Staff Report 6.1

Analysis

Background

This is the first year of the 2019-20 California Legislative session. As in previous years, the California Association of Local Agency Formation Commissions (CALAFCO or the Association) serves in Sacramento as the eyes and ears of LAFCOs from throughout the state. CALAFCO, a 501(c) (3) organization, is substantially limited in the extent of lobbying permitted under its non-profit status but is widely respected for its educational outreach.

Regarding legislation, CALAFCO:

• tracks proposed legislation of interest or concern to its members;
• works with its Legislative Committee, composed of Commissioners on the Association’s board of directors and LAFCO staff from throughout the state, to consider legislation;
• confers with Assembly and Senate members and their staffs, sponsors of bills, and other stakeholders, as legislation moves through the legislative process; and
• takes positions on proposed legislation.

This year, 2,576 bills have been introduced: 777 in the Senate and 1,799 in the Assembly, an increase over the 2,403 bills introduced in the previous session. At this time, CALAFCO is actively tracking 20 bills.

The CALAFCO Legislative Committee has met or convened via conference call five times since the session convened last fall. The Committee has discussed and, in some cases, recommended positions on individual bills, as information for the CALAFCO board of directors.

 Although it is early in the session, staff is providing Information about bills of interest or concern to LAFCOs and is recommending that the Commission take a position on two bills. The Commission’s Policy on Legislation and Legislative Positions, which is attached for Commissioners’ information, guides the Commission’s actions.

 1.            AB 1822 (Assembly Local Government Committee)

 The annual Omnibus Bill, sponsored by CALAFCO, makes technical, non-controversial changes to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. LAFCO practitioners have proposed and the Legislative Committee has supported nine changes or additions to the law; currently, seven are included in the bill, having been vetted by an initial group of stakeholders, with the other two removed after stakeholder opposition.

 The bill will be heard before the Assembly Local Government Committee in early May. Staff has reviewed all of the Omnibus Bill proposals and supports changes to the statute.

 Staff recommends that the Commission take a Support position on this bill and direct staff to submit a letter in support to the Assembly Local Government Committee. Staff can provide the details of the proposed changes, should the Commission wish.

 2.            AB 1253 (Rivas)

 Sponsored by CALAFCO, this bill would establish a grant program for LAFCOs for several purposes: payment of costs associated with: (1) initiating and completing the dissolution of inactive special districts; (2) a study of services provided within a county by a public agency to a disadvantaged community; and (3) initiation of action related to service provision to a disadvantaged community.

The Strategic Growth Council would administer the program and would, in consultation with CALAFCO, develop and adopt guidelines, timelines, and application and reporting criteria for development and implementation of the program.

This bill is very similar to AB 2258, introduced by then-Assembly Member Anna Caballero last year. The desired budget - $1.5 million over a five-year period – is being requested to be included in the May revise budget.

The Commission supported this bill last year. Staff recommends a Support position once again with direction to submit a Support letter to the Assembly Local Government Committee, which initially considered the bill on March 27.

3.            SB 414 (Caballero)

This bill would require the State Water Resources Control Board (SWRCB) to dissolve existing water service providers – whether public, private, or mutual – that are consistently failing or not complying with state drinking water standards, if discussions, negotiations, actions fail to remedy the situation. The State Board would be authorized to form new public “small system water authorities” including the dissolved entities, after LAFCO approval. Under the legislation, LAFCOs could initially approve, approve with modifications, or disapprove the authority and plan for service but, once modifications are made, approval is required.

This bill is substantially similar to AB 2050, which then-Assembly Member Caballero introduced last year. Both the Assembly and Senate approved the legislation but the Governor vetoed the bill, stating that, from his perspective, the bill created “an expensive, bureaucratic process and does not address the most significant problem with providing safe drinking water – a stable funding source to pay for ongoing operations and maintenance costs.”

CALAFCO has not taken a position on this bill, at this time. Many of CALAFCO’s concerns with the bill last year were addressed, and, currently, the Association is not recommending a position on the bill.

Staff’s concerns relate to whether creation of a bigger agency composed of smaller entities with problems will solve ongoing issues. Staff will monitor the progress of this legislation and keep the Commission informed.

4.            Assembly Constitutional Amendment No. 1 (Aguiar-Curry)

Assembly Member Cecelia Aguiar-Curry, who is the chair of the Assembly Local Government Committee, has introduced Assembly Constitutional Amendment (ACA) No. 1 and asked for CALAFCO support.

This proposed amendment to the State Constitution would, if approved by the electorate, lower the necessary threshold to approve local general obligation bonds and special taxes for affordable housing and public infrastructure projects from a two-thirds supermajority to 55 percent, similar to what is allowed for approval of proposed school district bonds.

The bill, which has at least 25 co-authors, cites the urgent need for additional affordable housing in the state as well as needed infrastructure to support maintenance and improvement of public roads as well as water supply, wastewater, and flood control infrastructure.

The fact sheet for the proposed amendment notes that four out of five school bonds requiring a 55 percent pass have been approved by the voters and almost 80 percent of special tax proposals obtained more than 55 percent of votes but failed because they did not reach the supermajority level.

If approved by the Legislature, the proposed amendment would be submitted to voters at a statewide election.

After considerable discussion, the Legislative Committee determined to take no position on the proposed amendment, in that such action would not reflect the Legislative Policies of the Association. Staff will monitor this bill and will report to Commissioners.

Recommendation 

Staff requests that the Commission consider the staff report, take Support positions on AB 1822 and AB 1253, and direct staff to provide letters of Support to the State Legislature.

Alternative to Recommendation 

Sonoma LAFCO Policy: Legislation and Legislative Positions