BILL ANALYSIS Ó AB 1217 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1217 (Daly) As Amended August 2, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |47-25 |(May 26, 2015) |SENATE: |24-12 |(August 15, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 1217 Page 2 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 AB 1217 Page 3 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. AB 1217 Page 4 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 AB 1217 Page 5