California Senate Bill SB46 Amended / Bill

 BILL NUMBER: SB 46AMENDED BILL TEXT 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.  This bill would, until January 1, 2019, require each designated employee who is required to file statements under a conflict of interest code to include, as a part of that filing, a compensation disclosure form that provides compensation information for the preceding calendar year.  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 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  October 1, 2011   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,  2012   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  October 1, 2011   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,  2012   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,  2012   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: Maintaining the public's trust in the efficiency, transparency, and accountability of their public agencies is essential to the operation of governments that protect the public peace, health, and safety of all Californians. It is essential that measures which protect the public trust take effect immediately.