Bill Text: CA AB2762 | 2013-2014 | Regular Session | Chaptered


Bill Title: Local government.

Spectrum: Slight Partisan Bill (Democrat 5-3)

Status: (Passed) 2014-07-09 - Chaptered by Secretary of State - Chapter 112, Statutes of 2014. [AB2762 Detail]

Download: California-2013-AB2762-Chaptered.html
BILL NUMBER: AB 2762	CHAPTERED
	BILL TEXT

	CHAPTER  112
	FILED WITH SECRETARY OF STATE  JULY 9, 2014
	APPROVED BY GOVERNOR  JULY 9, 2014
	PASSED THE SENATE  JUNE 26, 2014
	PASSED THE ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  MAY 6, 2014
	AMENDED IN ASSEMBLY  APRIL 24, 2014

INTRODUCED BY   Committee on Local Government (Achadjian (Chair),
Levine (Vice Chair), Alejo, Gordon, Melendez, Mullin, Rendon, and
Waldron)

                        MARCH 24, 2014

   An act to amend Sections 56100, 56106, 56332, 56653, 56668, 56886,
and 57113 of, to add and repeal Section 56434 to, and to repeal
Section 56101 of, the Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2762, Committee on Local Government. Local government.
   Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, provides the authority and procedures for
the initiation, conduct, and completion of changes of organization
and reorganization of cities and districts. The act does not apply to
pending proceedings for a change or organization or reorganization
for which the application was accepted for filing prior to January 1,
2001, as specified. The act authorizes these pending proceedings to
be continued and completed under, and in accordance with, the law
under which the proceedings were commenced.
   This bill would repeal those provisions relating to pending
proceedings for a change or organization or reorganization for which
an application was accepted for filing prior to January 1, 2001, and
make other conforming changes.
    The act specifies that provisions governing the time within which
an official or the commission is to act are, with specific
exceptions, directory rather than mandatory.
   This bill would make a technical amendment to that provision.
   The act provides that in each county there is a local agency
formation commission, and that the commission shall include in its
membership 2 presiding officers or members of legislative bodies of
independent special districts and an alternate, selected by the
independent special district selection committee. Existing law
provides that the independent special district selection committee
shall consist of the presiding officer of the legislative body of
each independent special district.
   The bill would authorize the legislative body of a district to
appoint one of its members as an alternate to participate in the
selection committee in the presiding officer's place.
   The act authorizes the executive officer of the selection
committee, if he or she determines that a meeting for the purpose of
selecting the special district representatives or for filling a
vacancy is not feasible, to conduct the business of the committee in
writing, as specified.
   This bill would recast those provisions and, in addition, would
provide that a majority of the independent special district selection
committee may determine to conduct the committee's business by mail,
including holding all elections by mailed ballot, as specified.
   This bill would also authorize a local agency formation
commission, until January 1, 2019, to review and comment upon the
extension of services into previously unserved territory within
unincorporated areas, and the creation of new service providers to
extend urban type development into previously unserved territory
within unincorporated areas.
    The act requires a local agency or school district that initiates
proceedings for a change of local government organization or
reorganization by submitting a resolution of application for a change
of organization or reorganization to also submit a plan for
providing services within the effected territory, as specified.
   This bill would instead require, if a proposal for a change of
organization or reorganization is submitted, that the applicant
submit a plan for providing services within the effected territory.
   The act specifies the factors that a local agency formation
commission is required to consider in the review of a proposal for a
change of organization or reorganization, including, among other
things, a regional transportation plan, as specified, and its
consistency with city or county general and specific plans.
   This bill instead would require the local agency formation
commission to consider, in the review of a proposal for a change of
organization or reorganization, the consistency of the entire
proposal for a change of organization or reorganization with city or
county general and specific plans. By increasing the duties of a
local agency formation commission, this bill would impose a
state-mandated local program.
   The act authorizes a change of organization or reorganization to
provide for, or to be made subject to, one or more terms and
conditions specified in the commission's resolution making
determinations, in which case, the terms and conditions imposed
constitute the exclusive terms and conditions for the change of
organization or reorganization, notwithstanding other specified
general provisions of law.
   This bill instead would provide, that if a change or
reorganization is made subject to terms and conditions, those terms
and conditions shall prevail in the event of a conflict with other
specified general provisions of law.
   The act defines a landowner-voter district and prescribes certain
voting thresholds for landowner-voter districts for elections
associated with proposals initiated by a local agency formation
commission.
   This bill would make nonsubstantive, technical changes to these
provisions.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 56100 of the Government Code is amended to
read:
   56100.  (a) Except as otherwise provided in Section 56036.5 and
subdivision (b) of Section 56036.6, this division provides the sole
and exclusive authority and procedure for the initiation, conduct,
and completion of changes of organization and reorganization for
cities and districts. All changes of organization and reorganizations
shall be initiated, conducted, and completed in accordance with, and
as provided in, this division.
   (b) Notwithstanding any other law, proceedings for the formation
of a district shall be conducted as authorized by the principal act
of the district proposed to be formed, except that the commission
shall serve as the conducting authority and the procedural
requirements of this division shall apply and shall prevail in the
event of conflict with the procedural requirements of the principal
act of the district. In the event of such a conflict, the commission
shall specify the procedural requirements that apply, consistent with
the requirements of this section.
  SEC. 2.  Section 56101 of the Government Code is repealed.
  SEC. 3.  Section 56106 of the Government Code is amended to read:
   56106.  Any provisions in this division governing the time within
which an official or the commission is to act shall in all instances,
except for notice requirements and the requirements of subdivision
(h) of Section 56658 and subdivision (b) of Section 56895, be deemed
directory, rather than mandatory.
  SEC. 4.  Section 56332 of the Government Code is amended to read:
   56332.  (a) The independent special district selection committee
shall consist of the presiding officer of the legislative body of
each independent special district. However, if the presiding officer
of an independent special district is unable to participate in a
meeting or election of the independent special district selection
committee, the legislative body of the district may appoint one of
its members as an alternate to participate in the selection committee
in the presiding officer's place. Those districts shall include
districts located wholly within the county and those containing
territory within the county representing 50 percent or more of the
assessed value of taxable property of the district, as shown on the
last equalized county assessment roll. Each member of the committee
shall be entitled to one vote for each independent special district
of which he or she is the presiding officer or his or her alternate
as designated by the governing body. Members representing a majority
of the eligible districts shall constitute a quorum.
   (b) The executive officer shall call and give written notice of
all meetings of the members of the selection committee. A meeting
shall be called and held under one of the following circumstances:
   (1) Whenever the executive officer anticipates that a vacancy will
occur within the next 90 days among the members or alternate member
representing independent special districts on the commission.
   (2) Whenever a vacancy exists among the members or alternate
member representing independent special districts upon the
commission.
   (3) Upon receipt of a written request by one or more members of
the selection committee representing districts having 10 percent or
more of the assessed value of taxable property within the county, as
shown on the last equalized county assessment roll.
   (c) The selection committee shall appoint two regular members and
one alternate member to the commission. The members so appointed
shall be elected or appointed members of the legislative body of an
independent special district residing within the county but shall not
be members of the legislative body of a city or county. If one of
the regular district members is absent from a commission meeting or
disqualifies himself or herself from participating in a meeting, the
alternate district member may serve and vote in place of the regular
district member for that meeting. Service on the commission by a
regular district member shall not disqualify, or be cause for
disqualification of, the member from acting on proposals affecting
the special district on whose legislative body the member serves. The
special district selection committee may, at the time it appoints a
member or alternate, provide that the member or alternate is
disqualified from voting on proposals affecting the district on whose
legislative body the member serves.
   (d) If the office of a regular district member becomes vacant, the
alternate member may serve and vote in place of the former regular
district member until the appointment and qualification of a regular
district member to fill the vacancy.
   (e) A majority of the independent special district selection
committee may determine to conduct the committee's business by mail,
including holding all elections by mailed ballot, pursuant to
subdivision (f).
   (f) If the independent special district selection committee has
determined to conduct the committee's business by mail or if the
executive officer determines that a meeting of the special district
selection committee, for the purpose of selecting the special
district members or filling vacancies, is not feasible, the executive
officer shall conduct the business of the committee by mail.
Elections by mail shall be conducted as provided in this subdivision.

   (1) The executive officer shall prepare and deliver a call for
nominations to each eligible district. The presiding officer, or his
or her alternate as designated by the governing body, may respond in
writing by the date specified in the call for nominations, which date
shall be at least 30 days from the date on which the executive
officer mailed the call for nominations to the eligible district.
   (2) At the end of the nominating period, if only one candidate is
nominated for a vacant seat, that candidate shall be deemed selected.
If two or more candidates are nominated, the executive officer shall
prepare and deliver one ballot and voting instructions to each
eligible district. The ballot shall include the names of all nominees
and the office for which each was nominated. Each presiding officer,
or his or her alternate as designated by the governing body, shall
return the ballot to the executive officer by the date specified in
the voting instructions, which date shall be at least 30 days from
the date on which the executive officer mailed the ballot to the
eligible district.
   (3) The call for nominations, ballot, and voting instructions
shall be delivered by certified mail to each eligible district. As an
alternative to the delivery by certified mail, the executive
officer, with prior concurrence of the presiding officer or his or
her alternate as designated by the governing body, may transmit
materials by electronic mail.
   (4) If the executive officer has transmitted the call for
nominations or ballot by electronic mail, the presiding officer, or
his or her alternate as designated by the governing body, may respond
to the executive officer by electronic mail.
   (5) Each returned nomination and ballot shall be signed by the
presiding officer or his or her alternate as designated by the
governing body of the eligible district.
   (6) For an election to be valid, at least a quorum of the special
districts must submit valid ballots. The candidate receiving the most
votes shall be elected, unless another procedure has been adopted by
the selection committee. Any nomination and ballot received by the
executive officer after the date specified is invalid, provided,
however, that if a quorum of ballots is not received by that date,
the executive officer shall extend the date to submit ballots by 60
days and notify all districts of the extension. The executive officer
shall announce the results of the election within seven days of the
date specified.
   (7) All election materials shall be retained by the executive
officer for a period of at least six months after the announcement of
the election results.
   (g) For purposes of this section, "executive officer" means the
executive officer or designee as authorized by the commission.
  SEC. 5.  Section 56434 is added to the Government Code, to read:
   56434.  (a) The commission may review and comment upon both of the
following:
   (1) The extension of services into previously unserved territory
within unincorporated areas.
   (2) The creation of new service providers to extend urban type
development into previously unserved territory within unincorporated
areas.
   (b) The purpose of the review authorized by this section shall
ensure that the proposed extension of services or creation of new
service providers is consistent with the policies of Sections 56001,
56300, and 56301, and with the adopted policies of the commission
implementing these sections, including promoting orderly development,
discouraging urban sprawl, preserving open space and prime
agricultural lands, providing housing for persons and families of all
incomes, and the efficient extension of governmental services.
   (c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed.
  SEC. 6.  Section 56653 of the Government Code is amended to read:
   56653.  (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
   (b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
   (1) An enumeration and description of the services to be extended
to the affected territory.
   (2) The level and range of those services.
   (3) An indication of when those services can feasibly be extended
to the affected territory.
   (4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
   (5) Information with respect to how those services will be
financed.
  SEC. 7.  Section 56668 of the Government Code is amended to read:
   56668.  Factors to be considered in the review of a proposal shall
include, but not be limited to, all of the following:
   (a) Population and population density; land area and land use; per
capita assessed valuation; topography, natural boundaries, and
drainage basins; proximity to other populated areas; the likelihood
of significant growth in the area, and in adjacent incorporated and
unincorporated areas, during the next 10 years.
   (b) The need for organized community services; the present cost
and adequacy of governmental services and controls in the area;
probable future needs for those services and controls; probable
effect of the proposed incorporation, formation, annexation, or
exclusion and of alternative courses of action on the cost and
adequacy of services and controls in the area and adjacent areas.
   "Services," as used in this subdivision, refers to governmental
services whether or not the services are services which would be
provided by local agencies subject to this division, and includes the
public facilities necessary to provide those services.
   (c) The effect of the proposed action and of alternative actions,
on adjacent areas, on mutual social and economic interests, and on
the local governmental structure of the county.
   (d) The conformity of both the proposal and its anticipated
effects with both the adopted commission policies on providing
planned, orderly, efficient patterns of urban development, and the
policies and priorities in Section 56377.
   (e) The effect of the proposal on maintaining the physical and
economic integrity of agricultural lands, as defined by Section
56016.
   (f) The definiteness and certainty of the boundaries of the
territory, the nonconformance of proposed boundaries with lines of
assessment or ownership, the creation of islands or corridors of
unincorporated territory, and other similar matters affecting the
proposed boundaries.
   (g) A regional transportation plan adopted pursuant to Section
65080.
   (h) The proposal's consistency with city or county general and
specific plans.
   (i) The sphere of influence of any local agency which may be
applicable to the proposal being reviewed.
   (j) The comments of any affected local agency or other public
agency.
   (k) The ability of the newly formed or receiving entity to provide
the services which are the subject of the application to the area,
including the sufficiency of revenues for those services following
the proposed boundary change.
   (l) Timely availability of water supplies adequate for projected
needs as specified in Section 65352.5.
   (m) The extent to which the proposal will affect a city or cities
and the county in achieving their respective fair shares of the
regional housing needs as determined by the appropriate council of
governments consistent with Article 10.6 (commencing with Section
65580) of Chapter 3 of Division 1 of Title 7.
   (n) Any information or comments from the landowner or owners,
voters, or residents of the affected territory.
   (o) Any information relating to existing land use designations.
   (p) The extent to which the proposal will promote environmental
justice. As used in this subdivision, "environmental justice" means
the fair treatment of people of all races, cultures, and incomes with
respect to the location of public facilities and the provision of
public services.
  SEC. 8.  Section 56886 of the Government Code is amended to read:
   56886.  Any change of organization or reorganization may provide
for, or be made subject to one or more of, the following terms and
conditions. If a change of organization or reorganization is made
subject to one or more of the following terms and conditions in the
commission's resolution making determinations, the terms and
conditions imposed shall prevail in the event of a conflict between a
specific term and condition authorized pursuant to this section and
any of the general provisions of Part 5 (commencing with Section
57300). However, none of the following terms and conditions shall
directly regulate land use, property development, or subdivision
requirements:
   (a) The payment of a fixed or determinable amount of money, either
as a lump sum or in installments, for the acquisition, transfer,
use, or right of use of all or any part of the existing property,
real or personal, of any city, county, or district.
   (b) The levying or fixing and the collection of any of the
following, for the purpose of providing for any payment required
pursuant to subdivision (a):
   (1) Special, extraordinary, or additional taxes or assessments.
   (2) Special, extraordinary, or additional service charges,
rentals, or rates.
   (3) Both taxes or assessments and service charges, rentals, or
rates.
   (c) The imposition, exemption, transfer, division, or
apportionment, as among any affected cities, affected counties,
affected districts, and affected territory of liability for payment
of all or any part of principal, interest, and any other amounts
which shall become due on account of all or any part of any
outstanding or then authorized but thereafter issued bonds, including
revenue bonds, or other contracts or obligations of any city,
county, district, or any improvement district within a local agency,
and the levying or fixing and the collection of any (1) taxes or
assessments, or (2) service charges, rentals, or rates, or (3) both
taxes or assessments and service charges, rentals, or rates, in the
same manner as provided in the original authorization of the bonds
and in the amount necessary to provide for that payment.
   (d) If, as a result of any term or condition made pursuant to
subdivision (c), the liability of any affected city, affected county,
or affected district for payment of the principal of any bonded
indebtedness is increased or decreased, the term and condition may
specify the amount, if any, of that increase or decrease which shall
be included in, or excluded from, the outstanding bonded indebtedness
of that entity for the purpose of the application of any statute or
charter provision imposing a limitation upon the principal amount of
outstanding bonded indebtedness of the entity.
   (e) The formation of a new improvement district or districts or
the annexation or detachment of territory to, or from, any existing
improvement district or districts.
   (f) The incurring of new indebtedness or liability by, or on
behalf of, all or any part of any local agency, including territory
being annexed to any local agency, or of any existing or proposed new
improvement district within that local agency. The new indebtedness
may be the obligation solely of territory to be annexed if the local
agency has the authority to establish zones for incurring
indebtedness. The indebtedness or liability shall be incurred
substantially in accordance with the laws otherwise applicable to the
local agency.
   (g) The issuance and sale of any bonds, including authorized but
unissued bonds of a local agency, either by that local agency or by a
local agency designated as the successor to any local agency which
is extinguished as a result of any change of organization or
reorganization.
   (h) The acquisition, improvement, disposition, sale, transfer, or
division of any property, real or personal.
   (i) The disposition, transfer, or division of any moneys or funds,
including cash on hand and moneys due but uncollected, and any other
obligations.
   (j) The fixing and establishment of priorities of use, or right of
use, of water, or capacity rights in any public improvements or
facilities or any other property, real or personal. However, none of
the terms and conditions ordered pursuant to this subdivision shall
modify priorities of use, or right of use, to water, or capacity
rights in any public improvements or facilities that have been fixed
and established by a court or an order of the State Water Resources
Control Board.
   (k) The establishment, continuation, or termination of any office,
department, or board, or the transfer, combining, consolidation, or
separation of any offices, departments, or boards, or any of the
functions of those offices, departments, or boards, if, and to the
extent that, any of those matters is authorized by the principal act.

   (  l  ) The employment, transfer, or discharge of
employees, the continuation, modification, or termination of existing
employment contracts, civil service rights, seniority rights,
retirement rights, and other employee benefits and rights.
   (m) The designation of a city, county, or district, as the
successor to any local agency that is extinguished as a result of any
change of organization or reorganization, for the purpose of
succeeding to all of the rights, duties, and obligations of the
extinguished local agency with respect to enforcement, performance,
or payment of any outstanding bonds, including revenue bonds, or
other contracts and obligations of the extinguished local agency.
   (n) The designation of (1) the method for the selection of members
of the legislative body of a district or (2) the number of those
members, or (3) both, where the proceedings are for a consolidation,
or a reorganization providing for a consolidation or formation of a
new district and the principal act provides for alternative methods
of that selection or for varying numbers of those members, or both.
   (o) The initiation, conduct, or completion of proceedings on a
proposal made under, and pursuant to, this division.
   (p) The fixing of the effective date or dates of any change of
organization, subject to the limitations of Section 57202.
   (q) Any terms and conditions authorized or required by the
principal act with respect to any change of organization.
   (r) The continuation or provision of any service provided at that
time, or previously authorized to be provided by an official act of
the local agency.
   (s) The levying of assessments, including the imposition of a fee
pursuant to Section 50029 or 66484.3 or the approval by the voters of
general or special taxes. For the purposes of this section,
imposition of a fee as a condition of the issuance of a building
permit does not constitute direct regulation of land use, property
development, or subdivision requirements.
   (t) The extension or continuation of any previously authorized
charge, fee, assessment, or tax by the local agency or a successor
local agency in the affected territory.
   (u) The transfer of authority and responsibility among any
affected cities, affected counties, and affected districts for the
administration of special tax and special assessment districts,
including, but not limited to, the levying and collecting of special
taxes and special assessments, including the determination of the
annual special tax rate within authorized limits; the management of
redemption, reserve, special reserve, and construction funds; the
issuance of bonds which are authorized but not yet issued at the time
of the transfer, including not yet issued portions or phases of
bonds which are authorized; supervision of construction paid for with
bond or special tax or assessment proceeds; administration of
agreements to acquire public facilities and reimburse advances made
to the district; and all other rights and responsibilities with
respect to the levies, bonds, funds, and use of proceeds that would
have applied to the local agency that created the special tax or
special assessment district.
   (v) Any other matters necessary or incidental to any of the terms
and conditions specified in this section. If a change of
organization, reorganization, or special reorganization provides for,
or is made subject to one or more of, the terms and conditions
specified in this section, those terms and conditions shall be deemed
to be the exclusive terms and conditions for the change of
organization, reorganization, or special reorganization, and shall
control over any general provisions of Part 5 (commencing with
Section 57300).
  SEC. 9.  Section 57113 of the Government Code is amended to read:
   57113.  Notwithstanding Section 57102, 57108, or 57111, for any
proposal that was initiated by the commission pursuant to subdivision
(a) of Section 56375, the commission shall forward the change of
organization or reorganization for confirmation by the voters if the
commission finds either of the following:
   (a) In the case of inhabited territory, protests have been signed
by either of the following:
   (1) At least 10 percent of the number of landowners within any
subject agency within the affected territory who own at least 10
percent of the assessed value of land within the territory. However,
if the number of landowners within a subject agency is less than 300,
the protests shall be signed by at least 25 percent of the
landowners who own at least 25 percent of the assessed value of land
within the territory of the subject agency.
   (2) At least 10 percent of the voters entitled to vote as a result
of residing within, or owning land within, any subject agency within
the affected territory. However, if the number of voters entitled to
vote within a subject agency is less than 300, the protests shall be
signed by at least 25 percent of the voters entitled to vote.
   (b) In the case of a landowner-voter district, the territory is
uninhabited and protests have been signed by at least 10 percent of
the number of landowners within any subject agency within the
affected territory, who own at least 10 percent of the assessed value
of land within the territory. However, if the number of landowners
entitled to vote within a subject agency is less than 300, protests
shall be signed by at least 25 percent of the landowners entitled to
vote.
  SEC. 10.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.             
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