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AB-2258 Local agency formation commissions: grant program.(2017-2018)

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Date Published: 09/04/2018 09:00 PM
AB2258:v92#DOCUMENT

Enrolled  September 04, 2018
Passed  IN  Senate  August 29, 2018
Passed  IN  Assembly  August 30, 2018
Amended  IN  Senate  August 24, 2018
Amended  IN  Senate  August 06, 2018
Amended  IN  Senate  July 02, 2018
Amended  IN  Assembly  April 23, 2018
Amended  IN  Assembly  April 09, 2018
Amended  IN  Assembly  March 15, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2258


Introduced by Assembly Member Caballero
(Coauthor: Assembly Member Grayson)
(Coauthor: Senator Hertzberg)

February 13, 2018


An act to add and repeal Section 75131 of the Public Resources Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 2258, Caballero. Local agency formation commissions: grant program.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the exclusive authority and procedure for the initiation, conduct, and completion of changes of organization and reorganization for special districts, as specified. The act requires a local agency formation commission in each county to encourage the orderly formation and development of local agencies based upon local conditions and circumstances, among other things.
Existing law also establishes the Strategic Growth Council in state government and assigns to the council certain duties, including providing, funding, and distributing data and information to local governments and regional agencies that will assist in the development and planning of sustainable communities.
This bill would require the Strategic Growth Council, until July 31, 2024, to establish and administer a local agency formation commissions grant program for the payment of costs associated with initiating and completing the dissolution of districts listed as inactive, the payment of costs associated with a study of the services provided within a county by a public agency to a disadvantaged community, as defined, and for other specified purposes, including the initiation of an action, as defined, that is limited to service providers serving a disadvantaged community and is based on determinations found in the study, as approved by the commission. The bill would specify application submission, reimbursement, and reporting requirements for a local agency formation commission to receive grants pursuant to the bill. The bill would require the council, after consulting with the California Association of Local Agency Formation Commissions, to develop and adopt guidelines, timelines, and application and reporting criteria for development and implementation of the program, as specified, and would exempt these guidelines, timelines, and criteria from the rulemaking provisions of the Administrative Procedure Act. The bill would make the grant program subject to an appropriation for the program in the annual Budget Act, and would repeal these provisions on January 1, 2025.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature hereby finds and declares:
(a) Local agency formation commissions play a critical role in the logical formation of local agency boundaries, the promotion of orderly development, and the efficient and effective provision of services.
(b) It is the intent of the Legislature in adding Section 75131 to the Public Resources Code to assist local agency formation commissions in initiating studies of existing government agencies and their provision of services and to consider action based on the results of these studies, including dissolving inactive districts, for the purpose of creating streamlined local government services and improved efficiency in service delivery.

SEC. 2.

 Section 75131 is added to the Public Resources Code, to read:

75131.
 (a) (1) The council shall establish and administer a local agency formation commissions grant program for the purposes described in subdivision (b), subject to an appropriation for this program in the annual Budget Act.
(2) Program funds provided to participating local agency formation commissions shall be used to supplement, and not supplant, existing funding and staffing levels.
(3) Program funds provided to participating local agency formation commissions shall not be used to conduct a service review of municipal services pursuant to Section 56430 of the Government Code.
(4) All local agency formation commissions shall be eligible to participate in the program.
(5) The council shall, after consulting with the California Association of Local Agency Formation Commissions (CALAFCO), adopt guidelines, timelines, and application and reporting criteria for development and implementation of the program to serve the purposes of this section and mutually meet the needs of the council and the CALAFCO.
(6) The council, in granting funds pursuant to the program, shall give preference to a local agency formation commission whose decisions are consistent with the goals of the sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(b) The council shall award grants to local agency formation commissions for any of the following purposes:
(1) The payment of costs associated with initiating and completing the dissolution of a special district that is listed by the Controller as inactive pursuant to Section 56879 of the Government Code.
(2) The payment of costs associated with a study prepared pursuant to Section 56378 of the Government Code of the services provided within a county by a public agency to a disadvantaged community to do either or both of the following:
(A) Identify if there are any efficiencies to be gained in the provision of services.
(B) Determine what alternatives, if any, exist for improving efficiency and affordability of infrastructure and service delivery.
(3) The payment of costs to do any of the following:
(A) Initiate an action described in paragraph (2) of subdivision (a) of Section 56375, other than the dissolution of a special district that is listed by the Controller as inactive pursuant to Section 56879 of the Government Code, that is limited to service providers serving a disadvantaged community and is based on determinations found in a study prepared pursuant to Section 56378 of the Government Code, as approved by the commission.
(B) Develop and implement reorganization plans with timelines for expected outcomes.
(C) Incentivize service providers to work with the local agency formation commission to develop and implement reorganization plans with timelines for expected outcomes.
(c) (1) In order to obtain a grant award pursuant to paragraph (1) of subdivision (b), a local agency formation commission shall submit to the council an application for reimbursement of the costs of the dissolution proceedings, in the form and manner specified by the council. At a minimum, the application shall include all of the following:
(A) The notification provided to the commission by the Controller of the inactive district(s) and the requirement to initiate dissolution proceedings.
(B) A full budget accounting for costs of the dissolution.
(C) All reports and documents pertaining to the final dissolution action.
(2) The council shall review the application for reimbursement and, provided all documentation is in order, issue reimbursement to the local agency formation commission within 60 days of receipt of the application.
(d) (1) In order to obtain a grant award pursuant to paragraph (2) of subdivision (b) for purposes of conducting a study, a local agency formation commission shall submit to the council an application, in the form and manner specified by the council. At a minimum, the application shall include all of the following:
(A) A resolution adopted by the commission authorizing submission of the grant application and a commitment to review and consider the recommendations and potential actions contained in the study.
(B) A full budget accounting for estimated costs of the study to be performed.
(C) A full explanation of the reason for the study.
(D) The most recent completed municipal service review or study in which determinations were made by the local agency formation commission indicating the agency to be studied is a candidate for a change of organization or reorganization.
(E) An identification of the disadvantaged community that is expected to benefit from the study.
(2) The council shall review the applications submitted pursuant to paragraph (1), select the program participants based on criteria that furthers the purposes of this section, and notify the participants of their selection within two months of receiving the application. Funds shall be issued by the council to the local agency formation commission within 60 days of notification.
(3) A local agency formation commission that receives a grant pursuant to paragraph (2) of subdivision (b) shall commence the study within 30 days of receipt of funding and shall complete the study within two years of commencing the study. Upon completion of the study, the local agency formation commission shall do all of the following:
(A) Submit to the council a final report within 30 days of the completion of the study and the commission’s adoption of a resolution making determinations. The report shall be in the form and manner specified by the council. At a minimum, the report shall include all of the following:
(i) The full study conducted.
(ii) The resolution making determinations as adopted by the local agency formation commission.
(iii) A full budget accounting report of the funds used.
(iv) A reimbursement of any unexpended funds.
(v) The local agency formation commission’s plan for future action based on the study’s conclusions.
(B) Upon the request of the council, participating local agency formation commissions shall provide the council with any supplemental information necessary to substantiate the information contained in the report submitted pursuant to this subdivision.
(4) A local agency formation commission shall repay the entire amount of the grant awarded pursuant to this subdivision to the council if the study funded pursuant to this subdivision is not completed within two years of receipt of the grant funds. The local agency formation commission shall make this repayment within 30 days from the two-year anniversary of receipt of the grant funds.
(e) (1) A local agency formation commission that elects to apply for a grant pursuant to paragraph (3) of subdivision (b) shall submit to the council an application, in the form and manner specified by the council. At a minimum, the application shall include all of the following:
(A) A resolution adopted by the commission authorizing submission of the application for purposes defined in the application.
(B) Change of organization or reorganization plans with timelines for expected outcomes.
(C) A full budget accounting for estimated costs of the action to be performed.
(D) The most recent completed study in which determinations were made by the local agency formation commission indicating the agency should be reorganized or dissolved, or, if there exists a municipal services review or study with like determinations that is no more than five years old.
(E) An identification of the disadvantaged community that is expected to benefit from the action.
(2) The council shall review the applications submitted pursuant to paragraph (3) of subdivision (b), select the program participants based on criteria that furthers the purposes of this section, and notify the participants of their selection within two months of receiving the application. Funds shall be issued by the council to the local agency formation commission within 60 days of notification.
(3) A local agency formation commission that receives funds pursuant to paragraph (3) of subdivision (b) shall commence action within 30 days of receipt of funding.
(4) A local agency formation commission that receives funds pursuant to paragraph (3) of subdivision (b) shall hold a public hearing to consider the action described in paragraph (2) of subdivision (a) of Section 56375, except the dissolution of a special district that is listed by the Controller as inactive pursuant to Section 56879 of the Government Code. If the action is approved by a local agency formation commission, that local agency formation commission shall order the change of organization or reorganization subject to Section 57075 of the Government Code, except that the level of protest necessary to require an election for confirmation by the registered voters residing within the affected territory shall be determined by the corresponding percentage of registered voters or land owners required to qualify a recall on the ballot pursuant to subdivision (a) or (d), as appropriate, of Section 11221 of the Elections Code. The calculation of registered voters shall be made pursuant to subdivision (b) of that section. Upon completion of the change of organization or reorganization, the local agency formation commission that receives funds pursuant to paragraph (3) of subdivision (b) shall do both of the following:
(A) Submit to the council a final report within 30 days of the final action. The report shall be in the form and manner specified by the council. At a minimum, the report shall include all of the following:
(i) The final action taken by the local agency formation commission.
(ii) If proceedings were terminated as a result of protest, all necessary information pertinent to support that fact.
(iii) All reports and documents pertaining to the final action or protest action.
(iv) A full budget accounting report of the funds used.
(v) The reimbursement of any unexpended funds.
(B) Upon the request of the council, the participating local agency formation commission shall provide the council with any supplemental information necessary to substantiate the information contained in the report submitted pursuant to this subdivision.
(f) The Legislature finds and declares that there is a compelling public interest in allowing the council to implement and administer this section as expeditiously as possible, and to thereby accelerate local agency formation commission efforts. The guidelines, timelines, and application and reporting criteria adopted by the council for purposes of this section shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) for the purpose of carrying out the duties enumerated in this section.
(g) For the purposes of this section, the following terms shall apply:
(1) “Disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.
(2) “Local agency formation commission” means a local agency formation commission that operates in a county pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code).
(h) This section shall not be interpreted to effect the independence or discretion exercised by a local agency formation commission in carrying out an action pursuant to this section.
(i) This section shall become inoperative on July 31, 2024, and, as of January 1, 2025, is repealed.