BILL NUMBER: SB 239	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2015
	AMENDED IN SENATE  APRIL 23, 2015
	AMENDED IN SENATE  MARCH 23, 2015

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 17, 2015

   An act to amend Sections 56017.2 and 56133 of, and to add Section
56134 to, the Government Code, relating to local services.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 239, as amended, Hertzberg. Local services: contracts: fire
protection services.
   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 permits a city or district to provide
extended services, as defined, outside its jurisdictional boundaries
only if it first requests and receives written approval from the
local agency formation commission in the affected county. Under
existing law, the commission may authorize a city or district to
provide new or extended services outside both its jurisdictional
boundaries and its sphere of influence under specified circumstances.

   This bill  would   would, with certain
exceptions,  permit a public agency to exercise new or extended
services outside the public agency's current service area pursuant to
a fire protection  reorganization  contract, as
defined, only if the public agency receives written approval from the
local agency formation commission in the affected county. The bill
would require that the legislative body of a public agency that is
not a state agency adopt a resolution of application and submit the
resolution along with a plan for services, as provided, and that a
proposal by a state agency be initiated by the director of the agency
with the approval of the  Governor.   Director
of Finance.  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
services pursuant to a fire protection  reorganization
 contract  with   with, or provide
written notice of a proposed fire protection contract to,  each
affected public agency and recognized employee organization
representing firefighters in the affected  area 
 area,  and to conduct a public hearing on the resolution.
   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, a comprehensive fiscal analysis
prepared by the executive officer in accordance with specified
requirements.
   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.
   This bill would make legislative findings to that effect.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 56017.2 of the Government Code is amended to
read:
   56017.2.  "Application" means any of the following:
   (a) A resolution of application or petition initiating a change of
organization or reorganization with supporting documentation as
required by the commission or executive officer.
   (b) A request for a sphere of influence amendment or update
pursuant to Section 56425.
   (c) A request by a city or district for commission approval of an
extension of services outside the agency's jurisdictional boundaries
pursuant to Section 56133 or 56134.
  SEC. 2.  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 30 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 any of the following:
   (1) 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.
   (2) Contracts for the transfer of nonpotable or nontreated water.
   (3) 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.
   (4) An extended service that a city or district was providing on
or before January 1, 2001.
   (5) 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.
   (6) A fire protection  reorganization  contract,
as defined in subdivision (a) of Section 56134.
  SEC. 3.  Section 56134 is added to the Government Code, to read:
   56134.  (a) (1) For the purposes of this section, "fire protection
 reorganization  contract" means a contract or
agreement for the exercise of new or extended fire protection
services outside a public agency's current service area, 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, that does either of the following:
   (A) Transfers responsibility for providing services in more than
25 percent of the service area 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 current service
area, 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, 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 
reorganization  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 
reorganization  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  under  
pursuant to  a fire protection  reorganization
 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
service area.
   (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 service area and be approved by the  Governor.
  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  obtains   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  change of organization.
  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
 must   shall  be submitted with a 
fire services reorganization contract plan that conforms to the
requirements of Section 56653. The  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. 
   (f) The applicant shall cause to be prepared by contract an
independent comprehensive fiscal analysis to be submitted with the
application pursuant to this section. The analysis shall review and
 document:   document all of the following:

   (1) The costs to the public agency that has proposed to provide
new or extended fire protection services during the three fiscal
years following a public agency entering into a fire protection
 reorganization  contract, in accordance with the
following requirements:
   (A) The analysis  must   shall  include
all direct and indirect cost impacts to the existing service provider
in the affected territory.
   (B) The analysis  must   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 fire protection services.
   (2) The revenues of the public agency that has proposed  a
 new or extended fire protection services 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.
   (3) The effects on the costs and revenues of any affected public
agency, including the public agency proposing to provide the new or
extended fire protection services, during the three fiscal years that
the new or extended fire protection services will be provided.
   (4) 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 
reorganization  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  not to be
complete,   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  reorganization 
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 current area, except as
specified in paragraph (2).
   (2) The commission may approve an application for approval of a
fire protection  reorganization  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  reorganization  contract
unless the commission finds, 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 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 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  a   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-Millias-Brown Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 1). 
   SEC. 4.    The Legislature finds and declares that,
with respect to fire protection contracts subject to this act, the
provisions of this act are not intended to change, alter, or in any
way affect the existing jurisdiction of a local agency formation
commission over proceedings that involve the provision of prehospital
emergency medical servic   es. 
   SEC. 4.   SEC. 5.   The Legislature
finds and declares that Section 3 of this act, which adds Section
56134 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:
   This act provides for notice to the public 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.