BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1266  
          (McGuire) - As Amended April 12, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:  This bill requires joint powers authorities (JPA) or  
          joint powers agencies that provide municipal services to file  
          joint powers agreements and amendments with local agency  
          formation commissions (LAFCOs).   Specifically, this bill:   


          1)Requires a JPA to file with a LAFCO the full text of the joint  
            powers agreement, and any amendments to the agreement, in the  
            same manner as filed with the State Controller under existing  
            law, if the JPA:  


             a)   Meets the definition of a JPA provided in existing law  
               which defines a JPA formed for the local performance of  








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               governmental functions that includes the provision of  
               municipal services; and, 


             b)   Includes a local agency member that is a city, county,  
               or district.  


          2)Requires the filing to be with the LAFCO in each county within  
            which all or any part of a local agency's member's territory  
            is located.  


          3)Requires a JPA formed prior to January 1, 2017, and that meets  
            the criteria in 1) above, to file a copy of the agreement and  
            any amendments to the agreement with the LAFCO in each county  
            which all or any part of a local agency's territory is located  
            no later than July 1, 2017. 


          4)Prohibits any agency or entity administering a joint powers  
            agreement or amendment to an agreement which fails to file the  
            notice with a LAFCO, from issuing any bonds or incurring  
            indebtedness of any kind until filings are completed.


          FISCAL EFFECT:


          Negligible state fiscal impact. This bill requires JPAs to  
          provide LAFCOs with information that is similar to what they  
          already must submit to the State Controller. JPAs have limited  
          authority to submit claims for reimbursable mandates and it is  
          highly unlikely that reimbursement claims would be filed as a  
          result of this bill.


          COMMENTS:









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          1)Purpose.  Many existing JPAs provide municipal services to  
            communities throughout California.  However, LAFCO officials  
            frequently possess no information about the existence and  
            activities of some JPAs that provide municipal services.  This  
            lack of information makes it difficult for LAFCOs to fulfill  
            their statutory responsibility to plan and oversee the  
            responsive, efficient and effective delivery local government  
            services.  A 2011 report produced by the Legislative Analyst's  
            Office (LAO) noted that LAFCOs lack the legal authority to  
            ensure that JPAs are providing services and using public funds  
            efficiently and in a manner consistent with current law.  The  
            LAO suggested that JPAs should be subject to a higher level of  
            LAFCO oversight and identified "providing LAFCOs with copies  
            of all JPA agreements, including amendments" as a policy  
            option.   


            This bill does not grant LAFCOs any authority over JPAs'  
            formation, boundaries, organization, or services, fully  
            preserving the flexibility and autonomy that JPAs enjoy under  
            current law.  This bill helps LAFCOs provide better oversight  
            of municipal service delivery by providing them with crucial  
            information about JPAs that provide those services. 


          2)Background. State law requires LAFCOs to conduct studies of  
            existing governmental agencies, including studies to inventory  
            those agencies and determine their maximum service area and  
            service capacities.  To support those studies, government  
            agencies must comply with a LAFCO's request for information.   
            The Legislature recently included JPAs that provide municipal  
            services in the list of agencies from which a LAFCO can  
            request information and added joint powers agreements to the  
            list of documents that a LAFCO may request (AB 2156,  
            Achadjian, Chapter 21, Statutes of 2014).  Despite this new  
            statutory authority, some LAFCO officials still find it  
            difficult to obtain sufficient information about the  
            activities of JPAs that provide municipal services.  In some  








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            cases, they are not even aware of the existence of these JPAs  
            and have no knowledge of amendments that are made to existing  
            agreements.  Despite the fact that JPAs are submitting  
            information to the State Controller, LAFCOs cannot request  
            this information if they do not know when new JPAs are formed  
            or when existing agreements are amended.  LAFCO officials want  
            the Legislature to require JPAs to provide LAFCOs with  
            information that is similar to what JPAs already must submit  
            to the State Controller under current law.





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081