BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                          Senator Tom Torlakson, Chair


          BILL NO:  AB 1138                     HEARING:  6/19/02
          AUTHOR:  Pescetti                     FISCAL:  No
          VERSION:  6/10/02                     CONSULTANT:  Detwiler
          
                     RANCHO CORDOVA INCORPORATION (URGENCY)

                           Background and Existing Law  

          Successful city incorporations require five steps:
           Filing an application with the local agency formation  
            commission (LAFCO).
           LAFCO review and approval.
           A protest hearing by the "conducting authority."
           An election.
           Filing formal documents.

          If the LAFCO approves a proposed incorporation, the  
          conducting authority must hold a noticed public hearing to  
          measure any protests.  The conducting authority can  
          continue this protest hearing for up to 60 days.  If a  
          majority of the registered voters within the proposed new  
          city file written protests, the conducting authority must  
          terminate the proceedings.  If there is no majority  
          protest, the conducting authority must adopt a formal  
          resolution, calling an election on the question of  
          cityhood.  The election occurs on the next regular election  
          date that is at least 88 days after the conducting  
          authority adopts its resolution.

          Before 2001, a county board of supervisors was the  
          "conducting authority" for city incorporation proposals.   
          As part of a major overhaul of boundary laws, the LAFCO is  
          now the conducting authority (AB 2838, Hertzberg, 2000).   
          Boundary change proposals filed before January 1, 2001  
          still follow the prior law.

          In late 1999, community leaders filed their application to  
          incorporate Rancho Cordova with the Sacramento LAFCO.  The  
          Sacramento LAFCO approved the proposed Rancho Cordova  
          incorporation on May 22, 2002.  As the conducting  
          authority, the Sacramento County Board of Supervisors will  
          open the protest hearing on July 16.  The deadline to place  
          items on the November 5, 2002 ballot is August 9.  State  
          law allows the county supervisors to continue their hearing  




          AB 1138 -- 6/10/02 -- Page 2



          for up to 60 days, until September 16.  If the county  
          supervisors take that long, they can postpone the Rancho  
          Cordova incorporation election until 2004.


                                   Proposed Law  

          Assembly Bill 1138 sets August 19, 2002 as the deadline to  
          close the protest hearing on the proposed Rancho Cordova  
          incorporation.  AB 1138 extends the deadline for calling  
          the election on the proposed Rancho Cordova incorporation  
          from 88 days to 78 days before the next regular election  
          date.


                                     Comments  

          1.   The long and winding road  .  Achieving cityhood requires  
          synchronizing complicated statutes with community politics.  
           Some incorporations take two or three attempts before they  
          succeed.  Past resistance by the Sacramento County Board of  
          Supervisors make the cityhood advocates worry that the  
          county supervisors may take advantage of the state law and  
          use the full 60 days for the protest hearing.  That delay  
          would keep Rancho Cordova off the November ballot and push  
          the election out to 2004.  Although completely legal, that  
          delay could dissipate the incorporation drive's political  
          momentum.  By shortening the deadlines for the protest  
          hearing and for calling the election, AB 1138 keeps the  
          Rancho Cordova incorporation on track.

          2.   Public trust, political trust  .  Besides representing  
          the political interests of individual unincorporated  
          communities, county supervisors are also responsible for  
          running state-mandated programs that advance the public  
          health and social welfare.  They must balance this public  
          trust with their constituents' political desires.  With  
          looming cuts in state funding, county supervisors must be  
          prudent in all they do.  Placing the Rancho Cordova  
          incorporation on the November 2002 ballot may satisfy local  
          political desires but it may not be fiscally prudent.  The  
          Committee may wish to consider whether the Legislature  
          should alter the standard incorporation schedule for just  
          one unincorporated community.

          3.   Special legislation  .  The California Constitution  





          AB 1138 -- 6/10/02 -- Page 3



          prohibits special legislation if a general law could apply  
          (Article IV, 16 [b]).  The California Constitution also  
          requires the Legislature to adopt a uniform procedure for  
          forming new cities (Article XI, 2 [a]).  The  
          Cortese-Knox-Hertzberg Act is the uniform state law under  
          which local officials and voters incorporate new cities.   
          Special legislation is acceptable when special  
          circumstances don't fit the general statutes.  Because AB  
          1138 singles out Rancho Cordova for special treatment, the  
          Committee may wish to consider amending the bill to insert  
          the so-called "special legislation disclaimer" along with  
          an explanation about why the current law is inadequate.

          4.   Legislative history  .  When it passed the Assembly in  
          May 2001, Mr. La Suer's bill allowed the California  
          Infrastructure and Economic Development Bank to make  
          low-interest loans to private companies to build power  
          plants.  The June 10, 2002 amendments removed both the  
          bill's content and author, changing it into Mr. Pescetti's  
          measure relating to the Rancho Cordova incorporation.































          AB 1138 -- 6/10/02 -- Page 4



                                 Assembly Actions  

          Not relevant to the June 10 version of the bill.
           

                         Support and Opposition  (6/13/)

           Support  :  Unknown.

           Opposition  :  Unknown.