| Last Version Text |
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<ns0:Id>20250SB__085896CHP</ns0:Id>
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<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-03-12</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
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<ns0:ActionDate>2025-08-21</ns0:ActionDate>
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<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-08-29</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-02</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>CHAPTERED</ns0:ActionText>
<ns0:ActionDate>2025-10-01</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>APPROVED</ns0:ActionText>
<ns0:ActionDate>2025-10-01</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>FILED</ns0:ActionText>
<ns0:ActionDate>2025-10-01</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>858</ns0:MeasureNum>
<ns0:MeasureState>CHP</ns0:MeasureState>
<ns0:ChapterYear>2025</ns0:ChapterYear>
<ns0:ChapterType>CHP</ns0:ChapterType>
<ns0:ChapterSessionNum>0</ns0:ChapterSessionNum>
<ns0:ChapterNum>242</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Committee on Local Government (Senators Durazo (Chair), Arreguín, Cabaldon, Choi, Laird, Seyarto, and Wiener)</ns0:AuthorText>
<ns0:Authors>
<ns0:Committee>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Committee on Local Government</ns0:Name>
<ns0:Members>Senators Durazo (Chair), Arreguín, Cabaldon, Choi, Laird, Seyarto, and Wiener</ns0:Members>
</ns0:Committee>
</ns0:Authors>
<ns0:Title> An act to amend Sections 25103, 25105, 25121, 26802.5, 36932, 37396, 53601, 57002, 62463, and 62464 of the Government Code, to amend Section 21221 of, and to amend the heading of Article 89 (commencing with Section 21220) of Chapter 1.5 of Part 3 of Division 2 of, the Public Contract Code, and to amend Section 11865 of the Public Utilities Code, relating to local government. </ns0:Title>
<ns0:RelatingClause>local government</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Local Government Omnibus Act of 2025.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law authorizes a county board of supervisors, by resolution, to authorize the use of a facsimile signature of the chairperson of the board on all papers, documents, or instruments requiring the signature of the chairperson, as provided, if certain requirements are met relating to the personal signature of the chairperson. Under existing law, if those requirements are met, the papers, documents, or instruments bearing the facsimile signature are accorded the same force and effect as though personally signed by the chairperson.
</html:p>
<html:p>This bill would remove the requirement for that authorization to occur by resolution of the board. The bill would authorize the board, in addition to authorizing a facsimile signature, to authorize the use of an electronic
or digital signature of the chairperson on all papers, documents, or instruments requiring the signature of the chairperson. Under the bill, a document bearing the electronic or digital signature of the chairperson would have the same force and effect as if personally signed by the chairperson.</html:p>
<html:p>Existing law also requires ordinances enacted by a county board of supervisors to be signed by the chairperson of the board and attested by the clerk. Existing law requires city ordinances passed by a city council to be signed by the mayor and attested by the city clerk. Existing law specifies that, when attesting to a digital signature, a county clerk or a city clerk may presume that the signature is genuine and attributable to the signatory if the
digital signature complies with specified requirements.</html:p>
<html:p>This bill would additionally apply the above-described presumption to electronic signatures, as provided.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing law authorizes a county board of supervisors to authorize the use of photographs, microphotographs, electronic data processing records, optical disks, or any other medium that is a trusted system and that does not permit additions, deletions, or changes to the original document, or photocopies of all records, books, and minutes of the board. Under existing law, if the documents are signed using a digital signature, the reproduced documents are considered authenticated if the reproduced documents are created by a trusted system, as defined in pertinent digital signature regulations.
</html:p>
<html:p>This bill would provide that if the documents are signed using an electronic or
digital signature, the reproduced documents are considered authenticated if the reproduced documents are created by a trusted system, as defined in pertinent digital signature regulations, or in compliance with the Uniform Electronic Transactions Act.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law authorizes a registrar of voters to be appointed by the board of supervisors in specified counties to discharge all duties vested by law in the county clerk that relate to and are a part of election procedure.
</html:p>
<html:p>This bill would include the Counties of Kern and Nevada among those counties in which the board of supervisors is authorized to
appoint a registrar of voters.</html:p>
<html:p>This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Kern and Nevada.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for immediate needs to invest the money as it deems wise or expedient in certain securities and financial instruments. In this regard, existing law authorizes investment in prime quality commercial paper issued by entities meeting certain criteria, if the eligible commercial paper has a maximum maturity of
270 days or less.
</html:p>
<html:p>This bill would revise the maximum maturity periods for the investments in prime quality commercial paper to 397 days. </html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Existing law, the Vallejo Flood and Wastewater District Act, provides for contracting by the Vallejo Flood and Wastewater District. Existing law requires the district, in all work of improvement or repair of any of the works or property of the district and in the furnishing of materials or supplies, when the expenditures exceed $4,000, to do the work by contract let to the lowest responsible bidder, after prescribed notice, as specified.
</html:p>
<html:p>This bill would specify that “furnishing of materials and supplies” referenced in the above-described provision is for work of improvement or repair of any of the works or property of the district. The
bill would also make a nonsubstantive change with respect to the act.</html:p>
<html:p>Existing law further authorizes the board of trustees of the district to declare a state of emergency and take prescribed actions. Existing law requires the board of trustees to comply with certain emergency contracting procedures, if, with regard to actions taken during the emergency, notice for bids to let contracts will not be given.</html:p>
<html:p>This bill would delete the authorization for the board of trustees to declare a state of emergency and take prescribed actions and would delete the above-described requirement.</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Existing law, the Municipal Utility District Act, governs the formation and governance of municipal utility districts. The act provides that the government of every district is vested in a board of 5 or 7 directors and specifies procedures for filling a vacancy on a board. Those procedures authorize the remaining board members to fill a vacancy by appointment until the next district general election that is scheduled 90 or more days after the effective date of the vacancy, as provided.
</html:p>
<html:p>This bill would require the person appointed to fill a vacancy to hold office until the person elected at the next district general election that is scheduled 90 or more days after the effective date of the vacancy has been qualified and takes office.</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The bill would also correct various
cross-references, as provided.
</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>NO</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_31CDD6E8-52B9-47C6-B5D9-7D220F21154C">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
This act shall be known, and may be cited, as the Local Government Omnibus Act of 2025.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Legislature finds and declares that Californians want their governments to be run efficiently and economically and that public officials should avoid waste and duplication whenever possible. The Legislature further finds and declares that it desires to control its own costs by reducing the number of separate bills. Therefore, it is the intent of the Legislature in enacting this act to combine several minor, noncontroversial statutory changes relating to the common theme, purpose, and subject of local government into a single
measure.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_D82ADC95-A314-4A9D-BA36-F38F7AC73ABD">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 25103 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_94D0D3C7-875F-489D-B22A-3D67FBCF732B">
<ns0:Num>25103.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The records and minutes of the board, acting in any capacity, shall be signed by the chairperson and the clerk. The board may authorize the use of a facsimile or electronic or digital signature of the chairperson of the board acting in any capacity, where the board sits as the governing body, agency, or entity on all papers, documents, or instruments requiring the signature of the chairperson of the board, including all resolutions, orders, ordinances, contracts, minutes, notices, deeds, leases,
papers, and records of the board except that, in the case of a facsimile signature, the original copy thereof, or the copy thereof filed in the office of the clerk of the board, shall bear the personal signature of the chairperson or shall have been delivered to the chairperson, and those papers, documents, or instruments bearing the facsimile signature shall be accorded the same force and effect as though personally signed by the chairperson. A certificate by the clerk that a copy of that document has been delivered to the chairperson of the board shall be prima facie evidence of the delivery. A document bearing the electronic or digital signature of the chairperson shall have the same force and effect as if personally signed by the chairperson.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If, in order to be recorded by the county recorder, the paper, document, or instrument requires the acknowledgement or verification of the person by whom it is executed, then it shall be recordable when the clerk acknowledges the person’s signature upon the certificate that indicates that a copy of the paper, document, or instrument has been delivered to the chairperson.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In the case of a public security or any instrument of payment,
the Uniform Facsimile Signature of Public Officials Act (Chapter 6 (commencing with Section 5500) of Division 6 of Title 1) shall govern.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the facsimile signature of the chairperson of the board of supervisors is affixed to any document prior to November 23,
1970, the document shall have the same force and effect from the time of affixing as if the facsimile signature had been affixed after that date.
</html:p>
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</ns0:LawSection>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 25105 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_3A423D31-D334-4D72-87FB-C9C807874739">
<ns0:Num>25105.</ns0:Num>
<ns0:LawSectionVersion id="id_999402E6-85AF-4F0E-AB86-07A061439319">
<ns0:Content>
<html:p>The board of supervisors may authorize the use of photographs, microphotographs, electronic data processing records, optical disks, or any other medium that is a trusted system and that does not permit additions, deletions, or changes to the original document, or photocopies of all records, books, and minutes of the board.</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Each photograph, microphotograph, or photocopy shall be made in a manner and on paper that will comply with Section 12168.7 for recording of permanent records or nonpermanent records, whichever applies. Every reproduction shall be deemed and considered an original. A transcript, exemplification, or certified copy of any reproduction shall be deemed and considered a
transcript, exemplification, or certified copy, as the case may be, of the original. Each roll of microfilm shall be deemed and constitute a book and shall be designated and numbered, and provision shall be made for preserving, examining, and using it. A duplicate of each roll of microfilm shall be made and kept in a safe and separate place.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Electronic data processing records, records recorded on optical disk, and records recorded on any other medium shall comply with Section 12168.7. A duplicate copy of any record reproduced in compliance with Section 12168.7 for recording of permanent records or nonpermanent records, whichever applies, shall be deemed an original.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In the event the authorization provided herein is granted, the personal signatures required by Section
25103, if technically feasible, may be reproduced by the authorized process, and the reproduced signatures shall be deemed to satisfy the requirement of Section 25103. If the documents are signed using an electronic or digital signature, reproduced documents shall be considered authenticated if the reproduced documents are created by a trusted system, as defined in pertinent digital signature regulations, or in compliance with the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code).
</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 25121 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_F30EE1BF-E64F-47E1-8571-BE30049E896E">
<ns0:Num>25121.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Every ordinance shall be signed by the chairperson of the board and attested by the clerk. When attesting to an electronic or digital signature, the clerk may presume that the signature is genuine and attributable to the signatory if the electronic or digital signature complies with the requirement set forth in subdivision (a) of Section 16.5.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The amendments made to this section by the act that added this subdivision shall not be construed to affect the
validity of a clerk’s attestation to any other digital or electronic signature.
</html:p>
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 26802.5 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5D68E7E1-748B-4B64-9D50-35442FBE533A">
<ns0:Num>26802.5.</ns0:Num>
<ns0:LawSectionVersion id="id_F5476017-35BF-4CA4-90C8-CE4FEB2DCCD5">
<ns0:Content>
<html:p>In the Counties of El Dorado, Imperial, Kern, Kings, Lake, Marin, Merced, Modoc, Monterey, Napa, Nevada, Riverside, San Joaquin, Solano, Sonoma, and Tulare, a registrar of voters may be appointed by the board of supervisors in the same manner as other county officers are appointed. In those counties, the county clerk is not ex officio registrar of voters, and the registrar of voters shall discharge all duties vested by law in the county elections official that relate to and are a part of the election procedure.</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 36932 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_A0EF924C-048E-4462-8336-1E4EA979ED6F">
<ns0:Num>36932.</ns0:Num>
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<html:p>
(a)
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Ordinances shall be signed by the mayor and attested by the city clerk. When attesting to an electronic or digital signature, the clerk may presume that the signature is genuine and attributable to the signatory if the electronic or digital signature complies with the requirement set forth in subdivision (a) of Section 16.5.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The amendments made to this section by the act that added this subdivision shall not be construed to affect the validity of a clerk’s
attestation to any other digital or electronic signature.
</html:p>
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<ns0:Num>SEC. 7.</ns0:Num>
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Section 37396 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_4F278CEB-F509-40C4-83D7-B858D3DD4F4F">
<ns0:Num>37396.</ns0:Num>
<ns0:LawSectionVersion id="id_D1B9AC7F-AC3D-4652-8F70-E83543009FA4">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A city, county, or city and county may lease property owned, held, or controlled by it for not to exceed 99 years, for stadium, park, recreational, fair, exposition, or exhibition purposes, or for general sports purposes such as training and competitive sports.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On and after April 24, 2002, a lease executed pursuant to this section on territory annexed pursuant to Section 56742, may not include a shopping center, hotel, motel, or lodging house, but may include a lease for all other purposes authorized under this section, including a lease for either or both of
the following purposes:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Any dormitory or medical facility that exclusively, except in the case of a medical emergency, serves individuals participating in training or competitions held at the site leased pursuant to subdivision (a).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any food facility, as defined by Section 113785 of the Health and Safety Code, food vending, and sales of goods and services incidental to, and in support of, the purposes of the lease.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A lease made by a county pursuant to this section is subject to Article 8 (commencing with Section 25520) of Chapter 5 of Part 2 of Division 2 of Title 3.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_40F48B68-0817-4C4D-AB0F-FEDCB9035217">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 53601 of the
<ns0:DocName>Government Code</ns0:DocName>
, as amended by Section 6 of Chapter 187 of the Statutes of 2023, is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_EBDB7409-3E03-4BB0-BC16-8925F5CA8657">
<ns0:Num>53601.</ns0:Num>
<ns0:LawSectionVersion id="id_D67A6EB6-DAB8-45DC-9868-0204C0334F9A">
<ns0:Content>
<html:p>This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered,
or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency’s funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank’s customer book entry account may be used for book entry delivery.</html:p>
<html:p>For purposes of this section, “counterparty” means the other party to the transaction. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. For purposes of compliance with this section, an
investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Registered
treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal
and interest by federal agencies or United States government-sponsored enterprises.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Bankers’ acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days’ maturity or 40 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency’s moneys may be invested in the bankers’ acceptances of any one commercial bank pursuant to this section.
</html:p>
<html:p>This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code).</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The entity meets the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Is organized and operating in the United States as a general corporation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Has total assets in excess of five hundred million dollars ($500,000,000).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The entity meets the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Is organized within the United States as a special purpose corporation, trust, or limited liability company.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.
</html:p>
<html:p>Eligible commercial paper shall have a maximum maturity of 397 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. A local agency, other than a county or a
city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635.</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630),
except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the
underlying securities is brought back up to 102 percent no later than the next business day.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The agreement does not exceed a term of 92 days, unless the
agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse
repurchase agreement or securities lending agreement and the final maturity date of the same security.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of this chapter, “significant banking relationship” means any of the following activities of a bank:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Financing of a local agency’s activities.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Acceptance of a local agency’s securities or funds as deposits.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“Repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty
bank’s customer book-entry account may be used for book-entry delivery.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“Securities,” for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“Reverse repurchase agreement” means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“Securities lending agreement” means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held
by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
For purposes of this section, the base value of the local agency’s pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Medium-term notes,
defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company’s board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Shares of beneficial interest issued by diversified management companies that are money market funds registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Retained an investment adviser registered or exempt from registration with the United States Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by
subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Retained an investment adviser registered or exempt from registration with the United States Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1).
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing
the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of
the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (b) or (f), the following limitations apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The security shall be rated in a rating category of
“AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Purchase of securities authorized by this paragraph shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The adviser is registered or exempt from registration with the United States Securities and Exchange Commission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five
years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
Commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_9112C1CC-4344-4A21-A299-1A0D97F32482">
<ns0:Num>SEC. 9.</ns0:Num>
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Section 57002 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_2F9F6A67-5C5E-42D3-BA03-107333AA581F">
<ns0:Num>57002.</ns0:Num>
<ns0:LawSectionVersion id="id_66F7FBB3-F906-47A2-8B10-1AE69168E902">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Within 35 days following the adoption of the commission’s resolution making determinations, the executive officer of the commission shall set the proposal for hearing and give notice of that hearing by mailing, publication, and posting, as provided in Section 57025. The hearing shall not be held prior to the expiration of the reconsideration period specified in subdivision (b) of Section 56895. The date of that hearing shall not be less than 21 days, or more than 60 days, after the date the notice is given.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Where
the proceeding is for the establishment of a district as a subsidiary district of a city, upon the request of the affected district, the date of the hearing shall be at least 90 days, but no more than 135 days, from the date the notice is given.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Where the proceeding is for the dissolution of a district initiated by the commission pursuant to Section 56375.1, the date of the hearing shall be at least 60 days, but no more than 90 days, from the date the notice is given.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If authorized by the commission pursuant to Section 56662 or 56663, a change of organization or reorganization may be approved without notice, hearing, and election.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_2D4C4D0E-5EBA-4A73-AEA5-D9FDF46CAC48">
<ns0:Num>SEC. 10.</ns0:Num>
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Section 62463 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Num>62463.</ns0:Num>
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<html:p>Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of a downtown revitalization financing plan, including a division of taxes, shall be commenced within 30 days after the enactment of the resolution creating the district pursuant to Section 62458. Consistent with the time limitations of this section, an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.</html:p>
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<ns0:Num>SEC. 11.</ns0:Num>
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Section 62464 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_EF308684-F080-4D86-BDF2-0E63B72F7AF5">
<ns0:Num>62464.</ns0:Num>
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<html:p>This section implements and fulfills the intent of this division and of Article XIII B of the California Constitution. The allocation and payment to a district of the portion of taxes specified in Section 62457 for the
purposes specified in this division, shall not be deemed the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall that portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B of the California Constitution.</html:p>
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<ns0:Num>SEC. 12.</ns0:Num>
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The heading of Article 89 (commencing with Section 21220) of Chapter 1.5 of Part 3 of Division 2 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
is amended to read:
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<ns0:LawHeading id="id_9110CCBA-C346-4C2F-AD6C-78537EB08D7D" type="ARTICLE">
<ns0:Num>89.</ns0:Num>
<ns0:LawHeadingVersion id="id_E0E87260-CEA8-4578-BB2F-A59D5E732B67">
<ns0:LawHeadingText>Vallejo Flood and Wastewater District</ns0:LawHeadingText>
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<ns0:Num>SEC. 13.</ns0:Num>
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Section 21221 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_CD77CB56-F9DC-42B2-9032-FA6FAE13E92D">
<ns0:Num>21221.</ns0:Num>
<ns0:LawSectionVersion id="id_DAB17305-EB80-41CD-9BC0-E6CCC88D742D">
<ns0:Content>
<html:p>In all work of improvement or repair of any of the works or property of the district and in the furnishing of materials or supplies therefor, when the expenditures exceed four thousand dollars ($4,000), the work shall be done by contract, and shall be let to the lowest responsible bidder, after notice by publication in the district pursuant to Section 6066 of the Government Code and by posting the notice for at least five days at or near the door of the meeting place
of the board of trustees prior to the date set for opening bids; the notices shall distinctly state the work contemplated or the materials or supplies required therefor; provided the board of trustees may reject any bid presented and readvertise and post in their discretion, and provided further, that the board may declare and determine that in its opinion the work in question can be performed more economically by day labor or the materials or supplies can be furnished at a lower price in the open market, and they may proceed to have the work done or the materials purchased without further observance of the provisions of this section.</html:p>
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</ns0:LawSection>
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<ns0:BillSection id="id_24527270-E5DF-40D1-BC5F-F4777C786498">
<ns0:Num>SEC. 14.</ns0:Num>
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Section 11865 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_049EF101-3C73-4545-A16D-1AC331F34E4A">
<ns0:Num>11865.</ns0:Num>
<ns0:LawSectionVersion id="id_2D28095B-E8DE-45D1-939C-4E84E1303588">
<ns0:Content>
<html:p>Vacancies on the board shall be filled as provided in this section:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The remaining board members may fill the vacancy by appointment. The person appointed to fill the vacancy shall hold office until the person elected at the next district general election that is scheduled 90 or more days after the effective date of the vacancy has been qualified and takes office. The appointment shall be made within a period of 60 days immediately subsequent to the effective date of the vacancy. A notice of the vacancy shall be posted in three or more conspicuous places in the district at least 15 days before the appointment is made.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In lieu of making an appointment, the remaining members of the board may within 60 days of the vacancy call a special election to fill the vacancy. The person elected at the special election shall hold office for the remainder of the term in which the vacancy occurred.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the vacancy is not filled by appointment as provided in paragraph (1) of subdivision (a), or if the board has not called for a special election within 60 days of the vacancy as provided in paragraph (2) of subdivision (a), the board of supervisors of the county representing the larger portion of the district area in which the election to fill the vacancy will be held may fill the vacancy by appointment within 90 days of the effective date of the vacancy or may order the district to call a special election to fill the vacancy.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If within 90 days of the effective date of the vacancy, the remaining members of the board or the appropriate board of supervisors have not filled the vacancy by appointment and no election has been called for, the district shall call a special election to fill the vacancy.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A person elected at an election to fill a position to which an appointment was made pursuant to this section shall take office immediately upon issuance of the certificate of election by the secretary of the district, after qualifying according to law, and shall hold office for the remainder of the term in which the vacancy occurs.
</html:p>
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<ns0:BillSection id="id_8C81D4AA-6EDF-46DA-A26D-29B12782B422">
<ns0:Num>SEC. 15.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares, with respect to Section 4 of this act, that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the County of Kern and the County of Nevada. The facts constituting the special
circumstances include the need to reorganize the structure and duties of county officers to reduce costs and increase productivity within the county government.</html:p>
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