BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 2156                     HEARING:  5/14/14
          AUTHOR:  Achadjian                    FISCAL:  No
          VERSION:  3/24/14                     TAX LEVY:  No
          CONSULTANT:  Urquiza                    

                  LOCAL AGENCY FORMATION COMMISSIONS: STUDIES 
          

          Adds joint powers agencies and joint powers authorities to  
          the list of entities LAFCOs may request information from  
          for purposes of conducting studies.  


                           Background and Existing Law  

          The Cortese-Knox-Hertzberg Local Government Reorganization  
          Act of 2000 sets forth the powers and duties of local  
          agency formation commissions (LAFCOs).  Located in every  
          county, LAFCOs are responsible for coordinating changes in  
          governmental boundaries and conducting studies that review  
          ways to reorganize, simplify, and streamline governmental  
          structures to ensure that services are provided efficiently  
          and economically.  In order to conduct studies, such as  
          determining local agencies' maximum service areas and  
          service capacities, LAFCOs are authorized to request land  
          use information, studies, and plans from cities, counties,  
          districts, regional agencies, and state agencies and  
          departments.  These entities must comply with a LAFCO's  
          request for information.  A LAFCO must make its studies  
          available to public agencies and any interested person. 

          The Joint Exercise of Powers Act allows two or more public  
          agencies to use their powers in common if they sign a joint  
          powers agreement.  Sometimes an agreement creates a new,  
          separate government called a joint powers agency or joint  
          powers authority (JPA).  Local agencies that provide  
          municipal services, such as wastewater treatment or water  
          supplies, can enter into joint powers agreement and create  
          JPAs to achieve service efficiencies.  JPAs do not  
          explicitly fall under LAFCO review.  There is no single  
          entity that provides oversight of JPAs.  While LAFCOs can  
          request specified information from individual special  
          districts and other local government agencies, LAFCOs don't  
          have statutory authority to review JPAs' agreements, even  




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          when JPAs are formed by local agencies and provide direct  
          municipal services.  

               



                                   Proposed Law  

          Assembly Bill 2156 adds joint powers agencies and joint  
          powers authorities (JPAs) to the list of governmental  
          agencies a LAFCO may request information from to conduct  
          its studies. 

          AB 2156 adds a joint powers agreement to the list of  
          information a LAFCO may request to conduct its studies.

          AB 2156 adds JPAs to the list of governmental agencies that  
          must comply with information requests from LAFCOs. 

          The bill 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. 


                               State Revenue Impact  

          No estimate. 


                                     Comment  

           Purpose of the bill  .  Many local agencies provide municipal  
          services through JPAs.  LAFCOs have no statutory authority  
          to review JPA's boundaries or services in the same way that  
          they can for individual special districts and other local  
          government agencies.  In a report evaluating LAFCOs'  
          capabilities to review the effectiveness and accountability  
          of special districts, the Legislative Analyst's Office  
          (LAO) recommended that the Legislature consider expanding  
          LAFCOs' authority to oversee JPAs that provide municipal  
          services.  AB 2156 enacts the LAO's recommendation, helping  
          LAFCOs fulfill their statutory mission of ensuring that  
          municipal services are provided efficiently and  





          AB 2156 -- 3/24/14 -- Page 3



          economically. 


                                 Assembly Actions  

          Assembly Local Government:                                   
            9-0
          Assembly Floor:                                              
                       74-0 





                         Support and Opposition  (5/8/14)

           Support  :  California Association of Local Agency Formation  
          Commissions; Butte Local Agency Formation Commission;  
          Contra Costa Local Agency Formation Commission; Marin Local  
          Agency Formation Commission; Napa County Local Agency  
          Formation Commission; Orange County Local Agency Formation  
          Commission; San Benito Local Agency Formation Commission;  
          San Bernardino Local Agency Formation Commission; San Diego  
          Local Agency Formation Commission; San Luis Obispo Local  
          Agency Formation Commission; Sonoma Local Agency Formation  
          Commission; Stanislaus Local Agency Formation Commission;  
          Yolo Local Agency Formation Commission.

           Opposition  :  Unknown.