BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 148
                                                                  Page  1

          Date of Hearing:  April 27, 2011

           REVISED  
                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                     AB 148 (Smyth) - As Amended:  April 14, 2011
           
          SUBJECT  :  Local government: ethics training: disclosure.

           SUMMARY  :  Requires the Controller to withhold any funds to which 
          a local agency is entitled to until the local agency posts its 
          adopted written attendance compensation policy or adopted 
          written reimbursement policy on the local agency's Internet Web 
          site, if any, and submits a copy of the written policy to the 
          Controller.  Specifically,  this bill  :

          1)Requires the Controller to withhold any funds to which a local 
            agency is entitled to until the local agency posts its adopted 
            written attendance compensation policy or adopted written 
            reimbursement policy on the local agency's Internet Web site, 
            if any, and submits a copy of the written policy to the 
            Controller.

          2)Requires a local agency to post the ethics training records of 
            those members of the local agency who are elected on the local 
            agency's Internet Web site, if any, and to submit a copy to 
            the Controller within 90 days of receiving the records.

          3)Adds compensation-setting guidelines as established by 
            organizations, including, but not limited to, the California 
            State Association of Counties, the League of California 
            Cities, the California Special Districts Association, the 
            California City Management Foundation, or the local agency, to 
            the list of ethics law required to be covered during a local 
            agency's mandatory ethics course.

           EXISTING LAW  :

          1)Requires a local agency, if it compensates members of its 
            legislative body for attending gatherings not involving the 
            meeting of legislative body, an advisory body, or a conference 
            or organized educational activity, to adopt in a public 
            meeting a written policy specifying the other types of 
            occasions that constitute the performance of official duties 
            for which a member of the legislative body may receive 








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            compensation.

          2)Requires, if a local agency reimburses members of its 
            legislative body for actual and necessary expenses incurred in 
            the performance of official duties, the governing body of the 
            local agency to adopt at a public meeting a written policy 
            specifying the occurrences that qualify a member of the 
            legislative body to receive reimbursement of expenses relating 
            to travel, meals, lodging, and other actual and necessary 
            expenses.

          3)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. 

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

          5)Defines local agency official to include the following:

             a)   Any member of a local agency legislative body or any 
               elected local agency official who receives any type of 
               compensation, salary, or stipend or reimbursement for 
               actual and necessary expenses incurred in the performance 
               of official duties; and,

             b)   Any employee designated by a local agency governing body 
               to receive the ethics training.

          6)Requires the ethics training cover general ethics principles 
            and relevant ethics laws.

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

          8)Requires training providers to give participants proof of 
            participation.

          9)Requires a local agency to annually inform its local officials 
            about available ethics training.








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          10)Requires a local agency to maintain public records of the 
            ethics training for at least five years and to detail the 
            ethics training completed by its local agency officials by 
            indicating the following:

             a)   The dates local officials satisfied the requirements of 
               ethics training; and,

             b)   The entity that provided the training.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

          1)Current law on local government compensation and ethics 
            training was added in 2006 with the intent of boosting public 
            confidence by instituting ethics training, documenting 
            reimbursement, and clarifying when compensation is 
            appropriate.  These provisions were drafted based on 
            suggestions from the State Auditor's report on Independent 
            Special Water Districts, and closely followed the guidelines 
            established in the Institute for Local Self Government's 
            publication "Of Cookie Jars And Fishbowls: A Public Official's 
            Guide To Use Of Public Resources" and the Association of 
            California Water Agencies "Guidelines of Conduct: A Primer for 
            Public Water Agency Officials."

          2)According to the author, the City of Bell scandal highlights 
            the need to strengthen existing laws on ethics training, 
            compensation policies, and reimbursement policies.  The 
            public, the author says, should have better access to records 
            on these policies to encourage public participation and 
            oversight, which in turn could help prevent another city 
            repeating the City of Bell's example of unethical and bad 
            faith governance.  The author says the solution is to amend 
            existing law to require all local government agencies to post 
            on their Internet Web site their compensation policy, 
            reimbursement policy, and ethics training records and to 
            submit copies of these policies to the Controller.

          3)AB 148 also requires the local agency to forward to the 
            Controller copies of ethics training records and copies of its 
            compensation policies.  If the local agency does not forward 
            the compensation policies, the Controller would have new 








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            authority to withhold any outstanding funds the Controller has 
            in his or her possession.  The Committee may wish to consider 
            whether giving the Controller the authority to withhold local 
            government's funds is a disproportionate punishment.

          4)Support arguments:  Supporters might argue the more 
            transparency in local government the better the public is 
            served and having ethics training certificates and travel 
            reimbursement and attendance policies posted on a local 
            agency's Internet Web site and sent to the Controller for 
            review will provide more access to constituents and the state 
            on local policies. 

          Opposition arguments:  Opposition might argue requiring local 
            agencies to post the proof 
          of ethics training completion is unnecessary because adequate 
            records already are maintained by the local agency and are 
            deemed public records available for inspection, providing an 
            acceptable level of accountability and transparency to 
            constituents and state officials.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA Special Districts Association

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Jennifer Klein Baldwin / L. GOV. / 
          (916) 319-3958