Bill Text: CA SB1236 | 2015-2016 | Regular Session | Amended
Bill Title: Local government.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-11-30 - Died on the inactive file. [SB1236 Detail]
Download: California-2015-SB1236-Amended.html
BILL NUMBER: SB 1236 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Hernandez
FEBRUARY 18, 2016
An act to amend Section 34450 of add and
repeal Sections 34096 and 36516.7 of the Government Code,
and to add and repeal Section 1100.8 of the Public Contract Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1236, as amended, Hernandez. Local government.
Existing law The California Constitution
authorizes any city or city and county to enact, amend, or
repeal a charter for its own government, as specified. A charter
adopted pursuant to these provisions supersedes general laws of the
state in regard to a municipal affair, and a city charter may specify
various matters including, but not limited to, compensation of city
employees.
This bill would, until January 1, 2028, require a city that is
incorporated to promote commerce and industry, is located wholly
within the County of Los Angeles, and had no residentially zoned land
within its boundaries as of January 1, 1992, to conduct audits
pursuant to a specified procedure and provide annual disclosures of
property owned by the city, as specified. By increasing the duties of
local officials, this bill would impose a state-mandated local
program. The bill would, until January 1, 2028, additionally prohibit
a city meeting this description from permitting more than 5% of any
cityowned housing to be occupied by a city employee or officer, or
person who contracts with the city, or their family. The bill would
provide that until January 1, 2028, the compensation for service on
the city council of a city meeting this description may not exceed
$1,000 per month.
Existing law states that the Public Contract Code is the basis of
all contracts between most public entities and their contractors and
subcontractors. Existing law further states that, with regard to
charter cities, the code applies unless there is an express exemption
or a charter city ordinance or regulation that is in direct conflict
with the code.
This bill would provide that until January 1, 2028, the Public
Contract Code applies to a city that is incorporated to promote
commerce and industry, is located wholly within the County of Los
Angeles, and had no residentially zoned land within its boundaries as
of January 1, 1992, as specified.
This bill would declare that its provisions are a matter of
statewide concern, and not a municipal affair.
This bill would make legislative findings and declarations as to
the necessity of a special statute for a city that is incorporated to
promote commerce and industry, is located wholly within the County
of Los Angeles, and had no residentially zoned land within its
boundaries as of January 1, 1992.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would make a nonsubstantive change to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The issue of corruption in small charter cities across the
state is an increasing and alarming trend, with no signs of slowing
or stopping.
(b) Small charter cities such as the City of Vernon, the City of
Bell, and the City of Industry have long histories of abuses of power
within city limits, going back decades. Those abuses include
inflated salaries for city officials, failing to establish minimum
qualifications for key positions, fiscally risky bond issuances,
misappropriation of public funds, city officials issuing loans to
themselves, failure to plan basic municipal responsibilities such as
energy purchases according to best practices, incorrectly classifying
employees to obtain higher, unearned retirement benefits, forcing
employees to work at will for the city council, buying residential
properties and renting them at below-market rents to city workers,
inadequate and self-serving contracting policies, routine violations
of conflict-of-interest policies, and little or no restrictions on
city-issued credit cards.
(c) The voter base in small charter cities is tightly managed by
city officials. The housing units within these cities are controlled
by city leaders and rented out to handpicked tenants at below-market
cost, thus keeping the voter base indebted to those in power. Efforts
to broaden the homeowning population have met with resistance from
city leaders, with officials in one city cutting power to new
residents in an effort to force them from their homes.
(d) Criminal charges have also been filed in some instances,
furthering the notion that these cities should not govern themselves.
Voter fraud, conspiracy, and misappropriation of public funds are
some of the charges that have been investigated, and are still being
investigated, in some cases.
(e) This corruption has taken a toll on voter trust, citizen
confidence, and taxpayer funds.
(f) In January 2016, an audit was released by the Controller
highlighting the lack of administrative and internal accounting
controls. Out of the 79 control elements evaluated by the Controller,
85 percent was found to be inadequate. Of the ethical components
evaluated, none were found to be adequate.
(g) Historically, cities with small population size were not
authorized to adopt a charter for local governance. However, in 1970,
the Constitution was amended to authorize any city to adopt a
charter. Since then, California's citizens have seen one after
another small charter city become mired in corruption and the leaders
of these cities enrich themselves at the expense of the California
taxpayer. Ensuring that our citizens, no matter where they live, have
an open, honest, and transparent government is a matter of statewide
concern, and not a municipal affair, and as a result the Legislature
has the authority and the responsibility to impose heightened
governing requirements. Therefore, the Legislature finds and declares
that the provisions of this act are not a municipal affair, as that
term is used in Section 5 of Article XI of the California
Constitution, but are instead a matter of statewide concern.
SEC. 2. Section 34096 is added to the
Government Code , to read:
34096. Notwithstanding any other law, all of the following shall
apply to a city that is incorporated to promote commerce and
industry, is located wholly within the County of Los Angeles, and had
no residentially zoned land within its boundaries as of January 1,
1992:
(a) No more than 5 percent of the city's total city-owned housing
may be occupied by any of the following persons:
(1) Employees or officers of the city, including the family of
employees or officers of the city.
(2) Persons that contract with the city, including employees of
persons or companies that contract with the city, and including the
family of persons who contract with the city and the family of
employees of persons or companies that contract with the city.
(b) The city shall make an annual disclosure of all property owned
by the city, wherever that property is situated.
(c) The city shall conduct an annual audit that utilizes internal
control components and elements based on the guidelines established
by the Government Accountability Office's Internal Control Management
and Evaluation Tool. The city shall substantially comply with those
guidelines.
(d) This section shall remain in effect only until January 1,
2028, and as of that date is repealed.
SEC. 3. Section 36516.7 is added to the
Government Code , to read:
36516.7. (a) Notwithstanding any other law, the compensation for
service on the city council of a city that is incorporated to promote
commerce and industry, is located wholly within the County of Los
Angeles, and had no residentially zoned land within its boundaries as
of January 1, 1992, shall not exceed $1,000 per month.
(b) This section shall remain in effect only until January 1,
2028, and as of that date is repealed.
SEC. 4. Section 1100.8 is added to the
Public Contract Code , to read:
1100.8. (a) Notwithstanding Section 1100.7, this code shall apply
to contracts entered into by a city that is incorporated to promote
commerce and industry, is located wholly within the County of Los
Angeles, and had no residentially zoned land within its boundaries as
of January 1, 1992, including, but not limited to, contracts for the
provision of waste collection and management services.
(b) This section shall remain in effect only until January 1,
2028, and as of that date is repealed.
SEC. 5. The Legislature finds and
declares that a special law is necessary and that a general law
cannot be made applicable within the meaning of Section 16 of Article
IV of the California Constitution because of the concerns related to
the governance of a city that is incorporated to promote commerce
and industry, is located wholly within the County of Los Angeles, and
had no residentially zoned land within its boundaries as of January
1, 1992.
SEC. 6. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SECTION 1. Section 34450 of the Government Code
is amended to read:
34450. Any city or city and county may enact, amend, or repeal a
charter for its own government pursuant to this article or Article 3
(commencing with Section 9255) of Chapter 3 of Division 9 of the
Elections Code.
