BILL ANALYSIS
AB 2003
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Date of Hearing: April 28, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2003 (Mendoza) - As Amended: April 20, 2010
SUBJECT : Legislative bodies: contracts and appointments.
SUMMARY : Prohibits any contract or appointment made by a
legislative body of a local agency during the period after the
close of polls on election day and before the new legislative
body members have been sworn in from taking effect until the
incoming legislative body has reviewed and approved that
contract or appointment except in a specified case.
Specifically, this bill :
1)Prohibits any contract entered into or appointment made by a
legislative body during the period after the close of polls on
election day and before a new member of the legislative body
is sworn in from taking effect until the incoming legislative
body has reviewed and approved that contract or appointment.
2)Exempts from this prohibition a contract that has a value of
$20,000 or less and that provides it shall expire by its own
terms on or before the date the incoming legislative body is
sworn in to take office.
3)Defines "local agency" to mean a city, county, school
district, or special district.
EXISTING LAW prohibits an elective officer of a city from
expending or participating in any action that would commit to
expend city funds between the date a recall election involving
that elective officer has been called and the date the
certification of the election results is released.
FISCAL EFFECT : None
COMMENTS :
1)According to the author, there have been various cases
throughout the state where outgoing legislative body members
have entered into contracts or have made appointments during
the time after an election and before the swearing-in of the
incoming board members. The author points specifically to the
AB 2003
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outgoing city council members of the City of Montebello.
There, in November 2009, the city council members were facing
a recall election and chose to hold an emergency meeting to
appoint a new city administrator, purchase six properties, and
purchase new scoreboards that cost $50,000, among other
things. When the new city council was sworn in, they vacated
the appointment of the city administrator.
The author says AB 2003 would ensure board and council members
who are not re-elected do not enter into any contracts or make
appointments that would bind the incoming board
or council from making decisions that best benefit their
communities.
2)The legislative bodies and governing bodies of cities,
counties, school districts, and special districts, upon having
its members elected and sworn-in, take up a number of
administrative items at their meetings. These legislative
bodies regularly throughout the year make appointments and
enter into contracts for goods and services. For example, the
legislative body of a city appoints the city manager and the
governing body of a school district approves contracts for
textbooks.
Under existing law, county boards of supervisors (boards) are
given statutory authorization to contract for special services
on behalf of the county, any county officer or department, or
any district or court in the county. Among the other
contracts boards can enter into are insurance coverage for
those operating foster homes, outside legal counsel, and
services related to workers' compensation claims. In addition
to appointing the county administration officer and county
fire warden, boards also can appoint commissions or committees
of citizens to study problems of general or special interest
to the board.
In the case of cities, existing law provides, among other
things, for the city council to appoint the city manager, to
appoint the city clerk and city treasurer when these offices
are appointive, and contract with outside people, firms, or
corporations for special services and advice in financial,
economic, accounting, engineering, legal, or administrative
matters. City councils also are given statutory authority to
enter into contracts to provide and maintain homes for
veterans.
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Furthermore, numerous provisions in the Public Contract Code
already govern how local agencies award certain contracts for
services, repairs, and the purchase of materials.
3)Article II, Section 19 of the California Constitution requires
the Legislature to provide
for the recall of local government officers. This provision
does not apply to charter cities
and counties whose charters provide for recall. A local officer
is defined as an elective officer of a city, county, school
district, community college district, or special district,
or a judge of a municipal or superior court.
4)The Committee may wish to consider the following issues:
a) Whether AB 2003's language regarding appointments is too
broad because the prohibition would apply not to just the
appointment of a city manager and similarly situated
employees but also appointed citizen commissions.
b) What would happen if an elected position is filled at
the primary election because the candidate ran unopposed,
but the new elected official was not sworn in, pursuant to
law, until January of the following year.
c) Whether AB 2003 would prevent local governments from
dealing with budget shortfalls and other financial-related
matters that involve contracts to sell buildings and
contracts for services.
d) Whether AB 2003 would interfere with, among other
contracts, the ratification of employee contracts, certain
federally and state mandated social service programs, and
the provision of basic services, such as trash pickup, to
residents.
5)Technical Amendments : Staff suggests the code section AB 2003
is adding should be changed to Section 53087.7 because that is
the Division in the Government Code that applies to cities,
counties, and other agencies. The code section AB 2003 is
currently adding is in a Division that applies to only cities
and counties. Staff also suggests combining subdivisions (a)
and (b) for purposes of clarity.
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6)Support Arguments : Supporters say AB 2003 would hold outgoing
local officials accountable by preventing them from binding
the hands of the incoming board.
Opposition Arguments : The opposition, Association of California
Water Agencies, says
AB 2003 would effectively tie the hands of local government
agencies and cut short the terms of all locally elected
officials, thereby paralyzing the works of agencies from
election day until a new term begins. California State
Association of Counties, Urban Counties Caucus, and Regional
Council of Rural Counties argue AB 2003 would have the effect
of freezing county government operations potentially for as
long as six months every other year.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
Association of CA Healthcare Districts
Association of CA Water Agencies
Association of CA School Administrators
CA State Association of Counties
City Clerks Association of CA
City of San Marcos
Coalition for Adequate School Housing
Community College League of CA
Regional Council of Rural Counties
Urban Counties Caucus
Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916)
319-3958