BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2010-2011 Regular Session


          SCA 7 (Yee)
          As Introduced
          Hearing Date: April 5, 2011
          Fiscal: Yes
          Urgency: No
          TW

                                     FOR VOTE ONLY
           
                                        SUBJECT
                                           
                              Public Bodies:  Meetings

                                      DESCRIPTION  

          This bill would propose an amendment to the California 
          Constitution to require that each public body shall provide 
          public notice of its meetings and publicly disclose any action 
          taken.  This bill, if passed, would require voter approval prior 
          to enactment.

                                      BACKGROUND 

          Over the years, the Legislature has made clear that public 
          agency actions should be open to the scrutiny of the public.   
          In 1961, the Legislature enacted the Ralph M. Brown Act (Brown 
          Act), which provided public access to local public agency 
          information.  In 1967, the Legislature enacted the Bagley-Keene 
          Open Meeting Act, which provided public access to state public 
          agency information, and in 1989, the Legislature enacted the 
          Grunsky-Burton Open Meeting Act, which provided public access to 
          legislative information (collectively, Open Meeting Act).  In 
          1975, the Brown Act was amended to provide for disclosure of 
          public agency acts taken during closed meetings.  In 1986, the 
          Brown Act, among other things, was amended to provide for the 
          posting of public agency agendas.  In 2004, Proposition 59 added 
          to the California Constitution the people's right of access to 
          public body information.  (Cal. Const., art. I, sec. 3(b)(1).)

          In 1986, 1988, and 2001, the Commission on State Mandates ruled 
          that state and local agencies could be reimbursed by the state 
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          for monies spent complying with the Open Meeting and Brown Acts. 
           (CSM 4257, 4469, 4202, and 4485.)  This ruling was upheld in 
          California School Boards Association v. State of California, et 
          al. (2009) 171 Cal.App.4th 1183.  

          In 1990, during a state financial crisis, the Budget Act did not 
          include funding for Open Meeting/Brown Act compliance.  After 
          public uproar resulting from the inability to access public 
          agency information, AB 102 (Connelly, Ch. 238, Stats. 1991) was 
          enacted whereby the Legislature declared that "complete, 
          faithful, and uninterrupted compliance with the . . . . Brown 
          Act . . . is a matter of overriding public importance" and 
          "unless specifically stated, no future Budget Act shall . . . be 
          interpreted to suspend, eliminate, or otherwise modify the legal 
          obligation and duty of local agencies to fully comply with 
          Chapter 641 of the Statutes of 1986 . . . ."  (Gov. Code Sec. 
          54954.4.)

          Under the California Constitution, reimbursable mandates, such 
          as the notice and disclosure requirements contained in the Open 
          Meetings and Brown Acts, are subject to the Budget Act each 
          year.  If the Budget Act does not appropriate funding to cover 
          the reimbursable mandate, the mandate is suspended.  (Cal. 
          Const., art. XIIIB, sec. 6.)  The 2010 Budget Act did not 
          appropriate any funding for compliance with the Open Meeting and 
          Brown Acts.  Accordingly, pursuant to Government Code Section 
          17581(b), the Department of Finance has instructed public 
          agencies that the Open Meeting and Brown Acts are suspended.  
          Consequently, although state and local agencies may opt to 
          comply with the notice and reporting requirements of the Open 
          Meeting and Brown Acts, advocates for disclosure have argued 
          that the local agencies are not legally required to do so.

          The Open Meeting and Brown Acts provide access to public agency 
          actions and are a way to combat potential corruption.  The 
          necessity for access to public agency actions was demonstrated 
          by the City of Bell corruption scandal uncovered in July, 2010, 
          involving exorbitant city employee salaries awarded during 
          secret meetings.  Several Los Angeles Times articles detailed 
          the events of the scandal.  One article by CBS Los Angeles 
          showed the persistent need for public access to local agency 
          information, and quoted a City of Bell resident who claimed the 
          Bell City Council members did not "allow any information that 
          was required or it was either given wrong or you were told, 'You 
          can't receive it.'  Or they didn't respond at all."  (CBS Los 
          Angeles, 
                                                                      



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          http://losangeles.cbslocal.com/2010/09/28/bell-residents-suspecte
          d-corruption-for-years/.)   

          This bill would propose to amend the California Constitution to 
          require that each public agency shall provide public notice of 
          its meetings and publicly disclose any action taken by the 
          public agencies.  This bill would be subject to voter approval 
          before enactment.  This bill also has been referred by the 
          Senate Rules Committee to the Senate Committee on Elections, 
          Reapportionment and Constitutional Amendments.

                                CHANGES TO EXISTING LAW
           
           Existing law provides that the people have the right of access 
          to information concerning the people's business and requires 
          meetings of public bodies and the writings of public officials 
          and agencies to be open to public scrutiny.  (Cal. Const., art. 
          I, sec. 3(b)(1).)

          With respect to local public bodies,  existing law  , the Ralph M. 
          Brown Act, provides statutory requirements of local public 
          bodies to keep the public informed.  (Gov. Code Sec. 54950 et 
          seq.)  Existing law requires local public bodies to post notices 
          and agendas of local public body meetings.  (Gov. Code Secs. 
          54953, 54954.2, 54954.6, and 54956.) Existing law requires local 
          public bodies to publicly report any action taken in closed 
          sessions.  (Gov. Code Secs. 54957.1 and 54957.7.) Existing law 
          requires local public bodies to disclose in an open meeting the 
          items to be discussed in closed sessions.  (Gov. Code Sec. 
          54957.7.)

          Regarding state public bodies,  existing law  , the Bagley-Keene 
          Open Meeting Act, provides statutory requirements of state 
          public bodies to keep the public informed.  (Gov. Code Sec. 
          11120 et seq.)  Existing law requires state public bodies to 
          post notices and agendas of state public body meetings.  (Gov. 
          Code Secs. 11123, 11125, 11125.4, 11125.5, 11125.9, and 11126.)  
          Existing law requires state public bodies to publicly report any 
          action taken in closed sessions.  (Gov. Code Secs. 11125.2, 
          11126, and 11126.3.)
           
           As to legislative bodies,  existing law  , the Grunsky-Burton Open 
          Meeting Act, provides statutory requirements of legislative 
          bodies to keep the public informed.  (Gov. Code Sec. 9027 et 
          seq.)  Existing law requires legislative bodies to provide 
          notice to the public of open and closed meetings.  (Gov. Code 
                                                                      



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          Secs. 9028 and 9029.5.)  Existing law requires legislative 
          bodies to publicly state the nature of a closed meeting.  (Gov. 
          Code Sec. 9029.5.)

           This bill  would propose an amendment to the California 
          Constitution that would require each public body to provide 
          public notice of its meetings and public disclosure of any 
          action taken.
          
                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes: 
          
            The current state budget failed to appropriate money to pay 
            Brown Act claims.  Even though the agenda posting and 
            reporting provisions remain on the books, as unfunded 
            mandates, the provision is optional and unenforceable. . . .

            Senate Constitutional Amendment 7 would guarantee, once and 
            for all, the public's right under the Ralph M. Brown Act to 
            reasonable notice of the meetings of local public legislative 
            bodies and to public reports of action taken in closed 
            sessions of those bodies.
            
          The California Newspaper Publishers Association (CNPA), the 
          sponsor of this bill, writes:

            �E]ven though last minute amendments to the 2010/2011 State 
            Budget reinstated the Brown Act requirements, it did not 
            appropriate funds for these "state mandated local programs."  
            Because of this anomaly, the Legislative Analysts Office takes 
            the position that local government agencies are currently not 
            required to comply with the agenda posting and reporting out 
            requirements.  Whether this is the legally correct 
            interpretation or not, the current status of the law has 
            created intolerable confusion.

            CNPA has argued the duties to post a single copy of an agenda 
            in a public place and to orally report decisions made in 
            closed session create no meaningful costs that should be 
            reimbursed by the State.  The Commission on State Mandates, 
            though, has found these statutes require state reimbursement 
            to local agencies at an annual cost of about $20 million.

                                                                      



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            . . . �T]he fact is that unless the legislature approves an 
            SCA for the ballot, one of two outcomes appear certain: either 
            the legislature will agree to continue to pay the bogus local 
            agency claims putting continued stress on other funding 
            choices; or, more likely, it will continue to suspend the 
            Brown Act, making it optional to local agencies and 
            unenforceable by the public.

          2.  Existing law is insufficient to protect the public's right to 
            information

           This bill would amend the California Constitution, subject to 
          voter approval, that the public has the right of access to 
          notices of public body meetings and disclosure of actions taken. 
           Currently, the public has a right to information of public 
          bodies through the California Constitution, but this right is 
          not sufficiently defined.  (Cal. Const., art. I, sec. 3(b)(1).)  
          The Legislature intended that the Open Meeting and Brown Acts 
          would supplement this right by providing specific requirements 
          that would allow the public access to public body information.  
          (See Background.)  

          Further, Government Code Section 54954.4(c) declares the 
          Legislature's intent that, unless specifically stated, the Brown 
          Act should not be interpreted by any Budget Act to suspend, 
          eliminate, or otherwise modify the legal obligation and duties 
          of local agencies to comply with the Brown Act.  However, the 
          provisions of the Open Meeting and Brown Acts have been declared 
          reimbursable mandates, which, according to the California 
          Constitution, are subject to suspension in the event a Budget 
          Act fails to provide funding for these mandates.  (See Cal. 
          Const., art. XIIIB, sec. 6(b)(1).)  The 2010 Budget Act did not 
          provide for funding for compliance with the Open Meeting and 
          Brown Acts, and public agencies have been advised by the 
          Department of Finance that these Acts have been suspended.  The 
          Department of Finance, when issuing its November 8, 2010 letter 
          declaring the Open Meeting and Brown Acts as suspended, takes 
          the position that the reimbursable mandate provision in the 
          California Constitution is controlling over and above Government 
          Code Section 54954.4.  Thus, public agencies may interpret the 
          suspension of state mandate reimbursement for compliance with 
          the Open Meeting and Brown Acts to mean that public agencies are 
          not required to comply with the Open Meeting and Brown Acts but 
          may do so on their own accord. 

          On the other hand, this bill would provide a constitutional 
                                                                      



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          right of public access to notices of public agency meetings and 
          disclosure of actions taken.  Costs associated with 
          constitutional requirements are not reimbursable by the state.  
          (Gov. Code Sec. 17514.)  Accordingly, public agency costs 
          associated with meeting notices and disclosure would not be 
          reimbursable and subject to suspension by a Budget Act.  As 
          discussed further in Comment 3, the Open Meeting and Brown Acts 
          would then be necessary to implement the provisions of this 
          bill.  Statutes that are necessary to implement constitutional 
          provisions are not reimbursable.  (Gov. Code Sec. 17556(f).)  
          Thus, public agency requirements listed under the Open Meeting 
          and Brown Acts in order to comply with this constitutional 
          requirement would not be reimbursable and consequently not be 
          suspended.  

          Proponents of this bill argue that, as demonstrated by the 
          recent public agency corruption in the City of Bell, it is 
          imperative that the public remain informed.  Without providing a 
          constitutional right to meeting notices and disclosure of acts 
          as provided by this bill, the public may not have access to 
          meeting notices and disclosure of public agency acts.  
           
           3.  The Open Meeting and Brown Acts would implement the 
            provisions of this bill  

          This bill would propose to amend the California Constitution to 
          require that public agencies provide notices of meetings and 
          disclosure to the public of actions taken.  Yet, this bill does 
          not define readily how much notice and disclosure is necessary 
          to effectively implement it.  However, the Open Meeting and 
          Brown Acts provide such guidance to public agencies on notice 
          and disclosure requirements necessary to keep the public 
          informed.   

              a.   Notice of meetings .  This bill would require public 
               bodies to provide public notice of their meetings.  Public 
               bodies meet during regularly scheduled meetings but also 
               during emergency situations.  Some meetings are held 
               publicly, some meetings are held as closed sessions.  Given 
               the variety of meetings that a public body may hold, the 
               provisions of the Open Meeting and Brown Acts would be 
               necessary to determine which type of notice is necessary 
               for each given circumstance.  

              b.   Action taken  .  This bill would require public disclosure 
               of any action taken by a public agency.  The Open Meeting 
                                                                      



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               and Brown Acts supply concise definitions of "action 
               taken."  (See Gov. Code Secs. 11122 and 54952.6.)  Of 
               particular note, these statutes do not require disclosure 
               of discussions during closed sessions but rather disclosure 
               of the final decisions and actions taken by the public 
               agency.  Due to the potential for an overbroad definition 
               of "action taken," the Open Meeting and Brown Acts, as 
               applicable, would be necessary to implement the 
               requirements of this bill. 

          Accordingly, the notice and disclosure provisions contained in 
          the Open Meeting and Brown Acts would be necessary to implement 
          the provisions of this bill.  Incidentally, some of the statutes 
          under the Brown Act specifically state that they are necessary 
          to implement paragraph (1) of subdivision (b) of Section 3 of 
          Article I of the California Constitution.  (See Gov. Code Secs. 
          54954.2 and 54957.1.)  Regardless of any reference to the 
          California Constitution, each notice or disclosure statute 
          contained in the Open Meeting and Brown Acts would be necessary 
          to implement this bill because each such statute provides the 
          necessary provisions for different meeting and action 
          circumstances.

          4.  2011 Budget Act provisions  

          This bill would propose to amend the California Constitution to 
          require public agencies to provide public notice of their 
          meetings and publicly disclose any action taken.  Under existing 
          law, the Brown Act is a state mandated program which requires 
          state reimbursement to public agencies incurring costs of 
          compliance with the Brown Act.  (Gov. Code Sec. 17514.)  If 
          funding for Open Meeting and Brown Acts reimbursement has not 
          been appropriated in a Budget Act, the Open Meeting and Brown 
          Acts are suspended.  (See Cal. Const., art. XIIIB, sec. 
          6(b)(1).)  

          Proponents of this bill argue that it is necessary because the 
          Brown Act has been suspended and local agencies now are not 
          required to comply with the notice and disclosure requirements 
          of the Brown Act.  The proponents do not specify any problem 
          with notice and disclosure compliance with the Open Meeting 
          Acts, which apply to state agencies and the Legislature.  Given 
          the current fiscal crisis and the lack of funding for the Open 
          Meeting and Brown Act, the 2011 Budget Act contains trailer bill 
          language in SCAX 1-1 that would add an additional constitutional 
          provision whereby the Brown Act no longer would be a state 
                                                                      



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          mandate but a constitutional requirement.  As such, the Brown 
          Act no longer would be subject to suspension.  For consistency, 
          the author may wish to consider whether to conform this bill to 
          the proposed trailer bill language.

          5.  Suggested Amendment

           The bill contains a technical error that should be corrected as 
            follows:

            On page 1, line 2 change "20011" to "2011".
               

           Support  :  American Federation of State, County and Municipal 
          Employees, AFL-CIO; California Association of Realtors; 
          California Nurses Association; Californians Aware; California 
          Taxpayers Association; Sierra Club California; an individual

           Opposition  :  California Association of Clerks and Election 
          Officials

                                        HISTORY
           
           Source  :  California Newspaper Publishers Association

           Related Pending Legislation  :  None Known

           Prior Legislation  :  See Background.

           Prior Vote  :  None

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