Amended in Senate March 23, 2015

Senate Bill No. 239

Introduced by Senator Hertzberg

February 17, 2015

An act to amend begin delete Section 56133 of end delete begin insert Sections 56021, 56654, 56824.10, and 56824.12 of, to add Section 56800.5 to, and to add Article 1.6 (commencing with Section 56824.20) to Chapter 5 of Part 3 of Division 3 of Title 5 of, end insert the Government Code, relating to begin delete local government. end delete begin insert local services. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 239, as amended, Hertzberg. begin delete Cities and districts: extended services. end delete begin insert Local services: contracts: fire protection services. end insert

begin insert

Existing law prescribes generally the powers and duties of the local agency formation commission in each county with respect to the review approval or disapproval of proposals for changes of organization or reorganization of cities and special districts within that county. Existing law establishes commission proceedings to consider the exercise of new or different functions or services, or the divestiture of the power to provide particular functions or services, by special districts.

end insert begin insert

This bill would establish commission proceedings to consider the exercise of new or extended fire protection services outside a public agency’s current service area by contract or agreement. The bill would require the legislative body of a public agency to adopt a resolution and submit the resolution along with a plan for services, as provided. The bill would require that a proposal by a state agency be initiated by the director of the agency with the approval of the Governor. The bill would require, prior to adopting the resolution or submitting the proposal, the public agency to enter into a written agreement for the performance of new or extended fire protection services with each affected public agency and recognized employee organization representing firefighters in the affected area and to conduct a public hearing on the resolution. The bill would provide that a proposal for a change of organization that involves the exercise of new or extended fire protection services outside a public agency’s current service area by contract or agreement may be initiated only by these proceedings.

end insert begin insert

The bill would require the commission to approve or disapprove the proposal as specified. The bill would require the commission to consider, among other things, to review a comprehensive fiscal analysis prepared by the executive officer in accordance with specified requirements.

end insert begin insert

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

end insert begin insert

This bill would make legislative findings to that effect.

end insert begin delete

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 authorizes a city or district to provide new or extended services by contract or agreement outside its jurisdictional boundaries if the city or district requests and receives permission to do so from the local agency formation commission in the affected county. Existing law authorizes the commission to authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization, or outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory, under specified circumstances. Existing law requires the executive officer of the local agency formation commission, within 30 days of receipt of a request for approval by a city or district of a contract to extend services outside its jurisdictional boundary, to determine whether the request is complete and acceptable for filing, as specified.

end delete begin delete

This bill would extend the period within which the executive officer is required to make that determination to 45 days.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 56021 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

56021.  

“Change of organization” means any of the following:

(a) A city incorporation.

(b) A district formation.

(c) An annexation to a city.

(d) An annexation to a district.

(e) A detachment from a city.

(f) A detachment from a district.

(g) A disincorporation of a city.

(h) A district dissolution.

(i) A consolidation of cities.

(j) A consolidation of special districts.

(k) A merger of a city and a district.

(l) Establishment of a subsidiary district.

(m) The exercise of new or different functions or classes of
services, or divestiture of the power to provide particular functions
or classes of services, within all or part of the jurisdictional
boundaries of a special district as provided in Article 1.5
(commencing with Section 56824.10) of Chapter 5 of Part 3 of
this division.

begin insert

(n) The exercise of new or extended fire protection services
outside a public agency’s current service area by contract or
agreement, 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, as provided in Article 1.6
(commencing with Section 56824.20) of Chapter 5 of Part 3 of
Division 3 of Title 5 of this code.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 56654 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

56654.  

(a) A proposal for a change of organization or a
reorganization may be made by the adoption of a resolution of
application by the legislative body of an affected local agency,
except as provided in subdivision (b).

(b)  begin insert (1) end insert begin insert   end insert Notwithstanding Section 56700, a proposal for a change
of organization that involves the exercise of new or different
functions or classes of services, or the divestiture of the power to
provide particular functions or classes of services, within all or
part of the jurisdictional boundaries of a special district, shall only
be initiated by the legislative body of that special district in
accordance with begin delete Sections 56824.10, 56824.12, and 56824.14. end delete
begin insert Article 1.5 (commencing with Section 56824.10) of Chapter 5. end insert

begin insert

(2) Notwithstanding Section 56700, a proposal for a change of
organization that involves the exercise of new or extended services
outside a public agency’s current service area by contract or
agreement, as defined in subdivision (n) of Section 56021, shall
only be initiated in accordance with Article 1.6 (commencing with
Section 56824.20) of Chapter 5.

end insert

(c) At least 21 days before the adoption of the resolution, the
legislative body may give mailed notice of its intention to adopt
a resolution of application to the commission and to each interested
agency and each subject agency. The notice shall generally describe
the proposal and the affected territory.

(d) Except for the provisions regarding signers and signatures,
a resolution of application shall contain all of the matters specified
for a petition in Section 56700 and shall be submitted with a plan
for services prepared pursuant to Section 56653.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 56800.5 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 56800.5. end insert   

For a proposal for a change of organization that
involves the exercise of new or extended services outside a public
agency’s current service area by contract or agreement, as defined
in subdivision (n) of Section 56021, the executive officer shall
prepare, or cause to be prepared by contract, a comprehensive
fiscal analysis. This analysis shall become part of the report
required pursuant to Section 56665. Data used for the analysis
shall be from the most recent fiscal year for which data are
available, preceding the issuance of the certificate of filing. When
data requested by the executive officer in the notice of affected
agencies are unavailable, the analysis shall document the source
and methodology of the data used. The analysis shall review and
document each of the following:

(a) The costs to the public agency that has proposed to provide
new or extended services during the three fiscal years following
a public agency entering into a contract to provide new or extended
services outside its current service area by contract or agreement,
in accordance with the following requirements:

(1) The executive officer shall include all direct and indirect
cost impacts to the existing service provider in the affected
territory.

(2) The executive officer shall review 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 shall
make a reasonable determination of the costs expected to be borne
by the public agency providing new or extended services.

(b) The revenues of the public agency that has proposed a new
or extended service outside its current service area during the
three fiscal years following the effective date of a contract or
agreement with another public agency to provide a new or extended
service.

(c) The effects on the costs and revenues of any affected public
agency, including the public agency proposing to provide the new
or extended service, during the three fiscal years that the new or
extended service will be provided.

(d) Any other information and analysis needed to make the
findings required by Section 56824.24.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 56824.10 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

56824.10.  

Commission proceedings for the exercise of new or
different functions or classes of services or divestiture of the power
to provide particular functions or classes of services, within all or
part of the jurisdictional boundaries of a special district, pursuant
to begin insert paragraph (1) of end insert subdivision (b) of Section 56654, may be
initiated by a resolution of application in accordance with this
article.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 56824.12 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

56824.12.  

(a) A proposal by a special district to provide a new
or different function or class of services or divestiture of the power
to provide particular functions or classes of services, within all or
part of the jurisdictional boundaries of a special district, pursuant
to begin insert paragraph (1) of end insert subdivision (b) of Section 56654, shall be
made by the adoption of a resolution of application by the
legislative body of the special district and shall include all of the
matters specified for a petition in Section 56700, except paragraph
(6) of subdivision (a) of Section 56700, and be submitted with a
plan for services prepared pursuant to Section 56653. The plan for
services for purposes of this article shall also include all of the
following information:

(1) The total estimated cost to provide the new or different
function or class of services within the special district’s
jurisdictional boundaries.

(2) The estimated cost of the new or different function or class
of services to customers within the special district’s jurisdictional
boundaries. The estimated costs may be identified by customer
class.

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

(4) A written summary of whether the new or different function
or class of services or divestiture of the power to provide particular
functions or classes of services, within all or part of the
jurisdictional boundaries of a special district, pursuant to begin insert paragraph
(1) of end insert subdivision (b) of Section 56654, will involve the activation
or divestiture of the power to provide a particular service or
services, service function or functions, or class of service or
services.

(5) A plan for financing the establishment of the new or different
function or class of services within the special district’s
jurisdictional boundaries.

(6) Alternatives for the establishment of the new or different
functions or class of services within the special district’s
jurisdictional boundaries.

(b) The clerk of the legislative body adopting a resolution of
application shall file a certified copy of that resolution with the
executive officer. Except as provided in subdivision (c), the
commission shall process resolutions of application adopted
pursuant to this article in accordance with Section 56824.14.

(c) (1) Prior to submitting a resolution of application pursuant
to this article to the commission, the legislative body of the special
district shall conduct a public hearing on the resolution. Notice of
the hearing shall be published pursuant to Sections 56153 and
56154.

(2) Any affected local agency, affected county, or any interested
person who wishes to appear at the hearing shall be given an
opportunity to provide oral or written testimony on the resolution.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Article 1.6 (commencing with Section 56824.20) is
added to Chapter 5 of Part 3 of Division 3 of Title 5 of the end insert begin insert Government Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 1.6. end insert   Fire Protection Services

 

begin insert 56824.20. end insert   

Commission proceedings pursuant to paragraph (2)
of subdivision (b) of Section 56654 may be initiated in accordance
with this article.

begin insert 56824.22. end insert   

(a) A proposal for a change of organization that
involves the exercise of new or extended services outside a public
agency’s current service area by contract or agreement, as defined
in subdivision (n) of Section 56021, 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
proposal 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 service area.

(2) In the case of a public agency that is a state agency, the
proposal shall be initiated by the director of the state agency
proposing to provide new or extended services outside the agency’s
current service area and be approved by the Governor.

(b) Prior to submitting a resolution of application pursuant to
this article to the commission, the legislative body of a public
agency or the director of a state agency shall do all of the
following:

(1) Obtain and submit 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 change of organization.

(2) Conduct a public hearing on the resolution. Notice of the
hearing shall be published pursuant to Sections 56154 and 56156.
The legislative body of the public agency or the director of the
state agency shall provide an affected public agency or an
interested person who wishes to appear at the hearing the
opportunity to present oral or written testimony on the resolution.

(c) A proposal for a change of organization submitted pursuant
to this article shall be submitted with a plan for services prepared
pursuant to Section 56653. The plan for services shall include all
of the following information:

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

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

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

(d) 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 article shall file a certified copy of the resolution
with the executive officer. The commission shall process resolutions
of application adopted pursuant to this chapter in accordance with
Section 56824.24.

begin insert 56824.24. end insert   

(a) The commission shall review and approve or
disapprove a proposal for a change of organization as defined in
subdivision (n) of Section 56021 after a public hearing called and
held for that purpose. The commission shall not consider or
approve a proposal that does not comply with the requirements of
subdivision (b) of Section 56824.22.

(b) (1) The commission shall not approve a proposal for a
change of organization as defined in subdivision (n) of Section
56021 unless the commission determines that the public agency
will have sufficient revenues to carry out the exercise of the new
or extended services outside its current area, except as specified
in paragraph (2).

(2) The commission may approve a proposal for a change of
organization as defined in subdivision (n) of Section 56021 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 services shall not be exercised.

(c) Notwithstanding Section 56375, the commission shall not
approve a proposal for a change of organization as defined in
subdivision (n) of Section 56021 unless the commission finds, based
on the entire record, all of the following:

(1) The proposed exercise of new or extended services outside
a public agency’s current service area 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 comprehensive fiscal
analysis prepared pursuant to Section 56800.5.

(3) The commission has reviewed the executive officer’s report
and recommendation prepared pursuant to Section 56665 and 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 a new or extended service.

(d) 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.

(e) 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.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert begin insert

The Legislature finds and declares that Section 6 of
this act, which adds Section 56824.22 to the Government Code,
furthers, within the meaning of paragraph (7) of subdivision (b)
of Section 3 of Article I of the California Constitution, the purposes
of that constitutional section as it relates to the right of public
access to the meetings of local public bodies or the writings of
local public officials and local agencies. Pursuant to paragraph
(7) of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:

end insert begin insert

This act provides for notice in accordance with existing
provisions of the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 and will ensure that the right of public
access to local agency meetings is protected.

end insert

begin delete

SECTION 1.  

Section 56133 of the Government Code is
amended to read:

56133.  

(a) A city or district may provide new or extended
services by contract or agreement outside its jurisdictional
boundaries only if it first requests and receives written approval
from the commission in the affected county.

(b) The commission may authorize a city or district to provide
new or extended services outside its jurisdictional boundaries but
within its sphere of influence in anticipation of a later change of
organization.

(c) The commission may authorize a city or district to provide
new or extended services outside its jurisdictional boundaries and
outside its sphere of influence to respond to an existing or
impending threat to the public health or safety of the residents of
the affected territory if both of the following requirements are met:

(1) The entity applying for the contract approval has provided
the commission with documentation of a threat to the health and
safety of the public or the affected residents.

(2) The commission has notified any alternate service provider,
including any water corporation as defined in Section 241 of the
Public Utilities Code, or sewer system corporation as defined in
Section 230.6 of the Public Utilities Code, that has filed a map and
a statement of its service capabilities with the commission.

(d) The executive officer, within 45 days of receipt of a request
for approval by a city or district of a contract to extend services
outside its jurisdictional boundary, shall determine whether the
request is complete and acceptable for filing or whether the request
is incomplete. If a request is determined not to be complete, 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, unless the
commission has delegated approval of those requests to the
executive officer. The commission or executive officer shall
approve, disapprove, or approve with conditions the contract for
extended services. If the contract is disapproved or approved with
conditions, the applicant may request reconsideration, citing the
reasons for reconsideration.

(e) This section does not apply to contracts or agreements solely
involving two or more public agencies where the public service
to be provided is an alternative to, or substitute for, public services
already being provided by an existing public service provider and
where the level of service to be provided is consistent with the
level of service contemplated by the existing service provider. This
section does not apply to contracts for the transfer of nonpotable
or nontreated water. This section does not apply to contracts or
agreements solely involving the provision of surplus water to
agricultural lands and facilities, including, but not limited to,
incidental residential structures, for projects that serve conservation
purposes or that directly support agricultural industries. However,
prior to extending surplus water service to any project that will
support or induce development, the city or district shall first request
and receive written approval from the commission in the affected
county. This section does not apply to an extended service that a
city or district was providing on or before January 1, 2001. This
section does not apply to a local publicly owned electric utility,
as defined by Section 9604 of the Public Utilities Code, providing
electric services that do not involve the acquisition, construction,
or installation of electric distribution facilities by the local publicly
owned electric utility, outside of the utility’s jurisdictional
boundaries.

end delete