BILL NUMBER: AB 1859	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Norby

                        FEBRUARY 12, 2010

   An act to  amend Section 56744   of
  amend Sections 56021 and 56375 of, and to add Section
56067.5 to,  the Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1859, as amended, Norby. Local government:  annexation.
  change of organization or reorganization.  
   (1) Under Cortese-Knox-Hertzberg Local Government Reorganization
Act of 2000 a local agency formation commission, among other things,
approves or disapproves, in whole or part, changes of organization or
reorganization, as specified. The act defines a "change of
organization" to mean a city incorporation or disincorporation, a
district formation or dissolution, an annexation, a consolidation, a
merger, or a proposal for the exercise of new or different functions
or classes of services, or divestiture of the power to provide
particular functions or classes of services, within all or part of
the jurisdictional boundaries of a special district.  
   This bill would include within a local agency formation commission'
s powers the power to approve, disapprove, or approve conditionally,
a request by a redevelopment agency to establish, extend, or expand a
project area. The bill would include within the definition of
"change of organization" a proposal to establish, extend, or expand a
project area, and would define the term "project area." By expanding
a local agency formation commission's duties, this bill would impose
a state-mandated local program.  
   (2) 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.  
   Existing law authorizes the incorporation or annexation of
territory to a city under specified circumstances, unless, as a
result of that incorporation or annexation, incorporated territory is
completely surrounded by that city or by territory of that city on
one or more sides and the Pacific Ocean on the remaining sides.
 
   This bill would make a technical, nonsubstantive change to this
provision. 
   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 56021 of the  
Government Code   is amended to read: 
   56021.  "Change of organization" means any of the following:
   (a) A city incorporation.
   (b) A district formation.
   (c) An annexation to, or detachment from, a city or district.
   (d) A disincorporation of a city.
   (e) A district dissolution.
   (f) A consolidation of cities or special districts.
   (g) A merger or establishment of a subsidiary district.
   (h) A proposal for the exercise of new or different functions or
classes of services, or divestiture of the power to provide
particular functions or classes of services, within all or part of
the jurisdictional boundaries of a special district. 
   (i) A proposal for the establishment, expansion, or extension of a
redevelopment agency's project area. 
   SEC. 2.    Section 56067.5 is added to the  
Government Code   , to read:  
   56067.5.  "Project area" means a redevelopment project
established, or proposed to be established, expanded, or extended, by
a redevelopment agency for redevelopment purposes, pursuant to the
Community Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code). 
   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) (1) To review and approve or disapprove with or without
amendment, wholly, partially, or conditionally, proposals for changes
of organization or reorganization,  including a request to
establish, expand, or extend a redevelopment agency's project area,
 consistent with written policies, procedures, and guidelines
adopted by the commission.
   (2) The commission may initiate proposals for any of the
following:
   (A) The consolidation of a district, as defined in Section 56036.
   (B) The dissolution of a district.
   (C) A merger.
   (D) The establishment of a subsidiary district.
   (E) The formation of a new district or districts.
   (F) A reorganization that includes any of the changes specified in
subparagraph (A), (B), (C), (D), or (E).
   (3) A commission may initiate a proposal described in paragraph
(2) only 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.
   (4) A commission shall not disapprove an annexation to a city,
initiated by resolution, of contiguous territory that the commission
finds is any of the following:
   (A) 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.
   (B) 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.
   (C) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.
   (5) 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.
   (6) A commission shall not impose any conditions that would
directly regulate land use density or intensity, property
development, or subdivision requirements.
   (7) 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. 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 build-out,
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. 
   (8) With regard to a proposal to establish, expand, or extend a
redevelopment project area, the commission shall only have the power
to review a redevelopment agency's proposal for financial soundness,
and to approve or deny the request, or to require a specified
pass-through funding level as a condition to approval. The commission
shall have no power to review or consider a finding of blight.
Nothing in this act shall be construed to affect judicial review of a
finding of blight. 
   (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 consistent 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.
   (  l  ) 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 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.    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.  
  SECTION 1.    Section 56744 of the Government Code
is amended to read:
   56744.  Unless otherwise determined by the commission pursuant to
subdivision (m) of Section 56375, territory shall not be incorporated
into, or annexed to, a city pursuant to this division if, as a
result of that incorporation or annexation, any unincorporated
territory is completely surrounded by that city or by territory of
that city on one or more sides and the Pacific Ocean on the remaining
sides.