BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 192
Author: Senate Governance and Finance Committee
Amended: 8/16/12
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 3/16/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
La Malfa, Liu
NO VOTE RECORDED: Kehoe
SENATE FLOOR : 36-0, 3/24/11 (Consent)
AYES: Alquist, Anderson, Berryhill, Blakeslee, Cannella,
De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller,
Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La
Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Padilla, Pavley, Price, Rubio, Runner, Simitian,
Steinberg, Vargas, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Calderon, Corbett, Correa, Strickland
ASSEMBLY FLOOR : 78-0, 8/20/12 - See last page for vote
SUBJECT : Validating Act of 2012
SOURCE : Author
DIGEST : This bill enacts the Validating Act of 2012
which validates the organization, boundaries, acts,
proceedings, and bonds of the state government, counties,
cities, special districts, and school districts, among
other public bodies.
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Assembly Amendments (1) make it Validating Act of 2012
instead of the Second Validating Act of 2011, (2) the
exclude redevelopment agencies, Community Development
Commissions, and Joint Powers Authorities acting as
redevelopment agencies, from the provisions of this bill,
(3) remove the urgency clause and (4) remove three
coauthors.
ANALYSIS : For over 70 years, the Legislature's annual
Validating Acts (Acts) have boosted the stability and
credit ratings of state and local bonds. The Acts cure
public officials' mistakes that might otherwise invalidate
boundary changes or bond issues. They also correct errors
or omissions by local agencies and state departments. The
Acts do not protect against fraud, corruption, or
unconstitutional actions.
This bill enacts the Validating Act of 2012 which validates
the organization, boundaries, acts, proceedings, and bonds
of the state government, counties, cities, special
districts, and school districts, among other public bodies.
Comments
According to the Senate Governance and Finance Committee
analysis, the Legislature has adopted Validating Acts for
over 70 years that retroactively fix public officials'
inadvertent procedural errors or omissions. The annual
bills have affected the state government as well as
counties, cities, special districts, school districts, and
other agencies.
The Validating Acts are intended to save taxpayers' money.
Such bills allow bond counsel to issue stronger legal
opinions on the health of the local agency, which result in
higher credit ratings. Higher credit ratings result in
lower interest rates, leading to lower borrowing costs for
the local agencies themselves. Lower borrowing costs in
turn save money for state and local taxpayers. The
Validating Acts cannot be used to forgive fraud,
corruption, or unconstitutional actions.
It has been customary practice for members of the former
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Senate Local Government Committee to jointly author annual
Validating Acts. Following this established tradition, the
Senate Governance and Finance Committee is authoring this
year's Validating Act.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/21/12)
State Controller John Chiang
State Treasurer Bill Lockyer
AFSCME
Association of California Water Agencies
California Association of Local Agency Formation
Commissions
California Association of Recreation and Park Districts
California Association of Sanitation Agencies
California Municipal Utilities Association
California Special Districts Association
California State Association of Counties
County of Sacramento
East Bay Municipal Utility District
Fire Districts Association of California
Midpeninsula Regional Open Space District
Mosquito and Vector Control Association of California
Regional Council of Rural Counties
State Association of County Auditors
Urban Counties Caucus
OPPOSITION : (Verified 8/21/12)
California Redevelopment Association
City of Hesperia
City of Highland
City of San Jose
League of California cities
San Jose Redevelopment Agency
Town of Apple Valley
ARGUMENTS IN SUPPORT : Supporters argue that the annual
Validating Acts are a cost effective way of correcting
inadvertent procedural errors or omissions of the state and
local governments without having to have thousands of
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entities go to the superior court to get their actions
validated.
ARGUMENTS IN OPPOSITION : The League of California Cities
concerns with this bill are with the provisions that strip
all reference to the actions of redevelopment agencies
during the period covered under this bill. The Matosantos
decision did not take effect until February 1, 2012, and
there are potential legitimate actions undertaken by
agencies which could be affected by this bill.
ASSEMBLY FLOOR : 78-0, 8/20/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel Pérez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Furutani, Roger Hernández
AGB:dn 8/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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