AB 781 Summary

• Authorizes county boards of supervisors to vote to continue a city facing disincorporation if a State Auditor audit shows the territory cannot generate sufficient revenues to provide services and maintain reserves for five years following disincorporation.

• Creates a community services district upon disincorporation to succeed the city in providing fire protection, water, telecommunications, gas/electric utility services, and street/road maintenance within the former city's boundaries.

• Establishes that the disincorporated city's general plan and zoning ordinances continue to apply for at least 10 years, and existing land uses remain authorized for that period without county amendment consent.

• Prohibits county business license tax increases in the disincorporated territory for five years and exempts utility users from county utility user taxes for five years, with both restrictions waivable only upon third-party audit findings of need.

• Requires counties to establish a municipal advisory council within 45 days of disincorporation to advise on planning and services, and to adopt an expedited permit process comparable to the former city's within 90 days.