California Legislature—2015–16 Regular Session

Assembly BillNo. 1532


Introduced by Committee on Local Government

March 23, 2015


An act to amend Sections 56131.5, 56325, 56326, 56326.5, 56327, 56327.3, 56329, 56332, 56332.5, 56375.3, 56381.6, 56383, 56384, 56653, 57002, 57075, 57075.5, 57177.5, and 57179 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1532, as introduced, Committee on Local Government. Local government: omnibus.

(1)  Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, requires a local agency formation commission to notify specified state agencies having oversight or regulatory responsibility over, or a contractual relationship with, a local health care district when a proposal is made for any of specified changes of organization affecting that district.

This bill would update obsolete references to a “hospital” district and replace outdated references to the State Department of Health Services with references to the State Department of Public Health and the State Department of Health Care Services.

(2) The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 establishes in each county a local agency formation commission consisting of 7 members and provides for the selection of members of the commission and designation of alternate members according to specified procedures. Existing law establishes special procedures for the creation and selection of members of the commissions for Los Angeles County, Sacramento County, Santa Clara County, and counties in which there are no cities. Existing law provides for the selection of representatives of independent special districts on each commission by an independent special district selection committee. Existing law also provides for the apportionment of the annual operational costs for specified commissions among the classes of public agencies that select members on the commission.

This bill would recast these provisions and instead provide for the appointment of members and alternates to the commission of each county, including the above-described counties for which special procedures apply. The bill would also make various technical changes.

(3) Existing law authorizes the commission to waive protest proceedings and approve a change of organization or reorganization of a city, after notice and a hearing, of unincorporated islands. Existing law excludes from these provisions an unincorporated island within a city that is a gated community where services are currently provided by a community services district. Existing law also authorizes, at the option of either the city or the county, a separate property tax transfer agreement between a city and a county regarding an annexation of territory subject to these provisions without affecting an existing master tax sharing agreement between the city and the county.

This bill would make technical, nonsubstantive changes to these provisions.

(4) Under existing law, a commission may establish a schedule of fees and service charges for proceedings taken by the commission, including a fee for amending a sphere of influence.

This bill would expand the list of proceedings in that provision to include updating a sphere of influence.

(5) Existing law requires the commission to appoint legal counsel. If the commission’s legal counsel is subject to a conflict of interest on an issue before the commission, existing law requires the commission to appoint alternate staff to assist it. Existing law defines, for the purposes of provisions relating to commission officers and staff, the term “conflict of interest”.

This bill would expand the definition of “conflict of interest” with respect to the commission’s legal counsel to include matters covered by specified rules promulgated by the State Bar of California pertaining to representation of adverse interests.

(6) Existing law establishes procedures for commission proceedings for a change of organization or reorganization, as defined. Existing law requires that an applicant seeking a change of organization or reorganization, among other things, submit a plan for providing services within the affected territory. The plan must include specified information, including an enumeration and description of the services to be extended to the affected territory and indication of when those services can feasibly be extended to the affected territory.

This bill would provide that the plan may alternatively specify services currently provided in the affected territory. The bill would also require only that the plan indicate when services can be feasibly extended to the affected territory if new services are proposed.

(7) Existing law generally requires the commission to conduct a hearing for a change of organization or reorganization, as specified. However, the commission may, without a hearing, approve a change of organization that consists of an annexation or a detachment, or a reorganization that consists solely of annexations or detachments, or both, or the formation of a county service area that, for which the commission is authorized to waive protest proceedings if certain things have occurred.

This bill would additionally authorize the commission to approve, without a hearing, a proposal for an annexation, a detachment, or a reorganization consisting solely of annexations or detachments, or both, or formation of a county service area for which the commission is authorized to make determinations without a hearing and to waive protest proceedings, if the affected territory is uninhabited and certain conditions are met.

(8) Under existing law, in cases involving specified kinds of change of organization or reorganization the commission must, within 30 days after a hearing, make findings regarding the value of written protests filed and not withdrawn and take a specified action. If a majority protest exists, as specified, the commission must terminate proceedings. If written protests have been filed and not withdrawn by either between 25% and 50% of the registered voters in the affected territory or 25% of the number of owners of land who also own at least 25% of the assessed value of land within the affected territory, the commission must order the organization or change of organization subject to confirmation by the registered voters of the affected territory. If written protests have been filed and not withdrawn by less than 25% of the registered voters in the affected territory or less than 25% of the number of owners of land owning less than 25% of the assessed value of land within the affected territory, the commission must order the change of organization or reorganization.

This bill would recast these provisions to specify that the commission may order the change of organization or reorganization without an election only if there is neither a majority protest nor written protests filed and not withdrawn by between 25% and 50% of the registered voters in the affected territory or 25% of the number of owners of land who also own at least 25% of the assessed value of land within the affected territory.

(9) Under existing law, notwithstanding the above-described procedures for protest, in cases where a city with more than 100,000 people proposes to annex inhabited territory located in a county with a population of over 400,000, the commission must, within 30 days after a hearing, make findings regarding the value of written protests filed and not withdrawn and take specified action. If written protests have been filed and not withdrawn by 50% or more of the registered voters within the affected territory, the commission must terminate proceedings. If written protests have been filed and not withdrawn by either 15% or more of the registered voters in the affected territory or 15% or more of the number of owners of land who also own at least 15% of the assessed value of land within the affected territory, the commission must order the territory annexed subject to confirmation by the voters within the affected territory on the question of whether to be annexed to the city. The commission must request the city council to call a special election for this purpose. If written protests have been filed and not withdrawn by less than 15% of the registered voters in the affected territory and less than 15% of the owners of land who also own less than 15% of the assessed value of land within the affected territory, the commission must order the territory annexed without an election.

This bill would recast these provisions to specify that the commission may order the annexation without an election only if there are neither written protests filed and not withdrawn by 50% of more of the registered voters within the affected territory nor written protests filed and not withdrawn by 15% or more of the registered voters in the affected territory or 15% of the number of owners of land who also own at least 15% of the assessed value of land within the affected territory. The bill would also specify that the confirmation under these provisions is subject to a special election by the registered voters residing within the affected territory.

(10) Existing law requires the commission, in the case of elections on an order of consolidation of cities or districts, to issue a certificate of completion confirming the order of consolidation, or a certification of completion terminating proceedings, as specified.

This bill would instead require the commission to issue either a certification of completion or a certification of termination, as specified.

(11) Existing law requires the commission to execute a certificate of termination of proceedings if the majority of the votes cast by members of the commission are against the change in organization or reorganization.

This bill would instead require the commission to execute a certificate of termination of proceedings if the votes in favor of the change in organization or reorganization do not constitute a majority.

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

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

P5    1

SECTION 1.  

Section 56131.5 of the Government Code is
2amended to read:

3

56131.5.  

begin insert(a)end insertbegin insertend insertUpon the filing of an application for the formation
4of, annexation to, consolidation of, or dissolution of a localbegin delete hospitalend delete
5begin insert health careend insert district created pursuant to Division 23 (commencing
6with Section 32000) of the Health and Safety Code or of an
7application for a reorganization including any of those changes of
8organization or the initiation by the commission of any of those
9changes of organization or any reorganization including any of
10those changes of organization, the commission shall notify all state
11agencies that have oversight or regulatory responsibility over, or
12a contractual relationship with, the localbegin delete hospitalend deletebegin insert health careend insert district
13that is the subject of the proposed change of organization or
14reorganization, of its receipt of the application or the initiation by
15the commission of the proposed change of organization or
16reorganization and the proposal, including, but not limited to, the
17following:

begin delete

18(a)

end delete

19begin insert(1)end insert The State Department of Healthbegin insert Careend insert Services, including,
20but not limited to,begin delete Licensing and Certification andend delete the Medi-Cal
21Division.

begin delete

22(b)

end delete

P6    1begin insert(2)end insert The Office of Statewide Health Planning and Development,
2including, but not limited to, the Cal-Mortgage Loan Insurance
3Division.

begin delete

4(c)

end delete

5begin insert(3)end insert The California Health Facilities Financing Authority.

begin delete

6(d)

end delete

7begin insert(4)end insert Thebegin delete California Medical Assistance Commissionend deletebegin insert State
8Department of Public Health, including, but not limited to, the
9Licensing and Certification Divisionend insert
.

begin delete

10A

end delete

11begin insert(b)end insertbegin insertend insertbegin insertAend insert state agency shall have 60 days from the date of receipt
12of notification by the commission to comment on the proposal.
13The commission shall consider all comments received from any
14state agency in making its decision.

15

SEC. 2.  

Section 56325 of the Government Code is amended
16to read:

17

56325.  

There is hereby continued in existence in each county
18a local agency formation commission. Except as otherwise
19provided in this chapter, the commission shall consist of members
20begin delete selectedend deletebegin insert appointedend insert as follows:

21(a) Two appointed by the board of supervisors from their own
22membership. The board of supervisors shall appoint a third
23supervisor who shall be an alternate member of the commission.
24The alternate member may serve and vote in place of any
25supervisor on the commission who is absent or who disqualifies
26himself or herself from participating in a meeting of the
27commission.

28If the office of a regular county member becomes vacant, the
29alternate member may serve and vote in place of the former regular
30county member until the appointment and qualification of a regular
31county member to fill the vacancy.

32(b) Twobegin delete selectedend deletebegin insert appointedend insert by the cities in the county, each of
33whom shall be a mayor or council member, appointed by the city
34selection committee. The city selection committee shall also
35begin delete designateend deletebegin insert appointend insert one alternate member who shallbegin insert also be a mayor
36or council member and shallend insert
be appointed and serve pursuant to
37Section 56335.begin delete The alternate shall also be a mayor or council
38member.end delete
The city selection committee is encouraged tobegin delete selectend delete
39begin insert appointend insert members to fairly represent the diversity of the cities in
40the county, with respect to population and geography.

P7    1(c) Two presiding officers or members of legislative bodies of
2independent special districtsbegin delete selectedend deletebegin insert appointedend insert by the independent
3special district selection committee pursuant to Section 56332.
4The independent special district selection committee shall also
5begin delete designateend deletebegin insert appointend insert a presiding officer or member of the legislative
6body of an independent special district as anbegin delete alternativeend deletebegin insert alternateend insert
7 member who shall be appointed and serve pursuant to Section
856332. The independent special district selection committee is
9encouraged to makebegin delete selectionsend deletebegin insert appointmentsend insert that fairly represent
10the diversity of the independent special districts in the county, with
11respect to population and geography.

12(d) One representing the general public appointed by the other
13members of the commission. The other members of the commission
14may alsobegin delete designateend deletebegin insert appointend insert one alternate member who shallbegin delete be
15appointed andend delete
serve pursuant to Section 56331.begin delete Selectionend delete
16begin insert Appointmentend insert of the public member and alternate public member
17shall be subject to the affirmative vote of at least one of the
18membersbegin delete selectedend deletebegin insert appointedend insert by each of the other appointing
19authorities. Whenever a vacancy occurs in the public member or
20alternate public member position, the commission shall cause a
21notice of vacancy to be posted as provided in Section 56158. A
22copy of this notice shall be sent to the clerk or secretary of the
23legislative body of each local agency within the county. Final
24appointment to fill the vacancy may not be made for at least 21
25days after the posting of the notice.

26

SEC. 3.  

Section 56326 of the Government Code is amended
27to read:

28

56326.  

In Los Angeles County, the commission shall consist
29of nine members,begin delete selectedend deletebegin insert appointedend insert as follows:

30(a) Two appointed by the board of supervisors from its own
31membership. The board of supervisors shall also appoint a third
32supervisor who shall be an alternate member of the commission.
33The alternate member may serve and vote in place of any
34supervisor on the commission who is absent or who disqualifies
35himself or herself from participating in a meeting of the
36commission.

37If the office of the regular county member becomes vacant, the
38alternate member may serve and vote in place of the former regular
39county member until the appointment and qualification of a regular
40county member to fill the vacancy.

P8    1(b) One appointed by the board of supervisors, who shall not
2be a member of the board of supervisors but who shall be a resident
3of the San Fernando Valley Statistical Area, as defined in
4subdivision (c) of Section 11093. The board of supervisors shall
5also appoint an alternate member who shall not be a member of
6the board of supervisors but who is a resident of the San Fernando
7Valley Statistical Area. The alternate member may serve and vote
8in place of the member appointed pursuant to this subdivision if
9that member is absent or disqualifies himself or herself from
10participating in a meeting of the commission.

11If the office of the regular member becomes vacant, the alternate
12member may serve and vote in place of the former regular member
13until the appointment and qualification of a regular member to fill
14the vacancy.

15(c) Twobegin delete selectedend deletebegin insert appointedend insert by the cities in the county, each of
16whom shall be a mayor or council member, appointed by the city
17selection committee. The city selection committee shall also
18begin delete designateend deletebegin insert appointend insert one alternate member who shallbegin insert also be a mayor
19or council member and shallend insert
be appointed and serve pursuant to
20Section 56335.begin delete The alternate shall also be a mayor or council
21member.end delete
The city selection committee is encouraged tobegin delete selectend delete
22begin insert appointend insert members to fairly represent the diversity of the cities in
23the county, with respect to population and geography.

24(d) Onebegin delete selected byend deletebegin insert appointed by the presiding officer of the
25legislative body ofend insert
a city in the county having a population in
26excess of 30 percent of the total population of the county who is
27a member of the legislative body of thebegin delete city, appointed by the
28presiding officer of the legislative body.end delete
begin insert city.end insert The presiding officer
29of the legislative body shall alsobegin delete designateend deletebegin insert appointend insert an alternate
30member who is a member of the legislative body. The alternate
31member may serve and vote in place of the member appointed
32pursuant to this subdivision if the member is absent or disqualifies
33himself or herself from participating in a meeting of the
34commission.

35If the office of the regular member becomes vacant, the alternate
36member may serve and vote in place of the former regular member
37until the appointment and qualification of a regular member to fill
38the vacancy.

39(e) Two presiding officers or members of legislative bodies of
40independent special districtsbegin delete selected by anend deletebegin insert appointed by theend insert
P9    1 independent special district selection committee pursuant to Section
256332. The independent special district selection committee shall
3alsobegin delete designateend deletebegin insert appointend insert one alternate member who shall be a
4presiding officer or member of the legislative body of an
5independent special district and shall be appointed and serve
6pursuant to Section 56332. The independent special district
7selection committee is encouraged tobegin delete selectend deletebegin insert appointend insert members to
8fairly represent the diversity of the independent special districts
9in the county, with respect to population and geography.

10(f) One representing the general public appointed by the other
11members of the commission.begin insert The other members of the commission
12may also appoint one alternate member who shall serve pursuant
13to Section 56331.end insert

14

SEC. 4.  

Section 56326.5 of the Government Code is amended
15to read:

16

56326.5.  

In Sacramento County, the commission shall consist
17of seven members,begin delete selectedend deletebegin insert appointedend insert as follows:

18(a) Two appointed by the board of supervisors from their own
19membership. The board of supervisors shall appoint a third
20supervisor who shall serve as an alternate member of the
21commission. The alternate member may serve and vote in place
22of any supervisor on the commission who is absent or who
23disqualifies himself or herself from participating in a meeting of
24the commission. If the office of the regular county member
25becomes vacant, the alternate member may serve and vote in place
26of the former regular county member until the appointment and
27qualification of a regular county member to fill the vacancy.

28(b) Onebegin delete selectedend deletebegin insert appointedend insert by the City of Sacramento who is a
29member of the city council, appointed by the mayor and confirmed
30by the city council. The mayor shall also appoint, subject to
31confirmation by the council, an alternate member who is a member
32of the city council. The alternate member may serve and vote in
33place of the regular city member if the city member is absent or
34disqualifies himself or herself from participating in a meeting of
35the commission. If the office of the regular city member becomes
36vacant, the alternate member may serve and vote in place of the
37former regular city member until the appointment and qualification
38of a regular city member to fill the vacancy.

39(c) Onebegin delete selectedend deletebegin insert appointedend insert by the cities in the county, who is a
40mayor or council member appointed by the city selection
P10   1committee. The city selection committee shall alsobegin delete designateend delete
2begin insert appointend insert one alternate member who shallbegin insert also be a mayor or council
3member and shallend insert
be appointed and serve pursuant to Section
456335.begin delete The alternate shall also be a mayor or council member.end delete
5 The city selection committee is encouraged tobegin delete selectend deletebegin insert appointend insert
6 members to fairly represent the diversity of the cities in the county,
7with respect to population and geography.

8(d) Two presiding officers or members of legislative bodies of
9independent special districtsbegin delete selected by anend deletebegin insert appointed by theend insert
10 independent special district selection committee pursuant to Section
1156332. The independent special district selection committee shall
12alsobegin delete designateend deletebegin insert appointend insert one alternate member who shall be a
13presiding officer or member of the legislative body of an
14independent special district and shall be appointed and serve
15pursuant to Section 56332. The independent special district
16selection committee is encouraged tobegin delete selectend deletebegin insert appointend insert members to
17fairly represent the diversity of the independent special districts
18in the county, with respect to population and geography.

19(e) One representing the general public, appointed by the other
20six members of the commission. The commission may also appoint
21an alternate public member who may serve and vote in the place
22of the regular public member if the regular public member is absent
23or disqualifies himself or herself from participating in a meeting
24of the commission. If the office of the regular public member
25becomes vacant, the alternate member may serve and vote in place
26of the former regular public member until the appointment and
27qualification of a regular public member to fill the vacancy.

28

SEC. 5.  

Section 56327 of the Government Code is amended
29to read:

30

56327.  

In Santa Clara County, the commission shall consist
31of five members,begin delete selectedend deletebegin insert appointedend insert as follows:

32(a) Two appointed by the board of supervisors from their own
33membership. The board of supervisors shall appoint a third
34supervisor who shall serve as an alternate member of the
35commission. The alternate member may serve and vote in place
36of any supervisor on the commission who is absent or who
37disqualifies himself or herself from participating in a meeting of
38the commission. If the office of the regular county member
39becomes vacant, the alternate member may serve and vote in place
P11   1of the former regular county member until the appointment and
2qualification of a regular county member to fill the vacancy.

3(b) Onebegin delete selectedend deletebegin insert appointedend insert by the city in the county having the
4largest population, who is a member of the legislative body of the
5city, appointed by the city council. The city council shall also
6appoint an alternate member who is a member of the legislative
7body of the city. The alternate member may serve and vote in place
8of the regular city member if the city member is absent or
9disqualifies himself or herself from participating in a meeting of
10the commission. If the office of the regular city member becomes
11vacant, the alternate member may serve and vote in place of the
12former regular city member until the appointment and qualification
13of a regular city member to fill the vacancy.

14(c) Onebegin delete selectedend deletebegin insert appointedend insert by the cities in the county, who is a
15mayor or council member appointed by the city selection
16committee. The city selection committee shall alsobegin delete designateend delete
17begin insert appointend insert one alternate member who shallbegin insert also be a mayor or council
18member and shallend insert
be appointed and serve pursuant to Section
1956335.begin delete The alternate shall also be a mayor or council member.end delete
20 The city selection committee is encouraged tobegin delete selectend deletebegin insert appointend insert
21 members to fairly represent the diversity of the cities in the county,
22with respect to population and geography.

23(d) One representing the general public, appointed by the other
24begin delete fourend deletebegin insert four, or, if the commission is enlarged pursuant to Section
2556327.3, the other six,end insert
members of the commission. This member
26shall not be a resident of a city which is already represented on
27the commission. The commission may also appoint an alternate
28public member, who shall not be a resident of a city represented
29on the commission, and who may serve and vote in the place of
30the regular public member if the regular public member is absent
31or disqualifies himself or herself from participating in a meeting
32of the commission. If the office of the regular public member
33becomes vacant, the alternate member may serve and vote in place
34of the former regular public member until the appointment and
35qualification of a regular public member to fill the vacancy.

36

SEC. 6.  

Section 56327.3 of the Government Code is amended
37to read:

38

56327.3.  

In Santa Clara County, the commission shall be
39enlarged by two members if, pursuant to the provisions of Chapter
P12   15 (commencing with Sectionbegin delete 56820),end deletebegin insert 56821),end insert the commission
2orders representation of special districts upon the commission.

3

SEC. 7.  

Section 56329 of the Government Code is amended
4to read:

5

56329.  

If there is no city in the county, the commission shall
6consist of five members,begin delete selectedend deletebegin insert appointedend insert as follows which may
7be further augmented pursuant to Sections 56332 and 56332.5:

8(a) Three appointed by the board of supervisors from their own
9membership. The board of supervisors shall appoint a fourth
10supervisor who is an alternate member of the commission. The
11alternate member may serve and vote in place of any supervisor
12on the commission who is absent or who disqualifies himself or
13herself from participating in a meeting of the commission.

14If the office of a regular county member becomes vacant, the
15alternate member may serve and vote in place of the former regular
16county member until the appointment and qualification of a regular
17county member to fill the vacancy.

18(b) Two representing the general public appointed by the other
19three members of the commission.begin delete Selectionend deletebegin insert Appointmentend insert of the
20public member and alternate public member shall be subject to the
21affirmative vote of at least one of the members selected by each
22of the other appointing authorities.

23

SEC. 8.  

Section 56332 of the Government Code is amended
24to read:

25

56332.  

(a) The independent special district selection committee
26shall consist of the presiding officer of the legislative body of each
27independent special district. However, if the presiding officer of
28an independent special district is unable to participate in a meeting
29or election of the independent special district selection committee,
30the legislative body of the district may appoint one of its members
31as an alternate to participate in the selection committee in the
32presiding officer’s place. Those districts shall include districts
33located wholly within the county and those containing territory
34within the county representing 50 percent or more of the assessed
35value of taxable property of the district, as shown on the last
36equalized county assessment roll. Each member of the committee
37shall be entitled to one vote for each independent special district
38of which he or she is the presiding officer or his or her alternate
39as designated by the governing body. Members representing a
40majority of the eligible districts shall constitute a quorum.

P13   1(b) The executive officer shall call and give written notice of
2all meetings of the members of the selection committee. A meeting
3shall be called and held under one of the following circumstances:

4(1) Whenever the executive officer anticipates that a vacancy
5will occur within the next 90 days among the members or alternate
6member representing independent special districts on the
7commission.

8(2) Whenever a vacancy exists among the members or alternate
9member representing independent special districts upon the
10commission.

11(3) Upon receipt of a written request by one or more members
12of the selection committee representing districts having 10 percent
13or more of the assessed value of taxable property within the county,
14as shown on the last equalized county assessment roll.

15(c) The selection committee shall appoint two regular members
16and one alternate member to the commission. The members so
17appointed shall be elected or appointed members of the legislative
18body of an independent special district residing within the county
19but shall not be members of the legislative body of a city or county.
20If one of the regular district members is absent from a commission
21meeting or disqualifies himself or herself from participating in a
22meeting, the alternate district member may serve and vote in place
23of the regular district member for that meeting. Service on the
24commission by a regular district member shall not disqualify, or
25be cause for disqualification of, the member from acting on
26proposals affecting the special district on whose legislative body
27the member serves. The special district selection committee may,
28at the time it appoints a member or alternate, provide that the
29member or alternate is disqualified from voting on proposals
30affecting the district on whose legislative body the member serves.

31(d) If the office of a regular district member becomes vacant,
32the alternate member may serve and vote in place of the former
33regular district member until the appointment and qualification of
34a regular district member to fill the vacancy.

35(e) A majority of the independent special district selection
36committee may determine to conduct the committee’s business by
37mail, including holding all elections by mailed ballot, pursuant to
38subdivision (f).

39(f) If the independent special district selection committee has
40determined to conduct the committee’s business by mail or if the
P14   1executive officer determines that a meeting of the special district
2selection committee, for the purpose of begin deleteselectingend deletebegin insert appointingend insert the
3special district members or filling vacancies, is not feasible, the
4executive officer shall conduct the business of the committee by
5mail. Elections by mail shall be conducted as provided in this
6subdivision.

7(1) The executive officer shall prepare and deliver a call for
8nominations to each eligible district. The presiding officer, or his
9or her alternate as designated by the governing body, may respond
10in writing by the date specified in the call for nominations, which
11date shall be at least 30 days from the date on which the executive
12officer mailed the call for nominations to the eligible district.

13(2) At the end of the nominating period, if only one candidate
14is nominated for a vacant seat, that candidate shall be deemed
15begin delete selected.end deletebegin insert appointed.end insert If two or more candidates are nominated, the
16executive officer shall prepare and deliver one ballot and voting
17instructions to each eligible district. The ballot shall include the
18names of all nominees and the office for which each was
19nominated. Each presiding officer, or his or her alternate as
20designated by the governing body, shall return the ballot to the
21executive officer by the date specified in the voting instructions,
22which date shall be at least 30 days from the date on which the
23executive officer mailed the ballot to the eligible district.

24(3) The call for nominations, ballot, and voting instructions shall
25be delivered by certified mail to each eligible district. As an
26alternative to the delivery by certified mail, the executive officer,
27with prior concurrence of the presiding officer or his or her
28alternate as designated by the governing body, may transmit
29materials by electronic mail.

30(4) If the executive officer has transmitted the call for
31nominations or ballot by electronic mail, the presiding officer, or
32his or her alternate as designated by the governing body, may
33respond to the executive officer by electronic mail.

34(5) Each returned nomination and ballot shall be signed by the
35presiding officer or his or her alternate as designated by the
36governing body of the eligible district.

37(6) For an election to be valid, at least a quorum of the special
38districts must submit valid ballots. The candidate receiving the
39most votes shall be elected, unless another procedure has been
40adopted by the selection committee. Any nomination and ballot
P15   1received by the executive officer after the date specified is invalid,
2provided, however, that if a quorum of ballots is not received by
3that date, the executive officer shall extend the date to submit
4ballots by 60 days and notify all districts of the extension. The
5executive officer shall announce the results of the election within
6seven days of the date specified.

7(7) All election materials shall be retained by the executive
8officer for a period of at least six months after the announcement
9of the election results.

10(g) For purposes of this section, “executive officer” means the
11executive officer or designee as authorized by the commission.

12

SEC. 9.  

Section 56332.5 of the Government Code is amended
13to read:

14

56332.5.  

If the commission does not have representation from
15independent special districts on January 1, 2001, the commission
16shall initiate proceedings for representation of independent special
17districts upon the commission if requested by independent special
18districts pursuant to this section. If an independent special district
19adopts a resolution proposing representation of independent special
20districts upon the commission, it shall immediately forward a copy
21of the resolution to the executive officer. Upon receipt of those
22resolutions from a majority of independent special districts within
23a county, adopted by the districts within one year from the date
24that the first resolution was adopted, the commission, at its next
25regular meeting, shall adopt a resolution of intention. The
26resolution of intention shall state whether the proceedings are
27initiated by the commission or by an independent special district
28or districts, in which case, the names of those districts shall be set
29forth. The commission shall order the executive officer to call and
30give notice of a meeting of the independent special district selection
31committee to be held within 15 days after the adoption of the
32resolution in order tobegin delete selectend deletebegin insert appointend insert independent special district
33representation on the commission pursuant to Section 56332.

34

SEC. 10.  

Section 56375.3 of the Government Code is amended
35to read:

36

56375.3.  

(a) In addition to those powers enumerated in Section
3756375, a commission shall approve, after notice and hearing, the
38change of organization or reorganization of a city, and waive
39protest proceedings pursuant to Part 4 (commencing with Section
4057000) entirely, if all of the following are true:

P16   1(1) The change of organization or reorganization is initiated on
2or after January 1, 2000.

3(2) The change of organization or reorganization is proposed
4by resolution adopted by the affected city.

5(3) The commission finds that the territory contained in the
6change of organization or reorganization proposal meets all of the
7requirements set forth in subdivision (b).

8(b) Subdivision (a) applies to territory that meets all of the
9following requirements:

10(1) It does not exceed 150 acres in area, and that area constitutes
11the entire island.

12(2) The territory constitutes an entire unincorporated island
13located within the limits of a city, or constitutes a reorganization
14containing a number of individual unincorporated islands.

15(3) It is surrounded in either of the following ways:

16(A) Surrounded, or substantially surrounded, by the city to which
17annexation is proposed or by the city and a county boundary or
18the Pacific Ocean.

19(B) Surrounded by the city to which annexation is proposed and
20adjacent cities.

begin delete

21(C) This subdivision shall not be construed to apply to any
22unincorporated island within a city that is a gated community where
23services are currently provided by a community services district.

24(D) Notwithstanding any other provision of law, at the option
25of either the city or the county, a separate property tax transfer
26agreement may be agreed to between a city and a county pursuant
27to Section 99 of the Revenue and Taxation Code regarding an
28annexation subject to this subdivision without affecting any existing
29master tax sharing agreement between the city and county.

end delete

30(4) It is substantially developed or developing. The finding
31required by this paragraph shall be based upon one or more factors,
32including, but not limited to, any of the following factors:

33(A) The availability of public utility services.

34(B) The presence of public improvements.

35(C) The presence of physical improvements upon the parcel or
36parcels within the area.

37(5) It is not prime agricultural land, as defined by Section 56064.

38(6) It will benefit from the change of organization or
39reorganization or is receiving benefits from the annexing city.

begin insert

P17   1(7) This subdivision does not apply to any unincorporated island
2within a city that is a gated community where services are currently
3provided by a community services district.

end insert
begin insert

4(8) Notwithstanding any other law, at the option of either the
5city or the county, a separate property tax transfer agreement may
6be agreed to between a city and a county pursuant to Section 99
7of the Revenue and Taxation Code regarding an annexation subject
8to this subdivision without affecting any existing master tax sharing
9agreement between the city and county.

end insert

10(c) Notwithstanding any other provision of this subdivision, this
11subdivision shall not apply to all or any part of that portion of the
12development project area referenced in subdivision (e) of Section
1333492.41 of the Health and Safety Code that as of January 1, 2000,
14meets all of the following requirements:

15(1) Is unincorporated territory.

16(2) Contains at least 100 acres.

17(3) Is surrounded or substantially surrounded by incorporated
18territory.

19(4) Contains at least 100 acres zoned for commercial or
20industrial uses or is designated on the applicable county general
21plan for commercial or industrial uses.

22(d) The Legislature finds and declares that the powers set forth
23in subdivision (a) for territory that meets all the specifications in
24subdivision (b) are consistent with the intent of promoting orderly
25growth and development pursuant to Section 56001 and facilitate
26the annexation of disadvantaged unincorporated communities, as
27defined in Section 56033.5.

28

SEC. 11.  

Section 56381.6 of the Government Code is amended
29to read:

30

56381.6.  

(a) Notwithstanding the provisions of Section 56381,
31for counties whose membership on the commission is established
32pursuant to Sections 56326, 56326.5, 56327, or 56328, the
33commission’s annual operational costs shall be apportioned among
34the classes of public agencies thatbegin delete selectend deletebegin insert appointend insert membersbegin delete onend deletebegin insert toend insert
35 the commission in proportion to the number of membersbegin delete selectedend delete
36begin insert appointedend insert by each class. The classes of public agencies that may
37be represented on the commission are the county, the cities, and
38independent special districts. Any alternative cost apportionment
39procedure may be adopted by the commission, subject to a majority
40affirmative vote of the commission that includes the affirmative
P18   1vote of at least one of the membersbegin delete selectedend deletebegin insert appointedend insert by the
2county, one of the membersbegin delete selectedend deletebegin insert appointedend insert by the cities, and
3one of the membersbegin delete selectedend deletebegin insert appointedend insert by districts, if special
4districts are represented on the commission.

5(b) Allocation of costs among individual cities and independent
6special districts and remittance of payments shall be in accordance
7with the procedures of Section 56381. Notwithstanding Section
856381, any city that has permanent membership on the commission
9pursuant to Sections 56326, 56326.5, 56327, or 56328 shall be
10apportioned the same percentage of the commission’s annual
11operational costs as its permanent member bears to the total
12membership of the commission, excluding any public members
13selected by all the members. The balance of the cities’ portion of
14the commission’s annual operational costs shall be apportioned to
15the remaining cities in the county in accordance with the procedures
16of Section 56381.

17

SEC. 12.  

Section 56383 of the Government Code is amended
18to read:

19

56383.  

(a) The commission may establish a schedule of fees
20and a schedule of service charges for the proceedings taken
21pursuant to this division, including, but not limited to, all of the
22following:

23(1) Filing and processing applications filed with the commission.

24(2) Proceedings undertaken by the commission and any
25reorganization committee.

26(3) Amendingbegin insert or updatingend insert a sphere of influence.

27(4) Reconsidering a resolution making determinations.

28(b) The fees shall not exceed the estimated reasonable cost of
29providing the service for which the fee is charged and shall be
30imposed pursuant to Section 66016. The service charges shall not
31exceed the cost of providing the service for which the service
32charge is charged and shall be imposed pursuant to Section 66016.

33(c) The commission may require that an applicant deposit some
34or all of the required amount that will be owed with the executive
35officer before any further action is taken. The deposit shall be
36made within the time period specified by the commission. No
37application shall be deemed filed until the applicant deposits the
38required amount with the executive officer. The executive officer
39shall provide the applicant with an accounting of all costs charged
40against the deposited amount. If the costs are less than the deposited
P19   1amount, the executive officer shall refund the balance to the
2applicant after the executive officer verifies the completion of all
3proceedings. If the costs exceed the deposited amount, the applicant
4shall pay the difference prior to the completion of all proceedings.

5(d) The commission may reduce or waive a fee, service charge,
6or deposit if it finds that payment would be detrimental to the
7public interest. The reduction or waiver of any fee, service charge,
8or deposit is limited to the costs incurred by the commission in
9the proceedings of an application.

10(e) Any mandatory time limits for commission action may be
11deferred until the applicant pays the required fee, service charge,
12or deposit.

13(f) The signatures on a petition submitted to the commission by
14registered voters shall be verified by the elections official of the
15county and the costs of verification shall be provided for in the
16same manner and by the same agencies which bear the costs of
17verifying signatures for an initiative petition in the same county.

18(g) For incorporation proceedings that have been initiated by
19the filing of a sufficient number of voter signatures on petitions
20that have been verified by the county registrar of voters, the
21commission may, upon the receipt of a certification by the
22proponents that they are unable to raise sufficient funds to
23reimburse fees, service charges, or deposits for the proceedings,
24take no action on the proposal and request a loan from the General
25Fund of an amount sufficient to cover those expenses subject to
26availability of an appropriation for those purposes and in
27accordance with any provisions of the appropriation. Repayment
28of the loan shall be made a condition of approval of the
29incorporation, if successful, and shall become an obligation of the
30newly formed city. Repayment shall be made within two years of
31the effective date of incorporation. If the proposal is denied by the
32commission or defeated at an election, the loan shall be forgiven.

33

SEC. 13.  

Section 56384 of the Government Code is amended
34to read:

35

56384.  

(a) The commission shall appoint an executive officer
36who shall conduct and perform the day-to-day business of the
37commission. If the executive officer is subject to a conflict of
38interest on a matter before the commission, the commission shall
39appoint an alternate executive officer. The commission may recover
40its costs by charging fees pursuant to Section 56383.

P20   1(b) The commission shall appoint legal counsel to advise it. If
2the commission’s counsel is subject to a conflict of interest on a
3matter before the commission, the commission shall appoint
4alternate legal counsel to advise it. The commission may recover
5its costs by charging fees pursuant to Section 56383.

6(c) The commission may appoint staff as it deems appropriate.
7If staff for the commission is subject to a conflict of interest on a
8matter before the commission, the commission shall appoint
9alternate staff to assist it. The commission may recover its costs
10by charging fees pursuant to Section 56383.

11(d) begin insert(1)end insertbegin insertend insert For purposes of this section, the term “conflict of
12interest” shall be defined as it is for the purpose of the Political
13Reform Act of 1974begin insert (Title 9(commences with Section 81000))end insert and
14shall also include matters proscribed by Article 4 (commencing
15with Section 1090) of Chapter 1 of Division 4 of Title 1.

begin insert

16(2) For the purposes of subdivision (b), the term “conflict of
17interest” shall also include matters addressed by Rule 3-310 of
18the Rules of Professional Conduct promulgated by the State Bar
19of California, pertaining to representation of adverse interests.

end insert
20

SEC. 14.  

Section 56653 of the Government Code, as amended
21by Section 2 of Chapter 784 of the Statutes of 2014, is amended
22to read:

23

56653.  

(a) If a proposal for a change of organization or
24reorganization is submitted pursuant to this part, the applicant shall
25submit a plan for providing services within the affected territory.

26(b) The plan for providing services shall include all of the
27following information and any additional information required by
28the commission or the executive officer:

29(1) An enumeration and description of the servicesbegin insert currently
30provided orend insert
to be extended to the affected territory.

31(2) The level and range of those services.

32(3) An indication of when those services can feasibly be
33extended to the affectedbegin delete territory.end deletebegin insert territory, if new services are
34proposed.end insert

35(4) An indication of any improvement or upgrading of structures,
36roads, sewer or water facilities, or other conditions the local agency
37would impose or require within the affected territory if the change
38of organization or reorganization is completed.

39(5) Information with respect to how those services will be
40financed.

P21   1(c) (1) In the case of a change of organization or reorganization
2initiated by a local agency that includes a disadvantaged,
3unincorporated community as defined in Section 56033.5, a local
4agency may include in its resolution of application for change of
5organization or reorganization an annexation development plan
6adopted pursuant to Section 99.3 of the Revenue and Taxation
7Code to improve or upgrade structures, roads, sewer or water
8facilities, or other infrastructure to serve the disadvantaged,
9unincorporated community through the formation of a special
10district or reorganization of one or more existing special districts
11with the consent of each special district’s governing body.

12(2) The annexation development plan submitted pursuant to this
13subdivision shall include information that demonstrates that the
14formation or reorganization of the special district will provide all
15of the following:

16(A) The necessary financial resources to improve or upgrade
17structures, roads, sewer, or water facilities or other infrastructure.
18The annexation development plan shall also clarify the local entity
19that shall be responsible for the delivery and maintenance of the
20services identified in the application.

21(B) An estimated timeframe for constructing and delivering the
22services identified in the application.

23(C) The governance, oversight, and long-term maintenance of
24the services identified in the application after the initial costs are
25recouped and the tax increment financing terminates.

26(3) If a local agency includes an annexation development plan
27pursuant to this subdivision, a local agency formation commission
28may approve the proposal for a change of organization or
29reorganization to include the formation of a special district or
30reorganization of a special district with the special district’s
31consent, including, but not limited to, a community services district,
32municipal water district, or sanitary district, to provide financing
33to improve or upgrade structures, roads, sewer or water facilities,
34or other infrastructure to serve the disadvantaged, unincorporated
35community, in conformity with the requirements of the principal
36act of the district proposed to be formed and all required formation
37proceedings.

38(4) Pursuant to Section 56881, the commission shall include in
39its resolution making determinations a description of the annexation
40development plan, including, but not limited to, an explanation of
P22   1the proposed financing mechanism adopted pursuant to Section
299.3 of the Revenue and Taxation Code, including, but not limited
3to, any planned debt issuance associated with that annexation
4development plan.

5(d) This section shall not preclude a local agency formation
6commission from considering any other options or exercising its
7powers under Section 56375.

8(e) This section shall remain in effect only until January 1, 2025,
9and as of that date is repealed.

10

SEC. 15.  

Section 56653 of the Government Code, as added by
11Section 3 of Chapter 784 of the Statutes of 2014, is amended to
12read:

13

56653.  

(a) If a proposal for a change of organization or
14reorganization is submitted pursuant to this part, the applicant shall
15submit a plan for providing services within the affected territory.

16(b) The plan for providing services shall include all of the
17following information and any additional information required by
18the commission or the executive officer:

19(1) An enumeration and description of the servicesbegin insert currently
20provided orend insert
to be extended to the affected territory.

21(2) The level and range of those services.

22(3) An indication of when those services can feasibly be
23extended to the affectedbegin delete territory.end deletebegin insert territory, if new services are
24proposed.end insert

25(4) An indication of any improvement or upgrading of structures,
26roads, sewer or water facilities, or other conditions the local agency
27would impose or require within the affected territory if the change
28of organization or reorganization is completed.

29(5) Information with respect to how those services will be
30financed.

31(c) This section shall become operative on January 1, 2025.

32

SEC. 16.  

Section 57002 of the Government Code is amended
33to read:

34

57002.  

(a) Within 35 days following the adoption of the
35commission’s resolution making determinations, the executive
36officer of the commission shall set the proposal for hearing and
37give notice of that hearing by mailing, publication, and posting,
38as provided in Chapter 4 (commencing with Section 56150) of
39Part 1. The hearing shall not be held prior to the expiration of the
40reconsideration period specified in subdivision (b) of Section
P23   156895. The date of that hearing shall not be less than 21 days, or
2more than 60 days, after the date the notice is given.

3(b) Where the proceeding is for the establishment of a district
4as a subsidiary district of a city, upon the request of the affected
5district, the date of the hearing shall be at least 90 days, but no
6more than 135 days, from the date the notice is given.

7(c) If authorized by the commission pursuant to Sectionbegin insert 56662
8orend insert
56663, a change of organization or reorganization may be
9approved without notice, hearing, and election.

10

SEC. 17.  

Section 57075 of the Government Code is amended
11to read:

12

57075.  

In the case of registered voter districts or cities, where
13a change of organization or reorganization consists solely of
14annexations, detachments, the exercise of new or different functions
15or class of services or the divestiture of the power to provide
16particular functions or class of services within all or part of the
17jurisdictional boundaries of a special district, or any combination
18of those proposals, the commission, not more than 30 days after
19the conclusion of the hearing, shall make a finding regarding the
20value of written protests filed and not withdrawn, and take one of
21the following actions, except as provided in subdivision (b) of
22Section 57002:

23(a) In the case of inhabited territory, take one of the following
24actions:

25(1) Terminate proceedings if a majority protest exists in
26accordance with Section 57078.

27(2) Order the change of organization or reorganization subject
28to confirmation by the registered voters residing within the affected
29territory if written protests have been filed and not withdrawn by
30either of the following:

31(A) At least 25 percent, but less than 50 percent, of the registered
32voters residing in the affected territory.

33(B) At least 25 percent of the number of owners of land who
34also own at least 25 percent of the assessed value of land within
35the affected territory.

36(3) Order the change of organization or reorganization without
37an election ifbegin delete written protests have been filed and not withdrawn
38by less than 25 percent of the registered voters or less than 25
39percent of the number of owners of land owning less than 25
P24   1percent of the assessed value of land within the affected territory.end delete

2begin insert paragraphs (1) and (2) of this subdivision do not apply.end insert

3(b) In the case of uninhabited territory, take either of the
4following actions:

5(1) Terminate proceedings if a majority protest exists in
6accordance with Section 57078.

7(2) Order the change of organization or reorganization if written
8protests have been filed and not withdrawn by owners of land who
9own less than 50 percent of the total assessed value of land within
10the affected territory.

11

SEC. 18.  

Section 57075.5 of the Government Code is amended
12to read:

13

57075.5.  

Notwithstanding Section 57075, if territory proposed
14to be annexed to a city with more than 100,000 residents is
15inhabited and is located in a county with a population of over
164,000,000, the commission, not more than 30 days after conclusion
17of the hearing, shall make a finding regarding the value of written
18protests filed and not withdrawn and shall take one of the following
19actions:

20(a) Terminate proceedings if written protests have been filed
21and not withdrawn by 50 percent or more of the registered voters
22begin insert residingend insert within the affected territory.

23(b) Order thebegin delete territory annexedend deletebegin insert change of organization or
24reorganizationend insert
subject tobegin delete theend delete confirmation by thebegin insert registeredend insert voters
25begin delete on the question,end deletebegin insert residing within the affected territory,end insert and request
26the city council to call a special election and submit to the voters
27residing within the affected territory the question of whether it
28shall be annexed to the city, if written protests have been filed and
29not withdrawn by eitherbegin delete 15 percent or more of the registered voters
30within the territory, or 15 percent or more of the number of owners
31of land who also own not less than 15 percent of the total assessed
32value of land within the territory.end delete
begin insert of the following:end insert

begin insert

33(1) At least 15 percent of the registered voters residing within
34the affected territory.

end insert
begin insert

35(2) At least 15 percent of the number of owners of land who
36also own not less than 15 percent of the total assessed value of
37land within the affected territory.

end insert

38(c) Order the territory annexed without an election if begin deletewritten
39protests have been filed and not withdrawn by less than 15 percent
40of the registered voters within the territory and less than 15 percent
P25   1of the owners of land who own less than 15 percent of the total
2assessed value of land within the territory.end delete
begin insert subdivisions (a) and
3(b) do not apply.end insert

4

SEC. 19.  

Section 57177.5 of the Government Code is amended
5to read:

6

57177.5.  

In the case of elections on an order of consolidation
7of cities or districts, the commission shall take one of the following
8actions:

9(a) Execute a certificate of completion confirming the order of
10consolidation if, within the territory of each city or district ordered
11to be consolidated, a majority of the votes cast on the question
12favored the consolidation.

13(b) Execute a certificate ofbegin delete completion terminatingend deletebegin insert termination
14ofend insert
proceedings if, in one of the cities or districts ordered to be
15 consolidated, the votes cast in favor of consolidation did not
16constitute a majority.

17

SEC. 20.  

Section 57179 of the Government Code is amended
18to read:

19

57179.  

begin deleteIf the majority of end deletebegin insertThe commission shall execute a
20certificate of termination of proceedings if end insert
the votes castbegin delete is againstend delete
21begin insert in favor ofend insert the change of organization orbegin delete reorganization, the
22commission shall execute a certificate of termination proceedings.end delete

23begin insert reorganization do not constitute a majority.end insert



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