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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