OCFA board  
            meetings.  


            The most recent amendment to OCFA's joint powers agreement,  
            which took effect last year, eliminated the alternate member  
            positions on OCFA's board.  Conversations prompted by this  
            bill's previous versions led a majority of OCFA's member  
            agencies to conclude that OCFA could address some of the  
            concerns raised about the Board's governance by eliminating  
            the 24 alternate board member positions.  Although the member  
            agencies approved an amendment to OCFA's joint powers  
            agreement that eliminated the alternate board member  
            positions, advocates for reforming OCFA's governance structure  
            remain concerned that these changes could easily be undone by  
            a subsequent approval of another amendment to the joint powers  
            agreement.  This bill codifies in state law the changes that  
            OCFA's member agencies approved last year.


          3)Joint Exercise of Powers Act.  JPAs have existed in California  
            for nearly 100 years, and were originally created to allow  
            multiple local governments in a region to pool resources to  
            meet common needs.  The Joint Exercise of Powers Act  
            authorizes federal, state and local agencies to create and use  
            a joint powers agreement, which is a legal document that  
            allows the contracting parties to exercise powers that are  
            common to all of the contracting parties.  


            A joint powers agreement can be administered by one of the  
            contracting agencies, or it can be carried out by a new,  
            separate public entity called a joint powers authority (JPA).   
            Joint powers agreements are an attractive tool for local  
            governments because they facilitate more efficient service  
            provision through collaboration, and they allow local entities  
            to issue bonds without voter ratification.  Public officials  
            have created about 700 JPAs statewide.









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            The OCFA is not a special district, but was formed as a JPA  
            and is, therefore, governed by California's JPA laws.  Its  
            agreement allows OCFA's member agencies to change the OCFA  
            Board by a two-thirds vote.


          4)Policy Considerations.  The Legislature may wish to consider  
            the precedent this bill would establish.  The purpose of the  
            Joint Exercise of Powers Act is to allow California government  
            agencies to work collaboratively through a mutually-agreeable  
            governance structure established by a joint exercise of powers  
            agreement.  Having the Legislature override a joint powers  
            agreement to dictate a particular JPA's governing structure is  
            an unprecedented erosion of the broad, flexible authority  
            granted by the Joint Exercise of Powers Act.  In practice,  
            this bill has little substantive effect on OCFA, because it  
            merely codifies the existing structure of OCFA's governing  
            board.  However, passing this bill may invite similar  
            proposals asking the Legislature to impose more substantial  
            statutory constraints on other joint powers agreements,  
            further eroding a fundamental purpose of the Joint Exercise of  
            Powers Act, which is to provide for local control over  
            commonly-held local governmental powers without the need for  
            legislative involvement.


          5)Arguments in Support.  Supporters argue that this bill  
            prevents OCFA from restoring an unwieldy board structure that  
            made consensus and governance difficult.


          6)Arguments in Opposition.  Opponents argue that this bill sets  
            a precedent that erodes a purpose of the Joint Exercise of  
            Powers Act, which is to provide for local control over  
            commonly-held local governmental powers without the need for  
            legislative involvement.


          Analysis Prepared by:                                             
                          Angela Mapp / L. GOV. / (916) 319-3958  FN:   
          0003844








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