Amended in Senate June 1, 2016

Amended in Senate April 12, 2016

Amended in Senate March 28, 2016

Senate Bill No. 1318

Introduced by Senator Wolk

February 19, 2016

An act to begin insert add Section 56378.5 to, and to end insert amend Sections 56375, 56425, begin delete and 56430 end delete begin insert 56430, 56653, and 65302.10 end insert of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

SB 1318, as amended, Wolk. Local government: drinking water infrastructure or services: wastewater infrastructure or services.

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 governs the procedures for the formation and change of organization of cities and special districts.

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Existing law authorizes a local agency formation commission to initiate proposals by resolution of application for, among other things, the consolidation of a district, a merger, and the formation of a new district or districts.

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This bill would additionally authorize a local agency formation commission to initiate a proposal by resolution of application for the annexation of a disadvantaged unincorporated community, as specified.

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Existing law requires an applicant for a change of organization or reorganization to include a plan for providing services within the affected territory that includes, among other things, an enumeration and description of the services to be extended to the affected territory and an indication of when those services can feasibly be extended to the affected territory.

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This bill would additionally require an applicant to include an enumeration and description of the services currently provided, and would require an indication of when services can feasibly be extended to the affected territory if new services are proposed.

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Existing law, except as otherwise provided, prohibits a local agency formation commission from approving an annexation to a city of any territory greater than 10 acres, or as determined by commission policy, where there exists a disadvantaged unincorporated community, as specified, unless an application to annex the disadvantaged unincorporated community to the subject city has been filed with the executive officer.

This bill would extend that prohibition to an annexation to a qualified special district. The bill would define “qualified special district” to mean a special district with more than 500 service connections that provides drinking water or wastewater services.

Existing law requires a local agency formation commission to develop and determine the sphere of influence of each city and each special district within the county and to enact policies designed to promote the logical and orderly development of areas within the sphere.

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This bill would additionally require a local agency formation commission to enact policies designed to promote the logical and orderly development of areas adjacent to the sphere of influence of each city and special district.

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The bill would prohibit a commission from approving a sphere of influence update that removes a disadvantaged community from a city’s or special district’s sphere of influence unless the commission makes a finding that removal of the community will result in improved service delivery to the community.

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Existing law requires a commission, in preparing and updating spheres of influence, to conduct a service review of the municipal services provided in the county or other area designated by the commission. Existing law authorizes the commission, in conducting the review, to assess various alternatives for improving efficiency and affordability of infrastructure and service delivery, as specified, and to include a review of whether the agencies under review are in compliance with the California Safe Drinking Water Act.

Where there exists a disadvantaged unincorporated community that lacks adequate drinking water and wastewater services and infrastructure within or contiguous with the subject sphere, this bill would instead require the commission to make the assessment of alternatives and to include the safe drinking water review described above if the information is available from the State Water Resources Control Board or other sources. begin delete This bill would, on or before January 1, 2022, and every 5 years thereafter, require the commission to conduct service reviews sufficient to have reviewed the entire territory of the county. The bill would require the commission to file a map of the county that identifies disadvantaged unincorporated communities that lack safe drinking water or adequate wastewater with the Office of Planning and Research, and would require the Office of Planning and Research to post the map on its Internet Web site. The bill would additionally require the commission, within 2 years of identifying a disadvantaged unincorporated community that lacks safe drinking water or adequate wastewater services, to recommend a plan based on the alternatives analyzed and adopt any actions necessary to implement the plan, as specified. end delete

begin insert

This bill would, on or before January 1, 2018, and every 5 years thereafter, additionally require a local agency formation commission to identify and determine the location of any disadvantaged unincorporated community, as defined, that is within or adjacent to the sphere of influence of a city or a special district and review the adequacy and need for water and wastewater services within the identified disadvantaged unincorporated communities, as specified. The bill would, on or before January 1, 2020, and every 5 years thereafter, require the commission to adopt a written accessibility plan that addresses any existing service inefficiencies or needs within any identified disadvantaged unincorporated community, and would require a local agency formation commission to take certain steps to implement the plan and address service needs. The bill would, on or before January, 1, 2018, additionally require a local agency formation commission to file a map of the county that identified any disadvantaged unincorporated community that lacks safe drinking water or adequate wastewater and a copy of the accessibility plan.

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Existing law requires each city or county, on or before the due date for the next adoption of its housing element, to review and update the land use element of its general plan based on available data, including, but not limited to, the data an analysis prepared by a local agency formation commission in a service review of the municipal services of unincorporated island, fringe, or legacy communities inside or near its boundaries, as specified. Existing law also requires each city and county to, on or before the due date for each subsequent revision of its housing element, review and if necessary amend its general plan to update specified analysis.

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This bill would require each city or county, on or before the next adoption of its housing element and on or before the due date for each subsequent revision of its housing element, to additionally incorporate any adopted accessibility plan into the general plan and any update of the land use element of its general plan, as specified.

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By imposing new duties on local government officials, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 56375 of the Government Code is
amended to read:

56375.  

The commission shall have all of the following powers
and duties subject to any limitations upon its jurisdiction set forth
in this part:

(a) (1) To review and approve with or without amendment,
wholly, partially, or conditionally, or disapprove proposals for
changes of organization or reorganization, consistent with written
policies, procedures, and guidelines adopted by the commission.

(2) The commission may initiate proposals by resolution of
application for any of the following:

(A) The consolidation of a district, as defined in Section 56036.

(B) The dissolution of a district.

(C) A merger.

(D) The establishment of a subsidiary district.

(E) The formation of a new district or districts.

begin insert

(F) The annexation of a disadvantaged unincorporated
community as defined by Section 56378.5.

end insert begin delete

(F)

end delete

begin insert (G) end insert  A reorganization that includes any of the changes specified
in subparagraph (A), (B), (C), (D), or (E).

(3) A commission may initiate a proposal described in paragraph
(2) only if that change of organization or reorganization is
consistent with a recommendation or conclusion of a study
prepared pursuant to Section 56378, 56425, or 56430, and the
commission makes the determinations specified in subdivision (b)
of Section 56881.

(4) A commission shall not disapprove an annexation to a city,
initiated by resolution, of contiguous territory that the commission
finds is any of the following:

(A) Surrounded or substantially surrounded by the city to which
the annexation is proposed or by that city and a county boundary
or the Pacific Ocean if the territory to be annexed is substantially
developed or developing, is not prime agricultural land as defined
in Section 56064, is designated for urban growth by the general
plan of the annexing city, and is not within the sphere of influence
of another city.

(B) Located within an urban service area that has been delineated
and adopted by a commission, which is not prime agricultural land,
as defined by Section 56064, and is designated for urban growth
by the general plan of the annexing city.

(C) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.

(5) As a condition to the annexation of an area that is
surrounded, or substantially surrounded, by the city to which the
annexation is proposed, the commission may require, where
consistent with the purposes of this division, that the annexation
include the entire island of surrounded, or substantially surrounded,
territory.

(6) A commission shall not impose any conditions that would
directly regulate land use density or intensity, property
development, or subdivision requirements.

(7) The decision of the commission with regard to a proposal
to annex territory to a city shall be based upon the general plan
and prezoning of the city. When the development purposes are not
made known to the annexing city, the annexation shall be reviewed
on the basis of the adopted plans and policies of the annexing city
or county. A commission shall require, as a condition to
annexation, that a city prezone the territory to be annexed or present
evidence satisfactory to the commission that the existing
development entitlements on the territory are vested or are already
at build-out, and are consistent with the city’s general plan.
However, the commission shall not specify how, or in what
manner, the territory shall be prezoned.

(8) (A) Except for those changes of organization or
reorganization authorized under Section 56375.3, and except as
provided by subparagraph (B), a commission shall not approve an
annexation to a city or to a qualified special district of any territory
greater than 10 acres, or as determined by commission policy,
where there exists a disadvantaged unincorporated community that
is contiguous to the area of proposed annexation, unless an
application to annex the disadvantaged unincorporated community
to the subject city has been filed with the executive officer.

(B) An application to annex a contiguous disadvantaged
community shall not be required if either of the following apply:

(i) A prior application for annexation of the same disadvantaged
community has been made in the preceding five years.

(ii) The commission finds, based upon written evidence, that a
majority of the registered voters within the affected disadvantaged
unincorporated community are opposed to annexation.

(C) For purposes of this paragraph, “a qualified special district”
means a special district with more than 500 service connections
that provides drinking water or wastewater services.

(b) With regard to a proposal for annexation or detachment of
territory to, or from, a city or district or with regard to a proposal
for reorganization that includes annexation or detachment, to
determine whether territory proposed for annexation or detachment,
as described in its resolution approving the annexation, detachment,
or reorganization, is inhabited or uninhabited.

(c) With regard to a proposal for consolidation of two or more
cities or districts, to determine which city or district shall be the
consolidated successor city or district.

(d) To approve the annexation of unincorporated, noncontiguous
territory, subject to the limitations of Section 56742, located in the
same county as that in which the city is located, and that is owned
by a city and used for municipal purposes and to authorize the
annexation of the territory without notice and hearing.

(e) To approve the annexation of unincorporated territory
consistent with the planned and probable use of the property based
upon the review of general plan and prezoning designations. No
subsequent change may be made to the general plan for the annexed
territory or zoning that is not in conformance to the prezoning
designations for a period of two years after the completion of the
annexation, unless the legislative body for the city makes a finding
at a public hearing that a substantial change has occurred in
circumstances that necessitate a departure from the prezoning in
the application to the commission.

(f) With respect to the incorporation of a new city or the
formation of a new special district, to determine the number of
registered voters residing within the proposed city or special district
or, for a landowner-voter special district, the number of owners
of land and the assessed value of their land within the territory
proposed to be included in the new special district. The number
of registered voters shall be calculated as of the time of the last
report of voter registration by the county elections official to the
Secretary of State prior to the date the first signature was affixed
to the petition. The executive officer shall notify the petitioners of
the number of registered voters resulting from this calculation.
The assessed value of the land within the territory proposed to be
included in a new landowner-voter special district shall be
calculated as shown on the last equalized assessment roll.

(g) To adopt written procedures for the evaluation of proposals,
including written definitions consistent with existing state law.
The commission may adopt standards for any of the factors
enumerated in Section 56668. Any standards adopted by the
commission shall be written.

(h) To adopt standards and procedures for the evaluation of
service plans submitted pursuant to Section 56653 and the initiation
of a change of organization or reorganization pursuant to
subdivision (a).

(i) To make and enforce regulations for the orderly and fair
conduct of hearings by the commission.

(j) To incur usual and necessary expenses for the
accomplishment of its functions.

(k) To appoint and assign staff personnel and to employ or
contract for professional or consulting services to carry out and
effect the functions of the commission.

(l) To review the boundaries of the territory involved in any
proposal with respect to the definiteness and certainty of those
boundaries, the nonconformance of proposed boundaries with lines
of assessment or ownership, and other similar matters affecting
the proposed boundaries.

(m) To waive the restrictions of Section 56744 if it finds that
the application of the restrictions would be detrimental to the
orderly development of the community and that the area that would
be enclosed by the annexation or incorporation is so located that
it cannot reasonably be annexed to another city or incorporated as
a new city.

(n) To waive the application of Section 22613 of the Streets and
Highways Code if it finds the application would deprive an area
of a service needed to ensure the health, safety, or welfare of the
residents of the area and if it finds that the waiver would not affect
the ability of a city to provide any service. However, within 60
days of the inclusion of the territory within the city, the legislative
body may adopt a resolution nullifying the waiver.

(o) If the proposal includes the incorporation of a city, as defined
in Section 56043, or the formation of a district, as defined in
Section 2215 of the Revenue and Taxation Code, the commission
shall determine the property tax revenue to be exchanged by the
affected local agencies pursuant to Section 56810.

(p) To authorize a city or district to provide new or extended
services outside its jurisdictional boundaries pursuant to Section
56133.

(q) To enter into an agreement with the commission for an
adjoining county for the purpose of determining procedures for
the consideration of proposals that may affect the adjoining county
or where the jurisdiction of an affected agency crosses the boundary
of the adjoining county.

(r) To approve with or without amendment, wholly, partially,
or conditionally, or disapprove pursuant to this section the
annexation of territory served by a mutual water company formed
pursuant to Part 7 (commencing with Section 14300) of Division
3 of Title 1 of the Corporations Code that operates a public water
system to a city or special district. Any annexation approved in
accordance with this subdivision shall be subject to the state and
federal constitutional prohibitions against the taking of private
property without the payment of just compensation. This
subdivision shall not impair the authority of a public agency or
public utility to exercise eminent domain authority.

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begin insert SEC. end insert begin insert 2. end insert   

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begin insert Section 56378.5 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 56378.5. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Adequate wastewater services” means services sufficient
to meet residents’ health and safety needs.

(2) “Disadvantaged unincorporated community” means an
unincorporated area that is a disadvantaged community as defined
by Section 65302.10, or as determined by commission policy, that
constitutes all or a portion of a disadvantaged community as
defined by Section 79505.5 of the Water Code and that lacks safe
drinking water, as defined by subdivision (i) of Section 116681 of
the Health and Safety Code, or adequate wastewater services.

(b) (1) On or before January 1, 2018, and every five years
thereafter, the commission shall identify and determine the location
of any disadvantaged unincorporated community that is within or
adjacent to the sphere of influence of a city or special district by
using, at a minimum, data at the census block group level.

(2) On or before January 1, 2018 and every five years thereafter,
the commission shall review the adequacy and need for water and
wastewater services within disadvantaged unincorporated
communities identified pursuant to paragraph (1) in accordance
with the study prepared pursuant to Section 56378 or the service
review conducted pursuant to Section 56430. The analysis shall
consider, but is not limited to, the analysis prepared by a city or
county pursuant to paragraphs (2) and (3) of subdivision (b) of
Section 65302.10.

(c) On or before January 1, 2020, and every five years
thereafter, the commission shall adopt a written accessibility plan
after a noticed hearing. The written accessibility shall identify
opportunities and strategies to address any existing service
inefficiencies or needs within the any community identified
pursuant to paragraph (1) of subdivision (b). The accessibility
plan may include information and actions identified by a city or
county pursuant to paragraphs (2) and (3) of subdivision (b) of
Section 65302.10. The accessibility plan shall contain, but is not
limited to, statements that address all of the following factors:

(1) The local agency best positioned to provide the subject water
and or wastewater services to the affected territory.

(2) Any actions and alternatives necessary to be taken by the
commission, if any, to enable the local agency identified in
paragraph (1) to provide services to the affected territory.

(3) The actions to be taken by any local agency that the
commission believes is necessary to establish services to the
disadvantaged unincorporated community.

(4) Any related consideration, as deemed relevant by the
commission, required to establish public water or wastewater
services to the affected disadvantaged unincorporated community
with respect to the commission’s regional growth management
responsibilities pursuant to Section 56301.

(5) An analysis of costs and benefits for residents in each
affected territory.

(6) A written analysis demonstrating that a majority of residents
do not oppose the reorganization, service extension or other action
anticipated in the accessibility plan.

(7) An analysis of local, state, and federal funding sources
available to implement the accessibility plan

(8) An identification, based on substantial evidence, of any
disadvantaged unincorporated community for which there is no
technically or economically feasible way of connecting to an
existing system through annexation or service extension. These
findings shall not interfere with or inform other programs or
policies designed to expand basic services to disadvantaged
unincorporated communities, including, but not limited to, Article
9 (commencing with Sections 116680) of Chapter 4 of Part 12 of
Division 104 of the Health and Safety Code.

(d) Costs and fees for services provided to the affected territory
through implementation of the accessibility plan shall not exceed
costs and fees charged to existing water and wastewater system
customers of the applicable service provider.

(e) On or before January 1, 2018, the commission shall file a
map of the county that identifies disadvantaged unincorporated
communities that lack safe drinking water or adequate wastewater
along with the adopted accessibility plan prepared pursuant to
subdivision (c) in electronic format with the Office of Planning
and Research. Maps and adopted accessibility plans addressing
disadvantaged unincorporated communities that lack safe drinking
water shall also be provided to the State Water Resources Control
Board, and those lacking adequate wastewater shall be provided
to the State Water Resources Control Board and any affected
regional water quality control board. All maps shall be made
available on the Office of Planning and Research’s and State Water
Resources Control Board’s Internet Web sites.

(f) Within two years of the adoption of an accessibility plan
pursuant to subdivision (c), the commission shall hold a noticed
public hearing and review the status of every disadvantaged
unincorporated community that is subject to the accessibility plan.
If the commission determines that the service needs remain
unaddressed, the commission shall initiate a change of
organization or reorganization pursuant to this chapter.

(g) The commission shall hold the public hearing required
pursuant to subdivisions (c) and (f) in a place as close as feasible
to the affected areas. The commission shall provide a 30 day notice
of each hearing to the residents of any identified disadvantaged
unincorporated community and any other stakeholder including,
but not limited to, the State Water Resources Control Board, cities,
counties, and special districts. The hearing shall provide residents
of the disadvantaged unincorporated communities an opportunity
for public comment.

(h) Any actions taken to implement an adopted accessibility
plan pursuant tor this section shall not be subject to an election
or any protest proceedings, as defined in section 56069.5. The
commission shall not take action to implement an adopted
accessibility plan if the commission finds, based upon written
evidence, that a majority of the residents within the affected
territory are opposed to the recommended action.

(i) Any action taken by the commission pursuant to this section
shall include a condition requiring the sufficient completion, as
determined by the commission, of an engineering, funding, and
other related planning activity by the local agency necessary to
establish services to the affected territory.

(j) The commission shall be eligible for reimbursement by the
state for the initiation and implementation of and accessibility
plan pursuant to this section.

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begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

Section 56425 of the Government Code is amended
to read:

56425.  

(a) In order to carry out its purposes and responsibilities
for planning and shaping the logical and orderly development and
coordination of local governmental agencies subject to the
jurisdiction of the commission to advantageously provide for the
present and future needs of the county and its communities, the
commission shall develop and determine the sphere of influence
of each city and each special district, as defined by Section 56036,
within the county and enact policies designed to promote the logical
and orderly development of areas within or adjacent to the sphere.

(b) Prior to a city submitting an application to the commission
to update its sphere of influence, representatives from the city and
representatives from the county shall meet to discuss the proposed
new boundaries of the sphere and explore methods to reach
agreement on development standards and planning and zoning
requirements within the sphere to ensure that development within
the sphere occurs in a manner that reflects the concerns of the
affected city and is accomplished in a manner that promotes the
logical and orderly development of areas within the sphere. If an
agreement is reached between the city and county, the city shall
forward the agreement in writing to the commission, along with
the application to update the sphere of influence. The commission
shall consider and adopt a sphere of influence for the city consistent
with the policies adopted by the commission pursuant to this
section, and the commission shall give great weight to the
agreement to the extent that it is consistent with commission
policies in its final determination of the city sphere.

(c) If the commission’s final determination is consistent with
the agreement reached between the city and county pursuant to
subdivision (b), the agreement shall be adopted by both the city
and county after a noticed public hearing. Once the agreement has
been adopted by the affected local agencies and their respective
general plans reflect that agreement, then any development
approved by the county within the sphere shall be consistent with
the terms of that agreement.

(d) If no agreement is reached pursuant to subdivision (b), the
application may be submitted to the commission and the
commission shall consider a sphere of influence for the city
consistent with the policies adopted by the commission pursuant
to this section.

(e) In determining the sphere of influence of each local agency,
the commission shall consider and prepare a written statement of
its determinations with respect to each of the following:

(1) The present and planned land uses in the area, including
agricultural and open-space lands.

(2) The present and probable need for public facilities and
services in the area.

(3) The present capacity of public facilities and adequacy of
public services that the agency provides or is authorized to provide.

(4) The existence of any social or economic communities of
interest in the area if the commission determines that they are
relevant to the agency.

(5) For an update of a sphere of influence of a city or special
district that provides public facilities or services related to sewers,
municipal and industrial water, or structural fire protection, that
occurs pursuant to subdivision (g) on or after July 1, 2012, the
present and probable need for those public facilities and services
of any disadvantaged unincorporated communities within or
adjacent to the existing sphere of influence.

(f) Upon determination of a sphere of influence, the commission
shall adopt that sphere.

(g) On or before January 1, 2008, and every five years thereafter,
the commission shall, as necessary, review and update each sphere
of influence.

(h) In determining a sphere of influence, the commission may
assess the feasibility of governmental reorganization of particular
agencies and recommend reorganization of those agencies when
reorganization is found to be feasible and if reorganization will
further the goals of orderly development and efficient and
affordable service delivery. The commission shall make all
reasonable efforts to ensure wide public dissemination of the
recommendations.

(i) When adopting, amending, or updating a sphere of influence
for a special district, the commission shall establish the nature,
location, and extent of any functions or classes of services provided
by existing districts.

(j) When adopting, amending, or updating a sphere of influence
for a special district, the commission may require existing districts
to file written statements with the commission specifying the
functions or classes of services provided by those districts.

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(k) The commission shall not approve a sphere of influence
update that removes a disadvantaged community from a city or a
special district unless the commission makes a finding, based on
written evidence, that the removal of the disadvantaged community
will result in improved service delivery to the community.

end delete

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

Section 56430 of the Government Code is amended
to read:

56430.  

(a) In order to prepare and to update spheres of
influence in accordance with Section 56425, the commission shall
conduct a service review of the municipal services provided in the
county or other appropriate area designated by the commission.
The commission shall include in the area designated for service
review the county, the region, the subregion, or any other
geographic area as is appropriate for an analysis of the service or
services to be reviewed, and shall prepare a written statement of
its determinations with respect to each of the following:

(1) Growth and population projections for the affected area.

(2) The location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere
of influence.

(3) Present and planned capacity of public facilities, adequacy
of public services, and infrastructure needs or deficiencies including
needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere
of influence.

(4) Financial ability of agencies to provide services.

(5) Status of, and opportunities for, shared facilities.

(6) Accountability for community service needs, including
governmental structure and operational efficiencies.

(7) Any other matter related to effective or efficient service
delivery, as required by commission policy.

(b) In conducting a service review, the commission shall
comprehensively review all of the agencies that provide the
identified service or services within the designated geographic
area. Where there exists a disadvantaged unincorporated
community that lacks adequate drinking water and wastewater
services and infrastructure within or contiguous with the subject
sphere, the commission shall assess various alternatives for
improving efficiency and affordability of drinking water or
wastewater infrastructure and service delivery within and
contiguous to the sphere of influence, including, but not limited
to, the consolidation of governmental agencies or the extension of
services, or both.

(c) In conducting a service review, the commission shall include
a review of whether the agencies under review, including any
public water system as defined in Section 116275 of the Health
and Safety Code, are in compliance with the California Safe
Drinking Water Act (Chapter 4 (commencing with Section 116270)
of Part 12 of Division 104 of the Health and Safety Code) if the
information is available from the State Water Resources Control
Board or other sources. A public water system may satisfy any
request for information as to compliance with that act by
submission of the consumer confidence or water quality report
prepared by the public water system as provided by Section 116470
of the Health and Safety Code.

(d) The commission may request information, as part of a service
review under this section, from identified public or private entities
that provide wholesale or retail supply of drinking water, including
mutual water companies formed pursuant to Part 7 (commencing
with Section 14300) of Division 3 of Title 1 of the Corporations
Code, and private utilities, as defined in Section 1502 of the Public
Utilities Code.

(e)  begin delete (1) end delete begin delete   end delete The commission shall conduct a service review before,
or in conjunction with, but no later than the time it is considering
an action to establish a sphere of influence in accordance with
Section 56425 or 56426.5 or to update a sphere of influence
pursuant to Section 56425.

begin delete

(2) On or before January 1, 2022, and every five years thereafter,
the commission shall conduct service reviews sufficient to have
reviewed the entire territory of the county.

(f) The commission shall file a map of the county that identifies
disadvantaged unincorporated communities that lack safe drinking
water or adequate wastewater in electronic format with the Office
of Planning and Research. The Office of Planning and Research
shall make the map available on its Internet Web site.

(g) (1) Within two years of identification of a disadvantaged
unincorporated community that lacks safe drinking water or
adequate wastewater services pursuant to this section, the
commission shall recommend a plan based on the alternatives
analyzed and shall adopt any actions necessary to implement the
plan, including sphere of influence updates, extensions of service,
or changes of organization.

(2) Actions taken to adopt a plan under this subdivision shall
not be subject to an election or any protest proceedings, as defined
in Section 56069.5, except that the commission shall conduct
protest proceedings for residents of the disadvantaged community.

(3) The commission shall not be required to adopt or implement
a plan if the commission finds, based on substantial evidence, that
there is no technical or economically feasible way of connecting
the disadvantaged unincorporated community to an existing system,
considering any financial assistance available from the State Water
Resources Control Board or any other applicable source of financial
assistance. These findings shall not interfere with or inform other
programs or policies designed to expand basic services to
disadvantaged unincorporated communities, including, but not
limited to, Sections 116680 to 116684, inclusive, of the Health
and Safety Code.

(h) (1) Notwithstanding Section 56133, 56133.5, or 56375, on
and after January 1, 2022, a commission shall not change the sphere
of influence of, or authorize extension of services by, a qualifying
city or special district if the commission has not done one of the
following:

(A) Conducted the analysis required by this section.

(B) Adopted a plan or taken the actions required by subdivision
(g).

(2) Notwithstanding Section 56133, 56133.5, or 56375, a
commission shall not change the sphere of influence of, or
authorize an extension of services by, a qualifying city or special
district if the city or special district has been designated in a plan
developed pursuant to subdivision (g) to provide water or
wastewater services and the city or special district has not begun
providing water or wastewater service, as identified by the
commission’s plan, within three years of being designated in the
plan.

(3) The prohibition against a change to a sphere of influence or
extension of service pursuant to paragraphs (1) and (2) shall not
apply to either of the following:

(A) An application to extend services to, or include in their
sphere of influence, a disadvantaged unincorporated community.

(B) An extension of service authorized pursuant to subdivision
(c) of Section 56133.

(i) As used in this section, “a qualifying city or special district”
means a city or special district that provides water service or
wastewater services and serves 500 or more connections.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 56653 of the end insert begin insert Government Code end insert begin insert , as amended
by Section 2 of Chapter 784 of the Statutes of 2014, is amended
to read: end insert

56653.  

(a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant shall
submit a plan for providing services within the affected territory.

(b) The plan for providing services shall include all of the
following information and any additional information required by
the commission or the executive officer:

(1) An enumeration and description of the services begin insert currently
provided or end insert to be extended to the affected territory.

(2) The level and range of those services.

(3) An indication of when those services can feasibly be
extended to the affected begin delete territory. end delete begin insert territory, if new services are
proposed. end insert

(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local agency
would impose or require within the affected territory if the change
of organization or reorganization is completed.

(5) Information with respect to how those services will be
financed.

(c) (1) In the case of a change of organization or reorganization
initiated by a local agency that includes a disadvantaged,
unincorporated community as defined in Section 56033.5, a local
agency may include in its resolution of application for change of
organization or reorganization an annexation development plan
adopted pursuant to Section 99.3 of the Revenue and Taxation
Code to improve or upgrade structures, roads, sewer or water
facilities, or other infrastructure to serve the disadvantaged,
unincorporated community through the formation of a special
district or reorganization of one or more existing special districts
with the consent of each special district’s governing body.

(2) The annexation development plan submitted pursuant to this
subdivision shall include information that demonstrates that the
formation or reorganization of the special district will provide all
of the following:

(A) The necessary financial resources to improve or upgrade
structures, roads, sewer, or water facilities or other infrastructure.
The annexation development plan shall also clarify the local entity
that shall be responsible for the delivery and maintenance of the
services identified in the application.

(B) An estimated timeframe for constructing and delivering the
services identified in the application.

(C) The governance, oversight, and long-term maintenance of
the services identified in the application after the initial costs are
recouped and the tax increment financing terminates.

(3) If a local agency includes an annexation development plan
pursuant to this subdivision, a local agency formation commission
may approve the proposal for a change of organization or
reorganization to include the formation of a special district or
reorganization of a special district with the special district’s
consent, including, but not limited to, a community services district,
municipal water district, or sanitary district, to provide financing
to improve or upgrade structures, roads, sewer or water facilities,
or other infrastructure to serve the disadvantaged, unincorporated
community, in conformity with the requirements of the principal
act of the district proposed to be formed and all required formation
proceedings.

(4) Pursuant to Section 56881, the commission shall include in
its resolution making determinations a description of the annexation
development plan, including, but not limited to, an explanation of
the proposed financing mechanism adopted pursuant to Section
99.3 of the Revenue and Taxation Code, including, but not limited
to, any planned debt issuance associated with that annexation
development plan.

(d) This section shall not preclude a local agency formation
commission from considering any other options or exercising its
powers under Section 56375.

(e) This section shall remain in effect only until January 1, 2025,
and as of that date is repealed.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 56653 of the end insert begin insert Government Code end insert begin insert , as added by
Section 3 of Chapter 784 of the Statutes of 2014, is amended to
read: end insert

56653.  

(a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant shall
submit a plan for providing services within the affected territory.

(b) The plan for providing services shall include all of the
following information and any additional information required by
the commission or the executive officer:

(1) An enumeration and description of the services begin insert currently
provided or end insert to be extended to the affected territory.

(2) The level and range of those services.

(3) An indication of when those services can feasibly be
extended to the affected begin delete territory. end delete begin insert territory, if new services are
proposed. end insert

(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local agency
would impose or require within the affected territory if the change
of organization or reorganization is completed.

(5) Information with respect to how those services will be
financed.

(c) This section shall become operative on January 1, 2025.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 65302.10 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

65302.10.  

(a) As used in this section, the following terms shall
have the following meanings:

(1) “Community” means an inhabited area within a city or
county that is comprised of no less than 10 dwellings adjacent or
in close proximity to one another.

(2) “Disadvantaged unincorporated community” means a fringe,
island, or legacy community in which the median household
income is 80 percent or less than the statewide median household
income.

(3) “Fringe community” means any inhabited and
unincorporated territory that is within a city’s sphere of influence.

(4) “Island community” means any inhabited and unincorporated
territory that is surrounded or substantially surrounded by one or
more cities or by one or more cities and a county boundary or the
Pacific Ocean.

(5) “Legacy community” means a geographically isolated
community that is inhabited and has existed for at least 50 years.

(b) On or before the due date for the next adoption of its housing
element pursuant to Section 65588, each city or county shall review
and update the land use element of its general plan, based on
available data, including, but not limited to, the data and analysis
developed pursuant to begin delete Section end delete begin insert Sections 56378.5 and end insert 56430, of
unincorporated island, fringe, or legacy communities inside or
near its boundaries. The updated land use element shall include
all of the following:

(1) In the case of a city, an identification of each island or fringe
community within the city’s sphere of influence that is a
disadvantaged unincorporated community. In the case of a county,
an identification of each legacy community within the boundaries
of the county that is a disadvantaged unincorporated community,
but not including any area within the sphere of influence of any
city. This identification shall include a description of the
community and a map designating its location.

(2) For each identified community, an analysis of water,
wastewater, stormwater drainage, and structural fire protection
needs or deficiencies.

(3) An analysis, based on then existing available data, of benefit
assessment districts or other financing alternatives that could make
the extension of services to identified communities financially
feasible.

(c) On or before the due date for each subsequent revision of
its housing element pursuant to Section 65588, each city and county
shall review, and if necessary amend, its general plan to update
the analysis required by this section begin insert and by Sections 56378.5 and
56430 end insert .

begin insert

(d) On or before the due date for the each subsequent revision
of its housing element pursuant to Section 65588. each city and
county shall incorporate relevant components of the accessibility
plan developed pursuant to Section 56378.5 and the analysis
required by Section 56430 into its land use element.

end insert

begin delete SEC. 4. end delete

begin insert SEC. 8. end insert   

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.