BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SCA 3
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          Date of Hearing:  August 14, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
               SCA 3 (Leno and Steinberg) - As Amended:  June 20, 2013
           
          SENATE VOTE  :  37-0
           
          SUBJECT  :  Public information.

           SUMMARY  :  Proposes amendments to the California Constitution  
          that require local agencies to comply with the California Public  
          Records Act and the Ralph M. Brown Act and exempt the state from  
          reimbursing local agencies for related costs.  Specifically,  
           this bill  :  

          1)Proposes an amendment to the California Constitution  
            (Constitution) that requires each local agency to comply with  
            the California Public Records Act (CPRA) and the Ralph M.  
            Brown Act (Brown Act), and with any subsequent statutory  
            enactment amending either act, enacting a successor act, or  
            amending any successor act that contains findings  
            demonstrating that the statutory enactment furthers the  
            purposes of Section 3 of Article I of the Constitution.

          2)Proposes an amendment to the Constitution that provides that  
            the Legislature may, but need not, reimburse local agencies  
            for legislative mandates contained in statutes within the  
            scope of 1), above.

           EXISTING LAW  :

          1)Provides, pursuant to the Constitution, that the people have  
            the right of access to information concerning the conduct of  
            the people's business, and, therefore, the meetings of public  
            bodies and the writings of public officials and agencies shall  
            be open to public scrutiny.

          2)Provides, pursuant to the Constitution, that statutes, court  
            rules, or other authorities must be broadly construed if they  
            further the people's right of access, and narrowly construed  
            if they limit the right of access.  A statute, court rule, or  
            other authority that limits the right of access must be  
            adopted with findings demonstrating the interest protected by  
            the limitation and the need for protecting that interest.








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          3)Requires, pursuant to the Constitution, the state to reimburse  
            local governments for the cost of new programs or higher  
            levels of service mandated by the Legislature or any state  
            agency.  Provides exceptions for the following: mandates  
            requested by the affected local agency; legislation defining a  
            new crime or changing an existing definition of a crime; or,  
            mandates enacted prior to 1975, or executive orders or  
            regulations initially implementing such legislation.  

          4)Establishes, pursuant to the Brown Act, standards for local  
            public agencies' open and public meetings.  Requires the  
            meetings of local governments' legislative bodies to be "open  
            and public," thereby ensuring the people's access to  
            information so they may retain control over the public  
            agencies that serve them.  Prohibits closed meetings, with  
            specified exceptions, and requires local agencies to post  
            hearing notices, provide the public with copies of materials  
            distributed during open meetings, and follow related  
            provisions to ensure public access to the meetings and  
            deliberations of local agencies' legislative bodies. 

          5)Provides, pursuant to the CPRA, for public access to public  
            agencies' records.  Requires, with specified exceptions, that  
            public records be open to inspection and that every person has  
            the right to inspect any public record.  Public records are  
            defined to include any writing containing information related  
            to the conduct of the public's business prepared, owned, used,  
            or retained by any state or local agency.  Outlines conditions  
            for public agency compliance with the CPRA, including the  
            requirement to offer reasonable assistance to persons making  
            requests for information, timeframes for compliance, providing  
            written notice when a request is denied, and similar  
            provisions.

           FISCAL EFFECT  :   Unknown.  This bill is keyed fiscal.

           COMMENTS  :   

          1)This bill proposes amendments to the Constitution that would  
            require local agencies to comply with the PRA and the Brown  
            Act, and that would exempt the state from reimbursing local  
            agencies for these costs.  If enacted, SCA 3 would appear on  
            the ballot in the next statewide election in June of 2014.   
            This bill is sponsored by the authors.








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          2)According to the author, "SCA 3 provides that compliance with  
            the CPRA and the Brown Act is essential to implementation of  
            Article 1, Section 3 (b) of the Constitution, that compliance  
            by local agencies with those laws is a matter of  
            constitutional principle and not just a statutory mandate, and  
            that, therefore, the costs incurred by local agencies for  
            compliance with the statutes are not subject to reimbursement  
            pursuant to Article XIII B as a state mandated local program.   
            SCA 3's cross-referencing of the statutory standards for  
            compliance with the CPRA and the Brown Act in Article I,  
            Section 3 does not 'constitutionalize' the CPRA and Brown Act  
            provisions in the sense that it directly adopts the words of  
            those acts into the Constitution and prevents future  
            legislative amendment of the statutes.  SCA 3 does not do  
            that.  Nor does SCA 3 'constitutionalize' the exemptions and  
            limitations under those statutes.  SCA 3 does not change the  
            standards for compliance with those statutes, but instead  
            provides that compliance with those provisions is a  
            constitutional mandate and not a state reimbursable mandate  
            under Section 6 of Article XIII B."

          3)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 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.    

            The Brown Act requires all meetings of local legislative  
            bodies to be open and public, and requires local agencies to  
            post hearing notices and agendas and provide the public with  
            copies of materials distributed during open meetings.  In the  
            past, the state has reimbursed local governments for costs of  
            complying with the Brown Act.  

            The California Constitution requires that, whenever the  
            Legislature or any state agency mandates a new program of  
            higher level of service on any local government, the state  








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            must reimburse local agencies for the costs of the program or  
            new level of service.  However, the Legislature is not  
            required to provide reimbursement for mandates requested by  
            the affected local agency, legislation defining a new crime or  
            changing an existing definition of a crime, or mandates  
            enacted prior to 1975, or executive orders or regulations  
            initially implementing such legislation.

            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 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.

          4)In 1984, the Legislature created the Commission on State  
            Mandates (Commission), which decides test claims to determine  
            whether the Legislature or a state agency imposed a  
            state-mandated local program.  If the Commission identifies a  
            state-mandated program, it adopts parameters and guidelines  
            defining what activities will be reimbursed, and adopts  
            statewide cost estimates.

            The State Constitution requires the Legislature to appropriate  
            funds in the budget bill to pay all outstanding claims for a  
            mandate, or to suspend or repeal the mandate.

            The Commission recently determined that a number of provisions  
            in the CPRA impose reimbursable state-mandated programs on  
            local agencies.  Although the core provisions of the CPRA were  
            enacted in 1968, and are not subject to state reimbursement,  
            the recent test claim found that certain provisions enacted  
            after 1975 are reimbursable state-mandated activities,  
            including:

                     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  








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                 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 Governor's 2013-14 Budget suspended or deferred a number  
            of mandates, including the CPRA mandates noted above.  The  
            Legislature in June of this year approved AB 76 (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 vetoed this measure in favor of SB 71 (Committee on  
            Budget and Fiscal Review), 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.  

          1)According to the California Newspaper Publishers Association  
            (CNPA), in support, "As the Brown Act and CPRA were both  
            enacted prior to the operative date of the mandate law passed  
            in 1979 their core provisions are not state reimbursable  
            mandates. The Commission on State Mandates (CSM), however,  
            determined provisions in the Brown Act requiring agencies to  
            post agendas and report out actions taken in closed session  
            and provisions in the CPRA that require agencies to provide  
            assistance with record requests additional notice and the  
            removal of certain information from school employee records to  
            be new local programs that are state reimbursable mandates.

            "CNPA has argued these duties create no meaningful costs that  
            should be reimbursed by the state.  The CSM, though, has  
            found, at least with respect to the Brown Act that the state  
            is required to reimburse local agencies an annual cost of  
            about $20 million.  Since the agenda posting law was authored  
            by then-Assemblyman Lloyd Connelly in 1986 (Ch. 641), it has  
            been repeatedly threatened by incredibly large claims for  
            reimbursement, on the one hand, and suspension of the law  
            through the state budget process during tight fiscal times, on  
            the other?

            "In 2012, the voters approved Proposition 30?(which) added a  
            section to the Constitution exempting the Brown Act from state  








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            mandate reimbursement requirements.  This year, however, the  
            Governor included previously suspended Brown Act mandates in  
            his proposed 2013-2014 budget despite the passage of  
            Proposition 30?CNPA learned in conversations with the LAO's  
            office that the reason for the continued suspension was  
            because the provision in Proposition 30 that exempted the  
            Brown Act from state mandate reimbursement requirements was  
            'not self-executing.'  In other words, in order for the  
            Proposition 30 exemption to become effective, the CSM had to  
            issue a ruling that exempted the Brown Act from the state  
            mandate reimbursement requirement.  The sections of the CPRA  
            determined to be state reimbursable mandates faced a similar  
            fate in the 2013-2014 budget.  CNPA believes that SCA 3 is the  
            best solution to resolve this continually frustrating issue."

          2)A number of local government organizations have raised  
            concerns with this measure.  The California State Association  
            of Counties (CSAC) writes, "We are deeply concerned that 
          SCA 3 represents a shift in course by the Legislature and  
            Governor, whereby mandates that are politically popular may be  
            put before the voters in order to relieve the state from  
            reimbursement.  SCA 3 sets a troubling precedent which leads  
            to an additional concern about future costs.

            "While it may be true that the Legislature has made only minor  
            amendments to the Acts over the last several years, we believe  
            that it is the Legislature's consideration of costs that has  
            tempered action in this area.  Since 2001, CSAC has followed  
            72 bills that would have amended the Brown Act or the Public  
            Records Act.  Those bills died in the Appropriations  
            Committees likely due to estimated costs associated with  
            reimbursable mandates.  Without this 'threat' of state costs  
            for mandate reimbursement, the Legislature will have fewer  
            reasons to withhold amendments to the Acts in the future.   
            These potential future changes leave counties vulnerable to  
            cost increases that we cannot control."

            The Association of California Water Agencies, in opposition,  
            expresses similar concerns and also notes that "SCA 3 would  
            violate the spirit of 2010's Proposition 22, which limited the  
            state's ability to use local funds for state purposes.   
            Proposition 22 was an indication that the state was getting  
            its financial affairs in order and boosted the public's  
            confidence, which supported the passage of Proposition 30 in  
            2012.  The state should not now reverse course by imposing  








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            indefinite financial obligations on local agencies' local  
            funds, as SCA proposes."

           3)Support arguments  :  Supporters argue that this bill will  
            provide certainty in the protection 
          of government transparency by requiring local agencies to comply  
            with the PRA and the Brown Act.

             Opposition arguments  :  Opponents contend this bill sets a  
            dangerous precedent in exempting state mandates and will  
            impose unmanageable costs on local governments.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Newspaper Publishers Association
          Common Cause
          Consumer Attorneys of California
          First Amendment Coalition

           Concerns
           
          Association of California Health Care Districts
          California Special Districts Association
          California State Association of Counties
          County of Los Angeles
          League of California Cities
          Rural County Representatives of California
          Urban Counties Caucus

           Opposition 
           
          Association of California Water Agencies
          California Association of Clerks and Election Officials
           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958