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Legislative Bill Action The following are summaries of. just a few of the legislative bills that are currently being acted upon by the League of California Cities. The League encourages you to review the bills and contact the appropriate committees to demonstrate your support or opposition of issues that are important to your community. Your assistance is appreciated. REVENUE AND TAXATION negligence of the public entity). AB 1839 limits the AB 2100 (Simitian). Property Tax Revenue conditions under which a design professional would Shifts. Limitation. Implements caps on transfers be required to indemnify a public agency to negli- to the Educational Revenue Augmentation Fund gence and willful misconduct, which is the normal (ERAFI, starting July 1, 2005. The ERAF transfers tort rule, and hence provides for no indemnification. would be limited to 90 percent of the property tax AB 1839 further limits the indemnity of the public increment in the first "qualifying" year and would be agency to causation arising from action "in the reduced by 10 percent in each subsequent "qualify- performance of the agreement or contract." This lng year." To "qualify," the Director of Finance must would allow the design professional an additional certify by November 1 that the General Fund Reserve loophole with which to avoid indemnifying and is at least three percent of revenues and revenues defending a public agency, I~y stating that a particu- for May through September exceed May Revision lar action was not "in the performance of the con- estimates. Staff: Dwight Stenbakken, Status: AsLG, tract." We believe that existing statutory require- Hrg-4/lO, Position: Support. merits agreed upon by local government and design professionals in Chapter 722, Statutes of 1997 (AB AB 3052 (Pescetti). Sales Tax Exemptions on 994) are sufficient protection for both local agencies Energy Efficient Appliances. Purchasers of energy and the design professional. The League will likely efficient appliances such as refrigerators and wash- oppose AB 1839 based on existing policy. Staff: ers would receive a sales tax break under AB 3052. Natasha Fooman, Status: AsJud;Hrg-4/9, Position: Conserving energy is in the public interest; however Review and Comment. not at the expense of local city services. AB 3052 includes legislative intent to backfill state and local AB 2031 (Canciamilla). Vehicles, Funeral revenues; however, in the current state budget crisis Processions. AB 2031 requires local authorities in reimbursements are highly unlikely. Staff: Dwight counties with a population greater than 100,000 Stenbakken, Status: AsRevTax, Position: Oppose people, whenever the regulation of traffic is autho- Unless Amended, rized for a funeral procession, to issue each funeral escort a~ identif cation card and an official insignia patch indicating the funeral escort is authorized to TRANSPORTATION AND PUBLIC WORKS direct traffic in accordance with the movement of the AB 1839 (Campbell). Indemnity. Public funeral procession. AB 2031 requires local govern- Agency. Existing indemnity language allows public merits regulate the formal training of funeral escorts agency contracts to be written in a manner that relating to traffic control and safety procedures. AB design professionals must agree to indemnify and 2031 raises concerns regarding dual:jurisdiction defend the public agency from any and all losses processions. When a mortuary is in one city and the arising out of the consultant's negligent acts, errors, gravesite in another, would each.jurisdiction the omissions or willful misconduct. An indemnity tries procession moves through be required to issue a to protect the public agency from the accusation of separate identification card and badge to funeral any liability on its part, so as to avoid being drawn escorts? Would funeral escorts be required to into the lawsuit, and shifts the liability to the complete formal training in each_jurisdiction? If indemnifying party (except for the sole active Visit the League's Official Web Site--www, cacities.org PRIORITY FOCUS/PAGE 3