RulesCommunications Highlights 2006 0302

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MEMORANDUM DATE: March 2, 2006 TO: San Leandro City Council Rules and Communication Committee FROM: Jayne Williams, City Attorney RE: Local Government Sunshine Bill (AB 1234) SUMMARY As a result of recent news reports of incidents involving the misuse of public funds by local government officials, Governor Schwarzenegger recently signed into law the "Local Government Sunshine Bill" Assembly Bill 1234 (D-Salinas). Assembly Bill 1234 went into effect on January 1, 2006 and will affect local elected and appointed officials who receive compensation and reimbursements for their services. The Sunshine Bill requires that local agencies that reimburse members of a legislative body adopt a written policy "specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement relating to travel, meals, lodging, and other actual and necessary expenses" (Gov. Code §53232.2(b).)' In addition to the restrictions imposed on compensation and the reimbursement of expenses for members of local legislative bodies, the Sunshine Bill also creates a new ethics training requirement for certain local public officials. The following memorandum sets forth both the reimbursement and ethics requirements established by the Sunshine Bill. BACKGROUND 1. New Reimbursement Restrictions As a general rule, a city may reimburse its council members and other members of local legislative bodies for their actual and necessary expenses incurred in the performance of their official duties, so long as such reimbursements are permitted by California law. The Sunshine Bill builds on this general rule by now requiring those cities that do provide such reimbursements to adopt written policies, in a public meeting, that specifically list the types of "occurrences" that would qualify a council member or other covered official to receive reimbursements for expenses relating to travel, meals, lodging and other actual and necessary expenses. Such occurrences must arise during or be a part of that person's performance of official duties. 1 All statutory references are to the Government Code unless otherwise indicated.