Bill Text: CA AB2032 | 2015-2016 | Regular Session | Chaptered
Bill Title: Change of organization: cities: disincorporation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-08-22 - Chaptered by Secretary of State - Chapter 163, Statutes of 2016. [AB2032 Detail]
Download: California-2015-AB2032-Chaptered.html
BILL NUMBER: AB 2032 CHAPTERED
BILL TEXT
CHAPTER 163
FILED WITH SECRETARY OF STATE AUGUST 22, 2016
APPROVED BY GOVERNOR AUGUST 22, 2016
PASSED THE SENATE JUNE 30, 2016
PASSED THE ASSEMBLY AUGUST 4, 2016
AMENDED IN SENATE JUNE 6, 2016
AMENDED IN ASSEMBLY APRIL 11, 2016
AMENDED IN ASSEMBLY APRIL 5, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Linder
FEBRUARY 16, 2016
An act to amend Sections 56804, 56816, 57405, and 57412 of the
Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2032, Linder. Change of organization: cities: disincorporation.
(1) Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, requires the executive officer of a local
agency formation commission to prepare a comprehensive fiscal
analysis for any proposal that includes a disincorporation, as
specified. Existing law requires the comprehensive fiscal analysis to
include, among other things, a review and documentation of specified
costs associated with the proposed disincorporation.
This bill would additionally require the comprehensive fiscal
analysis to include a review and documentation of all current and
long-term liabilities of the city proposed for disincorporation and
the potential financing mechanism or mechanisms to address any
identified shortfalls and obligations, as specified.
(2) The act states 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. To ascertain this information, the act
requires the city being disincorporated to provide a written
statement that includes specified information relating to its debts
and contractual obligations.
This bill would additionally require that statement to include the
amount of any assessment due the city that is unpaid or uncollected.
(3) The act requires the county tax collector to collect a tax
that has been levied by the disincorporated city that remains
uncollected.
This bill would additionally require the county tax collector to
collect an assessment that has been levied by the disincorporated
city that remains uncollected. By imposing new duties on local
officials, this bill would impose a state-mandated local program.
(4) The act requires the board of supervisors to provide for the
collection of debts due to a city being disincorporated and to wind
up its affairs, as specified.
This bill would instead require the governing board of the
successor to provide for the collection of debts due to the city and
to wind up its affairs, as specified.
(5) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 56804 of the Government Code is amended to
read:
56804. For any proposal that includes a disincorporation, the
executive officer shall prepare, or cause to be prepared by contract,
a comprehensive fiscal analysis. This analysis shall become part of
the report required pursuant to Section 56665. Data used for the
analysis shall be from the most recent fiscal year for which data is
available, preceding the issuances of the certificate of filing. When
data requested by the executive officer in the notice to affected
agencies, pursuant to paragraph (2) of subdivision (b) of Section
56658, is unavailable, the analysis shall document the source and
methodology of the data used. The analysis shall review and document
each of the following:
(a) The direct and indirect costs incurred by the city proposed
for disincorporation for providing public services during the three
fiscal years immediately preceding the submittal of the proposal for
disincorporation.
(b) The direct and indirect costs incurred by the city proposed
for disincorporation for current and proposed capital improvements,
facilities, assets, and infrastructure.
(c) The sources of funding, if any, available to the entities
proposed to assume the obligations of the city proposed for
disincorporation.
(d) The anticipated costs, including all direct and indirect
costs, to the entities proposed to assume the obligations of the city
proposed for disincorporation in the provision of services to the
area proposed for disincorporation.
(e) When determining costs, the executive officer shall also
include all direct and indirect costs of any public services that are
proposed to be transferred to state agencies for delivery.
(f) The revenues of the city proposed for disincorporation during
the three fiscal years immediately preceding the initiation of the
disincorporation proposal.
(g) All current and long-term liabilities, including, but not
limited to, debt obligations, of the city proposed for
disincorporation, including the balance of the restricted and
unrestricted funds available to extinguish the obligations and
liabilities.
(h) The potential financing mechanism or mechanisms to address any
shortfalls and obligations for those responsibilities identified in
this section, including, but not limited to, taxes or assessments.
(i) Any other information and analysis needed to make the findings
required by Section 56770.
SEC. 2. Section 56816 of the Government Code is amended to read:
56816. (a) It is the intent of the Legislature that any proposal
that includes the disincorporation of a city result in a
determination that the debt or contractual obligations and
responsibilities of the city being disincorporated shall be the
responsibility of that same territory for repayment. To ascertain
this information, the city shall provide a written statement that
determines and certifies all of the following to the commission prior
to the issuance of a certificate of filing for a disincorporation
proposal, pursuant to Sections 56651 and 56658:
(1) The indebtedness of the city.
(2) The amount of money in the city's treasury.
(3) The amount of any tax levy, assessment, or other obligation
due to the city that is unpaid or has not been collected.
(4) The amount of current and future liabilities, both internal
debt owed to other special or restricted funds or enterprise funds
within the agency and external debt owed to other public agencies or
outside lenders or that results from contractual obligations, which
may include contracts for goods or services, retirement obligations,
actuarially determined unfunded pension liability of all classes in a
public retirement system, including any documentation related to the
termination of public retirement contract provisions, and the
liability for other postemployment benefits. The information required
by this paragraph shall include any associated revenue stream for
financing that may be or has been committed to that liability,
including employee contributions.
(b) The city shall provide a written statement identifying the
successor agency to the city's former redevelopment agency, if any,
pursuant to Section 34173 of the Health and Safety Code.
SEC. 3. Section 57405 of the Government Code is amended to read:
57405. If a tax or assessment has been levied by the
disincorporated city and remains uncollected, the county tax
collector shall collect it when due and pay it into the county
treasury on behalf of the designated successor agency or county to
wind up the affairs of the disincorporated city.
SEC. 4. Section 57412 of the Government Code is amended to read:
57412. The governing body of the successor shall provide for
collection of debts due the city and wind up its affairs. Upon an
order by the commission, the appropriate officer of the successor
shall perform any act necessary for winding up the city affairs, with
the same effect as if it had been performed by the proper city
officer.
SEC. 5. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
