BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2040
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 2040 (Garcia) - As Introduced:  February 20, 2014 

          Policy Committee:                              Local  
          GovernmentVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires local agencies to report to the State  
          Controller (Controller) additional information about the  
          compensation of local public officials and to post such  
          information on their websites. Specifically, this bill: 

          a)Requires local agencies to include in the information they  
            report annually to the Controller the annual compensation of a  
            local agency's public officials, including, but not limited  
            to, separately listing the name and title of each public  
            official and his or her monthly salary.

          b)Requires a local agency that maintains a website to post the  
            annual compensation of its public officials in a clear,  
            visible, and searchable format that includes, but is not  
            limited to, separately listing the name and title of each  
            public official, and his or her monthly salary.  The  
            information must be updated at least annually.  Allows a local  
            agency to comply with the requirement in b), above, by posting  
            on its website a link to the Controller's Government  
            Compensation in California (GCC) website.

          c)Defines "Public Official" to mean every member, officer,  
            employee or consultant of a state or local government agency  
            with the exception of some judicial branch and federal  
            employees.

           FISCAL EFFECT  

          1)First-year costs to the State Controller's Office of  
            approximately $900,000 (GF) and on-going costs of  








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            approximately $800,000 (GF) annually. 

          2)Unknown, but likely major, on-going reimbursable costs to  
            local agencies to collect and compile the information required  
            by this bill.


           COMMENTS  

           1)Background  . The Controller launched the Government  
            Compensation in California (GCC) website in response to the  
            2010 scandal in the City of Bell to promote government  
            transparency and help prevent such problems from reoccurring.   
            The website includes information about all employees with  
            wages reportable on a Federal W-2 form.  Data is self-reported  
            by governments and is not verified by the Controller's Office.

            The GCC report is a supplement to the Controller's annual  
            financial transactions report.  These reports are due to the  
            Controller within 90 or 110 days after their fiscal year end.   


            Other entities participate voluntarily in the GCC program,  
            including state agencies, K-12 school districts, courts, the  
            University of California, the California State University,  
            community colleges, First Five, and fairs and expos.

            The GCC report gathers 12 items of information about annual  
            compensation from cities, counties and special districts each  
            year. This bill requires local agencies to report an  
            additional eight items for all public officials, including all  
            staff.

           2)Opposition  . Numerous local agency associations are opposed to  
            this bill due to what they describe as costly and  
            administrative compliance burdens, particularly regarding the  
            collection and calculation of monthly figures.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081 












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