BILL ANALYSIS �
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THIRD READING
Bill No: AB 2040
Author: Garcia (D)
Amended: 8/12/14 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/18/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/4/14
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 78-0, 5/28/14 - See last page for vote
SUBJECT : Public official compensation
SOURCE : Author
DIGEST : This bill requires local agencies to report the
annual compensation of elected officials, officers, and
employees to the State Controller (Controller) and to post that
information on the local agency's Internet Web site, if the
agency maintains a Web site. Requires the Controller to report
and post on its Internet Web site the compensation information
received by the local agency.
ANALYSIS : Since the 1940s, local agencies have been required
to file annual financial transaction reports with the
Controller's Office. These reports document local agencies'
revenues, expenditures, long-term indebtedness, appropriation
limits, and total annual appropriations subject to those limits.
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AB 2040
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The Controller is required to prepare and publish annual
reports on the financial transactions of cities, counties and
special districts, along with any other information deemed to be
of public interest (SB 1138 Fletcher, Chapter 111, 1945).
Consistent with the Controller's authority to publish financial
data, the Controller maintains an Internet Web site listing
government compensation in California. The site allows the
public to review compensation information from state agencies,
local agencies, some public colleges and universities, as well
as the earnings of state elected officials.
This bill directs local agencies to submit information to the
Controller on the annual compensation they provide to their
elected officials, officers, and employees. This bill requires
local agencies to either post that information in a conspicuous
place on the local agency's Web site, if the local agency
maintains a Web site, or post a link to the Controller's
Government Compensation in California Web site. This bill
requires the Controller to report and post on its Internet Web
site, in a format that may be printed and downloaded, the
compensation information it receives from the local agencies.
Comments
This bill will help the public to find and review compensation
information for local agency public officials. By requiring
local agencies to transmit this information to the Controller,
and requiring the information to be posted on local agency
Internet Web sites, the public will have improved access to
information that is already in the public domain, but which is
often difficult to find. This bill is an important step in
improving government transparency and accountability.
Related Legislation
AB 941 (Rendon, 2013) expands the Controller's authority to
address local government financial or administrative issues
through audits, investigations and technical assistance. AB 941
was held in Assembly Appropriations.
SB 186 (Kehoe, 2012) expands the Controller's authority to
perform audits or investigations of counties, cities, special
districts and joint powers authorities if the Controller has
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reason to believe that a local government is violating specified
financial requirements. SB 186 was held in Assembly
Appropriations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Unknown, likely minor reimbursable mandate costs. Local
agencies could seek reimbursement for any costs incurred for
compiling compensation data and including it in the annual
financial report, and for posting that information on their
respective websites. (General Fund)
No new costs to the Controller to compile the information from
annual financial reports and post it on its Web site because
the bill codifies current Controller practice. However,
placing those requirements in statute could create cost
pressures because it creates a legal compulsion to collect and
publish information on public compensation; the Controller
currently performs this function at his discretion.
SUPPORT : (Verified 8/12/14)
Common Cause
League of Women Voters of California
ARGUMENTS IN SUPPORT : According to the author, this bill
"simply requires public entities that are currently required to
report to the controller to also post the information on their
local webpage.
"Disclosure of governmental salaries is subject to open records
rules. This disclosure permits the media and members of the
public to monitor the salary levels of governmental officials.
However, the information on PublicPay.ca.gov is a good first
step. The information is useless if people do not know where to
find the information."
ASSEMBLY FLOOR : 78-0, 5/28/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
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Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,
Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.
P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Frazier, Vacancy
AB:d 8/12/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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