BILL ANALYSIS Ó
AB 2040
Page 1
ASSEMBLY THIRD READING
AB 2040 (Garcia)
As Amended May 23, 2014
Majority vote
LOCAL GOVERNMENT 7-0 APPROPRIATIONS 17-0
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|Ayes:|Levine, Alejo, Bradford, |Ayes:|Gatto, Bigelow, |
| |Gordon, Melendez, Rendon, | |Bocanegra, Bradford, Ian |
| |Waldron | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires local agencies to include in their annual
financial transaction reports to the State Controller
(Controller) the annual compensation of their public officials,
and to post that information on their Web sites. Specifically,
this bill :
1)Requires local agencies to include in the information they
report annually to the Controller the annual compensation of a
local agency's public officials in accordance with reporting
instructions developed by the Controller pursuant to existing
law, as specified, in consultation with affected local
agencies.
2)Provides that, if a local agency that is required to report to
the Controller pursuant to existing law, as specified,
maintains an Internet Web site, the agency shall post in a
conspicuous location on its Web site the annual compensation
of its public officials that is posted on the Controller's
Government Compensation in California (GCC) Web site.
3)Provides that, if the Commission on State Mandates determines
that this bill contains costs mandated by the state,
reimbursement to local agencies and school districts for those
costs shall be made pursuant to current law governing state
mandated local costs.
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EXISTING LAW :
1)Requires the Controller to compile and publish reports of the
financial transactions of each county, city, and special
district within this state, together with any other matter he
or she deems of public interest.
2)Requires the officer of each local agency who has charge of
the financial records to furnish to the Controller a report of
all the financial transactions of the local agency during the
next preceding fiscal year.
3)Defines local agency to mean "any city, county, any district,
and any community redevelopment agency required to furnish
financial reports" pursuant to specified sections of existing
law.
4)Requires the report to be furnished within 90 days after the
close of each fiscal year and to be in the form required by
the Controller.
5)Requires the report to contain specified contents, including
"other information that the Controller requires."
6)Allows the Controller to establish the GCC Web site, pursuant
to his or her responsibility and authority to publish local
agency financial transaction reports.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown, but likely minor, on-going reimbursable
costs to local agencies to collect and compile the information
required by this bill.
COMMENTS :
1)Purpose of this bill. This bill requires local agencies to
include in their annual financial transaction reports to the
Controller the annual compensation of their public officials,
and to post that information on their Web sites. This bill is
author-sponsored.
2)Financial transaction reports and the GCC Web site. Existing
law, pursuant to Government Code Section 12463, requires the
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Controller to compile and publish reports of the financial
transactions of each county, city, and special district within
the state, "together with any other matter he or she deems of
public interest."
Existing law also requires the officer of each local agency,
who has charge of the financial records of the agency, to
furnish to the Controller a report of all the financial
transactions of the local agency during the next preceding
fiscal year. Pursuant to Government Code Section 53892, the
report must include specified information, including "other
information that the Controller requires."
The Controller launched his GCC Web site in response to the
2010 scandal in the City of Bell to promote government
transparency and help prevent such problems from reoccurring.
The Web site includes information about all employees with
wages reportable on a Federal W-2 form. Data is self-reported
by governments and is not verified by the Controller's Office.
The GCC report is a supplement to the Controller's annual
financial transactions report. The authority to collect this
information is granted under Government Code Sections 12463
and 53892. These reports are due to the Controller within 90
or 110 days after their fiscal year end.
Other entities participate voluntarily in the GCC program,
including state agencies, K-12 school districts, courts, the
University of California system, the California State
University system, community colleges, First Five, and fairs
and expos.
3)Related legislation. AB 2676 (Rendon) of 2014, would have
expanded the Controller's authority to perform audits or
investigations of counties, cities, and special districts if
the Controller makes specified findings that any of these
local government entities is violating financial requirements
in state law, state grant agreements, local charters, or local
ordinances, and would have increased forfeiture amounts local
agencies must pay for failing to file their financial reports
with the Controller. This bill was held in the Assembly
Appropriations Committee.
4)Previous legislation. AB 941 (Rendon) of 2013, was
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substantially similar to AB 2676.
AB 941 passed the Assembly Local Government Committee with a 9-0
vote on May 1, 2013. AB 941 was held in the Assembly
Appropriations Committee.
AB 1035 (Muratsuchi) of 2013, changed the forfeiture amounts
local agencies must pay for failing to file their financial
reports with the Controller. AB 1035 passed the Assembly
Local Government Committee with an 8-0 vote on April 10, 2013.
AB 1035 was held in the Senate Governance and Finance
Committee.
SB 186 (Kehoe and DeSaulnier) of 2012, was substantially
similar to AB 2676. SB 186 passed the Assembly Local
Government Committee with a 9-0 vote on June 27, 2012.
SB 186 was held in the Assembly Appropriations Committee.
5)State mandate. This bill is keyed a state mandate, which
means the state could be required to reimburse local agencies
and school districts for implementing the bill's provisions if
the Commission on State Mandates determines that the bill
contains costs mandated by the state.
6)Support arguments: There is no known support.
7)Opposition arguments: Opponents to the prior version of this
bill, as introduced on February 20, 2014, contended that this
bill contained problematic definitions and posed a significant
compliance burden for them.
Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958
FN: 0003816