BILL ANALYSIS AB 1399 Page 1 Date of Hearing: January 13, 2010 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Anna Marie Caballero, Chair AB 1399 (Anderson) - As Amended: January 12, 2010 SUBJECT : Elected local agency officials. SUMMARY : Prohibits a city or county official, whether elected or appointed, from making available to an immediate family member a publicly funded vehicle owned or operated by, or a credit card issued by, the local agency that the local official represents. Specifically, this bill : 1)Prohibits a city or county official, elected or appointed, from making available to an immediate family member a publicly funded vehicle owned or operated by, or a credit card issued by, the local agency that the official represents. 2)Defines immediate family member to mean a child, in-law, parent, sibling, or spouse of the local official. 3)Does not apply to a local official if the legislative body of the local agency that the local official represents has adopted an ordinance, resolution, or other measure that already prohibits this type of conduct. EXISTING LAW : 1)The California Constitution prohibits local governments from making any gift of public money or thing of value to any person. 2)Requires a local agency that provides reimbursement for expenses to members of its legislative body to adopt a written policy on the duties for which legislative body members may receive compensation other than meetings of the legislative body or an advisory body or attendance at a conference or organized educational activity. 3)Requires a local agency to adopt a written policy concerning what occurrences qualify a member to receive reimbursement for expenses for travel, meals, lodging. 4)Requires a member of a legislative body who has been AB 1399 Page 2 reimbursed for actual and necessary expenses by his or her local agency to file expense reports. These expense reports are public records. 5)Imposes penalties for misuse of public resources or falsifying expense reports in violation of expense reporting policies. FISCAL EFFECT : None COMMENTS : 1)The California Constitution already prohibits local governments, which includes elected county officials, from making any gift of public money or thing of value to any person. 2)The author states the reason for AB 1399 is the public expects elected officials to hold themselves to the highest ethical standards and maintain transparency and accountability in government. According to the author, honest officials are tarnished by those who use their office to enrich themselves or their family members. The author points directly to the case of a Riverside county supervisor whose sister was paid $330,000 in campaign money over the span of three years for political consulting and professional services while she was volunteering full-time for the county. On top of the campaign money, the supervisor's sister also received free use of a county car with taxpayer-funded gasoline included. 3)Even though the author states the use of the car by the supervisor's sister was a gift of public funds, this situation is not one in which public funds were improperly used because the sister was volunteering for the county. If the sister had not been providing Riverside County with any sort of services, then the use of the county-issued car would have been prohibited under the California Constitution as a gift of public funds. 4)As written, AB 1399 takes the constitutional prohibition on gifting public funds a step further. AB 1399 would prohibit a city or county official, elected or appointed, from making AB 1399 Page 3 available to a child, in-law, parent, sibling, or spouse a publicly funded vehicle owned or operated by, or a credit card issued by, the local agency that the official represents. Many cities and counties already have policies prohibiting this type of conduct, and AB 1399 would ensure all cities and counties are ethically on the same page. Thus, AB 1399 would not apply to an official where the legislative body of his or her local agency has adopted an ordinance, resolution, or other measure that already prohibits this type of conduct. REGISTERED SUPPORT / OPPOSITION : Support Dr. Blair Ball, President, Beaumont Cherry Valley Water District Borrego Water District CA Conference of Machinists CA Conference of the Amalgamated Transit Union CA Taxpayer Protection Committee CA Teamsters Public Affairs Council City of El Cajon Deer Springs Fire Protection District Engineers & Scientists of CA, IFPTE, Local 20 Mary England, Councilmember, City of Lemon Grove Stephen Halfaker, Superintendent, Lakeside Union School District Helix Water District Frank Hilliker, President, Lakeside Water District International Longshore and Warehouse Union John Jeter, President, San Gorgonio Pass Water Agency Support (continued) La Mesa Taxpayers Association, PAC Martin Orenyak, Chairman, Borrego Springs Fire District Professional and Technical Engineers, IFPTE, Local 21 Ramona Municipal Water District Robert Shield, President, Grossmont Union High School District Larry Spicer, Mayor, City of Indian Wells James Stieringer, President, Grossmont Healthcare District UNITE-HERE United Food & Commercial Workers Western States Council Bill Wells, Mayor Pro Tem, City of El Cajon Yucaipa-Calimesa Joint Unified School District Individual letters (20) AB 1399 Page 4 Opposition None on file Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916) 319-3958