BILL ANALYSIS
AB 579
Page 1
Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 579 (Huber) - As Introduced: February 25, 2009
Policy Committee: Business and
Professions Vote: 10 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill eliminates the current salary authority for paid state
boards and commissions and establishes new requirements for
setting the salaries for boards and commissions. Specifically,
this bill:
1)Requires the State Auditor to audit and make a finding, during
each even-numbered year, regarding the workload of each state
board or commission comprised of members who earn an annual
salary for their service.
2)Requires the governor to use the workload audits to establish,
by January 1 of each odd numbered year, the annual salaries of
all affected board members and commissioners.
3)Prohibits the governor from modifying the salaries of the Fair
Political Practices Commission before September 1, 2012.
4)Places the following conditions on the annual salaries of
affected boards and commissions:
a) An annual salary may not exceed the median annual salary
of state employees.
b) An annual salary must be proportional to the type and
amount of work required to fulfill the duties of the board
of commission.
c) If the state auditor fails to conduct a workload audit
or the governor fails to establish an annual salary, the
affected board and commission members will only be
AB 579
Page 2
compensated in the following year for per diem, travel
reimbursement, and attendance costs.
FISCAL EFFECT
1)Workload associated with the State Auditor conducting audits
of all of the affected boards and commissions would likely
cost in excess of $300,000 every even numbered year.
2)Assuming the median annual salary for state employees is in
the range of $70,000 and the average salary for commissioners
and board members is in the range of $100,000, this
legislation could save the state about $4.8 million per year
once the changes are implemented.
3)Unknown, potentially significant GF costs for both increased
or prolonged incarceration and a reduction in public safety,
if the reduction in salaries leaves these boards without
members and the administrative responsibilities of the boards
are not carried out. For example, the Board of Prison
Hearings (BPH) is California's parole board and, among other
things, establishes terms and conditions for all persons
released on parole in California. If BPH members resign from
the board due to the reduced salary level, the state's parole
process would be disrupted, resulting in longer prison stays
for individuals who would otherwise be released on parole, in
addition to increased litigation.
COMMENTS
1)Purpose . The author is concerned that the state does not have
a mechanism in place to examine the work performed by
individuals appointed to boards and commissions to ensure that
these salaried appointees are paid salaries commensurate with
their duties. The author states, "To ensure that state boards
and commissions are neither performing superfluous tasks nor
providing excessive salaries with taxpayer funds, the state
must develop a process to provide an independent, non-partisan
assessment of their activities and the salaries paid to
appointees."
2)Affected Boards . Among the boards and commissions affected by
this legislation are the following:
Agricultural Labor Relations Board
AB 579
Page 3
Air Resources Board
Alcohol and Beverage Control Appeals Board
California Integrated Waste Management Board
California Medical Assistance Commission
Central Valley Flood Protection Board
Fair Political Practices Commission
Occupational Health and Safety Administration Appeals Board
Board of Prison Hearings
Public Employment Relations Board
Public Utilities Commission
State Energy Resources Conservation and Development Commission
State Personnel Board
State Water Resources Control Board
Unemployment Insurance Appeals Board
Workers' Compensation Appeals Board
3)Related Legislation . AB 1501 (V. Manual Perez) requires the
salary of a board member making $100,000 or more to be
prorated to actual hours worked in any given month where the
board member does not work full time, as specified. That bill
is currently in this committee awaiting hearing.
AB 2539 (Strickland) of 2008 would have prohibited a member of
a state board or commission from receiving any salary in 2007
or later, if the position of the member on the state board or
commission received or would receive a salary totaling at
least $100,000 per year, and the members of the state board or
commission are required to meet less than three times per
month. AB 2539 died in the Assembly Business and Professions
Committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081