BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 779


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          779 (Cristina Garcia)


          As Amended  August 3, 2016


          Majority vote


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                 (vote not relevant)




          Original Committee Reference:  TRANS.


          SUMMARY:  Requires cities, counties and special districts to  
          compile compensation information about their elected officials  
          and post it on their Web sites (websites).


          The Senate amendments delete the prior contents of the bill and  
          add the current language.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  









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          1)Bill Summary.  This bill requires cities, counties and special  
            districts, on or before April 30 of each year, to post  
            compensation information in a conspicuous location on their  
            Internet websites.  The compensation information must contain  
            the names, positions, and total compensation, including a  
            breakdown of the types of compensation provided, of each  
            elected official within that entity for the previous calendar  
            year.  If a city or special district does not have an Internet  
            website, it shall compile this information and make that  
            information readily available upon request.


            This bill defines "total compensation" to include payments for  
            salaries, overtime, unused vacation time, stipends, pension  
            contributions, retirement contributions, health premium  
            contributions, automobile allowances, phone allowances, and  
            technology allowances.  Any other type of compensation that a  
            city, county, or special district provides shall also be  
            included and specified.  "Total compensation" does not include  
            reimbursements or payments for work-related travel expenses.   
            The bill does not apply to school districts.


            This bill is sponsored by the author.


          2)Author's Statement.  According to the author, "People have a  
            right to know how much their elected officials are paid.  By  
            featuring the compensation information on local websites,  
            residents will have better access to this information.  AB 779  
            requires the breakdown of all types of compensation to be  
            posted.  This full reporting will add needed transparency.   
            For example, a recent newspaper investigation reported the  
            city of Maywood was paying officials and some employees $250  
            monthly mileage stipends.  It's unclear how such a payment  
            could be justified, as the city is just larger than one square  
            mile.  


            "Unfortunately, abuses like those that occurred in the city of  
            Bell and other local governments are still occurring.   








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            Currently, the SCO [State Controller's Office] posts local  
            entity's salary information by position, but does not include  
            names.  While the SCO posts break down some compensation, they  
            also include an 'other' category.  Something like a mileage  
            stipend, mentioned above, would fall in this 'other'  
            category."   


          3)Background.  The State Controller must compile and publish  
            reports of the financial transactions of local governments,  
            including counties, cities, special districts, and joint  
            powers authorities.  These reports must also state the annual  
            compensation of a local agency's elected officials, officers,  
            and employees in accordance with reporting instructions  
            developed by the Controller.  The Controller must make these  
            reports, including compensation data, available on its website  
            in a form that can be printed and downloaded.  Local agencies  
            that maintain a website must post the report and the  
            compensation information, or a link to the report on the  
            Controller's website, in a conspicuous location.


            The Controller's instructions define compensation to include  
            salaries, overtime pay, lump sum pay, pension contributions,  
            health/vision/dental benefits, deferred compensation  
            contributions, and any other compensation (such as automobile  
            allowances).  Local agencies must compile this information for  
            each employee, who is identified by their classification,  
            including whether the employee held multiple positions.  Local  
            agencies must submit this information for the previous  
            calendar year no later than April 30th.


            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  








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            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.


          4)Previous Legislation.  AB 2040 (Garcia), Chapter 894, Statutes  
            of 2014, required local agency financial transaction reports  
            to include information about the annual compensation of the  
            local agency's elected officials, officers, and employees,  
            required local agencies to post this information on their  
            websites, and required the Controller to compile, publish, and  
            make this information publicly available on the Controller's  
            website.  


          5)Support Arguments.  The California League of Conservation  
            Voters and Sierra Club California, in support, state, "We are  
            pleased to support AB 779, which increases local government  
            transparency and helps residents easily find information about  
            their local officials' compensation.  Scandals in Bell and  
            Vernon concerning pay for elected officials highlight the need  
            for more transparency about who is paid what, in order to  
            prevent the misuse of taxpayer dollars.  ?This information  
            will allow residents to better understand the amounts and  
            types of compensation that these officials receive.  Some  
            local government entities already post this information  
            prominently on their websites.  Also, some California news  
            organizations and interest groups currently request, compile,  
            and post local government compensation on their websites.   
            However, the amount of information varies by entity and  
            region, and what is available can be difficult to find."


          6)Opposition Arguments.  The League of California Cities, in  
            opposition, writes, "Current law already requires local  
            agencies to report the compensation of their government boards  
            as well as all employees to the California State Controller.   
            These reports include the following items requested in AB 779  
            in the compilation of total compensation: stipends, automobile  
            allowance, technology allowance, phone allowance, pension  
            contributions, retirement contributions, health premiums, and  








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            any other type of compensation.  AB 779 differs only in  
            specifically requesting that unused vacation time be reported  
            and that the different compensation categories be broken out.


            "This measure requires a new duplicative report to be posted  
            on agencies' websites although current law (Government Code  
            Section 53901) already requires compensation reports to be  
            posted in a conspicuous location on agencies' websites.  We  
            believe that existing forms and instructions are sufficient to  
            accommodate the intent of this measure without requiring  
            duplicative reporting and posting."


          7)Gut and Amend.  The subject matter of this bill has not been  
            heard in any Assembly policy committee this legislative  
            session.


          Analysis Prepared by:                                             
                          Angela Mapp / L. GOV. / (916) 319-3958  FN:  
          0003925