BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                        Senator Patricia Wiggins, Chair


          BILL NO:  AB 1582                     HEARING:  6/17/09
          AUTHOR:  Local Government Committee   FISCAL:  No
          VERSION:  6/10/09                     CONSULTANT:  Detwiler

                       LOCAL AGENCY FORMATION COMMISSIONS

                                    Background 

          The Cortese-Knox-Hertzberg Local Government Reorganization  
          Act delegates the Legislature's power to control the  
          boundaries of cities and special districts to local agency  
          formation commissions (LAFCOs).  The courts call LAFCOs the  
          Legislature's watchdog over local boundary changes.

          As practitioners find problems with the  
          Cortese-Knox-Hertzberg Act, they ask for statutory  
          improvements.  The Assembly Local Government Committee  
          responds by authoring clean-up bills.  Last year's LAFCO  
          clean-up bill was AB 3047 (Assembly Local Government  
          Committee, 2008).


                                   Proposed Law  

          Assembly Bill 1582 makes six changes to the state laws  
          affecting local agency formation commissions (LAFCOs) and  
          local governments' boundaries.

          I.   Sphere of influence deadline for districts  .  LAFCOs  
          must adopt spheres of influence for all cities and special  
          districts.  A sphere of influence is a plan for the city or  
          special district's probable future boundaries and service  
          area.  When a LAFCO approves a city incorporation proposal,  
          the commission may determine the proposed new city's sphere  
          at the same time.  A LAFCO must determine a new city's  
          sphere within one year after incorporation (Government Code  
          56426.5, added by SB 1057, Davis, 1989).  The  
          Cortese-Knox-Hertzberg Act is silent on LAFCO's deadline  
          for determining the sphere of influence of a proposed new  
          special district.  Assembly Bill 1582 allows a LAFCO to  
          determine a proposed new special district's sphere of  
          influence at the same time the commission approves the  
          formation.  A LAFCO must determine a new special district's  
          sphere within one year after the district's formation. [See  




           
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          1 of the bill.]

          II.   Spheres of influence and Williamson Act land  .  The  
          Williamson Act allows landowners to sign voluntary  
          contracts that enforceably restrict their land to  
          agriculture, open space, and compatible uses.  A LAFCO  
          cannot approve a change to a sphere of influence of  
          Williamson Act contracted land if the city or special  
          district provides sewers, nonagricultural water, or streets  
          unless those facilities or services benefit the land uses  
          allowed under the Williamson Act contract and the landowner  
          consents (Government Code 56426.5, added by AB 2370,  
          Thomson, 2002).  LAFCOs note that the number of this code  
          section duplicates the number of the code section added by  
          the 1989 Davis bill.  Assembly Bill  1582 renumbers the  
          code section without substantive change. [2]

          III.   Landowner consent  .  If all of the landowners of the  
          affected territory apply to LAFCO for certain boundary  
          changes or if another government's application for certain  
          boundary changes has the written consent of all of the  
          landowners of the affected territory, a LAFCO can approve  
          or disapprove the proposal without notice, hearing, or  
          election.  In the case of legally uninhabited territory, a  
          LAFCO can waive the protest proceedings if all of the  
          landowners in the affected territory give their written  
          consent (Government Code 56663).  LAFCOs say that when the  
          affected territory includes land owned by railroad  
          companies, it's hard to get the railroads to pay attention  
          to these requests.  As a result, LAFCOs can't use the  
          expedited statutory procedures on otherwise  
          noncontroversial boundary changes.  Assembly Bill 1582  
          allows a LAFCO to waive the protest proceedings for  
          boundary changes affecting legally uninhabited territory if  
          a private railroad company does not submit written  
          opposition to the proposed waiver of protest proceedings.  
          [3]

          IV.   Protest petitions  .  If a LAFCO approves a proposed  
          boundary change for a city or special district, the  
          commission must hold a public hearing to count protests by  
          registered voters or landowners.  Depending on the amount  
          of protests, the proposed boundary change can go forward,  
          go forward subject to voter approval, or stop.  These  
          written protests must state whether the protest comes from  





           
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          a landowner or registered voter and contain identifying  
          information (Government Code 57051 & 57052).  The First  
          District Court of Appeals reviewed this language in  
          Citizens for Responsible Open Space v. San Mateo County  
          Local Agency Formation Commission (2008).  The Court  
          concluded that while there may be ambiguity, the  
          Legislature's intent was clear.  LAFCOs want the  
          Legislature to resolve the statutory ambiguity, effectively  
          codifying the Court's 2008 decision.  Assembly Bill 1582  
          requires protest petitions to contain the same information  
          that current law already requires for petitions that  
          initiate boundary changes. [4 & 5]

          V.   Incorporation elections  .  General law cities can elect  
          their city councils at-large (citywide), by districts (only  
          the voters in the district vote for the candidates), or  
          from districts (candidates must live in the district but  
          run citywide) (Government Code 34871).  When a LAFCO  
          approves of a proposal to incorporate a new city, the  
          commission's formal resolution must allow the voters to  
          decide whether future city councils will be elected by  
          district or at large (Government Code 57116).  LAFCOs note  
          that this statute ignores the opportunity to elect future  
          city councils from districts.  Assembly Bill 1582 adds  
          "from district" city council elections to the list of  
          choices that voters have when voting on city  
          incorporations. [6]

          VI.   Reorganization election costs  .  If the voters approve  
          a proposed reorganization (i.e., a collection of boundary  
          changes combined into a single proposal; Government Code  
          56073), state law tells the "affected local agencies" that  
          they must pay for the election costs (Government Code  
          57150).  In LAFCO parlance, "affected local agency" means  
          every city, county, or special district that contains the  
          affected territory (Government Code 56014).  LAFCOs say  
          that it's unfair to make the "affected local agencies" pay  
          for an election if their boundaries aren't the subject of  
          the reorganization.  LAFCOs want to limit the obligation to  
          pay to just those agencies whose boundaries are the subject  
          of the reorganization; in LAFCO dialect, the "subject  
          agencies" (Government Code 56077).   Assembly Bill 1582  
          shifts the responsibility to pay for a successful  
          reorganization from the affected local agencies to the  
          subject local agencies. [7]





           
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                                     Comment  

           Avoiding costs and controversies  .  Even the best written  
          statutes contain minor flaws.  When statutory problems  
          appear in the state law affecting LAFCOs, the Assembly  
          Local Government Committee avoids legislative costs by  
          combining several changes to the state laws into a single,  
          consensus bill.  By carefully reviewing each item with the  
          affected parties, the Committee also avoids controversy.   
          The changes made by AB 1582 don't raise statewide policy  
          questions.  They make this complex statute easier for  
          property owners, residents, and local officials to use.


                                 Assembly Actions  

          Assembly Local Government Committee:  7-0
          Assembly Floor:                    77-0


                         Support and Opposition  (6/11/09)
           
          Support  :  California Association of Local Agency Formation  
          Commissions.

           Opposition  :  Unknown.