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CC - Item 4C - 2004-07 Adopting an Expense and Use of Public Resources Policy• TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: PETER WALLIN, CITY ATTORNEY DATE: DECEMBER 20, 2005 • RE: RESOLUTION NO. 2005-47 ADOPTING AN EXPENSE AND USE OF PUBLIC RESOURCES POLICY Attached for your consideration is Resolution No. 2005-47 Adopting an Expense and Use of Public Resources Policy. The impetus for this Resolution is a change in state law brought about by enactment of AB 1234, effective January 1, 2006. That law requires cities and other governmental agencies to adopt expense reimbursement policies within specified parameters. Also attached is a copy of AB 1234. The policy is required to establish reimbursement standards and limits for meal, transportation and lodging expenses when Council Members and employees travel on City business and to require the submission of receipts for all expenses within established deadlines. Car allowances are no longer permitted for elected officials in California. The new policies will also apply to all employees and consultants, except to the extent that an employee or consultant has a contract providing for different terms. For example, as part of their compensation package, certain management employees receive a car allowance. This new policy would not impact those contracts. RECOMMENDATION It is recommended that the City Council, after any changes or amendments, adopt Resolution No. 2005-47. COUMM ACEITIDA DEC 27 2005 ITEM No. • 0 RESOLUTION NO. 200547 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN EXPENSE AND USE OF PUBLIC RESOURCES POLICY THE CITY COUNCIL OF THE CITY OF ROSEMEAD HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS: WHEREAS, the State of California has enacted AB 1234 requiring local agencies to enact expense reimbursement policies consistent therewith; and WHEREAS, the City of Rosemead takes its stewardship over the use of its limited public resources seriously; and WHEREAS, public resources should only be used when there is a substantial benefit to the City; and WHEREAS, such benefits include: The opportunity to discuss the community's concerns with state and federal officials; 2. Participating in regional, state and national organizations whose activities affect the City; 3. Attending educational seminars designed to improve officials' skill and information levels; and 4. Promoting public service and morale by recognizing such service. WHEREAS, 1) legislative and other regional, state and federal agency business is frequently conducted over meals; 2) sharing a meal with regional, state and federal officials is frequently the best opportunity for a more extensive, focused and uninterrupted communication about the City's policy concerns; and 3) each meal expenditure must comply with the limits and reporting requirements of local, state and federal law. WHEREAS, this policy provides guidance to elected and appointed officials on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured; and • • WHEREAS, this policy supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources, and supplements the definition of necessary and reasonable expenses for purposes of federal and state income tax laws; and WHEREAS, this policy also applies to any charges made to a city credit card, cash advances or other lines of credit. NOW, THEREFORE, BE IT RESOLVED THAT: SECTION 1. Any previous resolution that may conflict with the policies adopted in the Policy is hereby repealed. This Resolution is not intended to impair or effect any existing contracts with employees or employee organizations and does not apply to employees covered by such agreements. SECTION 3. The attached Expense and Use of Public Resources Policy is hereby adopted, effective at 12:01 a.m. on January 1, 2006. SECTION 6. CERTIFICATION The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 27th day of December, 2005. Jay T. Imperial Mayor ATTEST: Nina Castruita City Clerk i E CITY OF ROSEMEAD Expense and Use of Public Resources Policy AUTHORIZED City funds, equipment, supplies (including letterhead), titles, and staff time must only be used for authorized City business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this policy are met: 1. Communicating with representatives of regional, state and national goverment on City adopted policy positions; 2. Attending educational seminars designed to improve officials' skill and information levels; 3. A conference or organized educational activity conducted in compliance with subdivision (c) of Section 54952.2, including, but not limited to, ethics training required by Article 2.4 (commencing with Section 53234). 4. Participating in regional, state and national organizations whose activities affect the City; 5. Recognizing service to the City (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost); 6. Attending City events; 7. Implementing a City-approved strategy for attracting or retaining businesses to the City, which will typically involve at least one staff member; and All other expenditures require prior approval by the City Council. The following expenses also require prior Council's approval: International and out-of-state travel except to an adjacent state; Expenses which exceed the annual limits established for each office holder; and Expenses exceeding two thousand five hundred dollars ($2,500.00) per trip. Examples of personal expenses that the City will not reimburse include, but are not limited to: • The personal portion of any trip; 2. Political or charitable contributions or events; 3. Family expenses, including partner's expenses when accompanying official on City- related business, as well as children- or pet-related expenses; 4. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events; 5. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and 6. Personal losses incurred while on City business. Any questions regarding the propriety of a particular type of expense should be resolved by the approving authority before the expense is incurred. COST CONTROL To conserve City resources and keep expenses within community standards for public officials, expenditures should adhere to the following guidelines. In the event that expenses are incurred which exceed these guidelines, the cost borne or reimbursed by the City will be limited to the costs that fall within the guidelines: TRANSPORTATION The most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements must be used, using the most direct and time- efficient route. Charges for rental vehicles may be reimbursed under this provision if more than one City official is attending an out of town conference, and it is determined that sharing a rental vehicle is more economical than utilizing other forms of transportation. In making such determination, the cost of the rental vehicle, parking and gasoline shall be compared to the combined cost of such other forms of transportation. Automobile. Automobile mileage is reimbursable at Internal Revenue Service rates presently in effect (see www.irs.gov). For 2006, the rate is 44.5 cents per mile. These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable. The IRS rates shall not be paid for rental vehicles; only receipted fuel expenses will be reimbursed. No more than $250.00 will be reimbursed for local automobile travel by one person for any month. Airfare. Airfares that are equal to or less than those available through the Enhanced Local Government Airfare Program offered through the League of California Cities (www.cacities.org/travel), the California State Association of Counties (w\vxv.csac.counties.org/ default.asp?id=635) and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy. • 0 Car Rental. Rental rates that are equal to or less than those available through the State of California's website (http://www.catraveismart.com/default.htm) shall be considered the most economical and reasonable for purposes of reimbursement under this policy. Taxis/Shuttles. Taxis or shuttles fares may be reimbursed, including a 15 percent gratuity per fare, when the cost of such fares is equal to or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time-efficiency. LODGING Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. If such lodging is in connection with a conference, lodging expenses should not exceed the group rate published by the conference sponsor for the meeting in question. If group rates are unavailable, reimbursement shall not exceed available government rates. If government rates are not available to City officials, reimbursement shall not exceed the Internal Revenue Service per diem limits. See www.irs.gov or %kxN,"policvworks.eov/perdiem MEALS Meal and incidental expenses shall not exceed the following amounts: (Breakfast $12 Lunch $18 Dinner 1$35 Such amounts shall be annually adjusted to reflect changes in the cost of living in accordance with statistics published by the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index, all urban consumers for the Los Angeles-Anaheim-Riverside Metropolitan Area. (The annual adjustment shall be made based on said area whether such travel is within that area or not.) The City will not pay for alcohol/personal bar expenses. ENROLLMENT FEES Enrollment fees charged by providers of conferences, organized educational activities and other National, State or Regional organizations whose activities affect the City will be reimbursed at the lowest rates available to the official (i.e., member rate if the City or Official is a member). TELEPHONE/FAX/INTERNET/CELLULAR • 0 Officials will be reimbursed for actual telephone and fax expenses incurred on City business. Telephone bills should identify which calls were made on City business. For cellular calls when the official has a particular number of minutes included in the official's plan, the official can identify the percentage of calls made on public business. Officials will be reimbursed for Internet access connection and/or usage fees away from home, not to exceed $15.00 per day if Internet access is necessary for City-related business. AIRPORT PARKING Long-term parking should be used for travel exceeding 24-hours OTHER Baggage handling fees of up to $1 per bag and gratuities of up to 15 percent will be reimbursed. Expenses for which City officials receive reimbursement from another agency are not reimbursable. CASH ADVANCE POLICY From time to time, it may be necessary for an official to request a cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to the Chief Financial Officer seven (7) days prior to the need for the advance with the following information: The purpose of the expenditure(s); and The benefits of such expenditure to the residents of the City; and The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and The dates of the expenditure(s). Any unused advance must be returned to the City treasury within ten business days of the official's return, along with an expense report and receipts documenting how the advance was used in compliance with this expense policy. In the event the Chief Financial Officer is uncertain as to whether a request complies with this policy, such individual must seek resolution from the City Council. CREDIT CARD USE POLICY The City does not issue credit cards to individual office holders but does have an agency credit card for selected City expenses. City office holders and staff as authorized by the Chief Administrative Officer may use the City's credit card for such purposes as airline tickets and hotel reservations by following the same procedures for cash advances. Receipts documenting expenses incurred on the City credit card and compliance with this policy must be submitted within five business days of use. 0 1~J City credit cards may not be used for personal expenses, even if the official subsequently reimburses the City. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE All cash advance expenditures, credit card expenses and expense reimbursement requests must be submitted on an expense report form provided by the City. This form shall include the following advisory: All expenses reported on this form must comply with the City's policies relating to expenses and use of public resources. The information submitted on this form is a public record. Penalties for misusing public resources and violating the City's policies include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability. Expense reports must document that the expense in question met the requirements of the policy. For example, if the meeting is with a legislator, the City official should explain whose meals were purchased, what issues were discussed and how those relate to the City's adopted legislative positions and priorities. Officials must submit their expense reports within 30 days of an expense being incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are part of the necessary documentation. Inability to provide such documentation in a timely fashion may result in the expense being borne by the official. AUDITS OF EXPENSE REPORTS All expenses are subject to verification that they comply with this policy. REPORTS TO GOVERNING BOARD At the following City Council meeting, each official shall briefly report on meetings attended at City expense. If multiple officials attended, a joint report may be made. COMPLIANCE WITH LAWS City officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the Public Records Act. VIOLATION OF THIS POLICY 0 0 Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the agency's reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, and 5) prosecution for misuse of public resources. AB 1234 Assembly Bill - Stale CURRENT BILL STATUS MEASURE : A.B. No. 1234 AUTHOR(S) Salinas. TOPIC Local agencies: compensation and ethics. +LAST AMENDED DATE 08/22/2005 TYPE OF BILL : Inactive Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Fiscal Non-Tax Levy • Page 1 of 1 LAST HIST. ACT. DATE: 10/07/2005 LAST HIST. ACTION Chaptered by Secretary of State - Chapter 700, Statutes of 2005. TITLE An act to amend Sections 25008 and 36514.5 of, and to add Article 2.3 (commencing with Section 53232) and Article 2.4 (commencing with Section 53234) to Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, to amend Sections 6060 and 7047 of the Harbors and Navigation Code, to amend Sections 2030, 2851, 4733, 4733.5, 6489, 9031, 13857, 13866, and 32103 of the Health and Safety Code, to amend Section 1197 of the Military and Veterans Code, to amend Sections 5536, 5536.5, 5784.15, and 9303 of the Public Resources Code, to amend Sections 11908, 11908.1, 11908.2, 16002, and 22407 of the Public Utilities Code, and to amend Sections 20201, 21166, 30507, 30507.1, 34741, 40355, 50605, 55305, 56031, 60143, 70078, 71255, and 74208 of, and to add Section 20201.5 to, the Water Code, relating to local agencies. anv/niih/hill/aim/ah 1201-1250/ah 1234 hill 20051018 status.html 12/19/2005 AB 1234 Assembly Bill - His's 0 PaZe 1 of 1 COMPLETE BILL HISTORY BILL NUMBER : A.B. No. 1234 AUTHOR Salinas TOPIC Local agencies: compensation and ethics. TYPE OF BILL : BILL HISTORY 2005 Inactive Non-Urgency Non-Appropriations Majority Vote Required Non-State-Mandated Local Program Fiscal Non-Tax Levy Oct. 7 Chaptered by Secretary of State - Chapter 700, Statutes of 2005. Oct. 7 Approved by the Governor. Sept. 7 Enrolled and to the Governor at 3:30 p.m. Aug. 30 Assembly Rule 77 suspended. (Page 3080.) Senate amendments concurred in. To enrollment. (Ayes 78. Noes 0. Page 3082.) Aug. 29 In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 31 pursuant to Assembly Rule 77. Aug. 29 Read third time, passed, and to Assembly. (Ayes 32. Noes 2. Page 2307.) Aug. 23 Read second time. To third reading. Aug. 22 Read third time, amended. To second reading. Aug. 16 Read second time. To third reading. Aug. 15 Read third time, amended. To second reading. July 13 Read second time, amended, and to third reading. July 12 From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and be amended. June 29 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. June 21 Read second time, amended, and re-referred to Com. on APPR. June 20 From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 9. Noes 0.). June 1 From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L.GOV. May 5 Referred to Com. on L.GOV. Apr. 21 In Senate. Read first time. To Com. on RLS. for assignment. Apr. 21 Read third time, passed, and to Senate. (Ayes 71. Noes 0. Page 1083.) Apr. 18 Read second time. To third reading. Apr. 14 From committee: Do pass. (Ayes 6. Noes 0.) (May 13). Apr. 6 Re-referred to Com. on L. GOV. Apr. 5 From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. Mar. 29 In committee: Hearing postponed by committee. Mar. 17 Referred to Com. on L. GOV. Feb. 24 From printer. May be heard in committee March 26. Feb. 22 Read first time. To print. htln•/AA,", leainfo.ca.gov/nub/bill/asm/ab 1201-1250/ab 1234 bill 20051007 historv.h... 12!19/2005 • Assembly Bill No. 1234 CHAPTER 700 An act to amend Sections 25008 and 36514.5 of, and to add Article 2.3 (commencing with Section 53232) and Article 2.4 (commencing with Section 53234) to Chapter 2 of Part 1 of Division 2 of Title 5 of, the Government Code, to amend Sections 6060 and 7047 of the Harbors and Navigation Code, to amend Sections 2030, 2851, 4733, 4733.5, 6489, 9031, 13857, 13866, and 32103 of the Health and Safety Code, to amend Section 1197 of the Military and Veterans Code, to amend Sections 5536, 5536.5, 5784.15, and 9303 of the Public Resources Code, to amend Sections 11908, 11908.1, 11908.2, 16002, and 22407 of the Public Utilities Code, and to amend Sections 20201, 21166, 30507, 30507.1, 34741, 40355, 50605, 55305, 56031, 60143, 70078, 71255, and 74208 of, and to add Section 20201.5 to, the Water Code, relating to local agencies. [.Approved by Govemor October 7, 2005. Filed with Secretary of State October 7, 2005.] LEGISLATIVE COUNSEL'S DIGEST AB 1234, Salinas. Local agencies: compensation and ethics. Existing law provides for the establishment and operations of cities, counties, cities and counties, districts, and other local government agencies, the composition of their governing bodies, and the payment of governing body members for attending meetings and performing other duties, and prescribes conflicts of interest. This bill would require a local agency that provides reimbursement for expenses to members of its legislative body to adopt a written policy on the duties for which legislative body members may receive compensation, other than meetings of the legislative body or an advisory body or attendance at a conference or organized educational activity. The bill would require such a governing body to adopt a written policy concerning what occurrences qualify a member to receive reimbursement of expenses for travel, meals, and lodging and would impose related requirements, including the filing of expense reports, which would be public records. This bill would also require that if a local agency provides any type of compensation, salary, or stipend to, or reimburses the expenses of, a member of the legislative body, all local agency officials, except a member whose term of office ends before January 1, 2007, in local agency service as of January 1, 2006, or thereafter receive training in ethics, as specified. This bill would provide that if any entity develops criteria for the ethics training, then the Fair Political Practices Commission and the Attorney General shall be consulted regarding any proposed course content. This bill would specify, with respect to certain special districts, how a director's • 90 • Ch. 700 -2- activities on a specific day are determined to be compensable and would make related changes. The people of the State of California do enact as follows: SECTION 1. Section 25008 of the Government Code is amended to read: 25008. Members shall be allowed their actual expenses in going to, attendance upon, and returning from state association meetings and their actual and necessary traveling expenses when traveling outside their counties on official business. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3. SEC. 2. Section 36514.5 of the Government Code is amended to read: 36514.5. City council members may be reimbursed for actual and necessary expenses incurred in the performance of official duties. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3. SEC. 3. Article 2.3 (commencing with Section 53232) is added to Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, to read: Article 2.3. Compensation 53232. For the purposes of this article, the following terms have the following meanings: (a) "Governing body" means the board of supervisors in the case of a county or a city and county, the city council or board of trustees in the case of a city, and the board of directors or other governing body in the case of a special district. (b) "Legislative body" has the same meaning as specified in Section 54952. (c) "Local agency" means a city, county, city and county, charter city, charter county, charter city and county, or special district. (d) "Meeting" has the same meaning as specified in subdivision (a) of Section 54952.2. 53232.1. (a) When compensation is otherwise authorized by statute, a local agency may pay compensation to members of a legislative body for attendance at the following occurrences: (1) A meeting of the legislative body. (2) A meeting of an advisory body. (3) A conference or organized educational activity conducted in compliance with subdivision (c) of Section 54952.2, including, but not limited to, ethics training required by Article 2.4 (commencing with Section 53234). (b) A local agency may pay compensation for attendance at occurrences not specified in subdivision (a) only if the governing body has adopted, in • 90 0 -3- Ch. 700 a public meeting, a written policy specifying other types of occasions that constitute the performance of official duties for which a member of the legislative body may receive payment. (c) This section shall not apply to any local agency that pays compensation in the form of a salary to members of a legislative body, including, but not limited to, those local agencies whose legislative bodies' compensation is subject to Section 36516 or 36516. 1, subparagraph (B) or (C) of paragraph (2) of subdivision (a) of Section 21166 or Section 22840 of the Water Code, Section 11908.1 of the Public Utilities Code, Section 6060 of the Harbors and Navigation Code, or subdivision (b) of Section 1 or Section 5 of Article XI of the California Constitution. 53232.2. (a) When reimbursement is otherwise authorized by statute, a local agency may reimburse members of a legislative body for actual and necessary expenses incurred in the performance of official duties, including, but not limited to, activities described in Article 2.4 (commencing with Section 53234). (b) If a local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties, then the governing body shall adopt a written policy, in a public meeting, specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses. (c) The policy described in subdivision (b) may also specify the reasonable reimbursement rates for travel, meals, and lodging, and other actual and necessary expenses. If it does not, the local agency shall use the Internal Revenue Service rates for reimbursement of travel, meals, lodging, and other actual and necessary expenses as established in Publication 463, or any successor publication. (d) If the lodging is in connection with a conference or organized educational activity conducted in compliance with subdivision (c) of Section 54952.2, including, but not limited to, ethics training required by Article 2.4 (commencing with Section 53234), lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of a legislative body at the time of booking. If the group rate is not available, the member of a legislative body shall use comparable lodging that is consistent with the requirements of subdivisions (c) and (e). (e) Members of the legislative body shall use government and group rates offered by a provider of transportation or lodging services for travel and lodging when available. (f) All expenses that do not fall within the adopted travel reimbursement policy or the Internal Revenue Service reimbursable rates as provided in subdivision (c), shall be approved by the governing body, in a public meeting before the expense is incurred, except as provided in subdivision (d). (g) This section shall not supersede any other laws establishing reimbursement rates for local agencies. 40 90 0 Ch. 700 -4- 53232.3. (a) if a local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties, then a local agency shall provide expense report forms to be filed by the members of the legislative body for reimbursement for actual and necessary expenses incurred on behalf of the local agency in the performance of official duties. Reimbursable expenses shall include, but not be limited to, meals, lodging, and travel. (b) Expense reports shall document that expenses meet the existing policy, adopted pursuant to Section 53232.2, for expenditure of public resources. (c) Members of a legislative body shall submit expense reports within a reasonable time after incurring the expense, as determined by the legislative body, and the reports shall be accompanied by the receipts documenting each expense. (d) Members of a legislative body shall provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body. (e) All documents related to reimbursable agency expenditures are public records subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 5250) of Division 7 of Title 1). 53232.4. Penalties for misuse of public resources or falsifying expense reports in violation of expense reporting polices may include, but are not limited to, the following: (a) The loss of reimbursement privileges. (b) Restitution to the local agency. (c) Civil penalties for misuse of public resources pursuant to Section 5314. (d) Prosecution for misuse of public resources, pursuant to Section 424 of the Penal Code. SEC. 4. Article 2.4 (commencing with Section 53234) is added to Chapter 2 of Part I of Division 2 of Title 5 of the Government Code, to read: Article 2.4. Ethics Training 53234. For the purposes of this article, the following terms have the following meanings: (a) "Legislative body" has the same meaning as specified in Section 54952. (b) "Local agency" means a city, county, city and county, charter city, charter county, charter city and county, or special district. (c) "Local agency official" means the following: (1) Any member of a local agency legislative body or any elected local agency official who receives any type of compensation, salary, or stipend 90 0 -5- Ch. 700 or reimbursement for actual and necessary expenses incurred in the performance of official duties. (2) Any employee designated by a local agency legislative body to receive the training specified under this article. (d) "Ethics laws" include, but are not limited to, the following: (1) Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict-of-interest laws. (2) Laws relating to claiming prerequisites of office, including, but not limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies. (3) Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws. (4) Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members. 53235. (a) If a local agency provides any type of compensation, salary, or stipend to a member of a legislative body, or provides reimbursement for actual and necessary expenses incurred by a member of a legislative body in the performance of official duties, then all local agency officials shall receive training in ethics pursuant to this article. (b) Each local agency official shall receive at least two hours of training in general ethics principles and ethics laws relevant to his or her public service every two years. (c) If any entity develops curricula to satisfy the requirements of this section, then the Fair Political Practices Commission and the Attorney General shall be consulted regarding the sufficiency and accuracy of any proposed course content. When reviewing any proposed course content the Fair Political Practices Commission and the Attorney General shall not preclude an entity from also including local ethics policies in the curricula. (d) A local agency or an association of local agencies may offer one or more training courses, or sets of self-study materials with tests, to meet the requirements of this section. These courses may be taken at home, in-person, or online. (e) All providers of training courses to meet the requirements of this article shall provide participants with proof of participation to meet the requirements of Section 53235.2. (f) A local agency shall provide information on training available to meet the requirements of this article to its local officials at least once annually. 53235.1. (a) Each local agency official in local agency service as of January 1, 2006, except for officials whose term of office ends before January 1, 2007, shall receive the training required by subdivision (a) of • 90 0 Ch. 700 -6- Section 53235 before January 1, 2007. Thereafter, each local agency official shall receive the training required by subdivision (a) of Section 53235 at least once every two years. (b) Each local agency official who commences service with a local agency on or after January 1, 2006, shall receive the training required by subdivision (a) of Section 53235 no later than one year from the first day of service with the local agency. Thereafter, each local agency official shall receive the training required by subdivision (a) of Section 53235 at least once every two years. (c) A local agency official who serves more than one local agency shall satisfy the requirements of this article once every two years without regard to the number of local agencies with which he or she serves. 53235.2. (a) A local agency that requires its local agency officials to complete the ethical training prescribed by this article shall maintain records indicating both of the following: (1) The dates that local officials satisfied the requirements of this article. (2) The entity that provided the training. (b) Notwithstanding any other provision of law, a local agency shall maintain these records for at least five years after local officials receive the training. These records are public records subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1). SEC. 6. Section 6060 of the Harbors and Navigation Code is amended to read: 6060. The commissioners shall serve without salary until the yearly gross income of the district, exclusive of taxes levied by the district, exceeds twenty thousand dollars ($20,000) per year, when the board may, by ordinance, fix their salaries, which shall not exceed the sum of six hundred dollars ($600) per month each. In addition to any salary received pursuant to this section, the commissioners shall be allowed any actual and necessary expenses incurred in the performance of their duties. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 7. Section 7047 of the Harbors and Navigation Code is amended to read: 7047. Each director shall receive a sum as may be fixed by the board, not exceeding fifty dollars ($50) for each meeting of the board attended by him or her, for not exceeding four meetings in any calendar month. A director may also receive traveling and other expenses incurred by him or her when performing duties for the district other than attending board meetings. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement is 90 0 -7- Ch. 700 for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 8. Section 2030 of the Health and Safety Code is amended to read: 2030. (a) The members of the board of trustees shall serve without compensation. (b) The members of the board of trustees may receive their actual and necessary traveling and incidental expenses incurred while on official business. In lieu of paying for actual expenses, the board of trustees may by resolution provide for the allowance and payment to each trustee a sum not to exceed one hundred dollars ($100) per month for expenses incurred while on official business. A trustee may waive the payments permitted by this subdivision. (c) Notwithstanding subdivision (a), the secretary of the board of trustees may receive compensation in an amount determined by the board of trustees. (d) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 9. Section 2851 of the Health and Safety Code is amended to read: 2851. The members of the district board shall hold office at the pleasure of the board of supervisors. They shall serve without compensation, but shall be allowed their necessary traveling and other expenses incurred in performance of their official duties. In lieu of expenses, the district board may, by resolution, provide for the allowance and payment to each member of the board of a sum not exceeding one hundred dollars ($100) as expenses incurred in attending each business meeting of the board. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 10. Section 4733 of the Health and Safety Code is amended to read: 4733. (a) The district board may fix the amount of compensation per meeting to be paid each member of the board for services for each meeting attended by the member. Subject to subdivision (b), the compensation shall not exceed one hundred dollars ($100) for each meeting of the district board attended by the member or for each day's service rendered as a member by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incident thereto. (b) The district board, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the compensation received by the district board members above the amount of one hundred dollars ($100) per day. (c) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part I of Division 2 of Title 5 of the Government Code. 0 90 Ch. 700 -8- (d) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 11. Section 4733.5 of the Health and Safety Code is amended to read: 4733.5. Where two or more county sanitation districts have joined in the purchase, ownership, use, construction, maintenance, or operation of a sewerage system, or sewage disposal or treatment plant, or refuse transfer or disposal system, or both, either within or without the districts, or have so joined for any combination of these purposes, as provided in Section 4742, and the districts hold their meetings jointly, and one or more of the directors serve as a director on more than one of these districts meeting jointly, the districts may, by joint resolution approved by each district, limit the compensation of a director to compensation equal to not more than fifty dollars ($50) for each jointly held meeting attended by him or her, not to exceed one hundred dollars ($100) in any one month for attendance at jointly held meetings. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. SEC. 12. Section 6489 of the Health and Safety Code is amended to 'read: 6489. (a) Subject to subdivision (b), each of the members of the board shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incident thereto. (b) The district board, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the compensation received by board members above the amount of one hundred dollars ($100) per day. (c) The secretary of the sanitary board shall receive compensation to be set by the sanitary district board, which compensation shall be in lieu of any other compensation to which he or she may be entitled by reason of attendance at the meeting or meetings of the sanitary board. (d) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. (e) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 13. Section 9031 of the Health and Safety Code is amended to read: 9031. (a) The board of trustees may provide, by ordinance or resolution, that each of its members may receive compensation in an amount not to exceed one hundred dollars ($100) for attending each 0 90 • -9- Ch. 700 meeting of the board. A member of the board of trustees shall not receive compensation for more than four meetings of the board in a month. (b) The board of trustees, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the amount of compensation received for attending meetings of the board. (c) In addition, members of the board of trustees may receive their actual and necessary traveling and incidental expenses incurred while on official business other than a meeting of the board. (d) A member of the board of trustees may waive any or all of the payments permitted by this section. (e) For the purposes of this section, a meeting of the board of trustees includes, but is not limited to, regular meetings, special meetings, closed sessions, emergency meetings, board field trips, district public hearings, or meetings of a committee of the board. (f) For purposes of this section, the determination of whether a trustee's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. (g) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 14. Section 13857 of the Health and Safety Code is amended to read: 13857. (a) Subject to subdivision (b), each member of the district board may receive compensation in an amount set by the district board not to exceed one hundred dollars ($100) for attending each meeting of the district board. The number of meetings for which a member of the board of directors may receive compensation shall not exceed four meetings in any calendar month. (b) The district board, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the compensation received by the district board members above the amount prescribed by subdivision (a). (c) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. SEC. 15. Section 13866 of the Health and Safety Code is amended to read: 13866. A district may authorize its directors and employees to attend professional or vocational meetings and pay their actual and necessary traveling and incidental expenses while on official business. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 16. Section 32103 of the Health and Safety Code is amended to read: 0 90 L J Ch. 700 _10- 32103. The board of directors shall serve without compensation except that the board of directors, by a resolution adopted by a majority vote of the members of the board, may authorize the payment of not to exceed one hundred dollars ($100) per meeting not to exceed five meetings a month as compensation to each member of the board of directors. Each member of the board of directors shall be allowed his or her actual necessary traveling and incidental expenses incurred in the performance of official business of the district as approved by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part I of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code, SEC. 17. Section 1197 of the Military and Veterans Code is amended to read: 1197. The board shall consist of five members who shall be registered electors residing within the district or proposed district at the time of their election and shall be elected by the qualified electors of the district. A majority of the seats on the board shall be designated for veterans, as defined in Section 940. Any board seat that is so designated, but is not currently filled by a qualifying individual, shall be filled by a qualified individual at the next election at which that seat is to be filled. Members shall serve without compensation, but shall be entitled to actual and necessary expenses incurred in the performance of duties. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 18. Section 5536 of the Public Resources Code is amended to read: 5536. (a) The board shall establish rules for its proceedings. (b) The board may provide, by ordinance or resolution, that each of its members may receive an amount not to exceed one hundred dollars ($100) per day for each attendance at a meeting of the board. For purposes of this section, a meeting of the board includes, but is not limited to, closed sessions of the board, board field trips, district public hearings, or meetings of a committee of the board. The maximum compensation allowable to a board member on any given day shall be one hundred dollars ($100). Board members shall not receive any other compensation for meetings, and no board member shall receive more than five hundred dollars ($500) compensation under this section in any one calendar month, except that board members of the East Bay Regional Park District may receive compensation for not more than 10 days in any one calendar month. A board member may elect to waive the per diem. In addition, the board may provide, by ordinance or resolution, that each of its members not otherwise eligible for an employer-paid or partially employer-paid group medical or group dental plan, or both, may participate in any of those plans available to permanent employees of the district on the same terms available to those district employees or on terms and conditions as • 90 0 _ 11 _ Ch. 700 the board may determine. A board member who elects to participate in any plan may also elect to have the premium for the plan charged against his or her per diem and may further elect to waive the balance of the per diem. (c) All vacancies on the board shall be filled in accordance with the requirements of Section 1780 of the Government Code, except that, in the case of vacancies caused by the creation of new wards or subdistricts, the directors shall, prior to the vacancies being filled, determine by lot, for the purpose of fixing the terms of the first directors to be elected to the wards or subdistricts, which ward or subdistrict shall have a four-year term and which ward or subdistrict shall have a two-year term. The persons who fill the vacancies caused by the establishment of new wards or subdistricts shall hold office until the next general election and until their successors are elected and qualified for the terms previously determined by lot. (d) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part I of Division 2 of Title 5 of the Government Code. SEC. 19. Section 5536.5 of the Public Resources Code is amended to read: 5536.5. Members of the board of directors may be allowed actual necessary traveling and incidental expenses incurred in the performance of official business of the district as approved by the district board. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 20. Section 5784.15 of the Public Resources Code is amended to read: 5784.15. (a) The board of directors may provide, by ordinance or resolution, that each of its members may receive compensation in an amount not to exceed one hundred dollars ($100) for attending each meeting of the board. The board of directors, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the amount of compensation received for attending meetings of the board. (b) The maximum compensation in any calendar month shall be five hundred dollars ($500). (c) In addition, members of the board of directors may receive their actual and necessary traveling and incidental expenses incurred while on official business. (d) A member of the board of directors may waive the compensation. (e) For the purposes of this section, a meeting of the board of directors includes, but is not limited to, regular meetings, special meetings, closed sessions, emergency meetings, board field trips, district public hearings, or meetings of a committee of the board. (f) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part I of Division 2 of Title 5 of the Government Code. 0 90 • Ch. 700 -12- (g) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 21. Section 9303 of the Public Resources Code is amended to read: 9303. The directors shall receive no compensation for their services as such, but each shall be allowed reasonable and necessary expenses incurred in attendance at meetings of the directors or when otherwise engaged in the work of the district at the direction of the board of directors. The directors shall fix the amount allowed for necessary expenses, but no director shall be appointed to any position for which he or she would receive compensation as a salaried officer or employee of the district. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 22. Section 11908 of the Public Utilities Code is amended to read: 11908. The board shall establish rules for its proceedings and may provide, by ordinance or resolution, that each member shall receive for each attendance at the meetings of the board, or for each day's service rendered as a director by request of the board, the sum of one hundred dollars ($100). No director shall receive any other compensation, nor receive pay for more than six days in any one calendar month. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. SEC. 23. Section 11908.1 of the Public Utilities Code is amended to read: 11908.1. (a) Notwithstanding Section 11908, a district with a board having seven directors may provide, by resolution or ordinance, that each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at public meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, or, in lieu of that compensation, a salary of not to exceed six hundred dollars ($600) per month subject to annual adjustments pursuant to subdivision (b), together with any expenses incurred in the performance of his or her duties required or authorized by the board. No resolution or ordinance establishing compensation pursuant to this subdivision shall provide for any automatic increase in that compensation. (b) Any district which adopts salaries for directors pursuant to subdivision (a) may increase those salaries by not more than 5 percent for each calendar year following the operative date of the last adjustment, commencing with the calendar year following adoption of the salary or increase. (c) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. • 90 • -13- Ch. 700 SEC. 24. Section 11908.2 of the Public Utilities Code is amended to read: 11908.2. Notwithstanding Section 11908, the board of a district which has owned and operated an electric distribution system for at least eight years and has a population of 250,000 or more may provide, by ordinance or resolution, that each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at public meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of 10 days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. The board may, by resolution or ordinance, increase the compensation per day by not more than 5 percent for each calendar year following the operative date of the last adjustment, commencing with the 1988 calendar year. No resolution or ordinance establishing compensation pursuant to this subdivision shall provide for any automatic increase in that compensation. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 25. Section 16002 of the Public Utilities Code is amended to read: 16002. Each member of the board shall receive the compensation that the board by ordinance provides, not exceeding four thousand eight hundred dollars ($4,800) a year. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. SEC. 26. Section 22407 of the Public Utilities Code is amended to read: 22407. Each member of the board of directors shall receive compensation in an amount not to exceed one hundred dollars ($100) for each attendance at the meeting of the board held within the district, which amount shall be fixed from time to time by the board. No director, however, shall receive pay for more than four meetings in any calendar month. Each director shall be allowed, with the approval of the board, all traveling and other expenses necessarily incurred by the member in the performance of the member's duties. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. • 90 • Ch. 700 -14- SEC. 27. Section 20201 of the Water Code is amended to read: 20201. Notwithstanding any other provision of law, the governing board of any water district may, by ordinance adopted pursuant to this chapter, provide compensation to members of the governing board, unless any compensation is prohibited by its principal act, in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board, or for each day's service rendered as a member of the board by request of the board, and may, by ordinance adopted pursuant to this chapter, in accordance with Section 20202, increase the compensation received by members of the governing board above the amount of one hundred dollars ($100) per day. It is the intent of the Legislature that any future increase in compensation received by members of the governing board of a water district be authorized by an ordinance adopted pursuant to this chapter and not by an act of the Legislature. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. SEC. 28. Section 20201.5 is added to the Water Code, to read: 20201.5. Reimbursement for expenses of members of a governing board of a water district is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 29. Section 21166 of the Water Code is amended to read: 21166. Notwithstanding any other provision of law, a director, for sitting on the board or acting under its orders, shall receive both of the following: (a) (1) Except as specified in paragraphs (2) and (3), compensation not to exceed one hundred dollars ($100) per day, not exceeding six days in any calendar month. (2) In districts that produce or distribute electric power, one of the following methods of compensation: (A) Compensation not to exceed one hundred dollars ($100) per day. (B) A monthly salary of not to exceed six hundred dollars ($600) per month. (C) Annual compensation not to exceed fifteen thousand dollars ($15,000). Any annual compensation pursuant to this subparagraph shall be fixed by the adoption of an ordinance pursuant to Sections 20203 to 20207, inclusive. (3) Districts containing 500,000 acres or more are governed by Section 22840. (b) Actual and necessary expenses when acting under the orders of the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Pan I of Division 2 of Title 5 of the Government Code. Reimbursement for these • 90 • -Is- Ch. 700 expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 30. Section 30507 of the Water Code is amended to read: 30507. Each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 31. Section 30507.1 of the Water Code is amended to read: 30507.1. Each director of the Contra Costa Water District shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board and for each day's service rendered as a director by request of the board, not exceeding a total of 10 days in any calendar month, together with any expenses incurred in the performance of duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 32. Section 34741 of the Water Code is amended to read: 34741. Until their compensation is fixed by the adoption of bylaws, the officers shall receive the following compensation for their services: (a) The secretary, tax collector, treasurer, and assessor, such sums as shall be fixed by the board. (b) Each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 33. Section 40355 of the Water Code is amended to read: 40355. (a) A director, when sitting on the board or acting under its orders, shall receive not exceeding: • 90 L_J Ch. 700 -16- (1) One hundred dollars ($100) per day, not exceeding six days in any calendar month. (2) Ten cents ($0.10) per mile for each mile traveled from his place of residence to the office of the board. (3) Actual and necessary expenses while engaged in official business under the order of the board. (b) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Govemment Code. (c) Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 34. Section 50605 of the Water Code is amended to read: 50605. (a) Each member of the board shall receive such compensation for services actually and necessarily performed as the board determines to be just and reasonable, and shall be reimbursed for expenses necessarily incurred in the performance of his duties as trustee. (b) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part I of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 35. Section 55305 of the Water Code is amended to read: 55305. (a) The board of directors may fix the compensation of its members for their services as directors not to exceed ten dollars ($10) for each meeting attended, not exceeding two meetings in any calendar month. If allowed by the board, a director shall also receive for performing duties for the district other than attending board meetings the following: (1) An amount not to exceed one hundred dollars ($100) for each day performing such duties. (2) Traveling and other expenses incurred by him or her in performing his duties. (b) For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 36. Section 56031 of the Water Code is amended to read: 56031. The district board shall have power to fix the amount of compensation per meeting to be paid each member of the board for his or her services for each meeting attended by him or her; provided, that the compensation shall not exceed ten dollars ($10) for each meeting of the district board attended by him or her, together with expenses necessarily incurred by him or her in traveling between his or her place of residence and the place of meeting. However, no member shall receive • 90 0 -17- Ch. 700 compensation for attending more than three meetings of the board during any calendar month. This compensation shall be in addition to any other fees or compensation allowed by law for the other official positions specified in Section 56030 that are occupied by members of the district board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 37. Section 60143 of the Water Code is amended to read: 60143. Each director shall receive compensation in an amount not exceeding one hundred dollars ($100) for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 38. Section 70078 of the Water Code is amended to read: 70078. Each member of the board shall receive compensation for services actually and necessarily performed, as the board determines to be just and reasonable, and shall be reimbursed for expenses necessarily incurred in the performance of his or her duties as director. The salaries of all officers and employees of the district shall be fixed and determined by the directors. The board of directors shall fix the compensation that the election officers shall receive for district elections. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 39. Section 71255 of the Water Code is amended to read: 71255. Each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. • 90 • Ch. 700 -18- SEC. 40. Section 74208 of the Water Code is amended to read: 74208. Each director shall receive compensation in an amount not to exceed one hundred dollars ($100) per day for each day's attendance at meetings of the board or for each day's service rendered as a director by request of the board, not exceeding a total of six days in any calendar month, together with any expenses incurred in the performance of his or her duties required or authorized by the board. For purposes of this section, the determination of whether a director's activities on any specific day are compensable shall be made pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3 of the Government Code. SEC. 41. The Legislature finds and declares that transparency in the activities of local governments is a matter of statewide concern and not merely a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution, Therefore, this act shall apply to charter cities, charter counties, and charter cities and counties. O i 90 AB 123 )4 Assembly Bill -Bill W lysis 0 Page 1 of 5 AB 1234 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1234 (Salinas) As Amended August 22, 2005 Majority vote (ASSEMBLY 171-0 ((April 21, ISENATE• 132-2 I(August 29, 1 I 1 12005) I 1 12005) 1 Original Committee Reference: L. GOV. SUMMARY Clarifies the rules pertaining to compensation to members of a local government legislative body for attendance at authorized meetings and conferences; requires the establishment of guidelines for reimbursement of members of a local government legislative body for actual and necessary expenses incurred in the performance of official duties; and, establishes provisions for ethics training for local government officials and designated employees. The Senate amendments 1)Add specifications to the types of ethics laws and general ethics principles that local government officials should receive training on. 2)Specify that if any entity develops curricula to satisfy the requirements of the ethics portion of this bill, then the Fair Political Practices Commission (FPPC) and the Attorney General (AG) shall be consulted regarding the sufficiency and accuracy of any proposed course content. 3)Clarify that "local agency" also includes a charter county and a charter city and county. 4)Specify that members of a legislative body should use government and group rates offered by a provider of transportation or lodging service for travel and lodging when available. 5)Allow each local agency legislative body to choose which employees must receive ethics training. 6)Clarify that when the AG and FPPC are reviewing a local hr+r.•//iinxnv lan;nfn ra rtrnrlnnh/hill/acmlah 1 ?01-1 )5Wgh 1 7'14 rfA ?OOSOR29 195819 12/19/2005 AB 1234 Assembly Bill - Bill lysis Page 2 of 5 AB 1234 Page 2 agency's curricula for ethics training they shall not preclude the local agency from including local ethics policies in their training curriculum. 7)Insert cross-references in various local government principal acts. 8)Make various other technical changes. AS PASSED BY THE ASSEMBLY , this bill: 1)Defined a "governing body" as the board of supervisors in the case of a county or city and county, the city council or board of trustees in the case of a city, and the board of directors or other governing body in the case of a district or other public agency. 2)Defined "local agency" as a city, county, city and county, charter city, or special district. 3)Specified the types of occurrences that a legislative body member may attend and receive compensation from a local agency. 4)Authorized a local agency to pay compensation for other types of occurrences if the legislative body adopts a written policy in a regular public meeting specifying other specific occasions for which a legislative body member may receive payment. 5)Specified that local officials who receive a regular salary for performance of official duties are exempt from the above requirements. 6)Stipulated that these compensation provisions are additional to other laws authorizing payment of compensation to members of legislative bodies of local agencies. 7)Authorized a local agency to reimburse members of a legislative body for actual and necessary expenses incurred in the performance of official duties. 8)Required that, if a local agency reimburses members of a legislative body for expenses, the governing bodies of the local agency must adopt a written policy in a regular public meeting specifying the types of occurrences for which a AB 1234 Page 3 legislative body member may receive reimbursement of travel 1 ?14 Ufa ?nn;nR~9 1 R>R,9 12/19/2005 AB 1234 Assembly Bill - B1110lysis related expenses. Page 3 of 5 9)Authorized a governing body to either adopt a travel reimbursement policy that specifies the procedures and reimbursement rates for meals, lodging, and travel, or use Internal Revenue Service (IRS) rates for reimbursement of meals, lodging, and travel. 10)Specified that if the lodging is in connection with a conference, lodging costs shall not exceed the group rate published by the conference sponsor, if available. ll)Required that any expenses incurred that fall outside the provisions of the adopted written policy or the IRS guidelines can only be eligible for reimbursement upon approval by the governing body in a regular public meeting before the expense is incurred. 12)Required local agencies to provide expense report forms to be filed by the members of the legislative body for reimbursement of travel-related expenses, and states that these forms are public records subject to disclosure under the California Public Records Act. 13)Specified penalty provisions for misuse of public resources and falsifying expense reports; which may include loss of reimbursement privileges, restitution to the local agency, or prosecution. 14)Required local agency officials and designated employees to complete a course in ethics training within the first year of commencing service to that local agency, and to complete a course in the ethical standards of conduct once every two years thereafter. 15)Made the ethics training requirement applicable only if a local agency provides any type of compensation or salary to members of a legislative body for the performance of official duties or if a local agency reimburses members of a legislative body for actual and necessary expenses incurred in the performance of official duties. 16)Specified that the curriculum for the ethics training shall be jointly developed by FPPC and the AG. AB 1234 Page 4 17)Specified that a local agency may either offer the ethics training course or identify online courses, conferences, seminars, or other courses that meet the requirements of this section. anv/rnih/hill/acm/ah 1701-1?SO/2h 12114 cfa 20050829 185839 12/19/2005 AB 1234 Assembly Bill - Bill &lysis 0 Page 4 of 5 18)Required local agencies to maintain records of completion of ethics training for its legislative body members and designated employees. FISCAL EFFECT The Senate Committee on Appropriations determined that any additional state costs created by this bill are not significant and do not and will not require the appropriation of additional state funds, and that this bill will cause no significant reduction in revenues, pursuant to Senate Rule 28.8. COMMENTS Local government reform has become a "hot topic" over the past few years. The incidents that occurred in the Sacramento Suburban Water District, Otay Water District, City of Elk Grove (although they were not charged), and many others have caused a flurry of questions on how local officials are using public resources and on the ability of local officials to follow the ethical guidelines set forth in statute. Cities, counties, and special districts have all seen an increase in the misuse of public resources and the consistent failure to follow conflict of interest laws from their own public officials. As a result of these and other instances, the reputations of many local governments that have done nothing wrong have been damaged due to the actions of a few "bad actors." This bill was drafted following suggestions from the State Auditor's report on Independent Special Water Districts, and closely follows the guidelines established in the Institute for Local Self Government's publication entitled "Of Cookie Jars And Fishbowls: A Public Official's Guide To Use Of Public Resources" and the Association of California Water Agencies' "Guidelines of Conduct: A Primer for Public Water Agency Officials." Both of these resources are currently being used by many local governments when drafting travel and ethics policies. Local government officials are currently required to follow the guidelines of conduct established in the Reform Act and to submit a Statement of Economic Interest to the FPPC, but they AB 1234 Page 5 are not required to be trained on these statutes or on standards of ethical conduct. Such training is required at the state level. This bill would extend this ethics training to local government officials. Similar legislation: SB 393 (Ortiz), pending in the Senate, would establish new requirements for special districts, including ethics training for special district officials, audit standards, limits on board members' compensation, and Gnv/nrnh/hi11/aem/ah 1201-1250/ab 1234 da 20050829 185839 12/19/2005 AB 1234 Assembly Bill - Bill `ilysis 0 Page 5 of 5 "whistleblower" provisions. In addition, it would require the State Controller to oversee local audits of special districts and authorizes Controller audit reviews of special districts. SB 393 is identical to SB 1272 (Ortiz of 2004) which passed the Senate Local Government Committee, but failed in the Senate Appropriations Committee and was granted reconsideration. Analysis Prepared by Katie Kolitsos / L. GOV. / (916) 319-3958 FN: 0011907 ht.,•1/xnann1Painfn r.a onv/rnih/hill/acm/ah 1201-1250/ab 1234 cfa 20050829 1 S5 ;9 1 l - AB 1234 Assembly Bill - Votwormation 0 Page 1 of 1 VOTES - ROLL CALL MEASURE: AB 1234 AUTHOR: Salinas TOPIC: Local agencies: compensation DATE: 08/30/2005 LOCATION: ASM. FLOOR MOTION: AB 1234 Salinas Concurrence (AYES 76. NOES 0.) (PASS) AYES and ethics. in Senate Amendments Aghazarian Arambula Baca Bass Benoit Berg Bermudez Blakeslee Bogh Calderon Canciamilla Chan Chavez Chu Cogdill Cohn Coto Daucher De La Torre DeVore Dymally Emmerson Evans Frommer Garcia Goldberg Hancock Harman Haynes Jerome Horton Shirley Horton Houston Huff Jones Karnette Keene Klehs Koretz La Malfa La Suer Laird Leno Leslie Levine Lieber Liu Matthews Maze McCarthy Montanez Mountjoy Nakanishi Nation Nava Negrete McLeod Niello Parra Pavley Plescia Richman Ridley-Thomas Sharon Runner Ruskin Saldana Salinas Spitzer Strickland Torrico Tran Umberg Vargas Villines Walters Wolk Wyland Yee Nunez NOES ABSENT, ABSTAINING, OR NOT VOTING Oropeza Vacancy Mullin onv/nrnh/hill/ncm/ah 1?01-1?.5l1/ah 12i4 vote 20050930 0356P... 12/19/2005 AB 1234 Assembly Bill - Vo~formation Pa-e 1 of 1 VOTES - ROLL CALL MEASURE: AB 1234 AUTHOR: Salinas TOPIC: Local agencies: compensation and ethics. DATE: 08/29/2005 LOCATION: SEN. FLOOR MOTION: Assembly 3rd Reading AB1234 Salinas By Torlakson (AYES 32. NOES 2.) (PASS) AYES Aanestad Ackerman Alarcon Alquist Ashburn Battin Bowen Campbell Cedillo Chesbro Cox Denham Ducheny Dunn Figueroa Florez Hollingsworth Kehoe Kuehl Lowenthal Machado McClintock Migden Morrow Poochigian Romero Runner Scott Simitian Soto Torlakson Vincent NOES Ortiz Speier ABSENT, ABSTAINING, OR NOT VOTING Dutton Escutia Maldonado Margett Murray Perata lhttn-/huluw 1P.Rinfo rs oov/nrnh/hill/aem/ah 1701-1250/ah 1234 vote 20050929 1039A... 12/19/2005