BILL NUMBER: AB 2471 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2016
INTRODUCED BY Assembly Member Quirk
(Coauthor: Assembly Member Bonta)
FEBRUARY 19, 2016
An act to amend Section Sections 57077.1
and 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 a the Alameda
County local agency formation commission to order the
dissolution of a health care district without an election if
the the Eden Township Healthcare District if that
health care district meets certain criteria, as specified. The
bill would subject a dissolution under these provisions to
the specified provisions of the act for
winding up the affairs of a dissolved district. 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.
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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 57077.1 of the
Government Code is amended to read:
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, by the Alameda
County local agency formation commission pursuant to Section 32495 of
the Health and Safety Code, 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.
SECTION 1. SEC. 2. 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.
SEC. 2. SEC. 3. Chapter 8
(commencing with Section 32495) is added to Division 23 of the Health
and Safety Code, to read:
CHAPTER 8. DISSOLUTION
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:
32495. (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.
(b) For purposes of subdivision (a):
(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.
(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.
(b)
(c) If a local agency formation
the commission orders the dissolution of a health
care the district pursuant to subdivision (a),
the dissolution shall be subject to the provisions 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 of the dissolutio n process, as set
forth in paragraph (2) of subdivision (c) of Section 57077.1
of the Government Code.
(c)
(d) 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.
(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.
(2) "District" or "health care district" means the Eden Township
Healthcare District.
(3) "Local agency formation commission" or "commission" means the
Alameda County local agency formation commission.
SEC. 4. 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.
SEC. 5. 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.