BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SCA 3 (Leno) - Public records and open meetings: local mandate  
          reimbursement.
          
          Amended: June 20, 2013          Policy Vote: G&F 6-0
          Urgency: No                     Mandate: No
          Hearing Date: June 25, 2013                             
          Consultant: Mark McKenzie       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SCA 3, if approved by the voters, would require  
          local agencies to comply with the California Public Records Act  
          (CPRA) and the Ralph M. Brown Act (Brown Act), as well as with  
          future amendments to those statutes, and disclaim state  
          reimbursement for legislative mandates related to those current  
          and future provisions.

          Fiscal Impact: 
              One-time Secretary of State ballot printing/mailing costs  
              of $330,000 to $390,000 in 2013-14 (General Fund), assuming  
              six pages in the ballot pamphlet and a cost of $55,000 to  
              $65,000 per page.  Actual costs may be higher or lower,  
              depending on the length of required elements and the overall  
              size of the ballot (see staff comments).

               Relieving the state from reimbursement for mandated costs  
              related to the CPRA and Brown Act would result in unknown  
              future state General Fund savings, likely in the millions,  
              and potentially in the tens of millions annually.  To the  
              extent the Legislature enacts future mandates related to  
              those acts that would currently be subject to reimbursement,  
              there would be additional future savings. 

          Background:  Existing law, the CPRA, requires state and local  
          agencies to make public records open to inspection by every  
          person, with specified statutory exceptions, and to provide  
          copies of public records to any person, upon payment of fees  
          covering direct costs of duplication, or a statutory fee if  
          applicable.  If a public record is in an electronic format,  
          public agencies are required to make that information available  
          in an electronic format, and in any other electronic format that  








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          a public agency has used to create copies for its own use, upon  
          request.  Local agencies are required to assist the public with  
          identifying and locating public records, and to respond to  
          requests within ten days, as specified.    

          Existing law, the Brown Act, requires that all meetings of local  
          legislative bodies be open and public, and requires local  
          agencies to post hearing notices and provide the public with  
          copies of materials distributed during open meetings.  In the  
          past, the state has reimbursed local governments for costs  
          resulting from certain provisions of the Brown Act, such as the  
          requirement to prepare and post agendas for public meetings.   
          Proposition 30, "The Schools and Local Public Safety Protection  
          Act of 2012," specifies that any requirement that a local agency  
          comply with the Brown Act shall not be a reimbursable mandate.

          In 2004, California voters approved Proposition 59, which  
          incorporated the right of public access to information contained  
          in the CPRA and other open meetings and public records laws into  
          the California Constitution.  Section 3 of Article I of the  
          Constitution requires the meetings of public bodies and the  
          writings of public officials to be open to public scrutiny as a  
          result of the basic right of the people of the State to have  
          access to information concerning the conduct of the people's  
          business.  

          Section 6 of Article XIII B of the California Constitution  
          requires the state to reimburse local agencies for all costs  
          mandated by the state, including direct and indirect costs.  The  
          Legislature is exempt from reimbursement requirements for  
          mandates enacted prior to 1975, mandates requested by the  
          affected local agency, and legislation that defines a new crime  
          or changes an existing definition of a crime.  Existing  
          statutory law provides additional exemptions from reimbursement  
          for mandates that impose duties necessary to implement a ballot  
          measure, impose requirements mandated by federal law, as well as  
          those for which there are savings or fee authority sufficient to  
          offset the costs of the mandated new program or higher level of  
          service.

          The Commission on State Mandates (Commission) issued a Statement  
          of Decision on May 11, 2011 (Case No.: 02-TC-10 and 02-TC-51),  
          determining that a number of provisions in the CPRA impose  
          reimbursable state-mandated programs on local agencies.   








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          Although the core provisions of the CPRA were enacted in 1968,  
          and are thus not subject to state-reimbursement, this test claim  
          found that certain provisions enacted after 1975 are  
          reimbursable state-mandated activities, including the following:
                 Providing a copy of public records in an electronic  
               format used by the agency.
                 Notifying a requesting party whether records are public  
               and subject to disclosure within 10 days, and the reasons  
               for that determination.
                 Providing a reason to a requesting party if an extension  
               of the 10-day period is necessary due to unusual  
               circumstances.
                 Providing assistance to the public in identifying and  
               locating public records.
                 Redacting or withholding home address and telephone  
               contact information of school district employees from  
               public records that are subject to disclosure.

          The Commission adopted Parameters and Guidelines on this test  
          claim on April 19, 2013, which provides guidance to local  
          agencies seeking reimbursement, but has not adopted a statewide  
          cost estimate, which gives the Legislature an estimate of the  
          projected annual General Fund costs associated with the mandate.

          Proposed Law: SCA 3, if approved by the voters, would amend the  
          California Constitution in the following ways:
                 Amend Section 3 of Article I to require local agencies  
               to comply with the CPRA and the Brown Act, any successor to  
               those acts, and with any subsequent statutory amendments to  
               those acts or their successors that contain findings that  
               demonstrate furtherance of the purposes of those acts.
                 Amend Section 6 of Article XIII B to exempt the state  
               from the requirement to reimburse local agencies for  
               state-mandated new programs or higher levels of service  
               enacted within the scope of the CPRA or Brown Act, or any  
               subsequent statutory amendments to those acts, as  
               specified. 

          Staff Comments: The Governor's 2013-14 Budget, released in  
          January of this year, proposed to suspend or defer a number of  
          mandates, including the CPRA mandates that were recently  
          identified in the above-mentioned Statement of Decision.  When a  
          mandate is suspended, there is no obligation that local agencies  
          comply with the statutory requirements.  Notwithstanding  








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          proposals to suspend existing and recently-adopted  
          state-mandated local programs, the state owes local governments  
          $900 million for mandate payments that existed prior to 2004,  
          which aren't projected to be repaid from the General Fund until  
          2021.  

          The Legislature recently approved AB 76 (Assembly Committee on  
          Budget), a budget trailer bill that deemed certain provisions of  
          the CPRA as "best practices" and made local agency compliance  
          optional with respect to specified provisions that were recently  
          deemed to be reimbursable state mandates.  The Governor has not  
          acted on this measure to date, and the Legislature recently  
          adopted SB 71 (Senate Committee on Budget and Fiscal Review) as  
          a substitute trailer bill that includes all of the provisions of  
          AB 76 except those related to the CPRA mandate and an additional  
          item related to a local agency ethics training mandate.  As an  
          alternative to the original budget trailer bill proposal making  
          CPRA mandated activities optional, SCA 3, if approved by the  
          voters, would ensure future General Fund savings.  If enacted,  
          this measure would appear on the ballot in the next statewide  
          election in June of 2014.

          SCA 3, if approved by the voters, would enshrine in the  
          Constitution the responsibility for local agencies to pay for  
          any costs related to providing the public right of access to the  
          meetings of public bodies and the writings of public officials  
          and agencies.  The magnitude of any future savings related to  
          the permanent ongoing relief of state reimbursement for  
          legislative mandates related to the CPRA and Brown Act are  
          unknown as the Commission has not issued a statewide cost  
          estimate related to the CPRA mandates approved in the 2011 test  
          claim noted above.  The Legislative Analyst's Office (LAO)  
          analysis of the Governor's proposed budget estimates that annual  
          state costs could reach the tens of millions of dollars, given  
          the breadth of activities required by the CPRA mandate and the  
          number of local governments affected.  There would be additional  
          future savings to the extent that the Legislature enacts future  
          mandates related to the CPRA and Brown Act that would currently  
          be subject to reimbursement.  Staff notes that local agencies  
          would still be entitled to state subventions of funds for local  
          costs incurred prior to voter approval of this measure for any  
          CPRA and Brown Act requirements deemed by the Commission to  
          impose a reimbursable state-mandated local program, pursuant to  
          existing law.








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          The Secretary of State would incur one-time costs to present  
          this measure to the voters.  Ballot printing and distribution  
          costs noted above are based upon an assumed length of six pages  
          in the ballot pamphlet for the required title and summary, LAO  
          analysis, arguments in support and opposition, and the text of  
          the proposal.  Actual costs could be higher or lower, depending  
          on the length of those required elements, as well as the overall  
          size of the ballot pamphlet.  Generally, printing and mailing  
          costs can vary from $55,000 to $65,000 per page, but more  
          lengthy ballots may have a lower cost per page.