BILL NUMBER: SB 239 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 23, 2015
INTRODUCED BY Senator Hertzberg
FEBRUARY 17, 2015
An act to amend Section 56133 of Sections
56021, 56654, 56824.10, and 56824.12 of, to add Section 56800.5 to,
and to add Article 1.6 (commencing with Section 56824.20) to Chapter
5 of Part 3 of Division 3 of Title 5 of, the Government Code,
relating to local government. local services.
LEGISLATIVE COUNSEL'S DIGEST
SB 239, as amended, Hertzberg. Cities and districts:
extended services. Local services: contracts: fire
protection services.
Existing law prescribes generally the powers and duties of the
local agency formation commission in each county with respect to the
review approval or disapproval of proposals for changes of
organization or reorganization of cities and special districts within
that county. Existing law establishes commission proceedings to
consider the exercise of new or different functions or services, or
the divestiture of the power to provide particular functions or
services, by special districts.
This bill would establish commission proceedings to consider the
exercise of new or extended fire protection services outside a public
agency's current service area by contract or agreement. The bill
would require the legislative body of a public agency to adopt a
resolution and submit the resolution along with a plan for services,
as provided. The bill would require that a proposal by a state agency
be initiated by the director of the agency with the approval of the
Governor. The bill would require, prior to adopting the resolution or
submitting the proposal, the public agency to enter into a written
agreement for the performance of new or extended fire protection
services with each affected public agency and recognized employee
organization representing firefighters in the affected area and to
conduct a public hearing on the resolution. The bill would provide
that a proposal for a change of organization that involves the
exercise of new or extended fire protection services outside a public
agency's current service area by contract or agreement may be
initiated only by these proceedings.
The bill would require the commission to approve or disapprove the
proposal as specified. The bill would require the commission to
consider, among other things, to review a comprehensive fiscal
analysis prepared by the executive officer in accordance with
specified requirements.
The California Constitution requires local agencies, for the
purpose of ensuring public access to the meetings of public bodies
and the writings of public officials and agencies, to comply with a
statutory enactment that amends or enacts laws relating to public
records or open meetings and contains findings demonstrating that the
enactment furthers the constitutional requirements relating to this
purpose.
This bill would make legislative findings to that effect.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000 authorizes a city or district to provide new or extended
services by contract or agreement outside its jurisdictional
boundaries if the city or district requests and receives permission
to do so from the local agency formation commission in the affected
county. Existing law authorizes the commission to authorize a city or
district to provide new or extended services outside its
jurisdictional boundaries but within its sphere of influence in
anticipation of a later change of organization, or outside its sphere
of influence to respond to an existing or impending threat to the
public health or safety of the residents of the affected territory,
under specified circumstances. Existing law requires the executive
officer of the local agency formation commission, within 30 days of
receipt of a request for approval by a city or district of a contract
to extend services outside its jurisdictional boundary, to determine
whether the request is complete and acceptable for filing, as
specified.
This bill would extend the period within which the executive
officer is required to make that determination to 45 days.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
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 a city.
(d) An annexation to a district.
(e) A detachment from a city.
(f) A detachment from a district.
(g) A disincorporation of a city.
(h) A district dissolution.
(i) A consolidation of cities.
(j) A consolidation of special districts.
(k) A merger of a city and a district.
(l) Establishment of a subsidiary district.
(m) 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 as provided in Article 1.5
(commencing with Section 56824.10) of Chapter 5 of Part 3 of this
division.
(n) The exercise of new or extended fire protection services
outside a public agency's current service area by contract or
agreement, as authorized by Chapter 4 (commencing with Section 55600)
of Part 2 of Division 2 of Title 5 of this code or Article 4
(commencing with Section 4141) of Chapter 1 of Part 2 of Division 4
of the Public Resources Code, as provided in Article 1.6 (commencing
with Section 56824.20) of Chapter 5 of Part 3 of Division 3 of Title
5 of this code.
SEC. 2. Section 56654 of the Government
Code is amended to read:
56654. (a) A proposal for a change of organization or a
reorganization may be made by the adoption of a resolution of
application by the legislative body of an affected local agency,
except as provided in subdivision (b).
(b) (1) Notwithstanding Section 56700, a
proposal for a change of organization that involves the exercise of
new or different functions or classes of services, or the divestiture
of the power to provide particular functions or classes of services,
within all or part of the jurisdictional boundaries of a special
district, shall only be initiated by the legislative body of that
special district in accordance with Sections 56824.10,
56824.12, and 56824.14. Article 1.5 (commencing with
Section 56824.10) of Chapter 5.
(2) Notwithstanding Section 56700, a proposal for a change of
organization that involves the exercise of new or extended services
outside a public agency's current service area by contract or
agreement, as defined in subdivision (n) of Section 56021, shall only
be initiated in accordance with Article 1.6 (commencing with Section
56824.20) of Chapter 5.
(c) At least 21 days before the adoption of the resolution, the
legislative body may give mailed notice of its intention to adopt a
resolution of application to the commission and to each interested
agency and each subject agency. The notice shall generally describe
the proposal and the affected territory.
(d) Except for the provisions regarding signers and signatures, a
resolution of application shall contain all of the matters specified
for a petition in Section 56700 and shall be submitted with a plan
for services prepared pursuant to Section 56653.
SEC. 3. Section 56800.5 is added to the
Government Code , to read:
56800.5. For a proposal for a change of organization that
involves the exercise of new or extended services outside a public
agency's current service area by contract or agreement, as defined in
subdivision (n) of Section 56021, the executive officer shall
prepare, or cause to be prepared by contract, a comprehensive fiscal
analysis. This analysis shall become part of the report required
pursuant to Section 56665. Data used for the analysis shall be from
the most recent fiscal year for which data are available, preceding
the issuance of the certificate of filing. When data requested by the
executive officer in the notice of affected agencies are
unavailable, the analysis shall document the source and methodology
of the data used. The analysis shall review and document each of the
following:
(a) The costs to the public agency that has proposed to provide
new or extended services during the three fiscal years following a
public agency entering into a contract to provide new or extended
services outside its current service area by contract or agreement,
in accordance with the following requirements:
(1) The executive officer shall include all direct and indirect
cost impacts to the existing service provider in the affected
territory.
(2) The executive officer shall review how the costs of the
existing service provider compare to the costs of services provided
in service areas with similar populations and of similar geographic
size that provide a similar level and range of services and shall
make a reasonable determination of the costs expected to be borne by
the public agency providing new or extended services.
(b) The revenues of the public agency that has proposed a new or
extended service outside its current service area during the three
fiscal years following the effective date of a contract or agreement
with another public agency to provide a new or extended service.
(c) The effects on the costs and revenues of any affected public
agency, including the public agency proposing to provide the new or
extended service, during the three fiscal years that the new or
extended service will be provided.
(d) Any other information and analysis needed to make the findings
required by Section 56824.24.
SEC. 4. Section 56824.10 of the
Government Code is amended to read:
56824.10. Commission proceedings 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,
pursuant to paragraph (1) of subdivision (b) of Section
56654, may be initiated by a resolution of application in accordance
with this article.
SEC. 5. Section 56824.12 of the
Government Code is amended to read:
56824.12. (a) A proposal by a special district to provide a new
or different function or class 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,
pursuant to paragraph (1) of subdivision (b) of Section
56654, shall be made by the adoption of a resolution of application
by the legislative body of the special district and shall include all
of the matters specified for a petition in Section 56700, except
paragraph (6) of subdivision (a) of Section 56700, and be submitted
with a plan for services prepared pursuant to Section 56653. The plan
for services for purposes of this article shall also include all of
the following information:
(1) The total estimated cost to provide the new or different
function or class of services within the special district's
jurisdictional boundaries.
(2) The estimated cost of the new or different function or class
of services to customers within the special district's jurisdictional
boundaries. The estimated costs may be identified by customer class.
(3) An identification of existing providers, if any, of the new or
different function or class of services proposed to be provided and
the potential fiscal impact to the customers of those existing
providers.
(4) A written summary of whether the new or different function or
class 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, pursuant to
paragraph (1) of subdivision (b) of Section 56654, will involve
the activation or divestiture of the power to provide a particular
service or services, service function or functions, or class of
service or services.
(5) A plan for financing the establishment of the new or different
function or class of services within the special district's
jurisdictional boundaries.
(6) Alternatives for the establishment of the new or different
functions or class of services within the special district's
jurisdictional boundaries.
(b) The clerk of the legislative body adopting a resolution of
application shall file a certified copy of that resolution with the
executive officer. Except as provided in subdivision (c), the
commission shall process resolutions of application adopted pursuant
to this article in accordance with Section 56824.14.
(c) (1) Prior to submitting a resolution of application pursuant
to this article to the commission, the legislative body of the
special district shall conduct a public hearing on the resolution.
Notice of the hearing shall be published pursuant to Sections 56153
and 56154.
(2) Any affected local agency, affected county, or any interested
person who wishes to appear at the hearing shall be given an
opportunity to provide oral or written testimony on the resolution.
SEC. 6. Article 1.6 (commencing with Section
56824.20) is added to Chapter 5 of Part 3 of Division 3 of Title 5 of
the Government Code , to read:
Article 1.6. Fire Protection Services
56824.20. Commission proceedings pursuant to paragraph (2) of
subdivision (b) of Section 56654 may be initiated in accordance with
this article.
56824.22. (a) A proposal for a change of organization that
involves the exercise of new or extended services outside a public
agency's current service area by contract or agreement, as defined in
subdivision (n) of Section 56021, shall be made by the adoption of a
resolution of application as follows:
(1) In the case of a public agency that is not a state agency, the
proposal shall be initiated by the adoption of a resolution of
application by the legislative body of the public agency proposing to
provide new or extended services outside the public agency's current
service area.
(2) In the case of a public agency that is a state agency, the
proposal shall be initiated by the director of the state agency
proposing to provide new or extended services outside the agency's
current service area and be approved by the Governor.
(b) Prior to submitting a resolution of application pursuant to
this article to the commission, the legislative body of a public
agency or the director of a state agency shall do all of the
following:
(1) Obtain and submit with the resolution a written agreement
validated and executed by each affected public agency and recognized
employee organization that represents firefighters of the existing
and proposed service providers consenting to the proposed change of
organization.
(2) Conduct a public hearing on the resolution. Notice of the
hearing shall be published pursuant to Sections 56154 and 56156. The
legislative body of the public agency or the director of the state
agency shall provide an affected public agency or an interested
person who wishes to appear at the hearing the opportunity to present
oral or written testimony on the resolution.
(c) A proposal for a change of organization submitted pursuant to
this article shall be submitted with a plan for services prepared
pursuant to Section 56653. The plan for services shall include all of
the following information:
(1) The total estimated cost to provide the new or extended
services in the affected territory.
(2) The estimated cost of the new or extended services to
customers in the affected territory.
(3) An identification of existing service providers, if any, of
the new or extended services proposed to be provided and the
potential fiscal impact to the customers of those existing providers.
(4) A plan for financing the exercise of the new or extended
services in the affected territory.
(5) Alternatives for the exercise of the new or extended services
in the affected territory.
(d) The clerk of the legislative body of a public agency or the
director of a state agency adopting a resolution of application
pursuant to this article shall file a certified copy of the
resolution with the executive officer. The commission shall process
resolutions of application adopted pursuant to this chapter in
accordance with Section 56824.24.
56824.24. (a) The commission shall review and approve or
disapprove a proposal for a change of organization as defined in
subdivision (n) of Section 56021 after a public hearing called and
held for that purpose. The commission shall not consider or approve a
proposal that does not comply with the requirements of subdivision
(b) of Section 56824.22.
(b) (1) The commission shall not approve a proposal for a change
of organization as defined in subdivision (n) of Section 56021 unless
the commission determines that the public agency will have
sufficient revenues to carry out the exercise of the new or extended
services outside its current area, except as specified in paragraph
(2).
(2) The commission may approve a proposal for a change of
organization as defined in subdivision (n) of Section 56021 where the
commission has determined that the public agency will not have
sufficient revenue to provide the proposed new or different functions
or class of services, if the commission conditions its approval on
the concurrent approval of sufficient revenue sources pursuant to
Section 56886. In approving a proposal, the commission shall provide
that if the revenue sources pursuant to Section 56886 are not
approved, the authority of the public agency to provide new or
extended services shall not be exercised.
(c) Notwithstanding Section 56375, the commission shall not
approve a proposal for a change of organization as defined in
subdivision (n) of Section 56021 unless the commission finds, based
on the entire record, all of the following:
(1) The proposed exercise of new or extended services outside a
public agency's current service area is consistent with the intent of
this division, including, but not limited to, the policies of
Sections 56001 and 56300.
(2) The commission has reviewed the comprehensive fiscal analysis
prepared pursuant to Section 56800.5.
(3) The commission has reviewed the executive officer's report and
recommendation prepared pursuant to Section 56665 and any testimony
presented at the public hearing.
(4) The proposed affected territory is expected to receive
revenues sufficient to provide public services and facilities and a
reasonable reserve during the three fiscal years following the
effective date of the contract or agreement between the public
agencies to provide a new or extended service.
(d) At least 21 days prior to the date of the hearing, the
executive officer shall give mailed notice of that hearing to each
affected local agency or affected county, and to any interested party
who has filed a written request for notice with the executive
officer. In addition, at least 21 days prior to the date of that
hearing, the executive officer shall cause notice of the hearing to
be published in accordance with Section 56153 in a newspaper of
general circulation that is circulated within the territory affected
by the proposal proposed to be adopted and shall post the notice of
the hearing on the commission's Internet Web site.
(e) The commission may continue from time to time any hearing
called pursuant to this section. The commission shall hear and
consider oral or written testimony presented by any affected local
agency, affected county, or any interested person who appears at any
hearing called and held pursuant to this section.
SEC. 7. The Legislature finds and declares that
Section 6 of this act, which adds Section 56824.22 to the Government
Code, furthers, within the meaning of paragraph (7) of subdivision
(b) of Section 3 of Article I of the California Constitution, the
purposes of that constitutional section as it relates to the right of
public access to the meetings of local public bodies or the writings
of local public officials and local agencies. Pursuant to paragraph
(7) of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:
This act provides for notice in accordance with existing
provisions of the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 and will ensure that the right of public
access to local agency meetings is protected.
SECTION 1. Section 56133 of the Government Code
is amended to read:
56133. (a) A city or district may provide new or extended
services by contract or agreement outside its jurisdictional
boundaries only if it first requests and receives written approval
from the commission in the affected county.
(b) The commission may authorize a city or district to provide new
or extended services outside its jurisdictional boundaries but
within its sphere of influence in anticipation of a later change of
organization.
(c) The commission may authorize a city or district to provide new
or extended services outside its jurisdictional boundaries and
outside its sphere of influence to respond to an existing or
impending threat to the public health or safety of the residents of
the affected territory if both of the following requirements are met:
(1) The entity applying for the contract approval has provided the
commission with documentation of a threat to the health and safety
of the public or the affected residents.
(2) The commission has notified any alternate service provider,
including any water corporation as defined in Section 241 of the
Public Utilities Code, or sewer system corporation as defined in
Section 230.6 of the Public Utilities Code, that has filed a map and
a statement of its service capabilities with the commission.
(d) The executive officer, within 45 days of receipt of a request
for approval by a city or district of a contract to extend services
outside its jurisdictional boundary, shall determine whether the
request is complete and acceptable for filing or whether the request
is incomplete. If a request is determined not to be complete, the
executive officer shall immediately transmit that determination to
the requester, specifying those parts of the request that are
incomplete and the manner in which they can be made complete. When
the request is deemed complete, the executive officer shall place the
request on the agenda of the next commission meeting for which
adequate notice can be given but not more than 90 days from the date
that the request is deemed complete, unless the commission has
delegated approval of those requests to the executive officer. The
commission or executive officer shall approve, disapprove, or approve
with conditions the contract for extended services. If the contract
is disapproved or approved with conditions, the applicant may request
reconsideration, citing the reasons for reconsideration.
(e) This section does not apply to contracts or agreements solely
involving two or more public agencies where the public service to be
provided is an alternative to, or substitute for, public services
already being provided by an existing public service provider and
where the level of service to be provided is consistent with the
level of service contemplated by the existing service provider. This
section does not apply to contracts for the transfer of nonpotable or
nontreated water. This section does not apply to contracts or
agreements solely involving the provision of surplus water to
agricultural lands and facilities, including, but not limited to,
incidental residential structures, for projects that serve
conservation purposes or that directly support agricultural
industries. However, prior to extending surplus water service to any
project that will support or induce development, the city or district
shall first request and receive written approval from the commission
in the affected county. This section does not apply to an extended
service that a city or district was providing on or before January 1,
2001. This section does not apply to a local publicly owned electric
utility, as defined by Section 9604 of the Public Utilities Code,
providing electric services that do not involve the acquisition,
construction, or installation of electric distribution facilities by
the local publicly owned electric utility, outside of the utility's
jurisdictional boundaries.