BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1817| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1817 Author: Mark Stone (D) Amended: 4/11/16 in Assembly Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 5/11/16 AYES: Hertzberg, Beall, Hernandez, Lara, Moorlach, Pavley NO VOTE RECORDED: Nguyen ASSEMBLY FLOOR: 53-16, 4/14/16 - See last page for vote SUBJECT: Solid waste: garbage and refuse disposal districts: board of directors SOURCE: Monterey Regional Waste Management District DIGEST: This bill increases the maximum amounts of compensation that can be provided to a garbage and refuse disposal district's board of directors. ANALYSIS: Existing law: 1)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, Chapter 964, Statutes of 1951). AB 1817 Page 2 2)Allows a garbage and refuse disposal district's board of director to 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, Chapter 232, Statutes of 1975). 3)Allows board members of some other types of special districts that provide waste disposal services, like community services district and 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. This bill increases the current statutory cap on compensation for a garbage and refuse disposal district's board of directors. Specifically, this bill: 1)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. 2)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 calendar month. 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. AB 1817 Page 3 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. 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. 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 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 AB 1817 Page 4 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. Comment 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified5/11/16) Monterey Regional Waste Management District (source) California Special Districts Association Monterey County Business Council AB 1817 Page 5 Monterey Peninsula Chamber of Commerce Save Our Shores The Offset Project OPPOSITION: (Verified5/11/16) None received ASSEMBLY FLOOR: 53-16, 4/14/16 AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Roger Hernández, Holden, Jones-Sawyer, Lackey, Lopez, Low, Maienschein, Medina, Mullin, Obernolte, O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Waldron, Weber, Wilk, Williams, Wood, Rendon NOES: Travis Allen, Brough, Chang, Chávez, Beth Gaines, Gallagher, Gray, Hadley, Harper, Jones, Kim, Mathis, Patterson, Salas, Steinorth, Wagner NO VOTE RECORDED: Achadjian, Bigelow, Dahle, Grove, Irwin, Levine, Linder, Mayes, McCarty, Melendez, Nazarian Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119 5/13/16 11:54:22 **** END ****