Amended in Senate June 1, 2016

Amended in Assembly April 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2910

Introduced by Committee on Local Government (Assembly Members Eggman (Chair), Waldron (Vice Chair), Alejo, Bonilla, Chiu, Cooley, Gordon, and Linder)

March 15, 2016

An act to amend Sections 56134, 56301, 56331, 56700.4, 56816, 56881, begin delete and 57130 end delete begin insert 57077.1, and 57130 end insert of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2910, as amended, Committee on Local Government. Local government: organization: omnibus bill.

(1) The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts, except as specified. Under existing law, with certain exceptions, a public agency is authorized to exercise new or extended services outside the public agency’s jurisdictional boundaries pursuant to a fire protection contract only if the public agency receives written approval from the local agency formation commission in the affected county. Existing law defines the term “jurisdictional boundaries” for these purposes. Existing law, for these purposes, references a public agency’s current service area.

This bill would revise these provisions to remove references to a public agency’s current service area and instead include references to the public agency’s jurisdictional boundaries. The bill would additionally make other technical changes.

(2) Existing law states that the purpose of a local agency formation commission is, among other things, to efficiently provide government services.

This bill would instead provide that one of the purposes of a commission is to encourage the efficient provision of government services.

(3) Existing law establishes the membership of local agency formation commissions in each county, and authorizes appointment of a public member and an alternate public member.

This bill would require the public member and alternate public member to be residents of the begin delete affected county. end delete begin insert county of the appointing commission. end insert

(4) Existing law requires a proponent of a change of organization or reorganization, of cities and districts, to file a notice of intention with the local agency formation commission prior to circulating a petition, as specified.

This bill would exempt from this requirement a petition signed by landowners if all parcels within the affected territory are vested under the same ownership.

(5) Existing law requires a city that is subject to disincorporation to ascertain information relating to the city’s debt or contractual obligations and responsibilities, and provide a written statement to the local agency formation commission that includes, among other things, the amount of any tax levy or other obligation due to the city that is unpaid or has not been collected.

This bill would begin insert instead require this element of the written statement to include the amount of any tax levy, assessment, or other obligation due to the city that is unpaid or has not been collected, and would end insert make begin delete a end delete begin insert an additional end insert technical begin delete change to this provision. end delete begin insert change. end insert

(6) Existing law requires a local agency formation commission to adopt a resolution making determinations approving or disapproving a proposal, and requires the resolution for a proposal initiated by the commission to make a determination that a change of organization or reorganization that is authorized by the commission promotes public access and accountability for community services needs and financial resources.

This bill would make a technical change to this provision.

(7) Existing law requires notice of each change of organization or reorganization election to be given by publication, posting, and mailing, as specified.

This bill would correct an incorrect cross reference in this provision.

begin insert

(8) Existing law, notwithstanding specified requirements with respect to dissolution of a local agency, authorizes a local agency formation commission, if a change of organization consists of the dissolution of a district that is consistent with a prior action of the commission, as provided, to order the dissolution either without election or protest proceedings if the dissolution is initiated by the district board or without an election following at least one noticed public hearing and protest proceeding if the dissolution is initiated by an affected local agency.

end insert begin insert

This bill would authorize the commission to order the above-described dissolutions with respect to local hospital districts notwithstanding a statutory requirement that an order of dissolution of these districts be subject to voter confirmation.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 56134 of the Government Code is
amended to read:

56134.  

(a) (1) For the purposes of this section, “fire protection
contract” means a contract or agreement for the exercise of new
or extended fire protection services outside a public agency’s
jurisdictional boundaries, as authorized by Chapter 4 (commencing
with Section 55600) of Part 2 of Division 2 of Title 5 of this code
or by Article 4 (commencing with Section 4141) of Chapter 1 of
Part 2 of Division 4 of the Public Resources Code, except those
contracts entered into pursuant to Sections 4143 and 4144 of the
Public Resources Code, that does either of the following:

(A) Transfers responsibility for providing services in more than
25 percent of the area within the jurisdictional boundaries of any
public agency affected by the contract or agreement.

(B) Changes the employment status of more than 25 percent of
the employees of any public agency affected by the contract or
agreement.

(2) A contract or agreement for the exercise of new or extended
fire protection services outside a public agency’s jurisdictional
boundaries, as authorized by Chapter 4 (commencing with Section
55600) of Part 2 of Division 2 of Title 5 of this code or Article 4
(commencing with Section 4141) of Chapter 1 of Part 2 of Division
4 of the Public Resources Code, except those contracts entered
into pursuant to Sections 4143 and 4144 of the Public Resources
Code, that, in combination with other contracts or agreements,
would produce the results described in subparagraph (A) or (B)
of paragraph (1) shall be deemed a fire protection contract for the
purposes of this section.

(3) For the purposes of this section, “jurisdictional boundaries”
shall include the territory or lands protected pursuant to a fire
protection contract entered into on or before December 31, 2015.
An extension of a fire protection contract entered into on or before
December 31, 2015, that would produce the results described in
subparagraph (A) or (B) of paragraph (1) shall be deemed a fire
protection contract for the purposes of this section.

(b) Notwithstanding Section 56133, a public agency may provide
new or extended services pursuant to a fire protection contract
only if it first requests and receives written approval from the
commission in the affected county pursuant to the requirements
of this section.

(c) A request by a public agency for commission approval of
new or extended services provided pursuant to a fire protection
contract shall be made by the adoption of a resolution of application
as follows:

(1) In the case of a public agency that is not a state agency, the
application shall be initiated by the adoption of a resolution of
application by the legislative body of the public agency proposing
to provide new or extended services outside the public agency’s
current jurisdictional boundaries.

(2) In the case of a public agency that is a state agency, the
application shall be initiated by the director of the state agency
proposing to provide new or extended services outside the agency’s
current jurisdictional boundaries and be approved by the Director
of Finance.

(3) In the case of a public agency that is a local agency currently
under contract with a state agency for the provision of fire
protection services and proposing to provide new or extended
services by the expansion of the existing contract or agreement,
the application shall be initiated by the public agency that is a local
agency and be approved by the Director of Finance.

(d) The legislative body of a public agency or the director of a
state agency shall not submit a resolution of application pursuant
to this section unless both of the following occur:

(1) The public agency does either of the following:

(A) Obtains and submits with the resolution a written agreement
validated and executed by each affected public agency and
recognized employee organization that represents firefighters of
the existing and proposed service providers consenting to the
proposed fire protection contract.

(B) Provides, at least 30 days prior to the hearing held pursuant
to paragraph (2), written notice to each affected public agency and
recognized employee organization that represents firefighters of
the existing and proposed service providers of the proposed fire
protection contract and submits a copy of each written notice with
the resolution of application. The notice shall, at minimum, include
a full copy of the proposed contract.

(2) The public agency conducts an open and public hearing on
the resolution, conducted pursuant to the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division
2 of Title 5) or the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2), as applicable.

(e) A resolution of application submitted pursuant to this section
shall be submitted with a plan which shall include all of the
following information:

(1) The total estimated cost to provide the new or extended fire
protection services in the affected territory.

(2) The estimated cost of the new or extended fire protection
services to customers in the affected territory.

(3) An identification of existing service providers, if any, of the
new or extended services proposed to be provided and the potential
fiscal impact to the customers of those existing providers.

(4) A plan for financing the exercise of the new or extended fire
protection services in the affected territory.

(5) Alternatives for the exercise of the new or extended fire
protection services in the affected territory.

(6) An enumeration and description of the new or extended fire
protection services proposed to be extended to the affected territory.

(7) The level and range of new or extended fire protection
services.

(8) An indication of when the new or extended fire protection
services can feasibly be extended to the affected territory.

(9) An indication of any improvements or upgrades to structures,
roads, sewer or water facilities, or other conditions the public
agency would impose or require within the affected territory if the
fire protection contract is completed.

(10) A determination, supported by documentation, that the
proposed fire protection contract meets the criteria established
pursuant to subparagraph (A) or (B) of paragraph (1) or paragraph
(2), as applicable, of subdivision (a).

(f) The applicant shall cause to be prepared by contract an
independent fiscal analysis to be submitted with the application
pursuant to this section. The analysis shall review and document
all of the following:

(1) A thorough review of the plan for services submitted by the
public agency pursuant to subdivision (e).

(2) How the costs of the existing service provider compare to
the costs of services provided in service areas with similar
populations and of similar geographic size that provide a similar
level and range of services and make a reasonable determination
of the costs expected to be borne by the public agency providing
new or extended fire protection services.

(3) Any other information and analysis needed to support the
findings required by subdivision (j).

(g) The clerk of the legislative body of a public agency or the
director of a state agency adopting a resolution of application
pursuant to this section shall file a certified copy of the resolution
with the executive officer.

(h) (1) The executive officer, within 30 days of receipt of a
public agency’s request for approval of a fire protection contract,
shall determine whether the request is complete and acceptable
for filing or whether the request is incomplete. If a request does
not comply with the requirements of subdivision (d), the executive
officer shall determine that the request is incomplete. If a request
is determined incomplete, the executive officer shall immediately
transmit that determination to the requester, specifying those parts
of the request that are incomplete and the manner in which they
can be made complete. When the request is deemed complete, the
executive officer shall place the request on the agenda of the next
commission meeting for which adequate notice can be given but
not more than 90 days from the date that the request is deemed
complete.

(2) The commission shall approve, disapprove, or approve with
conditions the contract for new or extended services following the
hearing at the commission meeting, as provided in paragraph (1).
If the contract is disapproved or approved with conditions, the
applicant may request reconsideration, citing the reasons for
reconsideration.

(i) (1) The commission shall not approve an application for
approval of a fire protection contract unless the commission
determines that the public agency will have sufficient revenues to
carry out the exercise of the new or extended fire protection
services outside its jurisdictional boundaries, except as specified
in paragraph (2).

(2) The commission may approve an application for approval
of a fire protection contract where the commission has determined
that the public agency will not have sufficient revenue to provide
the proposed new or different functions or class of services, if the
commission conditions its approval on the concurrent approval of
sufficient revenue sources pursuant to Section 56886. In approving
a proposal, the commission shall provide that, if the revenue
sources pursuant to Section 56886 are not approved, the authority
of the public agency to provide new or extended fire protection
services shall not be exercised.

(j) The commission shall not approve an application for approval
of a fire protection contract unless the commission determines,
based on the entire record, all of the following:

(1) The proposed exercise of new or extended fire protection
services outside a public agency’s jurisdictional boundaries is
consistent with the intent of this division, including, but not limited
to, the policies of Sections 56001 and 56300.

(2) The commission has reviewed the fiscal analysis prepared
pursuant to subdivision (f).

(3) The commission has reviewed any testimony presented at
the public hearing.

(4) The proposed affected territory is expected to receive
revenues sufficient to provide public services and facilities and a
reasonable reserve during the three fiscal years following the
effective date of the contract or agreement between the public
agencies to provide the new or extended fire protection services.

(k) At least 21 days prior to the date of the hearing, the executive
officer shall give mailed notice of that hearing to each affected
local agency or affected county, and to any interested party who
has filed a written request for notice with the executive officer. In
addition, at least 21 days prior to the date of that hearing, the
executive officer shall cause notice of the hearing to be published
in accordance with Section 56153 in a newspaper of general
circulation that is circulated within the territory affected by the
proposal proposed to be adopted and shall post the notice of the
hearing on the commission’s Internet Web site.

(l) The commission may continue from time to time any hearing
called pursuant to this section. The commission shall hear and
consider oral or written testimony presented by any affected local
agency, affected county, or any interested person who appears at
any hearing called and held pursuant to this section.

(m) This section shall not be construed to abrogate a public
agency’s obligations under the Meyers-Milias-Brown Act (Chapter
10 (commencing with Section 3500) of Division 4 of Title 1).

SEC. 2.  

Section 56301 of the Government Code is amended
to read:

56301.  

Among the purposes of a commission are discouraging
urban sprawl, preserving open-space and prime agricultural lands,
encouraging the efficient provision of government services, and
encouraging the orderly formation and development of local
agencies based upon local conditions and circumstances. One of
the objects of the commission is to make studies and to obtain and
furnish information which will contribute to the logical and
reasonable development of local agencies in each county and to
shape the development of local agencies so as to advantageously
provide for the present and future needs of each county and its
communities. When the formation of a new government entity is
proposed, a commission shall make a determination as to whether
existing agencies can feasibly provide the needed service or
services in a more efficient and accountable manner. If a new
single-purpose agency is deemed necessary, the commission shall
consider reorganization with other single-purpose agencies that
provide related services.

SEC. 3.  

Section 56331 of the Government Code is amended
to read:

56331.  

When appointing a public member pursuant to Sections
56325, 56326, 56326.5, 56327, 56328, 56328.5, and 56329, the
commission may also appoint one alternate public member who
may serve and vote in place of a regular public member who is
absent or who disqualifies himself or herself from participating in
a meeting of the commission. The public member and the alternate
public member shall be residents of the begin delete affected county. end delete begin insert county of
the appointing commission. end insert

If the office of a regular public member becomes vacant, the
alternate member may serve and vote in place of the former regular
public member until the appointment and qualification of a regular
public member to fill the vacancy.

No person appointed as a public member or alternate public
member pursuant to this chapter shall be an officer or employee
of the county or any city or district with territory in the county,
provided, however, that any officer or employee serving on January
1, 1994, may complete the term for which he or she was appointed.

SEC. 4.  

Section 56700.4 of the Government Code is amended
to read:

56700.4.  

(a) Before circulating any petition for change of
organization, the proponent shall file with the executive officer a
notice of intention that shall include the name and mailing address
of the proponent and a written statement, not to exceed 500 words
in length, setting forth the reasons for the proposal. The notice
shall be signed by a representative of the proponent, and shall be
in substantially the following form:

Notice of Intent to Circulate Petition

Notice is hereby given of the intention to circulate a petition
proposing to ____.

The reasons for the proposal are:

(b) After the filing required pursuant to subdivision (a), the
petition may be circulated for signatures.

(c) Upon receiving the notice, the executive officer shall notify
affected local agencies.

(d) The notice requirements of this section shall apply in addition
to any other applicable notice requirements.

(e) This section shall not apply to any petition signed by
landowners if all parcels within the affected territory are vested
under the same ownership.

SEC. 5.  

Section 56816 of the Government Code is amended
to read:

56816.  

(a) It is the intent of the Legislature that any proposal
that includes the disincorporation of a city result in a determination
that the debt or contractual obligations and responsibilities of the
city being disincorporated shall be the responsibility of that same
territory for repayment. To ascertain this information, the city shall
provide a written statement that determines and certifies all of the
following to the commission prior to the issuance of a certificate
of filing for a disincorporation proposal, pursuant to Sections 56651
and 56658:

(1) The indebtedness of the city.

(2) The amount of money in the city’s treasury.

(3) The amount of any tax begin delete levy end delete begin insert levy, assessment, end insert or other
obligation due to the city that is unpaid or has not been collected.

(4) The amount of current and future liabilities, both internal
debt owed to other special or restricted funds or enterprise funds
within the agency and external debt owed to other public agencies
or outside lenders or that results from contractual obligations,
which may include contracts for goods or services, retirement
obligations, actuarially determined unfunded pension liability of
all classes in a public retirement system, including any
documentation related to the termination of public retirement
contract provisions, and the liability for other postemployment
benefits. The information required by this paragraph shall include
any associated revenue stream for financing that may be or has
been committed to that liability, including employee contributions.

(b) The city shall provide a written statement identifying the
successor agency to the city’s former redevelopment agency, if
any, pursuant to Section 34173 of the Health and Safety Code.

SEC. 6.  

Section 56881 of the Government Code is amended
to read:

56881.  

The resolution making determinations shall also do all
of the following:

(a) Make any of the findings or determinations authorized or
required pursuant to Section 56375.

(b) For any proposal initiated by the commission pursuant to
subdivision (a) of Section 56375, make both of the following
determinations:

(1) Public service costs of a proposal that the commission is
authorizing are likely to be less than or substantially similar to the
costs of alternative means of providing the service.

(2) A change of organization or reorganization that is authorized
by the commission promotes public access and accountability for
community services needs and financial resources.

(c) If applicable, assign a distinctive short-term designation to
the affected territory and a description of the territory.

(d) Initiate protest proceedings pursuant to Part 4 (commencing
with Section 57000) in compliance with the resolution.

begin insert

begin insert SEC. 7. 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 begin delete Section 57102, end delete
begin insert Sections 57102 and 57103, end insert 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, 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 SEC. 7. end delete

begin insert SEC. 8. end insert   

Section 57130 of the Government Code is amended
to read:

57130.  

The elections official shall cause notice of each change
of organization or reorganization election to be given by
publication, posting, and mailing as provided in Chapter 2
(commencing with Section 57025) of Part 4.