BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 184|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 184
          Author:   Committee on Governance and Finance  
          Amended:  4/16/15  
          Vote:     21  

           SENATE GOVERNANCE & FIN. COMMITTEE:  6-0, 4/29/15
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
           NO VOTE RECORDED:  Moorlach

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/11/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Local government:  omnibus bill


          SOURCE:    Author


          DIGEST:  This bill proposes several non-controversial changes to  
          state laws governing local governments' powers and duties.


          ANALYSIS:   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  








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          government omnibus bill was SB 1462 (Committee on Governance and  
          Finance, Chapter 201), which contained noncontroversial  
          statutory changes to 10 areas of local government law, avoiding  
          more than $150,000 in legislative costs.  


          This bill proposes the following changes to the state laws  
          affecting local agencies' powers and duties:


          1)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:


             a)   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.  


               This bill 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  
               this bill.]


             b)   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).  


               This bill deletes the references to "internal revenue  
               stamps" and substitutes language that allows a recorder to  
               make marginal notations as part of the recording process.  
               [See SEC. 3 of this bill.]









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             c)   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).  


               This bill repeals this antiquated requirement.  [See SEC. 9  
               of this bill.]


             d)   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).  


               This bill 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. [See SEC. 11 of this bill.]


             e)   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).  








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               This bill deletes the outdated requirement that a recorder  
               must include a requestor's name in the endorsement upon the  
               document. [See SEC. 12 of this bill.]


             f)   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).  


               This bill clarifies that a county recorder may immediately  
               return a document that has been recorded to the party who  
               submitted the document. [See SEC. 13 of this bill.]


             g)   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).  


               This bill 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.  
               [See SEC. 14 of this bill.]


          2)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  







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            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. 


            This bill 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. [See  
            SEC. 16 of this bill.]


          3)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,  
            Chapter 411, Statutes of 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  
            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.  









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            This bill 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. [See SEC. 17 of this bill.]


          4)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.  


            This bill 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 this bill].


          5)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.  


            This bill corrects the cross-reference. [See SEC. 21 of this  
            bill.]


          6)California Uniform Public Construction Cost Accounting Act  
            updates.  The Public Contract Code spells out the procedures  







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            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 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 (Commission), which is responsible for  
            administering the UPCCAA.  The Commission consists of 14  
            members:  13 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:


             a)   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).  


               This bill repeals the language specifying average daily  
               attendance thresholds, thereby allowing the Commission's  
               two school representatives to come from districts of any  
               size. [See SEC. 22 of this bill.]


             b)   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).  


               This bill clarifies that the State Controller may reappoint  
               members for subsequent three year terms.  This bill also  
               increases, from 90 days to 120 days, the period of time  







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               within which the Controller must appoint a replacement to  
               fill a vacancy on the Commission.  [See SEC. 23 of this  
               bill.]


             c)   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).  


               This bill specifies that the reimbursement rates must  
               conform to the Controller's travel guideline rates. [See  
               SEC. 24 of this bill.]


             d)   Updates to Office of Management and Budget (OMB)  
               circular.  The UPCCAA requires the Commission, as part of  
               its deliberations and review, to take into consideration  
               relevant provisions of OMB Circular A-76, which relates to  
               the performance of commercial activities (Public Contract  
               Code §22017).  


               This bill clarifies that the Commission's consideration  
               should include any periodical revisions of that OMB  
               circular. [See SEC. 25 of this bill.]


             e)   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).  


               This bill 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. [See SEC. 26 and SEC. 27 of this  
               bill.]








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             f)   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. 


               This bill 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. [See SEC. 28 of this bill.]


             g)   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.  


               This bill also specifies the manner in which an interested  
               party must request such a review.  [See SEC. 29 of this  
               bill.]


             h)   Commission findings after compliance review.  The UPCCAA  
               requires the Commission to prepare written findings after  
               it reviews an agency's compliance with the Act's provision  
               (Public Contract Code §22044).  The proposed amendments  
               require that the written finding must be presented to the  
               agency within 30 days of the Commission's review.  The  
               UPCCAA requires a local agency to present the Commission's  
               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, this bill requires the agency's board to notify  
               the Commission in writing, within 60 days of receipt of  







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               written notice of the findings, of the public agency's  
               efforts to comply. [See SEC. 30 and SEC. 31 of this bill.]


          7)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, Donnelly, 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 district's 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.   


             This bill grants California Water Districts' governing boards  
            the authority to delegate to district officers and employees  
            the power to sign contracts on the district's behalf.  [See  
            SEC. 32 of this bill.]


          Comments


          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 six other bills, the  
          Committee's bill 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  







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          it.  In this transparent process, there is no hidden agenda.  If  
          it's not consensus, it's not omnibus.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee:

           Potential minor reimbursable mandate costs related to  
            provisions that eliminate the sunset on releasing subdivision  
            performance securities.  It is noted that no mandate claims  
            have been filed in the 10 years that these provisions have  
            been in statute, so it is unlikely that local agencies would  
            submit a reimbursement claim in the future.

           The remaining provisions of this bill are expected to have  
            negligible fiscal impacts.


          SUPPORT:   (Verified5/12/15)


          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:   (Verified5/12/15)


          None received



          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
          5/13/15 16:45:30







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