Special districts: change of organization: mitigation of revenue loss.

The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 provides the sole and exclusive authority and procedure for the initiation conduct, and completion of changes of organization and reorganization for cities and districts by a local agency formation commission established in each county. That act requires that a proposal for certain changes of organization, regarding services provided within a special district, including a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, be made by a resolution of application adopted by the legislative body of that special district that includes specified matters and is submitted with a plan for services, prepared as provided. The act requires the commission to review and approve or disapprove a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, as specified. The act additionally authorizes the commission to impose various terms and conditions to a change of organization or reorganization, including the imposition of taxes, assessments, and other charges for specified purposes. This bill would authorize the commission to propose, as part of the review and approval of a proposal for the establishment of new or different functions or class of services, or the divestiture of the power to provide particular functions or class of services, within all or part of the jurisdictional boundaries of a special district, that the special district, to mitigate any loss of property taxes, franchise fees, and other revenues to any other affected local agency, provide payments to the affected local agency from the revenue derived from the proposed exercise of new or different functions or classes of service. The bill would specify that any payment by the special district to an affected local agency in satisfaction of the proposal would not be considered the payment of a tax from which the special district would be exempt, as provided.