BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |SB 184                           |Hearing    |4/29/15  |
          |          |                                 |Date:      |         |
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          |Author:   |Senate Governance & Finance      |Tax Levy:  |No       |
          |          |Committee                        |           |         |
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          |Version:  |4/16/15                          |Fiscal:    |Yes      |
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          |Consultant|Weinberger                                            |
          |:         |                                                      |
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                         LOCAL GOVERNMENT OMNIBUS ACT OF 2015



          Proposes several 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 2014, for example, the local  
          government omnibus bill was SB 1462 (Senate Governance & Finance  
          Committee) which contained noncontroversial statutory changes to  
          10 areas of local government law, avoiding more than $150,000 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







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           Senate Bill 184, the "Local Government Omnibus Act of 2015,"  
          proposes the following changes to the state laws affecting local  
          agencies' powers and duties:

           County recorders  .  County recorders accept and officially record  
          legal documents, notices, or papers.  Among the papers that they  
          record are "instruments," which are written papers signed by the  
          persons who are transferring real property.  The County  
          Recorders Association of California is proposing several  
          amendments to clarify statutes governing county recorders'  
          activities and conform state law to current document recording  
          practices:

                 Gender-neutral language  . Some statutes that govern  
               county recorders have not been amended for many decades and  
               use the masculine pronouns "he" and "him" to refer to a  
               county recorder.  Senate Bill 184 replaces outdated  
               references to "he" and "him" with gender-neutral terms.  
               [See SEC. 2, SEC. 3, SEC. 4, SEC. 5, SEC. 6, SEC. 7, SEC.  
               8, SEC. 10, and SEC. 15 of the bill.]

                  Internal revenue stamps  .  State law allows a county  
               recorder to make marginal notations on records to indicate  
               whether "internal revenue stamps" were affixed to specified  
               documents (Government Code §27203).  Senate Bill 184  
               deletes the references to "internal revenue stamps" and  
               substitutes language that allows a recorder to make  
               marginal notations as part of the recording process. [SEC.  
               3.]

                  Separate index of married women's property  .  Section 14  
               of Article XI of California's 1849 Constitution established  
               a wife's right to own property separately from her husband  
               and decreed that, "Laws shall also be passed providing for  
               the registration of the wife's separate property."  Section  
               5 of Chapter 103 of the Statutes of 1850, included language  
               allowing a complete inventory of a wife's separate property  
               to be filed in a county recorder's office as notice that  
               "all property belonging to her, including the inventory,  
               shall be exempt from seizure or execution for the debts of  
               her husband."  State law still requires county auditors to  
               keep an index of the separate property of married women  
               (Government Code §27251).  Senate Bill 184 repeals this  








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               antiquated requirement.  [SEC. 9.]

                  Electronic indexing  .  State law allows a county recorder  
               to keep a "general grantor-grantee index" of specified  
               recorded documents relating to real property transfers  
               (Government Code 27257).  Senate Bill 184 allows a county  
               recorder to combine the general grantor-grantee index in  
               computerized or electronic format and requires that the  
               names of the grantors must be distinguished from the names  
               of the grantees by an easily recognizable mark or symbol.  
               [SEC. 11.]

                  Name of person requesting recordation  .  State law  
               specifies the procedures that a county recorder must follow  
               to record an instrument that is authorized by law to be  
               recorded and deposited in the recorder's office.  Among  
               those procedures is a requirement that the recorder must  
               endorse upon the document the "name of the person at whose  
               request it is recorded" (Government Code §27320).  A more  
               recently enacted statute specifies that the name of a  
               person requesting recording must be shown in the left hand  
               margin of a document (Government Code §27361.6, enacted by  
               AB 689, Tucker, 1992).  Senate Bill 184 deletes the  
               outdated requirement that a recorder must include a  
               requestor's name in the endorsement upon the document.  
               [SEC. 12.]

                  Returning recorded documents  .  Read narrowly, state law  
               could be interpreted as requiring a county recorder to use  
               the mail to return a recorded document to the person who  
               submitted it for recording (Government Code §27321).   
               Senate Bill 184 clarifies that a county recorder may  
               immediately return a document that has been recorded to the  
               party who submitted the document. [SEC. 13.]

                  Tax statement declaration  .  State law requires that a  
               deed or instrument executed to convey fee title to real  
               property must, before a recorder accepts it for recording,  
               note across the bottom of the first page the name and  
               address to which future tax statements may be mailed  
               (Government Code §27321.5).  Senate Bill 184 deletes  
               language specifying that the information must appear  
               "across the bottom" of the page, allowing the tax statement  
               declaration to appear at the top of the page. [SEC. 14.]








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           Subdivision Map Act - Payments for setting final monuments  .  The  
          Subdivision Map Act controls how counties and cities approve the  
          conversion of large landholdings into separate parcels.  The Act  
          requires that an engineer or surveyor making a survey for a  
          final map or parcel map must set sufficient durable monuments so  
          that another engineer or surveyor may readily retrace the survey  
          (Government Code §66495).  A city or county may require a  
          subdivider to provide a deposit to ensure the payment of various  
          fees and services related to a final map or parcel map,  
          including payment of the cost of setting the final monuments.   
          The Act requires that if an engineer  or surveyor's costs of  
          setting final monuments are to be paid from the deposit held by  
          the city or county, the payment must be made by the city or  
          county's "legislative body" (Government Code §66497).  As a  
          result an item approving the release of funds from a  
          subdivider's deposit must be placed on the legislative body's  
          agenda for approval.  The California Land Surveyors Association  
          notes that the requirement that a local legislative body must  
          act before an engineer or surveyor can receive payments from a  
          subdivider's deposit can result in substantial delays and  
          unnecessary costs. Senate Bill 184 allows a local legislative  
          body to designate a public officer or employee to release or  
          reduce the amount of a deposit to pay an engineer or surveyor  
          for setting final monuments, subject to specified conditions and  
          rules. [SEC. 16.]

           Subdivision performance securities  .  Counties and cities  
          commonly impose conditions when they approve proposed  
          subdivisions, often requiring the subdividers to install public  
          works such as street lights, curbs, and sewers.  Sometimes  
          subdividers must provide assurances that the work will be  
          completed, including performance bonds, deposits, credit  
          instruments, liens, or other property interests.  Until 2006,  
          counties and cities followed their own procedures in deciding  
          when to release these securities.  At the request of builders,  
          the Legislature adopted uniform procedures and time limits by  
          which counties and cities must either release the securities  
          provided for subdivision conditions or tell the subdividers  
          about the incomplete performance or unsatisfactory work  
          (Government Code §66499.7, enacted by AB 1460, Umberg, 2005).   
          Wary that these new requirements might not work, city officials  
          asked the Legislature to impose a January 1, 2011 sunset clause.  
           In 2010, the Legislature extended the statute's sunset date by  








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          five years, until January 1, 2016.  Since the 2005 Umberg bill,  
          there are no reported problems with the statutory procedures for  
          releasing subdivision performance securities, nor have counties  
          and cities filed any claims for state-mandated local costs.  The  
          California Building Industry Association wants legislators to  
          make the statute permanent.  Senate Bill 184 repeals the sunset  
          date in the statute governing the timeframe and procedures for  
          releasing subdivision performance securities, thereby allowing  
          the statute to remain in effect indefinitely. [SEC. 17.]

           County Auditors and Sanitation and Sewage Systems  .  Cities,  
          counties, special districts, and authorized public corporations  
          can collect fees for the sanitation and sewage services and  
          facilities they provide (Health & Safety Code §5471).  If a  
          local government wants to collect these fees as part of its  
          general taxes, or if it plans to place a lien on a parcel of  
          land to collect these charges, the Health and Safety Code  
          requires officials to give written notice to affected property  
          owners and file a copy of this notice with "the auditor."  The  
          Code defines "auditor" as "the financial officer of the [local  
          government] entity" (Id. at §§5473 and 5474 et seq., 5740). The  
          California State Association of Counties notes that the word  
          "auditor" in this context is confusing, as these code sections  
          only relate to duties and powers of county auditors.  Senate  
          Bill 184 adds the word "county" before the word "auditor" in the  
          three relevant sections of the Health and Safety Code. [See SEC.  
          18, SEC. 19, and SEC. 20 of the bill].

           Public utility districts cross-reference correction  .  The  
          California Public Contract Code specifies rules that public  
          utility districts must follow when letting contracts for certain  
          types of work (Public Contract Code §20200 et seq.).  The Tahoe  
          City Public Utility District notes that a Public Contract Code  
          provision contains an erroneous cross-reference to the Public  
          Utility Code statutes that govern public utility districts.   
          Senate Bill 184 corrects the cross-reference. [SEC. 21.]


           California Uniform Public Construction Cost Accounting Act  
          updates  .  The Public Contract Code spells out the procedures  
          that local officials follow when they build public works  
          projects, including limits on the contracts' values.  When  
          counties, cities, special districts, school districts, and  
          community college districts voluntarily adopt the standards and  








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          procedures of the Uniform Public Construction Cost Accounting  
          Act (UPCCAA), they can use higher limits for their contracts  
          (Public Contract Code §22000, enacted by AB 1666, Cortese,  
          1983).  About 770 local agencies participate.  The UPCCAA  
          created the Uniform Public Construction Cost Accounting  
          Commission (the Commission), which is responsible for  
          administering the UPCCAA.  The Commission consists of fourteen  
          members: thirteen are appointed by the State Controller and one  
          is a designated member of the Contractors' State License Board.  
          Seven members represent the public sector (counties, cities,  
          school districts, and special districts).  Six members represent  
          the private sector (public works contractors and unions).  At  
          its December 17, 2014 meeting, the Commission voted unanimously  
          to approve several proposed amendments to the UPCCAA to clarify  
          some provisions and improve the Act's functionality:

                  School representatives  . The UPCCAA requires that two  
               commission members must represent school districts, one  
               with an average daily attendance over 25,000 and one with  
               an average daily attendance under 25,000 (Public Contract  
               Code §22010).  Senate Bill 184 repeals the language  
               specifying average daily attendance thresholds, thereby  
               allowing the Commission's two school representatives to  
               come from districts of any size. [SEC. 22.]

                  Controller's appointments  .  The UPCCAA specifies that  
               the members of the commission hold office for terms of  
               three years, and until their successors are appointed  
               (Public Contract Code §22014).  Senate Bill 184 clarifies  
               that the State Controller may reappoint members for  
               subsequent three year terms.  Senate Bill 184 also  
               increases, from 90 days to 120 days, the period of time  
               within which the Controller must appoint a replacement to  
               fill a vacancy on the Commission.  [SEC. 23.]

                  Travel reimbursements  . Commission members cannot receive  
               compensation for serving on the Commission, but must be  
               reimbursed for travel and other expenses necessarily  
               incurred in the performance of their duties (Public  
               Contract Code §22015).  Senate Bill 184 specifies that the  
               reimbursement rates must conform to the Controller's travel  
               guideline rates. [SEC. 24.]

                  Updates to OMB circular  .  The UPCCAA require the  








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               Commission, as part of its deliberations and review, to  
               take into consideration relevant provisions of Office of  
               Management and Budget Circular A-76, which relates to the  
               performance of commercial activities (Public Contract Code  
               §22017).  Senate Bill 184 clarifies that the Commission's  
               consideration should include any periodical revisions of  
               that OMB circular. [SEC. 25.]

                  Informal bid solicitation procedures  .  The UPCCAA  
               requires participating local agencies to adopt an informal  
               bidding ordinance that, among other things, specifies the  
               manner in which notices inviting informal bids are to be  
               sent to a list of qualified contractors, construction trade  
               journals, or both (Public Contract Code §22034).  Senate  
               Bill 184 clarifies the informal bid solicitation procedures  
               and allows notices inviting informal bids to be mailed,  
               faxed, or emailed to the appropriate contractors list or  
               trade journals. [SEC. 26 and SEC. 27.]

                  Adoption of plans, specifications, and working details  .   
               The UPCCAA requires a participating agency's governing body  
               to adopt plans, specifications, and working details for  
               public projects that exceed a specified value. Senate Bill  
               184 allows the plans, specifications, and working details  
               to be prepared by a designated representative of the  
               governing body, which will accommodate the Division of the  
               State Architect's role in the plan approval process for  
               school districts. [SEC. 28.]

                  Commission review of non-accounting practices  .  Senate  
               Bill 184 requires the Commission to review the  
               non-accounting practices of any participating public agency  
               where an interested party presents evidence that the public  
               agency is not in compliance with the UPCCAA's provisions.   
               Senate Bill 184 also specifies the manner in which an  
               interested party must request such a review.  [SEC. 29.]

                  Commission findings after compliance review  .  The UPCCAA  
               requires the Commission to prepare written findings after  
               it reviews an agency's compliance with the Act' provision  
               (Public Contract Code §22044).  The proposed amendments  
               require that the written finding must be presented to the  
               agency with 30 days of the Commission's review.  The UPCCAA  
               requires a local agency to prevent the Commission's  








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               findings to its governing board and requires the board to  
               hold a hearing within 30 days of receiving the findings.   
               The proposed amendments require that the board must be  
               presented with the findings within 30 days and allows the  
               board to hold a hearing within 60 days of receiving the  
               findings.  For Commission findings relating to  
               non-accounting practices, Senate Bill 184 requires the  
               agency's board to notify the commission in writing, within  
               60 days of receipt of written notice of the findings, of  
               the public agency's efforts to comply. [SEC. 30 and SEC.  
               31.]

           California Water District contracting authority  .  All 135  
          California Water Districts are governed by the provisions of the  
          California Water District Law (Water Code §34000 et seq.,  
          enacted by SB 1123, Donnolly, 1951).  The Law requires that  
          contracts necessary to carry out a California Water District's  
          powers and purposes must be executed by a district's president  
          and secretary (Water Code §35406).  Statutes governing several  
          other types of special districts allow the districts' boards to  
          delegate the power to sign contracts to district officers and  
          employees.  For example, the Municipal Water District Law of  
          1911 allows a districts board to "delegate and re-delegate to  
          officers of the district ? the power to bind the district by  
          contract" (Water Code §71309, enacted by SB 15, Backstrand,  
          1963).  Officials of the Irvine Ranch Water District, which is  
          governed by the California Water District Law, note that a  
          strict interpretation of the Law's requirement that a district's  
          president and secretary must sign each contract would create  
          unnecessary administrative burdens.  Replicating statutory  
          language that governs municipal water districts, Senate Bill 184  
          would grant California Water Districts' governing boards the  
          authority to delegate to district officers and employees the  
          power to sign contracts on the district's behalf.  [SEC. 32.]

           State Revenue Impact

           No estimate.




           Comments









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            Purpose of the bill  .  SB 184 compiles, into a single bill,  
          noncontroversial statutory changes to seven parts of state laws  
          that affect local agencies and land use.  Moving a bill through  
          the legislative process costs around $18,000.  By avoiding 6  
          other bills, the Committee's measure avoids more than $100,000  
          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.


           Support and  
          Opposition   (4/23/15)


           Support  :  Air Conditioning Sheet Metal Association;  
          Air-conditioning & Refrigeration Contractors Association;  
          California Building Industry Association; California Land  
          Surveyors Association; California Legislative Conference of the  
          Plumbing, Heating and Piping Industry; Construction Industry  
          Force Account Council; Irvine Ranch Water District; Finishing  
          Contractors Association of Southern California; National  
          Electrical Contractors Association; United Contractors.

           Opposition  :  Unknown.


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