CA AB1389

Authorizes local agency formation commissions to propose that special districts provide payments to affected local agencies to mitigate losses of property taxes, franchise fees, and other revenues when establishing new or different functions or services.

Specifies that payments from special districts to affected local agencies shall not be considered tax payments exempt under Article XIII of the California Constitution.

Applies when commissions approve proposals for special districts to establish new or different functions or classes of services, or divest powers to provide particular functions or services within their jurisdictional boundaries.

Amends Section 56824.14 of the Government Code under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.