BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 182
                                                                  Page  1

          Date of Hearing:   June 12, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
           SB 182 (Committee on Governance and Finance) - As Amended:  May  
                                      28, 2013

           SENATE VOTE  :   36-0
           
          SUBJECT  :   Validations.

           SUMMARY  :  Enacts the Second Validating Act of 2013, which  
          legally confirms the organization, boundaries, acts,  
          proceedings, and bonds of the state government, counties,  
          cities, special districts, school districts, and other public  
          bodies.

           EXISTING LAW  allows agencies to make changes to the  
          organization, boundaries, acts, proceedings, and bonds of the  
          state, cities, counties, special districts, school districts,  
          and other local agencies.

           FISCAL EFFECT  :  None

          COMMENTS  :   

          1)According to the Senate Governance and Finance Committee, the  
            Legislature has adopted annual Validating Acts for more than  
            70 years that retroactively correct public officials'  
            inadvertent procedural errors or omissions.  The annual bills  
            affect the state government, as well as cities, counties,  
            special districts, school districts, and a number of other  
            government agencies.

          2)Beginning in the mid-1920s, the Legislature passed separate  
            validating acts for different types of bonds, several classes  
            of special districts, and various local boundary changes.  By  
            the late 1930s, the practice was to pass annual comprehensive  
            validating acts.

            In Miller v. McKenna 23 Cal.2d 774 (1944), the California  
            Supreme Court explained that the "Legislature may cure  
            irregularities or omissions to comply with provisions of a  
            statute which could have been omitted in the first instance."









                                                                  SB 182
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          3)The Validating Acts save taxpayers money.  The bills allow  
            bond counsels to issue strong legal opinions, which result in  
            higher credit ratings.  Higher credit ratings lead to lower  
            interest rates, which reduce borrowing costs.  Lower borrowing  
            costs save money for state and local taxpayers.  The  
            Validating Acts cannot forgive fraud, corruption, or  
            unconstitutional actions.

            It was customary practice for all members of the former Senate  
            Local Government Committee to jointly author these annual  
            Validating Acts.  Following this established tradition, the  
            Senate Governance and Finance Committee is authoring this  
            year's Validating Acts.  As an urgency measure, SB 181, the  
            First Validating Act, will take effect as soon as the Governor  
            signs the bill into law, retroactively validating government  
            organization, acts, proceedings and bonds effected before the  
            date on which the bill is chaptered.  SB 182, the 

            Second Validating Act, also an urgency bill, will take effect  
            late summer, correcting mistakes that occur after the  
            chaptering of the First Validating Act.  SB 183, the Third  
            Validating Act, will take effect on January 1, 2014, covering  
            the period between the chaptering of SB 182 and the end of  
            2013.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County, and Municipal Employees,  
          AFL-CIO
          Association of California Water Agencies
          California Association of County Treasurers and Tax Collectors
          California Association of Local Agency Formation Commissions
          California Special Districts Association
          California State Association of Counties
          California State Controller John Chiang
          California State Treasurer Bill Lockyer
          East Bay Municipal Utility District
          Rural County Representatives of California
           
            Opposition 
           
          None on file









                                                                 SB 182
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           Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958