BILL NUMBER: AB 1532 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 22, 2015
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 amended, 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district and replace outdated references to the State Department of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)
(6) 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)
(7) 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)
(8) 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)
(9) 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)
(10) 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:
SECTION 1. Section 56131.5 of the Government Code is amended to
read:
56131.5. (a) Upon the filing of an application for the formation
of, annexation to, consolidation of, or dissolution of a local health
care district created pursuant to Division 23 (commencing with
Section 32000) of the Health and Safety Code or of an application for
a reorganization including any of those changes of organization or
the initiation by the commission of any of those changes of
organization or any reorganization including any of those changes of
organization, the commission shall notify all state agencies that
have oversight or regulatory responsibility over, or a contractual
relationship with, the local health care district that is the subject
of the proposed change of organization or reorganization, of its
receipt of the application or the initiation by the commission of the
proposed change of organization or reorganization and the proposal,
including, but not limited to, the following:
(1) The State Department of Health Care Services, including, but
not limited to, the Medi-Cal Division.
(2) The Office of Statewide Health Planning and Development,
including, but not limited to, the Cal-Mortgage Loan Insurance
Division.
(3) The California Health Facilities Financing Authority.
(4) The State Department of Public Health, including, but not
limited to, the Licensing and Certification Division.
(b) A state agency shall have 60 days from the date of receipt of
notification by the commission to comment on the proposal. The
commission shall consider all comments received from any state agency
in making its decision.
SEC. 2. Section 56325 of the Government Code is amended to read:
56325. There is hereby continued in existence in each county a
local agency formation commission. Except as otherwise provided in
this chapter, the commission shall consist of members appointed as
follows:
(a) Two appointed by the board of supervisors from their own
membership. The board of supervisors shall appoint a third supervisor
who shall be an alternate member of the commission. The alternate
member may serve and vote in place of any supervisor on the
commission who is absent or who disqualifies himself or herself from
participating in a meeting of the commission.
If the office of a regular county member becomes vacant, the
alternate member may serve and vote in place of the former regular
county member until the appointment and qualification of a regular
county member to fill the vacancy.
(b) Two appointed by the cities in the county, each of whom shall
be a mayor or council member, appointed by the city selection
committee. The city selection committee shall also appoint one
alternate member who shall also be a mayor or council member and
shall be appointed and serve pursuant to Section 56335. The city
selection committee is encouraged to appoint members to fairly
represent the diversity of the cities in the county, with respect to
population and geography.
(c) Two presiding officers or members of legislative bodies of
independent special districts appointed by the independent special
district selection committee pursuant to Section 56332. The
independent special district selection committee shall also appoint a
presiding officer or member of the legislative body of an
independent special district as an alternate member who shall be
appointed and serve pursuant to Section 56332. The independent
special district selection committee is encouraged to make
appointments that fairly represent the diversity of the independent
special districts in the county, with respect to population and
geography.
(d) One representing the general public appointed by the other
members of the commission. The other members of the commission may
also appoint one alternate member who shall serve pursuant to Section
56331. Appointment of the public member and alternate public member
shall be subject to the affirmative vote of at least one of the
members appointed by each of the other appointing authorities.
Whenever a vacancy occurs in the public member or alternate public
member position, the commission shall cause a notice of vacancy to be
posted as provided in Section 56158. A copy of this notice shall be
sent to the clerk or secretary of the legislative body of each local
agency within the county. Final appointment to fill the vacancy may
not be made for at least 21 days after the posting of the notice.
SEC. 3. Section 56326 of the Government Code is amended to read:
56326. In Los Angeles County, the commission shall consist of
nine members, appointed as follows:
(a) Two appointed by the board of supervisors from its own
membership. The board of supervisors shall also appoint a third
supervisor who shall be an alternate member of the commission. The
alternate member may serve and vote in place of any supervisor on the
commission who is absent or who disqualifies himself or herself from
participating in a meeting of the commission.
If the office of the regular county member becomes vacant, the
alternate member may serve and vote in place of the former regular
county member until the appointment and qualification of a regular
county member to fill the vacancy.
(b) One appointed by the board of supervisors, who shall not be a
member of the board of supervisors but who shall be a resident of the
San Fernando Valley Statistical Area, as defined in subdivision (c)
of Section 11093. The board of supervisors shall also appoint an
alternate member who shall not be a member of the board of
supervisors but who is a resident of the San Fernando Valley
Statistical Area. The alternate member may serve and vote in place of
the member appointed pursuant to this subdivision if that member is
absent or disqualifies himself or herself from participating in a
meeting of the commission.
If the office of the regular member becomes vacant, the alternate
member may serve and vote in place of the former regular member until
the appointment and qualification of a regular member to fill the
vacancy.
(c) Two appointed by the cities in the county, each of whom shall
be a mayor or council member, appointed by the city selection
committee. The city selection committee shall also appoint one
alternate member who shall also be a mayor or council member and
shall be appointed and serve pursuant to Section 56335. The city
selection committee is encouraged to appoint members to fairly
represent the diversity of the cities in the county, with respect to
population and geography.
(d) One appointed by the presiding officer of the legislative body
of a city in the county having a population in excess of 30 percent
of the total population of the county who is a member of the
legislative body of the city. The presiding officer of the
legislative body shall also appoint an alternate member who is a
member of the legislative body. The alternate member may serve and
vote in place of the member appointed pursuant to this subdivision if
the member is absent or disqualifies himself or herself from
participating in a meeting of the commission.
If the office of the regular member becomes vacant, the alternate
member may serve and vote in place of the former regular member until
the appointment and qualification of a regular member to fill the
vacancy.
(e) Two presiding officers or members of legislative bodies of
independent special districts appointed by the independent special
district selection committee pursuant to Section 56332. The
independent special district selection committee shall also appoint
one alternate member who shall be a presiding officer or member of
the legislative body of an independent special district and shall be
appointed and serve pursuant to Section 56332. The independent
special district selection committee is encouraged to appoint members
to fairly represent the diversity of the independent special
districts in the county, with respect to population and geography.
(f) One representing the general public appointed by the other
members of the commission. The other members of the commission may
also appoint one alternate member who shall serve pursuant to Section
56331.
SEC. 4. Section 56326.5 of the Government Code is amended to read:
56326.5. In Sacramento County, the commission shall consist of
seven members, appointed as follows:
(a) Two appointed by the board of supervisors from their own
membership. The board of supervisors shall appoint a third supervisor
who shall serve as an alternate member of the commission. The
alternate member may serve and vote in place of any supervisor on the
commission who is absent or who disqualifies himself or herself from
participating in a meeting of the commission. If the office of the
regular county member becomes vacant, the alternate member may serve
and vote in place of the former regular county member until the
appointment and qualification of a regular county member to fill the
vacancy.
(b) One appointed by the City of Sacramento who is a member of the
city council, appointed by the mayor and confirmed by the city
council. The mayor shall also appoint, subject to confirmation by the
council, an alternate member who is a member of the city council.
The alternate member may serve and vote in place of the regular city
member if the city member is absent or disqualifies himself or
herself from participating in a meeting of the commission. If the
office of the regular city member becomes vacant, the alternate
member may serve and vote in place of the former regular city member
until the appointment and qualification of a regular city member to
fill the vacancy.
(c) One appointed by the cities in the county, who is a mayor or
council member appointed by the city selection committee. The city
selection committee shall also appoint one alternate member who shall
also be a mayor or council member and shall be appointed and serve
pursuant to Section 56335. The city selection committee is encouraged
to appoint members to fairly represent the diversity of the cities
in the county, with respect to population and geography.
(d) Two presiding officers or members of legislative bodies of
independent special districts appointed by the independent special
district selection committee pursuant to Section 56332. The
independent special district selection committee shall also appoint
one alternate member who shall be a presiding officer or member of
the legislative body of an independent special district and shall be
appointed and serve pursuant to Section 56332. The independent
special district selection committee is encouraged to appoint members
to fairly represent the diversity of the independent special
districts in the county, with respect to population and geography.
(e) One representing the general public, appointed by the other
six members of the commission. The commission may also appoint an
alternate public member who may serve and vote in the place of the
regular public member if the regular public member is absent or
disqualifies himself or herself from participating in a meeting of
the commission. If the office of the regular public member becomes
vacant, the alternate member may serve and vote in place of the
former regular public member until the appointment and qualification
of a regular public member to fill the vacancy.
SEC. 5. Section 56327 of the Government Code is amended to read:
56327. In Santa Clara County, the commission shall consist of
five members, appointed as follows:
(a) Two appointed by the board of supervisors from their own
membership. The board of supervisors shall appoint a third supervisor
who shall serve as an alternate member of the commission. The
alternate member may serve and vote in place of any supervisor on the
commission who is absent or who disqualifies himself or herself from
participating in a meeting of the commission. If the office of the
regular county member becomes vacant, the alternate member may serve
and vote in place of the former regular county member until the
appointment and qualification of a regular county member to fill the
vacancy.
(b) One appointed by the city in the county having the largest
population, who is a member of the legislative body of the city,
appointed by the city council. The city council shall also appoint an
alternate member who is a member of the legislative body of the
city. The alternate member may serve and vote in place of the regular
city member if the city member is absent or disqualifies himself or
herself from participating in a meeting of the commission. If the
office of the regular city member becomes vacant, the alternate
member may serve and vote in place of the former regular city member
until the appointment and qualification of a regular city member to
fill the vacancy.
(c) One appointed by the cities in the county, who is a mayor or
council member appointed by the city selection committee. The city
selection committee shall also appoint one alternate member who shall
also be a mayor or council member and shall be appointed and serve
pursuant to Section 56335. The city selection committee is encouraged
to appoint members to fairly represent the diversity of the cities
in the county, with respect to population and geography.
(d) One representing the general public, appointed by the other
four, or, if the commission is enlarged pursuant to Section 56327.3,
the other six, members of the commission. This member shall not be a
resident of a city which is already represented on the commission.
The commission may also appoint an alternate public member, who shall
not be a resident of a city represented on the commission, and who
may serve and vote in the place of the regular public member if the
regular public member is absent or disqualifies himself or herself
from participating in a meeting of the commission. If the office of
the regular public member becomes vacant, the alternate member may
serve and vote in place of the former regular public member until the
appointment and qualification of a regular public member to fill the
vacancy.
SEC. 6. Section 56327.3 of the Government Code is amended to read:
56327.3. In Santa Clara County, the commission shall be enlarged
by two members if, pursuant to the provisions of Chapter 5
(commencing with Section 56821), the commission orders representation
of special districts upon the commission.
SEC. 7. Section 56329 of the Government Code is amended to read:
56329. If there is no city in the county, the commission shall
consist of five members, appointed as follows which may be further
augmented pursuant to Sections 56332 and 56332.5:
(a) Three appointed by the board of supervisors from their own
membership. The board of supervisors shall appoint a fourth
supervisor who is an alternate member of the commission. The
alternate member may serve and vote in place of any supervisor on the
commission who is absent or who disqualifies himself or herself from
participating in a meeting of the commission.
If the office of a regular county member becomes vacant, the
alternate member may serve and vote in place of the former regular
county member until the appointment and qualification of a regular
county member to fill the vacancy.
(b) Two representing the general public appointed by the other
three members of the commission. Appointment of the public member and
alternate public member shall be subject to the affirmative vote of
at least one of the members selected by each of the other appointing
authorities.
SEC. 8. Section 56332 of the Government Code is amended to read:
56332. (a) The independent special district selection committee
shall consist of the presiding officer of the legislative body of
each independent special district. However, if the presiding officer
of an independent special district is unable to participate in a
meeting or election of the independent special district selection
committee, the legislative body of the district may appoint one of
its members as an alternate to participate in the selection committee
in the presiding officer's place. Those districts shall include
districts located wholly within the county and those containing
territory within the county representing 50 percent or more of the
assessed value of taxable property of the district, as shown on the
last equalized county assessment roll. Each member of the committee
shall be entitled to one vote for each independent special district
of which he or she is the presiding officer or his or her alternate
as designated by the governing body. Members representing a majority
of the eligible districts shall constitute a quorum.
(b) The executive officer shall call and give written notice of
all meetings of the members of the selection committee. A meeting
shall be called and held under one of the following circumstances:
(1) Whenever the executive officer anticipates that a vacancy will
occur within the next 90 days among the members or alternate member
representing independent special districts on the commission.
(2) Whenever a vacancy exists among the members or alternate
member representing independent special districts upon the
commission.
(3) Upon receipt of a written request by one or more members of
the selection committee representing districts having 10 percent or
more of the assessed value of taxable property within the county, as
shown on the last equalized county assessment roll.
(c) The selection committee shall appoint two regular members and
one alternate member to the commission. The members so appointed
shall be elected or appointed members of the legislative body of an
independent special district residing within the county but shall not
be members of the legislative body of a city or county. If one of
the regular district members is absent from a commission meeting or
disqualifies himself or herself from participating in a meeting, the
alternate district member may serve and vote in place of the regular
district member for that meeting. Service on the commission by a
regular district member shall not disqualify, or be cause for
disqualification of, the member from acting on proposals affecting
the special district on whose legislative body the member serves. The
special district selection committee may, at the time it appoints a
member or alternate, provide that the member or alternate is
disqualified from voting on proposals affecting the district on whose
legislative body the member serves.
(d) If the office of a regular district member becomes vacant, the
alternate member may serve and vote in place of the former regular
district member until the appointment and qualification of a regular
district member to fill the vacancy.
(e) A majority of the independent special district selection
committee may determine to conduct the committee's business by mail,
including holding all elections by mailed ballot, pursuant to
subdivision (f).
(f) If the independent special district selection committee has
determined to conduct the committee's business by mail or if the
executive officer determines that a meeting of the special district
selection committee, for the purpose of appointing the special
district members or filling vacancies, is not feasible, the executive
officer shall conduct the business of the committee by mail.
Elections by mail shall be conducted as provided in this subdivision.
(1) The executive officer shall prepare and deliver a call for
nominations to each eligible district. The presiding officer, or his
or her alternate as designated by the governing body, may respond in
writing by the date specified in the call for nominations, which date
shall be at least 30 days from the date on which the executive
officer mailed the call for nominations to the eligible district.
(2) At the end of the nominating period, if only one candidate is
nominated for a vacant seat, that candidate shall be deemed
appointed. If two or more candidates are nominated, the executive
officer shall prepare and deliver one ballot and voting instructions
to each eligible district. The ballot shall include the names of all
nominees and the office for which each was nominated. Each presiding
officer, or his or her alternate as designated by the governing body,
shall return the ballot to the executive officer by the date
specified in the voting instructions, which date shall be at least 30
days from the date on which the executive officer mailed the ballot
to the eligible district.
(3) The call for nominations, ballot, and voting instructions
shall be delivered by certified mail to each eligible district. As an
alternative to the delivery by certified mail, the executive
officer, with prior concurrence of the presiding officer or his or
her alternate as designated by the governing body, may transmit
materials by electronic mail.
(4) If the executive officer has transmitted the call for
nominations or ballot by electronic mail, the presiding officer, or
his or her alternate as designated by the governing body, may respond
to the executive officer by electronic mail.
(5) Each returned nomination and ballot shall be signed by the
presiding officer or his or her alternate as designated by the
governing body of the eligible district.
(6) For an election to be valid, at least a quorum of the special
districts must submit valid ballots. The candidate receiving the most
votes shall be elected, unless another procedure has been adopted by
the selection committee. Any nomination and ballot received by the
executive officer after the date specified is invalid, provided,
however, that if a quorum of ballots is not received by that date,
the executive officer shall extend the date to submit ballots by 60
days and notify all districts of the extension. The executive officer
shall announce the results of the election within seven days of the
date specified.
(7) All election materials shall be retained by the executive
officer for a period of at least six months after the announcement of
the election results.
(g) For purposes of this section, "executive officer" means the
executive officer or designee as authorized by the commission.
SEC. 9. Section 56332.5 of the Government Code is amended to read:
56332.5. If the commission does not have representation from
independent special districts on January 1, 2001, the commission
shall initiate proceedings for representation of independent special
districts upon the commission if requested by independent special
districts pursuant to this section. If an independent special
district adopts a resolution proposing representation of independent
special districts upon the commission, it shall immediately forward a
copy of the resolution to the executive officer. Upon receipt of
those resolutions from a majority of independent special districts
within a county, adopted by the districts within one year from the
date that the first resolution was adopted, the commission, at its
next regular meeting, shall adopt a resolution of intention. The
resolution of intention shall state whether the proceedings are
initiated by the commission or by an independent special district or
districts, in which case, the names of those districts shall be set
forth. The commission shall order the executive officer to call and
give notice of a meeting of the independent special district
selection committee to be held within 15 days after the adoption of
the resolution in order to appoint independent special district
representation on the commission pursuant to Section 56332.
SEC. 10. Section 56375.3 of the Government Code is amended to
read:
56375.3. (a) In addition to those powers enumerated in Section
56375, a commission shall approve, after notice and hearing, the
change of organization or reorganization of a city, and waive protest
proceedings pursuant to Part 4 (commencing with Section 57000)
entirely, if all of the following are true:
(1) The change of organization or reorganization is initiated on
or after January 1, 2000.
(2) The change of organization or reorganization is proposed by
resolution adopted by the affected city.
(3) The commission finds that the territory contained in the
change of organization or reorganization proposal meets all of the
requirements set forth in subdivision (b).
(b) Subdivision (a) applies to territory that meets all of the
following requirements:
(1) It does not exceed 150 acres in area, and that area
constitutes the entire island.
(2) The territory constitutes an entire unincorporated island
located within the limits of a city, or constitutes a reorganization
containing a number of individual unincorporated islands.
(3) It is surrounded in either of the following ways:
(A) Surrounded, or substantially surrounded, by the city to which
annexation is proposed or by the city and a county boundary or the
Pacific Ocean.
(B) Surrounded by the city to which annexation is proposed and
adjacent cities.
(4) It is substantially developed or developing. The finding
required by this paragraph shall be based upon one or more factors,
including, but not limited to, any of the following factors:
(A) The availability of public utility services.
(B) The presence of public improvements.
(C) The presence of physical improvements upon the parcel or
parcels within the area.
(5) It is not prime agricultural land, as defined by Section
56064.
(6) It will benefit from the change of organization or
reorganization or is receiving benefits from the annexing city.
(7) This subdivision does not apply to any unincorporated island
within a city that is a gated community where services are currently
provided by a community services district.
(8) Notwithstanding any other law, at the option of either the
city or the county, a separate property tax transfer agreement may be
agreed to between a city and a county pursuant to Section 99 of the
Revenue and Taxation Code regarding an annexation subject to this
subdivision without affecting any existing master tax sharing
agreement between the city and county.
(c) Notwithstanding any other provision of this subdivision, this
subdivision shall not apply to all or any part of that portion of the
development project area referenced in subdivision (e) of Section
33492.41 of the Health and Safety Code that as of January 1, 2000,
meets all of the following requirements:
(1) Is unincorporated territory.
(2) Contains at least 100 acres.
(3) Is surrounded or substantially surrounded by incorporated
territory.
(4) Contains at least 100 acres zoned for commercial or industrial
uses or is designated on the applicable county general plan for
commercial or industrial uses.
(d) The Legislature finds and
declares that the powers set forth in subdivision (a) for territory
that meets all the specifications in subdivision (b) are consistent
with the intent of promoting orderly growth and development pursuant
to Section 56001 and facilitate the annexation of disadvantaged
unincorporated communities, as defined in Section 56033.5.
SEC. 11. Section 56381.6 of the Government Code is amended to
read:
56381.6. (a) Notwithstanding the provisions of Section 56381, for
counties whose membership on the commission is established pursuant
to Sections 56326, 56326.5, 56327, or 56328, the commission's annual
operational costs shall be apportioned among the classes of public
agencies that appoint members to the commission in proportion to the
number of members appointed by each class. The classes of public
agencies that may be represented on the commission are the county,
the cities, and independent special districts. Any alternative cost
apportionment procedure may be adopted by the commission, subject to
a majority affirmative vote of the commission that includes the
affirmative vote of at least one of the members appointed by the
county, one of the members appointed by the cities, and one of the
members appointed by districts, if special districts are represented
on the commission.
(b) Allocation of costs among individual cities and independent
special districts and remittance of payments shall be in accordance
with the procedures of Section 56381. Notwithstanding Section 56381,
any city that has permanent membership on the commission pursuant to
Sections 56326, 56326.5, 56327, or 56328 shall be apportioned the
same percentage of the commission's annual operational costs as its
permanent member bears to the total membership of the commission,
excluding any public members selected by all the members. The balance
of the cities' portion of the commission's annual operational costs
shall be apportioned to the remaining cities in the county in
accordance with the procedures of Section 56381.
SEC. 12. Section 56383 of the Government Code is amended to read:
56383. (a) The commission may establish a schedule of fees and a
schedule of service charges for the proceedings taken pursuant to
this division, including, but not limited to, all of the following:
(1) Filing and processing applications filed with the commission.
(2) Proceedings undertaken by the commission and any
reorganization committee.
(3) Amending or updating a sphere of influence.
(4) Reconsidering a resolution making determinations.
(b) The fees shall not exceed the estimated reasonable cost of
providing the service for which the fee is charged and shall be
imposed pursuant to Section 66016. The service charges shall not
exceed the cost of providing the service for which the service charge
is charged and shall be imposed pursuant to Section 66016.
(c) The commission may require that an applicant deposit some or
all of the required amount that will be owed with the executive
officer before any further action is taken. The deposit shall be made
within the time period specified by the commission. No application
shall be deemed filed until the applicant deposits the required
amount with the executive officer. The executive officer shall
provide the applicant with an accounting of all costs charged against
the deposited amount. If the costs are less than the deposited
amount, the executive officer shall refund the balance to the
applicant after the executive officer verifies the completion of all
proceedings. If the costs exceed the deposited amount, the applicant
shall pay the difference prior to the completion of all proceedings.
(d) The commission may reduce or waive a fee, service charge, or
deposit if it finds that payment would be detrimental to the public
interest. The reduction or waiver of any fee, service charge, or
deposit is limited to the costs incurred by the commission in the
proceedings of an application.
(e) Any mandatory time limits for commission action may be
deferred until the applicant pays the required fee, service charge,
or deposit.
(f) The signatures on a petition submitted to the commission by
registered voters shall be verified by the elections official of the
county and the costs of verification shall be provided for in the
same manner and by the same agencies which bear the costs of
verifying signatures for an initiative petition in the same county.
(g) For incorporation proceedings that have been initiated by the
filing of a sufficient number of voter signatures on petitions that
have been verified by the county registrar of voters, the commission
may, upon the receipt of a certification by the proponents that they
are unable to raise sufficient funds to reimburse fees, service
charges, or deposits for the proceedings, take no action on the
proposal and request a loan from the General Fund of an amount
sufficient to cover those expenses subject to availability of an
appropriation for those purposes and in accordance with any
provisions of the appropriation. Repayment of the loan shall be made
a condition of approval of the incorporation, if successful, and
shall become an obligation of the newly formed city. Repayment shall
be made within two years of the effective date of incorporation. If
the proposal is denied by the commission or defeated at an election,
the loan shall be forgiven.
SEC. 13. Section 56384 of the Government Code is amended to read:
56384. (a) The commission shall appoint an executive officer who
shall conduct and perform the day-to-day business of the commission.
If the executive officer is subject to a conflict of interest on a
matter before the commission, the commission shall appoint an
alternate executive officer. The commission may recover its costs by
charging fees pursuant to Section 56383.
(b) The commission shall appoint legal counsel to advise it. If
the commission's counsel is subject to a conflict of interest on a
matter before the commission, the commission shall appoint alternate
legal counsel to advise it. The commission may recover its costs by
charging fees pursuant to Section 56383.
(c) The commission may appoint staff as it deems appropriate. If
staff for the commission is subject to a conflict of interest on a
matter before the commission, the commission shall appoint alternate
staff to assist it. The commission may recover its costs by charging
fees pursuant to Section 56383.
(d) (1) For purposes of this section, the term "conflict of
interest" shall be defined as it is for the purpose of the Political
Reform Act of 1974 (Title 9(commences 9
(commencing with Section 81000)) and shall also include matters
proscribed by Article 4 (commencing with Section 1090) of Chapter 1
of Division 4 of Title 1.
(2) For the purposes of subdivision (b), the term "conflict of
interest" shall also include matters addressed by Rule 3-310 of the
Rules of Professional Conduct promulgated by the State Bar of
California, pertaining to representation of adverse interests.
SEC. 14. Section 56653 of the Government Code,
as amended by Section 2 of Chapter 784 of the Statutes of 2014, is
amended to read:
56653. (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
(b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
(1) An enumeration and description of the services currently
provided or to be extended to the affected territory.
(2) The level and range of those services.
(3) An indication of when those services can feasibly be extended
to the affected territory, if new services are proposed.
(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
(5) Information with respect to how those services will be
financed.
(c) (1) In the case of a change of organization or reorganization
initiated by a local agency that includes a disadvantaged,
unincorporated community as defined in Section 56033.5, a local
agency may include in its resolution of application for change of
organization or reorganization an annexation development plan adopted
pursuant to Section 99.3 of the Revenue and Taxation Code to improve
or upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community
through the formation of a special district or reorganization of one
or more existing special districts with the consent of each special
district's governing body.
(2) The annexation development plan submitted pursuant to this
subdivision shall include information that demonstrates that the
formation or reorganization of the special district will provide all
of the following:
(A) The necessary financial resources to improve or upgrade
structures, roads, sewer, or water facilities or other
infrastructure. The annexation development plan shall also clarify
the local entity that shall be responsible for the delivery and
maintenance of the services identified in the application.
(B) An estimated timeframe for constructing and delivering the
services identified in the application.
(C) The governance, oversight, and long-term maintenance of the
services identified in the application after the initial costs are
recouped and the tax increment financing terminates.
(3) If a local agency includes an annexation development plan
pursuant to this subdivision, a local agency formation commission may
approve the proposal for a change of organization or reorganization
to include the formation of a special district or reorganization of a
special district with the special district's consent, including, but
not limited to, a community services district, municipal water
district, or sanitary district, to provide financing to improve or
upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community,
in conformity with the requirements of the principal act of the
district proposed to be formed and all required formation
proceedings.
(4) Pursuant to Section 56881, the commission shall include in its
resolution making determinations a description of the annexation
development plan, including, but not limited to, an explanation of
the proposed financing mechanism adopted pursuant to Section 99.3 of
the Revenue and Taxation Code, including, but not limited to, any
planned debt issuance associated with that annexation development
plan.
(d) This section shall not preclude a local agency formation
commission from considering any other options or exercising its
powers under Section 56375.
(e) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.
SEC. 15. Section 56653 of the Government Code,
as added by Section 3 of Chapter 784 of the Statutes of 2014, is
amended to read:
56653. (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
(b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
(1) An enumeration and description of the services currently
provided or to be extended to the affected territory.
(2) The level and range of those services.
(3) An indication of when those services can feasibly be extended
to the affected territory, if new services are proposed.
(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
(5) Information with respect to how those services will be
financed.
(c) This section shall become operative on January 1, 2025.
SEC. 16. SEC. 14. Section 57002 of
the Government Code is amended to read:
57002. (a) Within 35 days following the adoption of the
commission's resolution making determinations, the executive officer
of the commission shall set the proposal for hearing and give notice
of that hearing by mailing, publication, and posting, as provided in
Chapter 4 (commencing with Section 56150) of Part 1. The hearing
shall not be held prior to the expiration of the reconsideration
period specified in subdivision (b) of Section 56895. The date of
that hearing shall not be less than 21 days, or more than 60 days,
after the date the notice is given.
(b) Where the proceeding is for the establishment of a district as
a subsidiary district of a city, upon the request of the affected
district, the date of the hearing shall be at least 90 days, but no
more than 135 days, from the date the notice is given.
(c) If authorized by the commission pursuant to Section 56662 or
56663, a change of organization or reorganization may be approved
without notice, hearing, and election.
SEC. 17. SEC. 15. Section 57075 of
the Government Code is amended to read:
57075. In the case of registered voter districts or cities, where
a change of organization or reorganization consists solely of
annexations, detachments, the exercise of new or different functions
or class of services or the divestiture of the power to provide
particular functions or class of services within all or part of the
jurisdictional boundaries of a special district, or any combination
of those proposals, the commission, not more than 30 days after the
conclusion of the hearing, shall make a finding regarding the value
of written protests filed and not withdrawn, and take one of the
following actions, except as provided in subdivision (b) of Section
57002:
(a) In the case of inhabited territory, take one of the following
actions:
(1) Terminate proceedings if a majority protest exists in
accordance with Section 57078.
(2) Order the change of organization or reorganization subject to
confirmation by the registered voters residing within the affected
territory if written protests have been filed and not withdrawn by
either of the following:
(A) At least 25 percent, but less than 50 percent, of the
registered voters residing in the affected territory.
(B) At least 25 percent of the number of owners of land who also
own at least 25 percent of the assessed value of land within the
affected territory.
(3) Order the change of organization or reorganization without an
election if paragraphs (1) and (2) of this subdivision do not apply.
(b) In the case of uninhabited territory, take either of the
following actions:
(1) Terminate proceedings if a majority protest exists in
accordance with Section 57078.
(2) Order the change of organization or reorganization if written
protests have been filed and not withdrawn by owners of land who own
less than 50 percent of the total assessed value of land within the
affected territory.
SEC. 18. SEC. 16. Section 57075.5 of
the Government Code is amended to read:
57075.5. Notwithstanding Section 57075, if territory proposed to
be annexed to a city with more than 100,000 residents is inhabited
and is located in a county with a population of over 4,000,000, the
commission, not more than 30 days after conclusion of the hearing,
shall make a finding regarding the value of written protests filed
and not withdrawn and shall take one of the following actions:
(a) Terminate proceedings if written protests have been filed and
not withdrawn by 50 percent or more of the registered voters residing
within the affected territory.
(b) Order the change of organization or reorganization subject to
confirmation by the registered voters residing within the affected
territory, and request the city council to call a special election
and submit to the voters residing within the affected territory the
question of whether it shall be annexed to the city, if written
protests have been filed and not withdrawn by either of the
following:
(1) At least 15 percent of the registered voters residing within
the affected territory.
(2) At least 15 percent of the number of owners of land who also
own not less than 15 percent of the total assessed value of land
within the affected territory.
(c) Order the territory annexed without an election if
subdivisions (a) and (b) do not apply.
SEC. 19. SEC. 17. Section 57177.5 of
the Government Code is amended to read:
57177.5. In the case of elections on an order of consolidation of
cities or districts, the commission shall take one of the following
actions:
(a) Execute a certificate of completion confirming the order of
consolidation if, within the territory of each city or district
ordered to be consolidated, a majority of the votes cast on the
question favored the consolidation.
(b) Execute a certificate of termination of proceedings if, in one
of the cities or districts ordered to be consolidated, the votes
cast in favor of consolidation did not constitute a majority.
SEC. 20. SEC. 18. Section 57179 of
the Government Code is amended to read:
57179. The commission shall execute a certificate of termination
of proceedings if the votes cast in favor of the change of
organization or reorganization do not constitute a majority.