BILL ANALYSIS �
AB 2156
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Date of Hearing: April 2, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 2156 (Achadjian) - As Amended: March 24, 2014
SUBJECT : Local agency formation commissions: studies.
SUMMARY : Adds joint powers agencies and joint powers
authorities to the existing list of governmental agencies a
local agency formation commission may request information from
in order to conduct its studies. Specifically, this bill :
1)Adds joint powers agencies and joint powers authorities (JPAs)
to the list of existing governmental agencies a local agency
formation commission (LAFCO) may request information from in
order to conduct its studies.
2)Adds joint powers agreements to the existing list of
information, studies, and plans a LAFCO may request in order
to conduct its studies.
3)Adds JPAs to the list of existing governmental agencies
required to comply with information requests from LAFCOs.
4)Defines a "joint powers agency or a joint powers authority" to
mean an agency or entity formed pursuant to the Joint Exercise
of Powers Act that is formed for the local performance of
governmental functions that includes the provision of
municipal services.
EXISTING LAW :
1)Establishes the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000.
2)Requires LAFCOs to initiate and make studies of existing
governmental agencies. Requires the studies to include, but
not be limited to, inventorying agencies and determining their
maximum service area and service capacities.
3)Allows LAFCOs, in conducting the studies, to ask for land use
information, studies, and plans of cities, counties,
districts, including school districts, community college
districts, regional agencies and state agencies and
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departments.
4)Requires cities, counties, districts including school
districts, community college districts, regional agencies, and
state agencies and departments to comply with a LAFCO's
request for information.
5)Requires LAFCOs to make the studies available to public
agencies and any interested person. Allows LAFCOs, in making
these studies, to cooperate with the county planning
commissions.
6)Establishes the Joint Exercise of Powers Act.
FISCAL EFFECT : None
COMMENTS :
1)Purpose of this bill . Current law authorizes LAFCOs, in
conducting studies, to request specified information from
cities, counties, districts, regional agencies, and state
agencies and departments in order to inventory agencies and
examine issues like their maximum service area and service
capacities. This bill adds JPA's that provide municipal
services to the list of existing governmental agencies that
must comply with requests from LAFCOs for information. This
bill is author-sponsored.
2)Author's statement . According to the author, "With a LAFCO in
each of California's 58 counties, every commission is
responsible for coordinating changes in governmental
boundaries, conducting studies that review ways to reorganize,
simplify, and streamline governmental structures and ensure
that services are provided efficiently and economically. As
part of their oversight, LAFCOs are authorized to request
information and governmental agencies under their review are
required to comply with the commission's request.
"While LAFCO efforts are directed toward ensuring that
services are provided efficiently and economically, JPAs do
not explicitly fall under LAFCO review. LAFCOs don't have
statutory authority to review agreements of JPAs, even when
JPAs are providing direct services. In addition to the lack
of oversight at the local level there is no single state
agency tasked with the oversight of JPAs.
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"This bill takes the first step in implementing a
recommendation from the Legislative Analyst's Office (LAO) to
include JPAs among the entities under the purview of LAFCOs.
Doing so would ensure greater transparency of JPAs that
provide services and give additional tools to LAFCOs to
complete their statutory mission on efficient provision of
government services."
3)Joint Exercise of Powers Act . The Joint Exercise of Powers
Act provides the statutory authority for public entities to
create and use a joint powers agreement, which is a legal
framework for state and local governments to exercise common
powers and even create new public entities. They are an
attractive tool for local governments because they facilitate
more efficient service provision through collaboration, and
because they permit local entities to issue bonds without
voter ratification.
On March 21, 2012, the Committee held an informational hearing
on the state of oversight of JPAs. The hearing found that
data collection on JPAs appears to be incomplete and
under-resourced, filing compliance is less than ideal, and
oversight remains somewhat fragmentary. The uses of JPAs fall
into five groups: general public services, financial services,
insurance pooling and purchasing discounts, planning services,
and regulatory enforcement. This bill only pertains to those
JPAs formed for the local performance of governmental
functions that includes the provision of municipal services.
4)Legislative Analyst's Office recommendation. In a January
2012 letter to Assembly Member Dickinson, the LAO recommended
that the Legislature consider expanding JPA oversight
authority to LAFCOs.
"We would also suggest the Legislature consider expanding
LAFCO authority to oversee JPAs. As we describe, LAFCOs have
no statutory authority to oversee the JPAs that districts or
general-purpose governments enter into. This includes JPAs
that are providing services, such as wastewater treatment or
water supply. Consequently, LAFCOs have no statutory
authority to review the financial and service data of these
JPA's boundaries or services in the same way that it can do
for individual special districts and other local government
agencies. We do not think this expanded authority should be
undertaken with the intent of discouraging the use of JPAs
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because those agreements are one strategy that special
districts use to achieve higher efficiencies. However, we
think that it is important that the entities created under
JPAs be subject to some level of oversight akin to the
districts and general-purpose governments that utilize them."
5)Arguments in support . According to the California Association
of Local Agency Formation Commissions, "LAFCOs are charged
with evaluating the provision of municipal services and to
conduct studies of existing governmental agencies including
their service area and service capacities. As many local
agencies across the state are providing municipal services
through JPAs, having access to the information that outlines
service areas and specific services being delivered by these
entities is critical to conducting comprehensive studies that
support LAFCOs core mission of encouraging the efficient
delivery of local services and evaluating local agency
boundaries."
6)Arguments in opposition . None on file.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Local Agency Formation Commissions
Stanislaus Local Agency Formation Commission
Opposition
None on file
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958