BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1436  


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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1436  
          (Bates) - As Amended April 6, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires a local agency's legislative body, prior to  
          taking final action, to orally report in an open meeting 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. This bill further provides  
          that the above provision will 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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          FISCAL EFFECT:


          There are no reimbursable local mandate costs because any costs  
          incurred by local agencies would fall under Proposition 42. (See  
          Comment #3 below.)


          COMMENTS:


          1)Purpose. 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."
          


          2)Background.  In 2011, in response to the scandal surrounding  
            the City of Bell, the Legislature passed AB 1344 (Feuer),  
            Chapter 692, Statutes of 2011.  AB 1344 requires 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 prohibits 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.





          3)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.
          


          4)Prior Legislation.  



             a)   SB 407 (Hill), Chapter 213, Statutes of 2013, extends  
               limitations on local agencies' employment contracts to  
               cover additional employees.



             b)   AB 1344 (Feuer), Chapter 692, Statutes of 2011,  
               restricts local government compensation practices and  
               specified procedures for adopting city charters.
          












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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081