BILL NUMBER: AB 853 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2010
AMENDED IN ASSEMBLY MAY 18, 2009
AMENDED IN ASSEMBLY MAY 5, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Member Arambula
FEBRUARY 26, 2009
An act to amend Section 56425 of, and to add Sections
56375.6 and 56375.7 to 56435 to, the
Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 853, as amended, Arambula. Local government: organization.
The
(1) The Cortese-Knox-Hertzberg
Act of 2000 governs the organization and reorganization of local
governmental entities, including, among other things, the annexation
of island territories to a city or county.
This bill would provide procedures for annexing unincorporated
fringe communities and unincorporated island communities, as defined,
to a city under specified circumstances , including
provisions for a revenue neutrality agreement between the affected
local government entities .
(2) The Cortese-Knox-Hertzberg Act of 2000 requires a local agency
formation commission to develop and determine the sphere of
influence of each local governmental agency within the county and to
enact policies designed to promote the logical and orderly
development of areas within the sphere, and requires the commission,
in determining the sphere of influence of each local agency, to
consider and prepare a written statement of its determination with
respect to the present and planned land uses in the area, the present
and probable need for public facilities and services in the area,
the present capacity of public facilities and adequacy of public
services that the agency provides or is authorized to provide, and
the existence of any social or economic communities of interest in
the area, as specified.
This bill would also require the commission to adopt a
comprehensive plan to address infrastructure deficiencies for
unincorporated fringe communities, unincorporated island communities,
and unincorporated legacy communities, as defined, and would require
the commission to prepare a written statement of its determinations
with respect to the existence of that comprehensive plan with regard
to the commission's determination of spheres of influence, thereby
imposing a state-mandated local program. The bill would also prohibit
a commission from approving a change to a sphere of influence unless
all relevant agencies are in compliance with the comprehensive plan.
(3) 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 no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 56375.6 is added to the Government Code, to
read:
56375.6. (a) As used in this section, the following terms have
the following meanings:
(1) "Unincorporated fringe community" means any inhabited
unincorporated territory that is within 1.5 miles of a city or
within or adjacent to a city's sphere of influence.
(2) "Unincorporated island community" means any inhabited
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.
(3) "Disadvantaged community" means a community with an annual
median household income that is less than 80 percent of the statewide
annual median household income. Income evidence may be provided by a
community household survey.
(b) The board of supervisors shall petition the commission in the
board's county to approve the annexation to a city of any
island unincorporated island community or
unincorporated fringe community after notice and hearing if all
of the following conditions exist:
(1) Twenty-five percent of the registered voters or landowners in
the unincorporated fringe community or unincorporated island
community file a petition with the board to initiate an annexation of
that community to a municipality.
(2) The territory contained in the annexation petition constitutes
an island unincorporated island community
or constitutes an unincorporated fringe community that
lacks has infrastructure deficiencies, such as
lacking wastewater, drinking water services, storm drainage,
paved streets, sidewalks, or streetlights, or there exists a serious
infrastructure-related health hazard.
(3) The territory that is the subject of the annexation petition
constitutes a disadvantaged community , as defined by
Section 79505.5 of the Water Code . Income evidence may be
provided by a community household survey.
(c) Notwithstanding any other provision of law, within 180 days of
a petition being mailed pursuant to subdivision (b), a separate
property tax transfer agreement shall be agreed to between the
annexing city and the county pursuant to Section 99 of the Revenue
and Taxation Code. If an agreement is not made within 180 days, a
property tax transfer agreement shall be determined pursuant to
Section 56375.7. That agreement shall not affect any existing master
tax sharing agreement between the city and county.
(d) The commission shall approve, after notice and hearing, the
annexation, and as needed, the change of organization or
reorganization of a city, subject to subdivision (a) of Section
57080, unless the commission finds, based on the preponderance of
evidence, that the change in reorganization will not result in a net
benefit to the public health of the affected communities. The
financial impact of the annexation shall not be a factor in this
determination.
(e) Subject to the commission's approval of an annexation under
this subdivision, no affected special district shall have the
authority to terminate the annexation.
(f) Subject to the commission's approval of an annexation under
this subdivision, the city shall amend its general plan to ensure
that the annexation conforms with the municipality's general plan.
SEC. 2. Section 56375.7 is added to the
Government Code, to read:
56375.7. (a) The commission shall determine a revenue neutrality
agreement, including the amount of property tax revenue to be
exchanged by the affected local agency pursuant to this section. The
commission shall notify the county auditor of the proposal and the
services that the annexing city will assume within the territory to
be annexed and identify for the auditor the existing service
providers within the area subject to the proposal.
(b) If the proposal would not transfer all of an affected agency's
service responsibilities to the proposed city, the commission and
the county auditor shall do all of the following:
(1) The county auditor shall determine the proportion that the
amount of property tax revenue derived by each affected local agency
pursuant to subdivision (b) of Section 93 of the Revenue and Taxation
Code bears to the total amount of revenue from all sources,
available for general purposes, received by each affected local
agency in the prior fiscal year. For purposes of making this
determination and the determination required by paragraph (3), "total
amount of revenue from all sources available for general purposes"
means the total amount of revenue which an affected local agency may
use on a discretionary basis for any purpose and does not include any
of the following:
(A) Revenue which, by statute, is required to be used for a
specific purpose.
(B) Revenue from fees, charges, or assessments which are levied to
specifically offset the cost of particular services and do not
exceed the cost reasonably borne in providing these services.
(C) Revenue received from the federal government which is required
to be used for a specific purpose.
(2) The commission shall determine, based on information submitted
by each affected local agency, an amount equal to the total net cost
to each affected local agency during the prior fiscal year of
providing those services that the annexing city will assume within
the area subject to the proposal, including the cost of connecting
residents to wastewater or drinking water services.
For purposes of this paragraph, "total net cost" means the total
direct and indirect costs that were funded by general purpose
revenues of the affected local agency and excludes any portion of the
total cost that was funded by any revenues of that agency that are
specified in subparagraphs (A), (B), and (C) of paragraph (1).
(3) The commission shall multiply the amount determined pursuant
to paragraph (2) for each affected local agency by the corresponding
proportion determined pursuant to paragraph (1) to derive the amount
of property tax revenue used to provide services by each affected
local agency during the prior fiscal year within the area subject to
the proposal. The county auditor shall adjust the amount described in
the previous sentence by the annual tax increment according to the
procedures set forth in Chapter 6 (commencing with Section 95) of
Part 0.5 of Division 1 of the Revenue and Taxation Code, to the
fiscal year in which the new city or district receives its initial
allocation of property taxes.
(4) For purposes of this subdivision, in any county in which,
prior to the adoption of Article XIII A of the California
Constitution, and continuing thereafter, a separate fund or funds
were established consisting of revenues derived from the
unincorporated area of the county and from which fund or funds
services rendered in the unincorporated area have been paid, the
amount of property tax revenues derived pursuant to paragraph (3),
may, at the discretion of the commission, be transferred to the
annexing city over a period not to exceed 12 fiscal years following
the annexation. In determining whether the transfer of the amount of
property tax revenues determined pursuant to paragraph (3) shall
occur entirely within the fiscal year immediately following the
annexation or shall be phased in over a period not to exceed 12 full
fiscal years following the annexation, the commission shall consider
each of the following:
(A) The total amount of revenue from all sources available to the
annexing city.
(B) The fiscal impact of the proposed transfer on the transferring
agency.
(C) Any other relevant facts which interested parties to the
exchange may present to the commission in written form.
The decision of the commission shall be supported by written
findings setting forth the basis for its decision.
(c) If the proposal would transfer all of an affected agency's
service responsibilities to the annexing city, the commission shall
request the auditor to determine the property tax revenue generated
for the affected service providers by tax rate area, or portion
thereof, and transmit that information to the commission.
(d) The executive officer shall notify the auditor of the amount
determined pursuant to paragraph (3) of subdivision (b) or
subdivision (c), as the case may be, and, where applicable, the
period of time within which and the procedure by which the transfer
of property tax revenues will be effected pursuant to paragraph (4)
of subdivision (b), at the time the executive officer records a
certificate of completion pursuant to Section 57203 for any proposal
described in subdivision (a), and the auditor shall transfer that
amount to the new jurisdiction.
(e) An action brought by a city or district to contest any
determinations of the county auditor or the commission with regard to
the amount of property tax revenue to be exchanged by the affected
local agency pursuant to this section shall be commenced within three
years of the effective date of the annexation.
SEC. 2. 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 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 local governmental agency within the
county and enact policies designed to promote the logical and orderly
development of areas within 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) The existence of a comprehensive plan adopted pursuant to
Section 56435 and local agency compliance with that plan, if
applicable.
(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 , as necessary, each sphere of influence.
(h) The commission may recommend governmental reorganizations to
particular agencies in the county, using the spheres of influence as
the basis for those recommendations. Those recommendations shall be
made available, upon request, to other agencies or to the public. 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 do all of the following:
(1) Require existing districts to file written statements with the
commission specifying the functions or classes of services provided
by those districts.
(2) Establish the nature, location, and extent of any functions or
classes of services provided by existing districts.
(3) The commission shall not approve any change to a sphere of
influence unless all relevant local agencies are in compliance with
Section 56435.
SEC. 3. Section 56435 is added to the
Government Code , to read:
56435. (a) As used in this section, the following terms have the
following meanings:
(1) "Unincorporated fringe community" means any inhabited
unincorporated territory that meets all of the following conditions:
(A) The community is within 1.5 miles of a city or within or
adjacent to a city's sphere of influence.
(B) The community has infrastructure deficiencies, such as lacking
wastewater, drinking water services, storm drainage, paved streets,
or there exists a serious infrastructure-related health hazard.
(C) The community constitutes a disadvantaged community.
(2) "Disadvantaged community" means a community with an annual
median household income that is less than 80 percent of the statewide
annual median household income. Income evidence may be provided by a
community household survey.
(3) "Unincorporated island community" means any inhabited
unincorporated territory that meets all of the following conditions:
(A) The community is surrounded or substantially surrounded by one
or more cities or by one or more cities and a county boundary or the
Pacific Ocean.
(B) The community has infrastructure deficiencies, such as lacking
wastewater, drinking water services, storm drainage, paved streets,
or there exists a serious infrastructure-related health hazard.
(C) The community constitutes a disadvantaged community.
(4) "Unincorporated legacy community" means any inhabited
unincorporated territory that meets all of the following conditions:
(A) The community is more than 1.5 miles from a city and not
adjacent to a city's sphere of influence.
(B) The community has infrastructure deficiencies, such as lacking
wastewater, drinking water services, storm drainage, paved streets,
or there exists a serious infrastructure-related health hazard.
(C) The community constitutes a disadvantaged community.
(b) The commission shall adopt a comprehensive plan to address
infrastructure deficiencies for unincorporated fringe communities,
unincorporated island communities, and unincorporated legacy
communities.
(1) The comprehensive plan must include a feasibility analysis
that includes at least one of the following:
(A) Extension of municipal services.
(B) Annexation.
(C) Consolidation of agencies.
(D) Other actions within the commission's authority.
(2) The comprehensive plan shall include potential federal, state
or local funding sources, including, but not limited to, community
development block grants, redevelopment funds, the Clean Water State
Revolving Fund, and the Safe Drinking Water Revolving Fund. For any
single infrastructure category, the plan shall not include an
assessment for capital costs levied on residents of a disadvantaged
community that exceeds 1.5 percent of the median household income in
that community.
(3) The comprehensive plan shall include a timeline for each
action.
(4) The relevant local agencies shall be consulted by the
commission and may provide guidance or comments prior to the adoption
of the plan.
(5) The comprehensive plan may be developed using the process
described in subdivisions (b) and (c) of Section 56425.
(c) The comprehensive plan shall be adopted concurrent with the
commission's review pursuant to subdivision (g) of Section 56425, or
prior to acting on any request pursuant to Section 56428, whichever
occurs first.
(d) All local agencies identified in a comprehensive plan shall
comply with the adopted actions and timelines of the commission. A
local agency may present a challenge to the comprehensive plan, as it
relates to that local agency, to the commission. The commission
shall adopt a written response to that challenge within 90 days.
(e) The commission shall not approve an annexation to a city if
that city is not in compliance with a comprehensive plan action
related to a community that lacks wastewater or drinking water
services constituting a serious public health hazard.
SEC. 4. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.