BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |AB 2910                          |Hearing    |6/8/16   |
          |          |                                 |Date:      |         |
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          |Author:   |Committee on Local Government    |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |6/1/16                           |Fiscal:    |No       |
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          |Consultant|Favorini-Csorba                                       |
          |:         |                                                      |
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                    Local government:  organization:  omnibus bill



          Proposes several changes to laws affecting local government  
          organization and reorganization.


           Background and Existing Law

           The Cortese-Knox-Hertzberg Local Government Reorganization Act  
          delegates the Legislature's power to control the boundaries of  
          cities and special districts to local agency formation  
          commissions (LAFCOs).  The courts call LAFCOs the Legislature's  
          watchdog over local boundary changes.

          As practitioners find problems with the Cortese-Knox-Hertzberg  
          Act, they ask for statutory improvements.  These minor problems  
          do not warrant separate (and expensive) bills. According to the  
          Legislative Analyst, in 2001-02 the cost of producing a bill was  
          $17,890.

          Legislators respond by combining several of these minor  
          amendments into an annual "omnibus bill."  In 2015, for example,  
          the LAFCO omnibus bill was AB 1532 (Assembly Local Government  
          Committee, 2015) which contained several noncontroversial  
          statutory changes to LAFCO law, avoiding significant legislative  
          costs.  

           Proposed Law







          AB 2910 (Committee on Local Government) 6/1/16          Page 2  
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           Assembly Bill 2910 makes the following changes to state laws  
          affecting LAFCOs:

                 Clarifies some changes in law enacted by SB 239  
               (Hertzberg, 2015).  SB 239 only replaced some references to  
               "current service area" with "jurisdictional boundaries."   
               Assembly Bill 2910 ensures the consistent use of  
               jurisdictional boundaries throughout the law.  It also  
               clarifies that the fiscal analysis required by SB 239 is  
               not a "comprehensive fiscal analysis," which is a specific  
               term within the context of LAFCO proceedings. [See SEC. 1  
               of the bill.]

                 Corrects statutory language that describes LAFCO  
               purposes. Current law states that one purpose of a LAFCO is  
               to efficiently provide government services.  However, a  
               LAFCO does not directly provide services, but instead  
               encourages service providers, such as special districts, to  
               efficiently provide those services.  Assembly Bill 2910  
               makes technical changes to reflect this purpose. [SEC. 2]

                 Requires public members sitting on LAFCOs to be  
               residents of the county of the appointing commission.  The  
               composition of LAFCOs includes the appointment of a public  
               member and an alternate public member.  Existing law places  
               only one restriction on the selection of public members:  
               that no officer or employee of a county, city, or district  
               within the county may be appointed as a public member or  
               alternate public member.  In practice, LAFCOs require these  
               public members to be a resident of the county of the  
               commission that appoints the public member.  Assembly Bill  
               2910 codifies this practice and includes references to  
               LAFCOs that have the composition of their commission  
               established separately in a stand-alone section. [SEC. 3]

                 Exempts proposals for changes of organization that are  
               initiated by the sole landowner in the affected area from  
               certain notices.  Current law requires the filing of a  
               Notice of Intent to Circulate Petition prior to the  
               circulation of any petition to initiate a change of  
               organization.  In cases when there is only a single  
               landowner involved, that sole landowner must currently file  
               this notice before they can sign their own petition.   








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               Assembly Bill 2910 exempts proposals initiated by a  
               landowner that owns all parcels in the affected territory  
               from this requirement.  [SEC. 4]

                 Corrects a typo in the statute that governs city  
               disincorporation and ensures that any unpaid assessments  
               owed to a disincorporating city are tallied along with  
               other financial obligations.  Current law requires  
               disincorporating cities to determine and certify the amount  
               of any tax levy or other obligation outstanding.  Assembly  
               Bill 2910 adds assessments to this list to clarify that  
               they should be counted as well. [SEC. 5]

                 Corrects a typo in the statute that governs the LAFCO  
               decision-making process. [SEC. 6]

                 Clarifies that LAFCOs' ability to conduct an expedited  
               dissolution process for special districts generally also  
               applies to healthcare districts.  Current law, enacted by  
               AB 912 (Gordon, 2011), authorizes LAFCOs to dissolve a  
               special district without an election in some cases, but it  
               mistakenly excluded a reference to another provision of  
               current law that states that dissolutions of local hospital  
               districts are subject to approval by voters. Assembly Bill  
               2910 adds the requisite reference and ensures that the  
               expedited dissolution process applies to all special  
               districts. [SEC. 7]

                 Corrects a cross reference in statute governing the  
               notice of changes of organization or reorganization. [SEC.  
               8]


           State Revenue Impact

           No estimate.


           Comments

            Purpose of the bill  .  Even the best written statutes contain  
          minor flaws.  When statutory problems appear in the state law  
          affecting LAFCOs, the Assembly Local Government Committee avoids  
          legislative costs by combining several changes to the state laws  








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          into a single, consensus bill.  AB 2910 compiles, into a single  
          bill, noncontroversial statutory changes to eight parts of LAFCO  
          law.  Moving a bill through the legislative process costs around  
          $18,000.  By avoiding seven other bills, the Committee's measure  
          avoids more than $126,000 in legislative costs.  Although the  
          practice may violate a strict interpretation of the  
          single-subject and germaneness rules, the Committee insists on a  
          very public review of each item.  By carefully reviewing each  
          item with the affected parties, the Committee also avoids  
          controversy.  Should any item in AB 2910 attract opposition, the  
          Committee will delete it.  In this transparent process, there is  
          no hidden agenda.  If it's not consensus, it's not omnibus.  








































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          Assembly Actions

           Assembly Local Government            9-0
          Assembly Floor                79-0


           Support and  
          Opposition   (6/2/16)


           Support  :  California Association of Local Agency Formation  
          Commissions (sponsor); Alameda LAFCO; Association of California  
          Water Agencies; Contra Costa LAFCO; El Dorado LAFCO; Imperial  
          County LAFCO; Los Angeles County LAFCO; Riverside LAFCO; San  
          Diego LAFCO; San Luis Obispo LAFCO; Santa Clara County LAFCO;  
          Solano LAFCO; Yolo LAFCO; 

           Opposition  :  None received.


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