BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Tom Torlakson, Chair
BILL NO: AB 1827 HEARING: 6/23/04
AUTHOR: Cohn FISCAL: No
VERSION: 6/16/04 CONSULTANT: Swenson
BROWN ACT AND STATE AUDITS
Background and Existing Law
The Legislature created the Bureau of State Audits to
replace the Auditor General's Office that closed the
previous year because of budget cuts (SB 37, Maddy, 1993).
As the state's independent external auditor, the State
Auditor provides independent, nonpartisan, accurate, and
timely assessments of public financial and operational
activities in compliance with generally accepted government
auditing standards. State law prohibits any officer or
employee of any publicly created entity that has assisted
the State Auditor with an audit or that has received a
draft copy of any report for comment or review from
divulging the information contained in the report.
The Ralph M. Brown Act requires local governments' meetings
to be "open and public," guaranteeing citizens control over
their local governing bodies. Private discussions among a
majority of a legislative body are prohibited, unless
expressly authorized under the Brown Act. Legislative
bodies can meet in closed sessions only for the following
reasons:
Discussions with legal counsel on pending
litigation or liability claims.
Threats to public buildings or access to public
services.
Public employee personnel issues.
Conferences with the body's representative on labor
negotiations.
A conference with real property negotiators.
Multi-jurisdictional drug cases.
District hospital peer reviews, quality assurance
committees, or reports involving trade secrets.
A license or permit determination for those with
criminal records.
Local officials must place a closed meeting item on an
agenda and cite their statutory authority to meet behind
AB 1827 -- 6/16/04 -- Page 2
closed doors. They must report on any action taken in
closed session and provide the vote of every elected member
present.
Like the Brown Act, the Bagley-Keene Open Meeting Act
requires all meetings of a state body, including boards and
commissions, to be "open and public."
Almost half of the Bureau's audits involve governmental
entities that are subject to either the Brown Act or the
Bagley-Keene Act. Because of the confidential nature of
draft audit findings, these entities cannot meet in public
to discuss the report's accuracy or to formulate a plan of
action based on the audit's findings and recommendations.
However, because the open meeting acts do not allow closed
sessions for discussing draft audit reports, these entities
also cannot discuss these issues in private.
Worried that incomplete responses to state audits and
delays in resolving identified issues impair the
Legislature's oversight role, the Bureau of State Audits
wants an exception to the open meeting acts to allow
legislative bodies to meet in closed session to discuss
confidential draft audit reports.
Proposed Law
Assembly Bill 1827 creates a new exception to both the
state and local open meeting laws to allow a governing body
to meet in closed session to discuss a confidential draft
audit report from the Bureau of State Audits.
Specifically, AB 1827:
Amends the Bagley-Keene Open Meeting Act to allow a state
body that has received a confidential final draft audit
report from the Bureau of State Audits to meet in closed
session to discuss that report.
Authorizes a state body to call a special meeting to
consider its response to a confidential final draft audit
that is permitted to be discussed in closed session.
Specifies that after the public release of an audit
report by the Bureau of State Audits, a state body that
meets to discuss the report must do so in an open session
unless exempted by some other provision of law.
Amends the Ralph M. Brown Act to allow the legislative
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body of a local agency that has received a confidential
final draft audit report from the Bureau of State Audits
to meet in closed session to discuss its response to that
report.
Provides a suggested agenda description of this type of
closed session item.
Comments
1. Improve the process, improve the outcome . Because many
of the State Auditor's clients are subject to open meeting
laws, they have a hard time discussing and formulating
responses to confidential draft audit reports. The Bureau
of State Audits faces the persistent challenge of receiving
shallow and incomplete responses to its audits because some
agencies can't have the necessary discussions. AB 1827
allows agencies to meet in closed session to discuss
confidential audit findings and formulate appropriate
responses. Better responses produce better outcomes.
2. Second policy committee . The Senate Governmental
Organization Committee heard AB 1827 on June 15, 2004. The
Committee passed the bill to the Senate Local Government
Committee on an 11-0 vote.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Governmental Organization Committee:18-2
Assembly Floor: 70-7
Support and Opposition (6/17/04)
Support : Association of California Water Agencies,
California School Boards Association, California Special
Districts Association, East Bay Municipal Utility District,
Santa Clara Valley Water District.
Opposition : Unknown.