BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
           ------------------------------------------------------------------ 
          |Bill No:  |AB 1817                          |Hearing    |5/11/16  |
          |          |                                 |Date:      |         |
          |----------+---------------------------------+-----------+---------|
          |Author:   |Mark Stone                       |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |4/11/16                          |Fiscal:    |No       |
           ------------------------------------------------------------------ 
           ----------------------------------------------------------------- 
          |Consultant|Weinberger                                            |
          |:         |                                                      |
           ----------------------------------------------------------------- 

            Solid waste:  garbage and refuse disposal districts:  board of  
                                      directors



          Increases the maximum amounts of compensation that can be  
          provided to a garbage and refuse disposal district's board of  
          directors.


           Background 

           State law allows a county board of supervisors to form a garbage  
          and refuse disposal district after determining, by resolution,  
          that a portion of the county is in need of a site for the  
          disposal of garbage and refuse and should be formed into a  
          district (AB 1054, Silhman, 1951).  State law prohibits any  
          garbage and refuse disposal district from being formed after  
          October 1, 1961.

          A garbage and refuse disposal district's board of director may  
          receive a maximum of $50 per diem for each day of attendance at  
          board meetings and a maximum of $100 per diem in any calendar  
          month (SB 675, Grunsky, 1975).  Board members may be reimbursed  
          for their actual and necessary expenses incurred in the  
          performance of official business of the district, as approved by  
          the board.  These limits on board members' compensation are  
          lower than the limits for board members of some other types of  
          special districts that provide waste disposal services.  For  
          example, state law allows community services district and  







          AB 1817 (Mark Stone)                                    Page 2  
          of ?
          
          
          sanitary district board members to be compensated up $100 per  
          meeting for up to six meetings per month and allows those  
          districts' boards to adopt ordinances that increase board  
          members' compensation.

          According to data collected by the State Controller's Office,  
          the Monterey Regional Waste Management District (MRWMD) is the  
          only special district still in existence that operates pursuant  
          to the statutes that govern garbage and refuse disposal  
          districts.  MRWMD was created in 1951 as the Monterey Peninsula  
          Garbage & Refuse Disposal District in response to the dumping  
          and burning of waste on coastal sand dunes in Pacific Grove,  
          Monterey, and Carmel.  In 1987, the 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 board of  
          directors comprised of nine members who are appointed to  
          four-year terms. 

          MRWMD officials note that as its board of director's  
          responsibilities has increased, the principal act that limits  
          directors' compensation remains unchanged.  They want the  
          Legislature to amend the statute that limits directors'  
          compensation to more closely align with statutes that govern  
          other waste disposal districts' boards.


           Proposed Law

           Assembly Bill 1817 increases the cap on compensation for a  
          garbage and refuse disposal district's board of directors.   
          Specifically, AB 1817:  
                 Deletes the $50 per meeting limit on the amount of per  
               diem that a director can receive and, instead, authorizes  
               the board, by ordinance or resolution, to provide  
               compensation that does not exceed $100 per meeting or for  
               each day of service rendered as director by request of the  
               board.   

                 Deletes the $100 monthly limit on the amount of per diem  
               received by each director and, instead, authorizes a board  
               member to receive compensation for up to six days in a  








          AB 1817 (Mark Stone)                                    Page 3  
          of ?
          
          
               calendar month. 

                 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.  

                 Makes other technical changes.


           State Revenue Impact

           No estimate.


           Comments

           1.  Purpose of the bill  .  The $50 per meeting and $100 per month  
          limits on compensation received by MRWMD's Board of Directors  
          were enacted in 1975.  During the past four decades, MRWMD has  
          increased its responsibilities and obligations due to an  
          expanding residential and commercial population and new  
          statutorily-required duties.  MRWMD directors now oversee 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.  Board members attend many more than two meetings per  
          month and often attend other trainings and workshops.  AB 1817  
          proposes to update the statute governing MRWMD directors'  
          compensation to align more closely with directors' expanded  
          responsibilities as well as to mirror the compensation rates of  
          other waste disposal districts in the state.

          2.   A garbage and refuse disposal district, by any other name,  
          would smell as sweet  .  State law allows several types of  
          independent special districts to provide solid waste handling  
          and recycling services, including: community services districts,  
          county water districts, municipal utility districts, public  
          utility districts, and sanitary districts.  MRWMD is apparently  
          the only special district that is governed by the state laws  
          that, until 1961, allowed for the establishment of "garbage and  
          refuse disposal districts."  Rather than requiring the  








          AB 1817 (Mark Stone)                                    Page 4  
          of ?
          
          
          Legislature to periodically update MRWMD's outdated governing  
          statutes to conform to statutes that govern other districts, it  
          may make sense to convert MRWMD to a community services  
          district, utility district, or other type of special district  
          that is governed by a more-widely-used principal act.  Six years  
          ago, the Legislature enacted an "expedited reorganization"  
          process by which a local agency formation commission (LAFOC)  
          could convert resort improvement districts or municipal  
          improvement districts into community services districts (SB  
          1023, Wiggins, 2010).  The Committee may wish to consider  
          amending AB 1817 to establish a similar "expedited  
          reorganization" process by which the Monterey County LAFCO could  
          convert the MRWMD into another type of special district that can  
          provide solid waste services pursuant to a more modern principal  
          act.


           Assembly Actions

           Assembly Local Government Committee:  7-1

          Assembly Floor:               53-16


           Support and  
          Opposition   (5/5/16)


           Support  :  Monterey Regional Waste Management District;  
          California Special Districts Association; Monterey County  
          Business Council; Monterey Peninsula Chamber of Commerce; Save  
          Our Shores; The Offset Project.


           Opposition  :  Unknown.



                                      -- END --

          











          AB 1817 (Mark Stone)                                    Page 5  
          of ?