BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1945
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1945 (Simitian)
          As Amended August 26, 2002
          Majority vote
           
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          |ASSEMBLY:  |69-3 |(May 28, 2002)  |SENATE: |25-4 |(August 27,    |
          |           |     |                |        |     |2002)          |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  Subjects the willful disclosure of confidential  
          information discussed during local legislative closed meetings  
          to formalized penalties.  

           The Senate amendments  :  

          1)Specify nine closed session "safe harbor" exceptions where a  
            person may not disclose confidential information that arises  
            out of that closed session.

          2)Allow any person, not just local agencies, to seek injunctive  
            relief, take disciplinary action, or refer any person to grand  
            jury.

          3)Include, in addition to the penalty provisions of this bill,  
            any current remedy available by law to be applied when  
            confidential information from a closed session is disclosed.

          4)State that a local agency cannot penalize any person in any of  
            the following three instances when a member of a governing  
            body:  a) makes a confidential inquiry or complaint to a  
            district attorney or grand jury concerning a perceived  
            violation of law; b) expresses an opinion concerning the  
            propriety or legality of actions taken by a local agency  
            governing body in closed session; and, c) discloses  
            information acquired by being present in a closed session  
            under this chapter that is not confidential information.

          5)Add, to the above instances, disclosures protected by the  
            whistleblower statutes (Labor Code Section 1102.5 et seq., and  
            Government Code Section 53296 et seq.).

          6)Specify that when a local agency takes a disciplinary action  








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            against an employee who has willfully disclosed confidential  
            information that the employee in question has either already  
            received training or has been given prior notice of the  
            requirements of this bill.

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Specified that no person can disclose confidential information  
            derived from a local agency closed meeting, unless the  
            governing body authorizes the disclosure.

          2)Defined "confidential information" as information that has  
            been acquired by being present 
          in the closed session and which consists of:  a) a communication  
            concerning pending litigation within the attorney-client  
            privilege; b) a communication concerning matters posing a  
            threat to the security of public buildings, access to public  
            services, or personnel matters; or, c) strategies or  
            instructions discussed between the legislative body and its  
            negotiator. 

          3)Specified that if a local agency member is found to have  
            willfully disclosed confidential information that one of the  
            following may apply:  a) a local agency may seek injunctive  
            relief to prevent the disclosure of confidential information;  
            b) a local agency may take disciplinary action against an  
            employee who has willfully disclosed confidential information;  
            or, c) a local agency may refer the matter to the grand jury  
            for investigation and possible indictment.

          FISCAL EFFECT  :  Unknown

           COMMENTS  :  The 1953 Ralph M. Brown Act (Brown Act) governs the  
          rules for meetings conducted by local governing bodies, such as  
          boards of supervisors, city councils, and school boards.  The  
          Brown Act represents the Legislature's determination of how to  
          strike a balance between public access to meetings of  
          multi-member public bodies on the one hand, and the need for  
          confidential candor, debate, and information gathering on the  
          other.  The Legislature has established a presumption in favor  
          of public access requiring most local agency meetings be open to  
          the public.  However, there are generally exceptions to every  
          rule and the Brown Act contains eleven.

          This bill seeks to penalize those members that sit on a local  








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          agency governing board who "leak" confidential information  
          obtained from a closed session hearing.  An example of a leak  
          would be a mayor that passes a maximum bid price onto a  
          developer resulting in an unfair advantage for that developer.   
          Current law subjects members of a governing body to a  
          misdemeanor if they are found to have deprived the public of  
          information.  However, in the reverse, there are no formal  
          penalties for divulging confidential information - members  
          operate on the honor code system.  The author states that  
          penalties are needed to protect against misuse of the  
          confidential information in regards to certain specified  
          exceptions. 

          Under this bill, there are three formal penalty options for the  
          use of any person to mitigate the disclosure of confidential  
          information; two remedies for local agency members and one for  
          employees.  The first allows for the local agency to seek  
          injunctive relief to prevent further disclosure.  The second  
          allows the local agency to refer the member to the grand jury  
          for investigation or accusation if he or she is found to have  
          willfully disclosed the confidential information.  The third  
          option is intended to deal with the personnel related exceptions  
          that deal with matters such as employee salaries and  
          performance.  For the third penalty, employees that willfully  
          disclose confidential information may be subject to  
          "disciplinary action" by the local agency.  However, recent  
          amendments to this bill specify that an employee must have  
          received training or knowledge of the requirements of this bill  
          prior to the disciplinary action.  Other amendments allow for  
          any person to initiate any one of the three penalties provided  
          in the bill and not limit them to just local agencies.  In  
          addition, the bill now expressly states that penalties are no  
          longer limited to these three - any current remedy available by  
          law can also be applied when confidential information from a  
          closed session is disclosed.

           
          Analysis Prepared by  :    Frances Chacon / L. GOV. / (916)  
          319-3958 


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