BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1266|
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THIRD READING
Bill No: SB 1266
Author: McGuire (D)
Amended: 4/12/16
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/6/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Joint Exercise of Powers Act: agreements: filings
SOURCE: Author
DIGEST: This bill requires joint powers agencies and joint
powers authorities that provide municipal services to file
copies of specified documents with local agency formation
commissions.
ANALYSIS:
Existing law:
1)Sets forth, pursuant to the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000, the powers and duties
of local agency formation commissions (LAFCOs). Located in
every county, LAFCOs are responsible for coordinating changes
in governmental boundaries and conducting studies that review
ways to reorganize, simplify, and streamline governmental
structures to ensure that services are provided efficiently
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and economically. A LAFCO must make its studies available to
public agencies and any interested person.
2)Allows, pursuant to the Joint Exercise of Powers Act, two or
more public agencies to use their powers in common if they
sign a joint powers agreement. Sometimes an agreement creates
a new, separate government called a joint powers agency or
joint powers authority (JPA).
3)Requires a JPA to file a notice of its joint powers agreement,
or any amendment to the agreement, with the Secretary of
State's Office within 30 days after the agreement or amendment
takes effect.
4)Requires that whenever a JPA is required to submit a notice of
a joint powers agreement or amendment to the Secretary of
State's Office, the JPA must also file a copy of the full text
of the original joint powers agreement, and any amendments to
the agreement, with the State Controller.
This bill:
1)Requires that whenever current law requires a JPA to file a
copy of the full text of its joint powers agreement, and any
amendments to the agreement, with the State Controller, it
must also file those same documents with a LAFCO, if the JPA:
a) Meets a specified statutory definition of a JPA formed
for the purposes of providing municipal services, and
b) Includes a local agency member that is a city, county,
or district.
2)Directs that, within 30 days after the agreement or amendment
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takes effect, any JPA that meets these conditions must file a
copy of the agreement or amendment with the LAFCO in each
county within which all or any part of a local agency member's
territory is located.
3)Requires that a JPA that was formed before January 1, 2017
must, by July 1, 2017, file a copy of its agreement or
amendment with the LAFCO in each county within which all or
any part of a local agency member's territory is located, if
the JPA:
a) Was formed for the purposes of providing municipal
services before January 1, 2017,
b) Meets a specified statutory definition of a JPA formed
for the purposes of providing municipal services, and
c) Includes a local agency member that is a city, county,
or district.
4)Prohibits a JPA that has failed to make the required filings
with LAFCOs within the specified timeframes from issuing bonds
or incurring any indebtedness until those filings have been
made.
Background
State law requires LAFCOs to conduct studies of existing
governmental agencies, including studies to inventory those
agencies and determine their maximum service area and service
capacities. To support those studies government agencies must
comply with a LAFCO's request for information. The Legislature
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recently included JPAs that provide municipal services in the
list of agencies from which a LAFCO can request information and
added joint powers agreements to the list of documents that a
LAFCO may request (AB 2156, Achadjian, Chapter 21, Statutes of
2014). Despite this new statutory authority, some LAFCO
officials still find it difficult to obtain sufficient
information about the activities of JPAs that provide municipal
services. In some cases, they are not even aware of the
existence of these JPAs and have no knowledge of amendments that
are made to existing agreements. Despite the fact that JPAs are
submitting information to the State Controller, LAFCOs can't
request this information if they don't know when new JPAs are
formed or when existing agreements are amended. LAFCO officials
want the Legislature to require JPAs to provide LAFCOs with
information that is similar to what JPAs already must submit to
the State Controller under current law.
Comments
Purpose of the bill. Many existing JPAs provide municipal
services to communities throughout California. However, LAFCO
officials frequently possess no information about the existence
and activities of some JPAs that provide municipal services.
This lack of information about municipal service-providing JPAs
makes it difficult for LAFCOs to fulfill their statutory
responsibility to plan and oversee the responsive, efficient and
effective delivery local government services. A 2011 report
produced by the Legislative Analyst's Office noted that LAFCOs
lack the legal authority to ensure that JPAs are providing
services and using public funds efficiently and in a manner
consistent with current law. The LAO suggested that JPAs should
be subject to a higher level of LAFCO oversight and identified
"provid[ing] LAFCOs with copies of all JPA agreements, including
amendments" as a policy option. This bill does not grant LAFCOs
any authority over JPAs' formation, boundaries, organization, or
services, fully preserving the flexibility and autonomy that
JPAs enjoy under current law. This bill helps LAFCOs provide
better oversight of municipal service delivery by providing them
with crucial information about JPAs that provide those services.
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FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified4/25/16)
Alameda County LAFCO
California Association of Joint Powers Authorities
California Association of Local Agency Formation Commissions
Contra Costa County LAFCO
Imperial County LAFCO
Marin County LAFCO
Merced County LAFCO
Napa County LAFCO
Riverside County LAFCO
San Diego County LAFCO
San Luis Obispo County LAFCO
San Mateo County LAFCO
Yolo County LAFCO
OPPOSITION: (Verified4/25/16)
None received
Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
4/27/16 15:57:28
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