BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 974|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 974
          Author:   Committee on Governance and Finance   
          Amended:  8/4/16  
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  7-0, 4/6/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,  
            Pavley

           SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           SENATE FLOOR:  39-0, 4/21/16 (Consent)
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,  
            Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR:  78-1, 8/18/16 - See last page for vote
           
           SUBJECT:   Local government:  omnibus


          SOURCE:    Author


          DIGEST:  This bill, the Local Government Omnibus Act of 2016,  
          proposes a number of relatively minor, noncontroversial changes  
          to state laws governing local governments' powers and duties.


          Assembly Amendments add three additional sets of changes to  
          statutes governing local governments and made several technical  








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          and clarifying changes to the bill's language.


          ANALYSIS:   


          Each year, local officials discover problems with the state  
          statutes that affect counties, cities, and special districts.   
          These minor problems do not warrant separate (and expensive)  
          bills.  Legislators respond by combining several of these minor  
          topics into an annual "omnibus bill."  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 2016, 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, including survey  
             maps.  State law requires that a record of survey filed with  
             a county recorder must be securely fastened into a suitable  
             book provided for that purpose.  County recorders note that  
             this requirement does not conform to modern best practices  
             for storing recorded final and parcel maps.  This bill allows  
             a county recorder, as an alternative to fastening maps in a  
             book, to store recorded survey maps in any manner that  
             assures the maps will be kept together.  In the same statute,  
             the bill also replaces outdated references to "he" and "him"  
             with gender-neutral terms. 

           2) Veterans' records.  State law requires that certified copies  
             of specified recorded documents related to an individual's  
             military service may be made available only to four types of  
             requesters, including a county office that provides veterans'  
             benefit services.  County recorders note that this  
             requirement prohibits county recorders from providing  








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             certified copies of military service records to city or state  
             offices that provide veterans' benefit services.  This bill  
             allows any state, county, or city office that provides  
             veterans' benefit services to request and receive certified  
             copies of military service records.

           3) Notaries and certified mail.  State law requires that  
             specified communications between a notary public and the  
             Secretary of State's Office be made using certified mail.   
             The California Association of Clerks and Elections Officials  
             notes that a narrow reading of the certified mail requirement  
             could prohibit a notary public from communicating with the  
             Secretary of State's Office using other similar means of  
             delivery that provide a receipt, like overnight or express  
             delivery services.  This bill allows specified communications  
             between a notary public and the Secretary of State's Office  
             to use, in addition to certified mail, any other means of  
             physical delivery that provides a receipt.  

           4) Notaries' oaths.  State law specifies the manner in which a  
             notary public must file an oath of office with a county  
             clerk.  The California Association of Clerks and Elections  
             Officials notes that state law does not require a county  
             clerk to confirm the identity of an individual taking the  
             oath as a notary public.  This bill requires a person taking  
             the notary public oath of office before a county clerk to  
             provide an identification document that meets specified  
             statutory requirements.  This bill also allows the oath of  
             office to be filed with the county clerk by any means of  
             physical delivery that provides a receipt, in addition to  
             certified mail. 

           5) Floating Homes.  State law defines a "floating home" as a  
             floating structure that: is designed and built to be used, or  
             is modified to be used, as a stationary waterborne  
             residential dwelling; has no mode of power of its own; is  
             dependent for utilities upon a continuous utility linkage to  
             a source originating on shore; and has a permanent continuous  
             hookup to a shore side sewage system. A floating home is not  
             categorized as a vessel, but is assessed for property tax  
             purposes in the same manner as real property (AB 1506,  
             Filante, Chapter 44, Statutes of 1982).  State law prescribes  








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             the powers and duties of the State Board of Equalization  
             (BOE), including the adoption of rules, regulations, and  
             instructions relating to mobile homes which are subject to  
             property taxation.  The California Assessor's Association  
             notes that the statutes prescribing the BOE's powers and  
             duties lack any explicit reference to floating homes.  This  
             bill allows the BOE to exercise powers relating to rules,  
             regulations, and instructions for floating homes that are the  
             same as the powers that state law allows the BOE to exercise  
             for mobile homes. 

           6) Cities' financial transaction reports.  State law requires  
             cities to furnish the State Controller with annual reports of  
             their financial transactions and requires city clerks to  
             either publish or publicly post the contents of the annual  
             reports that cities submit to the Controller.  Last year, the  
             Legislature extended, until seven months after the end of a  
             local agency's fiscal year, the deadline for submitting an  
             annual financial transactions report to the Controller (AB  
             341, Achadjian, 2015).  The League of California Cities staff  
             notes that the statutory deadline by which city clerks must  
             publish or post the annual reports was not extended and now  
             falls well before the deadline for submitting the reports to  
             the Controller.  This bill conforms the deadline before which  
             city clerks must publish or post annual financial  
             transactions reports to the timelines established by last  
             year's Achadjian bill.

           7) Local artificial turf regulations.  State law prohibits  
             local governments from adopting ordinances or regulations  
             that prohibit the installation of drought tolerant  
             landscaping, synthetic grass, or artificial turf on  
             residential property (AB 1164, Gatto, Chapter 671, Statutes  
             of 2015).  However, local governments may impose reasonable  
             restrictions on the type of drought tolerant landscaping,  
             synthetic grass, or artificial turf that may be installed on  
             residential property provided that those restrictions meet  
             specified requirements.  Some City of Sacramento officials  
             are concerned that, in at least some situations, requirements  
             specified in state law may not allow local governments to  
             impose restrictions on the installation of synthetic grass or  
             artificial turf to prevent damage to trees that are protected  








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             by local ordinances.  This bill would allow a city, including  
             a charter city, county, or city and county, to impose  
             reasonable restrictions on the installation of synthetic  
             grass or artificial turf within the dripline of a tree  
             protected by local ordinance. 

           8) Local agency investment requirements.  Since 1913, state law  
             has authorized local officials to invest a portion of their  
             temporarily idle funds in a variety of financial instruments.  
              State law allows local officials to invest in some financial  
             instruments only if the instrument receives a specified  
             rating from a nationally recognized statistical rating  
             organization (NRSRO), like Fitch, Moody's, or Standard &  
             Poor's.  NRSROs assign specific investment vehicles into  
             ratings categories (usually designated with a letter-grade,  
             like "A" or "B") and further differentiate investment  
             vehicles' relative standing within those general ratings  
             categories by attaching various modifiers (like "A+", "A-")  
             that indicate whether a particular investment vehicle falls  
             within the high, middle, or low range of a ratings category.   
             The State Treasurer's Office staff notes that some public  
             officials and investment industry professionals disagree  
             about how to interpret some state laws that require an  
             investment vehicle to have a specified rating.  For example,  
             it is ambiguous whether a statute that requires an investment  
             instrument to have an "A" rating or higher allows investments  
             in any instrument within the "A" category or allows  
             investments only in instruments within the middle or upper  
             range of the "A" category.  This bill clarifies some  
             statutory ratings requirements by specifying that some  
             ratings requirements refer to a ratings category and  
             specifying that the rating specified in statute also applies  
             to "equivalent" ratings (i.e. a requirement that an  
             investment instrument must have an "A1" rating also allows  
             for investment in an instrument with a "AAA" rating). 

           9) Hearing notice cross-reference.  State law specifies the  
             manner in which local governments must provide notice of  
             public hearings relating to planning and land use.  One  
             statute requires that notice of a hearing must be mailed or  
             delivered to:









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              a)    A local agency that is expected to provide water,  
                sewage, streets, roads, schools, or other essential  
                facilities or services to a project.
              b)    All owners of real property located within 300 feet of  
                real property that is the subject of a hearing.

              A senior deputy in the Monterey County Counsel's office  
              notes that amendments made by AB 2867 (Torrico, Chapter 363,  
              Statutes of 2006) renumbered the statute's provisions but  
              failed to change a cross-reference.  As a result, some  
              notice requirements that used to be related to the mailing  
              or delivery of notice to property owners now appear to be  
              related to the mailing or delivery of notice to public  
              agencies.  This bill changes the cross-reference to refer to  
              the same section of statute that it referred to before 2006.  


           10)General plan safety element updates.  Current law requires  
             counties and cities, upon each revision of their general  
             plans' housing elements, to review and, if necessary, revise  
             their general plans' safety elements to identify new flood  
             and fire hazard  information that wasn't available at the  
             time the safety element was previously revised to address  
             flood and fire hazards (Government Code §65302).  Last year,  
             the Legislature passed SB 379 (Jackson, Chapter 608, Statutes  
             of 2015) which requires cities and counties to review and  
             update their general plans' safety elements to address  
             climate adaptation and resiliency.  SB 379 added a  
             cross-reference to existing law to require that a general  
             plan's safety element must be reviewed and updated to add new  
             information about risks posed by climate change upon each  
             revision of the general plan's housing element, as is already  
             required for flood and fire risks.  Senator Jackson's staff  
             notes that, unlike earlier bills requiring safety plan  
             updates for flood and fire risks, SB 379 requires the safety  
             element to be updated to address climate change risks upon  
             the next update of a local hazard mitigation plan, and not  
             the housing element.  The League of California Cities wants  
             to further clarify that a housing element update does not  
             trigger a requirement to update the safety element with  
             climate change and resiliency information.  This bill deletes  
             the erroneous cross-reference enacted by last year's SB 379  








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             and clarifies that additional information relating only to  
             flood and fire hazards must be identified in a revised  
             general plan safety element after each revision of a general  
             plan housing element.  

           11)Fort Ord Reuse Authority's board.  After federal officials  
             closed the Fort Ord military base in Monterey County, the  
             Legislature passed the Fort Ord Reuse Authority Act, which  
             created the Fort Ord Reuse Authority (FORA) to coordinate the  
             former base's transition (SB 899, Mello, Chapter 64, Statutes  
             of 1994).  State law allows FORA's board to include, as ex  
             officio nonvoting members: a representative designated by the  
             Member of Congress from the 17th Congressional District, a  
             representative designated by the Senator from the 15th Senate  
             District, a representative designated by the Assembly Member  
             from the 27th Assembly District.  Senator Monning's staff  
             notes that redistricting has changed the numbers that are  
             assigned to congressional, state senate, and state assembly  
             districts, so that the district numbers identified in statute  
             no longer correspond to districts representing the Fort Ord  
             area.  This bill allows the congressmember, state senator,  
             and state assemblymember whose districts include the majority  
             of Fort Ord to appoint representatives to FORA's board.  

           12)Fire protection district resolution of application.  Current  
             law allows a city council or county board of supervisors to  
             propose forming a new fire protection district by adopting a  
             "resolution of application" that meets specified requirements  
             (Health and Safety Code §13821).  A related statute requiring  
             a local agency formation commission to act on proposals to  
             form new fire protection districts erroneously refers to a  
             "resolution or application" (Health and Safety Code §13822).   
             To clarify that statute's meaning, this bill replaces the  
             word "or" with the word "of" so that the statute refers to a  
             "resolution of application."  

           13)Sewer agency ordinances and resolutions.  Many state laws  
             provide that local agencies may take specified actions only  
             by adopting an ordinance, only by adopting a resolution, or  
             by either adopting an ordinance or a resolution.  Irvine  
             Ranch Water District staff notes that several statutes  
             governing local governments that operate sanitary sewers and  








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             sewerage systems contain inconsistent language specifying  
             whether an agency must adopt an ordinance, a resolution, or  
             either one to fix and collect fees or charges and take other  
             actions related to its operation of a sanitary sewer or  
             sewerage system.  This bill amends existing statutes to  
             consistently authorize a local agency to adopt either an  
             ordinance or a resolution. 

           14)Best value definition.  Last year, the Legislature passed SB  
             762 (Wolk, Chapter 627, Statutes of 2015), which allows seven  
             specified counties to award construction contracts through a  
             "best value" procurement process and modifies the definitions  
             of "best value" in statutes allowing the state and local  
             government officials to use the design-build contracting  
             method for some public works.  The Legislature also passed SB  
             374 (Hueso, Chapter 715, Statutes of 2015), which authorized  
             the San Diego Association of Government to use design-build  
             for transit capital projects and development projects  
             adjacent or related to transit facilities.  Both SB 762 and  
             SB 374 made different amendments to Public Contract Code  
             §22161.  Senator Wolk's staff notes that because SB 374 was  
             signed into law after SB 762, its language erased - or  
             "chaptered out" - the changes that SB 762 made to the  
             definition of "best value" in Public Contract Code §22161.   
             This bill restores the changes to the definition of best  
             value that were chaptered out by SB 374.

           15)Vehicle license fee calculation.  In lieu of a property tax  
             on motor vehicles, the state collects an annual Vehicle  
             License Fee (VLF) and allocates the revenues, minus  
             administrative costs, to cities and counties.  As a part of  
             the complex statutory requirements for allocating VLF  
             revenues, state law requires the State Controller to use a  
             specified formula to determine the population of certain  
             recently incorporated cities (Revenue and Taxation Code  
             §11005.3).  The State Controller's staff notes that statutes  
             requiring this calculation contain erroneous cross-references  
             to the definition of a city's "actual population."  To  
             clarify this law's meaning, this bill corrects  
             cross-references to the definition of a city's "actual  
             population."  









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           16)County clerk references.  In 2002, state law was amended to  
             shift the responsibility for entering some superior court  
             judgements from county clerks to the Clerk of the Court (SB  
             1316, Senate Committee on Judiciary, Chapter 784, Statutes of  
             2002).  The California Association of Clerks and Elections  
             Officials notes that two statutes relating to superior court  
             judgements contain outdated references to a county clerk.   
             This bill replaces the term "county clerk" with the term  
             "Clerk of the Court" in those two statutes.

           17)Highway user tax account allocations.  The State allocates  
             funds from the Highway Users Tax Account (HUTA), to cities  
             and counties for local street and road maintenance.  The  
             apportionment amount for revenues from the Use Fuel Tax Law  
             is calculated and distributed based on specific formulas and  
             rates established in Revenue & Taxation Code § 8651, §8651.5,  
             and §8651.6.  The State Controller's staff notes that Streets  
             and Highways Code 2105 only references Revenue and Taxation  
             Code §8651 for the calculation, omitting references to  
             §8651.5 and §8651.6.  To ensure that the apportionments to  
             cities and counties required by Streets & Highways Code §2105  
             are calculated properly, this bill adds the omitted  
             cross-references. 

           18)Property and Business Improvement District Law of 1994.   
             Practitioners who work with property and business improvement  
             districts (PBIDs) have identified errors and ambiguities in  
             statutes  governing PBIDs. They want the Legislature to make  
             the following corrections and clarifications:

              a)    Specific benefit.  Pursuant to the California  
                Constitution, PBIDs' assessments on businesses must be  
                imposed for the purpose of conferring a specific benefit  
                on the businesses that are assessed (Article XIIIC,  
                Section (1)(e)).  To conform the 1994 Act's language to  
                this Constitutional requirement, this bill adds language  
                to two statutes (Streets and Highways Code §36601 and  
                §36606) to specify that PBIDs' assessments must be used to  
                confer a specific benefit or benefits on assessed  
                businesses. 
              b)    Consistent terminology.  In general, the 1994 Act uses  
                the term "district" to describe the territory within a  








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                PBID's  boundaries.  However, two statutes (Streets &  
                Highways Code §36610 and §36670) use the term "area" to  
                describe territory within a PBID's boundaries.  To make  
                the Act's language more consistent, this bill replaces the  
                term "area" with the term "district" in those two  
                statutes. 
              c)    Funding for extraterritorial improvements and  
                activities.  The 1994 Act prohibits a PBID from using  
                assessment revenues to provide improvements, maintenance,  
                and activities outside the district.  However, marketing  
                and promotional activities are among the services that a  
                PBID can fund.  Some practitioners argue that it is  
                ineffective to limit those activities only to the area  
                within the boundaries of the PBID itself.  This bill  
                allows a PBID to provide improvements and activities which  
                must be provided outside the district boundaries to create  
                a special or specific benefit to assessed parcels or  
                businesses and specifies that the allowable activities are  
                limited to marketing or signage pointing to the district. 

           19)Kern County Water Agency.  The Kern County Water Agency  
             (KCWA) is governed by a seven member elected board of  
             directors and is responsible for delivering water from the  
                                                                     state water project to local water agencies with which it  
             contracts.  State law requires KCWA, in addition to all other  
             requirements in state law, to additionally obtain the Kern  
             County Board of Supervisor's approval before it can levy a  
             tax, create a benefit zone, or adopt a budget.  KCWA  
             officials note that in light of the many voter-approval and  
             public hearing requirements in state law that apply to local  
             agencies' taxes and budgets, the requirement for KCWA to seek  
             the board of supervisors' approval is duplicative and  
             unnecessary.  State law does not require most other special  
             districts to obtain a board of supervisors' approval before  
             levying taxes or adopting a budget.  This bill deletes the  
             requirement that KCWA must get the board of supervisors'  
             approval before levying taxes, creating benefit zones, or  
             adopting a budget.  This bill also deletes a section of law  
             authorizing Kern County employees to perform duties and  
             provide services for the KCWA subject to specified  
             conditions.  









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          Comment

          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


          SUPPORT:   (Verified8/15/16)


          Association of California Water Agencies
          California Association of Clerks and Elections Officials
          California State Association of Counties
          California State Controller Betty Yee
          County Recorders Association of California
          Irvine Ranch Water District
          Kern County Water Agency
          League of California Cities


          OPPOSITION:   (Verified8/15/16)


          None received

           ASSEMBLY FLOOR:  78-1, 8/18/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  








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            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,  
            Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,  
            Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,  
            Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Rendon
           NOES: Salas
           NO VOTE RECORDED: Roger Hernández





          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
          8/19/16 19:21:43


                                   ****  END  ****