Bill Text: CA AB2698 | 2011-2012 | Regular Session | Chaptered
Bill Title: Cortese-Knox-Hertzberg Local Government Reorganization
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2012-07-09 - Chaptered by Secretary of State - Chapter 62, Statutes of 2012. [AB2698 Detail]
Download: California-2011-AB2698-Chaptered.html
BILL NUMBER: AB 2698 CHAPTERED
BILL TEXT
CHAPTER 62
FILED WITH SECRETARY OF STATE JULY 9, 2012
APPROVED BY GOVERNOR JULY 9, 2012
PASSED THE SENATE JUNE 18, 2012
PASSED THE ASSEMBLY JUNE 21, 2012
AMENDED IN SENATE JUNE 6, 2012
AMENDED IN ASSEMBLY APRIL 30, 2012
INTRODUCED BY Committee on Local Government (Smyth (Chair), Alejo
(Vice Chair), Bradford, Davis, Gordon, and Hueso)
MARCH 21, 2012
An act to amend Sections 56375, 56425, 56658, 56662, 56827, 56853,
57077, 57102, 57107, 57113, and 57114.5 of, to add Sections 57077.1,
57077.2, 57077.3, and 57077.4 to, to repeal Sections 56854, 57081,
and 57114 of, and to repeal and add Section 56663 of, the Government
Code, and to amend Section 99 of the Revenue and Taxation Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2698, Committee on Local Government. Cortese-Knox-Hertzberg
Local Government Reorganization Act of 2000.
(1) Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, sets forth the powers and duties of a
local agency formation commission, including, among others, the power
to approve the annexation of a contiguous disadvantaged community,
under specified circumstances. Existing law provides that an
application to annex a contiguous disadvantaged community is not
required if a commission finds that a majority of the residents
within the affected territory are opposed to annexation.
This bill would provide that an application to annex a contiguous
disadvantaged community is not required if the commission finds that
a majority of the registered voters within the affected territory are
opposed to annexation.
(2) The act requires a local agency formation commission to
determine the sphere of influence of each local governmental agency
within the county, and to enact policies designated to promote the
logical and orderly development of areas within the sphere of
influence. When adopting, amending, or updating a sphere of influence
for a special district, existing law requires a commission to
require existing districts to file written statements with the
commission specifying the functions or classes of services provided
by those districts.
This bill would instead require a commission to determine the
sphere of influence of each city, and each special district subject
to the jurisdiction of the commission, within the county. The bill
would instead authorize a commission to require existing districts to
file written statements with the commission specifying the functions
or classes of services provided by those districts, rather than
mandating the filing.
(3) The act authorizes a petitioner or legislative body to
initiate proceedings before a local agency formation commission to
submit an application to the executive officer of the principal
county, and requires the executive officer, immediately after
receiving an application and before issuing a certificate of filing,
to give mailed notice that the application has been received to
specified agencies, as specified.
This bill would correct a cross-reference in these provisions.
(4) The act authorizes a local agency formation commission to
approve proposals for changes of organization or reorganization,
consistent with written policies, procedures, and guidelines adopted
by the commission. The act requires a local agency formation
commission to comply with certain procedural requirements prior to
ordering a change of organization or reorganization, including, among
others, requiring voter approval of a change of organization or
reorganization if certain requirements are met. Existing law
authorizes a commission to, without notice and hearing, make
determinations with regard to approval or disapproval of a proposal
for an annexation, detachment, or reorganization that consists solely
of annexations or detachments, or both, and of a county service
area.
This bill would revise and recast those provisions. The bill
would, among other things, specify that voter approval is required
for a change of organization or reorganization that consists of an
incorporation or disincorporation, and provide for specific protest
standards for a change of organization that consists of a dissolution
of a district, a consolidation of 2 or more districts, certain types
of reorganizations, and the merger or establishment of a subsidiary
district. The bill would authorize the waiver of protest proceedings
under specified circumstances, and would set forth procedures that
apply to those waivers, including the mailing of specified notices.
The bill would exempt from voter approval a change of organization
that consists of a dissolution, except if the proposal meets certain
requirements, subject to protest procedures.
(5) The act provides that if a local agency formation commission
has initiated a change of organization or reorganization that affects
more than one special district, the commission may utilize and is
encouraged to utilize a reorganization committee to review the
proposal.
This bill would revise and recast that provision.
(6) The act requires a local agency formation commission to order
the consolidation of districts, dissolution, merger, the
establishment of a subsidiary district, or a reorganization that
includes any of these changes of organization, without an election,
as specified. The act exempts from these provisions, any proposal for
a change of organization or reorganization submitted to a commission
before January 1, 2003, where the Goleta Sanitary District or the
Goleta West Sanitary District is an affected district, as specified.
This bill would repeal this exemption.
(7) 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 a jurisdictional
change, as specified.
This bill would make a technical, nonsubstantive change to those
provisions.
(8) This bill would make other conforming changes to the act to
implement these provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 56375 of the Government Code is amended to
read:
56375. The commission shall have all of the following powers and
duties subject to any limitations upon its jurisdiction set forth in
this part:
(a) (1) To review and approve with or without amendment, wholly,
partially, or conditionally, or disapprove proposals for changes of
organization or reorganization, consistent with written policies,
procedures, and guidelines adopted by the commission.
(2) The commission may initiate proposals by resolution of
application for any of the following:
(A) The consolidation of a district, as defined in Section 56036.
(B) The dissolution of a district.
(C) A merger.
(D) The establishment of a subsidiary district.
(E) The formation of a new district or districts.
(F) A reorganization that includes any of the changes specified in
subparagraph (A), (B), (C), (D), or (E).
(3) A commission may initiate a proposal described in paragraph
(2) only if that change of organization or reorganization is
consistent with a recommendation or conclusion of a study prepared
pursuant to Section 56378, 56425, or 56430, and the commission makes
the determinations specified in subdivision (b) of Section 56881.
(4) A commission shall not disapprove an annexation to a city,
initiated by resolution, of contiguous territory that the commission
finds is any of the following:
(A) Surrounded or substantially surrounded by the city to which
the annexation is proposed or by that city and a county boundary or
the Pacific Ocean if the territory to be annexed is substantially
developed or developing, is not prime agricultural land as defined in
Section 56064, is designated for urban growth by the general plan of
the annexing city, and is not within the sphere of influence of
another city.
(B) Located within an urban service area that has been delineated
and adopted by a commission, which is not prime agricultural land, as
defined by Section 56064, and is designated for urban growth by the
general plan of the annexing city.
(C) An annexation or reorganization of unincorporated islands
meeting the requirements of Section 56375.3.
(5) As a condition to the annexation of an area that is
surrounded, or substantially surrounded, by the city to which the
annexation is proposed, the commission may require, where consistent
with the purposes of this division, that the annexation include the
entire island of surrounded, or substantially surrounded, territory.
(6) A commission shall not impose any conditions that would
directly regulate land use density or intensity, property
development, or subdivision requirements.
(7) The decision of the commission with regard to a proposal to
annex territory to a city shall be based upon the general plan and
prezoning of the city. When the development purposes are not made
known to the annexing city, the annexation shall be reviewed on the
basis of the adopted plans and policies of the annexing city or
county. A commission shall require, as a condition to annexation,
that a city prezone the territory to be annexed or present evidence
satisfactory to the commission that the existing development
entitlements on the territory are vested or are already at build-out,
and are consistent with the city's general plan. However, the
commission shall not specify how, or in what manner, the territory
shall be prezoned.
(8) (A) Except for those changes of organization or reorganization
authorized under Section 56375.3, and except as provided by
subparagraph (B), a commission shall not approve an annexation to a
city of any territory greater than 10 acres, or as determined by
commission policy, where there exists a disadvantaged unincorporated
community that is contiguous to the area of proposed annexation,
unless an application to annex the disadvantaged unincorporated
community to the subject city has been filed with the executive
officer.
(B) An application to annex a contiguous disadvantaged community
shall not be required if either of the following apply:
(i) A prior application for annexation of the same disadvantaged
community has been made in the preceding five years.
(ii) The commission finds, based upon written evidence, that a
majority of the registered voters within the affected territory are
opposed to annexation.
(b) With regard to a proposal for annexation or detachment of
territory to, or from, a city or district or with regard to a
proposal for reorganization that includes annexation or detachment,
to determine whether territory proposed for annexation or detachment,
as described in its resolution approving the annexation, detachment,
or reorganization, is inhabited or uninhabited.
(c) With regard to a proposal for consolidation of two or more
cities or districts, to determine which city or district shall be the
consolidated successor city or district.
(d) To approve the annexation of unincorporated, noncontiguous
territory, subject to the limitations of Section 56742, located in
the same county as that in which the city is located, and that is
owned by a city and used for municipal purposes and to authorize the
annexation of the territory without notice and hearing.
(e) To approve the annexation of unincorporated territory
consistent with the planned and probable use of the property based
upon the review of general plan and prezoning designations. No
subsequent change may be made to the general plan for the annexed
territory or zoning that is not in conformance to the prezoning
designations for a period of two years after the completion of the
annexation, unless the legislative body for the city makes a finding
at a public hearing that a substantial change has occurred in
circumstances that necessitate a departure from the prezoning in the
application to the commission.
(f) With respect to the incorporation of a new city or the
formation of a new special district, to determine the number of
registered voters residing within the proposed city or special
district or, for a landowner-voter special district, the number of
owners of land and the assessed value of their land within the
territory proposed to be included in the new special district. The
number of registered voters shall be calculated as of the time of the
last report of voter registration by the county elections official
to the Secretary of State prior to the date the first signature was
affixed to the petition. The executive officer shall notify the
petitioners of the number of registered voters resulting from this
calculation. The assessed value of the land within the territory
proposed to be included in a new landowner-voter special district
shall be calculated as shown on the last equalized assessment roll.
(g) To adopt written procedures for the evaluation of proposals,
including written definitions consistent with existing state law. The
commission may adopt standards for any of the factors enumerated in
Section 56668. Any standards adopted by the commission shall be
written.
(h) To adopt standards and procedures for the evaluation of
service plans submitted pursuant to Section 56653 and the initiation
of a change of organization or reorganization pursuant to subdivision
(a).
(i) To make and enforce regulations for the orderly and fair
conduct of hearings by the commission.
(j) To incur usual and necessary expenses for the accomplishment
of its functions.
(k) To appoint and assign staff personnel and to employ or
contract for professional or consulting services to carry out and
effect the functions of the commission.
( l ) To review the boundaries of the territory
involved in any proposal with respect to the definiteness and
certainty of those boundaries, the nonconformance of proposed
boundaries with lines of assessment or ownership, and other similar
matters affecting the proposed boundaries.
(m) To waive the restrictions of Section 56744 if it finds that
the application of the restrictions would be detrimental to the
orderly development of the community and that the area that would be
enclosed by the annexation or incorporation is so located that it
cannot reasonably be annexed to another city or incorporated as a new
city.
(n) To waive the application of Section 22613 of the Streets and
Highways Code if it finds the application would deprive an area of a
service needed to ensure the health, safety, or welfare of the
residents of the area and if it finds that the waiver would not
affect the ability of a city to provide any service. However, within
60 days of the inclusion of the territory within the city, the
legislative body may adopt a resolution nullifying the waiver.
(o) If the proposal includes the incorporation of a city, as
defined in Section 56043, or the formation of a district, as defined
in Section 2215 of the Revenue and Taxation Code, the commission
shall determine the property tax revenue to be exchanged by the
affected local agencies pursuant to Section 56810.
(p) To authorize a city or district to provide new or extended
services outside its jurisdictional boundaries pursuant to Section
56133.
(q) To enter into an agreement with the commission for an
adjoining county for the purpose of determining procedures for the
consideration of proposals that may affect the adjoining county or
where the jurisdiction of an affected agency crosses the boundary of
the adjoining county.
(r) To approve with or without amendment, wholly, partially, or
conditionally, or disapprove pursuant to this section the annexation
of territory served by a mutual water company formed pursuant to Part
7 (commencing with Section 14300) of Division 3 of Title 1 of the
Corporations Code that operates a public water system to a city or
special district. Any annexation approved in accordance with this
subdivision shall be subject to the state and federal constitutional
prohibitions against the taking of private property without the
payment of just compensation. This subdivision shall not impair the
authority of a public agency or public utility to exercise eminent
domain authority.
SEC. 2. Section 56425 of the Government Code is amended to read:
56425. (a) In order to carry out its purposes and
responsibilities for planning and shaping the logical and orderly
development and coordination of local governmental agencies subject
to the jurisdiction of the commission to advantageously provide for
the present and future needs of the county and its communities, the
commission shall develop and determine the sphere of influence of
each city and each special district, as defined by Section 56036,
within the county and enact policies designed to promote the logical
and orderly development of areas within the sphere.
(b) Prior to a city submitting an application to the commission to
update its sphere of influence, representatives from the city and
representatives from the county shall meet to discuss the proposed
new boundaries of the sphere and explore methods to reach agreement
on development standards and planning and zoning requirements within
the sphere to ensure that development within the sphere occurs in a
manner that reflects the concerns of the affected city and is
accomplished in a manner that promotes the logical and orderly
development of areas within the sphere. If an agreement is reached
between the city and county, the city shall forward the agreement in
writing to the commission, along with the application to update the
sphere of influence. The commission shall consider and adopt a sphere
of influence for the city consistent with the policies adopted by
the commission pursuant to this section, and the commission shall
give great weight to the agreement to the extent that it is
consistent with commission policies in its final determination of the
city sphere.
(c) If the commission's final determination is consistent with the
agreement reached between the city and county pursuant to
subdivision (b), the agreement shall be adopted by both the city and
county after a noticed public hearing. Once the agreement has been
adopted by the affected local agencies and their respective general
plans reflect that agreement, then any development approved by the
county within the sphere shall be consistent with the terms of that
agreement.
(d) If no agreement is reached pursuant to subdivision (b), the
application may be submitted to the commission and the commission
shall consider a sphere of influence for the city consistent with the
policies adopted by the commission pursuant to this section.
(e) In determining the sphere of influence of each local agency,
the commission shall consider and prepare a written statement of its
determinations with respect to each of the following:
(1) The present and planned land uses in the area, including
agricultural and open-space lands.
(2) The present and probable need for public facilities and
services in the area.
(3) The present capacity of public facilities and adequacy of
public services that the agency provides or is authorized to provide.
(4) The existence of any social or economic communities of
interest in the area if the commission determines that they are
relevant to the agency.
(5) For an update of a sphere of influence of a city or special
district that provides public facilities or services related to
sewers, municipal and industrial water, or structural fire
protection, that occurs pursuant to subdivision (g) on or after July
1, 2012, the present and probable need for those public facilities
and services of any disadvantaged unincorporated communities within
the existing sphere of influence.
(f) Upon determination of a sphere of influence, the commission
shall adopt that sphere.
(g) On or before January 1, 2008, and every five years thereafter,
the commission shall, as necessary, review and update each sphere of
influence.
(h) In determining a sphere of influence, the commission may
assess the feasibility of governmental reorganization of particular
agencies and recommend reorganization of those agencies when
reorganization is found to be feasible and if reorganization will
further the goals of orderly development and efficient and affordable
service delivery. The commission shall make all reasonable efforts
to ensure wide public dissemination of the recommendations.
(i) When adopting, amending, or updating a sphere of influence for
a special district, the commission shall establish the nature,
location, and extent of any functions or classes of services provided
by existing districts.
(j) When adopting, amending, or updating a sphere of influence for
a special district, the commission may require existing districts to
file written statements with the commission specifying the functions
or classes of services provided by those districts.
SEC. 3. Section 56658 of the Government Code is amended to read:
56658. (a) Any petitioner or legislative body desiring to
initiate proceedings shall submit an application to the executive
officer of the principal county.
(b) (1) Immediately after receiving an application and before
issuing a certificate of filing, the executive officer shall give
mailed notice that the application has been received to each affected
agency, the county committee on school district organization, and
each school superintendent whose school district overlies the
affected territory. The notice shall generally describe the proposal
and the affected territory. The executive officer shall not be
required to give notice pursuant to this subdivision if a local
agency has already given notice pursuant to subdivision (c) of
Section 56654.
(2) It is the intent of the Legislature that an incorporation
proposal shall be processed in a timely manner. With regard to an
application that includes an incorporation, the executive officer
shall immediately notify all affected local agencies and any
applicable state agencies by mail and request the affected agencies
to submit the required data to the commission within a reasonable
timeframe established by the executive officer. Each affected agency
shall respond to the executive officer within 15 days acknowledging
receipt of the request. Each affected local agency and the officers
and departments thereof shall submit the required data to the
executive officer within the timelines established by the executive
officer. Each affected state agency and the officers and departments
thereof shall submit the required data to the executive officer
within the timelines agreed upon by the executive officer and the
affected state departments.
(3) If a special district is, or as a result of a proposal will
be, located in more than one county, the executive officer of the
principal county shall immediately give the executive officer of each
other affected county mailed notice that the application has been
received. The notice shall generally describe the proposal and the
affected territory.
(c) Except when a commission is the lead agency pursuant to
Section 21067 of the Public Resources Code, the executive officer
shall determine within 30 days of receiving an application whether
the application is complete and acceptable for filing or whether the
application is incomplete.
(d) The executive officer shall not accept an application for
filing and issue a certificate of filing for at least 20 days after
giving the mailed notice required by subdivision (b). The executive
officer shall not be required to comply with this subdivision in the
case of an application which meets the requirements of Section 56662
or in the case of an application for which a local agency has already
given notice pursuant to subdivision (c) of Section 56654.
(e) If the appropriate fees have been paid, an application shall
be deemed accepted for filing if no determination has been made by
the executive officer within the 30-day period. An executive officer
shall accept for filing, and file, any application submitted in the
form prescribed by the commission and containing all of the
information and data required pursuant to Section 56652.
(f) When an application is accepted for filing, the executive
officer shall immediately issue a certificate of filing to the
applicant. A certificate of filing shall be in the form prescribed by
the executive officer and shall specify the date upon which the
proposal shall be heard by the commission. From the date of issuance
of a certificate of filing, or the date upon which an application is
deemed to have been accepted, whichever is earlier, an application
shall be deemed filed pursuant to this division.
(g) If an application is determined not to be complete, the
executive officer shall immediately transmit that determination to
the applicant specifying those parts of the application which are
incomplete and the manner in which they can be made complete.
(h) Following the issuance of the certificate of filing, the
executive officer shall proceed to set the proposal for hearing and
give published notice thereof as provided in this part. The date of
the hearing shall be not more than 90 days after issuance of the
certificate of filing or after the application is deemed to have been
accepted, whichever is earlier. Notwithstanding Section 56106, the
date for conducting the hearing, as determined pursuant to this
subdivision, is mandatory.
SEC. 4. Section 56662 of the Government Code is amended to read:
56662. (a) If a proposal for an annexation, a detachment, or a
reorganization consisting solely of annexations or detachments, or
both, or formation of a county service area meets all of the
following criteria, the commission may make determinations upon the
proposal without notice and hearing and may waive protest proceedings
entirely pursuant to Part 4 (commencing with Section 57000):
(1) The territory is uninhabited.
(2) An affected local agency has not submitted a written demand
for notice and hearing during the 10-day period as described in
subdivision (c).
(3) The proposal meets either of the following criteria:
(A) The petition accompanying the proposal is signed by all of the
owners of land within the affected territory.
(B) The proposal is accompanied by proof, satisfactory to the
commission, that all the owners of land within the affected territory
have given their written consent to the proposal.
(b) Except for the determinations authorized to be made by
subdivision (a), the commission shall not make any determinations
upon any proposal, plan of reorganization, or report and
recommendation of a reorganization committee until after public
hearing by the commission on that proposal, plan of reorganization,
or report and recommendation of a reorganization committee.
(c) The commission shall not take any action on the petition or
resolution of application for 10 days following the mailed notice
required under subdivision (b) of Section 56658. Upon written demand
by an affected local agency, filed with the executive officer during
that 10-day period, the commission shall make determinations upon the
petition or resolution of application only after notice and hearing
on the petition or resolution of application.
(d) If a proposal for an annexation, a detachment, or a
reorganization consisting solely of annexations or detachments, or
both, or formation of a county service area meets all of the
following criteria, the commission may make determinations upon the
proposal and waive protest proceedings entirely pursuant to Part 4
(commencing with Section 57000):
(1) The territory is uninhabited.
(2) The proposal is accompanied by proof, satisfactory to the
commission, that all the owners of land within the affected
territory, exclusive of land owned by a private railroad company,
have given their written consent to the proposal and a private
railroad company that is an owner of land within the affected
territory has not submitted written opposition to the waiver of
protest proceedings prior to the conclusion of the commission
hearing.
(3) A subject agency has not submitted written opposition to a
waiver of protest proceedings.
SEC. 5. Section 56663 of the Government Code is repealed.
SEC. 6. Section 56663 is added to the Government Code, to read:
56663. For a change of organization consisting of an annexation
or a detachment, or a reorganization consisting solely of annexations
or detachments, or both, or the formation of a county service area
that would otherwise require the conduct of protest proceedings, the
commission may waive protest proceedings pursuant to Part 4
(commencing with Section 57000) if all of the following have
occurred:
(a) The mailed notice pursuant to Section 56157 has been given to
landowners and registered voters within the affected territory.
(b) The mailed notice discloses to the registered voters and
landowners that unless written opposition to the proposal is received
before the conclusion of the commission proceedings on the proposal,
the commission intends to waive protest proceedings. The notice
shall disclose that there is potential for the extension or
continuation of any previously authorized charge, fee, assessment, or
tax by the local agency in the affected territory.
(c) Written opposition to the proposal from landowners or
registered voters within the affected territory is not received
before the conclusion of the commission proceedings on the proposal.
SEC. 7. Section 56827 of the Government Code is amended to read:
56827. (a) Except as provided in subdivision (b), upon the
presentation of any petition or applications making a proposal for a
reorganization, the commission may take proceedings pursuant to Part
3 (commencing with Section 56650) without referring the proposal to a
reorganization committee, as provided in this part.
(b) The commission may refer to a reorganization committee any
incorporation proposal that includes, or may be modified to include,
any of the following changes of organization affecting an independent
special district: consolidation, dissolution, formation, merger, or
establishment of a subsidiary district.
(c) If the commission has initiated a change of organization or
reorganization that affects more than one special district, the
commission may, and is encouraged to, utilize a reorganization
committee to review the proposal.
SEC. 8. Section 56853 of the Government Code is amended to read:
56853. (a) If a majority of the members of each of the
legislative bodies of two or more local agencies adopt substantially
similar resolutions of application making proposals either for the
consolidation of districts or for the reorganization of all or any
part of the districts into a single local agency, the commission
shall approve, or conditionally approve, the proposal.
(b) Except as provided in subdivision (c), a commission may order
any material change in the provisions or the terms and conditions of
the consolidation or reorganization, as set forth in the proposals of
the local agencies. The commission shall direct the executive
officer to give each subject agency mailed notice of any change prior
to ordering a change. The commission shall not, without the written
consent of all subject agencies, take any further action on the
consolidation or reorganization for 30 days following that mailing.
Upon written demand by any subject agency, filed with the executive
officer during that 30-day period, the commission shall make
determinations upon the proposals only after notice and hearing on
the proposals. If no written demand is filed, the commission may make
those determinations without notice and hearing. The application of
any provision of this subdivision may be waived by consent of all of
the subject agencies.
(c) The commission shall not order a material change in the
provisions of a consolidation or reorganization, as set forth in the
proposals of the local agencies pursuant to subdivision (a), that
would add or delete districts without the written consent of the
applicant local agencies.
SEC. 9. Section 56854 of the Government Code is repealed.
SEC. 10. Section 57077 of the Government Code is amended to read:
57077. If a change of organization consists of an incorporation
or disincorporation, or if a reorganization includes an incorporation
or disincorporation, the commission shall order the change of
organization or reorganization subject to confirmation of the voters.
A protest proceeding shall not be conducted.
SEC. 11. Section 57077.1 is added to the Government Code, to read:
57077.1. (a) If a change of organization consists of a
dissolution, the commission shall order the dissolution without
confirmation of the voters, except if the proposal meets the
requirements of subdivision (b), the
commission shall order the consolidation subject to
confirmation of the voters.
(b) The commission shall order the dissolution subject to the
confirmation of the voters as follows:
(1) If the proposal was not initiated by the commission, and if a
subject agency has not objected by resolution to the proposal, the
commission has found that protests meet one of the following protest
thresholds:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the affected
territory.
(B) In the case of a landowner-voter district, that the territory
is uninhabited and that protests have been signed by at least 25
percent of the number of landowners within the affected territory
owning at least 25 percent of the assessed value of land within the
territory.
(2) If the proposal was not initiated by the commission, and if a
subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.
(B) In the case of a landowner-voter district, that the territory
is uninhabited and protests have been signed by at least 25 percent
of the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
(3) If the proposal was initiated by the commission, and
regardless of whether a subject agency has objected to the proposal
by resolution, written protests have been submitted that meet the
requirements of Section 57113.
(c) Notwithstanding subdivisions (a) and (b) and Section 57102, if
a change of organization consists of the dissolution of a district
that is consistent with a prior action of the commission pursuant to
Section 56378, 56425, or 56430, the commission may do either of the
following:
(1) If the dissolution is initiated by the district board,
immediately approve and order the dissolution without an election or
protest proceedings pursuant to this part.
(2) If the dissolution is initiated by an affected local agency,
by the commission pursuant to Section 56375, or by petition pursuant
to Section 56650, order the dissolution after holding at least one
noticed public hearing, and after conducting protest proceedings in
accordance with this part. Notwithstanding any other law, the
commission shall terminate proceedings if a majority protest exists
in accordance with Section 57078. If a majority protest is not found,
the commission shall order the dissolution without an election.
SEC. 12. Section 57077.2 is added to the Government Code, to read:
57077.2. (a) If the change of organization consists of a
consolidation of two or more districts, the commission shall order
the consolidation without confirmation by the voters, except that if
the proposal meets the requirements of subdivision (b), the
commission shall order the consolidation subject to confirmation of
the voters.
(b) The commission shall order the consolidation subject to the
confirmation of the voters as follows:
(1) If the commission has approved a proposal submitted by
resolution of a majority of the members of the legislative bodies of
two or more local agencies pursuant to Section 56853, and the
commission has found that protests meet one of the following protest
thresholds:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within the
territory subject to the consolidation who own at least 25 percent of
the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the territory.
(B) In the case of a landowner-voter district, the territory is
uninhabited and protests have been signed by at least 25 percent of
the number of landowners within the territory subject to the
consolidation, owning at least 25 percent of the assessed value of
land within the territory.
(2) If the commission has approved a proposal not initiated by the
commission and if a subject agency has not objected by resolution to
the proposal, written protests have been submitted that meet the
requirements specified in subparagraph (A) or (B) of paragraph (1).
(3) If the proposal was not initiated by the commission, and if a
subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.
(B) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
(4) If the commission has approved a proposal initiated by the
commission, and regardless of whether a subject agency has objected
to the proposal by resolution, written protests have been submitted
that meet the requirements of Section 57113.
SEC. 13. Section 57077.3 is added to the Government Code, to read:
57077.3. (a) If a proposal consists of a reorganization not
described in Section 57075, 57076, 57077, 57077.4, or 57111, the
commission shall order the reorganization without confirmation by the
voters except that if the reorganization meets the requirements of
subdivision (b), the commission shall order the reorganization
subject to confirmation of the voters.
(b) The commission shall order the reorganization subject to
confirmation of the voters as follows:
(1) If the commission has approved a proposal submitted by
resolution of a majority of the members of the legislative bodies of
two or more local agencies pursuant to Section 56853, and the
commission has found that protests meet one of the following protest
thresholds:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the affected
territory.
(B) In the case of a landowner-voter district, that the territory
is uninhabited, and that protests have been signed by at least 25
percent of the number of landowners within the affected territory,
owning at least 25 percent of the assessed value of land within the
territory.
(2) If the commission has approved a proposal not initiated by the
commission, and if a subject agency has not objected by resolution
to the proposal, a written protest has been submitted that meets the
requirements specified in subparagraph (A) or (B) of paragraph (1).
(3) If the commission has approved a proposal not initiated by the
commission, and if a subject agency has objected by resolution to
the proposal, written protests have been submitted as follows:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.
(B) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
(4) If the commission has approved a proposal initiated by the
commission, and regardless of whether a subject agency has objected
to the proposal by resolution, written protests have been submitted
that meet the requirements of Section 57113.
(c) This section shall not apply to reorganizations governed by
Sections 56853.5 and 56853.6.
SEC. 14. Section 57077.4 is added to the Government Code, to read:
57077.4. (a) If a reorganization consists of the dissolution of
one or more districts and the annexation of all or substantially all
the territory to another district not initiated pursuant to Section
56853 or by the commission pursuant to Section 56375, the commission
shall order the reorganization without confirmation by the voters
except that if the reorganization meets the requirements of
subdivision (b), the commission shall order the reorganization
subject to confirmation by the voters.
(b) The commission shall order the reorganization subject to
confirmation by the voters as follows:
(1) In the case of inhabited territory, protests have been signed
by either of the following:
(A) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
(B) At least 25 percent of the voters entitled to vote as a result
of residing within, or owning land within, any subject agency within
the affected territory.
(2) In the case of a landowner-voter district, the territory is
uninhabited, and protests have been signed by at least 25 percent of
the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
(3) If the reorganization has been initiated by the commission
pursuant to Section 56375, protests have been submitted that meet the
requirements of Section 57113.
SEC. 15. Section 57081 of the Government Code is repealed.
SEC. 16. Section 57102 of the Government Code is amended to read:
57102. (a) In any resolution ordering a dissolution, the
commission shall make findings upon one or more of the following
matters:
(1) That the corporate powers have not been used, as specified in
Section 56871, and that there is a reasonable probability that those
powers will not be used in the future.
(2) That the district is a registered-voter district and is
uninhabited.
(3) That the board of directors of the district has, by unanimous
resolution, consented to the dissolution of the district.
(4) That the commission has authorized, pursuant to subdivision
(a) of Section 57077.1, the dissolution of the district without an
election.
(b) If the commission makes any of the findings specified in
subdivision (a), the commission may, except as otherwise provided in
Section 57103, order the dissolution of the district without
election.
SEC. 17. Section 57107 of the Government Code is amended to read:
57107. (a) In any resolution ordering a merger or establishment
of a subsidiary district, the commission shall approve the change of
organization without an election except that if the change of
organization meets the requirements of subdivision (b), the
commission shall order the change of organization subject to
confirmation of the voters.
(b) The commission shall order the change of organization subject
to confirmation of the voters within any subject agency as follows:
(1) If the proposal was not initiated by the commission, and if a
subject agency has not objected by resolution to the proposal, the
commission has found that protests meet one of the following protest
thresholds:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within the
affected territory who own at least 25 percent of the assessed value
of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, the affected
territory.
(B) In the case of a landowner-voter district, that the territory
is uninhabited and that protests have been signed by at least 25
percent of the number of landowners within the affected territory
owning at least 25 percent of the assessed value of land within the
territory.
(2) If the proposal was not initiated by the commission, and if a
subject agency has objected by resolution to the proposal, written
protests have been submitted as follows:
(A) In the case of inhabited territory, protests have been signed
by either of the following:
(i) At least 25 percent of the number of landowners within any
subject agency within the affected territory who own at least 25
percent of the assessed value of land within the territory.
(ii) At least 25 percent of the voters entitled to vote as a
result of residing within, or owning land within, any subject agency
within the affected territory.
(B) In the case of a landowner-voter district, that the territory
is uninhabited and protests have been signed by at least 25 percent
of the number of landowners within any subject agency within the
affected territory, owning at least 25 percent of the assessed value
of land within the subject agency.
(3) If the proposal was initiated by the commission, and
regardless of whether a subject agency has objected to the proposal
by resolution, written protests have been submitted that meet the
requirements of Section 57113.
(c) Notwithstanding subdivision (a) or (b), the commission shall
not order the merger or establishment of a subsidiary district
without the consent of the subject city.
SEC. 18. Section 57113 of the Government Code is amended to read:
57113. Notwithstanding Section 57102, 57108, or 57111, for any
proposal that was initiated by the commission pursuant to subdivision
(a) of Section 56375, the commission shall forward the change of
organization or reorganization for confirmation by the voters if the
commission finds either of the following:
(a) In the case of inhabited territory, protests have been signed
by either of the following:
(1) At least 10 percent of the number of landowners within any
subject agency within the affected territory who own at least 10
percent of the assessed value of land within the territory. However,
if the number of landowners within a subject agency is less than 300,
the protests shall be signed by at least 25 percent of the
landowners who own at least 25 percent of the assessed value of land
within the territory of the subject agency.
(2) At least 10 percent of the voters entitled to vote as a result
of residing within, or owning land within, any subject agency within
the affected territory. However, if the number of voters entitled to
vote within a subject agency is less than 300, the protests shall be
signed by at least 25 percent of the voters entitled to vote.
(b) In the case of a landowner-voter district, that the territory
is uninhabited and protests have been signed by at least 10 percent
of the number of landowners within any subject agency within the
affected territory, owning at least 10 percent of the assessed value
of land within the territory. However, if the number of voters
entitled to vote within a subject agency is less than 300, protests
shall be signed by at least 25 percent of the voters entitled to
vote.
SEC. 19. Section 57114 of the Government Code is repealed.
SEC. 20. Section 57114.5 of the Government Code is amended to
read:
57114.5. (a) Notwithstanding subdivision (a) of Section 57077.1
and Sections 57077.4 and 57111, for any proposal involving the
dissolution of the Newhall County Water District, the commission
shall forward the change of organization or reorganization for
confirmation by the voters if the commission finds that a petition
requesting that the proposal be submitted to confirmation by the
voters has been signed by either:
(1) At least 10 percent of the number of voters entitled to vote
as a result of residing within the district.
(2) At least 10 percent of the number of landowners within the
district who own at least 10 percent of the assessed value of land
within the district.
(b) If a petition that meets the requirements of this section has
been submitted, the commission shall approve the proposal subject to
confirmation by the voters of the district.
SEC. 21. Section 99 of the Revenue and Taxation Code is amended to
read:
99. (a) For the purposes of the computations required by this
chapter:
(1) In the case of a jurisdictional change, other than a city
incorporation or a formation of a district as defined in Section
2215, the auditor shall adjust the allocation of property tax revenue
determined pursuant to Section 96 or 96.1, or the annual tax
increment determined pursuant to Section 96.5, for local agencies
whose service area or service responsibility would be altered by the
jurisdictional change, as determined pursuant to subdivision (b) or
(c).
(2) In the case of a city incorporation, the auditor shall assign
the allocation of property tax revenues determined pursuant to
Section 56810 of the Government Code and the adjustments in tax
revenues that may occur pursuant to Section 56815 of the Government
Code to the newly formed city or district and shall make the
adjustment as determined by Section 56810 in the allocation of
property tax revenue determined pursuant to Section 96 or 96.1 for
each local agency whose service area or service responsibilities
would be altered by the incorporation.
(3) In the case of a formation of a district as defined in Section
2215, the auditor shall assign the allocation of property tax
revenues determined pursuant to Section 56810 of the Government Code
to the district and shall make the adjustment as determined by
Section 56810 in the allocation of property tax revenue determined
pursuant to Section 96 or 96.1 for each local agency whose service
area or service responsibilities would be altered by the formation.
(b) Upon the filing of an application or a resolution pursuant to
the Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000 (Division 3 (commencing with Section 56000) of Title 5 of the
Government Code), but prior to the issuance of a certificate of
filing, the executive officer shall give notice of the filing to the
assessor and auditor of each county within which the territory
subject to the jurisdictional change is located. This notice shall
specify each local agency whose service area or responsibility will
be altered by the jurisdictional change.
(1) (A) The county assessor shall provide to the county auditor,
within 30 days of the notice of filing, a report which identifies the
assessed valuations for the territory subject to the jurisdictional
change and the tax rate area or areas in which the territory exists.
(B) The auditor shall estimate the amount of property tax revenue
generated within the territory that is the subject of the
jurisdictional change during the current fiscal year.
(2) The auditor shall estimate what proportion of the property tax
revenue determined pursuant to paragraph (1) is attributable to each
local agency pursuant to Sections 96.1 and 96.5.
(3) Within 45 days of notice of the filing of an application or
resolution, the auditor shall notify the governing body of each local
agency whose service area or service responsibility will be altered
by the jurisdictional change of the amount of, and allocation factors
with respect to, property tax revenue estimated pursuant to
paragraph (2) that is subject to a negotiated exchange.
(4) Upon receipt of the estimates pursuant to paragraph (3), the
local agencies shall commence negotiations to determine the amount of
property tax revenues to be exchanged between and among the local
agencies. Except as otherwise provided, this negotiation period shall
not exceed 60 days. If a local agency involved in these negotiations
notifies the other local agencies, the county auditor, and the local
agency formation commission in writing of its desire to extend the
negotiating period, the negotiating period shall be 90 days.
The exchange may be limited to an exchange of property tax
revenues from the annual tax increment generated in the area subject
to the jurisdictional change and attributable to the local agencies
whose service area or service responsibilities will be altered by the
proposed jurisdictional change. The final exchange resolution shall
specify how the annual tax increment shall be allocated in future
years.
(5) In the event that a jurisdictional change would affect the
service area or service responsibility of one or more special
districts, the board of supervisors of the county or counties in
which the districts are located shall, on behalf of the district or
districts, negotiate any exchange of property tax revenues. Prior to
entering into negotiation on behalf of a district for the exchange of
property tax revenue, the board shall consult with the affected
district. The consultation shall include, at a minimum, notification
to each member and executive officer of the district board of the
pending consultation and provision of adequate opportunity to comment
on the negotiation.
(6) Notwithstanding any other provision of law, the executive
officer shall not issue a certificate of filing pursuant to Section
56658 of the Government Code until the local agencies included in the
property tax revenue exchange negotiation, within the negotiation
period, present resolutions adopted by each such county and city
whereby each county and city agrees to accept the exchange of
property tax revenues.
(7) In the event that the commission modifies the proposal or its
resolution of determination, any local agency whose service area or
service responsibility would be altered by the proposed
jurisdictional change may request, and the executive officer shall
grant, 30 days for the affected agencies, pursuant to paragraph (4),
to renegotiate an exchange of property tax revenues. Notwithstanding
the time period specified in paragraph (4), if the resolutions
required pursuant to paragraph (6) are not presented to the executive
officer within the 30-day period, all proceedings of the
jurisdictional change shall automatically be terminated.
(8) In the case of a jurisdictional change that consists of a city'
s qualified annexation of unincorporated territory, an exchange of
property tax revenues between the city and the county shall be
determined in accordance with subdivision (e) if that exchange of
revenues is not otherwise determined pursuant to either of the
following:
(A) Negotiations completed within the applicable period or periods
as prescribed by this subdivision.
(B) A master property tax exchange agreement among those local
agencies, as described in subdivision (d).
For purposes of this paragraph, a qualified annexation of
unincorporated territory means an annexation, as so described, for
which an application or a resolution was filed on or after January 1,
1998, and on or before January 1, 2015.
(9) No later than the date on which the certificate of completion
of the jurisdictional change is recorded with the county recorder,
the executive officer shall notify the auditor or auditors of the
exchange of property tax revenues and the auditor or auditors shall
make the appropriate adjustments as provided in subdivision (a).
(c) Whenever a jurisdictional change is not required to be
reviewed and approved by a local agency formation commission, the
local agencies whose service area or service responsibilities would
be altered by the proposed change, shall give notice to the State
Board of Equalization and the assessor and auditor of each county
within which the territory subject to the jurisdictional change is
located. This notice shall specify each local agency whose service
area or responsibility will be altered by the jurisdictional change
and request the auditor and assessor to make the determinations
required pursuant to paragraphs (1) and (2) of subdivision (b). Upon
notification by the auditor of the amount of, and allocation factors
with respect to, property tax subject to exchange, the local
agencies, pursuant to the provisions of paragraphs (4) and (6) of
subdivision (b), shall determine the amount of property tax revenues
to be exchanged between and among the local agencies. Notwithstanding
any other provision of law, no such jurisdictional change shall
become effective until each county and city included in these
negotiations agrees, by resolution, to accept the negotiated exchange
of property tax revenues. The exchange may be limited to an exchange
of property tax revenue from the annual tax increment generated in
the area subject to the jurisdictional change and attributable to the
local agencies whose service area or service responsibilities will
be altered by the proposed jurisdictional change. The final exchange
resolution shall specify how the annual tax increment shall be
allocated in future years. Upon the adoption of the resolutions
required pursuant to this section, the adopting agencies shall notify
the auditor who shall make the appropriate adjustments as provided
in subdivision (a). Adjustments in property tax allocations made as
the result of a city or library district withdrawing from a county
free library system pursuant to Section 19116 of the Education Code
shall be made pursuant to Section 19116 of the Education Code, and
this subdivision shall not apply.
(d) With respect to adjustments in the allocation of property
taxes pursuant to this section, a county and any local agency or
agencies within the county may develop and adopt a master property
tax transfer agreement. The agreement may be revised from time to
time by the parties subject to the agreement.
(e) (1) An exchange of property tax revenues that is
required by paragraph (8) of subdivision (b) to be determined
pursuant to this subdivision shall be determined in accordance with
all of the following:
(A) The city and the county shall mutually select a third-party
consultant to perform a comprehensive, independent fiscal analysis,
funded in equal portions by the city and the county, that specifies
estimates of all tax revenues that will be derived from the annexed
territory and the costs of city and county services with respect to
the annexed territory. The analysis shall be completed within a
period not to exceed 30 days, and shall be based upon the general
plan or adopted plans and policies of the annexing city and the
intended uses for the annexed territory. If, upon the completion of
the analysis period, no exchange of property tax revenues is agreed
upon by the city and the county, subparagraph (B) shall apply.
(B) The city and the county shall mutually select a mediator,
funded in equal portions by those agencies, to perform mediation for
a period not to exceed 30 days. If, upon the completion of the
mediation period, no exchange of property tax revenues is agreed upon
by the city and the county, subparagraph (C) shall apply.
(C) The city and the county shall mutually select an arbitrator,
funded in equal portions by those agencies, to conduct an advisory
arbitration with the city and the county for a period not to exceed
30 days. At the conclusion of this arbitration period, the city and
the county shall each present to the arbitrator its last and best
offer with respect to the exchange of property tax revenues. The
arbitrator shall select one of the offers and recommend that offer to
the governing bodies of the city and the county. If the governing
body of the city or the county rejects the recommended offer, it
shall do so during a public hearing, and shall, at the conclusion of
that hearing, make written findings of fact as to why the recommended
offer was not accepted.
(2) Proceedings under this subdivision shall be concluded no more
than 150 days after the auditor provides the notification pursuant to
paragraph (3) of subdivision (b), unless one of the periods
specified in this subdivision is extended by the mutual agreement of
the city and the county. Notwithstanding any other provision of law,
except for those conditions that are necessary to implement an
exchange of property tax revenues determined pursuant to this
subdivision, the local agency formation commission shall not impose
any fiscal conditions upon a city's qualified annexation of
unincorporated territory that is subject to this subdivision.
(f) Except as otherwise provided in subdivision (g), for the
purpose of determining the amount of property tax to be allocated in
the 1979-80 fiscal year and each fiscal year thereafter for those
local agencies that were affected by a jurisdictional change which
was filed with the State Board of Equalization after January 1, 1978,
but on or before January 1, 1979. The local agencies shall determine
by resolution the amount of property tax revenues to be exchanged
between and among the affected agencies and notify the auditor of the
determination.
(g) For the purpose of determining the amount of property tax to
be allocated in the 1979-80 fiscal year and each fiscal year
thereafter, for a city incorporation that was filed pursuant to
Sections 54900 to 54904 after January 1, 1978, but on or before
January 1, 1979, the amount of property tax revenue considered to
have been received by the jurisdiction for the 1978-79 fiscal year
shall be equal to two-thirds of the amount of property tax revenue
projected in the final local agency formation commission staff report
pertaining to the incorporation multiplied by the proportion that
the total amount of property tax revenue received by all
jurisdictions within the county for the 1978-79 fiscal year bears to
the total amount of property tax revenue received by all
jurisdictions within the county for the 1977-78 fiscal year. Except,
however, in the event that the final commission report did not
specify the amount of property tax revenue projected for that
incorporation, the commission shall by October 10 determine pursuant
to Section 54790.3 of the Government Code the amount of property tax
to be transferred to the city.
The provisions of this subdivision shall also apply to the
allocation of property taxes for the 1980-81 fiscal year and each
fiscal year thereafter for incorporations approved by the voters in
June 1979.
(h) For the purpose of the computations made pursuant to this
section, in the case of a district formation that was filed pursuant
to Sections 54900 to 54904, inclusive, of the Government Code after
January 1, 1978, but before January 1, 1979, the amount of property
tax to be allocated to the district for the 1979-80 fiscal year and
each fiscal year thereafter shall be determined pursuant to Section
54790.3 of the Government Code.
(i) For the purposes of the computations required by this chapter,
in the case of a jurisdictional change, other than a change
requiring an adjustment by the auditor pursuant to subdivision (a),
the auditor shall adjust the allocation of property tax revenue
determined pursuant to Section 96 or 96.1 or its predecessor section,
or the annual tax increment determined pursuant to Section 96.5 or
its predecessor section, for each local school district, community
college district, or county superintendent of schools whose service
area or service responsibility would be altered by the jurisdictional
change, as determined as follows:
(1) The governing body of each district, county superintendent of
schools, or county whose service areas or service responsibilities
would be altered by the change shall determine the amount of property
tax revenues to be exchanged between and among the affected
jurisdictions. This determination shall be adopted by each affected
jurisdiction by resolution. For the purpose of negotiation, the
county auditor shall furnish the parties and the county board of
education with an estimate of the property tax revenue subject to
negotiation.
(2) In the event that the affected jurisdictions are unable to
agree, within 60 days after the effective date of the jurisdictional
change, and if all the jurisdictions are wholly within one county,
the county board of education shall, by resolution, determine the
amount of property tax revenue to be exchanged. If the jurisdictions
are in more than one county, the State Board of Education shall, by
resolution, within 60 days after the effective date of the
jurisdictional change, determine the amount of property tax to be
exchanged.
(3) Upon adoption of any resolution pursuant to this subdivision,
the adopting jurisdictions or State Board of Education shall notify
the county auditor who shall make the appropriate adjustments as
provided in subdivision (a).
(j) For purposes of subdivision (i), the annexation by a community
college district of territory within a county not previously served
by a community college district is an alteration of service area. The
community college district and the county shall negotiate the
amount, if any, of property tax revenues to be exchanged. In these
negotiations, there shall be taken into consideration the amount of
revenue received from the timber yield tax and forest reserve
receipts by the community college district in the area not previously
served. In no event shall the property tax revenue to be exchanged
exceed the amount of property tax revenue collected prior to the
annexation for the purposes of paying tuition expenses of residents
enrolled in the community college district, adjusted each year by the
percentage change in population and the percentage change in the
cost of living, or per capita personal income, whichever is lower,
less the amount of revenue received by the community college district
in the annexed area from the timber yield tax and forest reserve
receipts.
(k) At any time after a jurisdictional change is effective, any of
the local agencies party to the agreement to exchange property tax
revenue may renegotiate the agreement with respect to the current
fiscal year or subsequent fiscal years, subject to approval by all
local agencies affected by the renegotiation.
