BILL ANALYSIS Ó SENATE GOVERNANCE & FINANCE COMMITTEE Senator Lois Wolk, Chair BILL NO: SB 184 HEARING: 4/17/13 AUTHOR: Governance & Finance Committee FISCAL: Yes VERSION: 4/9/13 TAX LEVY: No CONSULTANT: Weinberger LOCAL GOVERNMENT OMNIBUS ACT OF 2013 Proposes nine changes to state laws governing local governments' powers and duties. Background and Existing Law Each year, local officials discover problems with the state statutes that affect counties, cities, special districts, and redevelopment agencies, as well as the laws on land use planning and development. These minor problems do not warrant separate (and expensive) bills. According to the Legislative Analyst, in 2001-02 the cost of producing a bill was $17,890. Legislators respond by combining several of these minor topics into an annual "omnibus bill." In 2012, for example, the local government omnibus bill was SB 1090 (Senate Governance & Finance Committee) which contained 12 noncontroversial statutory changes, avoiding about $200,000 in legislative costs. Although this practice may violate a strict interpretation of the single-subject and germaneness rules as presented in Californians for an Open Primary v. McPherson (2006), it is an expeditious and relatively inexpensive way to respond to multiple requests. Proposed Law Senate Bill 184, the "Local Government Omnibus Act of 2013," proposes the following changes to the state laws affecting local agencies' powers and duties: State collection of debts owed to special districts . If a person or entity owes money to a city or county, that city or county can request that the State Controller withhold SB 184 -- 4/9/13 -- Page 2 money that the person or entity would otherwise receive from a personal income tax refund, corporate income tax refund, sales tax refund, state lottery winnings, or a claim for payment of money from unclaimed property held by the state (Government Code §12419.8). The Controller can withhold money only when the debt: Has been reduced to a judgment, Is contained in a court order, Is from a bench warrant for a fine, penalty, or assessment, or Is a lien for delinquent unsecured property taxes. Special districts can only ask the State Controller to withhold money from tax refunds, lottery winnings, or unclaimed property payments to collect debts from unpaid bridge tolls, high-occupancy toll lane fees, or other charges on account of nonpayment of bridge toll or high occupancy toll lane fees (Government Code §12419.12, enacted by AB 1175, Torlakson, 2009). California Special Districts Association staff notes that special districts could benefit from the same revenue collection efficiency that benefits cities and counties when they ask the Controller to collect debts by withholding state payments. Senate Bill 184 expands special districts' existing authority to use the State Controller's debt collection program, giving special districts the same statutory authority that cities and counties have to request that the Controller withhold state payments to collect debts [see §§2 and 3 of the bill]. Gender-neutral references to city attorneys . Some statutes that govern city attorneys have not been amended for many decades and use the masculine pronouns "he" and "him" to refer to a city attorney (Government Code §41802, §41803, and §41805). The League of California Cities' General Counsel notes that this gender-specific language does not conform to current usage. Senate Bill 184 replaces outdated references to "he" and "him" with the gender-neutral term "the city attorney" [see §§4 - 6 of the bill]. "Abuse of office" definition . State law requires a local agency's employment contracts to contain a provision to reimburse the local agency for specified salary, legal, and settlement costs if an employee is convicted of a crime involving an abuse of his or her office or position (AB SB 184 -- 4/9/13 -- Page 3 1344, Feuer, 2011). For the purposes of this requirement, Government Code §53243.4 defines "abuse of office" as either: An abuse of public authority, including, but not limited to, waste, fraud, and violation of the law under color of authority. A crime against public justice, including, but not limited to, a crime described in Title 5 (commencing with Section 67) or Title 7 (commencing with Section 92) of Part 1 of the Penal Code. The Local Government Omnibus Act of 2012 (SB 1090, Senate Governance & Finance Committee) added the cross-reference to Title 5 of the Penal Code. Assembly Local Government Committee staff notes that the current definition excludes important crimes that are contained in Title 6 of the Penal Code. Senate Bill 184 adds a cross-reference to Title 6 of the Penal Code to more accurately define the phrase "abuse of office"[see §7 in the bill]. Counties and Infrastructure Financing Districts . Cities and counties can create Infrastructure Financing Districts (IFDs) and issue bonds to pay for community scale public works: highways, transit, water systems, sewer projects, flood control, child care facilities, libraries, parks, and solid waste facilities. To repay the bonds, IFDs divert property tax increment revenues from other local governments -- but not schools -- for 30 years (SB 308, Seymour, 1990). California State Association of Counties staff notes that the statutes governing IFDs only use the term "city" because "city" is defined, for the purposes of the IFD statutes, as including a county and a city and county. The exclusive use of the term "city" throughout the IFD statutes may mislead some readers into thinking that counties are not authorized to use IFDs. Senate Bill 184 removes counties from the definition of a city and inserts the term "county" throughout the statutes governing IFDs [see §§8 - 16 in the bill]. Subdivision Map Act Update . The Subdivision Map Act (Government Code §66410, et seq.) controls how local officials approve the division of property into smaller parcels. To approve a major subdivision, local officials approve a "tentative map," the subdivider fulfills the conditions, and then local officials issue the "final map." For a minor subdivision ("lot split"), the local officials approve and issue a final "parcel map." When the county SB 184 -- 4/9/13 -- Page 4 surveyor or city engineer approves a parcel map, he or she must sign the map, indicate his or her registration number, and stamp the map with his or her seal (Government Code §66450 [a]). When the county surveyor or city engineer approves a final map, he or she must sign the map and indicate his or her registration number, and stamp the map with his or her seal. Additionally, state law requires the licensed professional who prepared a parcel map or final map to include a specified statement on the map. The California Land Surveyor's Association wants this statement to provide additional information about the timing of a map's completion and the identification of the licensee who prepared a map. Senate Bill 184 amends Government Code Sections 66442.5 and 66449 to provide more complete information of the licensee who prepared a map by including the "date signed" and the actual "seal" of the licensee [see §§17 and 18 in the bill]. Public Cemetery District Law's Definition of "Family Member. " In 2003, the Legislature modernized and recodified the Public Cemetery District Law, which governs California's 250 cemetery districts (Health & Safety Code 9000, et seq., recodified by SB 341, Senate Local Government Committee, 2003). The Public Cemetery District Law defines the term "family member" as: any spouse, by marriage or otherwise, child or stepchild, by natural birth or adoption, parent, brother, sister, half-brother, half-sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or any person denoted by the prefix "grand" or "great," or the spouse of any of these persons. State law establishes a statewide domestic partnership registry (AB 26, Migden 1999) and requires that registered domestic partners have the same rights, protections, and benefits as are granted to spouses (AB 205, Goldberg, 2003). Cemetery District officials note that the Public Cemetery District Law's definition of "family member" omits domestic partners. Senate Bill 184 clarifies that a domestic partner is included in the Public Cemetery District Law's definition of "family member" [see §19 in the bill]. Ventura Resource Conservation District's Board of Directors . The 98 resource conservation districts (RCDs) in California conserve soil and water, control runoff, SB 184 -- 4/9/13 -- Page 5 stabilize soil, protect water quality, reclaim water, and develop water storage facilities and distribution systems. RCDs are governed by five-, seven-, or nine-member boards. The number of directors may be changed by resolution adopted by a majority of the members of the board of directors (AB 278, Costa, 1991). The special act governing the Ventura County Resource Conservation District splits the District into three divisions and requires that three members of the board of directors must be elected from each division (AB 1914, Imbrecht and Priolo, 1978). Ventura County Resource Conservation District officials want to eliminate the District's three divisions and reduce the size of the governing board to seven directors who are elected at-large. To allow the Ventura County Resource Conservation District to follow general state laws that govern the size and election of a resource conservation district's board of directors, Senate Bill 184 deletes statutes in the District's special act that require the District to be split into three divisions [see §§20 - 25 in the bill]. Baldwin Hills Conservancy Governing Board . State law establishes the Baldwin Hills Conservancy to acquire and manage public lands within the Baldwin Hills area, and to provide recreational, open space, wildlife habitat restoration and protection, and lands for educational uses within the area (SB 1625, Murray, 2000). The Conservancy's governing board consists of 13 voting members and seven nonvoting members. One of the voting members is the member of the Los Angeles County Board of Supervisors within whose district the majority of the Baldwin Hills area is located (AB 966, Wesson, 2001). Some of the Board's voting members, including the Secretary of the Resources Agency, the Director of Parks and Recreation, the Director of Finance, and the Director of the Los Angeles County Department of Parks can name a designee to sit on the board. Los Angeles County staff notes that the county supervisor who sits on the Conservancy's board is not authorized to name a designee to sit on the board. Senate Bill 184 authorizes the Los Angeles County supervisor who sits as a voting member of the Baldwin Hills Conservancy's governing board to name a designee to sit on the board [see §26 in the bill]. PBID Assessments on Tax-Exempt Property . Proposition 218 (1996) requires owners of real property to approve benefit SB 184 -- 4/9/13 -- Page 6 assessments in a weighted ballot protest proceeding; property owners vote in proportion to their proposed assessments, which reflect how much their property benefits from the proposed public works or public services. The Property and Business Improvement District Law of 1994 allows property owners to petition a city (or county) to set up an improvement district (PBID) and levy assessments on property owners, business owners, or both, to pay for certain improvements and activities (AB 3754, Caldera, 1994). The 1994 Law allows a PBID's management plan to provide that "real property which is exempt by law from real property taxation may nevertheless be included within the boundaries of the district but shall not be subject to assessment on real property." Practitioners who work with PBIDs note that this language is ambiguous and appears to conflict with Proposition 218's special benefit requirements by allowing tax-exempt parcels that benefit from PBID activities and improvements to be excluded from the assessment. Senate Bill 184 deletes the ambiguous language in the 1994 Act that conflicts with Proposition 218 [see §27 in the bill]. State Revenue Impact No estimate. Comment Purpose of the bill . SB 184 compiles nine noncontroversial changes to state laws affecting local agencies and land use into a single bill. Sending a bill through the legislative process costs around $18,000. By avoiding 8 other bills, the Committee's measure avoids over $140,000 in legislative costs. Although the practice may violate a strict interpretation of the single-subject and germaneness rules, the Committee insists on a very public review of each item. More than 100 public officials, trade groups, lobbyists, and legislative staffers see each proposal before it goes into the Committee's bill. Should any item in SB 184 attract opposition, the Committee will delete it. In this transparent process, there is no hidden agenda. If it's not consensus, it's not omnibus. SB 184 -- 4/9/13 -- Page 7 Support and Opposition (4/11/13) Support : County of Los Angeles; California Association of Public Cemeteries; California Land Surveyors Association; California Special Districts Association; California State Association of Counties; MuniServices. Opposition : Unknown.