California Senate Bill SB501 Latest Draft

 BILL NUMBER: SB 501AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 20, 2010 AMENDED IN ASSEMBLY AUGUST 13, 2010 AMENDED IN ASSEMBLY AUGUST 12, 2010 AMENDED IN SENATE APRIL 20, 2009 INTRODUCED BY Senator Correa (Principal coauthor: Assembly Member De La Torre) (Coauthors: Assembly Members Block, Caballero, Gatto, Norby, Portantino, Smyth, and Torres) FEBRUARY 26, 2009 An act to add Section 53060.2 to the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST SB 501, 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  officers and designated employees   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  and reimbursements received by the officer or designated employee, and the employer's cost of providing benefits   , 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.  The bill would express a legislative finding and declaration that, to ensure the statewide integrity of local government, disclosure of compensation paid to  officers and designated employees   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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: 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) "Designated employee" means a designated employee 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 Chapter 7 (commencing with Section 87100) of Title 9.   (3) "Officer" means 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 Chapter 7 (commencing with Section 87100) of Title 9.   (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  officer or designated employee   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)  An officer or designated employee   A filer  shall file his or her compensation disclosure form with the same office  of the local agency  that receives that  officer's or designated employee's   filer's  statement of economic interest pursuant to Section 87500.  The office receiving the compensation disclosure form shall make and retain a copy and return the original to the officer or designated employee.   (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).   (2)   (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 information contained on the filed compensation disclosure form on that Internet Web site.   (d) The compensation disclosure form, which shall be developed by the Secretary of State, shall, at a minimum, provide for the disclosure of each of the following by an officer and a designated employee:   (1) Salaries and stipends paid.   (2) Total reimbursements for expenses received in a year.   (3) The employer's cost of providing benefits.   (4)     Any other monetary or nonmonetary perquisites provided.   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  items   information  disclosed pursuant to subdivision (d) shall also include any  items   amounts  received by  an officer or designated employee   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  officer's or designated employee's   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  an officer, designated employee   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  an officer, designated employee   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  officer, designated employee   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  officer, designated employee   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  officer, designated employee   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  officers and designated employees   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  officers and designated employees   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.