BILL ANALYSIS Ó SB 1266 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1266 (McGuire) - As Amended April 12, 2016 ----------------------------------------------------------------- |Policy |Local Government |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 SB 1266 Page 2 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: SB 1266 Page 3 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 SB 1266 Page 4 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