BILL NUMBER: SB 46	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 2, 2011
	AMENDED IN SENATE  MAY 31, 2011
	AMENDED IN SENATE  APRIL 6, 2011
	AMENDED IN SENATE  MARCH 7, 2011

INTRODUCED BY   Senator Correa
   (Coauthor: Assembly Member Smyth)

                        DECEMBER 9, 2010

   An act to add and repeal Sections 87202.5 and 87302.2 of the
Government Code, relating to the Political Reform Act of 1974  ,
and declaring the urgency thereof, to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 46, as amended, Correa. Public officials: compensation
disclosure.
   Existing provisions of the Political Reform Act of 1974 require
certain persons employed by agencies to file annually a written
statement of the economic interests they possess during specified
periods. The act requires that state agencies promulgate a conflict
of interest code that must contain, among other topics, provisions
that require designated employees to file statements disclosing
reportable investments, business positions, interests in real
property, and income. The act requires that every report and
statement filed pursuant to the act is a public record and is open to
public inspection.
   This bill would, commencing on January 1, 2013, and continuing
until January 1, 2019, require every designated employee and other
person, except a candidate for public office, who is required to file
a statement of economic interests to include, as a part of that
filing, a compensation disclosure form that provides compensation
information for the preceding calendar year, as specified.
   The bill would, commencing January 1, 2013  ,  and
continuing until January 1, 2019, require each agency to post on that
agency's Internet Web site the information contained on the
compensation disclosure form filed by a person required to file a
statement of economic  interest   interests
 or a designated employee, and the written policy for the
reimbursement of actual and necessary expenses.
   The bill would require the Controller, on or before March 1, 2013,
to adopt emergency 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, 2013, to recommend to the Governor and the Legislature methods for
compiling the information contained on a person's or a designated
employee's compensation disclosure forms in one or more publicly
accessible databases, including specific proposals for establishment,
operation, oversight, and funding, as specified.
   This bill would authorize the Bureau of State Audits to report to
the Governor and the Legislature regarding the implementation and
effectiveness of this bill.
   The bill would also authorize a district attorney or any
interested person to commence an action by mandamus or injunction to
enforce the provisions of the bill, as specified.
   Existing provisions of the act make a violation of the act subject
to administrative, civil, and criminal penalties.
   This bill would impose a state-mandated local program by imposing
those criminal penalties on persons who violate the provisions of the
bill.
   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 to public officials and designated employees 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 no reimbursement is required by this
act for a specified reason.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.

   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote: 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.  Section 87202.5 is added to the Government Code, to
read:
   87202.5.  (a) (1) Every person, except a candidate for public
office, who is required to file a statement of economic interests
pursuant to Section 87202, shall, as a part of that filing, include a
compensation disclosure form that provides compensation information
for the preceding calendar year.
   (2) Nothing in this section shall be construed to prevent an
agency from adopting more extensive procedures and standards relating
to the disclosure of compensation information by persons employed by
the agency.
   (3) If an agency maintains an Internet Web site, it shall post the
following information on its Internet Web site:
   (A) The information contained on the compensation disclosure form
filed by a person pursuant to this section.
   (B) The written policy for the reimbursement of actual and
necessary expenses adopted pursuant to Section 53232.2, if
applicable.
   (b) As an alternative to subdivision (a), if an agency maintains
an Internet Web site, it may compile the information required by
subdivision (c) for each person employed by the agency who is
required to a file a statement of economic interests pursuant to
Section 87202 and post that information on its Internet Web site. The
information for each of those persons shall be available upon
request pursuant to Section 81008.
   (c) (1) On or before March 1, 2013, the Controller shall adopt
emergency regulations pursuant to Section 11346.1 for the
implementation of this section, including the format of the
compensation disclosure form.
   (2) The compensation disclosure form shall provide for the
disclosure of each of the following:
   (A) The agency's cost for a person's annual salary or stipend.
   (B) The agency's cost to provide benefits to a person, including,
but not limited to, deferred compensation or defined benefit plans.
   (C) The agency's reimbursement payments to a person for actual and
necessary expenses incurred on behalf of the local agency in the
performance of official duties.
   (D) The agency's cost to provide a person with any other monetary
or nonmonetary perquisites of office.
   (E) The date on which a person 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.
   (3) The information disclosed pursuant to this subdivision shall
also include any amounts received by a person as a result of that
person's membership with, or employment by, any other entity if the
governing body of that entity and the governing body of the agency
that the person is a member of, or employed by, share membership.
   (d) (1) The district attorney or any interested person may
commence an action by mandamus or injunction to compel a person or
agency to comply with the requirements of this section. Nothing in
this section shall be construed to prevent a public official or
agency from curing or correcting an action challenged pursuant to
this section.
   (2) Prior to any action being commenced pursuant to this section,
the district attorney or interested person shall make a demand of the
person or 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 person or 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 section or
thereafter be barred from commencing the action.
   (5) If the person or 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 (4) 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 section 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 section shall be dismissed with
prejudice
   (e) (1) On or before July 1, 2013, the Controller shall recommend
to the Governor and the Legislature methods for compiling the
information contained on a person's compensation disclosure forms in
one or more publicly accessible databases. These recommendations
shall include specific proposals for establishment, operation,
oversight, and funding.
   (2) On or before January 1, 2018, to the extent resources are
available, the Bureau of State Audits may review and report to the
Governor and the Legislature regarding the implementation and
effectiveness of this section. The bureau's report shall rely on
criteria, including, but not limited to, the accuracy, completeness,
ease of use, and timeliness of the compensation disclosure forms
filed pursuant to this section. The bureau's report may include
recommendations for the Legislature's consideration.
   (f) This section shall become operative January 1, 2013, and 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.  Section 87302.2 is added to the Government Code, to read:
   87302.2.  (a) (1) In addition to the requirements of subdivision
(b) of Section 87302, every designated employee shall also include,
as a part of that filing, a compensation disclosure form as provided
for in Section 87202.5. The compensation disclosure form shall comply
with the regulations promulgated by the Controller pursuant to
subdivision (c) of Section 87202.5.
   (2) Nothing in this section shall be construed to prevent an
agency from adopting more extensive procedures and standards relating
to the disclosure of compensation information by its designated
employees.
   (3) If an agency maintains an Internet Web site, it shall post the
following information on its Internet Web site:
   (A) The information contained on the compensation disclosure form
filed by a designated employee pursuant to this section.
   (B) The written policy for the reimbursement of actual and
necessary expenses adopted pursuant to Section 53232.2, if
applicable.
   (b) As an alternative to subdivision (a), if an agency maintains
an Internet Web site, it may compile the information required by
subdivision (a) for each of its designated employees and post that
information on its Internet Web site. The information for each of
those designated employees shall be available upon request pursuant
to Section 81008.
   (c) The district attorney or any interested person may commence an
action by mandamus or injunction to compel a designated employee or
agency to comply with the requirements of this section by following
the procedure enumerated in subdivision (d) of Section 87202.5.
   (d) (1) On or before July 1, 2013, the Controller shall recommend
to the Governor and the Legislature methods for compiling the
information contained on a designated employee's compensation
disclosure forms in one or more publicly accessible databases. These
recommendations shall include specific proposals for establishment,
operation, oversight, and funding.
   (2) On or before January 1, 2018, to the extent resources are
available, the Bureau of State Audits may review and report to the
Governor and the Legislature regarding the implementation and
effectiveness of this section. The bureau's report shall rely on
criteria, including, but not limited to, the accuracy, completeness,
ease of use, and timeliness of the compensation disclosure forms
filed pursuant to this section. The bureau's report may include
recommendations for the Legislature's consideration.
   (e) This section shall become operative January 1, 2013, and 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. 3.  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 or designated employees 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.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 5.  The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.
   SEC. 6.    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:

   Since maintaining the public's trust in the efficiency,
transparency, and accountability of public agencies is essential to
the operations of government that protect the public peace, health,
and safety of all Californians, it is necessary that this act, which
protects the public's trust, take effect immediately.