AB 851, as amended, Mayes. Local government: organization: disincorporations.
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. The act requires a local agency or school district that initiates proceedings for a change of local government organization or reorganization, by submitting a resolution of application to a local agency formation commission, to also submit a plan for providing services within the affected territory, as specified.
This bill would, in the case of a disincorporation or reorganization that includes a disincorporation, require the plan for services to include specific provisions, including, among others, an enumeration and description of the services currently provided by the city proposed for disincorporation.
The act requires a petitioner or legislative body desiring to initiate proceedings to submit an application to the executive officer of the local agency formation commission, and requires the local agency formation commission, with regard to an application that includes an incorporation, to immediately notify all affected local agencies and any applicable state agency, as specified.
This bill would extend that requirement to an application that includes a disincorporation.
Existing law prohibits the commission from approving or conditionally approving a proposal for an incorporation unless the commission finds, among other things, that the proposal is consistent with the intent of the act, the incorporation is consistent with the spheres of influence of affected local agencies, and the proposed city is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the 3 fiscal years following incorporation.
This bill would additionally prohibit the commission from approving or conditionally approving a proposal that includes a disincorporation unless the commission finds, among other things, that the disincorporation is consistent with the intent of the act, the disincorporation will address necessary changes to spheres of influence of affected agencies, and the service responsibilities of the city proposed for disincorporation have been assigned, as specified.
Existing law requires the executive officer of the commission to prepare a comprehensive fiscal analysis for any proposal that includes an incorporation, as specified.
This bill would additionally require the executive officer to prepare a comprehensive fiscal analysis for any proposal that includes a disincorporation, as specified.
Existing law requires the commission to determine the amount of property tax revenue to be exchanged by the affected local agency for a proposal that includes the incorporation of a city, and sets forth the procedures to be followed in making that determination.
This bill would additionally require the commission to determine the amount of property tax revenue to be exchanged by the affected city and any successor or affected local agency for a proposal that includes a disincorporation of a city, and would set forth the procedures to be followed in making that determination.
The bill would additionally require the commission to determine, where the proposal includes the disincorporation of a city with the assignment of property tax revenues to a successor, the increase of the appropriations limit for a successor, if the successor is an existing entity, or the appropriations limit for a new special district, as specified.
The bill would state the intent of the Legislature that a proposal that includes a disincorporation of a city result in a determination that the debt or contractual obligations and responsibilities of the city being disincorporated be the responsibility of the same territory for repayment. The bill would require the city being disincorporated to provide a written statement prior to issuance of a certificate for filing for a proposal that includes a disincorporation that includes specified information relating to its debts and contractual obligations.
Existing law authorizes the commission, in approving a disincorporation of a city, the dissolution of a district, or the reorganization or consolidation of agencies that result in the dissolution of one or more districts or disincorporation of one or more cities, to make the approval conditional upon the agency being dissolved not approving any increase in compensation or benefits for specified officers of the agency, or appropriating, encumbering, expending, or otherwise obligating any revenue of the agency beyond that provided in the current budget at the time the dissolution is approved by the commission, unless it first finds that an emergency exists.
This bill would modify this provision to authorize the commission to make the approval conditional upon prohibiting the district that is being dissolved or the city that is being disincorporated from approving any increase in compensation or benefits for specified officers of the agency, or appropriating, encumbering, expending, or otherwise obligating any revenue of the agency beyond that provided in the current budget at the time the dissolution is approved by the commission, unless it first finds that an emergency exists.
The act also authorizes the commission to require a single question appearing on the ballot upon issues of annexation and reorganization in any election at which the questions of annexation and district reorganization or incorporation and district reorganization are to be considered at the same time.
This bill would additionally apply these provisions to a disincorporation and district reorganization.
Existing law requires every public officer of a city being disincorporated, prior to the effective date of the disincorporation, to turn the public property in his or her possession over to the board of supervisors.
This bill would repeal this provision.
The act requires the commission, after ascertaining that the disincorporation has carried, to determine and certify in a written statement to the board of supervisors the indebtedness of the city, the amount of money in its treasury, and the amount of any tax levy or other obligation due the city that is unpaid or has not been collected.
This bill would repeal this provision.
Existing law requires the board of supervisors to make specified determinations if the commission does not provide the board with a statement of those determinations.
This bill would repeal this provision.
Existing law requires the tax collector to collect any tax that has been levied by a disincorporated city that remains uncollected when due and pay it into the county treasury.
This bill would provide that the tax collected and paid into the county treasury is on behalf of the designated successor or county to wind up affairs of the disincorporated city.
Existing law requires the board of supervisors of a county to cause taxes to be levied and collected from within the territory formerly included within a disincorporated city, if there is not sufficient money in the treasury of a disincorporated city to the credit of the special fund to pay any city indebtedness as it becomes due. Existing law provides that any taxes levied pursuant to this provision are to be assessed, levied, and collected in the same manner and at the same time as other county taxes, and are additional taxes upon the property included within the territory of the disincorporated city.
This bill would repeal these provisions.
Existing law requires the board of supervisors to levy a special tax upon all property within the disincorporated city if the revenues from specified public utilities are not sufficient for the administration, conduct, or improvement of the public utility.
This bill would repeal this provision.
Existing law requires the board of supervisors to annually, at the time other county taxes are levied and collected, to levy and collect a special tax on the remainder of the territory of a disincorporated city sufficient to pay the balance of the debt, and pay that sum to the city treasurer. Existing law requires the city treasurer to pay the bonded indebtedness as it becomes due with the proceeds of those taxes.
This bill would repeal these provisions.
Existing law provides that on and after the effective date of a disincorporation, the territory of the disincorporated city, all inhabitants within the territory, and all persons formerly entitled to vote by reason of residing within the territory cease to be subject to the jurisdiction of the disincorporated city and have none of the rights or duties of inhabitants or voters of a city.
This bill would additionally provide that as of the effective date of a disincorporation, the general plan of the disincorporated city that was in effect immediately prior to the effective date of the disincorporation constitutes the community plan of the county for the territory of the disincorporated city, the zoning ordinances of the disincorporated city that were in effect immediately prior to the effective date of the disincorporation constitute the zoning ordinances of the county for that territory, and any conditional use permit or legal nonconforming use that was in place immediately prior to the effective date of the disincorporation remains in force pursuant to the community plan and zoning ordinances. The bill would provide that any use of land that was authorized under the general plan and zoning ordinances immediately prior to the effective date of the disincorporation continues to be authorized for as long a period as may be required by the California Constitution or the United States Constitution.
Existing law requires a county auditor to adjust the allocation of property tax revenues for local agencies whose service area or service responsibility may be altered by specified jurisdictional changes.
This bill would include a city disincorporation and dissolved district in those jurisdictional changes.
begin delete Byend delete
increasing the duties of the county auditor, this bill would impose a state-mandated local program.
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. State-mandated local program: yes.
The people of the State of California do enact as follows:
(a) Except as provided in Section 7282 of the Revenue
4and Taxation Code, the legislative body of any city, county, or
5district may, following notice and public hearing, propose by
6ordinance or resolution the adoption of a special tax. The ordinance
7or resolution shall include the type of tax and rate of tax to be
8levied, the method of collection, and the date upon which an
9election shall be held to approve the levy of the tax. The
10proposition shall be submitted to the voters of the city, county, or
11district, or a portion thereof, and, upon the approval of two-thirds
12of the votes cast by voters voting upon the proposition, the city,
13county, or district may levy the tax.
14(b) The legislative body of a city, or district, may
15the collection of the special tax in the same manner and subject to
16the same penalty as, or with, other charges and taxes fixed and
17collected by the city, or district, or, by agreement with the county,
18by the county on behalf of the city, or district. If the special taxes
19are collected by the county on behalf of the city, or district, the
20county may deduct its reasonable costs incurred for the service
21before remittal of the balance to the city.
22(c) The legislative body of a local agency which is conducting
23proceedings for the incorporation of a city, the formation of a
24district, a change of organization, a reorganization, a change of
25organization of a city,
begin delete orend delete a municipal reorganization, may propose by
ordinance or resolution
2the adoption of a special tax in accordance with the provisions of
3subdivision (a) on behalf of an affected city or district.
4(d) As used in this section “district” means an agency of the
5state, formed pursuant to general law or special act, for the local
6performance of governmental or proprietary functions within
Section 56653.1 is added to the Government Code, to
In the case of a disincorporation or reorganization
12that includes a disincorporation, the plan for services required by
13subdivision (a) of Section 56653 shall include the following:
14(a) An enumeration and description of the services currently
15provided by the city proposed for disincorporation and an
16identification of the entity or entities proposed to assume
17responsibility for the services following completion of
19(b) An enumeration and description of each service proposed
20to be discontinued or transferred, the current financing of the
21service or services, and any method of financing proposed by the
23(c) A delineation of any existing financing of services currently
24provided to include, but not be limited to, bonds, assessments,
25community facility district governance, general taxes, special taxes,
26other charges, and joint powers authorities or agreements.
27(d) An indication of any current bankruptcy proceeding,
28including, but not limited to, status and exit plan.
29(e) An indication of any current order relating to services
30provided by the city proposed for disincorporation by any agency,
31department, office, or other division of the state, including, but
32not limited to, a cease and desist order or water prohibition order.
33(f) A written
statement from each entity identified pursuant to
34subdivision (a) that it has received a copy of the plan for services
35submitted pursuant to this section.
36(g) Any other information that the executive officer may deem
37necessary to evaluate the plan for services submitted.
Section 56658 of the Government Code is amended
(a) Any petitioner or legislative body desiring to initiate
2proceedings shall submit an application to the executive officer of
3the principal county.
4(b) (1) Immediately after receiving an application and before
5issuing a certificate of filing, the executive officer shall give mailed
6notice that the application has been received to each affected
7agency, the county committee on school district organization, and
8each school superintendent whose school district overlies the
9affected territory. The notice shall generally describe the proposal
10and the affected territory. The executive officer shall not be
11required to give notice pursuant to this subdivision if a local agency
12has already given notice pursuant to subdivision (c) of Section
14(2) It is the intent of the Legislature that a proposal for
15incorporation or disincorporation shall be processed in a timely
16manner. With regard to an application that includes an
17incorporation or disincorporation, the executive officer shall
18immediately notify all affected local agencies and any applicable
19state agencies by mail and request the affected agencies to submit
20the required data to the commission within a reasonable timeframe
21established by the executive officer. Each affected agency shall
22respond to the executive officer within 15 days acknowledging
23receipt of the request. Each affected local agency and the officers
24and departments thereof shall submit the required data to the
25executive officer within the timelines established by the executive
26officer. Each affected state agency and the officers and departments
27thereof shall submit the required data to the executive officer within
28the timelines agreed upon by the executive officer and the affected
30(3) If a special district is, or as a result of a proposal will be,
31located in more than one county, the executive officer of the
32principal county shall immediately give the executive officer of
33each other affected county mailed notice that the application has
34been received. The notice shall generally describe the proposal
35and the affected territory.
36(c) Except when a commission is the lead agency pursuant to
37Section 21067 of the Public Resources Code, the executive officer
38shall determine within 30 days of receiving an application whether
39the application is complete and acceptable for filing or whether
40the application is incomplete.
P10 1(d) The executive officer shall not accept an application for
2filing and issue a certificate of filing for at least 20 days after giving
3the mailed notice required by subdivision (b). The executive officer
4shall not be required to comply with this subdivision in the case
5of an application which meets the requirements of Section 56662
6or in the case of an application for which a local agency has already
7given notice pursuant to subdivision (c) of Section 56654.
8(e) If the appropriate fees have been paid, an application shall
9be deemed accepted for filing if no determination has been made
10by the executive officer within the 30-day period. An executive
11officer shall accept for filing, and file, any application submitted
12in the form prescribed by the commission and containing all of
13the information and data required pursuant to Section 56652.
14(f) When an application is accepted for filing, the executive
15officer shall immediately issue a certificate of filing to the
16applicant. A certificate of filing shall be in the form prescribed by
17the executive officer and shall specify the date upon which the
18proposal shall be heard by the commission. From the date of
19issuance of a certificate of filing, or the date upon which an
20application is deemed to have been accepted, whichever is earlier,
21an application shall be deemed filed pursuant to this division.
22(g) If an application is determined not to be complete, the
23executive officer shall immediately transmit that determination to
24the applicant specifying those parts of the application which are
25incomplete and the manner in which they can be made complete.
26(h) Following the issuance of the certificate of filing, the
27executive officer shall proceed to set the proposal for hearing and
28give published notice thereof as provided in this part. The date of
29the hearing shall be not more than 90 days after issuance of the
30certificate of filing or after the application is deemed to have been
31accepted, whichever is earlier. Notwithstanding Section 56106,
32the date for conducting the hearing, as determined pursuant to this
33subdivision, is mandatory.
Section 56770 is added to the Government Code, to
The commission shall not approve or conditionally
38approve any proposal that includes a disincorporation, unless,
39based on the entire record, the commission makes all of the
P11 1(a) The proposed disincorporation is consistent with the intent
2of this division to provide for a sustainable system for the delivery
4(b) The commission has considered the service reviews of
5municipal services and spheres of influence of the affected local
6agencies, and the disincorporation will address the necessary
7changes to those spheres of influence, if any.
8(c) It has reviewed the comprehensive fiscal analysis prepared
9pursuant to Section 56804.
10(d) It has reviewed the executive officer’s report and
11recommendation prepared pursuant to Section 56665, and the oral
12or written testimony presented at its public hearing.
13(e) The service responsibilities of the city proposed for
14disincorporation have been assigned through terms and conditions
15authorized by Sections 56885.5, 56886, and 57302, and Chapter
165 (commencing with Section 57400) of Part 5.
Section 56804 is added to the Government Code, to
For any proposal that includes a disincorporation, the
21executive officer shall prepare, or cause to be prepared by contract,
22a comprehensive fiscal analysis. This analysis shall become part
23of the report required pursuant to Section 56665. Data used for the
24analysis shall be from the most recent fiscal year for which data
25is available, preceding the issuances of the certificate of filing.
26When data requested by the executive officer in the notice to
27affected agencies, pursuant to paragraph (2) of subdivision (b) of
28Section 56658, is unavailable, the analysis shall document the
29source and methodology of the data used. The analysis shall review
30and document each of the following:
31(a) The direct and indirect costs incurred by the city proposed
32for disincorporation for providing public services and facilities
33during the three fiscal years immediately preceding the submittal
34of the proposal for disincorporation.
35(b) The sources of funding, if any, available to the entities
36proposed to assume the obligations of the city being
37disincorporated and the related costs, including all actual direct
38and indirect costs, in provision of existing services.
P12 1(c) When determining costs, the executive officer shall also
2include all direct and indirect costs of any public services that are
3proposed to be transferred to state agencies for delivery.
4(d) The revenues of the city being disincorporated during the
5three fiscal years immediately preceding the initiation of the
7(e) Any other information and analysis needed to make the
8findings required by Section 56770.
Section 56813 is added to the Government Code, to
(a) If the proposal includes the disincorporation of a
13city, as defined in Section 56034, the commission shall determine
14the amount of property tax revenue to be exchanged by the affected
15city and any successor or affected local agency pursuant to this
17(b) The commission shall notify the county auditor of the
18proposal, the affected local agencies to be extinguished, and the
19services proposed to be transferred to new jurisdictions, and
20identify for the auditor the changes to occur.
21(c) If the proposal would not transfer all of the service
22responsibilities of the disincorporating city to the affected county
23or to a single affected agency, the commission and the county
24 auditor shall do all of the following:
25(1) The county auditor shall determine the proportion that the
26amount of property tax revenue derived by the city being
27disincorporated pursuant to subdivision (b) of Section 93 of the
28Revenue and Taxation Code bears to the total amount of revenue
29from all sources, available for general purposes, received by the
30city being disincorporated in the prior fiscal year and provide their
31response within 15 days of receiving notification from the
32commission pursuant to subdivision (b). For purposes of making
33this determination and the determination required by paragraph
34(3), “total amount of revenue from all sources available for general
35purposes” means the total amount of revenue which the city being
36disincorporated may use on a discretionary basis for any purpose
37and does not include any of the following:
38(A) Revenue that, by statute or ordinance, is required to be used
39for a specific purpose.
P13 1(B) Revenue from fees, charges, or assessments that are levied
2to specifically offset the cost of particular services and that do not
3exceed the cost reasonably borne in providing these services.
4(C) Revenue received from the federal government that is
5required to be used for a specific purpose.
6(2) The commission shall determine, based on information
7submitted by the city being disincorporated, an amount equal to
8the total net cost to that city during the prior fiscal year of providing
9those services that an affected agency will assume within the area
10subject to the proposal. For purposes of this paragraph, “total net
11cost” means the total direct and indirect costs that were funded by
12general purpose revenues of the city being disincorporated and
13excludes any portion of the total cost that was funded by any
14revenues of that agency that are specified in subparagraphs (A),
15(B), and (C) of paragraph (1).
16(3) For the services to be transferred to each affected local
17agency, the commission shall multiply the amount determined
18pursuant to paragraph (2) by the proportion determined pursuant
19to paragraph (1) to derive the amount of property tax revenue used
20to provide services by the city being disincorporated during the
21prior fiscal year within the area subject to the proposal. The county
22auditor shall adjust the amount so determined by the annual tax
23increment pursuant to the procedures set forth in Chapter 6
24(commencing with Section 95) of Part 0.5 of Division 1 of the
25Revenue and Taxation Code, to the fiscal year in which the affected
26agency receives its next allocation of property taxes.
27(d) If the proposal for disincorporation would transfer all of the
28service responsibilities of the city proposed for disincorporation,
29other than those that are proposed to be discontinued, to a single
30successor, the commission shall request the auditor to determine
31the property tax revenue allocated to the city being disincorporated
32by tax rate area, or portion thereof, and transmit that information
33to the commission.
34(e) The executive officer shall notify the auditor of the amount
35determined pursuant to subdivision (c) or (d), as the case may be,
36and, where applicable, the period of time within which and the
37procedure by which the transfer of property tax revenues will be
38effected pursuant to this section, at the time the executive officer
39records a certificate of completion pursuant to Section 57203 for
40any proposal described in subdivision (a), and the auditor shall
P14 1transfer that amount to the affected agency or agencies that will
2assume the services as determined by the commission. Any
3property tax not transferred to an affected agency pursuant to
4subdivision (c) shall be transferred to the affected county.
5(f) For purposes of this section, “prior fiscal year” means the
6most recent fiscal year preceding the issuance of the certificate of
7filing for which data is available on actual direct and indirect costs
8and revenues needed to perform the calculations required by this
10(g) Any action brought by a city or district to contest any of the
11determinations of the county auditor or the commission with regard
12to the amount of property tax revenue to be exchanged by the
13affected local agencies pursuant to this section shall be commenced
14within three years of the effective date of the disincorporation.
Section 56814 is added to the Government Code, to
If the proposal includes the disincorporation of a city,
19as defined in Section 56034, with the assignment of property tax
20revenues to a successor the commission shall make the following
21determinations, as appropriate:
22(a) The increase of the appropriations limit for the successor if
23the successor is an existing entity.
24(b) The appropriations limit for a new special district through
25a formation process as defined by Section 56810.
Section 56816 is added to the Government Code, to
(a) It is the intent of the Legislature that any proposal
30that includes the disincorporation of a city result in a determination
31that the debt or contractual obligations and responsibilities of the
32city being disincorporated shall be the responsibility of that same
33territory for repayment. To ascertain this information, the city shall
34provide a written statement that determines and certifies all of the
35following to the commission prior to the issuance of a certificate
36of filing for a disincorporation proposal, pursuant to Sections 56651
38(1) The indebtedness of the city.
39(2) The amount of money in the city’s treasury.
P15 1(3) The amount of any tax levy or other obligation due the city
2that is unpaid or has not been collected.
3(4) The amount of current and future liabilities, both internal
4debt owed to other special or restricted funds or enterprise funds
5within the agency and external debt owed to other public agencies
6or outside lenders or that results from contractual obligations,
7which may include contracts for goods or services, retirement
8obligations, actuarially determined unfunded pension liability of
9all classes in a public retirement system, including any
10documentation related to the termination of public retirement
11contract provisions, and the liability for other postemployment
12benefits. The information required by this paragraph shall include
13any associated revenue stream for financing that may be or has
14been committed to that liability, including employee contributions.
15(b) The city shall provide a written statement identifying the
16successor agency to the city’s former redevelopment agency, if
17any, pursuant to Section 34173 of the Health and Safety Code.
Section 56885.5 of the Government Code is amended
(a) In any commission order giving approval to any
22change of organization or reorganization, the commission may
23make that approval conditional upon any of the following factors:
24(1) Any of the conditions set forth in Section 56886.
25(2) The initiation, conduct, or completion of proceedings for
26another change of organization or a reorganization.
27(3) The approval or disapproval, with or without election, as
28may be provided by this division, of any resolution or ordinance
29ordering that change of organization or reorganization.
30(4) With respect to any commission determination to approve
31the disincorporation of a city, the dissolution of a district, or the
32reorganization or consolidation of agencies that results in the
33dissolution of one or more districts or the disincorporation of one
34or more cities, a condition that prohibits a district that is being
35dissolved or a city that is being disincorporated from taking any
36of the following actions, unless it first finds that either an
37emergency situation exists as defined in Section 54956.5, or the
38legislative body of the successor, as designated by the commission
39has taken action approving one or more of the following actions:
P16 1(A) Approving any increase in compensation or benefits for
2members of the governing board, its officers, or the executive
3officer of the agency.
4(B) Appropriating, encumbering, expending, or otherwise
5obligating, any revenue of the agency beyond that provided in the
6current budget at the time the commission approves the dissolution
8(b) If the commission so conditions its approval, the commission
9may order that any further action pursuant to this division be
10continued and held in abeyance for the period of time designated
11by the commission, not to exceed six months from the date of that
13(c) The commission order may also provide that any election
14called upon any change of organization or reorganization shall be
15called, held, and conducted before, upon the same date as, or after
16the date of any election to be called, held, and conducted upon any
17other change of organization or reorganization.
18(d) The commission order may also provide that in any election
19at which the questions of annexation and district reorganization
20or, incorporation and district reorganization, or disincorporation
21and district reorganization are to be considered at the same time,
22there shall be a single question appearing on the ballot upon the
23issues of annexation and district reorganization or incorporation
24and district reorganization.
Any change of organization or reorganization may
28provide for, or be made subject to one or more of, the following
29terms and conditions. If a change of organization or reorganization
30is made subject to one or more of the following terms and
31conditions in the commission’s resolution making determinations,
32the terms and conditions imposed shall prevail in the event of a
33conflict between a specific term and condition authorized pursuant
34to this section and any of the general provisions of Part 5
35(commencing with Section 57300). However, none of the following
36terms and conditions shall directly regulate land use, property
37development, or subdivision requirements:
38(a) The payment of a fixed or determinable amount of money,
39either as a lump sum or in installments, for the acquisition, transfer,
P17 1use, or right of use of all or any part of the existing property, real
2or personal, of any city, county, or district.
3(b) The levying or fixing and the collection of any of the
4following, for the purpose of providing for any payment required
5pursuant to subdivision (a):
6(1) Special, extraordinary, or additional taxes or assessments.
7(2) Special, extraordinary, or additional service charges, rentals,
9(3) Both taxes or assessments and service charges, rentals, or
11(c) The imposition, exemption, transfer, division, or
12apportionment, as among any affected cities, affected counties,
13affected districts, and affected territory of liability for payment of
14all or any part of principal, interest, and any other amounts which
15shall become due on account of all or any part of any outstanding
16or then authorized but thereafter issued bonds, including revenue
17bonds, or other contracts or obligations of any city, county, district,
18or any improvement district within a local agency, and the levying
19or fixing and the collection of any (1) taxes or assessments, or (2)
20service charges, rentals, or rates, or (3) both taxes or assessments
21and service charges, rentals, or rates, in the same manner as
22provided in the original authorization of the bonds and in the
23amount necessary to provide for that payment.
24(d) If, as a result of any term or condition made pursuant to
25subdivision (c), the liability of any affected city, affected county,
26or affected district for payment of the principal of any bonded
27indebtedness is increased or decreased, the term and condition
28may specify the amount, if any, of that increase or decrease which
29 shall be included in, or excluded from, the outstanding bonded
30indebtedness of that entity for the purpose of the application of
31any statute or charter provision imposing a limitation upon the
32principal amount of outstanding bonded indebtedness of the entity.
33(e) The formation of a new improvement district or districts or
34the annexation or detachment of territory to, or from, any existing
35improvement district or districts.
36(f) The incurring of new indebtedness or liability by, or on behalf
37of, all or any part of any local agency, including territory being
38annexed to any local agency, or of any existing or proposed new
39improvement district within that local agency. The new
40indebtedness may be the obligation solely of territory to be annexed
P18 1if the local agency has the authority to establish zones for incurring
2indebtedness. The indebtedness or liability shall be incurred
3 substantially in accordance with the laws otherwise applicable to
4the local agency.
5(g) The issuance and sale of any bonds, including authorized
6but unissued bonds of a local agency, either by that local agency
7or by a local agency designated as the successor to any local agency
8which is extinguished as a result of any change of organization or
10(h) The acquisition, improvement, disposition, sale, transfer, or
11division of any property, real or personal.
12(i) The disposition, transfer, or division of any moneys or funds,
13including cash on hand and moneys due but uncollected, and any
15(j) The fixing and establishment of priorities of use, or right of
16use, of water, or capacity rights in any public improvements or
17facilities or any other property, real or personal. However, none
18of the terms and conditions ordered pursuant to this subdivision
19shall modify priorities of use, or right of use, to water, or capacity
20rights in any public improvements or facilities that have been fixed
21and established by a court or an order of the State Water Resources
23(k) The establishment, continuation, or termination of any office,
24department, or board, or the transfer, combining, consolidation,
25or separation of any offices, departments, or boards, or any of the
26functions of those offices, departments, or boards, if, and to the
27extent that, any of those matters is authorized by the principal act.
28(l) The employment, transfer, or discharge of employees, the
29continuation, modification, or termination of existing employment
30contracts, civil service rights, seniority rights, retirement rights,
31and other employee benefits and rights.
32(m) The designation of a city, county, or district, as the successor
33to any local agency that is extinguished as a result of any change
34of organization or reorganization, for the purpose of succeeding
35to all of the rights, duties, and obligations of the extinguished local
36agency with respect to enforcement, performance, or payment of
37any outstanding bonds, including revenue bonds, or other contracts
38and obligations of the extinguished local agency.
39(n) The designation of (1) the method for the selection of
40members of the legislative body of a district or (2) the number of
P19 1those members, or (3) both, where the proceedings are for a
2consolidation, or a reorganization providing for a consolidation or
3formation of a new district and the principal act provides for
4alternative methods of that selection or for varying numbers of
5those members, or both.
6(o) The initiation, conduct, or completion of proceedings on a
7proposal made under, and pursuant to, this division.
8(p) The fixing of the effective date or dates of any change of
9organization, subject to the limitations of Section 57202.
10(q) Any terms and conditions authorized or required by the
11principal act with respect to any change of organization.
12(r) The continuation or provision of any service provided at that
13time, or previously authorized to be provided by an official act of
14the local agency.
15(s) The levying of
begin delete assessments,end delete
16 including the imposition of a fee
17pursuant to Section 50029 or
begin delete 66484.3 or the approval by the voters For the purposes of this
18of general or special taxes.end delete
19section, imposition of a fee as a condition of the issuance of a
20building permit does not constitute direct regulation of land use,
21property development, or subdivision requirements.
23(t) The extension or continuation of any previously authorized
24charge, fee, assessment, or tax by the local agency or a successor
25local agency in the affected territory.
26(u) The transfer of authority and responsibility among any
27affected cities, affected counties, and affected districts for the
28administration of special tax and special assessment districts,
29including, but not limited to, the levying and collecting of special
30taxes and special assessments, including the determination of the
31annual special tax rate within authorized limits; the management
32of redemption, reserve, special reserve, and construction funds;
33the issuance of bonds which are authorized but not yet issued at
34the time of the transfer, including not yet issued portions or phases
35of bonds which are authorized; supervision of construction paid
36for with bond or special tax or assessment proceeds; administration
37of agreements to acquire public facilities and reimburse advances
38made to the district; and all other rights and responsibilities with
39respect to the levies, bonds, funds, and use of proceeds that would
P20 1have applied to the local agency that created the special tax or
2special assessment district.
3(v) Any other matters necessary or incidental to any of the terms
4and conditions specified in this section. If a change of organization,
5reorganization, or special reorganization provides for, or is made
6subject to one or more of, the terms and conditions specified in
7this section, those terms and conditions shall be deemed to be the
8exclusive terms and conditions for the change of organization,
9reorganization, or special reorganization, and shall control over
10any general provisions of Part 5 (commencing with Section 57300).
Section 57401 of the Government Code is repealed.
Section 57402 of the Government Code is repealed.
Section 57404 of the Government Code is repealed.
Section 57405 of the Government Code is amended
If a tax has been levied by the disincorporated city and
21remains uncollected, the county tax collector shall collect it when
22due and pay it into the county treasury on behalf of the designated
23successor agency or county to wind up the affairs of the
Section 57409 of the Government Code is repealed.
Section 57410 of the Government Code is repealed.
Section 57416 of the Government Code is repealed.
Section 57423 of the Government Code is repealed.
Section 57424 of the Government Code is repealed.
Section 57426 is added to the Government Code, to
As of the effective date of the disincorporation, all of
39the following apply:
P21 1(a) The general plan of the disincorporated city that was in effect
2immediately prior to the effective date of the disincorporation shall
3constitute the community plan of the county for the territory of
4the disincorporated city until the county updates the community
5plan, adopts a specific plan, or amends its county general plan for
6the unincorporated territory.
7(b) The zoning ordinances of the disincorporated city that were
8in effect immediately prior to the effective date of the
9disincorporation shall constitute the zoning ordinances of the
10county for that territory, and shall be so identified in any
11community plan, specific plan, or general plan amendment adopted
12by the county, until the county updates the zoning ordinances
13applicable to that territory.
14(c) Any conditional use permit or legal nonconforming use that
15was in place immediately prior to the effective date of the
16disincorporation shall remain in force pursuant to the community
17plan and zoning ordinances.
18(d) Any use of land that was authorized under the general plan
19and zoning ordinances immediately prior to the effective date of
20the disincorporation shall continue to be authorized, for as long a
21period as may be required by the California Constitution or United
Section 99 of the Revenue and Taxation Code is
25amended to read:
(a) For the purposes of the computations required by this
28(1) In the case of a jurisdictional change, other than a city
29incorporation, city disincorporation, or a formation of a district as
30defined in Section 2215, the auditor shall adjust the allocation of
31property tax revenue determined pursuant to Section 96 or 96.1,
32or the annual tax increment determined pursuant to Section 96.5,
33for local agencies whose service area or service responsibility
34would be altered by the jurisdictional change, as determined
35pursuant to subdivision (b) or (c).
36(2) In the case of a city incorporation or disincorporation, the
37auditor shall assign the allocation of property tax revenues
38determined pursuant to Section 56810 of the Government Code
39and the adjustments in tax revenues that may occur pursuant to
40Section 56815 of the Government Code to the newly formed city
P22 1or district and shall make the adjustment as determined by Section
256810 or 56813 in the allocation of property tax revenue
3determined pursuant to Section 96 or 96.1 for each local agency
4whose service area or service responsibilities would be altered by
6(3) In the case of a formation of a district as defined in Section
72215, the auditor shall assign the allocation of property tax
8revenues determined pursuant to Section 56810 of the Government
9Code to the district and shall make the adjustment as determined
10by Section 56810, or for the disincorporated city or dissolved
11district as determined by Section 56813, in the allocation of
12property tax revenue determined pursuant to Section 96 or 96.1
13for each local agency whose service area or service responsibilities
14would be altered by the change of organization.
15(b) Upon the filing of an application or a resolution pursuant to
16the Cortese-Knox-Hertzberg Local Government Reorganization
17Act of 2000 (Division 3 (commencing with Section 56000) of Title
185 of the Government Code), but prior to the issuance of a certificate
19of filing, the executive officer shall give notice of the filing to the
20assessor and auditor of each county within which the territory
21subject to the jurisdictional change is located. This notice shall
22specify each local agency whose service area or responsibility will
23be altered by the jurisdictional change.
24(1) (A) The county assessor shall provide to the county auditor,
25within 30 days of the notice of filing, a report which identifies the
26assessed valuations for the territory subject to the jurisdictional
27change and the tax rate area or areas in which the territory exists.
28(B) The auditor shall estimate the amount of property tax
29revenue generated within the territory that is the subject of the
30jurisdictional change during the current fiscal year.
31(2) The auditor shall estimate what proportion of the property
32tax revenue determined pursuant to paragraph (1) is attributable
33to each local agency pursuant to Sections 96.1 and 96.5.
34(3) Within 45 days of notice of the filing of an application or
35resolution, the auditor shall notify the governing body of each local
36agency whose service area or service responsibility will be altered
37by the jurisdictional change of the amount of, and allocation factors
38with respect to, property tax revenue estimated pursuant to
39paragraph (2) that is subject to a negotiated exchange.
P23 1(4) Upon receipt of the estimates pursuant to paragraph (3), the
2local agencies shall commence negotiations to determine the
3amount of property tax revenues to be exchanged between and
4among the local agencies. Except as otherwise provided, this
5negotiation period shall not exceed 60 days. If a local agency
6involved in these negotiations notifies the other local agencies, the
7county auditor, and the local agency formation commission in
8writing of its desire to extend the negotiating period, the negotiating
9 period shall be 90 days.
10The exchange may be limited to an exchange of property tax
11revenues from the annual tax increment generated in the area
12subject to the jurisdictional change and attributable to the local
13agencies whose service area or service responsibilities will be
14altered by the proposed jurisdictional change. The final exchange
15resolution shall specify how the annual tax increment shall be
16allocated in future years.
17(5) In the event that a jurisdictional change would affect the
18service area or service responsibility of one or more special
19districts, the board of supervisors of the county or counties in which
20the districts are located shall, on behalf of the district or districts,
21negotiate any exchange of property tax revenues. Prior to entering
22into negotiation on behalf of a district for the exchange of property
23tax revenue, the board shall consult with the affected district. The
24 consultation shall include, at a minimum, notification to each
25member and executive officer of the district board of the pending
26consultation and provision of adequate opportunity to comment
27on the negotiation.
28(6) Notwithstanding any other provision of law, the executive
29officer shall not issue a certificate of filing pursuant to Section
3056658 of the Government Code until the local agencies included
31in the property tax revenue exchange negotiation, within the
32negotiation period, present resolutions adopted by each such county
33and city whereby each county and city agrees to accept the
34exchange of property tax revenues.
35(7) In the event that the commission modifies the proposal or
36its resolution of determination, any local agency whose service
37area or service responsibility would be altered by the proposed
38jurisdictional change may request, and the executive officer shall
39grant, 30 days for the affected agencies, pursuant to paragraph (4),
40to renegotiate an exchange of property tax revenues.
P24 1Notwithstanding the time period specified in paragraph (4), if the
2resolutions required pursuant to paragraph (6) are not presented
3to the executive officer within the 30-day period, all proceedings
4of the jurisdictional change shall automatically be terminated.
5(8) In the case of a jurisdictional change that consists of a city’s
6qualified annexation of unincorporated territory, an exchange of
7property tax revenues between the city and the county shall be
8determined in accordance with subdivision (e) if that exchange of
9revenues is not otherwise determined pursuant to either of the
11(A) Negotiations completed within the applicable period or
12periods as prescribed by this subdivision.
13(B) A master property tax exchange agreement among those
14local agencies, as described in subdivision (d).
15For purposes of this paragraph, a qualified annexation of
16unincorporated territory means an annexation, as so described, for
17which an application or a resolution was filed on or after January
181, 1998, and on or before January 1,
begin delete 2015.end delete
19(9) No later than the date on which the certificate of completion
20of the jurisdictional change is recorded with the county recorder,
21the executive officer shall notify the auditor or auditors of the
22exchange of property tax revenues and the auditor or auditors shall
23make the appropriate adjustments as provided in subdivision (a).
24(c) Whenever a jurisdictional change is not required to be
25reviewed and approved by a local agency formation commission,
26the local agencies whose service area or service responsibilities
27 would be altered by the proposed change, shall give notice to the
28State Board of Equalization and the assessor and auditor of each
29county within which the territory subject to the jurisdictional
30change is located. This notice shall specify each local agency
31whose service area or responsibility will be altered by the
32jurisdictional change and request the auditor and assessor to make
33the determinations required pursuant to paragraphs (1) and (2) of
34subdivision (b). Upon notification by the auditor of the amount
35of, and allocation factors with respect to, property tax subject to
36exchange, the local agencies, pursuant to the provisions of
37paragraphs (4) and (6) of subdivision (b), shall determine the
38amount of property tax revenues to be exchanged between and
39among the local agencies. Notwithstanding any other provision of
40law, no such jurisdictional change shall become effective until
P25 1each county and city included in these negotiations agrees, by
2resolution, to accept the negotiated exchange of property tax
3 revenues. The exchange may be limited to an exchange of property
4tax revenue from the annual tax increment generated in the area
5subject to the jurisdictional change and attributable to the local
6agencies whose service area or service responsibilities will be
7altered by the proposed jurisdictional change. The final exchange
8resolution shall specify how the annual tax increment shall be
9allocated in future years. Upon the adoption of the resolutions
10required pursuant to this section, the adopting agencies shall notify
11the auditor who shall make the appropriate adjustments as provided
12in subdivision (a). Adjustments in property tax allocations made
13as the result of a city or library district withdrawing from a county
14free library system pursuant to Section 19116 of the Education
15Code shall be made pursuant to Section 19116 of the Education
16Code, and this subdivision shall not apply.
17(d) With respect to adjustments in the allocation of property
18 taxes pursuant to this section, a county and any local agency or
19agencies within the county may develop and adopt a master
20property tax transfer agreement. The agreement may be revised
21from time to time by the parties subject to the agreement.
22(e) (1) An exchange of property tax revenues that is required
23by paragraph (8) of subdivision (b) to be determined pursuant to
24this subdivision shall be determined in accordance with all of the
26(A) The city and the county shall mutually select a third-party
27consultant to perform a comprehensive, independent fiscal analysis,
28funded in equal portions by the city and the county, that specifies
29estimates of all tax revenues that will be derived from the annexed
30territory and the costs of city and county services with respect to
31the annexed territory. The analysis shall be completed within a
32period not to exceed 30 days, and shall be based upon the general
33plan or adopted plans and policies of the annexing city and the
34intended uses for the annexed territory. If, upon the completion of
35the analysis period, no exchange of property tax revenues is agreed
36upon by the city and the county, subparagraph (B) shall apply.
37(B) The city and the county shall mutually select a mediator,
38funded in equal portions by those agencies, to perform mediation
39for a period not to exceed 30 days. If, upon the completion of the
P26 1mediation period, no exchange of property tax revenues is agreed
2upon by the city and the county, subparagraph (C) shall apply.
3(C) The city and the county shall mutually select
4funded in equal portions by those agencies, to conduct an advisory
5arbitration with the city and the county for a period not to exceed
630 days. At the conclusion of this arbitration period, the city and
7the county shall each present to the arbitrator its last and best offer
8with respect to the exchange of property tax revenues. The
9arbitrator shall select one of the offers and recommend that offer
10to the governing bodies of the city and the county. If the governing
11body of the city or the county rejects the recommended offer, it
12shall do so during a public hearing, and shall, at the conclusion of
13that hearing, make written findings of fact as to why the
14recommended offer was not accepted.
15(2) Proceedings under this subdivision shall be concluded no
16more than 150 days after the auditor provides the notification
17pursuant to paragraph (3) of subdivision (b), unless one of the
18periods specified in this subdivision is extended by the mutual
19agreement of the city and the county. Notwithstanding any other
20provision of law, except for those conditions that are necessary to
21implement an exchange of property tax revenues determined
22pursuant to this subdivision, the local agency formation
23commission shall not impose any fiscal conditions upon a city’s
24qualified annexation of unincorporated territory that is subject to
26(f) Except as otherwise provided in subdivision (g), for the
27purpose of determining the amount of property tax to be allocated
28in the 1979-80 fiscal year and each fiscal year thereafter for those
29local agencies that were affected by a jurisdictional change which
30was filed with the State Board of Equalization after January 1,
311978, but on or before January 1, 1979. The local agencies shall
32determine by resolution the amount of property tax revenues to be
33exchanged between and among the affected agencies and notify
34the auditor of the determination.
35(g) For the purpose of determining the amount of property tax
36to be allocated in the 1979-80 fiscal year and each fiscal year
37thereafter, for a city incorporation that was filed pursuant to
38Sections 54900 to 54904, inclusive, of the Government Code after
39January 1, 1978, but on or before January 1, 1979, the amount of
40property tax revenue considered to have been received by the
P27 1jurisdiction for the 1978-79 fiscal year shall be equal to two-thirds
2of the amount of property tax revenue projected in the final local
3agency formation commission staff report pertaining to the
4incorporation multiplied by the proportion that the total amount
5of property tax revenue received by all jurisdictions within the
6county for the 1978-79 fiscal year bears to the total amount of
7property tax revenue received by all jurisdictions within the county
8for the 1977-78 fiscal year. Except, however, in the event that the
9final commission report did not specify the amount of property
10tax revenue projected for that incorporation, the commission shall
11by October 10 determine pursuant to Section 54790.3 of the
12Government Code the amount of property tax to be transferred to
14The provisions of this subdivision shall also apply to the
15allocation of property taxes for the 1980-81 fiscal year and each
16fiscal year thereafter for incorporations approved by the voters in
18(h) For the purpose of the computations made pursuant to this
19section, in the case of a district formation that was filed pursuant
20to Sections 54900 to 54904, inclusive, of the Government Code
21after January 1, 1978, but before January 1, 1979, the amount of
22property tax to be allocated to the district for the 1979-80 fiscal
23year and each fiscal year thereafter shall be determined pursuant
24to Section 54790.3 of the Government Code.
25(i) For the purposes of the computations required by this chapter,
26in the case of a jurisdictional change, other than a change requiring
27an adjustment by the auditor pursuant to subdivision (a), the auditor
28shall adjust the allocation of property tax revenue determined
29pursuant to Section 96 or 96.1 or its predecessor section, or the
30annual tax increment determined pursuant to Section 96.5 or its
31predecessor section, for each local school district, community
32college district, or county superintendent of schools whose service
33area or service responsibility would be altered by the jurisdictional
34change, as determined as follows:
35(1) The governing body of each district, county superintendent
36of schools, or county whose service areas or service responsibilities
37would be altered by the change shall determine the amount of
38property tax revenues to be exchanged between and among the
39affected jurisdictions. This determination shall be adopted by each
40affected jurisdiction by resolution. For the purpose of negotiation,
P28 1the county auditor shall furnish the parties and the county board
2of education with an estimate of the property tax revenue subject
4(2) In the event that the affected jurisdictions are unable to agree,
5within 60 days after the effective date of the jurisdictional change,
6and if all the jurisdictions are wholly within one county, the county
7board of education shall, by resolution, determine the amount of
8property tax revenue to be exchanged. If the jurisdictions are in
9more than one county, the State Board of Education shall, by
10resolution, within 60 days after the effective date of the
11jurisdictional change, determine the amount of property tax to be
13(3) Upon adoption of any resolution pursuant to this subdivision,
14the adopting jurisdictions or State Board of Education shall notify
15the county auditor who shall make the appropriate adjustments as
16provided in subdivision (a).
17(j) For purposes of subdivision (i), the annexation by a
18community college district of territory within a county not
19previously served by a community college district is an alteration
20of service area. The community college district and the county
21shall negotiate the amount, if any, of property tax revenues to be
22exchanged. In these negotiations, there shall be taken into
23consideration the amount of revenue received from the timber
24yield tax and forest reserve receipts by the community college
25district in the area not previously served. In no event shall the
26property tax revenue to be exchanged exceed the amount of
27property tax revenue collected prior to the annexation for the
28purposes of paying tuition expenses of residents enrolled in the
29community college district, adjusted each year by the percentage
30change in population and the percentage change in the cost of
31living, or per capita personal income, whichever is lower, less the
32amount of revenue received by the community college district in
33the annexed area from the timber yield tax and forest reserve
35(k) At any time after a jurisdictional change is effective, any of
36the local agencies party to the agreement to exchange property tax
37revenue may renegotiate the agreement with respect to the current
38fiscal year or subsequent fiscal years, subject to approval by all
39local agencies affected by the renegotiation.
If the Commission on State Mandates determines that
3this act contains costs mandated by the state, reimbursement to
4local agencies and school districts for those costs shall be made
5pursuant to Part 7 (commencing with Section 17500) of Division
64 of Title 2 of the Government Code.