BILL ANALYSIS Ó AB 2032 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2032 (Linder) - As Amended April 11, 2016 ----------------------------------------------------------------- |Policy |Local Government |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 2032 Page 2 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. AB 2032 Page 3 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 AB 2032 Page 4