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AB-2471 Health care districts: dissolution.(2015-2016)

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Amended  IN  Senate  August 01, 2016
Amended  IN  Assembly  May 10, 2016

CALIFORNIA LEGISLATURE— 2015–2016 REGULAR SESSION

Assembly Bill No. 2471


Introduced by Assembly Member Quirk
(Coauthor: Assembly Member Bonta)

February 19, 2016


An act to amend Sections 57077.1 and 57103 of the Government Code, and to add Chapter 8 (commencing with Section 32495) to Division 23 of the Health and Safety Code, relating to health care districts.


LEGISLATIVE COUNSEL'S DIGEST


AB 2471, as amended, Quirk. Health care districts: dissolution.
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 by local agency formation commissions. Existing law establishes the procedures for the dissolution of the existence of a district and sets forth provisions for winding up the affairs of a dissolved district, as specified. Existing law generally authorizes the dissolution of a district without voter approval, except as specified. Notwithstanding those provisions, existing law subjects the dissolution of a health care district to voter approval.
This bill would require the Alameda County local agency formation commission to order the dissolution of the Eden Township Healthcare District if that health care district meets certain criteria, as specified. The bill would subject a dissolution under these provisions to specified provisions of the act that require dissolution by voter approval only if a majority protest exists, as specified. By requiring a higher level of service from the Alameda County local agency formation commission to analyze the criteria described above, the bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Eden Township Healthcare District in Alameda County.
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   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 57077.1 of the Government Code is amended to read:

57077.1.
 (a) If a change of organization consists of a dissolution, the commission shall order the dissolution without confirmation of the voters, except if the proposal meets the requirements of subdivision (b), the commission shall order the dissolution subject to confirmation of the voters.
(b) The commission shall order the dissolution subject to the confirmation of the voters as follows:
(1) If the proposal was not initiated by the commission, and if a subject agency has not objected by resolution to the proposal, the commission has found that protests meet one of the following protest thresholds:
(A) In the case of inhabited territory, protests have been signed by either of the following:
(i) At least 25 percent of the number of landowners within the affected territory who own at least 25 percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a result of residing within, or owning land within, the affected territory.
(B) In the case of a landowner-voter district, that the territory is uninhabited and that protests have been signed by at least 25 percent of the number of landowners within the affected territory owning at least 25 percent of the assessed value of land within the territory.
(2) If the proposal was not initiated by the commission, and if a subject agency has objected by resolution to the proposal, written protests have been submitted as follows:
(A) In the case of inhabited territory, protests have been signed by either of the following:
(i) At least 25 percent of the number of landowners within any subject agency within the affected territory who own at least 25 percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a result of residing within, or owning land within, any subject agency within the affected territory.
(B) In the case of a landowner-voter district, that the territory is uninhabited and protests have been signed by at least 25 percent of the number of landowners within any subject agency within the affected territory, owning at least 25 percent of the assessed value of land within the subject agency.
(3) If the proposal was initiated by the commission, and regardless of whether a subject agency has objected to the proposal by resolution, written protests have been submitted that meet the requirements of Section 57113.
(c) Notwithstanding subdivisions (a) and (b) and Section 57102, Sections 57102 and 57103, if a change of organization consists of the dissolution of a district that is consistent with a prior action of the commission pursuant to Section 56378, 56425, or 56430, the commission may do either of the following:
(1) If the dissolution is initiated by the district board, immediately approve and order the dissolution without an election or protest proceedings pursuant to this part.
(2) If the dissolution is initiated by an affected local agency, by the commission pursuant to Section 56375, by the Alameda County local agency formation commission pursuant to Section 32495 of the Health and Safety Code, or by petition pursuant to Section 56650, order the dissolution after holding at least one noticed public hearing, and after conducting protest proceedings in accordance with this part. Notwithstanding any other law, the commission shall terminate proceedings if a majority protest exists in accordance with Section 57078. If a majority protest is not found, the commission shall order the dissolution without an election.

SEC. 2.

 Section 57103 of the Government Code is amended to read:

57103.
 Any order in any resolution adopted by the commission on or after January 1, 1986, ordering the dissolution of a local hospital district, organized pursuant to Division 23 (commencing with Section 32000) of the Health and Safety Code, is subject to confirmation by the voters, except as set forth in Chapter 8 (commencing with Section 32495) of Division 23 of the Health and Safety Code.

SEC. 3.

 Chapter 8 (commencing with Section 32495) is added to Division 23 of the Health and Safety Code, to read:
CHAPTER  8. Dissolution

32495.
 (a) The Alameda County local agency formation commission shall review the compliance of the Eden Township Healthcare District with the criteria set forth in subdivision (b). If all of the criteria under subdivision (b) are met, the commission shall order the dissolution of the district pursuant to paragraph (2) of subdivision (c) of Section 57077.1 of the Government Code.
(b) For purposes of subdivision (a):
(1) The health care district does not currently receive a property tax allocation.
(2) The health care district has substantial net assets.
(3) The health care district does not provide a direct health care service.
(4) The health care district fails to comply with Section 32496, if that section is added by Assembly Bill 2737 of the 2015–16 Regular Session of the Legislature.
(c) If the commission orders the dissolution of the district pursuant to subdivision (a), the dissolution shall be subject to the provisions of the dissolution process, as set forth in paragraph (2) of subdivision (c) of Section 57077.1 of the Government Code.
(d) For purposes of this section:
(1) “Direct health care service” means the ownership or operation of a hospital, medical clinic, wellness center, or ambulance service.
(2) “District” or “health care district” means the Eden Township Healthcare District.
(3) “Local agency formation commission” or “commission” means the Alameda County local agency formation commission.

SEC. 4.

 The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances relating to the Eden Township Healthcare District in Alameda County.

SEC. 5.

 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.