BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 819|
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THIRD READING
Bill No: SB 819
Author: Hollingsworth (R), et al
Amended: 5/15/07
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 5-0, 5/9/07
AYES: Negrete McLeod, Cox, Harman, Kehoe, Machado
SUBJECT : Local government: consolidation
SOURCE : California Association of Local Agency
Formation
Commissions
DIGEST : This bill deletes the July 1, 2008 sunset date
and makes permanent the statutory provisions that allow
local agency formation commissions (LAFCOs) to consolidate
and reorganize special districts that were not formed under
the same principal act. This bill allows LAFCOs to
initiate the formation of new special districts. This bill
exempts any application that the LAFCO of San Bernardino
County has accepted for filing before January 1, 2008.
ANALYSIS : The Cortese-Knox-Hertzberg Act controls how
local officials change the boundaries of cities and special
districts, putting LAFCOs in charge of the proceedings.
Besides annexations and detachments of territory, other
boundary changes affect special districts:
1.Formation: the creation of a new special district.
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2.Dissolution: the elimination of an existing special
district.
3.Merger: the district dissolves and a city takes over its
duties.
4.Subsidiary district: the district continues, but it is
governed by a city council.
5.Consolidation: two districts combine into a single
district.
6.Reorganization: two or more boundary changes go into a
single proposal.
Most boundary changes begin when a city or special district
applies to LAFCO, or when registered voters or landowners
file petitions with LAFCO. In limited circumstances, a
LAFCO can initiate some special district boundary changes:
consolidations, dissolutions, mergers, subsidiary
districts, or reorganizations [AB 1335 (Gotch), Chapter
1307, Statutes of 1993]. LAFCOs cannot initiate the
annexation of territory to special districts nor can they
initiate the formation of new special districts.
Until 2005, a LAFCO could approve the consolidation of
special districts only when the districts relied on the
same principal act. AB 2067 (Harman), Chapter 471,
Statutes of 2004, deleted the requirement until July 1,
2008, that special districts must have the same principal
act to be eligible for consolidation.
This bill deletes the July 1, 2008 sunset date and makes
permanent the statutory provisions that allow LAFCOs to
consolidate and reorganize special districts that were not
formed under the same principal act. This bill also allows
LAFCOs to initiate the formation of new special districts.
This bill provides that its provisions would not affect any
application for a change of organization or reorganization
that the San Bernardino County LAFCO has accepted for
filing before January 1, 2008.
NOTE: This bill was amended on May 15, 2007, to exempt any
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application for a change of organization or reorganization
that the San Bernardino County LAFCO has accepted for
filing before January 1, 2008. When the San Bernardino
Valley Municipal Water District applied to the San
Bernardino LAFCO for approval to consolidate with the San
Bernardino Valley Water Conservation District, there was
resistance and litigation. The Water Conservation
District's lawsuit to block the proposed consolidation has
not yet gone to trial. The San Bernardino litigation
appears to be the only lawsuit related to the consolidation
of dissimilar districts.
Background
Under existing law that will expire on July 1, 2008, a
petition filed with a LAFCO that proposes to consolidate
two special districts not formed under the same principal
act must either designate which district will be the
successor and identify its principal act, or state that the
proposal requires the formation of a new district and
includes a plan for services.
Also until July 1, 2008, if reorganization includes the
consolidation of two special districts not formed under the
same principal act, this bill allows a LAFCO to approve the
proposal only if two conditions are met:
1. The LAFCO must be able to designate one or more
successors or form one or more new districts that have
the powers of the consolidated districts.
2. The LAFCO must determine that the consolidation's public
service costs are likely to be less than or
substantially similar to the alternatives, and that the
boundary change promotes public access and
accountability.
Until 2008, if a LAFCO initiates a reorganization that
includes the consolidation of two special districts not
formed under the same principal act, LAFCO can approve the
reorganization only if the LAFCO has either prepared a
study of governmental agencies, or conducted a municipal
service review that includes nine written determinations.
In addition, the LAFCO must meet three conditions:
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1. All of the services provided by the districts before the
consolidation will be provided after the consolidation
by one or more successors or by a new district that has
the power to provide those services. The successor must
be currently providing the same service. The LAFCO
cannot designate a city as the successor unless the city
covers 70 percent or more of one of the districts or the
combined districts and 70 percent or more of the
district or districts' registered voters reside in the
city.
2. The consolidation's public service costs are likely to
be less than or substantially similar to the
alternatives.
3. The consolidation promotes public access and
accountability.
Also, until 2008, if a LAFCO intends to approve the
consolidation of two special districts not formed under the
same principal act, the LAFCO must determine whether any of
the districts' current services could be discontinued
because the successor lacks the statutory authority to
provide those services. In that case, the LAFCO must
consider forming a new special district.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/15/07)
California Association of Local Agency Formation
Commissions (source)
California Special Districts Association
Friant Water Authority
Irvine Ranch Water District
San Bernardino County LAFCO
San Bernardino Valley Municipal Water District
San Diego County LAFCO
Shasta County LAFCO
AGB:mw 5/16/07 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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