BILL ANALYSIS Ó
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
Page 2
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
Page 3
Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958