AB 46

Page 2

SENATE RULES COMMITTEE
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 651-1520 Fax: (916) 327-4478 / AB 46

THIRD READING

Bill No: AB 46

Author: John A. Pérez (D)

Amended: 6/28/11 in Senate

Vote: 21

SENATE GOVERNANCE & FINANCE COMMITTEE: 6-3, 06/22/11

AYES: Wolk, DeSaulnier, Hancock, Hernandez, Kehoe, Liu

NOES: Huff, Fuller, La Malfa

ASSEMBLY FLOOR: 62-7, 04/28/11 - See last page for vote

SUBJECT: Local government: cities

SOURCE: Author

DIGEST: This bill establishes a uniform disincorporation process for any city with a population of less than 150 persons as of January 1, 2010, and allows that city’s respective county board of supervisors to vote to continue the existence of that city within the county’s boundaries in certain circumstances.

ANALYSIS: The California Constitution requires the Legislature to “prescribe uniform procedure for city formation and provide for city powers.” The Constitution also prohibits the annexation of a city to or consolidation with another city without the approval of the city’s voters.

The Cortese-Knox-Hertzberg Act controls how local officials change the boundaries of cities and special districts, putting local agency formation commissions (LAFCOs) in control. LAFCOs’ boundary decisions must be consistent with “spheres of influence” which LAFCOs adopt to show the future boundaries and service areas of the cities and special districts. Before LAFCOs can adopt their spheres of influence, they must prepare “municipal service reviews” which review population growth, public facilities, and service demands.

Besides the more common annexations to cities and special districts, LAFCOs also control city incorporations, consolidations, and disincorporations as well as special district formations, consolidations, and dissolutions.

This bill disincorporates every city that had fewer than 150 people as of January 1, 2010.

This bill exempts these disincorporations from specified provisions of the Cortese-Knox-Hertzberg Act. The bill specifically applies the Act’s provisions for terms and conditions for disincorporated cities. This bill requires LAFCO to oversee these conditions. This bill allows LAFCO to enforce its provisions with writs of mandate.

The bill allows a county board of supervisors to continue a city in existence if the board determines within 90 days of the bill’s effective date that continuing the city would serve a public purpose. The board must find that the city is in an isolated, rural location that makes it impractical for residents to organize another form of local governance. If the board meets these conditions, the city will not disincorporate.

This bill is contingent upon the enactment of AB 781 (J. Perez).

Comments

This bill establishes a uniform disincorporation process for any city with a population of less than 150 persons as of January 1, 2010, according to the Department of Finance’s official records. The disincorporated territory would then become part of the county unincorporated area, unless the county board of supervisors votes to continue the city in existence because the city meets specified conditions in the bill. If the disincorporation carries, the county’s LAFCO would be responsible for the unwinding of the former city’s affairs and debts.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 7/13/11)

Adult Day Health Care Association

Bienestar

Central City Association

City of Los Angeles

City of Maywood

Coalition for Clean Air

Common Cause

Communications Workers of America, Local 9000

Communities for a Better Environment

County of Kern

County of Los Angeles

Huntington Park City Councilman Andy Molina

Huntington Park City Councilman Elba Guerrero

LA Voice PICO

Latino Business Chamber of Greater Los Angeles

Los Angeles County Sheriff’s Department

Monica Garcia, President of the Los Angeles Unified School District Board

Mayor of the City of Fresno

Mayor of the City of Los Angeles

Mayor of the City of Santa Ana

Mona Field, Los Angeles Community College Board of Trustees

Mothers of East Los Angeles

Mujeres de la Tierra

Nancy Pearlman, Los Angeles Community College Board of Trustees

National Association of Women Business Owners

Service Employees International Union

William C. Velasquez Institute

Richard Polanco, Chairman of the California Legislative Latino Institute for Public Policy

OPPOSITION: (Verified 7/13/11)

All American Manufacturing

AmeriPride Uniform Services

Baker Commodities

Bandini Truck Terminal

Ben’s General Store

Berney-Karp Inc.

Bricklayers & Allied Craftworkers, Local 4

Brotherhood of Locomotive Engineers & Trainmen

California Chamber of Commerce

California Contract Cities Association

California Labor Federation

California Manufacturers & Technology Association

California Teamsters Public Affairs Council

Cargill Meat Solutions

Castle & Cooke Cold Storage

Charlie’s Pride Meats

City of Cerritos

City of Vernon

Clean Foods, Inc.

Coast Packing

Command Packaging

Cooperative Purchasers

CR Laurence Company

Crown Poly, Inc.

Culver City Meat Company

Douglas Steel Company

Epic Textiles, Inc.

F. Gaviña & Sons, Inc.

Farmer John Meats

Food Industry Business Roundtable

Golberg and Solovy Foods, Inc.

Hercules Forwarding, Inc.

IBEW, Local 47

International Association of Machinist and Aerospace Workers, Local 947

Jobbers Meat Packing Company, Inc.

Kal Plastics/Tom York Enterprises

King Meat, Inc.

L.A. Washrack

League of California Cities

Los Angeles Area Chamber of Commerce

Los Angeles County Business Federation

Los Angeles County Federation of Labor

Los Angeles/Orange Counties Building and Construction Trades Council

Marantz & Associates

Mt. Vernon Industrial

Nai Capital

National Meat Association

Neptune Foods

Overhill Farms

PABCO Paper

Pacific Coast Coffee Association

Papa Cantella’s, Inc.

Petrelli Electric

Preferred Freezer

ProCases, Inc.

Purchase Environment Consulting & Analytics, LLC

Rehrig Paper Company

Rite-Way Meat Packers, Inc.

Rose and Shore

Rose Meat Services, Inc.

Sir Speedy

Square H Brands, Inc.

Steel Services Company

Sweetner Products

T & T Foods, Inc.

Teamsters Joint Council 7

Teamsters Joint Council 42

Teamsters, Local 63

Teamsters, Local 572

Teamsters, Local 848, Division 56

Teamsters, Local 986

The Ligature

Tom Anderson of Morgan Stanley

Tool & Abrasive Supply, Inc.

True World Foods Los Angeles, LLC

U.S. Growers Cold Storage, Inc.

UFCW, Local 770

Union Ice Company

United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, Local 345

United Food Group, Inc.

United Steel Fence Company

United Transportation Union

Valley Industry & Commerce Association

Vernon Chamber of Commerce

Vernon Police Officers’ Benefit Association

Vivion Inc.

Walters Wholesale Electric

Wayne Provision Company

West Coast Protective League, Glass Molders, Pottery, Plastic International Union

Yonekyu USA, Inc.

ARGUMENTS IN SUPPORT: According to the author’s office, smaller cities often lack the needed checks and balances that all levels of government deserve. When the population is so small, the burden of monitoring government activities falls on the few and therefore no real protections exist. Additionally, cities with very small populations may face political instability because there are too few residents to support the government, and this may contribute to public corruption, voter fraud, and stalled growth.

ARGUMENTS IN OPPOSITION: The City of Vernon argues that this bill will have a harmful impact on the city employees and private business located in Vernon. The California Teamsters Public Affairs Council states that Vernon is an industrial city and is set up to serve industrial enterprises in an efficient and cost effective way. The Teamsters argues that Vernon’s energy prices are far lower in comparison to other service providers, and Vernon has one of the few specialized hazardous materials trained fire department, which has led to lower fire insurance rates. Additionally, the California Contract Cities Association believes that this bill is “an attempt to usurp the authority of a city to exercise local control over planning and land use decisions” and that the bill’s precedent could potentially “impact any city in California should the Legislature wish to impose its misguided authority in the future.”

ASSEMBLY FLOOR: 62-7, 04/28/11

AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Halderman, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, Miller, Mitchell, Monning, Nestande, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Torres, Wieckowski, Williams, Yamada, John A. Pérez

NOES: Conway, Donnelly, Grove, Hagman, Mansoor, Morrell, Swanson

NO VOTE RECORDED: Garrick, Gorell, Harkey, Jones, Knight, Logue, Mendoza, Nielsen, Valadao, Wagner, Vacancy

AGB:nl 7/13/11 Senate Floor Analyses

SUPPORT/OPPOSITION: SEE ABOVE

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