BILL ANALYSIS �
SB 192
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Date of Hearing: April 27, 2011
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
SB 192 (Governance and Finance Committee) - As Introduced:
February 8, 2011
SENATE VOTE : 36-0
SUBJECT : Validations.
SUMMARY : Enacts the Second Validating Act of 2011, which would
validate the organization, boundaries, acts, proceedings, and
bonds of the state government, counties, cities, special
districts, school districts, and redevelopment agencies, among
other public bodies.
EXISTING LAW allows local agencies to make changes to the
organization, boundaries, acts, proceedings, and bonds of the
state, cities, counties, special districts, school districts,
redevelopment agencies, and other local agencies.
FISCAL EFFECT : None
COMMENTS : According to the Senate Governance and Finance
Committee, the Legislature has adopted annual Validating Acts
for over 70 years that retroactively fix public officials'
inadvertent procedural errors or omissions. The annual bills
affect the state government, as well as counties, cities,
special districts, school districts, and redevelopment agencies.
Beginning in the mid-1920s, the Legislature passed separate
validating acts for different types of bonds, several classes of
special districts, and various local boundary changes. By the
late 1930s, the practice was to pass annual comprehensive
validating acts.
In Miller v. McKenna 23 Cal.2d 774 (1944), the California
Supreme Court explained that the "Legislature may cure
irregularities or omissions to comply with provisions of a
statute which could have been omitted in the first instance."
The Validating Acts save taxpayers money. The bills allow bond
counsels to issue strong legal opinions. Strong legal opinions
result in higher credit ratings. Higher credit ratings result in
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lower interest rates. Lower interest rates mean lower borrowing
costs. Lower borrowing costs save money for state and local
taxpayers. The Validating Acts cannot forgive fraud, corruption,
or unconstitutional actions.
It was customary practice for all members of the former Senate
Local Government Committee to jointly author these annual
Validating Acts. Following this established tradition, the
Senate Governance and Finance Committee is authoring this year's
Validating Acts. As an urgency measure, SB 191, the First
Validating Act, will take effect this spring, when the Governor
signs the bill into law. SB 192, the Second Validating Act,
also an urgency bill, will take effect late summer, validating
mistakes that occur after the chaptering of the First Validating
Act. SB 193, the Third Validating Act, will take effect on
January 1, 2012, covering the period between the chaptering of
SB 192 and the end of 2011.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County & Municipal Employees
Association of CA Water Agencies
CA Association of Local Agency Formation Commissions
CA Association of Recreation and Park Districts
CA Association of Sanitation Agencies
CA Municipal Utilities Association
CA Redevelopment Association
CA Special Districts Association
CA State Association of Counties
County of Sacramento
East Bay Municipal Utility District
Fire Districts Association of CA
Midpeninsula Regional Open Space District
Mosquito and Vector Control Association of CA
Regional Council of Rural Counties
State Association of County Auditors
State Controller John Chiang
State Treasurer Bill Lockyer
Urban Counties Caucus
Opposition
SB 192
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None on file
Analysis Prepared by : Dixie Petty / L. GOV. / (916) 319-3958