BILL ANALYSIS Ó
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 1344 HEARING: 7/6/11
AUTHOR: Feuer FISCAL: Yes
VERSION: 6/29/11 TAX LEVY: No
CONSULTANT: Ewing
LOCAL OFFICIALS' COMPENSATION
Restricts local compensation practices and specifies
procedures for adopting city charters.
Background and Existing Law
Local voters can adopt, amend, or repeal a city charter at
a special election, any municipal election, or statutorily
established election. Cities must provide a minimum of 88
days between calling for the election and the date of the
election. For charters proposed by a charter commission,
state law requires 95 days.
The Meyers-Milias-Brown Act governs labor-management
relations although its bargaining and representation
procedures generally don't apply to executive employees.
Existing statutes restrict the compensation that can be
offered by local agencies to employees not covered by the
Meyers-Milias-Brown Act, including restrictions on
compensation when employment contracts are terminated, and
mechanisms local agencies can use to set compensation.
The Ralph M. Brown Act establishes procedures to ensure
public access to information maintained by local agencies
and that the decisions made by public agencies are done in
an open and transparent fashion to retain public control
over those agencies.
Proposed Law
Assembly Bill 1344 does the following:
Prohibits the use of special elections for
authorizing, amending or rescinding a city charter.
Requires explicit notice of charter proposals
that authorize new city powers, including the
AB 1344 -- 6/29/11 -- Page 2
authority of city officials to increase their
compensation without voter approval.
Restricts the ability of local agencies to
authorize automatic pay increases for senior city
officials.
Prevents cities from including in contracts
provisions to cover legal and related costs,
including leave salary and a cash settlement for a
terminated contract, for senior officials if those
officials are convicted of a crime involving the
abuse of the local office.
Requires cities to post specified meeting and
related notices on public websites.
Restricts the use of a special meeting to make
compensation decisions.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . AB 1344 restores public trust in
local government in response to scandals in the City of
Bell. Local officials allegedly enriched themselves and
committed fraud by using flexibilities in the law regarding
the adoption of a city charter, how election materials are
drafted, and the lack of limits on compensation policies
for senior officials. AB 1344 responds to those
deficiencies, addresses the most flagrant violations, and
fortifies public disclosure and notice requirements. AB
1344 moves toward restoring public trust in the operations
of local agencies.
2. Diligence over authority . There is no end to the
creativity and motivation behind fraud for financial gain.
That creativity cannot be constrained through legal
strictures. The City of Bell's scandals came to light and
were snuffed out through old fashioned press reporting and
law enforcement efforts. AB 1344 may stop copycat efforts,
but cannot replace a diligent public that is alert to the
next scheme that will come along.
3. Related legislation . A number of bills have been
AB 1344 -- 6/29/11 -- Page 3
introduced in response to recent local agency compensation
scandals.
AB 23 (Smyth) would require public notice when
serial or subsequent meetings trigger eligibility
for compensation.
AB 148 (Smyth) requires a local agency that has
adopted a written attendance compensation policy or
written reimbursement policy to post the policy on
the local agency's Internet Web site and to submit a
copy to the Controller.
AB 392 (Alejo) would require local agencies to
improve public access to reports and information
developed by local agency staff.
SB 46 (Correa) would require designated
employees who are required to file statements of
economic interest under a conflict of interest code
to include, as a part of that filing, a compensation
disclosure form that provides compensation
information for the preceding calendar year.
Assembly Actions
Assembly Local Government Committee: 7-2
Assembly Elections & Redistricting Committee: 6-0
Assembly Appropriations Committee: 17-0
Assembly Floor: 78-0
Support and Opposition (6/30/11)
Support : Common Cause.
Opposition : Unknown.