BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1582|
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                                    CONSENT


          Bill No:  AB 1582
          Author:   Assembly Local Government Committee
          Amended:  6/10/09 in Senate
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  5-0, 6/17/09
          AYES:  Wiggins, Cox, Aanestad, Kehoe, Wolk

           ASSEMBLY FLOOR  :  77-0, 5/21/09 (Consent) - See last page  
            for vote


           SUBJECT  :    Local agencies:  spheres of influence

           SOURCE  :     California Association of Local Agency  
          Formation 
                        Commissions


           DIGEST  :    This bill makes six changes to the state laws  
          affecting local agency formation commissions and local  
          governments boundaries.

           ANALYSIS  :    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  
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          improvements.  The Assembly Local Government Committee  
          responds by authoring cleanup bills.  Last year's LAFCO  
          cleanup bill was AB 3047 (Assembly Local Government  
          Committee), Chapter 68, Statutes of 2008.

          This bill makes six changes to the state laws affecting  
          LAFCOs and local governments' boundaries:

          1.  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 (Section 56426.5 of the Government Code,   
             added by SB 1057 (Davis), Chapter 1384, Statutes of  
             1989).  The Cortese-Knox-Hertzberg Act is silent on  
             LAFCO's deadline for determining the sphere of influence  
             of a proposed new special district.  This bill 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. 

          2.  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 (Section 56426.5 of the  
             Government Code, added by AB 2370 (Thomson), Chapter  
             614, Statutes of 2002).  LAFCOs note that the number of  
             this code section duplicates the number of the code  
             section added by the 1989 Davis bill.  This bill  
             renumbers the code section without substantive change. 

          3.  Landowner consent  .  If all of the landowners of the  







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             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 (Section 56663 of  
             the Government Code).  LAFCOs say that when the affected  
             territory includes land owned by railroad companies, it  
             is hard to get the railroads to pay attention to these  
             requests.  As a result, LAFCOs cannot use the expedited  
             statutory procedures on otherwise noncontroversial  
             boundary changes.  This bill 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.

          4.  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 a landowner or registered voter and contain  
             identifying information (Sections 57051 and 57052 of the  
             Government Code).  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.  This bill requires protest petitions to  
             contain the same information that current law already  
             requires for petitions that initiate boundary changes.

          5.  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  







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             the district but run citywide) (Section 34871 of the  
             Government Code).  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 (Section 57116 of the Government Code).  LAFCOs  
             note that this statute ignores the opportunity to elect  
             future city councils from districts.  This bill adds  
             "from district" city council elections to the list of  
             choices that voters have when voting on city  
             incorporations.

          6.  Reorganization election costs  .  If the voters approve a  
             proposed reorganization (i.e., a collection of boundary  
             changes combined into a single proposal; Section 56073  
             of the Government Code), state law tells the "affected  
             local agencies" that they must pay for the election  
             costs (Section 57150 of the Government Code).  In LAFCO  
             parlance, "affected local agency" means every city,  
             county, or special district that contains the affected  
             territory (Section 56014 of the Government Code).   
             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" (Section 56077 of  
             the Government Code).  This bill shifts the  
             responsibility to pay for a successful reorganization  
             from the affected local agencies to the subject local  
             agencies.

           Comment  
           
           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 this bill do not  
          raise statewide policy questions.  They make this complex  
          statute easier for property owners, residents, and local  
          officials to use.








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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/18/09)

          California Association of Local Agency Formation  
          Commissions (source)


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Smyth, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Fuentes, Nava, Saldana


          AGB:mw  6/18/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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