BILL ANALYSIS Ó
AB 2032
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2032 (Linder) - As Amended April 11, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY: This bill makes several changes to the city
disincorporation process in the Cortese-Knox-Hertzberg Act
(Act). Specifically, this bill:
1)Adds assessments to the list of information that must be
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provided by a city in a written statement to the local agency
formation commission (LAFCO) prior to initiating
disincorporation proceedings.
2)Adds all current and long-term liabilities, and the potential
financing mechanism or mechanisms to address any shortfalls
and obligations for those responsibilities, to the list of
information required to be in a comprehensive fiscal analysis
prepared by a LAFCO executive officer for a proposal to
discorporate a city.
3)Requires the county tax collector, if an assessment has been
levied by the disincorporated city and remains uncollected, to
collect it in the same manner provided in law for the
collection of taxes.
4)Requires the governing body of the successor, instead of the
board of supervisors, to provide for the collection of debts
due to the city and wind up its affairs. Requires the officer
of the successor, instead of the county officer, to perform
any acts necessary for winding up the city affairs, upon order
by LAFCO.
FISCAL EFFECT:
1)LAFCOs are fee supported, thus there are no state costs
associated with their duties.
2)Potentially reimbursable state mandate costs to county tax
collectors to collect outstanding assessments. These costs
are likely minor and disincorporations are rare.
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COMMENTS:
1)Purpose. According to the author, "The State Association of
County Auditors is seeking minor amendments to provide more
clarity to county auditors potentially tasked with
administering a disincorporation. The amendments will add
categories of "obligations" that the successor agency may need
disclosed and also further detail on mechanisms to address
debt and obligations that will be taken on by the successor."
2)Background. LAFCOs are responsible for coordinating changes in
local governmental boundaries for each city and special
district within each county. The Act establishes procedures
for local government changes of organization, including city
disincorporations. AB 851 (Mayes), Chapter 304, Statutes of
2015, updated the city disincorporation process in the Act.
This bill makes several minor changes to those statutes in
order to improve the process.
Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081
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