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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|Policy |Local Government |Vote:|9 - 0 |
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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.
SB 1436
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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.
SB 1436
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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.
SB 1436
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Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081