BILL ANALYSIS Ó
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1344|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1344
Author: Feuer (D), et al.
Amended: 7/11/11 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 7/6/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
Kehoe, La Malfa, Liu
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/25/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
ASSEMBLY FLOOR : 78-0, 6/2/11 - See last page for vote
SUBJECT : Local governance
SOURCE : Author
DIGEST : This bill imposes a reimbursable state-mandated
local program by placing new requirements on employment
contracts that are executed or renewed by local agencies as
of January 1, 2012. Specifically, this bill prohibits
contracts with executive level employees from containing
provisions authorizing specified automatic compensation
increases or cash settlements exceeding certain statutory
requirements. This bill also requires future employment
contracts with all employees to provide for reimbursement
of specified payments if an employee is convicted of a
crime involving abuse of office or position. This bill's
CONTINUED
AB 1344
Page
2
requirements apply to all local public agencies, including
general law cities, charter cities, counties, school
districts, and special districts, and would require changes
to employment contracts and procedures involving legal
staff time.
ANALYSIS : 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.
This bill restricts certain compensation practices for
local agency executive officials, requires reimbursement
from local agency employees convicted of crimes involving
abuse of office, and makes changes to procedures for
adopting city charters. Specifically, this bill:
1. Prohibits any future contract between a local agency and
executive staff from providing for automatic renewal of
the contract that that includes automatic compensation
increases that exceed a cost-of-living adjustment, or a
maximum cash settlement that exceeds 18 months of salary
plus benefits.
2. Requires any contract between a local agency and an
officer or employee to provide for reimbursement of the
following if that person is convicted of a crime
involving abuse of office or position: any salary
CONTINUED
AB 1344
Page
3
provided as paid leave pending an investigation; funds
provided for legal or criminal defense; and cash
settlements related to termination of employment.
3. Requires reimbursement of these payments if an employee
not subject to an employment contract is convicted of a
crime involving abuse of position.
4. Deletes the authority for a city charter, charter
amendment, or charter repeal to be presented to the
voters at a special election called for that purpose.
5. Requires a proposal to adopt or amend a charter to
include explicit notice of new city powers, including
powers to raise city council or officials' compensation
without voter approval.
6. Clarifies that a charter or charter amendment proposed
by a charter commission must be presented to the voters
at least 95 days prior to an election.
7. Requires specified local agencies that have an Internet
Web site to post meeting agendas on that Web site, as
specified.
8. Prohibits local agency legislative bodies from calling a
special meeting regarding the salaries, salary
schedules, or benefit compensation of local agency
executives.
Comments
This bill 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.
This bill responds to those deficiencies, addresses the
most flagrant violations, and fortifies public disclosure
and notice requirements. This bill moves toward restoring
public trust in the operations of local agencies.
Related legislation . A number of bills have been
CONTINUED
AB 1344
Page
4
introduced in response to recent local agency compensation
scandals.
AB 23 (Smyth) requires 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
State Controller.
AB 392 (Alejo) requires local agencies to improve public
access to reports and information developed by local agency
staff.
SB 46 (Correa) requires 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee
analysis, total reimbursable mandate costs are unknown,
and depend upon whether affected agencies submit a
successful claim for reimbursement. These costs would
likely be relatively minor for most agencies, and many
would forego reimbursement. If five percent of the over
6,000 affected agencies incur costs of over $1,000 and
file a successful claim, however, total statewide costs
would exceed $300,000. Most of these costs would be
one-time, with minor ongoing costs.
SUPPORT : (Verified 8/26/11)
California Common Cause
ASSEMBLY FLOOR : 78-0, 6/2/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
CONTINUED
AB 1344
Page
5
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Harkey, Hayashi, Roger Hernández,
Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight,
Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Gorell, Hall
AGB:mw 8/29/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED