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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