BILL ANALYSIS Ó
SB 1436
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Date of Hearing: June 15, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
SB
1436 (Bates) - As Amended April 6, 2016
SENATE VOTE: 37-0
SUBJECT: Local agency meetings: local agency executive
compensation: oral report of final action recommendation
SUMMARY: Requires local agency legislative bodies to orally
report in an open meeting specified information regarding
salaries and compensation of local agency executives, before
taking final action on these matters. Specifically, this bill:
1)Requires a legislative body, prior to taking final action, to
orally report a summary of a recommendation for a final action
on the salaries, salary schedules, or compensation paid in the
form of fringe benefits of a local agency executive, as
defined in existing law, during the open meeting in which the
final action is to be taken.
2)Provides that the above provision shall not affect the
public's right under the California Public Records Act (Public
Records Act) to inspect or copy records created or received in
the process of developing the recommendation.
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3)Finds and declares that Section 1 of this bill furthers,
within the meaning of paragraph (7) of subdivision (b) of
Section 3 of Article I of the California Constitution, the
purposes of that constitutional section as it relates to the
right of public access to the meetings of local public bodies
or the writings of local public officials and local agencies,
and declares, pursuant to paragraph (7) of subdivision (b) of
Section 3 of Article I of the California Constitution, that
the Legislature makes the following findings:
This act ensures that more Californians can meaningfully
participate in the meetings of legislative bodies of local
agencies.
4)Provides that no reimbursement is required by this bill
because the only costs that may be incurred by a local agency
or school district under this bill would result from a
legislative mandate that is within the scope of paragraph (7)
of subdivision (b) of Section 3 of Article I of the California
Constitution.
EXISTING LAW:
1)Governs, pursuant to the Meyers-Milias-Brown Act, local
governments' relations with their employees, including
collective bargaining and representation procedures.
2)Generally exempts from collective bargaining and
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representation procedures executive employees who are employed
by, and report directly to, local elected governing boards.
3)Defines "local agency executive" to mean any person employed
by a local agency who is not subject to the
Meyers-Milias-Brown Act or similar provisions, as specified,
and who meets any of the following requirements:
a) The person is the chief executive officer, a deputy
chief executive officer, or an assistant chief executive
officer of the local agency;
b) The person is the head of a department of a local
agency; or,
c) The person's position within the local agency is held by
an employment contract between the local agency and that
person.
4)Requires, pursuant to the Ralph M. Brown Act (Brown Act), all
meetings of a legislative body of a local agency to be open
and public, except that closed sessions may be held under
certain circumstances.
5)Allows local agency legislative bodies to hold a closed
session to consider the appointment, employment, evaluation of
performance, discipline, or dismissal of a public employee,
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but generally prohibits the closed session from including
discussion or action on proposed compensation.
6)Allows local agency legislative bodies to hold a closed
session with the local agency's designated representatives
regarding the salaries, salary schedules, or compensation paid
in the form of fringe benefits of its represented and
unrepresented employees, but prohibits the closed session from
including final action on the proposed compensation of one or
more unrepresented employees.
7)Requires local agency legislative bodies to report publicly,
orally or in writing, any action taken in closed session and
the vote or abstention on that action of every member present,
as specified.
8)Prohibits local agency legislative bodies from calling a
special meeting regarding the salaries, salary schedules, or
compensation paid in the form of fringe benefits of a local
agency executive.
9)Requires, pursuant to the Public Records Act, public records
to be open to inspection during office hours and gives every
person a right to inspect public records, with specific
exceptions.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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COMMENTS:
1)Bill Summary. This bill requires the legislative body of a
local agency, before it takes final action, to orally report a
summary of a recommendation for a final action on the
salaries, salary schedules, or compensation paid in the form
of fringe benefits of a local agency executive during the open
meeting in which the final action is to be taken. Local
agency executive means any person employed by a local agency
who is not subject to the Meyers-Milias-Brown Act or similar
provisions and who meets any of the following requirements:
a) The person is the chief executive officer, a deputy
chief executive officer, or an assistant chief executive
officer of the local agency;
b) The person is the head of a department of a local
agency; or,
c) The person's position within the local agency is held by
an employment contract between the local agency and that
person.
This bill is sponsored by the author.
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2)Author's Statement. According to the author, "There is a
public interest in ensuring that decisions made by legislative
bodies of local agencies regarding local agency executive
compensation are open and transparent. Local agency
executives, such as agency CEOs and city managers, are offered
fringe benefits including health care coverage and pensions in
amounts that can have a significant long-term impact on the
budget and that deserve particular scrutiny by the public.
"The intent of the law for openness and transparency is not
achieved if the final action on executive compensation is
taken without an oral reporting of a summary of the
recommendation for final action. By facilitating open and
public consideration of local agency executive compensation,
this measure furthers the intent of the law."
3)Background. In 2011, in response to the scandal surrounding
the City of Bell, the Legislature passed AB 1344 (Feuer),
Chapter 692, Statutes of 2011. The goal of AB 1344 was to
target practices exploited by some local governments that
inappropriately and extravagantly rewarded elected officials
and top executive officers outside of public view. AB 1344
required a number of good governance measures regarding
compensation practices to provide the public with the
opportunity to be informed of, and comment on, local
compensation-setting practices. Among its many provisions, AB
1344 prohibited a legislative body from calling a special
meeting regarding the salaries, salary schedules or
compensation paid in the form of fringe benefits of a local
agency executive.
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This bill is intended to further the goals of AB 1344 by
ensuring that executive compensation is at least mentioned,
via an oral report of the recommended action, in an open
meeting before a local agency governing board takes final
action on the issue.
4)Proposition 42. Proposition 42 was passed by voters on June
3, 2014, and requires all local governments to comply with the
Public Records Act and the Brown Act and with any subsequent
changes to those Acts. Proposition 42 also eliminated
reimbursement to local agencies for costs of complying with
the Public Records Act and the Brown Act.
This bill contains language that says that the Legislature
finds and declares that Section 1 of the bill furthers the
purpose of the California Constitution as it relates to the
right of public access to the meetings of local public bodies
or the writings of local public officials and local agencies.
Pursuant to paragraph (7) of subdivision (b) of Section 3 of
Article I of the Constitution, the bill also includes a
finding that states, "This act ensures that more Californians
can meaningfully participate in the meetings of legislative
bodies of local agencies."
Section 3 of the bill specifies that no reimbursement for
local agencies to implement the bill's provisions is necessary
because "the only costs that may be incurred by a local agency
or school district?would result from a legislative mandate
that is within the scope of paragraph (7) of subdivision (b)
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of Section 3 of Article I of the California Constitution."
5)Previous Legislation. SB 407 (Hill), Chapter 213, Statutes of
2013, extended limitations on local agencies' employment
contracts to cover additional employees.
AB 1344 (Feuer), Chapter 692, Statutes of 2011, restricted
local government compensation practices and specified
procedures for adopting city charters.
6)Arguments in Support. The California Newspaper Publishers
Association, in support, states, "SB 1436 would promote and
encourage the active discussion of agency executive
compensation in open session, rather than the agency simply
placing an item on a consent calendar where it receives little
attention and there is no public participation. The bill is a
modest change that furthers the intent of the Brown Act, makes
it easier for the public to identify improper levels of
compensation, and builds trust in government."
7)Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
SB 1436
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Support
California Newspaper Publishers Association
Californians Aware
Opposition
None on file
Analysis Prepared by:Angela Mapp / L. GOV. / (916)
319-3958