BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SCA 3 (Leno and Steinberg)
          As Amended  June 20, 2013
          2/3 vote 

           SENATE VOTE  :37-0  
           
           LOCAL GOVERNMENT              9-0                   BUDGET       
          24-0                
           
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          |Ayes:|Achadjian, Levine, Alejo, |Ayes:|Skinner, Gorell, Bloom,   |
          |     |Bradford, Gordon,         |     |Campos, Chavez, Chesbro,  |
          |     |Melendez, Mullin, Rendon, |     |Daly, Dickinson, Gordon,  |
          |     |Waldron                   |     |Grove, Harkey,            |
          |     |                          |     |Jones-Sawyer, Mansoor,    |
          |     |                          |     |Melendez, Mitchell,       |
          |     |                          |     |Morrell, Mullin,          |
          |     |                          |     |Muratsuchi, Nazarian,     |
          |     |                          |     |Nestande, Patterson,      |
          |     |                          |     |Stone, Ting, Wagner       |
           ----------------------------------------------------------------- 

           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  :








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          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.

          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  








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            requests for information, timeframes for compliance, providing  
            written notice when a request is denied, and similar  
            provisions.

           FISCAL EFFECT  :   According to the Budget Committee, there are  
          one-time General Fund costs of about $220,000 to include an  
          analysis of this measure, and arguments for and against the  
          measure, in the state voter pamphlet.  Unknown future state  
          General Fund savings, from relieving the state from  
          reimbursement for mandated costs related to the CPRA and the  
          Brown Act.

           COMMENTS  :  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.

          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."

          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  








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          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 10 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 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.

          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  








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          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 unusual  
          circumstances; providing assistance to the public in identifying  
          and locating public records; and, 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 (Budget  
          Committee), 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 (Budget and Fiscal Review  
          Committee), 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. 

          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.









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          "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  
          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."

          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  








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

          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.

           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958 


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