BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 1138
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 1138 (Pescetti)
        As Amended June 25, 2002
        2/3 vote.  Urgency
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(May 21, 2002)  |SENATE: |38-0 |(June 27, 2002)      |
         ---------------------------------------------------------------------- 
                  (vote not relevant)

         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |9-0  |(July 2, 2002)      |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 

        Original Committee Reference:   J., E.D. & E.  

         SUMMARY  :  Sets August 19, 2002, as the deadline to close the  
        protest hearing on the proposed Rancho Cordova incorporation, and  
        extends the deadline for calling the election on the proposed  
        incorporation.

         The Senate amendments  delete the Assembly version of this bill, and  
        instead:

        1)Find and declare that a special law is necessary due to the  
          unique circumstances faced by the unincorporated community of  
          Rancho Cordova in the County of Sacramento.

        2)Set August 19, 2002, as the deadline to close the protest hearing  
          on the proposed Rancho Cordova incorporation.  

        3)Change the deadline for calling the election on the proposed  
          Rancho Cordova incorporation from 88 days to 78 days before the  
          next regular election date.

        4)Add an urgency clause.

         EXISTING LAW  :

        1)Specifies that a protest hearing of a proposed incorporation may  
          be continued from time-to-time not to exceed 60 days from the  
          date specified for the hearing in the notice.

        2)Requires that the election on the question of an incorporation  








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          shall be called and held on the next regular election date  
          occurring at least 88 days after the date upon which the  
          resolution calling the election was adopted by the conducting  
          authority.

         AS PASSED BY THE ASSEMBLY  , this bill allowed the Infrastructure and  
        Economic Development Bank to provide financing to public and  
        nonpublic parties for repowering of existing electrical facilities  
        and for planning, design, construction, and startup of peak demand  
        facilities of up to 150 megawatts.
         
         FISCAL EFFECT  :  None
         
         COMMENTS  :  Successful city incorporations require five steps:  1)  
        filing an application with the local agency formation commission  
        (LAFCO); 2) LAFCO review and approval; 3) a protest hearing by the  
        "conducting authority;" 4) an election; and, 5) filing formal  
        documents.
         
        If 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, LAFCO is now the conducting authority  
        [AB 2838 (Hertzberg), Chapter 761, Statutes of 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.  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 for up to  








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        60 days, until September 16.  If the county supervisors take that  
        long, they can postpone the Rancho Cordova incorporation election  
        until 2004.
         
        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 makes 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,  
        this bill keeps the Rancho Cordova incorporation on track.
         
        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.  While the 60-day time period  
        could conceivably be used for purposes of delay, complex issues  
        surrounding incorporation may require the supervisors to use the  
        full period to reach an informed decision.  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. 

         
        Analysis Prepared by  :  Joanne Wong / L. GOV. / (916) 319-3958


                                                                             
                                                                             
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