Bill Text: CA SB1318 | 2015-2016 | Regular Session | Amended


Bill Title: Local government: drinking water infrastructure or services: wastewater infrastructure or services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1318 Detail]

Download: California-2015-SB1318-Amended.html
BILL NUMBER: SB 1318	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2016
	AMENDED IN SENATE  APRIL 12, 2016
	AMENDED IN SENATE  MARCH 28, 2016

INTRODUCED BY   Senator Wolk

                        FEBRUARY 19, 2016

   An act to  add Section 56378.5 to, and to  amend Sections
56375, 56425,  and 56430   56430, 56653, and
65302.10  of the Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1318, as amended, Wolk. Local government: drinking water
infrastructure or services: wastewater infrastructure or services.
   The Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000 governs the procedures for the formation and change of
organization of cities and special districts. 
   Existing law authorizes a local agency formation commission to
initiate proposals by resolution of application for, among other
things, the consolidation of a district, a merger, and the formation
of a new district or districts.  
   This bill would additionally authorize a local agency formation
commission to initiate a proposal by resolution of application for
the annexation of a disadvantaged unincorporated community, as
specified.  
   Existing law requires an applicant for a change of organization or
reorganization to include a plan for providing services within the
affected territory that includes, among other things, an enumeration
and description of the services to be extended to the affected
territory and an indication of when those services can feasibly be
extended to the affected territory.  
   This bill would additionally require an applicant to include an
enumeration and description of the services currently provided, and
would require an indication of when services can feasibly be extended
to the affected territory if new services are proposed. 
   Existing law, except as otherwise provided, prohibits a local
agency formation commission from approving an annexation to a city of
any territory greater than 10 acres, or as determined by commission
policy, where there exists a disadvantaged unincorporated community,
as specified, unless an application to annex the disadvantaged
unincorporated community to the subject city has been filed with the
executive officer.
   This bill would extend that prohibition to an annexation to a
qualified special district. The bill would define "qualified special
district" to mean a special district with more than 500 service
connections that provides drinking water or wastewater services.
   Existing law requires a local agency formation commission to
develop and determine the sphere of influence of each city and each
special district within the county and to enact policies designed to
promote the logical and orderly development of areas within the
sphere. 
   This bill would additionally require a local agency formation
commission to enact policies designed to promote the logical and
orderly development of areas adjacent to the sphere of influence of
each city and special district.  
    The bill would prohibit a commission from approving a sphere of
influence update that removes a disadvantaged community from a city's
or special district's sphere of influence unless the commission
makes a finding that removal of the community will result in improved
service delivery to the community. 
   Existing law requires a commission, in preparing and updating
spheres of influence, to conduct a service review of the municipal
services provided in the county or other area designated by the
commission. Existing law authorizes the commission, in conducting the
review, to assess various alternatives for improving efficiency and
affordability of infrastructure and service delivery, as specified,
and to include a review of whether the agencies under review are in
compliance with the California Safe Drinking Water Act.
   Where there exists a disadvantaged unincorporated community that
lacks adequate drinking water and wastewater services and
infrastructure within or contiguous with the subject sphere, this
bill would instead require the commission to make the assessment of
alternatives and to include the safe drinking water review described
above if the information is available from the State Water Resources
Control Board or other sources.  This bill would, on or
before January 1, 2022, and every 5 years thereafter, require the
commission to conduct service reviews sufficient to have reviewed the
entire territory of the county. The bill would require the
commission to file a map of the county that identifies disadvantaged
unincorporated communities that lack safe drinking water or adequate
wastewater with the Office of Planning and Research, and would
require the Office of Planning and Research to post the map on its
Internet Web site. The bill would additionally require the
commission, within 2 years of identifying a disadvantaged
unincorporated community that lacks safe drinking water or adequate
wastewater services, to recommend a plan based on the alternatives
analyzed and adopt any actions necessary to implement the plan, as
specified.  
   This bill would, on or before January 1, 2018, and every 5 years
thereafter, additionally require a local agency formation commission
to identify and determine the location of any disadvantaged
unincorporated community, as defined, that is within or adjacent to
the sphere of influence of a city or a special district and review
the adequacy and need for water and wastewater services within the
identified disadvantaged unincorporated communities, as specified.
The bill would, on or before January 1, 2020, and every 5 years
thereafter, require the commission to adopt a written accessibility
plan that addresses any existing service inefficiencies or needs
within any identified disadvantaged unincorporated community, and
would require a local agency formation commission to take certain
steps to implement the plan and address service needs. The bill
would, on or before January, 1, 2018, additionally require a local
agency formation commission to file a map of the county that
identified any disadvantaged unincorporated community that lacks safe
drinking water or adequate wastewater and a copy of the
accessibility plan.  
   Existing law requires each city or county, on or before the due
date for the next adoption of its housing element, to review and
update the land use element of its general plan based on available
data, including, but not limited to, the data an analysis prepared by
a local agency formation commission in a service review of the
municipal services of unincorporated island, fringe, or legacy
communities inside or near its boundaries, as specified. Existing law
also requires each city and county to, on or before the due date for
each subsequent revision of its housing element, review and if
necessary amend its general plan to update specified analysis. 

   This bill would require each city or county, on or before the next
adoption of its housing element and on or before the due date for
each subsequent revision of its housing element, to additionally
incorporate any adopted accessibility plan into the general plan and
any update of the land use element of its general plan, as specified.

   By imposing new duties on local government officials, this bill
would impose a state-mandated local program.
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   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 56375 of the Government Code is amended to
read:
   56375.  The commission shall have all of the following powers and
duties subject to any limitations upon its jurisdiction set forth in
this part:
   (a) (1) To review and approve with or without amendment, wholly,
partially, or conditionally, or disapprove proposals for changes of
organization or reorganization, consistent with written policies,
procedures, and guidelines adopted by the commission.
   (2) The commission may initiate proposals by resolution of
application for any of the following:
   (A) The consolidation of a district, as defined in Section 56036.
   (B) The dissolution of a district.
   (C) A merger.
   (D) The establishment of a subsidiary district.
   (E) The formation of a new district or districts. 
   (F) The annexation of a disadvantaged unincorporated community as
defined by Section 56378.5.  
   (F) 
    (G)  A reorganization that includes any of the changes
specified in subparagraph (A), (B), (C), (D), or (E).
   (3) A commission may initiate a proposal described in paragraph
(2) only if that change of organization or reorganization is
consistent with a recommendation or conclusion of a study prepared
pursuant to Section 56378, 56425, or 56430, and the commission makes
the determinations specified in subdivision (b) of Section 56881.
   (4) A commission shall not disapprove an annexation to a city,
initiated by resolution, of contiguous territory that the commission
finds is any of the following:
   (A) Surrounded or substantially surrounded by the city to which
the annexation is proposed or by that city and a county boundary or
the Pacific Ocean if the territory to be annexed is substantially
developed or developing, is not prime agricultural land as defined in
Section 56064, is designated for urban growth by the general plan of
the annexing city, and is not within the sphere of influence of
another city.
   (B) Located within an urban service area that has been delineated
and adopted by a commission, which is not prime agricultural land, as
defined by Section 56064, and is designated for urban growth by the
general plan of the annexing city.
   (C) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.
   (5) As a condition to the annexation of an area that is
surrounded, or substantially surrounded, by the city to which the
annexation is proposed, the commission may require, where consistent
with the purposes of this division, that the annexation include the
entire island of surrounded, or substantially surrounded, territory.
   (6) A commission shall not impose any conditions that would
directly regulate land use density or intensity, property
development, or subdivision requirements.
   (7) The decision of the commission with regard to a proposal to
annex territory to a city shall be based upon the general plan and
prezoning of the city. When the development purposes are not made
known to the annexing city, the annexation shall be reviewed on the
basis of the adopted plans and policies of the annexing city or
county. A commission shall require, as a condition to annexation,
that a city prezone the territory to be annexed or present evidence
satisfactory to the commission that the existing development
entitlements on the territory are vested or are already at build-out,
and are consistent with the city's general plan. However, the
commission shall not specify how, or in what manner, the territory
shall be prezoned.
   (8) (A) Except for those changes of organization or reorganization
authorized under Section 56375.3, and except as provided by
subparagraph (B), a commission shall not approve an annexation to a
city or to a qualified special district of any territory greater than
10 acres, or as determined by commission policy, where there exists
a disadvantaged unincorporated community that is contiguous to the
area of proposed annexation, unless an application to annex the
disadvantaged unincorporated community to the subject city has been
filed with the executive officer.
   (B) An application to annex a contiguous disadvantaged community
shall not be required if either of the following apply:
   (i) A prior application for annexation of the same disadvantaged
community has been made in the preceding five years.
   (ii) The commission finds, based upon written evidence, that a
majority of the registered voters within the affected disadvantaged
unincorporated community are opposed to annexation.
   (C) For purposes of this paragraph, "a qualified special district"
means a special district with more than 500 service connections that
provides drinking water or wastewater services.
   (b) With regard to a proposal for annexation or detachment of
territory to, or from, a city or district or with regard to a
proposal for reorganization that includes annexation or detachment,
to determine whether territory proposed for annexation or detachment,
as described in its resolution approving the annexation, detachment,
or reorganization, is inhabited or uninhabited.
   (c) With regard to a proposal for consolidation of two or more
cities or districts, to determine which city or district shall be the
consolidated successor city or district.
   (d) To approve the annexation of unincorporated, noncontiguous
territory, subject to the limitations of Section 56742, located in
the same county as that in which the city is located, and that is
owned by a city and used for municipal purposes and to authorize the
annexation of the territory without notice and hearing.
   (e) To approve the annexation of unincorporated territory
consistent with the planned and probable use of the property based
upon the review of general plan and prezoning designations. No
subsequent change may be made to the general plan for the annexed
territory or zoning that is not in conformance to the prezoning
designations for a period of two years after the completion of the
annexation, unless the legislative body for the city makes a finding
at a public hearing that a substantial change has occurred in
circumstances that necessitate a departure from the prezoning in the
application to the commission.
   (f) With respect to the incorporation of a new city or the
formation of a new special district, to determine the number of
registered voters residing within the proposed city or special
district or, for a landowner-voter special district, the number of
owners of land and the assessed value of their land within the
territory proposed to be included in the new special district. The
number of registered voters shall be calculated as of the time of the
last report of voter registration by the county elections official
to the Secretary of State prior to the date the first signature was
affixed to the petition. The executive officer shall notify the
petitioners of the number of registered voters resulting from this
calculation. The assessed value of the land within the territory
proposed to be included in a new landowner-voter special district
shall be calculated as shown on the last equalized assessment roll.
   (g) To adopt written procedures for the evaluation of proposals,
including written definitions consistent with existing state law. The
commission may adopt standards for any of the factors enumerated in
Section 56668. Any standards adopted by the commission shall be
written.
   (h) To adopt standards and procedures for the evaluation of
service plans submitted pursuant to Section 56653 and the initiation
of a change of organization or reorganization pursuant to subdivision
(a).
   (i) To make and enforce regulations for the orderly and fair
conduct of hearings by the commission.
   (j) To incur usual and necessary expenses for the accomplishment
of its functions.
   (k) To appoint and assign staff personnel and to employ or
contract for professional or consulting services to carry out and
effect the functions of the commission.
   (  l  ) To review the boundaries of the territory
involved in any proposal with respect to the definiteness and
certainty of those boundaries, the nonconformance of proposed
boundaries with lines of assessment or ownership, and other similar
matters affecting the proposed boundaries.
   (m) To waive the restrictions of Section 56744 if it finds that
the application of the restrictions would be detrimental to the
orderly development of the community and that the area that would be
enclosed by the annexation or incorporation is so located that it
cannot reasonably be annexed to another city or incorporated as a new
city.
   (n) To waive the application of Section 22613 of the Streets and
Highways Code if it finds the application would deprive an area of a
service needed to ensure the health, safety, or welfare of the
residents of the area and if it finds that the waiver would not
affect the ability of a city to provide any service. However, within
60 days of the inclusion of the territory within the city, the
legislative body may adopt a resolution nullifying the waiver.
   (o) If the proposal includes the incorporation of a city, as
defined in Section 56043, or the formation of a district, as defined
in Section 2215 of the Revenue and Taxation Code, the commission
shall determine the property tax revenue to be exchanged by the
affected local agencies pursuant to Section 56810.
   (p) To authorize a city or district to provide new or extended
services outside its jurisdictional boundaries pursuant to Section
56133.
   (q) To enter into an agreement with the commission for an
adjoining county for the purpose of determining procedures for the
consideration of proposals that may affect the adjoining county or
where the jurisdiction of an affected agency crosses the boundary of
the adjoining county.
   (r) To approve with or without amendment, wholly, partially, or
conditionally, or disapprove pursuant to this section the annexation
of territory served by a mutual water company formed pursuant to Part
7 (commencing with Section 14300) of Division 3 of Title 1 of the
Corporations Code that operates a public water system to a city or
special district. Any annexation approved in accordance with this
subdivision shall be subject to the state and federal constitutional
prohibitions against the taking of private property without the
payment of just compensation. This subdivision shall not impair the
authority of a public agency or public utility to exercise eminent
domain authority.
   SEC.   2.    Section 56378.5 is added to the
  Government Code   , to read:  
   56378.5.  (a) For purposes of this section, the following terms
have the following meanings:
   (1) "Adequate wastewater services" means services sufficient to
meet residents' health and safety needs.
   (2) "Disadvantaged unincorporated community" means an
unincorporated area that is a disadvantaged community as defined by
Section 65302.10, or as determined by commission policy, that
constitutes all or a portion of a disadvantaged community as defined
by Section 79505.5 of the Water Code and that lacks safe drinking
water, as defined by subdivision (i) of Section 116681 of the Health
and Safety Code, or adequate wastewater services.
   (b) (1) On or before January 1, 2018, and every five years
thereafter, the commission shall identify and determine the location
of any disadvantaged unincorporated community that is within or
adjacent to the sphere of influence of a city or special district by
using, at a minimum, data at the census block group level.
   (2) On or before January 1, 2018 and every five years thereafter,
the commission shall review the adequacy and need for water and
wastewater services within disadvantaged unincorporated communities
identified pursuant to paragraph (1) in accordance with the study
prepared pursuant to Section 56378 or the service review conducted
pursuant to Section 56430. The analysis shall consider, but is not
limited to, the analysis prepared by a city or county pursuant to
paragraphs (2) and (3) of subdivision (b) of Section 65302.10.
   (c) On or before January 1, 2020, and every five years thereafter,
the commission shall adopt a written accessibility plan after a
noticed hearing. The written accessibility shall identify
opportunities and strategies to address any existing service
inefficiencies or needs within the any community identified pursuant
to paragraph (1) of subdivision (b). The accessibility plan may
include information and actions identified by a city or county
pursuant to paragraphs (2) and (3) of subdivision (b) of Section
65302.10. The accessibility plan shall contain, but is not limited
to, statements that address all of the following factors:
   (1) The local agency best positioned to provide the subject water
and or wastewater services to the affected territory.
   (2) Any actions and alternatives necessary to be taken by the
commission, if any, to enable the local agency identified in
paragraph (1) to provide services to the affected territory.
   (3) The actions to be taken by any local agency that the
commission believes is necessary to establish services to the
disadvantaged unincorporated community.
   (4) Any related consideration, as deemed relevant by the
commission, required to establish public water or wastewater services
to the affected disadvantaged unincorporated community with respect
to the commission's regional growth management responsibilities
pursuant to Section 56301.
   (5) An analysis of costs and benefits for residents in each
affected territory.
   (6) A written analysis demonstrating that a majority of residents
do not oppose the reorganization, service extension or other action
anticipated in the accessibility plan.
   (7) An analysis of local, state, and federal funding sources
available to implement the accessibility plan
   (8) An identification, based on substantial evidence, of any
disadvantaged unincorporated community for which there is no
technically or economically feasible way of connecting to an existing
system through annexation or service extension. These findings shall
not interfere with or inform other programs or policies designed to
expand basic services to disadvantaged unincorporated communities,
including, but not limited to, Article 9 (commencing with Sections
116680) of Chapter 4 of Part 12 of Division 104 of the Health and
Safety Code.
   (d) Costs and fees for services provided to the affected territory
through implementation of the accessibility plan shall not exceed
costs and fees charged to existing water and wastewater system
customers of the applicable service provider.
   (e) On or before January 1, 2018, the commission shall file a map
of the county that identifies disadvantaged unincorporated
communities that lack safe drinking water or adequate wastewater
along with the adopted accessibility plan prepared pursuant to
subdivision (c) in electronic format with the Office of Planning and
Research. Maps and adopted accessibility plans addressing
disadvantaged unincorporated communities that lack safe drinking
water shall also be provided to the State Water Resources Control
Board, and those lacking adequate wastewater shall be provided to the
State Water Resources Control Board and any affected regional water
quality control board. All maps shall be made available on the Office
of Planning and Research's and State Water Resources Control Board's
Internet Web sites.
   (f) Within two years of the adoption of an accessibility plan
pursuant to subdivision (c), the commission shall hold a noticed
public hearing and review the status of every disadvantaged
unincorporated community that is subject to the accessibility plan.
If the commission determines that the service needs remain
unaddressed, the commission shall initiate a change of organization
or reorganization pursuant to this chapter.
   (g) The commission shall hold the public hearing required pursuant
to subdivisions (c) and (f) in a place as close as feasible to the
affected areas. The commission shall provide a 30 day notice of each
hearing to the residents of any identified disadvantaged
unincorporated community and any other stakeholder including, but not
limited to, the State Water Resources Control Board, cities,
counties, and special districts. The hearing shall provide residents
of the disadvantaged unincorporated communities an opportunity for
public comment.
   (h) Any actions taken to implement an adopted accessibility plan
pursuant tor this section shall not be subject to an election or any
protest proceedings, as defined in section 56069.5. The commission
shall not take action to implement an adopted accessibility plan if
the commission finds, based upon written evidence, that a majority of
the residents within the affected territory are opposed to the
recommended action.
   (i) Any action taken by the commission pursuant to this section
shall include a condition requiring the sufficient completion, as
determined by the commission, of an engineering, funding, and other
related planning activity by the local agency necessary to establish
services to the affected territory.
   (j) The commission shall be eligible for reimbursement by the
state for the initiation and implementation of and accessibility plan
pursuant to this section. 
   SEC. 2.   SEC. 3.   Section 56425 of the
Government Code is amended to read:
   56425.  (a) In order to carry out its purposes and
responsibilities for planning and shaping the logical and orderly
development and coordination of local governmental agencies subject
to the jurisdiction of the commission to advantageously provide for
the present and future needs of the county and its communities, the
commission shall develop and determine the sphere of influence of
each city and each special district, as defined by Section 56036,
within the county and enact policies designed to promote the logical
and orderly development of areas within or adjacent to the sphere.
   (b) Prior to a city submitting an application to the commission to
update its sphere of influence, representatives from the city and
representatives from the county shall meet to discuss the proposed
new boundaries of the sphere and explore methods to reach agreement
on development standards and planning and zoning requirements within
the sphere to ensure that development within the sphere occurs in a
manner that reflects the concerns of the affected city and is
accomplished in a manner that promotes the logical and orderly
development of areas within the sphere. If an agreement is reached
between the city and county, the city shall forward the agreement in
writing to the commission, along with the application to update the
sphere of influence. The commission shall consider and adopt a sphere
of influence for the city consistent with the policies adopted by
the commission pursuant to this section, and the commission shall
give great weight to the agreement to the extent that it is
consistent with commission policies in its final determination of the
city sphere.
   (c) If the commission's final determination is consistent with the
agreement reached between the city and county pursuant to
subdivision (b), the agreement shall be adopted by both the city and
county after a noticed public hearing. Once the agreement has been
adopted by the affected local agencies and their respective general
plans reflect that agreement, then any development approved by the
county within the sphere shall be consistent with the terms of that
agreement.
   (d) If no agreement is reached pursuant to subdivision (b), the
application may be submitted to the commission and the commission
shall consider a sphere of influence for the city consistent with the
policies adopted by the commission pursuant to this section.
   (e) In determining the sphere of influence of each local agency,
the commission shall consider and prepare a written statement of its
determinations with respect to each of the following:
   (1) The present and planned land uses in the area, including
agricultural and open-space lands.
   (2) The present and probable need for public facilities and
services in the area.
   (3) The present capacity of public facilities and adequacy of
public services that the agency provides or is authorized to provide.

   (4) The existence of any social or economic communities of
interest in the area if the commission determines that they are
relevant to the agency.
   (5) For an update of a sphere of influence of a city or special
district that provides public facilities or services related to
sewers, municipal and industrial water, or structural fire
protection, that occurs pursuant to subdivision (g) on or after July
1, 2012, the present and probable need for those public facilities
and services of any disadvantaged unincorporated communities within
or adjacent to the existing sphere of influence.
   (f) Upon determination of a sphere of influence, the commission
shall adopt that sphere.
   (g) On or before January 1, 2008, and every five years thereafter,
the commission shall, as necessary, review and update each sphere of
influence.
   (h) In determining a sphere of influence, the commission may
assess the feasibility of governmental reorganization of particular
agencies and recommend reorganization of those agencies when
reorganization is found to be feasible and if reorganization will
further the goals of orderly development and efficient and affordable
service delivery. The commission shall make all reasonable efforts
to ensure wide public dissemination of the recommendations.
   (i) When adopting, amending, or updating a sphere of influence for
a special district, the commission shall establish the nature,
location, and extent of any functions or classes of services provided
by existing districts.
   (j) When adopting, amending, or updating a sphere of influence for
a special district, the commission may require existing districts to
file written statements with the commission specifying the functions
or classes of services provided by those districts. 
   (k) The commission shall not approve a sphere of influence update
that removes a disadvantaged community from a city or a special
district unless the commission makes a finding, based on written
evidence, that the removal of the disadvantaged community will result
in improved service delivery to the community. 
   SEC. 3.   SEC. 4.   Section 56430 of the
Government Code is amended to read:
   56430.  (a) In order to prepare and to update spheres of influence
in accordance with Section 56425, the commission shall conduct a
service review of the municipal services provided in the county or
other appropriate area designated by the commission. The commission
shall include in the area designated for service review the county,
the region, the subregion, or any other geographic area as is
appropriate for an analysis of the service or services to be
reviewed, and shall prepare a written statement of its determinations
with respect to each of the following:
   (1) Growth and population projections for the affected area.
   (2) The location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere of
influence.
   (3) Present and planned capacity of public facilities, adequacy of
public services, and infrastructure needs or deficiencies including
needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere of
influence.
   (4) Financial ability of agencies to provide services.
   (5) Status of, and opportunities for, shared facilities.
   (6) Accountability for community service needs, including
governmental structure and operational efficiencies.
   (7) Any other matter related to effective or efficient service
delivery, as required by commission policy.
   (b) In conducting a service review, the commission shall
comprehensively review all of the agencies that provide the
identified service or services within the designated geographic area.
Where there exists a disadvantaged unincorporated community that
lacks adequate drinking water and wastewater services and
infrastructure within or contiguous with the subject sphere, the
commission shall assess various alternatives for improving efficiency
and affordability of drinking water or wastewater infrastructure and
service delivery within and contiguous to the sphere of influence,
including, but not limited to, the consolidation of governmental
agencies or the extension of services, or both.
   (c) In conducting a service review, the commission shall include a
review of whether the agencies under review, including any public
water system as defined in Section 116275 of the Health and Safety
Code, are in compliance with the California Safe Drinking Water Act
(Chapter 4 (commencing with Section 116270) of Part 12 of Division
104 of the Health and Safety Code) if the information is available
from the State Water Resources Control Board or other sources. A
public water system may satisfy any request for information as to
compliance with that act by submission of the consumer confidence or
water quality report prepared by the public water system as provided
by Section 116470 of the Health and Safety Code.
   (d) The commission may request information, as part of a service
review under this section, from identified public or private entities
that provide wholesale or retail supply of drinking water, including
mutual water companies formed pursuant to Part 7 (commencing with
Section 14300) of Division 3 of Title 1 of the Corporations Code, and
private utilities, as defined in Section 1502 of the Public
Utilities Code.

        (e)  (1)    The commission
shall conduct a service review before, or in conjunction with, but no
later than the time it is considering an action to establish a
sphere of influence in accordance with Section 56425 or 56426.5 or to
update a sphere of influence pursuant to Section 56425. 
   (2) On or before January 1, 2022, and every five years thereafter,
the commission shall conduct service reviews sufficient to have
reviewed the entire territory of the county.  
   (f) The commission shall file a map of the county that identifies
disadvantaged unincorporated communities that lack safe drinking
water or adequate wastewater in electronic format with the Office of
Planning and Research. The Office of Planning and Research shall make
the map available on its Internet Web site.  
   (g) (1) Within two years of identification of a disadvantaged
unincorporated community that lacks safe drinking water or adequate
wastewater services pursuant to this section, the commission shall
recommend a plan based on the alternatives analyzed and shall adopt
any actions necessary to implement the plan, including sphere of
influence updates, extensions of service, or changes of organization.
 
   (2) Actions taken to adopt a plan under this subdivision shall not
be subject to an election or any protest proceedings, as defined in
Section 56069.5, except that the commission shall conduct protest
proceedings for residents of the disadvantaged community. 

   (3) The commission shall not be required to adopt or implement a
plan if the commission finds, based on substantial evidence, that
there is no technical or economically feasible way of connecting the
disadvantaged unincorporated community to an existing system,
considering any financial assistance available from the State Water
Resources Control Board or any other applicable source of financial
assistance. These findings shall not interfere with or inform other
programs or policies designed to expand basic services to
disadvantaged unincorporated communities, including, but not limited
to, Sections 116680 to 116684, inclusive, of the Health and Safety
Code.  
   (h) (1) Notwithstanding Section 56133, 56133.5, or 56375, on and
after January 1, 2022, a commission shall not change the sphere of
influence of, or authorize extension of services by, a qualifying
city or special district if the commission has not done one of the
following:  
   (A) Conducted the analysis required by this section. 

   (B) Adopted a plan or taken the actions required by subdivision
(g).  
   (2) Notwithstanding Section 56133, 56133.5, or 56375, a commission
shall not change the sphere of influence of, or authorize an
extension of services by, a qualifying city or special district if
the city or special district has been designated in a plan developed
pursuant to subdivision (g) to provide water or wastewater services
and the city or special district has not begun providing water or
wastewater service, as identified by the commission's plan, within
three years of being designated in the plan.  
   (3) The prohibition against a change to a sphere of influence or
extension of service pursuant to paragraphs (1) and (2) shall not
apply to either of the following:  
   (A) An application to extend services to, or include in their
sphere of influence, a disadvantaged unincorporated community.
 
   (B) An extension of service authorized pursuant to subdivision (c)
of Section 56133.  
   (i) As used in this section, "a qualifying city or special
district" means a city or special district that provides water
service or wastewater services and serves 500 or more connections.

   SEC. 5.    Section 56653 of the   Government
Code   , as amended by Section 2 of Chapter 784 of the
Statutes of 2014, 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  currently
provided or  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.   territory, if new
services are proposed. 
   (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.
   (c) (1) In the case of a change of organization or reorganization
initiated by a local agency that includes a disadvantaged,
unincorporated community as defined in Section 56033.5, a local
agency may include in its resolution of application for change of
organization or reorganization an annexation development plan adopted
pursuant to Section 99.3 of the Revenue and Taxation Code to improve
or upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community
through the formation of a special district or reorganization of one
or more existing special districts with the consent of each special
district's governing body.
   (2) The annexation development plan submitted pursuant to this
subdivision shall include information that demonstrates that the
formation or reorganization of the special district will provide all
of the following:
   (A) The necessary financial resources to improve or upgrade
structures, roads, sewer, or water facilities or other
infrastructure. The annexation development plan shall also clarify
the local entity that shall be responsible for the delivery and
maintenance of the services identified in the application.
   (B) An estimated timeframe for constructing and delivering the
services identified in the application.
   (C) The governance, oversight, and long-term maintenance of the
services identified in the application after the initial costs are
recouped and the tax increment financing terminates.
   (3) If a local agency includes an annexation development plan
pursuant to this subdivision, a local agency formation commission may
approve the proposal for a change of organization or reorganization
to include the formation of a special district or reorganization of a
special district with the special district's consent, including, but
not limited to, a community services district, municipal water
district, or sanitary district, to provide financing to improve or
upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community,
in conformity with the requirements of the principal act of the
district proposed to be formed and all required formation
proceedings.
   (4) Pursuant to Section 56881, the commission shall include in its
resolution making determinations a description of the annexation
development plan, including, but not limited to, an explanation of
the proposed financing mechanism adopted pursuant to Section 99.3 of
the Revenue and Taxation Code, including, but not limited to, any
planned debt issuance associated with that annexation development
plan.
   (d) This section shall not preclude a local agency formation
commission from considering any other options or exercising its
powers under Section 56375.
   (e) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.
   SEC. 6.    Section 56653 of the   Government
Code   , as added by Section 3 of Chapter 784 of the 
 Statutes of 2014, 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  currently
provided or  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.   territory, if new
services are proposed. 
   (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.
   (c) This section shall become operative on January 1, 2025.
   SEC. 7.    Section 65302.10 of the  
Government Code   is amended to read: 
   65302.10.  (a) As used in this section, the following terms shall
have the following meanings:
   (1) "Community" means an inhabited area within a city or county
that is comprised of no less than 10 dwellings adjacent or in close
proximity to one another.
   (2) "Disadvantaged unincorporated community" means a fringe,
island, or legacy community in which the median household income is
80 percent or less than the statewide median household income.
   (3) "Fringe community" means any inhabited and unincorporated
territory that is within a city's sphere of influence.
   (4) "Island community" means any inhabited and unincorporated
territory that is surrounded or substantially surrounded by one or
more cities or by one or more cities and a county boundary or the
Pacific Ocean.
   (5) "Legacy community" means a geographically isolated community
that is inhabited and has existed for at least 50 years.
   (b) On or before the due date for the next adoption of its housing
element pursuant to Section 65588, each city or county shall review
and update the land use element of its general plan, based on
available data, including, but not limited to, the data and analysis
developed pursuant to  Section   Sections
56378.5 and  56430, of unincorporated island, fringe, or legacy
communities inside or near its boundaries. The updated land use
element shall include all of the following:
   (1) In the case of a city, an identification of each island or
fringe community within the city's sphere of influence that is a
disadvantaged unincorporated community. In the case of a county, an
identification of each legacy community within the boundaries of the
county that is a disadvantaged unincorporated community, but not
including any area within the sphere of influence of any city. This
identification shall include a description of the community and a map
designating its location.
   (2) For each identified community, an analysis of water,
wastewater, stormwater drainage, and structural fire protection needs
or deficiencies.
   (3) An analysis, based on then existing available data, of benefit
assessment districts or other financing alternatives that could make
the extension of services to identified communities financially
feasible.
   (c) On or before the due date for each subsequent revision of its
housing element pursuant to Section 65588, each city and county shall
review, and if necessary amend, its general plan to update the
analysis required by this section  and by Sections 56378.5 and
56430  . 
   (d) On or before the due date for the each subsequent revision of
its housing element pursuant to Section 65588. each city and county
shall incorporate relevant components of the accessibility plan
developed pursuant to Section 56378.5 and the analysis required by
Section 56430 into its land use element. 
   SEC. 4.   SEC. 8.   If the Commission on
State Mandates determines that this act contains 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.
                         
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