The final LAFCO Municipal Service Review Guidelines and LAFCO Incorporation Guidelines are now available for use by LAFCOs and the public.

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Introduction

On September 26, 2000, AB 2838 (Chapter 761, Statutes of 2000), was signed into law.  Authored by Assembly Speaker Robert M. Hertzberg, this legislation, titled the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, marked the most significant reform to local government reorganization law since the 1963 statute that created local agency formation commissions (LAFCOs) in each county. The legislation resulted from the recommendations of the Commission on Local Governance for the 21st Century, created by legislation enacted in 1997. The Commission's recommendations were included in its final report, titled Growth Within Bounds, issued on January 20, 2000. The Commission ceased to exist on July 1, 2000, pursuant to a statutory sunset provision.

AB 2838 requires the Office of Planning and Research to establish task forces and/or consult with affected local agencies to accomplish the following:

(1) By July 1, 2001, in consultation with the State Controller, convene a task force composed of representatives of cities, counties, special districts, and local agency formation commissions, as nominated by their statewide organizations and associations, with expertise in local government fiscal issues for the purpose of creating statewide guidelines for the incorporation process. The guidelines shall be completed by January 1, 2002 and shall serve as minimum statewide guidelines for the incorporation process. The guidelines shall include, but not be limited to, information to assist incorporation proponents to understand the incorporation process, its timelines, and likely costs. They shall also provide direction to affected agencies regarding the type of information that should be included in the comprehensive fiscal analysis of an incorporation, as well as suggestions for alternative ways to achieve fiscally neutral incorporations. The guidelines shall be advisory to the commissions in the review of incorporation proposals. (Government Code, Section 56815.2)

(2) Not later than July 1, 2001, in consultation with individual local agency formation commissions, the California Association of Local Agency Formation Commissions, and other local governments, prepare guidelines for the service reviews to be conducted by commissions pursuant to the statute. The service reviews shall cover the municipal services provided in the county or other appropriate area designated by the LAFCO. The review shall include a written statement of the LAFCO's determinations with respect to each of the following:

1. infrastructure needs or deficiencies;
   
2. growth and population projections for the affected area;
   
3. financing constraints and opportunities;
   
4. cost avoidance opportunities;
   
5. opportunities for rate restructuring;
   
6. opportunities for shared facilities;
   
7. government structure options, including advantages and disadvantages of consolidation or reorganization of service providers;
   
8. evaluation of management efficiencies; and
   
9. local accountability and governance.
   

The commission shall comprehensively review all of the agencies that provide the identified service or services within the designated geographic area. The review shall be conducted before, or in conjunction with, but no later than the time the LAFCO considers an action to establish or to update a sphere of influence. (Government Code, Section 56430)

The following material should be of assistance to local agency formation commissions in fulfilling their new responsibilities under the Act. These documents are in PDF format and require Acrobat Reader, available as a free download from Adobe Systems.

To view the current version of the Cortese-Knox-Hertzberg Local Government Reorganization Act, go to http://www.leginfo.ca.gov and select sections 56000 through 57550 of the California Government Code. You may also purchase a print copy of the Act from the Assembly Publications Office at 1020 N Street, Sacramento, Ca 95814; telephone (916)319-3997.

• The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the complete statute, as of January 1, 2001, indicating changes from prior law)
  
• Summary of changes enacted by AB 2838 (narrative summary of the major provisions of AB 2838, organized functionally)
  
• Table of section cross-references, ordered by section number in previous law (the Cortese-Knox Act)
  
• Table of section cross-references, ordered by section number in the new law (the Cortese-Knox-Hertzberg Act)
  

• Final LAFCO Municipal Service Review Guidelines, August 2003
  
• Final LAFCO Municipal Service Review Guidelines, Appendices, August 2003
  
• Public Review Notice of FINAL DRAFT Service Review Guidelines
  
• FINAL DRAFT Service Review Guidelines
  
• FINAL DRAFT Appendices for Service Review Guidelines
  
• Preliminary Draft Overview
  
• Service Review Issues Paper
  
• Service Review Round One Outreach Meetings Report
  

• Final Guide to the LAFCO Process for Incorporations, October 2003
  
• Final Appendices to A Guide to the LAFCO Process for Incorporation, October 2003
  
• Public Review Notice of FINAL DRAFT Incorporation Guidelines
  
• FINAL DRAFT Incorporation Guidelines, July 2002
  
• FINAL DRAFT Appendices, July 2002
  
• Incorporation Draft Workshops
  
• Public Review Notice of Draft Incorporation Guidelines
  
• Draft Incorporation Guidelines
  
• Appendixes
  
• Processing of Incorporation Petitions Chart
  
• Incorporation Flow Chart
  
• Incorporation Issues Paper and Round One Outreach Meetings Report