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AB-1389 Special districts: change of organization: mitigation of revenue loss.(2019-2020)

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Date Published: 02/22/2019 09:00 PM
AB1389:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1389


Introduced by Assembly Member Eggman

February 22, 2019


An act to amend Section 56824.14 of the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 1389, as introduced, Eggman. Special districts: change of organization: mitigation of revenue loss.
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the sole and exclusive authority and procedure for the initiation conduct, and completion of changes of organization and reorganization for cities and districts by a local agency formation commission established in each county. That act requires that a proposal for certain changes of organization, regarding services provided within a special district, including a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, be made by a resolution of application adopted by the legislative body of that special district that includes specified matters and is submitted with a plan for services, prepared as provided. The act requires the commission to review and approve or disapprove a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, as specified. The act additionally authorizes the commission to impose various terms and conditions to a change of organization or reorganization, including the imposition of taxes, assessments, and other charges for specified purposes.
This bill would authorize the commission to propose, as part of the review and approval of a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, that the special district, to mitigate any loss of property taxes, franchise fees, and other revenues to any other affected local agency, provide payments to the affected local agency from the revenue derived from the proposed exercise of new or different functions or classes of service. The bill would specify that any payment by the special district to an affected local agency in satisfaction of the proposal would not be considered the payment of a tax from which the special district would be exempt, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 56824.14 of the Government Code is amended to read:

56824.14.
 (a) The commission shall review and approve with or without amendments, wholly, partially, or conditionally, or disapprove proposals for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, after a public hearing called and held for that purpose. The commission shall not approve a proposal for the establishment of new or different functions or class of services within the jurisdictional boundaries of a special district unless the commission determines that the special district will have sufficient revenues to carry out the proposed new or different functions or class of services except as specified in paragraph (1).
(1) The commission may approve a proposal for the establishment of new or different functions or class of services within the jurisdictional boundaries of a special district where the commission has determined that the special district will not have sufficient revenue to provide the proposed new or different functions or class of services, if the commission conditions its approval on the concurrent approval of sufficient revenue sources pursuant to Section 56886. In approving a proposal, the commission shall provide that if the revenue sources pursuant to Section 56886 are not approved, the authority of the special district to provide new or different functions or class of services shall not be established.
(2) Unless otherwise required by the principal act of the subject special district, or unless otherwise required by Section 57075 or 57076, the approval by the commission for establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, shall not be subject to an election.
(3) The commission may, as part of an approval of a proposal for the establishment of new or different functions or class of services within all or part of the jurisdictional boundaries of a special district, propose that the special district, to mitigate any loss of property taxes, franchise fees, and other revenues to any other affected local agency, provide payments to the affected local agency from the revenue derived from the proposed exercise of new or different functions or classes of service. Any payment by the special district to an affected local agency in satisfaction of this proposal shall not be considered the payment of a tax from which the special district would be exempt pursuant to Article XIII of the California Constitution.
(b) At least 21 days prior to the date of that hearing, the executive officer shall give mailed notice of the hearing to each affected local agency or affected county, and to any interested party who has filed a written request for notice with the executive officer. In addition, at least 21 days prior to the date of that hearing, the executive officer shall cause notice of the hearing to be published in accordance with Section 56153 in a newspaper of general circulation that is circulated within the territory affected by the proposal proposed to be adopted.
(c) The commission may continue from time to time any hearing called pursuant to this section. The commission shall hear and consider oral or written testimony presented by any affected local agency, affected county, or any interested person who appears at any hearing called and held pursuant to this section.