BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 113
          Author:   Senate Local Government Committee
          Amended:  6/25/09
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  5-0, 4/15/09
          AYES:  Wiggins, Cox, Aanestad, Kehoe, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  35-0, 5/6/09 (Consent) 
          AYES:  Alquist, Ashburn, Benoit, Calderon, Cogdill,  
            Corbett, Correa, Cox, Denham, Ducheny, Dutton, Florez,  
            Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu,  
            Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,  
            Pavley, Romero, Simitian, Steinberg, Strickland, Walters,  
            Wiggins, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Aanestad, Cedillo, DeSaulnier, Runner

           ASSEMBLY FLOOR  :  76-0, 8/17/09 - See last page for vote


           SUBJECT  :    Local Government Omnibus Act of 2009

          SOURCE  :     Author


           DIGEST  :    This bill enacts the Local Government Omnibus  
          Act of 2009, and makes 39 changes to the state laws  
          affecting local agencies' powers and duties.

           Assembly Amendments  added 11 items, made technical changes  
                                                           CONTINUED





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          and added double-jointing language for SB 251 (Senate  
          Transportation and Housing Committee).

           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.

          The Senate Local Government Committee responds by combining  
          several of these minor topics into an annual "omnibus  
          bill."  For example, the Committee's 2008 omnibus bill was  
          SB 1124 which contained 15 noncontroversial statutory  
          changes, avoiding over $250,000 in legislative costs.   
          Although this practice may violate a strict interpretation  
          of the single-subject and germaneness rules as presented in  
          "Californians for an Open Primary v. McPherson" (2006) 38  
          Cal.4th 735, it is an expeditious and relatively  
          inexpensive way to respond to multiple requests.

          This bill enacts the "Local Government Omnibus Act of 2009"  
          which proposes 39 changes to the state laws affecting local  
          agencies' powers and duties:

            1.   County law libraries  .  Nearly 120 years ago, the  
               Legislature set up a system of county law libraries  
               (Business & Professions Code 6300, et seq., enacted  
               by AB 691, Mathews, 1891, and recodified by SB 364,  
               Kenny, 1941).  Each county law library has an  
               appointed board of trustees which supervises its  
               operations and finances.  The Council of California  
               County Law Librarians has reviewed these statutes and  
               wants the Legislature to make 16 changes.

                Governance in San Diego County  .  Most county law  
               libraries have boards of trustees composed of six or  
               seven members, appointed by the superior court judges  
               and the county board of supervisors (Business &  
               Professions Code 6301).  Special legislation for the  
               board of trustees of the San Diego County law library  
               calls for four judges and three local attorneys  
               (Business & Professions Code 6301.1).  According to  







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               the Council, the San Diego law library says that seven  
               trustees are too few to handle the work in San Diego  
               County.  This bill increases the number of judges from  
               four to up to five and the number of attorneys from  
               three to up to four on the board of trustees of the  
               San Diego County law library. [See 1.1 of the bill.]

                Vacancies  .  A board of trustees may remove a trustee  
               "who neglects to attend or absents himself" from board  
               meetings (Business & Professions Code 6305).  The  
               Council wants the Legislature to clarify the standard  
               for removing trustees who don't participate.  This  
               bill allows a board of trustees to remove a trustee  
               who is absent from three consecutive meetings. [1.2]

                Insert gender neutral language  .  The Council wants the  
               Legislature to eliminate the statute's references to  
               males with gender neutral language in two sections:

               A.     The board's secretary must certify documents  
                 "under his hand" (Business & Professions Code  
                 6307).

               B.     The board's secretary must verify the financial  
                 report "by his oath" (Business & Professions Code  
                 6350).

               This bill inserts gender language into those sections.  
               [1.3 & 1.17]

                Correct fees for law library funds  .  In 2005, the  
               Legislature adopted a uniform civil filing fee  
               schedule which combined various surcharges and add-on  
               fees into one filing fee so that the same fee will be  
               charged for the same services in every county (AB 158,  
               Assembly Budget Committee, 2005).  Some of that fee  
               revenue goes to the county law libraries, but the  
               amount varies by county (Business & Professions Code  
               6321) and fee increases were allowed through 2007  
               (Business & Professions Code 6322.1).  The Council  
               wants the Legislature to change the listed amounts to  
               reflect the current fees for 39 county law libraries.   
               This bill changes the amount of court filing fees that  
               go to the county law libraries in 39 counties. [1.4]







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                Increase the limits on revolving funds  .  The board of  
               trustees may create a revolving fund to pay for  
               smaller items (Business & Professions Code 6326).  In  
               2005, the Legislature raised the limit on these  
               revolving funds from $7,500 to $30,000, and raised the  
               limit on paying for single items by check from $750 to  
               $3,000 (AB 145, Assembly Budget Committee, 2005).   
               Between 2005 and 2009, the Consumer Price Index  
               increased 12%.  The Council says that these statutory  
               limits are outdated and wants the Legislature to  
               increase them.  This bill increases the limit on  
               county law libraries' revolving funds from $30,000 to  
               $50,000, and the limit on single payments by check  
               from $3,000 to $10,000. [1.5]

                Payment vouchers  .  When the board of trustees wants to  
               spend money, current law requires the board's  
               president and secretary to certify a voucher (Business  
               & Professions Code 6342).  The Council says that many  
               counties have changed the approval process for issuing  
               payments and the use of signed vouchers is now  
               outdated.  This bill deletes the requirement that the  
               president and secretary of a county law libraries'  
               boards of trustees sign payment vouchers. [1.6]

                Employee titles  .  The board of trustees can appoint  
               and remove the librarian and other officers and  
               assistants (Business & Professions Code 6345), as  
               well as set their salaries and require bonds (Business  
               & Professions Code 6346).  The Council says that  
               these job titles are outdated and wants the  
               Legislature to use modern terms.  This bill refers to  
               a county law library's employees as the law librarian  
               and law library employees. [1.7 & 1.8]

                Retirement benefits  .  Since 1943, the board of  
               trustees has been able to provide retirement benefits  
               to its employees by contracting with the Board of  
               Administration of the State Employees' Retirement  
               System (Business & Professions Code 6346.5).  The  
               Council wants the statute to use the correct name of  
               the state's retirement program.  This bill inserts the  
               name of the California Public Employees' Retirement  







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               System. [1.9]

                Allow more service contracts  .  A board of trustees can  
               contract with a law library association to make use of  
               its library as a public law library (Business &  
               Professions Code 6347).  The Council wants the  
               Legislature to allow county law libraries to contract  
               with a wider range of entities.  This bill allows the  
               board of trustees to also contract with another law  
               library board, superior court, or legal-related entity  
               (including a self-help group or other organization  
               that provides a similar service) to provide law  
               library services. [1.10]

                Repeal the limit on real property spending  .  A board  
               of trustees can acquire, lease, or build a law library  
               building with its surplus funds, but the board can't  
               spend the first $10,000 of its surplus funds for these  
               purposes (Business & Professions Code 6348).  The  
               Council notes that the Legislature imposed the reserve  
               amount in 1941, but has never increased it.  The  
               Council says that because a board of trustees has full  
               authority to manage its trust funds, the statutory  
               reserve is unnecessary.  This bill repeals the $10,000  
               reserve on the law libraries' spending for acquiring,  
               leasing, or building law library buildings. [1.11]

                Repeal the limit on courtrooms  .  When a board of  
               trustees erects a building to house the law library,  
               it can include courtrooms, but state law limits the  
               number of courtrooms to four (Business & Professions  
               Code 6348.3).  The Council says that there's no  
               reason to limit the number of courtrooms in a building  
               that houses the county law library and wants the  
               Legislature to repeal that limit.  This bill deletes  
               the limit on the number of courtrooms that can be in a  
               building that houses a county law library. [1.12]

                Ease the limits on real property sales  .  Except for  
               real property that a county law library acquired by  
               dedication, the board of trustees can sell its  
               property to the state or any other government agency,  
               with the proceeds going to the law library fund  
               (Business & Professions Code 6348.4).  The Council  







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               says that these statutory restrictions are not  
               necessary and it wants the Legislature to allow county  
               law libraries to sell their real property to anyone,  
               provided that the proceeds go to the law library fund.  
                This bill repeals the prohibition on county law  
               libraries selling real property that they acquired  
               through dedications.  This bill repeals the  
               requirement that county law libraries sell their real  
               property to the state or other governmental agencies.  
               [1.13]

                Expand surplus fund investments  .  With the approval of  
               the county treasurer, the board of trustees can invest  
               its surplus funds in federal or state bonds (Business  
               & Professions Code 6348.5).  The Council says that  
               the county treasurer's approval is unnecessary because  
               a board of trustees has full authority over its trust  
               funds.  Further, the Council wants statutory authority  
               for law libraries to invest their trust funds in the  
               Local Agency Investment Fund run by the State  
               Treasurer (Government Code 16429.1).  This bill  
               repeals the requirement for a board of trustees to get  
               the county treasurer's permission to invest its  
               surplus funds.  This bill allows a board of trustees  
               to invest its surplus funds in the State Treasurer's  
               Local Agency Investment Fund. [1.14]

                Allow more county construction contracts  .  A board of  
               trustees can contract with the county board of  
               supervisors to build a law library building, but this  
               authority applies only in counties with populations  
               between 400,000 and 700,000 (Business & Professions  
               Code 6348.6).  When the Legislature passed this law  
               in 1957, only San Diego County met these criteria (AB  
               3724, Luckel, 1957.  Also see Chapter 468 of the  
               Statutes of 1951 which amended Government Code 28020  
               to establish the counties' official populations.)  In  
               2008, the State Department of Finance estimates that  
               seven counties had populations between 400,000 and  
               700,000:  Monterey, San Joaquin, Santa Barbara,  
               Stanislaus, Solano, Sonoma, and Tulare.  The Council  
               wants the law libraries in all counties to be able to  
               contract with their county boards of supervisors to  
               build law libraries.  This bill deletes the population  







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               criteria in the state law that allows law libraries to  
               contract with their counties to build law libraries.  
               [1.15]

                Delay the annual reports  .  The board of trustees must  
               file an annual report with the county board of  
               supervisors by August 15 for the fiscal year that  
               ended on June 30 (Business & Professions Code 6349).   
               The Council says that the boards of trustees rely on  
               the county auditors' fiscal year end reports which may  
               not be available in time to meet the August 15  
               statutory deadline.  The Council wants the Legislature  
               to extend the due date to October 15.  This bill  
               extends the deadline for the boards of trustees to  
               file their annual reports with the county boards of  
               supervisors from August 15 to October 15. [1.16]

                Effectiveness  .  County boards of supervisors have the  
               discretion to make the state laws that apply to county  
               law libraries effective in their counties (Business &  
               Professions Code 6364).  The Legislature retained  
               this provision of the original 1891 statute when it  
               recodified the law in 1941.  Because county law  
               libraries now exist in all 58 counties, the Council  
               says that this local discretion is no longer  
               necessary.  This bill repeals the discretion of county  
               boards of supervisors to make the state laws apply to  
               their county law libraries. [1.18]

           1.   School facilities improvement districts  .  School  
               districts can finance improvements with district-wide  
               voter-approved general obligation bonds (Education  
               Code 15100, et seq.).  School districts can also  
               finance improvements with voter-approved general  
               obligation bonds issued by "school facilities  
               improvement districts" that are less than  
               district-wide (Education Code 15300, et seq., added  
               by AB 3747, Quackenbush, 1994 and recodified by SB  
               161, Greene, 1997).  School districts can't use the  
               school facilities improvement district law unless the  
               county board of supervisors adopts a resolution  
               (Education Code 15303).  In 2008, the Los Angeles  
               County Board of Supervisors gave the Alhambra School  
               District permission to ask its voters to approve  







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               general obligation bonds by using a less than  
               district-wide school facilities improvement district.   
               Los Angeles County officials say that the statutory  
               language is ambiguous.  They want to clarify that the  
               county supervisors' approval to use the school  
               facilities improvement district statute could be  
               either countywide or could be limited to particular  
               school districts.  This bill allows a county board of  
               supervisors' approval to use the school facilities  
               improvement district statute to be either countywide  
               or limited to particular school districts. [1.19]

            2.   Appropriations limits for new local governments  .   
               Public agencies must adopt annual appropriations  
               limits and the voters must establish the initial  
               appropriations limit for new local governments  
               (Article XIII B, 1 & 4).  State law explains how to  
               set the appropriations limits for new local  
               governments (Government Code 7907.2, added by SB 813,  
               Bergeson, 1987), with specific procedures for new  
               counties (Government Code 23332), new special  
               districts (Government Code 56811), and new cities  
               (Government Code 56812).  There are also special  
               procedures for cities that incorporated in the late  
               1980s (Government Code 7902.7).  Local officials note  
               that the special procedures for those new cities have  
               become irrelevant because the cities now adopt annual  
               appropriations limits.  Further, they note that the  
               statutory cross-references to the specific procedures  
               are incorrect, referring to code sections that no  
               longer exist after the Legislature revised the  
               Cortese-Knox-Hertzberg Local Government Reorganization  
               Act (AB 2838, Hertzberg, Chapter 761, Statutes of  
               2000).  They want the Legislature to repeal the  
               obsolete provisions relating to cities that  
               incorporated in the late 1980s and to correct the  
               statutory cross-references.  This bill repeals the  
               obsolete provisions relating to cities that  
               incorporated in the late 1980s and corrects the  
               statutory cross-references in the statute that  
               explains how new local governments set their  
               appropriations limits. [2]

            3.   County boundary change cross-reference  .  State law  







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               spells out the procedures that counties follow when  
               making minor boundary changes (Government Code 23200,  
               et seq.).  These changes are not subject to review by  
               local agency formation commissions (LAFCOs)  
               (Government Code 23232).  The Committee's staff notes  
               that the cross-reference to the LAFCO statutes is  
               obsolete and wants the Legislature to correct the  
               citation.  This bill corrects the citation to the  
               LAFCO statute in the state law that spells out the  
               procedures for counties' minor boundary changes. [3]

            4.   Amador County's public administrator  .  State law  
               requires voters to elect 10 county officers, including  
               the public administrator.  Counties can appoint  
               several other officers, including the public guardian.  
                County supervisors can convert elected offices into  
               appointed offices with voter approval.  A dozen  
               counties can convert the public administrator's office  
               from an elected to an appointed position by ordinance  
               and without voter approval:  Glenn, Lake, Lassen,  
               Madera, Mendocino, Monterey, Napa, Solano, Sonoma,  
               Trinity, Tuolumne, and Ventura.  Seven counties can  
               appoint the same person as the public administrator  
               and the public guardian:  Glenn, Kings, Lassen,  
               Monterey, Solano, Sonoma, and Ventura.  Eight counties  
               can separate the consolidated offices of district  
               attorney and public administrator in order to  
               consolidate these offices with other offices:  Glenn,  
               Lake, Lassen, Madera, Mendocino, Napa, Trinity, and  
               Tuolumne (Government Code 24011, last amended by AB  
               2343, Caballero, Chapter 237, Statutes of 2008).

               In Amador County, the elective office of public  
               administrator is currently consolidated with the  
               elective office of district attorney, while the county  
               board of supervisors appoints the public guardian.  To  
               achieve management efficiencies, Amador County  
               officials want to combine the offices of the public  
               administrator and the public guardian, and allow the  
               district attorney to focus on law enforcement.  Amador  
               County officials want legislative permission to  
               achieve this reorganization without having to hold a  
               local election.  This bill adds Amador County to the  
               list of counties that can:







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                  A.        Convert the public administrator's office  
                    from an elected to an appointed position by  
                    ordinance and without voter approval.
                  B.        Appoint the same person as public  
                    administrator and public guardian.
                  C.        Separate the consolidated offices of  
                    district attorney and public administrator in  
                    order to consolidate those offices with other  
                    offices. [3.5 & 112]

            5.   Latent power cross-reference  .  Both the County  
               Service Area Law (Government Code Section 25210, et  
               seq., added by SB 1458, Senate Local Government  
               Committee, 2008) and the Community Services District  
               Law (Government Code Section 61000, et seq., added by  
               SB 135, Kehoe, 2005) explain how local agency  
               formation commissions (LAFCOs) control these special  
               districts' "latent powers."  LAFCOs must rely on  
               inventories of the districts' services and functions  
               prepared as part of their spheres of influence  
               (Government Code 25210.2 [g] & 61002 [h], referring  
               to Government Code 56425).  A practitioner notes that  
               both of these statutes contain an incorrect  
               cross-reference to the special districts' spheres of  
               influence and she wants the Legislature to correct the  
                                                                                 citations.  This bill corrects the citation to special  
               districts' spheres of influence in the County Service  
               Area Law and the Community Services District Law. [4  
               & 70]

            6.   County service contracts  .  Nine counties have the  
               statutory authority to provide a limited list of  
               services by contract to private firms that require  
               special experience, education, and training, including  
               training materials and facilities, law enforcement,  
               fire protection, and public health (Government Code  
               25332, added by AB 2665, Murray, 1992).  Nine  
               counties now have this authority:  Butte, Kings, Los  
               Angeles, Merced, Orange, Riverside, San Bernardino,  
               Santa Clara, and Ventura.  The Legislature added  
               Riverside County to the list in 1997 (SB 883, Senate  
               Local Government Committee, 1997) and in 1998  
               legislators added Kings County (SB 1649, Senate Local  







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               Government Committee, 1998).  Sonoma County wants the  
               Legislature to add it to this statutory list and to  
               expand the range of services to include maintenance  
               and construction services.  This bill expands the list  
               of authorized services to include maintenance and  
               construction services. [5 & 113]

            7.   County purchasing agents  .  State law allows county  
               boards of supervisors to hire purchasing agents to act  
               without separate authorizations when buying supplies,  
               renting equipment, and contracting for services  
               (Government Code 25500, et seq.).  In counties with a  
               population of less than 200,000, the county  
               supervisors can authorize their purchasing agents to  
               contract for services when the "aggregate cost"  
               doesn't exceed $50,000, adjusted by the Consumer Price  
               Index (Government Code 25502.3).  In counties with  
               populations over 200,000 the "aggregate cost" limit is  
               $100,000 (Government Code 25502.5).  Napa County  
               officials say that their County Counsel believes that  
               the term "aggregate cost" implies a lifetime accrual,  
               not an annual limit.  They want the Legislature to  
               clarify that these statutory limits apply annually.   
               This bill clarifies that the statutory limits on  
               county purchasing agents are annual aggregate amounts.  
               [5.3 & 5.5]

            8.   Revisions to the county budget act  .  State law spells  
               out the procedures that county officials must follow  
               when adopting their annual budgets (Government Code  
               29000, et seq.).  The statute has remained relatively  
               unchanged since the Legislature revised these  
               procedures nearly 25 years ago (AB 820, Cortese,  
               1985).  Starting in January 2007, a subcommittee of  
               the State Controller's Advisory Committee on County  
               Accounting Procedures reviewed the statutory  
               requirements and recommended numerous changes.  The  
               Advisory Committee looked for ways to reduce the  
               counties' costs of complying with redundant reporting  
               and filing requirements.  The State Controller wants  
               the Legislature to revise the County Budget Act to  
               reflect these recommendations.  This bill revises the  
               state statutes that spell out the procedures that  
               county officials must follow when adopting their  







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               annual budgets.  This bill includes changes to more  
               than 55 code sections that:

                  A.        Formally name the County Budget Act  
                    (29000).
                  B.        Clarify the statutory definitions and  
                    their consistent uses (29001).
                  C.        Clarify outdated statutory language  
                    (e.g., 29006).
                  D.        Sort out the duties of county  
                    administrators and county auditors (e.g.,  
                    29040).
                  E.        Advance county officials' deadlines for  
                    acting (e.g., 29040).
                  F.        Repeal obsolete sections (29004,  
                    29065.5, 29066, 29088.1, 29091, 29129, 29140).   
                    [6 to 64 & 67]

            9.   Obsolete property tax reduction fund  .  Before  
               Proposition 13 (1978), every local government set its  
               own annual property tax rate.  Now the California  
               Constitution sets a uniform 1% property tax rate  
               (Article XIIIA, 1), although local officials can set  
               a lower property tax rate for their own jurisdiction  
               (Revenue & Taxation Code 96.8).  Since 1965, state  
               law has allowed a county board of supervisors to put  
               aside money into a "property tax reduction fund" and  
               spend the money to lower the county government's  
               property tax rate (Government Code 29520, et seq.,  
               added by SB 1190, Rees, 1965).  The Committee's staff  
               believes that no county currently has a property tax  
               reduction fund and that the statute is obsolete  
               because of Proposition 13.  They want the Legislature  
               to repeal this obsolete statute.  This bill repeals  
               the authorization for a county property tax reduction  
               fund. [65]

            10.  Sonoma County's obsolete tax  .  In 1977, the  
               Legislature authorized Sonoma County to raise the  
               local transactions and use tax ("sales tax") for  
               public transit, with majority-voter approval  
               (Government Code 29560, et seq., added by AB 562,  
               Wornum, 1977).  Proposition 13 (1978) and Proposition  
               218 (1996) require 2/3-voter approval before local  







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               governments can levy special taxes to raise revenue  
               for special purposes (California Constitution Article  
               XIIIA 4 & Article XIIIC 2 [d]).  With 2/3-voter  
               approval, any county can levy a higher transactions  
               and use tax rate as a special tax (Revenue & Taxation  
               Code 7285.5).  The Committee's staff believes that  
               the Legislature should repeal the 1977 Sonoma County  
               sales tax statute because Proposition 13 and  
               Proposition 218 made it obsolete.  This bill repeals  
               the statute which allows Sonoma County to raise its  
               transactions and use tax for public transit with  
               majority-voter approval. [66]

            11.  City council members' salaries .  City council members  
               in general law cities can receive monthly salaries  
               based on a statutory schedule (Government Code  
               36516).  The bigger the city, the higher the maximum  
               salary:

                                   Population          Statutory  
                    Limit
                                   Less than 35,000    $300/month
                                   35,001 - 50,000     $400/month
                                   50,001 - 75,000     $500/month
                                   75,001 - 150,000    $600/month
                                   150,001 - 250,000   $800/month
                                   More than 250,000   $1,000/month

               City councils can raise their salaries above these  
               statutory limits by up to 5% a year by ordinance.   
               Further, the voters can approve salaries that are  
               different from the statutory schedule.  All salary  
               adjustments must be adopted by referendable local  
               ordinances.  The law prohibits automatic future  
               increases in salary.  Changes to city council members'  
               salaries are operative only after the next election;  
               once a salary ordinance becomes operative, then all  
               council members are eligible for pay raises.  The last  
               time the Legislature raised the city council members'  
               salary schedule was in 1984 (AB 2281, Hauser, 1984).   
               By 2007, the California Consumer Price Index had  
               increased by 108%.  When the Legislature tried to  
               reset the statutory salary schedule to reflect  
               inflation, Governor Schwarzenegger vetoed AB 701 (De  







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               La Torre, 2007).  The Committee's staff wants the  
               Legislature to reformat the current statute to clarify  
               how city councils and local voters can set and change  
               city council members' salaries.  This bill reformats  
               the statute governing city council members' salaries  
               for clarity.  Unlike the 2007 bill, This bill does not  
               change the current statutory schedule.  This bill also  
               clarifies that city council members may waive their  
               compensation. [68]

            12.  Surplus funds cross-reference (bonds and notes).    
               Local officials can invest their temporarily idle  
               funds in various financial instruments (Government  
               Code 53601).  When the Legislature allowed local  
               agencies to invest their surplus funds in registered  
               bonds or notes, the bill also changed the lettering of  
               the statutory subdivisions (AB 1745, Assembly Revenue  
               & Taxation Committee, 2007).  As a result of that  
               re-lettering, an adjacent code section now contains an  
               incorrect cross-reference to subdivision (k) in 53601  
               (Government Code 53601.6).  County treasurers want  
               the Legislature to correct the cross-reference.  This  
               bill corrects an erroneous cross-reference in the  
               state law that allows for the investment of  
               temporarily idle funds. [68.1]

            13.  Surplus funds cross-reference (certificates of  
               deposit).   Local officials can invest their  
               temporarily idle funds in various financial  
               instruments (Government Code 53601).  In 2006, the  
               Legislature allowed local agencies to invest some of  
               their surplus funds in certificates of deposit issued  
               by a private sector placement service that meet  
               specified conditions (Government Code 53601.8, added  
               by AB 2011, Vargas, 2006).  County treasurers note  
               that the new authorization includes an incorrect  
               cross-reference to certificates of deposit and they  
               want the Legislature to correct this error.  This bill  
               corrects the citation to certificates of deposit in  
               the state law that allows for the investment of  
               temporarily idle funds. [68.3]

           14.  Obsol  ete reporting requirement  .  The California Debt  
               and Investment Advisory Commission (CDIAC) is the  







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               state's information clearing house for state and local  
               government debt (Government Code 8855).  The State  
               Treasurer chairs this nine-member commission.  After  
               the Orange County bankruptcy, the Legislature required  
               local treasurers to provide annual statements of  
               investment policies and quarterly investment reports  
               to their legislative bodies (Government Code 53646,  
               added by SB 564, Johnston, 1995).  In 2000, the  
               Legislature required local officials to send copies of  
               their quarterly reports to CDIAC until January 1, 2007  
               (AB 943, Dutra, 2000).  The Local Government Omnibus  
               Act of 2008 deleted most of these obsolete  
               requirements (SB 1124, Senate Local Government  
               Committee, 2008), but neglected to repeal the  
               requirement for local officials to send their  
               quarterly reports to CDIAC.  On behalf of CDIAC, State  
               Treasurer Bill Lockyer requests that the Legislature  
               eliminate this obsolete provision.  This bill deletes  
               the obsolete requirement for local officials to send  
               their quarterly investment reports to CDIAC. [68.5]

            15.  Obsolete special municipal tax districts  .  State law  
               allows cities to create "special municipal tax  
               districts" and levy an ad valorem property tax with  
               majority-voter approval to pay for maintenance and  
               operations or special local services (Government Code  
               60000, et seq., added by AB 1952, Baker, 1919 and  
               codified by SB 1027, Roy Cunningham, 1951).  However,   
               Proposition 13 (1978) and Proposition 218 (1996)  
               prohibit additional ad valorem property taxes for  
               services and require 2/3-voter approval before local  
               governments can levy special taxes to raise revenue  
               for special purposes (California Constitution Article  
               XIIIA 4 & Article XIIIC 2 [d]).  Consistent with  
               these constitutional requirements, cities can levy  
               special taxes with 2/3-voter approval (Government Code  
               37100.5 and 50075, et seq.).  The Committee's staff  
               believes that the Legislature should repeal the 1919  
               special municipal tax district statute because  
               Proposition 13 and Proposition 218 made it obsolete.   
               This bill repeals the statute which allows cities to  
               set up special municipal tax districts. [69]

            16.  CSD name change .  The Community Services District Law  







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               allows community services districts (CSDs) to change  
               their names, provided that they keep the words  
               "community services district" in the new name.  When a  
               CSD changes its name, it must notify the Secretary of  
               State, the county clerk, the county board of  
               supervisors, and the local agency formation commission  
               (Government Code 61061).  Local officials want CSDs  
               with new names to also notify the State Board of  
               Equalization and the county auditor-controllers  
               because those officials are responsible for allocating  
               property tax revenues.  This bill requires a community  
               services district that changes its name to also notify  
               the State Board of Equalization and the county auditor  
               in each county where the CSD is located. [70.5]

            17.  Map Act and biogas projects  .  The Subdivision Map Act  
               governs how counties and cities approve the division  
               of larger properties into smaller lots, including  
               subdivision design and improvements (Government Code  
               66410, et seq.).  The Map Act defines a "subdivision"  
               as the division of land for the purpose of sale,  
               lease, or financing (Government Code 66424).   
               However, the Map Act specifically exempts several  
               types of land divisions, including leases and  
               easements for windpowered electrical generation  
               devices, provided that the project is subject to local  
               discretionary approval (Government Code 66412 [i], AB  
               2474, Rogers, 1984) and leases and easements for solar  
               electrical generation devices, if the project is  
               subject to other local agency ordinances regarding  
               design and improvement, or if the project is subject  
               to local discretionary approval (Government Code  
               66412 [l], SB 1124, Senate Local Government  
               Committee, 2008).  Sempra Energy wants a similar  
               exemption for biogas projects.  This exemption was in  
               AB 1510 (Plescia, 2008) which the Legislature passed  
               and Governor Schwarzenegger signed, but the change was  
               chaptered-out.  This bill exempts from the Subdivision  
               Map Act leases and easements for biogas projects that  
               use agricultural waste or byproducts from the land  
               where the project is located and which reduce  
               greenhouse gas emissions, if the project is subject to  
               other local agency ordinances regarding design and  
               improvement, or if the project is subject to local  







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               discretionary approval. [71]  This bill contains  
               double-jointing language with SB 251 (Senate  
               Transportation & Housing Committee) which also amends  
               Government Code 66412, but in a different way. [71.5  
               & 114]

            18.  Lot line adjustment deadlines  .  The Subdivision Map  
               Act (Government Code 66410, et seq.) contains  
               deadlines for local officials to act on applications  
               for tentative maps.  The Permit Streamlining Act  
               (Government Code 65920, et seq.) sets deadlines,  
               which are coordinated with CEQA reviews, for public  
               officials to approve or disapprove development  
               projects:

                  A.        180 days after certifying an  
                    environmental impact report (EIR).
                  B.        90 days after certifying an EIR for an  
                    affordable housing project.
                  C.        60 days after adopting a negative  
                    declaration.
                  D.        60 days after certifying that the project  
                    is exempt from CEQA review.

               The Permit Streamlining Act's deadlines can't extend  
               the Map Act's deadlines.  The Map Act doesn't apply to  
               lot line adjustments, which involve four or fewer  
               parcels, approved by local officials where land taken  
               from one parcel is added to an adjoining parcel  
               without creating any new parcels (Government Code  
               66412 [d]).  Surveyors and engineers say that their  
               applications for lot line adjustments can be delayed  
               because there's no clear statutory time limit by which  
               local officials must act.  They want the Legislature  
               to require cities and counties to approve lot line  
               adjustments pursuant to the Permit Streamlining Act.   
               This change was in SB 1237 (Cox, 2008) which Governor  
               Schwarzenegger vetoed, saying that the bill was not a  
               high priority.  Senator Cox still wants the  
               Legislature to make that change.  This bill requires  
               cities and counties to approve or disapprove lot line  
               adjustments pursuant to the Permit Streamlining Act.  
               [71]








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            19.  Remainder parcels.   Under the Subdivision Map Act  
               (Government Code 66410, et seq.), a major subdivision  
               creates five or more parcels and requires both a  
               tentative map and a final map.  A minor subdivision  
               (lot split) creates four or fewer parcels and usually  
               needs only a parcel map.  When a subdivision affects  
               only part of a property, the unaffected property is  
               called a "designated remainder parcel" or an "omitted  
               parcel."  It's illegal to avoid a major subdivision by  
               repeatedly using lot splits to create many parcels  
               with the practice called 4x4-ing.  However, the Map  
               Act says that state law doesn't prohibit consecutive  
               subdivisions of the same parcel.  The Map Act sets out  
               detailed requirements for the size, shape, and  
               contents of the subdivision documents, both final maps  
               and parcel maps.  Final maps and parcel maps must  
               clearly designate the subdivision's exterior boundary.  
                A final map or parcel map for a subdivision with a  
               designated remainder parcel of five or more acres  
               doesn't have to show the remainder parcel (Government  
               Code 66434 & 66445).  Instead of surveying the  
               remainder parcel, its location can be indicated by  
               deed reference.  Surveyors and engineers say that some  
               cities and counties still require them to show the  
               remainder parcel on a final map or parcel map.  They  
               want the Legislature to clarify that the exterior  
               boundary on a final map or parcel map doesn't need to  
               include a designated remainder parcel or omitted  
               parcel.  This change was in SB 1237 (Cox, 2008) which  
               Governor Schwarzenegger vetoed, saying that the bill  
               was not a high priority.  Senator Cox still wants the  
               Legislature to make that change.  This bill declares  
               that the exterior boundary of the land shown on a  
               final map or parcel map shall not include a designated  
               remainder parcel or omitted parcel, but any designated  
               remainder parcel or omitted parcel must be labeled.  
               [72 & 74]

            20.  Map Act dedications  .  As a condition of approving  
               subdivisions under the Subdivision Map Act (Government  
               Code 66410, et seq.), cities and counties often  
               require subdividers to dedicate property for public  
               purposes, including drainage, public utilities,  
               bicycle paths, transit facilities, solar energy  







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               easements, parks, roads, alleys, coastal and water  
               access, and schools.  Some of these property  
               dedications are in fee, while other property  
               dedications are public easements over private property  
               (Government Code 66439 & 66447).  Surveyors and  
               engineers say that local officials use various terms  
               for these dedications, resulting in later confusion  
               over whether the property was dedicated in fee or as  
               an easement.  They want the Legislature to standardize  
               the language that appears on subdivision maps to make  
               it clear whether a property dedication is in fee or  
               whether the dedication is an easement.  This change  
               was in SB 1237 (Cox, 2008) which Governor  
               Schwarzenegger vetoed, saying that the bill was not a  
               high priority.  Senator Cox still wants the  
               Legislature to make that change.  This bill  
               standarizes the language on final maps and parcel maps  
               regarding the dedication of property in fee or as  
               easements. [73 & 75]

            21.  Interment rights in cemetery districts  .  In 2003, the  
               Legislature modernized and recodified the Public  
               Cemetery District Law which governs California's 252  
               cemetery districts (Health & Safety Code 9000, et  
               seq., recodified by SB 341, Senate Local Government  
               Committee, 2003).  Since then, cemetery district  
               officials have been considering further, more  
               substantive statutory changes.  Although their  
               principal act explains how cemetery districts manage  
               interment rights, the Public Cemetery District Law  
               does not define this term (Health & Safety Code  
               9002).  The California Association of Public  
               Cemeteries wants the Legislature to adopt a statutory  
               definition of "interment right."  This bill defines  
                                                                             "interment right" within the Public Cemetery District  
               Law. [75.3]

            22.  Cemetery districts' endowment funds  .  In 2003, the  
               Legislature modernized and recodified the Public  
               Cemetery District Law which governs California's 252  
               cemetery districts (Health & Safety Code 9000, et  
               seq., recodified by SB 341, Senate Local Government  
               Committee, 2003).  Since then, cemetery district  
               officials have been considering further, more  







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               substantive statutory changes.  Except for larger  
               cemetery districts that can manage their own funds,  
               the county treasurer serves as a cemetery district's  
               treasurer (Health & Safety Code 9028 [c] & 9077).   
               Cemetery districts must collect a payment for each  
               interment and deposit the money in an "endowment care  
               fund."  The districts can't spend the principal, but  
               the income goes into an "endowment income fund" to  
               care for the cemeteries (Health & Safety Code 9065).   
               Cemetery districts can invest the endowment care  
               fund's principal in high-quality paper, including  
               certificates of deposit or other interest bearing bank  
               accounts that are insured by the Federal Deposit  
               Insurance Company (Health & Safety Code 9066).  The  
               districts can invest the endowment income fund in the  
               same types of high-quality paper that other local  
               governments can use for their temporarily idle funds  
               (Health & Safety Code 9067).  The Senate Local  
               Government Committee's commentary notes that these  
               sections reverse the 1949 Attorney General's opinion  
               which had said that the county treasurer was the  
               repository for the endowment funds (For Years To Come:  
                A Legislative History of Senate Bill 341 and the  
               "Public Cemetery District Law," pp. 70 & 71).  The  
               California Association of Public Cemeteries wants the  
               Legislature to clarify that the cemetery districts can  
               withdraw their endowment funds from the county  
               treasuries and invest them on their own.  This bill  
               clarifies that cemetery districts can invest their  
               endowment funds in certificates of deposit or other  
               interest bearing bank accounts of any state or  
               federally-chartered bank or savings association that  
               the Federal Deposit Insurance Corporation insures.  
               [75.4]

            23.  Cemetery districts' funds  .  In 2003, the Legislature  
               modernized and recodified the Public Cemetery District  
               Law which governs California's 252 cemetery districts  
               (Health & Safety Code 9000, et seq., recodified by SB  
               341, Senate Local Government Committee, 2003).  Since  
               then, cemetery district officials have been  
               considering further, more substantive statutory  
               changes.  Although their principal act tells cemetery  
               districts how manage their funds, the California  







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               Association of Public Cemeteries notes that state law  
               doesn't explain where to deposit the money that they  
               collect (Health & Safety Code 9074).  The Association  
               wants the Legislature to require cemetery districts to  
               deposit the money that they collect into the county  
               treasury.  This bill requires public cemetery  
               districts to deposit the funds that they collect into  
               the county treasury by the 10th of the month following  
               the month in which they collect the money. [75.5]

            24.  Cemetery districts' revolving funds  .  In 2003, the  
               Legislature modernized and recodified the Public  
               Cemetery District Law which governs California's 252  
               cemetery districts (Health & Safety Code 9000, et  
               seq., recodified by SB 341, Senate Local Government  
               Committee, 2003).  Since then, cemetery district  
               officials have been considering further, more  
               substantive statutory changes.  State law lets  
               cemetery districts set up revolving funds,  
               cross-referencing the state law that allows all  
               special districts to establish revolving funds to make  
               change and pay small bills directly (Health & Safety  
               Code 9074 & Government Code 53950, et seq.).  State  
               law caps special districts' revolving funds at $1,000  
               (Government Code 53952), but cemetery districts'  
               revolving funds may be as much as 110% of one-twelfth  
               of a district's annual budget (Government Code  
               53961).  The California Association of Public  
               Cemeteries says that having statutory authority in  
               both the principal act and in the state law that  
               applies to all special districts is confusing.  The  
               Association wants the Legislature to put this  
               authority within the Public Cemetery District Law and  
               make it clear that a cemetery district can set up a  
               revolving fund that is either (a) a $1,000 petty cash  
               fund or (b) the larger amount, based on its adopted  
               budget.  This bill revises the state laws governing  
               public cemetery districts' revolving funds, clarifying  
               that a cemetery district can set up a revolving fund  
               that is either (a) a $1,000 petty cash fund or (b) the  
               larger amount, based on its adopted budget. [68.7 &  
               75.7]

            25.  Air pollution control districts' boards  .  Most air  







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               pollution control districts (APCDs) cover just one  
               county and the county board of supervisors is the  
               APCD's governing board (Health & Safety Code 40100).   
               However, a county board of supervisors and the cities  
               in that county may agree to include city  
               representatives on an APCD's governing board.  The  
               city selection committee (composed of the mayors of  
               each city in that county) selects the city  
               representatives.  If the agreement provides for  
               representation by each city, then each city selects  
               its own representative.  The city representatives must  
               be mayors or council members and the county  
               representatives must be county supervisors (Health &  
               Safety Code 40100.5).  There is no statutory  
               authority for either the city selection committee or  
               the individual cities to select alternate  
               representatives to serve when the regular city  
               representatives are absent or disqualified from  
               participating.  Under its own statutory formula, the  
               Sacramento Metropolitan Air Quality Management  
               District has a 14-member board of directors.  When the  
               Sacramento Metropolitan AQMD had trouble achieving a  
               quorum because enough city representatives couldn't  
               attend, it received legislative permission for the  
               cities to appoint alternate members (Health & Safety  
               Code 40980, as amended by SB 144, Senate Local  
               Government Committee, 2007).  The Butte County AQMD  
               has a 10-member governing board composed of all five  
               county supervisors and a city representative from each  
               of the five cities:  Biggs, Chico, Gridley, Oroville,  
               and Paradise.  Because the Butte County APCD's board  
               meets during the day, sometimes it's hard for all of  
               the city representatives to attend.  As part-time city  
               council members, they work regular jobs.  When a  
               city's representative can't attend, that community  
               lacks representation during policy discussions and  
               regulatory decisions.  The Butte County AQMD wants  
               legislators to allow cities to appoint alternates,  
               similar to what the Legislature did for the Sacramento  
               Metropolitan AQMD.  This bill allows the city  
               selection committee and the city councils to appoint  
               alternates to their representatives on the governing  
               boards of county air pollution control districts.  
               [75.9]







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            26.  Archaic requirements for local taxes  .  Proposition 13  
               capped the maximum ad valorem property tax rate at 1%  
               of full cash value.  Extraordinary property tax rates  
               above the 1% limit are possible only for certain types  
               of voter-approved debt (California Constitution  
               Article XIII A, 1).  With 2/3-voter approval, local  
               officials may levy special taxes (Government Code  
               50075, et seq.).  Despite the 30-year old  
               constitutional cap on property tax rates, a few older  
               statutes still allow counties and cities to levy  
               special taxes with higher ad valorem rates.  These  
               statutes are probably unconstitutional.  In Revenues  
               And Responsibilities (December 2007), the staff of the  
               Senate Local Government Committee identified several  
               statutory authorizations for special taxes that fall  
               outside the 1% limit.  The Local Government Omnibus  
               Act of 2008 revised four of these obsolete taxes for  
               county musical performances, county trade and commerce  
               programs, county public airports, and city hospitals  
               (SB 1124, Senate Local Government Committee, 2008).   
               The Committee's staff has identified additional  
               obsolete references to ad valorem property tax rates,  
               and wants the Legislature to substitute the  
               cross-reference to the statute that requires 2/3-voter  
               approval for special taxes.  This bill deletes  
               obsolete references to separate property tax rates and  
               instead inserts the appropriate cross-references to  
               local special taxes for:

                  A.        County special tax for sanitary purposes  
                    in unincorporated areas (Health & Safety Code  
                    101350). [76]
                  B.        County special tax for veterans' homes  
                    (Military & Veterans Code 1121). [77]
                  C.        County special tax for veterans memorial  
                    halls (Military & Veterans Code 1262). [78]

            27.  County recorders and federal vital records  .  County  
               recorders may record birth certificates and death  
               certificates issued by federal agencies to  
               authenticate births and deaths of U.S. citizens  
               outside of the United States (Health & Safety Code  
               103500).  A certification of birth outside of the  







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               United States must be indexed in the county recorder's  
               birth index (Health & Safety Code 103501).  County  
               recorders say that confusion can result when an  
               individual seeking a certified copy of a  
               federally-issued vital record requests a copy of that  
               document from a county recorder's office.  Copies of  
               federally-issued documents that have been recorded  
               with a county cannot be used as authorized vital  
               records to establish a person's identity; they are  
               merely copies of the county's official records.  To  
               obtain authorized copies of federal vital records,  
               individuals must contact the federal agency that  
               issued the original document.  To avoid confusion,  
               county recorders want to prohibit the recording and  
               indexing of federally-issued foreign birth and death  
               records and clarify that copies of such documents  
               already recorded are to be issued by county recorders  
               only as official, but not vital, records.  This bill  
               repeals county recorders' authority to record federal  
               birth certificates and death certificates, and instead  
               requires county recorders to issue certified copies of  
               foreign births or deaths only as official records and  
               not as vital records.  This bill repeals the  
               requirement for county recorders to index federal  
               birth certificates in the county recorder's birth  
               index, except for court ordered documents that  
               establish foreign births and deaths. [76.3, 76.5 &  
               76.7]

            28.  County waterworks districts' contracts.   County  
               boards of supervisors are the ex officio governing  
               bodies for most of the 29 county waterworks districts  
               that operate under the County Waterworks District Law  
               (Water Code 55000, et seq.).  The Los Angeles County  
               Department of Public Works manages five county  
               waterworks districts for which the Los Angeles County  
               Board of Supervisors is the governing body.  County  
               waterworks districts must award contracts worth more  
               than $3,500 to the lowest responsible bidder.  The  
               districts can use informal bidding procedures to award  
               contracts worth less than $7,500.  The districts can  
               delegate contracting duties to county or city  
               purchasing agents for contracts worth less than $3,500  
               (Public Contract Code 20601 & 20602).  Los Angeles  







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               County officials explain that these state laws don't  
               distinguish between contracting for public works  
               projects and contracting for professional services.   
               As a result, County officials must follow public  
               bidding procedures for the county waterworks  
               districts' service contracts.  They want legislators  
               to distinguish between public works contracts and  
               professional service contracts, allowing the districts  
               to award contracts for professional services just like  
               counties.  This bill clarifies that county waterworks  
               districts must follow public bidding procedures when  
               awarding contracts for public works.  This bill allows  
               county waterworks districts to contract for  
               professional services and special services by  
               following the statutes that apply to counties and  
               other public agencies. [78.1, 78.2 & 78.3]

            29.  Alquist-Priolo Act exemption for state historic  
               structures  .  After the 1971 San Fernando Earthquake  
               destroyed two hospitals, the Legislature passed the  
               Alquist-Priolo Earthquake Fault Zoning Act to prevent  
               building on top of active faults (Public Resources  
               Code 2621, et seq.).  The State Geologist publishes  
               maps which are the basis for development regulations  
               within the Earthquake Fault Zones.  Before they can  
               approve a project within an Earthquake Fault Zone,  
               cities and counties must require a geologic report  
               (Public Resources Code 2623).  The Alquist-Priolo Act  
               exempts five types of projects:

                  A.        Condominium conversions.
                  B.        Structures built before May 4, 1975,  
                    unless the alterations or additions are more than  
                    50% of a structure's value.
                  C.        Alterations or additions where the value  
                    is less than 50% of a structure's value.
                  D.        Structures damaged by the 1991  
                    Berkeley-Oakland Hills fire that get state  
                    waivers.
                  E.        Alterations that include seismic  
                    retrofitting on three specified types of  
                    structures built before May 4, 1975, if:

                        (1)             The local building permit  







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                          doesn't permit a greater human occupancy  
                          load.
                        (2)             Local officials require  
                          seismic retrofitting to strengthen the  
                          structure for increased resistance to  
                          ground shaking.

               Local officials report their exemptions to the State  
               Geologist within 30 days.

               Qualified historic buildings within earthquake fault  
               zones can be exempt from the Act's requirements and  
               instead retrofitted under the State Historical  
               Building Code, provided that those buildings get the  
               local approvals required by the fifth exemption  
               (Public Resources Code 2621.7).  The Hayward Fault  
               passes directly under the California Memorial Stadium  
               on the University of California-Berkeley campus.   
               Originally built in 1923 and now on the National  
               Register of Historic Places, the stadium seats over  
               72,000 people.  After a 1998 seismic safety study gave  
               the Memorial Stadium a "poor" rating, campus officials  
               started planning seismic and disabled access  
               improvements.  UC officials say there's ambiguity in  
               how the Alquist-Priolo Act may apply to retrofitting  
               Memorial Stadium.  For example, the Act exempts  
               alterations where the value is less than 50% of the  
               structure's value; how could UC officials calculate  
               the value of an 85-year old stadium?  The Act also  
               exempts seismic retrofitting that involves local  
               building permits; UC is exempt from the City of  
               Berkeley's building permit system.  To avoid  
               controversy and lawsuits, the University of California  
               wants the Legislature to create another exception to  
               the Alquist-Priolo Act.  This bill exempts from the  
               Alquist-Priolo Earthquake Fault Zoning Act alterations  
               to structures owned and operated by state entities and  
               agencies that are listed on the California Register of  
               Historical Resources or the National Register of  
               Historic Places, including the California Memorial  
               Stadium. [78.5]

           30.  Archaic reimbursement for special districts  .  Most  
               special districts operate under a series of "principal  







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               acts" that govern their powers, duties, and  
               procedures.  For example, the seven resort improvement  
               districts operate under the Resort Improvement  
               District Law (Public Resources Code 13000, et seq.)  
               and the eight water storage districts operate under  
               the California Water Storage District Law (Water Code  
               39000, et seq.).  It is common for special districts'  
               principal acts to spell out the types and amounts of  
               compensation that the districts can pay to their  
               governing boards.  However, state law also generally  
               limits the compensation that special districts can pay  
               their governing boards, including allowing districts  
               to pay for their "actual and necessary expenses"  
               (Government Code 53232, et seq., added by AB 1234,  
               Salinas, 2005).  Further, local officials must take  
               ethics training if they receive compensation  
               (Government Code 53234, et seq., added by AB 1234,  
               Salinas, 2005).  The California Special Districts  
               Association notes that both the Resort Improvement  
               District Law and the California Water Storage District  
               Law contain archaic mileage reimbursement rates.   
               Resort improvement districts can pay only 15
 a mile  �               (Public Resources Code 13041) and water storage  
               districts can pay only 10
 a mile (Water Code 40355).  �                The Association wants the Legislature to repeal these  
               archaic mileage limits and let the districts pay for  
               actual and necessary expenses.  This bill repeals the  
               specific mileage reimbursement rates for resort  
               improvement districts and water storage districts.   
               This bill also explicitly requires resort improvement  
               districts to comply with the statewide laws on  
               compensation and ethics training. [79 & 90]

            31.  Municipal utility districts' annual reports  .  All  
               special districts, including municipal utility  
               districts (MUDs), must send annual financial  
               transactions reports to the State Controller  
               (Government Code 53890, et seq.).  The Municipal  
               Utility District Law requires a MUD's general manager  
               to publish the annual financial report in a general  
               circulation newspaper, once a week for two successive  
               weeks (Public Utilities Code 11938).  Recognizing the  
               cost of publishing entire ordinances, the Legislature  
               allowed MUDs to publish summaries of their ordinances  







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               (Public Utilities Code 11534 & 11910, amended by SB  
               1165, Senate Local Government Committee, 2004).  The  
               Sacramento Municipal Utility District (SMUD) says that  
               publishing all 66 pages of its annual financial report  
               would have cost $30,000 if it ran in the Sacramento  
               Bee.  Instead, SMUD paid $4,000 to publish it in the  
               lower-circulation Sacramento Gazette.  SMUD officials  
               want the Legislature to allow MUDs to publish  
               summaries of their annual reports.  This bill allows  
               municipal utility districts to publish summaries of  
               their annual financial reports instead of publishing  
               the full reports. [79.1]

            32.  Property tax exchanges for city annexations  .  Before  
               a city can annex territory, it must negotiate a  
               property tax exchange agreement with its county  
               (Revenue & Taxation Code 99).  The property tax  
               exchange agreement specifies the future allocation of  
               property tax revenues generated in the annexation  
               area.  Cities and counties can adopt master property  
               tax exchange agreements, otherwise state law gives  
               them 60 days to negotiate a property tax exchange.  If  
               they fail to agree, the city annexation can't proceed.  
                In effect, a county can veto a city annexation by  
               refusing to agree to a property tax exchange.  In  
               1997, the Legislature created a three-step alternative  
               dispute resolution process involving a consultant, a  
               mediator, and an arbitrator, but it automatically  
               terminated on January 1, 2005 (SB 466, Rainey, 1997).   
               The Legislature extended the sunset date to January 1,  
               2010 (AB 818, Leslie, 2005).  Although no one has ever  
               used this alternative dispute resolution procedure,  
               the California Association of LAFCOs says that the  
                     prospect of mandatory  
               consultation-mediation-arbitration may have prompted  
               some counties to reach agreements with their cities.   
               The LAFCOs want the Legislature to extend for another  
               five years the sunset date for the mandatory  
               consultation-mediation-arbitration process.  This bill  
               extends the sunset date for the mandatory  
               consultation-mediation-arbitration process for  
               reaching a property tax exchange agreement for city  
               annexations from January 1, 2010 to January 1, 2015.  
               [79.5]







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            33.  County special road maintenance districts  .  Counties  
               can form special road maintenance districts in  
               unincorporated areas and levy ad valorem property  
               taxes without voter approval to pay for highways and  
               roads (Streets & Highways Code 1550, et seq.).  This  
               authority is more than 125 years old (Chapter 10,  
               Statutes of 1883).  However,  Proposition 13 (1978)  
               and Proposition 218 (1996) prohibit additional ad  
               valorem property taxes for services and require  
               2/3-voter approval before local governments can levy  
               special taxes to raise revenue for special purposes  
               (California Constitution Article XIIIA 4 & Article  
               XIIIC 2 [d]).  Consistent with these constitutional  
               requirements, counties can levy special taxes with  
               2/3-voter approval (Government Code 50075, et seq.).   
               The Committee's staff believes that the Legislature  
               should revise the statutes on counties' special road  
               maintenance districts to comply with Proposition 13  
               and Proposition 218.  This bill revises the statutes  
               which allow counties to set up special road  
               maintenance districts, and allows them to levy special  
               taxes with 2/3-voter approval. [80 to 87]

            34.  Clarify 1911 Act dredging authority  .  The Improvement  
               Act of 1911 (Streets & Highways Code 5000, et seq.)  
               allows local officials to levy benefit assessments  
               with the approval of property owners to pay for a wide  
               variety of public works projects, including harbor  
               improvements on tidelands that the state has granted  
               or leased to cities (Streets & Highways Code 5100).   
               The 1911 Act specifically allows local officials to  
               use benefit assessments to pay for harbor channel  
               improvements and maintenance (Streets & Highways Code  
               5101 [m], amended by SB 1916, Marks, 1988 and SB 683,  
               Marks, 1991).  The Contra Costa County Water Agency  
               and the Stockton Port District use 1911 Act benefit  
               assessments to pay for their share of the U.S. Army  
               Corps of Engineers' channel dredging.  The local  
               agencies have not acquired or leased the channel from  
               the state.  Local officials want to clarify that they  
               can use 1911 Act benefit assessments for channel  
               projects on property that the state has not granted or  
               leased to a local government.  This bill allows local  







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               officials to use 1911 Act benefit assessments to pay  
               for channel improvements on tidelands for which a  
               permit, license, or easement has been issued by the  
               U.S. Army Corps of Engineers or the state. [88]

            35.  Publishing water conservation ordinances  .  Local  
               governments that provide water can adopt water  
               conservation programs by enacting urgency ordinances  
               or resolutions (Water Code 375, et seq., added by AB  
               1954, Gualco, 1978).  Within 10 days, the local  
               government must publish its water conservation  
               ordinance or resolution "in full" in a general  
               circulation newspaper that is printed, published, and  
               circulated within the agency (Water Code 376).   
               County water districts have their own separate  
               statutory authority to adopt emergency water  
               restrictions (Water Code 31026).  County water  
               districts must also publish their water restriction  
               ordinances in full in general circulation newspapers.   
               However, a county water district may instead publish a  
               summary of the proposed ordinance at least five days  
               before its adoption and publish a summary of the  
               adopted ordinance within 15 days after its adoption.   
               The full text must be available to the public at the  
               district's offices.  Alternatively, if it's not  
               feasible to publish summaries, a county water district  
               can publish a quarter-page display advertisement both  
               five days before and within 15 days after the adoption  
               of the ordinance (Water Code 31027, as amended by AB  
               3181, Norman Waters, 1990).  The water conservation  
               ordinance adopted by the North Marin Water District, a  
               county water district, is 10 pages long.  The District  
               has amended its water conservation ordinance 35 times.  
                Each amendment triggers the statutory requirement to  
               publish the ordinance "in full," which is expensive  
               without much public benefit.  As an alternative to  
               publishing the full water conservation ordinance, the  
               District wants the Legislature to allow local  
               governments to publish summaries or display  
               advertisements, following the approach in the County  
               Water District Law.  This bill allows local  
               governments to publish summaries or display  
               advertisements of their water conservation ordinances,  
               both before and after their adoption, provided that  







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               the full text is available to the public. [89]
           
           36.  County waterworks districts' extraterritorial  
               services  .  County boards of supervisors are the ex  
               officio governing bodies for most of the 29 county  
               waterworks districts that operate under the County  
               Waterworks District Law (Water Code 55000, et seq.).   
               The Los Angeles County Department of Public Works  
               manages five county waterworks districts for which the  
               Los Angeles County Board of Supervisors is the  
               governing body.  County waterworks districts supply  
               water for irrigation, domestic, industrial, and fire  
               protection purposes (Water Code 55330).  Before a  
               special district can deliver services beyond its  
               boundaries, it needs the approval of the local agency  
               formation commission (LAFCO) (Government Code 56133).  
                If its governing body finds that a county waterworks  
               district has a surplus of water, it can sell the  
               surplus water outside its boundaries (Water Code  
               55336).  To avoid failures, Los Angeles County's  
               waterworks districts have connected their water  
               distribution systems to the water distribution systems  
               of adjacent water systems that are owned by a variety  
               of public agencies, mutual water companies, and  
               private firms.  When Los Angeles County officials  
               wanted to install a connection between a county  
               waterworks district and a mutual water company in the  
               Antelope Valley, the County Counsel's office pointed  
               out that state law required local officials to  
               determine that surplus water was available before the  
               district could sell water outside its boundaries.   
               There is no surplus water in Southern California.  Los  
               Angeles County officials want statutory permission to  
               sell water beyond their districts' boundaries if the  
               water is needed for public health, public safety, or  
               emergency purposes.  This bill clarifies that a county  
               waterworks district must obtain the local agency  
               formation commission's approval before it can sell  
               water outside its boundaries and deletes the  
               requirement that the water must be surplus. This bill  
               also allows a county waterworks district to sell water  
               outside its boundaries in response to a defined  
               emergency. [90.1]








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            37.  County waterworks districts' real property  .  County  
               boards of supervisors are the ex officio governing  
               bodies for most of the 29 county waterworks districts  
               that operate under the County Waterworks District Law  
               (Water Code 55000, et seq.).  The Los Angeles County  
               Department of Public Works manages five county  
               waterworks districts for which the Los Angeles County  
               Board of Supervisors is the governing body.  When  
               Lancaster officials needed a piece of land owned by a  
               county waterworks district to improve city sidewalks,  
               Los Angeles County officials discovered that the  
               districts' governing statute made it hard to cooperate  
               with the City.  Los Angeles County officials want  
               legislators to give them more flexibility in how they  
               dispose of county waterworks districts' property:  

                  A.        County waterworks districts can sell or  
                    lease surplus property (Water Code 55371).  This  
                    bill allows the districts to exchange surplus  
                    property.   This bill allows the districts to  
                    sell, exchange, or lease surplus property rights.  
                    [90.2]

                  B.        Without public notice, county waterworks  
                    districts can sell or lease surplus property to  
                    another county waterworks district that it  
                    governs (Water Code 55371.5).  This bill allows  
                    county waterworks districts to exchange property  
                    with other county waterworks districts without  
                    public notice.  This bill allows county  
                    waterworks districts to sell, exchange, or lease  
                    property and property interests with overlapping  
                    public agencies. [90.3]

                  C.        Without public notice, a county  
                    waterworks district's board can sell or lease  
                    property that's worth $100 or less (Water Code  
                    55372).  For property worth more than $100, the  
                    county waterworks district's board must post  
                    public notices before it sells or leases the  
                    property to the highest bidder (Water Code  
                    55373).  This bill increases the statutory  
                    threshold that triggers public bidding from $100  
                    to $5,000.  This bill allows county waterworks  







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                    districts to exchange property and property  
                    interests with these procedures. [90.4 & 90.5]

            38.  North Delta Water Agency's assessments  .  Formed in  
               1973 as one of the three successors to the Delta Water  
               Agency, the North Delta Water Agency operate under its  
               own special act (Water Code Appendix 115-1, et seq.).  
                The Agency's 1981 contract with the State Department  
               of Water Resources (DWR) requires the Agency to pay  
               DWR for deliveries from the State Water Project.  To  
               make these payments, the Agency collects an annual  
               uniform assessment on each acre within the Agency  
               (Water Code Appendix 115.1 to 115.19, added by SB  
               1327, Garamendi, 1980).  When the Agency's board of  
               directors started to consider an increase to the  
               annual assessment, the Agency's staff noted that the  
               1980 statute doesn't meet the constitutional  
               requirements of Proposition 218 (1996) and its  
               implementing statutes.  This bill:

                  A.        Requires the North Delta Water Agency to  
                    follow the constitutional and statutory  
                    procedures used by other local governments when  
                    levying special benefit assessments (5.20).
                  B.        Repeals and amends the outdated  
                    provisions of the North Delta Water Agency Act  
                    for collecting assessments (5.1 to 5.17).
                  C.        Allows the Delta Water Agency to use  
                    validation suits to confirm its actions (6.2).
                  D.        Repeals and amends the outdated  
                    provisions for the Agency's dissolution (8.1 &  
                    8.2).
                  E.        Revises the Agency's general powers  
                    (4.1).  [91 to 111]

           Legislative declarations
           
          This bill expresses the Legislature's intent to cut costs  
          by combining several noncontroversial items relating to  
          local government into a single bill.

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








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           SUPPORT  :   (Verified  7/15/09)

          State Controller John Chiang
          State Treasurer Bill Lockyer
          American Federation of State, County and Municipal  
          Employees, AFL-CIO
          Association of California Water Agencies
          Butte County Air Quality Management District
          California Association of County Treasurers and Tax  
          Collectors
          California Association of Local Agency Formation  
          Commissions
          California Association of Public Cemetery Districts
          California Special Districts Association
          Contra Costa County Water Agency
          Council of California County Law Librarians
          County of Amador
          County of Los Angeles
          County of Napa
          County of Sonoma
          Friant Water Authority
          North Delta Water Agency
          North Marin Water Agency
          Sacramento Municipal Utility District
          San Diego LAFCO
          Sempra Energy
          Sonoma Local Agency Formation Commission
          University of California 


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Ruskin, Salas, Silva,  
            Skinner, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, Bass







                                                                SB 113
                                                                Page  
          35

          NO VOTE RECORDED:  Cook, Saldana, Smyth


          AGB:nl  8/18/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****