California Senate Bill SB1318 Amended / Bill

 BILL NUMBER: SB 1318AMENDED BILL TEXT AMENDED IN SENATE JUNE 1, 2016 AMENDED IN SENATE APRIL 12, 2016 AMENDED IN SENATE MARCH 28, 2016 INTRODUCED BY Senator Wolk FEBRUARY 19, 2016 An act to  add Section 56378.5 to, and to  amend Sections 56375, 56425,  and 56430   56430, 56653, and 65302.10  of the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST SB 1318, as amended, Wolk. Local government: drinking water infrastructure or services: wastewater infrastructure or services. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 governs the procedures for the formation and change of organization of cities and special districts.  Existing law authorizes a local agency formation commission to initiate proposals by resolution of application for, among other things, the consolidation of a district, a merger, and the formation of a new district or districts.   This bill would additionally authorize a local agency formation commission to initiate a proposal by resolution of application for the annexation of a disadvantaged unincorporated community, as specified.   Existing law requires an applicant for a change of organization or reorganization to include a plan for providing services within the affected territory that includes, among other things, an enumeration and description of the services to be extended to the affected territory and an indication of when those services can feasibly be extended to the affected territory.   This bill would additionally require an applicant to include an enumeration and description of the services currently provided, and would require an indication of when services can feasibly be extended to the affected territory if new services are proposed.  Existing law, except as otherwise provided, prohibits a local agency formation commission from approving 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, as specified, unless an application to annex the disadvantaged unincorporated community to the subject city has been filed with the executive officer. This bill would extend that prohibition to an annexation to a qualified special district. The bill would define "qualified special district" to mean a special district with more than 500 service connections that provides drinking water or wastewater services. Existing law requires a local agency formation commission to develop and determine the sphere of influence of each city and each special district within the county and to enact policies designed to promote the logical and orderly development of areas within the sphere.  This bill would additionally require a local agency formation commission to enact policies designed to promote the logical and orderly development of areas adjacent to the sphere of influence of each city and special district.   The bill would prohibit a commission from approving a sphere of influence update that removes a disadvantaged community from a city's or special district's sphere of influence unless the commission makes a finding that removal of the community will result in improved service delivery to the community.  Existing law requires a commission, in preparing and updating spheres of influence, to conduct a service review of the municipal services provided in the county or other area designated by the commission. Existing law authorizes the commission, in conducting the review, to assess various alternatives for improving efficiency and affordability of infrastructure and service delivery, as specified, and to include a review of whether the agencies under review are in compliance with the California Safe Drinking Water Act. Where there exists a disadvantaged unincorporated community that lacks adequate drinking water and wastewater services and infrastructure within or contiguous with the subject sphere, this bill would instead require the commission to make the assessment of alternatives and to include the safe drinking water review described above if the information is available from the State Water Resources Control Board or other sources.  This bill would, on or before January 1, 2022, and every 5 years thereafter, require the commission to conduct service reviews sufficient to have reviewed the entire territory of the county. The bill would require the commission to file a map of the county that identifies disadvantaged unincorporated communities that lack safe drinking water or adequate wastewater with the Office of Planning and Research, and would require the Office of Planning and Research to post the map on its Internet Web site. The bill would additionally require the commission, within 2 years of identifying a disadvantaged unincorporated community that lacks safe drinking water or adequate wastewater services, to recommend a plan based on the alternatives analyzed and adopt any actions necessary to implement the plan, as specified.   This bill would, on or before January 1, 2018, and every 5 years thereafter, additionally require a local agency formation commission to identify and determine the location of any disadvantaged unincorporated community, as defined, that is within or adjacent to the sphere of influence of a city or a special district and review the adequacy and need for water and wastewater services within the identified disadvantaged unincorporated communities, as specified. The bill would, on or before January 1, 2020, and every 5 years thereafter, require the commission to adopt a written accessibility plan that addresses any existing service inefficiencies or needs within any identified disadvantaged unincorporated community, and would require a local agency formation commission to take certain steps to implement the plan and address service needs. The bill would, on or before January, 1, 2018, additionally require a local agency formation commission to file a map of the county that identified any disadvantaged unincorporated community that lacks safe drinking water or adequate wastewater and a copy of the accessibility plan.   Existing law requires each city or county, on or before the due date for the next adoption of its housing element, to review and update the land use element of its general plan based on available data, including, but not limited to, the data an analysis prepared by a local agency formation commission in a service review of the municipal services of unincorporated island, fringe, or legacy communities inside or near its boundaries, as specified. Existing law also requires each city and county to, on or before the due date for each subsequent revision of its housing element, review and if necessary amend its general plan to update specified analysis.   This bill would require each city or county, on or before the next adoption of its housing element and on or before the due date for each subsequent revision of its housing element, to additionally incorporate any adopted accessibility plan into the general plan and any update of the land use element of its general plan, as specified.  By imposing new duties on local government officials, this bill would impose a state-mandated local program. 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 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) The annexation of a disadvantaged unincorporated community as defined by Section 56378.5.   (F)   (G)  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 or to a qualified special district 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 disadvantaged unincorporated community are opposed to annexation. (C) For purposes of this paragraph, "a qualified special district" means a special district with more than 500 service connections that provides drinking water or wastewater services. (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 56378.5 is added to the   Government Code   , to read:   56378.5. (a) For purposes of this section, the following terms have the following meanings: (1) "Adequate wastewater services" means services sufficient to meet residents' health and safety needs. (2) "Disadvantaged unincorporated community" means an unincorporated area that is a disadvantaged community as defined by Section 65302.10, or as determined by commission policy, that constitutes all or a portion of a disadvantaged community as defined by Section 79505.5 of the Water Code and that lacks safe drinking water, as defined by subdivision (i) of Section 116681 of the Health and Safety Code, or adequate wastewater services. (b) (1) On or before January 1, 2018, and every five years thereafter, the commission shall identify and determine the location of any disadvantaged unincorporated community that is within or adjacent to the sphere of influence of a city or special district by using, at a minimum, data at the census block group level. (2) On or before January 1, 2018 and every five years thereafter, the commission shall review the adequacy and need for water and wastewater services within disadvantaged unincorporated communities identified pursuant to paragraph (1) in accordance with the study prepared pursuant to Section 56378 or the service review conducted pursuant to Section 56430. The analysis shall consider, but is not limited to, the analysis prepared by a city or county pursuant to paragraphs (2) and (3) of subdivision (b) of Section 65302.10. (c) On or before January 1, 2020, and every five years thereafter, the commission shall adopt a written accessibility plan after a noticed hearing. The written accessibility shall identify opportunities and strategies to address any existing service inefficiencies or needs within the any community identified pursuant to paragraph (1) of subdivision (b). The accessibility plan may include information and actions identified by a city or county pursuant to paragraphs (2) and (3) of subdivision (b) of Section 65302.10. The accessibility plan shall contain, but is not limited to, statements that address all of the following factors: (1) The local agency best positioned to provide the subject water and or wastewater services to the affected territory. (2) Any actions and alternatives necessary to be taken by the commission, if any, to enable the local agency identified in paragraph (1) to provide services to the affected territory. (3) The actions to be taken by any local agency that the commission believes is necessary to establish services to the disadvantaged unincorporated community. (4) Any related consideration, as deemed relevant by the commission, required to establish public water or wastewater services to the affected disadvantaged unincorporated community with respect to the commission's regional growth management responsibilities pursuant to Section 56301. (5) An analysis of costs and benefits for residents in each affected territory. (6) A written analysis demonstrating that a majority of residents do not oppose the reorganization, service extension or other action anticipated in the accessibility plan. (7) An analysis of local, state, and federal funding sources available to implement the accessibility plan (8) An identification, based on substantial evidence, of any disadvantaged unincorporated community for which there is no technically or economically feasible way of connecting to an existing system through annexation or service extension. These findings shall not interfere with or inform other programs or policies designed to expand basic services to disadvantaged unincorporated communities, including, but not limited to, Article 9 (commencing with Sections 116680) of Chapter 4 of Part 12 of Division 104 of the Health and Safety Code. (d) Costs and fees for services provided to the affected territory through implementation of the accessibility plan shall not exceed costs and fees charged to existing water and wastewater system customers of the applicable service provider. (e) On or before January 1, 2018, the commission shall file a map of the county that identifies disadvantaged unincorporated communities that lack safe drinking water or adequate wastewater along with the adopted accessibility plan prepared pursuant to subdivision (c) in electronic format with the Office of Planning and Research. Maps and adopted accessibility plans addressing disadvantaged unincorporated communities that lack safe drinking water shall also be provided to the State Water Resources Control Board, and those lacking adequate wastewater shall be provided to the State Water Resources Control Board and any affected regional water quality control board. All maps shall be made available on the Office of Planning and Research's and State Water Resources Control Board's Internet Web sites. (f) Within two years of the adoption of an accessibility plan pursuant to subdivision (c), the commission shall hold a noticed public hearing and review the status of every disadvantaged unincorporated community that is subject to the accessibility plan. If the commission determines that the service needs remain unaddressed, the commission shall initiate a change of organization or reorganization pursuant to this chapter. (g) The commission shall hold the public hearing required pursuant to subdivisions (c) and (f) in a place as close as feasible to the affected areas. The commission shall provide a 30 day notice of each hearing to the residents of any identified disadvantaged unincorporated community and any other stakeholder including, but not limited to, the State Water Resources Control Board, cities, counties, and special districts. The hearing shall provide residents of the disadvantaged unincorporated communities an opportunity for public comment. (h) Any actions taken to implement an adopted accessibility plan pursuant tor this section shall not be subject to an election or any protest proceedings, as defined in section 56069.5. The commission shall not take action to implement an adopted accessibility plan if the commission finds, based upon written evidence, that a majority of the residents within the affected territory are opposed to the recommended action. (i) Any action taken by the commission pursuant to this section shall include a condition requiring the sufficient completion, as determined by the commission, of an engineering, funding, and other related planning activity by the local agency necessary to establish services to the affected territory. (j) The commission shall be eligible for reimbursement by the state for the initiation and implementation of and accessibility plan pursuant to this section.   SEC. 2.   SEC. 3.  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 or adjacent to 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 or adjacent to 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.  (k) The commission shall not approve a sphere of influence update that removes a disadvantaged community from a city or a special district unless the commission makes a finding, based on written evidence, that the removal of the disadvantaged community will result in improved service delivery to the community.   SEC. 3.   SEC. 4.  Section 56430 of the Government Code is amended to read: 56430. (a) In order to prepare and to update spheres of influence in accordance with Section 56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. The commission shall include in the area designated for service review the county, the region, the subregion, or any other geographic area as is appropriate for an analysis of the service or services to be reviewed, and shall prepare a written statement of its determinations with respect to each of the following: (1) Growth and population projections for the affected area. (2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence. (3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence. (4) Financial ability of agencies to provide services. (5) Status of, and opportunities for, shared facilities. (6) Accountability for community service needs, including governmental structure and operational efficiencies. (7) Any other matter related to effective or efficient service delivery, as required by commission policy. (b) In conducting a service review, the commission shall comprehensively review all of the agencies that provide the identified service or services within the designated geographic area. Where there exists a disadvantaged unincorporated community that lacks adequate drinking water and wastewater services and infrastructure within or contiguous with the subject sphere, the commission shall assess various alternatives for improving efficiency and affordability of drinking water or wastewater infrastructure and service delivery within and contiguous to the sphere of influence, including, but not limited to, the consolidation of governmental agencies or the extension of services, or both. (c) In conducting a service review, the commission shall include a review of whether the agencies under review, including any public water system as defined in Section 116275 of the Health and Safety Code, are in compliance with the California Safe Drinking Water Act (Chapter 4 (commencing with Section 116270) of Part 12 of Division 104 of the Health and Safety Code) if the information is available from the State Water Resources Control Board or other sources. A public water system may satisfy any request for information as to compliance with that act by submission of the consumer confidence or water quality report prepared by the public water system as provided by Section 116470 of the Health and Safety Code. (d) The commission may request information, as part of a service review under this section, from identified public or private entities that provide wholesale or retail supply of drinking water, including mutual water companies formed pursuant to Part 7 (commencing with Section 14300) of Division 3 of Title 1 of the Corporations Code, and private utilities, as defined in Section 1502 of the Public Utilities Code. (e)  (1)    The commission shall conduct a service review before, or in conjunction with, but no later than the time it is considering an action to establish a sphere of influence in accordance with Section 56425 or 56426.5 or to update a sphere of influence pursuant to Section 56425.  (2) On or before January 1, 2022, and every five years thereafter, the commission shall conduct service reviews sufficient to have reviewed the entire territory of the county.   (f) The commission shall file a map of the county that identifies disadvantaged unincorporated communities that lack safe drinking water or adequate wastewater in electronic format with the Office of Planning and Research. The Office of Planning and Research shall make the map available on its Internet Web site.   (g) (1) Within two years of identification of a disadvantaged unincorporated community that lacks safe drinking water or adequate wastewater services pursuant to this section, the commission shall recommend a plan based on the alternatives analyzed and shall adopt any actions necessary to implement the plan, including sphere of influence updates, extensions of service, or changes of organization.   (2) Actions taken to adopt a plan under this subdivision shall not be subject to an election or any protest proceedings, as defined in Section 56069.5, except that the commission shall conduct protest proceedings for residents of the disadvantaged community.   (3) The commission shall not be required to adopt or implement a plan if the commission finds, based on substantial evidence, that there is no technical or economically feasible way of connecting the disadvantaged unincorporated community to an existing system, considering any financial assistance available from the State Water Resources Control Board or any other applicable source of financial assistance. These findings shall not interfere with or inform other programs or policies designed to expand basic services to disadvantaged unincorporated communities, including, but not limited to, Sections 116680 to 116684, inclusive, of the Health and Safety Code.   (h) (1) Notwithstanding Section 56133, 56133.5, or 56375, on and after January 1, 2022, a commission shall not change the sphere of influence of, or authorize extension of services by, a qualifying city or special district if the commission has not done one of the following:   (A) Conducted the analysis required by this section.   (B) Adopted a plan or taken the actions required by subdivision (g).   (2) Notwithstanding Section 56133, 56133.5, or 56375, a commission shall not change the sphere of influence of, or authorize an extension of services by, a qualifying city or special district if the city or special district has been designated in a plan developed pursuant to subdivision (g) to provide water or wastewater services and the city or special district has not begun providing water or wastewater service, as identified by the commission's plan, within three years of being designated in the plan.   (3) The prohibition against a change to a sphere of influence or extension of service pursuant to paragraphs (1) and (2) shall not apply to either of the following:   (A) An application to extend services to, or include in their sphere of influence, a disadvantaged unincorporated community.   (B) An extension of service authorized pursuant to subdivision (c) of Section 56133.   (i) As used in this section, "a qualifying city or special district" means a city or special district that provides water service or wastewater services and serves 500 or more connections.   SEC. 5.   Section 56653 of the   Government Code   , as amended by Section 2 of Chapter 784 of the Statutes of 2014, is   amended to read:  56653. (a) If a proposal for a change of organization or reorganization is submitted pursuant to this part, the applicant shall submit a plan for providing services within the affected territory. (b) The plan for providing services shall include all of the following information and any additional information required by the commission or the executive officer: (1) An enumeration and description of the services  currently provided or  to be extended to the affected territory. (2) The level and range of those services. (3) An indication of when those services can feasibly be extended to the affected  territory.   territory, if new services are proposed.  (4) An indication of any improvement or upgrading of structures, roads, sewer or water facilities, or other conditions the local agency would impose or require within the affected territory if the change of organization or reorganization is completed. (5) Information with respect to how those services will be financed. (c) (1) In the case of a change of organization or reorganization initiated by a local agency that includes a disadvantaged, unincorporated community as defined in Section 56033.5, a local agency may include in its resolution of application for change of organization or reorganization an annexation development plan adopted pursuant to Section 99.3 of the Revenue and Taxation Code to improve or upgrade structures, roads, sewer or water facilities, or other infrastructure to serve the disadvantaged, unincorporated community through the formation of a special district or reorganization of one or more existing special districts with the consent of each special district's governing body. (2) The annexation development plan submitted pursuant to this subdivision shall include information that demonstrates that the formation or reorganization of the special district will provide all of the following: (A) The necessary financial resources to improve or upgrade structures, roads, sewer, or water facilities or other infrastructure. The annexation development plan shall also clarify the local entity that shall be responsible for the delivery and maintenance of the services identified in the application. (B) An estimated timeframe for constructing and delivering the services identified in the application. (C) The governance, oversight, and long-term maintenance of the services identified in the application after the initial costs are recouped and the tax increment financing terminates. (3) If a local agency includes an annexation development plan pursuant to this subdivision, a local agency formation commission may approve the proposal for a change of organization or reorganization to include the formation of a special district or reorganization of a special district with the special district's consent, including, but not limited to, a community services district, municipal water district, or sanitary district, to provide financing to improve or upgrade structures, roads, sewer or water facilities, or other infrastructure to serve the disadvantaged, unincorporated community, in conformity with the requirements of the principal act of the district proposed to be formed and all required formation proceedings. (4) Pursuant to Section 56881, the commission shall include in its resolution making determinations a description of the annexation development plan, including, but not limited to, an explanation of the proposed financing mechanism adopted pursuant to Section 99.3 of the Revenue and Taxation Code, including, but not limited to, any planned debt issuance associated with that annexation development plan. (d) This section shall not preclude a local agency formation commission from considering any other options or exercising its powers under Section 56375. (e) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.  SEC. 6.   Section 56653 of the   Government Code   , as added by Section 3 of Chapter 784 of the   Statutes of 2014, is amended to read:  56653. (a) If a proposal for a change of organization or reorganization is submitted pursuant to this part, the applicant shall submit a plan for providing services within the affected territory. (b) The plan for providing services shall include all of the following information and any additional information required by the commission or the executive officer: (1) An enumeration and description of the services  currently provided or  to be extended to the affected territory. (2) The level and range of those services. (3) An indication of when those services can feasibly be extended to the affected  territory.   territory, if new services are proposed.  (4) An indication of any improvement or upgrading of structures, roads, sewer or water facilities, or other conditions the local agency would impose or require within the affected territory if the change of organization or reorganization is completed. (5) Information with respect to how those services will be financed. (c) This section shall become operative on January 1, 2025.  SEC. 7.   Section 65302.10 of the   Government Code   is amended to read:  65302.10. (a) As used in this section, the following terms shall have the following meanings: (1) "Community" means an inhabited area within a city or county that is comprised of no less than 10 dwellings adjacent or in close proximity to one another. (2) "Disadvantaged unincorporated community" means a fringe, island, or legacy community in which the median household income is 80 percent or less than the statewide median household income. (3) "Fringe community" means any inhabited and unincorporated territory that is within a city's sphere of influence. (4) "Island community" means any inhabited and unincorporated territory that is surrounded or substantially surrounded by one or more cities or by one or more cities and a county boundary or the Pacific Ocean. (5) "Legacy community" means a geographically isolated community that is inhabited and has existed for at least 50 years. (b) On or before the due date for the next adoption of its housing element pursuant to Section 65588, each city or county shall review and update the land use element of its general plan, based on available data, including, but not limited to, the data and analysis developed pursuant to  Section   Sections 56378.5 and  56430, of unincorporated island, fringe, or legacy communities inside or near its boundaries. The updated land use element shall include all of the following: (1) In the case of a city, an identification of each island or fringe community within the city's sphere of influence that is a disadvantaged unincorporated community. In the case of a county, an identification of each legacy community within the boundaries of the county that is a disadvantaged unincorporated community, but not including any area within the sphere of influence of any city. This identification shall include a description of the community and a map designating its location. (2) For each identified community, an analysis of water, wastewater, stormwater drainage, and structural fire protection needs or deficiencies. (3) An analysis, based on then existing available data, of benefit assessment districts or other financing alternatives that could make the extension of services to identified communities financially feasible. (c) On or before the due date for each subsequent revision of its housing element pursuant to Section 65588, each city and county shall review, and if necessary amend, its general plan to update the analysis required by this section  and by Sections 56378.5 and 56430  .  (d) On or before the due date for the each subsequent revision of its housing element pursuant to Section 65588. each city and county shall incorporate relevant components of the accessibility plan developed pursuant to Section 56378.5 and the analysis required by Section 56430 into its land use element.   SEC. 4.   SEC. 8.  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.