BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 184


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          Date of Hearing:  July 1, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          SB  
          184 (Committee on Governance and Finance) - As Amended June 15,  
          2015


          SENATE VOTE:  36-0


          SUBJECT:  Local government: omnibus bill.


          SUMMARY:  Enacts the Local Government Omnibus Bill of 2015,  
          which proposes a number of non-controversial changes to existing  
          laws governing the powers and duties of local agencies.  


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, there are potential minor reimbursable mandate costs  
          related to provisions that eliminate the sunset on releasing  
          subdivision performance securities.  The Senate Appropriations  
          Committee notes 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.


          COMMENTS:  










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          1)Bill Summary.  This bill enacts the Local Government Omnibus  
            Act of 2015, which includes the following provisions:


             a)   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.  



               Existing law, which governs county recorders, has not been  
               amended for many decades and uses the pronouns "he" and  
               "him" to refer to a county recorder.  This bill replaces  
               outdated references to "he" and "him" with gender-neutral  
               terms. 





               Current law allows a county recorder to make marginal  
               notations on records to indicate whether "internal revenue  
               stamps" were affixed to specified documents.  This bill  
               deletes the references to "internal revenue stamps" and  
               instead allows a recorder to make marginal notations as  
               part of the recording process. 





               Outdated existing law, pursuant to Section 14 of Article XI  
               of California's 1849 Constitution, which established a  
               wife's right to own property separately from her husband,  
               still requires county auditors to keep an index of the  
               separate property of married women.  This bill repeals this  
               antiquated requirement.  








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               Current law allows a county recorder to keep a "general  
               grantor-grantee index" of specified recorded documents  
               relating to real property transfers.  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. 





               Existing 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".  More  
               recent statute specifies that the name of a person  
               requesting recording must be shown in the left hand margin  
               of a document.  This bill deletes the outdated requirement  
               that a recorder must include a requestor's name in the  
               endorsement upon the document.  





               Read narrowly, existing 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.  This bill clarifies that a county recorder may  
               immediately return a document that has been recorded to the  








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               party who submitted the document. 





               Current 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.  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.  





             b)   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.  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."  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.  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  








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               allows a local legislative body to designate a public  
               officer or employee, who is qualified to prepare or approve  
               parcel maps or final maps, 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.  
                



               Counties and cities may impose conditions when they approve  
               proposed subdivisions, often requiring the subdividers to  
               install public works such as street lights.  Sometimes  
               subdividers must provide assurances that the work will be  
               completed, including performance bonds, deposits, credit  
               instruments, liens, or other property interests.  In 2006,  
               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 with a January 1, 2011, sunset clause  
               (AB 1460, Umberg, 2005).  In 2010, the Legislature extended  
               the statute's sunset date, until January 1, 2016.  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.  


             c)   Clerks.  Several statutes governing a local government's  
               powers to acquire, construct, maintain and operate sanitary  
               sewer systems assign specified duties to the local  
               government's clerk.  Similarly, statutes governing  
               improvement districts assign specified duties to a local  
               government's clerk and contain statutory definitions and  
               uses of the term "clerk" which are ambiguous and could be  
               misinterpreted to refer to a county clerk, a court clerk,  
               or even a county registrar of voters.  This bill clarifies  
               that the term "clerk," as used in several statutes  
               governing local governments' sanitary sewer functions and  








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               business improvement districts, means the clerk of the  
               local agency's legislative body.  



             d)   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.  Current law requires  
               officials to give written notice to affected property  
               owners and file a copy of this notice with "the auditor,"  
               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 Code defines  
               "auditor" as "the financial officer of the [local  
               government] entity" which 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".  



             e)   Small counties and job order contracting.  Current law  
               allows counties to award annual contracts for "repair,  
               remodeling, or other repetitive work," these contracts are  
               commonly referred to as job order contracts, and contains  
               contracting requirements that apply only to counties with  
               fewer than 500,000 residents.  These provisions prevail  
               over other statutes and create ambiguity about whether  
               smaller counties can use the job order contracting  
               authority that is established elsewhere under current law.   
               In 2007, the Legislature passed a bill to eliminate a  
               similar ambiguity over whether existing law allows smaller  
               counties to participate in the Public Construction Cost  
               Accounting Act (SB 206, Cox, 2007).  This bill clarifies  
               that counties with fewer than 500,000 residents may award  
               contracts, pursuant to the provisions of a specified  
               statute governing counties' job order contracts.









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             f)   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.  Existing law contains an  
               erroneous cross-reference to the Public Utility Code  
               statutes that govern public utility districts.  This bill  
               corrects the cross-reference. 



             g)   California Uniform Public Construction Cost Accounting  
               Act updates.  The Public Contract Code establishes  
               procedures for public works projects, including limits on  
               the contracts' values.  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), and can use higher limits for their contracts.   
               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 of which are appointed by the State Controller and  
               one designated member of the Contractors' State License  
               Board.  Seven members represent the public 
             sector (local governments).  Six members represent the  
               private sector (public works contractors and unions).  
             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.  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.  

             The UPCCAA specifies that the members of the commission hold  
               office for terms of three years, and until their successors  








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               are appointed.  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 within which the Controller must appoint  
               a replacement to fill a vacancy on the Commission.  

             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.  This bill specifies that the reimbursement rates  
               must conform to the Controller's travel guideline rates. 

             The UPCCAA requires the Commission, as part of its  
               deliberations and review, to take into consideration  
               relevant provisions of the Office of Management and Budget  
               Circular A-76, which relates to the performance of  
               commercial activities.  This bill clarifies that the  
               Commission's consideration should include any periodical  
               revisions of that OMB circular. 

             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.  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. 

             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.   

             The UPCCAA requires the Commission to prepare written  








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               findings after it reviews an agency's compliance with the  
               Act' provision.  This bill requires 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.  This bill  
               requires 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 written notice of the  
               findings, of the public agency's efforts to comply.  




             h)   Summarily vacating public service easements.  As a  
               condition of property development, cities and counties may  
               require developers to dedicate public service easements  
               that provide a legal basis for utilities and other public  
               facilities to occupy land within the development.  In some  
               cases, these public service easements are never used for  
               the purposes for which they were originally intended.   
               Current law specifies the manner in which cities and  
               counties can summarily vacate public service easements that  
               are no longer needed.  Proponents of this bill argue that  
               the procedures for summarily vacating public service  
               easements, which require a  local legislative body to adopt  
               a "resolution of vacation" at a public hearing, can be  
               unnecessarily time consuming and costly.  As an  
               alternative, this bill allows a local legislative body to  
               delegate the authority to vacate a public service easement  
               to a designated public officer or employee who is otherwise  
               qualified to prepare easements or approve parcel maps or  
               final maps.  The designated officer or employee can vacate  
               an easement by recording a document that contains the same  
               information that must be stated in a "resolution of  








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               vacation," including a certification that all entities  
               having any right, title, or interest on the public service  
               easement being vacated have been notified of this action. 



             i)   California Water District contracting authority.   
               California Water District Law requires that contracts  
               necessary to carry out a district's powers and purposes  
               must be executed by a district's president and secretary.   
               Existing law governing several other types of special  
               districts allow the districts' boards to delegate the power  
               to sign contracts to district officers and employees.  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.  



             j)   Paso Robles Basin Water District.  Current law  
               authorizes, under the California Water District Law, the  
               governing board structure and powers of the Paso Robles  
               Basin Water District in San Luis Obispo County (AB 2453,  
               Achadjian, 2014).  Existing law specifies that the  
               District's board must be comprised of nine directors, and  
               allows the District's board to adopt emergency regulations,  
               which become effective immediately upon adoption, by the  
               vote of only four or more board members.  This bill  
               corrects this error by requiring that a supermajority vote  
               of seven members of the Paso Robles Basin Water District  
               Board is required to adopt an emergency ordinance.  



          2)Author's Statement.  According to the author, "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  








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            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.  



            "The Senate Governance & Finance Committee responds by  
            combining several of these minor topics into an annual omnibus  
            bill.  In 2014, for example, the Committee's omnibus bill was  
            SB 1462 which contained 10 proposals to change state law,  
            avoiding more than $160,000 in legislative costs (Chapter 201,  
            Statutes of 2014).  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) 38 Cal.4th 735, nevertheless it is an  
            expeditious and relatively inexpensive way to respond to  
            multiple requests."  


          3)Conflicting Legislation.  Provisions of this bill conflict  
            with AB 679 (Allen) and AB 1105 (Daly) and may need amendments  
            to address the conflict, should the bills continue to move  
            through the legislative process.  


          4)Arguments in Support.  Supporters argue that this bill makes  
            several non-controversial changes to the statutes governing  
            local governments that are proposed from a variety of  
            stakeholders and that these minor problems do not warrant  
            separate and expensive bills; therefore, the omnibus bill  
            offers a feasible vehicle to maintain the accuracy and  
            effectiveness of state law.  


          5)Arguments in Opposition.  None on file.  


          REGISTERED SUPPORT / OPPOSITION:









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          Support


          Air Conditioning Sheet Metal Association


          Air-Conditioning & Refrigeration Contractors Association


          Association of California Water Agencies


          California Building Industry Association


          Construction Industry Force Account Council


          California Legislative Conference of the Plumbing, Heating and  
          Piping Industry


          Finishing Contractors Association of Southern California


          National Electrical Contractors Association


          United Contractors


          Wall and Ceiling Alliance












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          Opposition


          None on file




          Analysis Prepared by:Misa Lennox / L. GOV. / (916)  
          319-3958