BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 184
          Author:   Committee on Governance and Finance  
          Amended:  6/15/15  
          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

           SENATE FLOOR:  36-0, 5/18/15
           AYES:  Allen, Anderson, Bates, Beall, Block, Cannella, De León,  
            Fuller, Gaines, Galgiani, Hancock, Hernandez, Hertzberg, Hill,  
            Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen,  
            Nielsen, Pan, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Berryhill, Hall, Pavley

           ASSEMBLY FLOOR:  79-0, 7/16/15 (Consent) - See last page for  
            vote

           SUBJECT:   Local government:  omnibus bill


          SOURCE:    Author


          DIGEST:  This bill, the Local Government Omnibus Act of 2015,  
          proposes a number of relatively minor, noncontroversial changes  
          to state laws governing local governments' powers and duties.











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          Assembly Amendments add six more noncontroversial changes.


          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 Senate  
          Governance and Finance Committee's omnibus bill was SB 1462  
          (Chapter 201, Statutes of 2014) 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.


          This bill, the Local Government Omnibus Act of 2015, 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  








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                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.
              
              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. 

              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 authoring 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.  

              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. 








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              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).  

                This bill deletes the outdated requirement that a recorder  
                must include a requestor's name in the endorsement upon  
                the document. 

              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. 

              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.

           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  








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             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.  

             This bill 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. 

           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  








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             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.   


             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. 

           4) 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 (Article 4 (commencing with Section 5470)  
             of Chapter 6 of Division 5 of the Health and Safety Code).   
             Similarly, several statutes that govern improvement districts  
             assign specified duties to a local government's clerk (Part 7  
             (commencing with Section 36600) of Division 18 of the Streets  
             and Highways Code and Part 8 (commencing with Section 36700)  
             of Division 18 of the Streets and Highways Code).  The  
             California Association of Clerks and Elections Officials  
             notes that some of these statutory definitions and uses of  
             the term "clerk" 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 business improvement districts, means the clerk  
             of the local agency's legislative body. 

           5) 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  








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             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.

           6) Small counties and job order contracting.  Current law  
             allows counties to award annual contracts for "repair,  
             remodeling, or other repetitive work" (Public Contract Code  
             §20128.5).  These contracts are commonly referred to as job  
             order contracts.  Article 3.6 (commencing with Section 20150)  
             of Chapter 1 of Part 3 of Division 2 of the Public Contract  
             Code contains contracting requirements that apply only to  
             counties with fewer than 500,000 residents.  Because Article  
             3.6 declares that its provisions prevail over other statutes  
             (Public Contract Code §20150.1), some county officials worry  
             that this creates ambiguity about whether smaller counties  
             can use the job order contracting authority that is  
             established elsewhere in state law.  In 2007, the Legislature  
             passed a bill to eliminate a similar ambiguity over whether  
             state law allows smaller counties to participate in the  
             Public Construction Cost Accounting Act (SB 206, Cox, Chapter  
             26, Statutes of 2007).  County officials want the Legislature  
             to similarly clarify smaller counties' authority to use job  
             order contracts.  

             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. 

           7) 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  








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             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. 

           8) 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 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, Chapter 1054, Statutes of 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. 

              b)    Controller's appointments.  The UPCCAA specifies that  
                the members of the commission hold office for terms of  








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

              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. 

              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. 

              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. 

              f)    Adoption of plans, specifications, and working  








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                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. 

              g)    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  
                written notice of the findings, of the public agency's  
                efforts to comply. 

           9) 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.  State law specifies the  
             manner in which cities and counties can summarily vacate  
             public service easements that are no longer needed (Streets  
             and Highways Code §8330 et seq., enacted by SB 1540, Rains,  
             Chapter 1050, Statutes of 1980).  The California Land  








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             Surveyors notes 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  
             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.  

           10)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 redelegate 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, 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.  









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           11)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, Chapter 350,  
             Statutes of 2014).  State law specifies that the District's  
             board must be comprised of nine directors.  Stakeholders note  
             that statutory language enacted by last year's bill  
             erroneously 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. 


          Comments


          This bill compiles noncontroversial changes to state laws  
          affecting local agencies and land use into a single bill.   
          Sending a bill through the legislative process costs around  
          $18,000.  By avoiding separate bills, this bill avoids more than  
          $180,000 in legislative costs.  Although the practice may  
          violate a strict interpretation of the single-subject and  
          germaneness rules, the Senate Governance and Finance 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 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.


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


          According to the Assembly Appropriations Committee:









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           Potential minor reimbursable mandate costs related to  
            provisions eliminating the sunset on releasing subdivision  
            performance securities.  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 impact.


          SUPPORT:   (Verified7/29/15)


          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
          County Recorders Association of California
          Irvine Ranch Water District
          Finishing Contractors Association of Southern California
          National Electrical Contractors Association
          United Contractors


          OPPOSITION:   (Verified7/29/15)


          None received

          ASSEMBLY FLOOR:  79-0, 7/16/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray,  
            Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  








                                                                     SB 184  
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            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Gordon


          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
          8/13/15 13:02:52


                                   ****  END  ****