BILL NUMBER: SB 819	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 2, 2007

INTRODUCED BY    Senator   Hollingsworth
  Senators   Hollingsworth   and Kehoe

    (   Coauthor:   Senator   Harman
  ) 
    (   Coauthor:   Assembly Member  
Caballero  ) 

                        FEBRUARY 23, 2007

   An act to amend Sections 56375 and 56826.5 of, and to amend and
repeal Sections 56030, 56700, and 56886.5, relating to local
government entities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 819, as amended, Hollingsworth. Local government:
consolidation.
   Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, establishes procedures for the
organization and reorganization of cities and special districts. With
respect to the consolidation of special districts, until January 1,
2005, the law required all of the districts to have been formed
pursuant to the same principal act. Existing law, until July 1, 2008,
permits the consolidation of 2 or more special districts not formed
pursuant to the same principal act if certain procedures are
followed.
   This bill would delete that July 1, 2008, expiration date on the
authorization to consolidate 2 or more special districts not formed
pursuant to the same principal act.
   Existing law sets forth the various powers and duties of a local
agency formation commission in reviewing and approving or
disapproving proposals for changes of organization or reorganization.
 A commission may only   Existing law
authorizes a commission to  initiate proposals for consolidation
of districts, dissolution, merger, establishment of a subsidiary
district, or a reorganization that includes any of those changes, and
only under specified circumstances.
   This bill would  add to those proposals that may be
initiated by a local agency formation commission the formation of a
new district or districts, or a reorganization that includes
  authorize a commission to initiate proposals for 
the formation of a new district or districts.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 56030 of the Government Code, as amended by
Section 1 of Chapter 471 of the Statutes of 2004, is amended to read:

   56030.  "Consolidation" means the uniting or joining of two or
more cities located in the same county into a single new successor
city or two or more districts into a single new successor district.
  SEC. 2.  Section 56030 of the Government Code, as added by Chapter
471 of the Statutes of 2004, is repealed.
  SEC. 3.  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) To review and approve or disapprove with or without amendment,
wholly, partially, or conditionally, proposals for changes of
organization or reorganization, consistent with written policies,
procedures, and guidelines adopted by the commission.  The
commission may initiate proposals for (1) consolidation of districts,
as defined in Section 56036, (2) dissolution, (3) merger, (4)
establishment of a subsidiary district, (5) formation of a new
district or districts, or (6) a reorganization that includes any of
these changes of organization. A commission shall have the authority
to initiate only a (1) consolidation of districts, (2)  
A commission shall have the authority to initiate only a (1)
consolidation of districts, as defined in Section 56036, (2) 
dissolution, (3) merger, (4) establishment of a subsidiary district,
(5) formation of a new district or districts, or (6) a reorganization
that includes any of these changes of organization, 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. However, a commission shall not
have the power to disapprove an annexation to a city, initiated by
resolution, of contiguous territory that the commission finds is any
of the following:
   (1) 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.
   (2) 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.
   (3) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.
   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.
   A commission shall not impose any conditions that would directly
regulate land use density or intensity, property development, or
subdivision requirements. 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 buildout,
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. 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.
   (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 not inconsistent 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.
   () 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 25210.90 or 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.
  SEC. 4.  Section 56700 of the Government Code, as amended by
Section 99 of Chapter 22 of the Statutes of 2005, is amended to read:

   56700.  (a) A proposal for a change of organization or a
reorganization may be made by petition. The petition shall do all of
the following:
   (1) State that the proposal is made pursuant to this part.
   (2) State the nature of the proposal and list all proposed changes
of organization.
   (3) Set forth a description of the boundaries of affected
territory accompanied by a map showing the boundaries.
   (4) Set forth any proposed terms and conditions.
   (5) State the reason or reasons for the proposal.
   (6) State whether the petition is signed by registered voters or
owners of land.
   (7) Designate up to three persons as chief petitioners, setting
forth their names and mailing addresses.
   (8) Request that proceedings be taken for the proposal pursuant to
this part.
   (9) State whether the proposal is consistent with the sphere of
influence of any affected city or affected district.
   (b) A petition for a proposal for a change of organization or a
reorganization that includes the consolidation of two or more special
districts not formed pursuant to the same principal act, in addition
to the requirements set forth in subdivision (a), shall do either of
the following:
   (1) Designate the district that shall be the successor and specify
under which principal act the successor shall conduct itself.
   (2) State that the proposal requires the formation of a new
district and includes a plan for services prepared pursuant to
Section 56653.
  SEC. 5.  Section 56700 of the Government Code, as amended by
Section 100 of Chapter 22 of the Statutes of 2005, is repealed.
  SEC. 6.  Section 56826.5 of the Government Code is amended to read:

   56826.5.  (a) A proposal for reorganization that includes the
consolidation of two or more special districts not formed pursuant to
the same principal act shall only be approved by the commission if
both the following conditions are met:
   (1) The commission is able to designate a successor or successors,
or form a new district or districts, authorized by their respective
principal acts to deliver all of the services provided by the
consolidating districts at the time of consolidation.
   (2) The commission makes the determinations specified in
subdivision (b) of Section 56881.
   (b) If a proposal for reorganization that includes the
consolidation of two or more special districts not formed pursuant to
the same principal act is initiated by the commission pursuant to
subdivision (a) of Section 56375, it shall only be approved if the
commission has prepared a study pursuant to Section 56378 or the
written statement of determinations specified in subdivision (a) of
Section 56430, and all of the following conditions are met:
   (1) Each of the services provided by the districts subject to the
proposal will be provided by a successor or successors, or by the
formation of a new district authorized under a principal act to
deliver the services. The commission may designate a successor other
than the districts subject to the proposal only if the successor is
currently providing the same service provided by one or more of the
districts subject to the proposal. The commission shall not designate
a city as a successor unless the city contains 70 percent or more of
the area of land within one of the districts subject to the
proposal, or the combined territory of two or more of the districts
subject to the proposal, within its boundaries, and 70 percent or
more of the number of registered voters of the district or the
combined districts who reside within the boundaries of the city.
   (2) The public services costs of the proposal that the commission
is authorizing are likely to be less than or substantially similar to
the costs of alternative means of providing the service.
   (3) The proposal that the commission is approving promotes public
access and accountability for community services needs and financial
resources.
  SEC. 7.  Section 56886.5 of the Government Code, as amended by
Section 4 of Chapter 471 of the Statutes of 2004, is amended to read:

   56886.5.  (a) If a proposal includes the formation of a district
or the incorporation of a city, the commission shall determine
whether existing agencies can feasibly provide the needed service or
services in a more efficient and accountable manner. If a new
single-purpose local agency is deemed necessary, the commission shall
consider reorganization with other single-purpose local agencies
that provide related services.
   (b) If a proposal includes the consolidation of two or more
special districts not formed pursuant to the same principal act, the
commission shall determine whether any service provided at that time
could be discontinued due to a lack of authority under the principal
act of the successor. If a new single-purpose local agency is deemed
necessary to provide the needed service or services, the commission
shall consider the formation of a new district that is authorized to
provide the service or services.
  SEC. 8.  Section 56886.5 of the Government Code, as added by
Chapter 471 of the Statutes of 2004, is repealed.