BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1430|
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                                    CONSENT


          Bill No:  AB 1430
          Author:   Assembly Local Government Committee
          Amended:  6/22/11 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  9-0, 06/29/11
          AYES:  Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez, 
            Kehoe, La Malfa, Liu

           ASSEMBLY FLOOR  :  78-0, 05/19/11 - See last page for vote


           SUBJECT  :    The Cortese-Knox-Hertzberg Local Government
                        Reorganization Act of 2000 omnibus bill

           SOURCE  :     California Association of Local Agency 
          Formation
                        Commissions


           DIGEST  :    This bill makes several minor, non-controversial 
          changes to the laws affecting local government organization 
          and reorganization.

           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 
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          Cortese-Knox-Hertzberg Act, they ask for statutory 
          improvements.  The Assembly Local Government Committee 
          responds by authoring annual clean-up bills.  Last year's 
          LAFCO clean-up bill was AB 2795 (Assembly Local Government 
          Committee), Chapter 47, Statutes of 2010.  This year, the 
          practitioners reviewed the Act's definitions and 
          recommended improvements.

          This bill:

           1.Definitions  .  The Cortese-Knox-Hertzberg Act specifically 
            defines 75 statutory terms that are essential to using 
            the Act's procedures.  This bill amends nearly every 
            definition with editorial revisions, renumbering, and 
            reformatting changes.

           2."Dependent special district" definition  .  Local officials 
            distinguish between independent special districts and 
            dependent special districts, based on who governs.  The 
            Act says that an independent special district has a 
            directly elected legislative body or a legislative body 
            with members appointed to fixed terms.  Although the Act 
            doesn't contain a formal definition, practitioners say 
            that a dependent district depends on another legislative 
            body for its governance.  This bill defines a "dependent 
            special district" as a district with a legislative body 
            consisting of  ex officio  members who are officers of a 
            county or other local agency, or who are appointees of 
            those officers for terms that are not fixed. �See �19 of 
            the bill.]

           3."District" definition  .  The Act's definition of 
            "district" or "special district" are in the same code 
            section, along with a complex list of exclusions.  
            Although most practitioners use these terms 
            interchangeably, a footnote in the 1995  Las Tunas  
            decision treated them as separate terms.  In revising and 
            reformatting the statutory definition of "district" or 
            "special district," this bill says that the terms are 
            synonymous. ݧ23]  An uncodified section in this bill 
            includes a statement that this change does not affect the 
            decision in  Las Tunas Beach Geological Hazard Abatement 
            District v. Superior Court  . ݧ86]
           

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          4."District of limited powers" definition  .  In 1965, the 
            Legislature repealed the boundary change provisions of 
            most special districts' principal acts and instead 
            adopted the District Reorganization Act, one of the 
            statutory predecessors of the current 
            Cortese-Knox-Hertzberg Act.  The District Reorganization 
            Act ended the "doctrine of automatic merger," in which a 
            city simply took over a special district once the 
            district was entirely within the city limits.  Instead, 
            the 1965 Act and the current Act spell out the steps, 
            including LAFCO review and approval, for a district to 
            merge with a city or become a subsidiary district of the 
            city.  To make those procedures work, the Legislature 
            coined the term "district of limited powers."  Nearly a 
            half-century later, that definition is archaic because no 
            one tries to invoke the defunct doctrine of automatic 
            merger.  Local officials know that they need LAFCO review 
            and approval before a city can take over a special 
            district, either through merger or conversion to 
            subsidiary district status.  This bill repeals the 
            definition of "district of limited powers" ݧ29] and 
            deletes the statutory references to that term. ݧ26, �73, 
            �79, �83, & �84]
           
          5."Latent service or power" definition  .  Although the Act 
            lacks a formal definition, practitioners usually use the 
            term latent power to mean the powers that a special 
            district's principal act authorizes, but a particular 
            district doesn't use.  For example, the Community 
            Services District Law lists 32 services that a CSD could 
            offer (SB 135, Kehoe, Chapter 249, Statutes of 2005).  
            The Stallion Springs CSD (Kern County) provides five 
            services, so the 27 other statutorily authorized but 
            unused services are its latent powers.  This bill defines 
            "latent service or power" as the services authorized by a 
            special district's principal act but aren't being 
            exercised, as determined by LAFCO. ݧ39]
           
          Technical amendments  .  In addition to its substantive 
          changes to the Cortese-Knox-Hertzberg Act, this bill makes 
          editorial improvements and reformatting changes.

           Comments
           

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          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 1430 don't 
          raise statewide policy questions.  Instead, the bill makes 
          a complex statute easier for property owners, residents, 
          and local officials to use.

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

           SUPPORT  :   (Verified  6/30/11)

          California Association of Local Agency Formation 
          Commissions



           ASSEMBLY FLOOR :  78-0, 05/19/11
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Alejo, Gorell


          AGB:nl  6/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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