Bill Text: CA AB781 | 2011-2012 | Regular Session | Amended


Bill Title: Local government: counties: unincorporated areas.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2012-08-30 - Ordered to inactive file pursuant to Senate Rule 29. Ordered to inactive file at the request of Senator Dutton. [AB781 Detail]

Download: California-2011-AB781-Amended.html
BILL NUMBER: AB 781	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 29, 2011
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN SENATE  JUNE 20, 2011
	AMENDED IN ASSEMBLY  MARCH 23, 2011

INTRODUCED BY   Assembly Member John A. Pérez
   (Principal coauthor: Assembly Member Smyth)

                        FEBRUARY 17, 2011

   An act to add Sections 26204, 34090.65,  56668.7,  57426,
61015, 61023, and 61102.5 to, and to add Article 7.5 (commencing
with Section 65425) to Chapter 3 of Division 1 of Title 7 of, the
Government Code, and to amend Sections 7284 and 7284.2 of the Revenue
and Taxation Code, relating to local government.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 781, as amended, John A. Pérez. Local government: counties:
unincorporated areas. 
   (1) Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, sets forth the procedures for
incorporations and changes of organizations of cities, including
procedures for disincorporation.  
   This bill would authorize the board of supervisors of a county in
which a city that will be disincorporated pursuant to statute is
located to vote to continue that city if, after receipt of an audit
conducted by the State Auditor, the board of supervisors determines
that the territory to be disincorporated is not expected to generate
revenues sufficient to provide public services and facilities,
maintain a reasonable reserve, and pay its obligations during the 5
years following disincorporation. The bill would require a city that
is audited pursuant to these provisions to reimburse the State
Auditor for the costs incurred to perform the audit, thereby imposing
a state-mandated local program.  
   (1) 
    (2)  The Community Services District Law authorizes the
organization and powers of a community services district, as
specified, to provide for, among other things, the supply of water
for any beneficial uses, fire protection services, police and law
enforcement services, the financing of an area planning commission,
the financing of a municipal advisory commission, and the
acquisition, construction, improvement, and maintenance of streets or
roads.
   This bill would create a community services district in the
unincorporated area of a county if that unincorporated area of the
county was previously a city that was disincorporated by statute and
had, immediately prior to disincorporation, provided fire protection,
water, telecommunications, gas, or electric utility services, or
maintained streets or roads. The district would continue to provide
those services within the territory in which the disincorporated city
provided those services, and would be a successor in interest as to
any contract entered into by the disincorporated city with respect to
the provision of those services. The bill would, for a one-year
period, limit the authority of the community services district to
increase gas or electric utility rates within that territory.
   The bill would direct that the community services district would
become the employer of nonmanagerial employees who were employed by
the disincorporated city to provide any of the services described
above, in accordance with any existing memorandum of understanding or
other labor relations agreement, and would protect those employees
from discharge absent a showing of just cause for termination, except
as specified.
   The bill would specify that the board of supervisors for the
county in which the disincorporated city was located would serve as
the board of directors of the community services district.
   The bill would require the district or the county, as specified,
to become the custodian of records of the disincorporated city, and
would prohibit any officer or employee of a city, or a consultant
under contract to a city, that is subject to being disincorporated
from destroying those records or causing their destruction. 
   The bill would provide that legislative acts of the board of
directors of the district are not subject to initiative or
referendum, and the board of directors of the district is not subject
to recall.  
   (2) 
    (3)  The Planning and Zoning Law requires the
legislative body of each city and county to adopt a comprehensive,
long-term general plan for the physical development of the city or
county, as specified.
   This bill would provide that, as of the effective date of the
disincorporation of a city pursuant to statute, the general plan of
the disincorporated city constitutes the  general 
 community  plan of the county for the territory of the
disincorporated city, and that the zoning ordinances in effect
immediately prior to the disincorporation of the city, together with
any conditional use permits or any approved legal conforming uses,
likewise apply, as specified. The bill would also provide that any
use of land authorized under the general plan and zoning ordinances
immediately preceding the effective date of the city's
disincorporation would continue to be authorized for a period of not
less than 10 years, as specified. 
   (3) Existing law, the Planning and Zoning Law, establishes a
planning agency in each city and county with the powers necessary to
provide for local planning in the city or county, as specified.
Existing 
    (4)     Existing  law authorizes the
board of supervisors of any county to establish, by resolution, a
municipal advisory council for any unincorporated area in the county
to advise the board on matters that relate to the unincorporated
area, as specified.
   This bill would require the board of supervisors of the county in
which a city that has been disincorporated by statute was located,
within 45 days following the effective date of the disincorporation,
to establish a municipal advisory council  and an area
planning commission  to operate within the territory of the
disincorporated city, as specified. The bill would require the
district to finance the operation of the municipal advisory council
 , and authorize the district to finance the operation of the
area planning commission  .
   By increasing the duties of local agencies, this bill would impose
a state-mandated local program. 
   (4) 
    (5)  Existing law authorizes the legislative body of any
city or county to adopt an ordinance that, among other things,
regulates the use of buildings, structures, and land, and to regulate
the location, height, bulk, number of stories, the size of buildings
and structures, and the size and use of lots, yards, courts, and
other open spaces.
   This bill would require the board of supervisors in a county in
which a city that has been disincorporated by statute was located,
within 90 days of the effective date of the disincorporation, to form
an expedited permit process for permits related to business,
development, and health and safety that is comparable to the permit
process previously in place for the territory of the disincorporated
city.
   By increasing the duties of local governments, this bill would
impose a state-mandated local program. 
   (5) 
    (6)  Existing law authorizes the board of supervisors of
any county to license, for revenue and regulation and to fix the
license tax upon every kind of lawful business transacted in the
unincorporated area of the county, as specified.
   This bill would require the board of supervisors of a county in
which a city that has been disincorporated pursuant to statute was
located to maintain, at the then-existing rates, any business license
tax  or business license fee  of the disincorporated city
that was in effect at the time of the disincorporation for a period
of at least 5 years, as specified.  The bill would authorize the
board of supervisors to levy any additional business license tax or
business license fee on the territory of the disincorporated city
during the 5-year period following the effective date of the
disincorporation, if an audit conducted by a 3rd-party auditor finds
that additional revenues are needed in order to maintain needed
services to the territory of the disincorporated city or to make
required payments toward debt incurred by the city prior to
disincorporation.  
   (6) 
    (7)  Existing law authorizes the board of supervisors of
any county to levy a utility user tax on the consumption of
electricity, gas, water, sewer, telephone, telegraph, and cable
television services in the unincorporated area of the county.
   This bill would, upon the effective date of the disincorporation
of a city pursuant to statute, exempt utility users within the
territory of the disincorporated city from any existing county
utility user tax, and would prohibit the board from levying a utility
user tax on utility users within that territory for a period of 5
years following the effective date of the disincorporation. Following
this 5-year period, the bill would prohibit the board from levying
this tax unless the voters of the unincorporated area of the county
vote to  continue, increase, or decrease the tax on a uniform
basis   apply the utility user tax to utility users
within the territo   ry of the disincorporated city on the
same basis as it is then applied  throughout the unincorporated
area of the county.  The bill would also authorize the board of
supervisors to levy a utility user tax during the 5-year period
following the effective date of the disincorporation, if an audit
conducted by a 3rd-party auditor finds that additional revenues are
needed in order to maintain needed services to the territory of the
disincorporated city or to make required payments toward debt
incurred by the city prior to disincorporation.  
   (7) 
    (8)  Existing law governs the procedures and
requirements for retention and destruction of specified records of a
city.
   This bill would prohibit any officer or employee of a city
disincorporated by statute from destroying or authorizing the
destruction of any record of the city. 
   (8) 
    (9)  Existing law, the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000, requires the local agency
formation commission to oversee the terms and conditions of the
disincorporation of a city pursuant to that act.
   This bill would authorize the local agency formation commission to
commence oversight of the terms and conditions of the
disincorporation of a city pursuant to statute upon receipt of
specified notice from the board of supervisors of the county in which
a city disincorporated by statute is located. The bill  and
 would authorize the commission, upon request by the
legislative body of the city, any resident of the city, an owner of
property within the city, or any affected local agency  , 
to adopt additional terms and conditions relating to the
disincorporation of the city or the creation of the community
services district. 
   (9) 
    (10)  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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above. 
   (10) 
    (11)  The bill would become operative only if AB 46 of
the 2011-12 Regular Session is enacted and takes effect.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 26204 is added to the Government Code, to read:

   26204.  On and after the effective date of the disincorporation of
a city pursuant to Section 56668.6,  the board of
supervisors of  the affected county shall be the custodian
of all records of the disincorporated city except those records
specified in paragraph (5) of subdivision (c) of Section 61015. 
The board of supervisors of the affected county shall determine the
county agency to be the custodian of these records. 
  SEC. 2.  Section 34090.65 is added to the Government Code, to read:

   34090.65.  Notwithstanding any other provision in this article or
any other provision of law, no officer or employee of a city, or
consultant under contract to such a city, that is subject to
disincorporation pursuant to Section 56668.6 shall destroy, or
authorize the destruction of, any record of the city.
   SEC. 3.    Section 56668.7 is added to the  
Government Code   , to read:  
   56668.7.  (a) Notwithstanding Section 56668.6, except as otherwise
provided in subdivision (e), the board of supervisors of a county in
which a city that is to be disincorporated pursuant to Section
56668.6 is located may, within 90 days following the effective date
of Section 56668.6, by a majority vote of the board, vote by
resolution to continue in existence a city within that county's
boundaries that would otherwise be disincorporated pursuant to
Section 56668.6, if both of the following conditions are met:
   (1) The State Auditor has completed an audit pursuant to
subdivision (b) within 60 days of the effective date of this section.

   (2) Upon a review, including, but not limited to, the audit
described in subdivision (b), the board of supervisors, in its sole
discretion, finds based on evidence on the record that the territory
to be disincorporated is not expected to generate revenues sufficient
to provide public services and facilities, maintain a reasonable
reserve, and pay its obligations during the five-year period
following disincorporation.
   (b) The State Auditor shall, pursuant to Chapter 6.5 (commencing
with Section 8543), conduct an audit of a city that will be
disincorporated pursuant to Section 56668.6. The audit shall examine
the city's ability to repay its debts or financial obligations and
deliver services to the territory of the city, and shall take into
consideration the city's ability to adjust its debt and enhance its
revenue streams.
   (c) Within 30 days following receipt of the audit conducted
pursuant to subdivision (b), the board of supervisors shall review
the audit and may take any action pursuant to subdivision (a).
   (d) If a board of supervisors votes to continue a city in
existence pursuant to subdivision (a), then Section 56668.6 shall not
apply.
   (e) Notwithstanding Section 56668.6, if the State Auditor has not
completed the audit required by subdivision (b) and made the audit
public within 60 days following the effective date of Section
56668.6, the date of disincorporation shall be extended to 181 days
following the effective date of Section 56668.6. If the State Auditor
has not completed the audit and made the audit public within 150
days following the effective date of Section 56668.6, the board of
supervisors may act pursuant to subdivision (a) on any other evidence
available on the record.
   (f) A city that is subject to an audit described in subdivision
(b) shall enter into an interagency agreement with the State Auditor
for the purposes of reimbursing the State Auditor for the costs
incurred to perform that audit. 
   SEC. 3.   SEC. 4.   Section 57426 is
added to the Government Code, to read:
   57426.  Notwithstanding any other provision of law, once the board
of supervisors of a county notifies the commission that a city
within its jurisdiction will be disincorporated pursuant to Section
56668.6, and that the board intends to allow the 90-day period
specified in that section to expire without action by the board, the
board and the commission may commence the actions necessary to
accomplish that disincorporation.
   SEC. 4.   SEC. 5.   Section 61015 is
added to the Government Code, to read:
   61015.  (a) (1) Notwithstanding any other provision of this
chapter, Chapter 1 (commencing with Section 61100) of Part 3, or any
other provision of law, if a city that was disincorporated pursuant
to Section 56668.6 provided fire protection, water,
telecommunications, gas, or electric utility services, or maintained
streets or roads, immediately prior to the effective date of the
disincorporation, upon the effective date of the disincorporation a
district is hereby created to serve as successor to the city with
respect to those services. The boundaries of the district shall be
coterminous with the boundaries of the disincorporated city.
   (2) The district shall provide the services specified in paragraph
(1) within the same territory in which the disincorporated city
provided those services immediately prior to the effective date of
the disincorporation.
   (b) (1) The local agency formation commission for the county in
which a city will be disincorporated pursuant to Section 56668.6 is
located shall take all actions necessary to provide for the formation
of the district created pursuant to paragraph (1) of subdivision
(a), and to ensure that the district is formed and becomes operative
upon the effective date of the disincorporation of the city.
   (2) The local agency formation commission shall commence the
actions specified in this subdivision under any of the following
circumstances:
   (A) Receipt of notice from the board of supervisors of the county
that the city has been disincorporated pursuant to Section 56668.6.
   (B) Receipt of notice from the board of supervisors of the county
that the city will be disincorporated pursuant to Section 56668.6,
and that the board intends to allow the 90-day period specified in
that section to expire without action by the board.
   (C) At any earlier time as the executive officer deems prudent.
   (3) Notwithstanding any other provision of law, the local agency
formation commission may undertake the actions specified in this
subdivision prior to the effective date of disincorporation.
   (4) Except as otherwise specified in this section, on and after
the date a district becomes operative pursuant to this section,
nothing in this section shall affect the authority of the local
agency formation commission to act with respect to the district
pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5).
   (5) Upon the establishment of the district pursuant to this
section, the local agency formation commission may submit to the
board of supervisors an invoice for the costs associated with the
establishment of the district. Upon receipt of an invoice for the
costs associated with the establishment of the district, the board of
supervisors shall submit the invoice to the county auditor for
validation, and, upon validation, the board of supervisors shall pay
the amount requested to the local agency formation commission from
the special fund established pursuant to Section 57407.
   (6) The district shall be formed in accordance with all of the
following requirements:
   (A) The board of supervisors of the county shall negotiate the
agreement required by subdivision (a) of Section 99 of the Revenue
and Taxation Code in good faith on behalf of all local agencies
affected by the disincorporation of the city and the creation of the
district pursuant to this section.
   (B) Notwithstanding any other provision of law,  special 
parcel taxes that were previously imposed for the benefit of the
disincorporated city and were in effect immediately prior to the
effective date of the disincorporation shall continue, and the
proceeds of those taxes shall be remitted to the district for uses
consistent with the purposes for which those taxes were adopted.
   (C) The district created pursuant to this section may use 
special  parcel tax proceeds and other available revenues to
fund a higher level of law enforcement services within its territory
than is otherwise funded by the county on and after the effective
date of the disincorporation.
   (7) The district may continue any franchise fees that were
previously levied by the disincorporated city for electric utility
service and were in effect immediately prior to the effective date of
the disincorporation. All other fees, charges, or rates imposed in
connection with the services specified in paragraph (1) of
subdivision (a) that were in effect immediately prior to the
effective date of the disincorporation shall continue, subject to
modification by the district.
   (c) All of the following provisions shall apply to the district
created pursuant to this section:
   (1) On and after the effective date of the disincorporation of the
city pursuant to Section 56668.6, all of the following shall apply:
   (A) The district shall be the employer of those persons who were
employed by the disincorporated city as of January 1, 2011, in a
nonmanagerial capacity and continued to be employed immediately prior
to the effective date of the disincorporation in a nonmanagerial
capacity, to provide any of the city services specified in paragraph
(1) of subdivision (a).
   (B) The district shall be bound by any memorandum of understanding
or other labor relations agreement that was entered into by the city
pursuant to Chapter 10 (commencing with Section 3500) of Division 4
of Title 1 and was in effect immediately prior to the effective date
of the disincorporation unless and until the terms of that agreement
are altered pursuant to that chapter. This paragraph shall apply only
to the employees described in subparagraph (A).
   (C) All employees of the district described in subparagraph (A)
shall be protected from discharge absent a showing of just cause for
termination unless and until a different rule is established under a
memorandum of understanding or other labor relations agreement
entered into pursuant to Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 between the district and the employees, or
between the district and designated representatives of the employees.

   (D) Not later than 90 days following the creation of the district,
the board of directors shall review the employment, and the
classifications, compensation, and other terms of employment, of all
persons who were employed in a managerial position on or after
January 1, 2011, and remained employed by the disincorporated city
immediately prior to the effective date of the disincorporation, and,
based on that review, shall determine whether to continue the
employment of each of those persons.
   (E) Neither the disincorporation of the city pursuant to Section
56668.6; the succession of the district to assets, liabilities,
rights, privileges, permits, authorizations, agreements, and
contracts with respect to the provision of the services specified in
paragraph (1) of subdivision (a); nor any other provision of the
section shall be deemed to modify, abrogate, or otherwise affect any
labor relations agreement in effect immediately prior to the
effective date of the disincorporation if a party to that labor
relations agreement was, immediately prior to the disincorporation of
the city, a party to a contract with the disincorporated city for
any of the services specified in paragraph (1) of subdivision (a).
   (2) Any contract, including, but not limited to, any labor,
professional services, or financing contract, that was in effect
immediately prior to the effective date of the disincorporation of
the city pursuant to Section 56668.6 and related to the provision of
any of the services specified in paragraph (1) of subdivision (a)
within the territory of, or on behalf of, a city disincorporated
pursuant to that section, shall be deemed, on and after the effective
date of the disincorporation, to refer to the district created
pursuant to this section rather than to the city.
   (3) The district shall not enter into a contract with any
municipal corporation, municipal utility district, public utility
district, irrigation district, electric corporation, gas corporation,
or water corporation to provide water, telecommunications, gas, or
electric utility services if immediately prior to the effective date
of the disincorporation those services were provided by the
disincorporated city, unless the municipal advisory council
established pursuant to subdivision (d) of Section 65425 
consents to the contract   is provided an opportunity to
review and comment on the proposed contract, in a public meeting of
the municipal advisory council, prior to the district's approval of
the contract,  and the contract does not conflict with any
obligation of the district under subparagraph (B) of paragraph (1).
 The district shall provide the proposed contract to the
municipal advisory council at least 30 days prior to the date of the
district's approval of the contract and the municipal advisory
council shall have 10 business days following receipt of the proposed
contract to review and provide suggested revisions or other comments
to the district for consideration. The municipal advisory council's
failure to review or provide suggested revisions or other comments
within the 10-day period shall not limit the authority of the
district to approve or enter into the contract. 
   (4) All assets, liabilities, rights, privileges, permits,
authorizations, agreements, and contracts of the disincorporated city
with respect to the provision of the services specified in paragraph
(1) of subdivision (a) shall vest in the district on the effective
date of the disincorporation of the city pursuant to Section 56668.6.

   (5) On and after the effective date of the disincorporation of the
city pursuant to Section 56668.6, the district shall be the
custodian of all records of the disincorporated city that relate to
the provision of the services specified in paragraph (1) of
subdivision (a).
   (6) At its first meeting, the board of directors shall adopt all
necessary or appropriate ordinances of the city disincorporated
pursuant to Section 56668.6 pertaining to the provision of the
services specified in paragraph (1) of subdivision (a).
   (7) (A) Except as required to satisfy bond covenants or other
contractual obligations that relate to the provision of gas or
electric utility services within the territory of the disincorporated
city for which the district is the successor obligor, the district
shall not increase gas or electric utility rates last established by
the disincorporated city for at least one year following the creation
of the district, unless all of the following conditions are
satisfied:
   (i) Within nine months of the creation of the district, the board
of directors has requested an independent auditor to complete a
financial and programmatic audit of the gas or electric utility, as
applicable, and the independent auditor has reported the findings to
the district.
   (ii) Following the reporting of the audit conducted pursuant to
clause (i), the board of directors and the municipal advisory council
established pursuant to subdivision (d) of Section 65425 have each
held at least one public hearing on the results of the audit.
   (iii) The board of directors makes a finding, based on substantial
evidence in the record before it, that a fiscal emergency exists
which requires an increase in gas or electric utility rates, as
applicable, during the first year following the creation of the
district.
   (B) Subsequent to the one-year period described in subparagraph
(A), the board of directors may increase gas or electric utility
rates, provided the district has provided the rate increase proposal
to the municipal advisory council established pursuant to subdivision
(d) of Section 65425 for review at least 30 days prior to the
effective date of the increase and complied with applicable
provisions of Article XIII C of the California Constitution with
respect to the increase.
   (C) This paragraph shall not be construed to limit the authority
of the district to decrease gas or electric utility rates. 
   (8) The district may finance land use planning within the district
conducted by the area planning commission established pursuant to
subdivision (c) of Section 65425.  
   (9) 
    (8)  The district shall finance the operations of the
municipal advisory council established pursuant to subdivision (d) of
Section 65425. 
   (9) Notwithstanding Section 61046, ordinances of the district may
be passed only by the legislative act of the board of directors of
the district, the legislative acts of the board of directors of the
district shall not be subject to referendum, and the board of
directors of the district shall not be subject to recall. 
   (d) As used in this section, the following terms have the
following meanings:
   (1) "Disincorporated city" means a city that was disincorporated
pursuant to Section 56668.6.
   (2) "Fire protection services" means those services described in
subdivision (d) of Section 61100.
   (3) "Record" means any writing described in subdivision (e) of
Section 6252.
   (4) "Street or road maintenance" means those services described in
subdivision (l) of Section 61100.
   (5) "Telecommunications service" means those services described in
paragraph (53) of Section 153 of Title 47 of the United States Code.

   (6) "Water services" means those services described in subdivision
(a) of Section 61100.
   (e) Prior to the effective date of the disincorporation of a city
pursuant to Section 56668.6, the legislative body of the city, a
resident of the city, an owner of property within the city, or an
affected local agency may file a request with the local agency
formation commission to adopt any additional terms and conditions
described in Section 56886. After giving notice pursuant to Chapter 4
(commencing with Section 56150) of Part 1 of Division 3, and holding
a public hearing, the commission may adopt any additional terms and
conditions described in Section 56886 if the commission determines
both of the following:
   (1) The additional terms and conditions are useful and necessary
to the disincorporation of the city or the creation of the community
services district.
   (2) The additional terms and conditions are consistent, and do not
conflict, with the provisions of this section.
   SEC. 5.   SEC. 6.   Section 61023 is
added to the Government Code, to read:
   61023.  Notwithstanding Sections 61022 and 61027 or any other
provision of law, the board of supervisors of the county in which a
city that was disincorporated pursuant to Section 56668.6 is located
shall serve as the board of directors of any district created
pursuant to Section 61015.
   SEC. 6.   SEC. 7.   Section 61102.5 is
added to the Government Code, to read:
   61102.5.  Notwithstanding Sections 61102 and 61106, a district
created pursuant to Section 61015 may acquire, construct, own,
operate, control, or use facilities to supply its customers with gas
or electric utility service, purchase and distribute any of those
services, and may function as a scheduling coordinator and
participate in the California Independent System Operator market. For
these purposes, the board of directors may issue revenue bonds
pursuant to Section 61127 and other applicable law.
   SEC. 7.   SEC. 8.   Article 7.5
(commencing with Section 65425) is added to Chapter 3 of Division 1
of Title 7 of the Government Code, to read:

      Article 7.5.  Local Planning for Certain Unincorporated Areas


   65425.  Upon the disincorporation of a city pursuant to Section
56668.6, all of the following shall occur:
   (a) As of the effective date of the disincorporation, the 
general   community  plan of the disincorporated
city that was in effect immediately prior to the effective date of
the disincorporation shall constitute the general plan of the county
for the territory of the disincorporated city; the zoning ordinances
of the disincorporated city that were in effect immediately prior to
the effective date of the disincorporation shall constitute the
zoning ordinances of the county for that territory; and any
conditional use permit or legal nonconforming use that was in place
immediately prior to the effective date of the disincorporation shall
remain in force pursuant to the  general  
community  plan and zoning ordinances. Any use of land that was
authorized under the  general   community 
plan and zoning ordinances immediately prior to the effective date of
the disincorporation shall continue to be authorized, consistent
with the requirements of that  general  
community  plan and those zoning ordinances, for a period of 10
years from the effective date of the disincorporation, any longer
period required by the California Constitution or United States
Constitution, or any longer period to the extent permitted by the
general plan and zoning ordinances of the county applicable to that
territory following that 10-year period.
   (b) The  general  community  plan,
zoning ordinances, and permits described in subdivision (a) shall not
be amended for a period of 10 years following the effective date of
the disincorporation without the consent of the municipal advisory
council established pursuant to this section. This subdivision shall
not apply to an amendment required by law that is presented for
hearing before the  area   county  planning
commission  established pursuant to this section  ,
after written notice to the municipal advisory council. 
   (c) (1) The board of supervisors of the affected county shall,
within 45 days following the effective date of the disincorporation,
establish an area planning commission in accordance with Article 1
(commencing with Section 65100) to advise the county as to land use
planning for the territory of the community services district created
pursuant to Section 61015.  
   (2) (A) The area planning commission shall be comprised of five
members appointed by the board of supervisors. One of the five
members shall be appointed as a representative of the environmental
justice community and shall be a resident of the affected county. The
remaining four persons appointed shall be one of the following:
 
   (i) A resident of the community services district created pursuant
to Section 61015.  
   (ii) Both a resident of the affected county and an owner,
shareholder, or employee of a business operating from a fixed
location within the territory of the community services district.
 
   (B) For purposes of this paragraph, the term "representative of
the environmental justice community" means a person who is an
advocate for "environmental justice" as that term is defined in
subdivision (e) of Section 65040.12.  
   (3) The board of supervisors shall provide for the procedures of
the area planning commission, and shall specify the terms of office
and the standards of ethical conduct for the members of the
commission.  
   (d) 
    (c)  (1) The board of supervisors of the affected county
shall, within 45 days following the effective date of the
disincorporation, establish a municipal advisory council in
accordance with Part 1 (commencing with Section 31010) of Division 4
of Title 3 to serve the territory of the community services district
created pursuant to Section 61015.  The municipal advisory
council shall advise the bo   ard as to planning for the
territory of the community services district. The municipal advisory
council may also advise the board on matters concerning services that
are or may be provided to the area by the county or other local
governmental agencies, including, but not limited to, advice on
matters of public health, safety, welfare, and public  
works. 
   (2) The municipal advisory council shall be comprised of five
members appointed by the board of supervisors.  All of the
  One of the five members shall be appointed as a
representative of the environmental justice community and shall be a
resident of the affected county. The remaining four  persons
appointed shall be one of the following:
   (A) A resident of the community services district created pursuant
to Section 61015.
   (B) Both a resident of the affected county and an owner,
shareholder, or employee of a business operating from a fixed
location within the territory of the community services district.

   (3) For purposes of this paragraph, the term "representative of
the environmental justice community" means a person who is an
advocate for "environmental justice" as that term is defined in
subdivision (e) of Section 65040.12.  
   (3) 
    (4)  The board of supervisors shall provide for the
procedures of the council, and shall specify the terms of office and
the standards of ethical conduct for the members of the council.

   (e) The board of supervisors is encouraged to appoint persons to
the area planning commission and the municipal advisory council who
do not serve simultaneously on both the area planning commission and
the municipal advisory council.  
   (f) 
    (d)  Within 90 days of the effective date of the
disincorporation of the city, the board of supervisors of the
affected county, in consultation with the municipal advisory council
established pursuant to this section, shall adopt an expedited permit
process relating to business, development, and health and safety
permits for the territory of the disincorporated city that is
comparable to the permit process that existed in that city
immediately preceding the disincorporation. 
   (g) 
    (e)  Notwithstanding Chapter 1 (commencing with Section
33000) of Part 1 of Division 24 of the Health and Safety Code, or any
other provision of law, the
  board of supervisors of the affected county shall serve as the
legislative body of any redevelopment agency that was formed with
respect to all or part of the territory of a city that was
disincorporated pursuant to Section 56668.6 and was in existence
immediately prior to the effective date of the disincorporation.

   (h) 
    (f)  For purposes of this article, the term "affected
county" means the county in which a city that was disincorporated
pursuant to Section 56668.6 was located.
   SEC. 8.   SEC. 9.   Section 7284 of the
Revenue and Taxation Code is amended to read:
   7284.  (a) The board of supervisors of any county may license, for
revenue and regulation, and fix the license tax upon, every kind of
lawful business transacted in the unincorporated area of the county,
including shows, exhibitions, and games. The board may provide for
collection of the license tax by suit or otherwise.
   (b) Any board of supervisors that imposes a license tax pursuant
to subdivision (a) upon a business operating both within and outside
the board's taxing jurisdiction shall levy the tax so that the
measure of tax fairly reflects that proportion of the taxed activity
actually carried on within the taxing jurisdiction.
   (c) The board of supervisors of the county in which a city that
was disincorporated pursuant to Section 56668.6 of the Government
Code was located shall maintain, for a period of at least five years,
any business license tax that was imposed by the disincorporated
city and was in effect immediately prior to the effective date of the
disincorporation, at the rates that were in effect on that date,
including any methods then in effect that applied to adjust those
rates.  The   Except as otherwise provided by
subdivision (d), the  board of supervisors shall not levy any
additional business license tax  on   or
business license fee within  the territory of the
disincorporated city during that five-year period. 
   (d) The board of supervisors of the county in which a city that
was disincorporated pursuant to Section 56668.6 of the Government
Code was located may levy an additional business license tax or
business license fee within the territory of the disincorporated city
during the five-year period following the effective date of the
disincorporation, if an audit conducted by a third-party auditor
finds that additional revenues are needed in order for the county to
maintain needed services to the territory of the disincorporated city
or to make required payments toward debt incurred by the city prior
to disincorporation. 
   SEC. 9.   SEC. 10.  Section 7284.2 of
the Revenue and Taxation Code is amended to read:
   7284.2.  (a) (1) The board of supervisors of any county may levy a
utility user tax on the consumption of electricity, gas, water,
sewer, telephone, telegraph, and cable television services in the
unincorporated area of the county.
   (2) Notwithstanding paragraph (1), upon the effective date of the
disincorporation of a city pursuant to Section 56668.6 of the
Government Code, no existing county utility user tax shall apply to
utility users within the territory of that disincorporated city.
 The   Except as   otherwise provided
by paragraph (3), the  board of supervisors of the affected
county shall not levy a utility user tax on utility users within the
territory of that disincorporated city for a period of five years
following the effective date of the disincorporation. Following the
expiration of the five-year period, the board of supervisors shall
not levy a utility user tax on utility users within the territory of
the disincorporated city unless the voters of the unincorporated area
of the county, including the voters located within the territory of
the disincorporated city, vote to  continue, increase, or
decrease the   apply a  utility user tax 
on a uniform basis   to utility users within the
territory of the disincorporated city on the same basis as it is then
applied  throughout the unincorporated area of the county in
accordance with Article XIII C of the California Constitution. 
   Except as specifically provided by this paragraph, this paragraph
shall not limit the right of the board of supervisors to place on the
ballot any proposal to increase the utility user tax throughout the
unincorporated area of the county during or after the five-year
period following the effective date of the disincorporation pursuant
to Section 56668.6 of the Government Code.  
    (3) The board of supervisors of the county in which a city that
was disincorporated pursuant to Section 56668.6 of the Government
Code was located may, in accordance with Article XIII C of the
California Constitution, impose a utility user tax on utility users
within the territory of the disincorporated city during the five-year
period following the effective date of the disincorporation, if an
audit conducted by a third-party auditor finds that additional
revenues are needed in order for the county to maintain needed
services to the territory of the disincorporated city or to make
required payments toward debt incurred by the city prior to
disincorporation. 
   (b) For purposes of this section, "gas" shall not be construed as
referring to the consumption of compressed natural gas dispensed by a
gas compressor, within a local jurisdiction, that is separately
metered and is dedicated to providing compressed natural gas as a
motor vehicle fuel for use by the local agency or public transit
operator.
   (c) For purposes of this section, "local jurisdiction" means any
city, county, city and county, including any chartered city, county,
or city and county, district, or public or municipal corporation.
   (d) For purposes of this section "public transit operator" means a
local or regional transit agency or a joint powers agency operating
bus transportation service as defined pursuant to Article 1
(commencing with Section 99200) of Chapter 4 of Part 11 of Division
10 of the Public Utilities Code.
   SEC. 10.   SEC. 11.   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.

   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
   SEC. 11.   SEC. 12.   This act shall
become operative only if Assembly Bill 46 of the 2011-12 Regular
Session of the Legislature is enacted and takes effect.
             
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