BILL NUMBER: SB 46 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 7, 2011
INTRODUCED BY Senator Correa
( Coauthor: Assembly Member
Smyth )
DECEMBER 9, 2010
An act to add Section 53060.2 to the Government Code,
relating to local government. An act to add and repeal
Article 2.5 (commencing with Section 1050) of Chapter 1 of Division
4 of Title 1 of the Government Code, relating to local government,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 46, as amended, Correa. Local government: compensation
disclosure.
Existing law provides for the compensation of local government
officers and employees, as specified.
This bill would require filers, as defined, to annually file a
compensation disclosure form, as specified. This bill would require
the Secretary of State to develop the form, which would provide for
the disclosure of, among other things, salaries and stipends,
automobile and equipment allowances, and incentive and bonus
payments. This bill would also require a county, city, city and
county, school district, special district, or joint powers agency
that maintains an Internet Web site to post the information contained
on the filed form on that Internet Web site, as specified. The bill
would authorize a district attorney or any interested person to
commence an action by mandamus to enforce the provisions of the bill,
as specified. The duties imposed on local departmental agencies by
the bill would create a state-mandated local program.
This bill would, until January 1, 2019, require each public
official, defined to mean a public official required to file a
statement of economic interest pursuant to the Political Reform Act
of 1974, to annually file a compensation disclosure form that
provides compensation information for the preceding calendar year, as
specified. The bill would specify that compensation disclosure forms
are open to public inspection, as specified.
The bill would, until January 1, 2019, require each public agency,
as defined, to post on that public agency's Internet Web site the
information contained on the compensation disclosure form filed by a
public official, and the written policy for the reimbursement of
actual and necessary expenses.
The bill would require the Controller, on or before October 1,
2011, to adopt regulations for the implementation of these
requirements, including the format of the compensation disclosure
form. The bill would also require the Controller, on or before July
1, 2012, to recommend to the Governor and the Legislature methods for
compiling the information contained on public officials'
compensation disclosure forms in one or more publicly accessible
databases, including specific proposals for establishment, operation,
oversight, and funding, as specified.
The bill would also authorize a district attorney or any
interested person to commence an action by mandamus to enforce the
provision of the bill, as specified.
The duties imposed on local agencies by the bill would create a
state-mandated local program.
The bill would express a legislative finding and declaration that
it addresses the right of access by the people of the state to
information concerning the conduct of the people's business.
The bill would express a legislative finding and declaration that,
to ensure the statewide integrity of local government, disclosure of
compensation paid filers is an issue of statewide concern and not a
municipal affair and that, therefore, all cities, including charter
cities, would be subject to the provisions of the bill.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 2.5 (commencing with Section
1050) is added to Chapter 1 of Division 4 of Title 1 of the
Government Code , to read:
Article 2.5. DISCLOSURE OF PUBLIC OFFICIALS' COMPENSATION
1050. As used in this section, the following terms have the
following meanings:
(a) "City" means a general law city or a charter city.
(b) "Local agency" means any county, city, special district, or
school district, or any other local or regional political
subdivision, including a joint powers agency formed pursuant to the
Joint Exercise of Powers Act (Chapter 5 (commencing with Section
6500) of Division 7).
(c) "Public agency" means any state agency or local agency.
(d) "Public official" means any person, except a candidate for
office, who is required to file a statement of economic interests
pursuant to Section 87200.
(e) "School district" means a school district, community college
district, county board of education, or county superintendent of
schools.
(f) "Special district" means any agency of the state established
for the local performance of governmental or proprietary functions
within limited boundaries.
(g) "State agency" means every state office, department, division,
bureau, board, or commission, or the Legislature.
1051. (a) Each public official shall annually file a compensation
disclosure form that provides compensation information for the
preceding calendar year. A public official shall file the
compensation disclosure form with the same office that receives his
or her statement of economic interest pursuant to Section 87500. The
annual deadline for filing a compensation disclosure form shall be
the same as the deadline for filing annual statements of economic
interest, pursuant to Sections 87203 and 87302.
(b) Nothing in this article shall be construed to prevent a public
agency from adopting more restrictive procedures and standards
relating to the disclosure of compensation information.
(c) If a public agency maintains an Internet Web site, it shall
post the following information on its Internet Web site:
(1) The information contained on the compensation disclosure form
filed by a public official.
(2) The written policy for the reimbursement of actual and
necessary expenses adopted pursuant to Section 53232.2, if
applicable.
1052. As an alternative to Section 1051, if a public agency
maintains an Internet Web site, it may compile the information
required by Section 1053 for each of its public officials and post
that information on its Internet Web site. The information for each
of those public officials shall be available upon request pursuant to
Section 1055.
1053. (a) On or before October 1, 2011, the Controller shall
adopt regulations pursuant to Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 for the implementation of
this article, including the format of the compensation disclosure
form.
(b) The compensation disclosure form shall provide for the
disclosure of each of the following:
(1) The public agency's cost for the public official's annual
salary or stipend.
(2) The public agency's cost to provide benefits to the public
official, including but not limited to, deferred compensation or
defined benefit plans.
(3) The public agency's reimbursement payments to the public
official for actual and necessary expenses incurred on behalf of the
local agency in the performance of official duties.
(4) The public agency's cost to provide the public official with
any other monetary or nonmonetary perquisites of office.
(5) The date on which the public official completed the training
required by Section 8956, Article 12 (commencing with Section 11146)
of Chapter 1 of Part 1 of Division 3 of Title 2, or Article 2.4
(commencing with Section 53234) of Chapter 2 of Part 1 of Division 2
of Title 5, if applicable.
1054. The information disclosed pursuant to Section 1053 shall
also include any amounts received by a public official as a result of
that person's membership with, or employment by, any other public
agency if the membership of the other public agency's governing body
is sufficient in number to constitute a quorum or a majority of the
governing body membership of the first public agency.
1055. Every compensation disclosure form filed pursuant to this
article shall be open for public inspection and reproduction during
regular business hours, commencing as soon as practicable, but not
later than the second business day following the day on which it was
received. No conditions shall be imposed upon a person desiring to
inspect or reproduce a compensation disclosure form filed pursuant to
this article, nor shall any information or identification be
required from the person. Copies shall be provided at a charge not to
exceed ten cents ($0.10) per page. In addition, a retrieval fee not
to exceed five dollars ($5) per request may be charged for copies of
reports and statements that are more than five years old. A request
for more than one compensation disclosure form at the same time shall
be considered a single request.
1056. (a) The district attorney or any interested person may
commence an action by mandamus or injunction to compel a public
official or public agency to comply with the requirements of this
article. Nothing in this article shall be construed to prevent a
public official or public agency from curing or correcting an action
challenged pursuant to this article.
(b) Prior to any action being commenced pursuant to this article,
the district attorney or interested person shall make a demand of the
public official or public agency to cure or correct the action
alleged to have been taken in violation of this article. The demand
shall be in writing and clearly describe the nature of the alleged
violation.
(c) Within 30 days of receipt of the demand, the public official
or public agency shall cure or correct the alleged violation and
notify the demanding party in writing of the decision to cure or
correct the alleged violation or inform the demanding party in
writing of its decision not to cure or correct the alleged violation.
(d) Within 15 days of receipt of the written notice of the
decision to cure or correct an alleged violation, or not to cure or
correct, or within 15 days of the expiration of the 30-day period to
cure or correct, whichever is earlier, the demanding party shall be
required to commence the action pursuant to this article or
thereafter be barred from commencing the action.
(e) If the public official or public agency takes no action within
the 30-day period, the inaction shall be deemed a decision not to
cure or correct the alleged violation, and the 15-day period to
commence the action described in subdivision (d) shall commence to
run the day after the 30-day period to cure or correct expires.
(f) During any action seeking a judicial determination pursuant to
this article if the court determines, pursuant to a showing that an
alleged violation has been cured or corrected by a subsequent action,
the action filed pursuant to this article shall be dismissed with
prejudice.
1057. (a) On or before July 1, 2012, the Controller shall
recommend to the Governor and the Legislature methods for compiling
the information contained on public officials' compensation
disclosure forms in one or more publicly accessible databases. These
recommendations shall include specific proposals for establishment,
operation, oversight, and funding.
(b) On or before January 1, 2018, the Bureau of State Audits shall
report to the Governor and the Legislature regarding the
implementation and effectiveness of this article.
1058. This article shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 2. The Legislature finds and declares that
the fiscal integrity and stability of local governmental agencies in
this state, including charter cities, directly affects the long-term
well-being of all the residents of this state. The public perception
of efficient, transparent, and accountable governmental structures in
public agencies in California affects the likelihood of businesses
locating to or remaining in the state. Therefore, the Legislature
finds and declares that to ensure the statewide integrity of state
agencies and local agencies, the disclosure of compensation paid to
public officials is an issue of statewide concern and not a municipal
affair, as that term is used in Section 5 of Article XI of the
California Constitution. Therefore, this act shall apply to all
cities, including charter cities.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
Maintaining the public's trust in the efficiency, transparency,
and accountability of their public agencies is essential to the
operation of governments that protect the public peace, health, and
safety of all Californians. It is essential that measures which
protect the public trust take effect immediately.
SECTION 1. Section 53060.2 is added to the
Government Code, to read:
53060.2. (a) For purposes of this section, the following terms
have the following meanings:
(1) "City" means a general law city or a charter city.
(2) "Filer" means both of the following:
(A) An elected or appointed officer of a county, city, city and
county, school district, special district, or joint powers agency
formed pursuant to the Joint Exercise of Powers Act (Chapter 5
(commencing with Section 6500) of Division 7 of Title 1), who is
required to file a statement of economic interests pursuant to
Section 87200.
(B) Any person who is a superintendent, deputy superintendent,
assistant superintendent, associate superintendent, community college
president, community college vice president, community college
deputy vice president, general manager, city manager, county
administrator, other similar chief administrative officer, or chief
executive officer of a local agency who is required to file a
statement of economic interests pursuant to Chapter 7 (commencing
with Section 87100) of Title 9.
(3) "School district" means a school district, community college
district, county board of education, and county superintendent of
schools.
(b) Each filer shall annually file a compensation disclosure form
that provides compensation information for the preceding year,
pursuant to this section. The annual filing deadline for a
compensation disclosure form shall be the same as the filing deadline
established for annual statements of economic interest, pursuant to
Sections 87203 and 87302.
(c) (1) A filer shall file his or her compensation disclosure form
with the same office of the local agency that receives that filer's
statement of economic interest pursuant to Section 87500.
(2) As an alternative to paragraph (1), if a county, city, city
and county, school district, special district, or joint powers agency
maintains an Internet Web site, it may compile the information
required by subdivision (d) for each filer and post that information
on the Internet Web site. The information for each filer shall be
available upon request pursuant to subdivision (f).
(3) If the county, city, city and county, school district, special
district, or joint powers agency maintains an Internet Web site, it
shall post the following information on that Internet Web site:
(A) The information contained on the filed compensation disclosure
form.
(B) The written policy for the reimbursement of actual and
necessary expenses adopted pursuant to Section 53232.2, if
applicable.
(d) The Secretary of State shall develop the compensation
disclosure form. When developing the compensation disclosure form,
the Secretary of State shall review and consider whether the amounts
listed in the Internal Revenue Service Form W-2 for the purposes of
calculating Medicare taxes are sufficient or, in the case of a
contractor, the amounts listed in the Internal Revenue Services Form
1099. If the filer is a contractor, the compensation disclosure form
shall require disclosure of the contract's compensation provisions.
The compensation disclosure form shall provide for the disclosure of
each of the following:
(1) Annual salary or stipend.
(2) Local agency payments to the filer's deferred compensation or
defined benefit plans.
(3) Automobile and equipment allowances.
(4) Supplemental incentive and bonus payments.
(5) Local agency payments to the filer that are in excess of the
standard benefits that the local agency offers for all other
employees.
(e) The information disclosed pursuant to subdivision (d) shall
also include any amounts received by a filer as a result of
membership with, or employment by, any local agency, municipal
corporation, public benefit corporation, or community redevelopment
agency, if the membership of the filer's governing body is sufficient
in number to constitute a quorum or a majority of the governing body
membership of the local agency, municipal corporation, public
benefit corporation, or community redevelopment agency.
(f) Every compensation disclosure form filed pursuant to this
section shall be open for public inspection and reproduction during
regular business hours, commencing as soon as practicable, but not
later than the second business day following the day on which it was
received. No conditions shall be imposed upon a person desiring to
inspect or reproduce a compensation disclosure form filed pursuant to
this section, nor shall any information or identification be
required from the person. Copies shall be provided at a charge not to
exceed ten cents ($0.10) per page. In addition, a retrieval fee not
to exceed five dollars ($5) per request may be charged for copies of
reports and statements that are more than five years old. A request
for more than one compensation disclosure form at the same time shall
be considered a single request.
(g) (1) The district attorney or any interested person may
commence an action by mandamus or injunction to compel a filer,
county, city, city and county, school district, special district, or
joint powers agency to comply with the requirements of this section.
Nothing in this section shall be construed to prevent a filer,
county, city, city and county, school district, special district, or
joint powers agency from curing or correcting an action challenged
pursuant to this section.
(2) Prior to any action being commenced pursuant to this
subdivision, the district attorney or interested person shall make a
demand of the filer, county, city, city and county, school district,
special district, or joint powers agency to cure or correct the
action alleged to have been taken in violation of this section. The
demand shall be in writing and clearly describe the nature of the
alleged violation.
(3) Within 30 days of receipt of the demand, the filer, county,
city, city and county, school district, special district, or joint
powers agency shall cure or correct the alleged violation and notify
the demanding party in writing of the decision to cure or correct the
alleged violation or inform the demanding party in writing of its
decision not to cure or correct the alleged violation.
(4) Within 15 days of receipt of the written notice of the
decision to cure or correct an alleged violation, or not to cure or
correct, or within 15 days of the expiration of the 30-day period to
cure or correct, whichever is earlier, the demanding party shall be
required to commence the action pursuant to this subdivision or
thereafter be barred from commencing the action.
(5) If the filer, county, city, city and county, school district,
special district, or joint powers agency takes no action within the
30-day period, the inaction shall be deemed a decision not to cure or
correct the alleged violation, and the 15-day period to commence the
action described in paragraph (1) shall commence to run the day
after the 30-day period to cure or correct expires.
(6) During any action seeking a judicial determination pursuant to
this subdivision if the court determines, pursuant to a showing that
an alleged violation has been cured or corrected by a subsequent
action, the action filed pursuant to this subdivision shall be
dismissed with prejudice.
SEC. 2. In enacting this act, the Legislature
finds and declares that the disclosure of compensation paid to filers
furthers the intent and purposes of Section 3 of Article I of the
California Constitution which declares that the people have the right
of access to information concerning the conduct of the people's
business.
SEC. 3. The Legislature finds and declares that
the fiscal integrity and stability of local governmental agencies in
this state, including charter cities, has a direct impact on the
long-term well-being of all the residents of this state. The
likelihood of businesses locating to or staying in the state is
affected by the perception of a functioning, transparent, and
practical governmental structure in the local governmental bodies in
California. Therefore, the Legislature finds and declares that to
ensure the statewide integrity of local government, the disclosure of
compensation paid to filers is an issue of statewide concern and not
a municipal affair, as that term is used in Section 5 of Article XI
of the California Constitution. Therefore, this act shall apply to
all cities, including charter cities.
SEC. 4. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.