BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 106
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          Date of Hearing:   June 17, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
           SB 106 (Senate Committee on Local Government) - As Introduced:   
                                  January 27, 2009

           SENATE VOTE  :   33-0
           
          SUBJECT  :   Local agencies: ethics training

           SUMMARY  : Makes changes and clarifications to the list of local  
          agencies whose officials must receive ethics training.   
          Specifically,  this bill :   

          1)Adds community college districts, county boards of education,  
            and school districts to the definition of local agencies,  
            whose legislative body members, elected officials, or locally  
            designated employees must receive ethics training if that  
            agency provides any compensation or reimbursement to a member  
            of the agency's legislative body.

          2)Requires that each school district official in local agency  
            service as of January 1, 2010, except for those whose term of  
            office ends before January 1, 2011, receive ethics training  
            before January 1, 2011.

          3)Requires, commencing January 1, 2011, that each school  
            district official receive ethics training at least once every  
            two years.

           EXISTING LAW  : 

          1)Requires any member of a local agency legislative body or any  
            elected official of a local agency who receives compensation,  
            and any designated local agency employee to receive two hours  
            of specified ethics training every two years. 

          2)Defines local agency to include a city, county, city and  
            county, charter city, charter county, charter city and county,  
            or special district.

          3)Requires that the ethics training cover ethics principles and  
            relevant ethics laws.  









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          4)Allows local agencies or local government associations to  
            develop and offer ethics training courses (in person or  
            online) or self-study materials, in consultation with the  
            Attorney General and the Fair Political Practices Commission.   


          5)Requires training providers to give participants proof of  
            participation; also requires a local agency to annually inform  
            its local officials about available ethics training, and  
            maintain records about participation in the training.

           FISCAL EFFECT  :   This bill is keyed non-fiscal; however, the  
          bill has been referred to the Assembly Appropriations Committee  
          for analysis of potential fiscal effects.  

           COMMENTS  : Ethics training currently required for local agency  
          officials includes, but is not limited to, training in the area  
          of laws related to personal financial gain by public servants,  
          the prohibition of bribery, conflict-of-interest, the claiming  
          of perquisites of office, acceptance of gifts, travel  
          restrictions, prohibitions against the use of public resources  
          for personal or political purposes, prohibitions against, gifts  
          of public funds, mass mailing restrictions, prohibitions against  
          acceptance of free or discounted transportation by  
          transportation companies, government transparency, financial  
          interest disclosure requirements, open government, fair  
          processes, common law bias prohibitions, due process  
          requirements, incompatible offices, competitive bidding  
          requirements for public contracts, and disqualification from  
          participation in decisions affecting family members.  However,  
          the requirement for training in these areas does not explicitly  
          apply to local agency officials in community college districts,  
          county boards of education, or school districts.  This measure  
          clarifies existing law to ensure that these provisions apply to  
          legislative body members, elected officials, and locally  
          designated employees in those local agencies.

          According to the Senate Committee on Local Government, the  
          author of this bill, "The public values honest government. And  
          good government relies on the support of the governed.   
          Government leaders earn their constituents' trust by acting in  
          the public interest and behaving with integrity.  But the  
          public's trust in our representative democracy is fragile; even  
          small ethical lapses can swiftly undermine confidence in public  
          institutions."  Continuing, the author states that, "Without  








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          ethics training, school officials may not be fully aware of  
          their responsibilities under the state's ethics laws."

          In 2007, the Bakersfield Californian conducted a survey of a  
          number of "school districts in Kern County to determine how  
          elected trustees were filling out their state-mandated financial  
          disclosure forms."  The newspaper was prompted to conduct this  
          survey as a result of a controversy that developed over a  
          Bakersfield City Councilmember's failure to make a full  
          financial disclosure, as required by state law, during his  
          tenure on the City Council as well as during 14 years of service  
          on a local school district governing board.  The survey found  
          "that many school districts and elected trustees are lax in  
          making the mandated disclosures. After all, no one challenged  
          [the Councilmember's] filings until he was elected to the  
          council, where his actions received more public scrutiny.  Those  
          elected or appointed to serve on less visible boards and  
          commissions may ignore the many laws that dictate how government  
          officials must behave, or simply are ignorant of them."  The  
          Californian also concluded that, "School trustees make decisions  
          that affect the educations of our children and the spending of  
          millions of our tax dollars. The risk of self-serving abuse of  
          power is just as great on a school board as it is on any local  
          government board or commission."

          In support of this bill, it can be argued that local educational  
          agency (LEA) officials should be held to the same standards as  
          other local government officials.  Just as LEAs must follow open  
          meeting laws, the Public Records Act, and the Political Reform  
          Act, so should they also be held to the same ethics training  
          requirements as in cities, counties, and special districts.  In  
          the same vein, LEAs are defined as local governmental entities  
          for many purposes in state law (e.g., the reimbursement of state  
          mandated local costs), so it again follows that ethics training  
          requirements on LEA officials should parallel those for other  
          local agencies.  For purposes of parity and consistency, LEAs  
          should be held accountable to the same ethics training  
          requirement as other local governments.

          Arguments in opposition would focus on the issue of local  
          control.  The governing boards of many LEAs currently require  
          participation, or have board members and other officials that  
          voluntarily participate, in ethics training.  Since LEAs are  
          autonomous, local governmental entities, this bill can be seen  
          as an attempt by the state to assume control over a traditional  








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          responsibility of local government.  However, the state's  
          interest in public education, both in terms of programmatic  
          influence and the provision of resources, has increased  
          dramatically over the last thirty-five years; this interest can  
          be better protected by uniform requirements for ethics training  
          across all educational and non-educational local agencies.

          It should be noted that this bill proposes to extend the  
          existing requirement for ethics training to county boards of  
          education, as well as to community college districts and school  
          districts; the bill does not extend this requirement to county  
          offices of education or county superintendents of schools.  Any  
          policy argument that can be made to support ethics training for  
          governing board members and other local agency officials in  
          community college districts, county boards of education and  
          school districts, can also be made to support the application of  
          this requirement to county offices of education (COEs) and the  
          county superintendents of schools that administer those COEs;  
          there is no policy argument for excluding COEs and county  
          superintendents from the ethics training requirement once that  
          requirement is extended to other LEAs.  In addition, the failure  
          to extend this requirement to COEs also creates an inequity in  
          that a small number of county superintendents may be required to  
          undergo ethics training, while others will not.  Because of  
          historical differences across counties, a small number of COEs  
          are administered by a county superintendent of schools that is  
          appointed by the county board of education or administered by a  
          county superintendent that simultaneously serves as the  
          superintendent of a school district (e.g., a county with a  
          single school district).  Since this bill extends the training  
          requirement to designated employees of a county board of  
          education or a school district, these county superintendents may  
          be required to receive ethics training; at the same time,  
          elected county superintendents who do not also serve as district  
          superintendents would not be required to receive training.

          In order to further expand the benefits generated by this bill  
          and eliminate the inequity that exists in current law, the  
          Committee could also consider extending the requirement for  
          ethics training to COEs and county superintendents of schools.   
          There are, however, two problems that would arise from this  
          amendment.  First, the extension of this requirement to COEs and  
          county superintendents of schools would create a clear  
          reimbursable state mandated local cost, even though the bill as  
          currently written is keyed non-fiscal.  Second, this amendment  








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          would require additional technical changes to current law to  
          authorize a non-governing board elected official (e.g., a county  
          superintendent of schools) to designate other local agency  
          officials to receive ethics training.  Neither of these issues  
          precludes an amendment that extends the requirement for ethics  
          training to COEs and county superintendents of schools; however,  
          Committee staff recommends that these issues be considered at a  
          later date by the Committee, along with the possibility of  
          including this additional change in future legislation.

          Committee Amendments:  The bill suffers from a technical  
          oversight in that the transitional timing proposed in this bill  
          to bring current local agency officials into compliance with the  
          ethics training requirement is only applied to school districts.  
           Committee staff recommends that this transitional timing also  
          be applied to local agency officials in community college  
          districts and county boards of education in order to conform  
          with other sections of this bill.

          Previous legislation: SB 76 (Florez), held in Assembly  
          Appropriations in 2007, was substantially similar to this bill.   
          AB 1234 (Salinas), Chapter 700, Statutes of 2005, established  
          existing law and clarified the rules pertaining to compensation  
          to members of a local government legislative body for attendance  
          at authorized meetings and conferences by requiring the  
          establishment of guidelines for reimbursement of members of a  
          local government legislative body for actual and necessary  
          expenses incurred in the performance of official duties. This  
          bill also established provisions for ethics training for local  
          government officials and designated employees.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California School Boards Association
          Los Angeles County District Attorney's Office
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087 








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