BILL NUMBER: AB 2910 CHAPTERED
BILL TEXT
CHAPTER 165
FILED WITH SECRETARY OF STATE AUGUST 22, 2016
APPROVED BY GOVERNOR AUGUST 22, 2016
PASSED THE SENATE AUGUST 1, 2016
PASSED THE ASSEMBLY AUGUST 4, 2016
AMENDED IN SENATE JUNE 1, 2016
AMENDED IN ASSEMBLY APRIL 18, 2016
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, 57077.1, and 57130 of the Government Code, relating to local
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2910, 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 county of the appointing commission.
(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 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 make an additional technical change.
(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.
(8) Existing law, notwithstanding specified requirements with
respect to the 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 proceedings if the
dissolution is initiated by an affected local agency.
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.
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 county of the appointing commission.
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 levy, assessment, 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.
SEC. 7. 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 Sections 57102
and 57103, 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.
SEC. 8. 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.