BILL ANALYSIS Ó AB 1817 Page 1 ASSEMBLY THIRD READING AB 1817 (Mark Stone) As Amended April 11, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Local |7-1 |Eggman, Waldron, |Beth Gaines | |Government | |Mullin, Bonilla, | | | | |Chiu, Cooley, Gordon | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Increases the cap on compensation for the board of directors of a garbage and refuse disposal district. Specifically, this bill: 1)Deletes existing law that provides board members of garbage and refuse disposal districts (board members) with a maximum of $50 per diem per meeting, and instead, authorizes the board, by ordinance or resolution, to provide compensation that does not exceed $100 per meeting, as specified. AB 1817 Page 2 2)Deletes the existing monthly limit for each board member of $100 in a calendar month, and instead, authorizes a board member to receive compensation for up to six days in a calendar month. Authorizes a board member to receive compensation for a day of service rendered as director by request of the board. 3)Provides that reimbursement and compensation for meetings are subject to existing law, which requires a governing board to adopt a written policy to determine acceptable compensable activities, and adopt written policies for reimbursing expenses. 4)Makes other technical changes. EXISTING LAW: 1)Authorizes the board of directors for a garbage and refuse disposal district to receive a maximum of $50 per diem for each day of attendance at board meetings, and prohibits board members from receiving more than $100 per diem in any calendar month. 2)Authorizes board members to be reimbursed for their actual and necessary expenses incurred in the performance of official business of the district, as approved by the board. FISCAL EFFECT: None COMMENTS: AB 1817 Page 3 1)Garbage and Refuse Disposal Districts. Several types of independent special districts are authorized to address garbage and waste collection needs, including community services districts, county water districts, and sanitary districts. Additionally, existing law outlines a principal act for garbage and refuse disposal districts, which requires the board to consist of at least three directors and provides an appointment process. The Assembly Revenue and Taxation Committee has only identified one district formed pursuant to this principal act, the Monterey Regional Waste Management District. The principal act prohibits any district from being formed after October 1, 1961. 2)Monterey Regional Waste Management District. In 1951, the Monterey Peninsula Garbage and Refuse Disposal District was formed to find a solution to the dumping and burning of waste on coastal sand dunes in Pacific Grove, Monterey, and Carmel. In 1987, the Monterey Peninsula Garbage and Refuse Disposal District changed its name to the Monterey Regional Waste Management District (MRWMD). MRWMD provides solid waste management and resource recovery, operates the 315 acre Monterey Peninsula Landfill, and develops and operates a number of other waste diversion and recycling facilities and programs. MRWMD is governed by a nine-member board appointed to four-year terms and consists of seven members appointed by each of the cities within the district's boundaries, one member for the unincorporated area, and one member-at-large. 3)Bill Summary. Existing law authorizes board members to receive a maximum of $50 per diem for each day of attendance at board meetings, with the per diem to be established by order of the board and entered upon its minutes, and a maximum of $100 per diem in any calendar month. This bill establishes new thresholds for compensation by authorizing the board to provide, by ordinance or resolution, board members with compensation in an amount not to exceed $100 per day of attendance at a meeting of the board for each day of service AB 1817 Page 4 rendered as a director by request of the board. Additionally, this bill increases the monthly limit of compensation to allow a board member to receive compensation for up to six days in a calendar month. This bill also specifies that compensation and reimbursement expenses are subject to existing law put in place by AB 1234 (Salinas), Chapter 700, Statutes of 2005, which requires a governing board to adopt a written policy to determine acceptable compensable activities, and adopt written policies for reimbursing expenses. This bill is sponsored by MRWMD. 4)Author's Statement. According to the author, "MRWMD Board of Directors receives no more than fifty dollars per diem not to exceed one hundred dollars per calendar month. This code section was enacted over 26 years ago. Currently, MRWMD has an increased number of responsibilities and obligations due to an expanding residential and commercial population and new statutorily-required duties. This change required an increase in the number of employees, as well as an increase in the amount of participation by the Board. The Board now oversees a $24 million budget, the recovery of recyclable materials in the waste stream, composting of green waste and food waste, receipt of non-hazardous liquid waste, disposal of municipal solid waste, and the operation of a landfill gas-to-electric energy system. With the Board attending many more than two meetings per month and often attending other trainings and workshops, this bill merely proposes to update the Board of Directors' compensation to align more closely with the current level of responsibility as well as to mirror the compensation rates of nearly all other waste disposal districts in the state." 5)Arguments in Support. MRWMD argues board members should be afforded the same compensation as members of virtually all other public waste disposal districts and that this bill brings their board members to a fair degree of equity with their counterparts. AB 1817 Page 5 6)Arguments in Opposition. None on file. Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0002728