BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |SB 184 |Hearing |4/29/15 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Senate Governance & Finance |Tax Levy: |No | | |Committee | | | |----------+---------------------------------+-----------+---------| |Version: |4/16/15 |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Weinberger | |: | | ----------------------------------------------------------------- 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 2 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 3 of ? 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.] SB 184 (Governance & Finance Committee) 4/16/15 Page 4 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 5 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 6 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 7 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 8 of ? 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 SB 184 (Governance & Finance Committee) 4/16/15 Page 9 of ? 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. -- END --