BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 779|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  AB 779
          Author:   Cristina Garcia (D) 
          Amended:  8/3/16 in Senate
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  7-0, 6/29/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,  
            Pavley

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  77-1, 6/3/15 - See last page for vote

           SUBJECT:   Local government:  financial disclosures


          SOURCE:    Author


          DIGEST:  This bill requires local agencies to post the names and  
          total compensation of elected officials on their Web sites.


          ANALYSIS:  


          Existing law:


          1)Requires the State Controller to compile and publish reports  
            of the financial transactions of local governments, including  
            counties, cities, special districts, and joint powers  
            authorities.








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          2)Requires these annual reports to state the annual compensation  
            of a local agency's elected officials, officers, and employees  
            in accordance with reporting instructions developed by the  
            Controller. 


          3)Requires the Controller to make these reports, including  
            compensation data, available on its Web site in a form that  
            can be printed and downloaded.  


          4)Requires local agencies that maintain a Web site to post the  
            report and the compensation information, or a link to the  
            report on the Controller's Web site, in a conspicuous  
            location.


          This bill:


          1)Requires, on or before April 30 of each year, a city, county,  
            city and county, or special district to post in a conspicuous  
            location on their Web site information that contains the  
            names, positions, and total compensation of each elected  
            official for the previous calendar year.


          2)Requires a city, county, city and county, or special district  
            that does not have a Web site to compile this information and  
            make it readily available upon request.


          3)Defines total compensation to include the aggregate of  
            payments for salaries, overtime, unused vacation, stipends,  
            pension contributions, retirement contributions, health  
            premium contributions, automobile allowances, phone  
            allowances, technology allowances, and any other type of  
            compensation provided.  


          4)Excludes reimbursements or payments for work-related travel  
            expenses from the definition of compensation under this bill.   







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          Background


          In recent years, several small cities in Los Angeles County have  
          come under scrutiny for their compensation practices.  In  
          particular, beginning in July 2010, a series of news reports  
          revealed that City of Bell officials received some of the  
          highest salaries in the nation, topping $700,000 annually.   
          These revelations led to further inquiries into financial  
          irregularities that culminated with convictions for the former  
          mayor, four former city councilmembers, the city administrator,  
          and the assistant city administrator.  More recently, City of  
          Maywood officials drew criticism in May 2016 for receiving  
          automobile stipends of $250/month, even though the city is the  
          second smallest in the county and covers approximately one  
          square mile. Troubled by these abuses, some advocates for open  
          government want local agencies to post additional information  
          about local elected officials' compensation on their Web site.


          Comments


          1)Purpose of the bill. Exorbitant employee compensation  
            undermines the public's faith that taxpayer dollars are being  
            put to the best use.  But without adequate information on  
            compensation, it is difficult to identify and hold accountable  
            those who are being overpaid.  The average citizen is unlikely  
            to think of the State Controller's Office Web site when  
            looking for local government compensation information; logic  
            leads them to look on the local government's Web site.  And  
            even if a taxpayer can find the right Web site, it can be  
            difficult to tie compensation to specific individuals.  AB 779  
            helps Californians to easily find information about their  
            local elected officials to hold them accountable.  Matching  
            the level of compensation with names and breaking out parts of  
            compensation (such as car allowances) makes it easier to  
            identify egregious compensation practices.  The California  
            Legislature already posts names and salaries for all its  
            employees; AB 779 ensures that local governments take small  
            steps in a similar direction.







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          2)Redundant. State law already requires local governments to  
            provide exhaustive information on the compensation of its  
            elected officials to the State Controller's Office, which then  
            posts the information in an accessible format.  Local agencies  
            must also include a prominent link to that information on  
            their Web site, either by posting the information themselves  
            or pointing the user to the Controller's Web site.  AB 779  
            requires local governments to post similar information on  
            their Web sites.  If there are concerns with the transparency  
            afforded by the Controller's compensation reports, it makes  
            sense to address those deficiencies instead of creating costly  
            and duplicative requirements.  


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified8/10/16)


          California League of Conservation Voters
          Sierra Club California


          OPPOSITION:   (Verified8/10/16)


          California Special Districts Association
          Rural County Representatives of California




          ASSEMBLY FLOOR:  77-1, 6/3/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  







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            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Ting, Wagner, Waldron, Weber, Wilk,  
            Williams, Wood, Atkins
          NOES:  Gatto
          NO VOTE RECORDED:  Brough, Thurmond

          Prepared by:Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
          8/10/16 15:45:21


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