Amended in Assembly May 10, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2471

Introduced by Assembly Member Quirk

(Coauthor: Assembly Member Bonta)

February 19, 2016

An act to amend begin delete Section end delete begin insert Sections 57077.1 and end insert 57103 of the Government Code, and to add Chapter 8 (commencing with Section 32495) to Division 23 of the Health and Safety Code, relating to health care districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2471, as amended, Quirk. Health care districts: dissolution.

Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, provides the authority and procedures for the initiation, conduct, and completion of changes of organization and reorganization of cities and districts by local agency formation commissions. Existing law establishes the procedures for the dissolution of the existence of a district and sets forth provisions for winding up the affairs of a dissolved district, as specified. Existing law generally authorizes the dissolution of a district without voter approval, except as specified. Notwithstanding those provisions, existing law subjects the dissolution of a health care district to voter approval.

This bill would require begin delete a end delete begin insert the Alameda County end insert local agency formation commission to order the dissolution of begin delete a health care district without an election if the end delete begin insert the Eden Township Healthcare District if that end insert health care district meets certain criteria, as specified. The bill would subject a dissolution under these provisions to begin delete the end delete begin insert specified end insert provisions of the act begin delete for winding up the affairs of a dissolved district. end delete begin insert that require dissolution by voter approval only if a majority protest exists, as specified. By requiring a higher level of service from the Alameda County local agency formation commission to analyze the criteria described above, the bill would impose a state-mandated local program. end insert

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This bill would make legislative findings and declarations as to the necessity of a special statute for the Eden Township Healthcare District in Alameda County.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 57077.1 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

57077.1.  

(a) If a change of organization consists of a
dissolution, the commission shall order the dissolution without
confirmation of the voters, except if the proposal meets the
requirements of subdivision (b), the commission shall order the
dissolution subject to confirmation of the voters.

(b) The commission shall order the dissolution subject to the
confirmation of the voters as follows:

(1) If the proposal was not initiated by the commission, and if
a subject agency has not objected by resolution to the proposal,
the commission has found that protests meet one of the following
protest thresholds:

(A) In the case of inhabited territory, protests have been signed
by either of the following:

(i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.

(ii) At least 25 percent of the voters entitled to vote as a result
of residing within, or owning land within, the affected territory.

(B) In the case of a landowner-voter district, that the territory
is uninhabited and that protests have been signed by at least 25
percent of the number of landowners within the affected territory
owning at least 25 percent of the assessed value of land within the
territory.

(2) If the proposal was not initiated by the commission, and if
a subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:

(A) In the case of inhabited territory, protests have been signed
by either of the following:

(i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.

(ii) At least 25 percent of the voters entitled to vote as a result
of residing within, or owning land within, any subject agency
within the affected territory.

(B) In the case of a landowner-voter district, that the territory
is uninhabited and protests have been signed by at least 25 percent
of the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.

(3) If the proposal was initiated by the commission, and
regardless of whether a subject agency has objected to the proposal
by resolution, written protests have been submitted that meet the
requirements of Section 57113.

(c) Notwithstanding subdivisions (a) and (b) and Section 57102,
if a change of organization consists of the dissolution of a district
that is consistent with a prior action of the commission pursuant
to Section 56378, 56425, or 56430, the commission may do either
of the following:

(1) If the dissolution is initiated by the district board,
immediately approve and order the dissolution without an election
or protest proceedings pursuant to this part.

(2) If the dissolution is initiated by an affected local agency, by
the commission pursuant to Section 56375, begin insert by the Alameda County
local agency formation commission pursuant to Section 32495 of
the Health and Safety Code, end insert or by petition pursuant to Section
56650, order the dissolution after holding at least one noticed
public hearing, and after conducting protest proceedings in
accordance with this part. Notwithstanding any other law, the
commission shall terminate proceedings if a majority protest exists
in accordance with Section 57078. If a majority protest is not
found, the commission shall order the dissolution without an
election.

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Section 57103 of the Government Code is amended
to read:

57103.  

Any order in any resolution adopted by the commission
on or after January 1, 1986, ordering the dissolution of a local
hospital district, organized pursuant to Division 23 (commencing
with Section 32000) of the Health and Safety Code, is subject to
confirmation by the voters, except as set forth in Chapter 8
(commencing with Section 32495) of Division 23 of the Health
and Safety Code.

begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

Chapter 8 (commencing with Section 32495) is added
to Division 23 of the Health and Safety Code, to read:

 

Chapter  8. Dissolution

 

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32495.  

(a) A local agency formation commission shall order
the dissolution of a health care district without an election if the
health care district meets all of the following criteria:

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begin insert 32495. end insert   

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(a) The Alameda County local agency formation
commission shall review the compliance of the Eden Township
Healthcare District with the criteria set forth in subdivision (b).
If all of the criteria under subdivision (b) are met, the commission
shall order the dissolution of the district pursuant to paragraph
(2) of subdivision (c) of Section 57077.1 of the Government Code.

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(b) For purposes of subdivision (a):

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(1) The health care district does not currently receive a property
tax allocation.

(2) The health care district has substantial net assets.

(3) The health care district does not provide a direct health care
service.

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(4) The health care district fails to comply with Section 32496,
if that section is added by Assembly Bill 2737 of the 2015-16
Regular Session of the Legislature.

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(b)

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begin insert (c) end insert  If begin delete a local agency formation end delete begin insert the end insert commission orders the
dissolution of begin delete a health care end delete begin insert the end insert district pursuant to subdivision (a),
the dissolution shall be subject to the provisions begin delete for winding up
the affairs of a dissolved district, as set forth in Chapter 6
(commencing with Section 57450) of Part 5 of Division 3 of Title
5 end delete begin insert of the dissolution process, as set forth in paragraph (2) of
subdivision (c) of Section 57077.1 end insert of the Government Code.

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(c)

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begin insert (d) end insert  For purposes of this section:

(1) “Direct health care service” means the ownership or
operation of a hospital, medical clinic, wellness center, or
ambulance service.

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(2) “Local agency formation commission” means the
commission in whose sphere of influence, as defined in Section
56076 of the Government Code, the health care district exists.

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(2) “District” or “health care district” means the Eden
Township Healthcare District.

end insert begin insert

(3) “Local agency formation commission” or “commission”
means the Alameda County local agency formation commission.

end insert

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begin insert SEC. 4. end insert   

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The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances relating to the
Eden Township Healthcare District in Alameda County.

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begin insert SEC. 5. end insert   

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If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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