BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1023|
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THIRD READING
Bill No: SB 1023
Author: Wiggins (D)
Amended: 4/27/10
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 5-0, 5/5/10
AYES: Cox, Aanestad, Kehoe, DeSaulnier, Price
SUBJECT : Special districts: consolidation and
reorganization
SOURCE : Author
DIGEST : This bill creates an expedited procedure for
converting resort improvement districts and municipal
improvement districts that operate under outdated statutes
into community services districts, without substantive
changes to their powers, duties, finances, or service
areas. This bill also creates an accelerated procedure for
converting the Tahoe Paradise Resort Improvement District
into a recreation and park district.
ANALYSIS : The Cortese-Knox-Hertzberg Act creates a local
agency formation commission (LAFCO) in each county to
control the formation, boundaries, and dissolution of
cities and most special districts. These procedures
usually require five steps:
1. Application to the LAFCO, including environmental
review.
CONTINUED
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2. A formal public hearing for the LAFCO's review and
approval.
3. Another formal hearing to measure public protests.
4. The possibility of an election, if there was significant
protest.
5. Ministerial filing of final documents.
A reorganization combines two or more proposed boundary
changes into a single proposal. For example, a
reorganization could simultaneously dissolve an existing
special district and form a new district.
In 2005, the Legislature revised the Community Services
District Law (SB 135 [Kehoe], Chapter 249), under which
more than 300 community services districts (CSDs) deliver a
variety of public facilities and services.
In 2001, the Legislature rewrote the Recreation and Park
District Law (SB 707 [Senate Local Government Committee],
Chapter 15). Approximately 100 recreation and park
districts operate under that revised principal act.
Specifics of SB 1023
I. Converting to CSDs . This bill creates a new boundary
change procedure, called an "expedited reorganization,"
and allows LAFCOs to convert resort improvement
districts (RIDs) and three specified Municipal
Improvement Districts (MIDs) into community services
districts (CSDs).
An expedited reorganization relies on the existing
procedures for applying to a LAFCO and for the LAFCO's
review and approval. A proposed expedited
reorganization must include at least 12 specified terms
and conditions. If a board of supervisors is a RID's
governing body, the proposed terms and conditions may
also call for the election of the new CSD's initial
board of directors. The LAFCO can change the proposed
terms and conditions, but only after notifying the
subject RID or MID. The LAFCO can approve,
conditionally approve, or disapprove an expedited
reorganization, but the LAFCO must disapprove the
proposal if the subject RID or MID objects before the
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LAFCO acts. If the LAFCO approves or conditionally
approves the expedited reorganization, there is no
protest hearing and no election.
The expedited reorganization applies to all RIDs and to
three MIDs -Montalvo, Bethel Island, and Embarcadero.
The new law automatically terminates on January 1, 2018.
II. Converting to a Recreation and Park District . For just
the Tahoe Paradise RID, this bill creates a new boundary
change procedure, called an "accelerated
reorganization," and allows the El Dorado County LAFCO
to convert the Tahoe Paradise RID into a recreation and
park district.
The accelerated reorganization relies on the existing
procedures for applying to the El Dorado County LAFCO
and for the LAFCO's review and approval. A proposed
accelerated reorganization must include at least 12
specified terms and conditions. The LAFCO can change
the proposed terms and conditions, but only after
notifying the Tahoe Paradise RID. The LAFCO can
approve, conditionally approve, or disapprove the
accelerated reorganization, but the LAFCO must
disapprove the proposal if the Tahoe Paradise RID
objects before the LAFCO acts. If the LAFCO approves or
conditionally approves the expedited reorganization,
there is no protest hearing and no election.
This bill contains legislative findings to support this
special legislation. The new law automatically
terminates on January 1, 2018.
Comments
California's 3,400 special districts deliver the public
facilities and services that their communities want,
matching community services to community needs. To help
the districts remain responsive to their residents and
property owners, the Legislature has rewritten a half-dozen
of their principal acts to reflect more recent
constitutional and statutory trends. However, the
statewide law that applies to the few remaining resort
improvement districts and the municipal improvement
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districts' special acts are not up-to-date. MIDs and RIDs
are so similar in concept to community services districts
that some local officials want to convert them. This bill
allows RIDs and MIDs to convert into CSDs more quickly,
without changing boundaries, altering duties, raising
costs, or eroding anyone's constitutional rights. If they
use these voluntary procedures, district officials can gain
access to modern laws that help them serve their
communities.
The Legislature has the constitutional authority to
reorganize local governments - without the need for local
elections or even against protests. The Legislature
usually delegates these detailed matters to the 58 LAFCOs,
which the courts call the state's watchdogs over local
boundary changes. However, legislators can still exercise
their direct plenary power over local governments. For
example, in 1987, a bill dissolved the Hunter's Point
Reclamation District which had been formed in 1955, but
never operated. Two years ago, bills converted the Hot
Spring Valley Irrigation District into the Hot Spring
Valley Water District (SB 1117 [Cox], Chapter 615, Statutes
of 2008) and converted the Vandalia Irrigation District
into the Vandalia Water District (SB 1276 [Ashburn],
Chapter 619, Statutes of 2008). This bill takes the middle
path between direct action and full delegation, allowing
the LAFCOs to expedite the conversion of selected special
districts.
The California Constitution prohibits special legislation
when a general law can apply. By authorizing a statewide
process for "expedited reorganizations," this bill creates
a general law that is available to all RIDs and most MIDs.
At the request of the El Dorado County LAFCO, the bill also
contains a special provision that applies only to the Tahoe
Paradise RID - that LAFCO does not want to convert the
county's only RID into a CSD, preferring to consider
creating a recreation and park district instead. That
portion of this bill is special legislation and contains a
legislative declaration to justify the need for a special
bill.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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SUPPORT : (Verified 5/5/10)
Ad Hoc NB RID Residents' Committee
California Association of Local Agency Formation
Commissions
California Special Districts Association
County of Napa
El Dorado County LAFCO
Lake Berryessa Resort Improvement District
Montalvo Municipal Improvement District
Napa Berryessa Resort Improvement District
Napa County LAFCO
Regional Council of Rural Counties
Ventura County LAFCO
AGB:mw 5/6/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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