AB 2946: District discretionary funds: County of Orange.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-09-14
Current Status:
Passed
(2024-09-14: Chaptered by Secretary of State - Chapter 249, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill would require Orange County supervisors to get a majority vote of the board before awarding their district discretionary funds — money supervisors are given to award to community or nonprofit groups. It also requires the board to post a quarterly online log showing costs, timelines, purpose, eligibility, and amounts paid to contractors, and it bars supervisors who are candidates with an opponent from taking actions related to spending those funds in the 90 days before an election (they may still attend events not held in their honor).
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would prohibit an Orange County Board of Supervisors member from awarding district discretionary funds to a community organization or a nonprofit organization unless the board of supervisors approves, by a majority vote, that award. The bill would require the Orange County Board of Supervisors to post on its internet website a log of appropriated district discretionary funds at the end of each quarter, as specified. The bill would prohibit, within the 90 days preceding an election, an Orange County Board of Supervisors member who is on the ballot as an Orange County Board of Supervisors member candidate and has an opponent on that ballot from taking any action related to spending district discretionary funds, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would prohibit an Orange County Board of Supervisors member from awarding district discretionary funds to a community organization or a nonprofit organization unless the board of supervisors approves, by a majority vote, that award. The bill would require the Orange County Board of Supervisors to post on its internet website a log of appropriated district discretionary funds at the end of each quarter, as specified. The bill would prohibit, within the 90 days preceding an election, an Orange County Board of Supervisors member who is on the ballot as an Orange County Board of Supervisors member candidate and has an opponent on that ballot from taking any action related to spending district discretionary funds, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would require the board of supervisors of the County of Orange to only appropriate prohibit an Orange County Board of Supervisors member from awarding district discretionary funds if to a community organization or a nonprofit organization unless the board of supervisors approves, by a majority vote, appropriating the district discretionary funds. that award. The bill would require the board of supervisors of the county Orange County Board of Supervisors to post on its internet website a log of appropriated district discretionary funds at the end of each quarter, as specified. The bill would prohibit, within the 90 days preceding an election, a member of the board of supervisors of the county that is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot from taking specified actions relating to district discretionary funds, except as specified, including placing an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board of supervisors of the county. an Orange County Board of Supervisors member who is on the ballot as an Orange County Board of Supervisors member candidate and has an opponent on that ballot from taking any action related to spending district discretionary funds, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would require the board of supervisors of the County of Orange to only appropriate district discretionary funds if the board of supervisors approves, by a majority vote, appropriating the district discretionary funds. The bill would require the board of supervisors of the county to post on its internet website a log of appropriated district discretionary funds at the end of each quarter, as specified. The bill would prohibit, within the 90 days of preceding an election, a member of the board of supervisors of the county that is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot from taking specified actions relating to district discretionary funds, except as specified, including placing an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board of supervisors of the county.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would require the board of supervisors of the County of Orange to only appropriate and expend district discretionary funds if the board of supervisors approves, by a majority vote, appropriating and expending the district discretionary funds. The bill would require the board of supervisors of the county to post on its internet website a log of appropriated and expended district discretionary funds at the end of each quarter. quarter, as specified. The bill would prohibit, within 90 days of an election, a member of the board of supervisors of the county that is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot from taking specified actions relating to district discretionary funds, including placing an agenda item seeking approval to appropriate and expend district discretionary funds on the agenda for a meeting of the board of supervisors of the county. By imposing new requirements on the county, the bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
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 the statutory provisions noted above.Existing law authorizes a county board of supervisors to appropriate and expend county general fund money to establish county programs or fund other programs to meet various social needs of the county population and the needs of physically, mentally, and financially handicapped persons and aged persons. Existing law authorizes the board of supervisors to contract with other public agencies, private agencies, or individuals to operate programs that the board of supervisors determines will serve public purposes.
This bill would require the board of supervisors of the County of Orange to only appropriate and expend discretionary funds if the board of supervisors approves, by a majority vote, appropriating and expending the discretionary funds. The bill would require the board of supervisors of the county to post on its internet website a log of appropriated and expended discretionary funds at the end of each quarter. The bill would prohibit, within 90 days of an election, a member of the board of supervisors of the county that is on a ballot as a candidate and has an opponent on that ballot from taking specified actions relating to discretionary funds, including placing an agenda item seeking approval to appropriate and expend discretionary funds on the agenda for a meeting of the board of supervisors of the county. By imposing new requirements on the county, the bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.
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 the statutory provisions noted above.
Existing law generally regulates state government entities and defines the term person for that purpose.This bill would make a nonsubstantive change to that definition.Existing law generally regulates state government entities and defines the term person for that purpose.
This bill would make a nonsubstantive change to that definition.
(a)For purposes of this section, the following definitions apply:
(1)Board means the board of supervisors of the county.
(2)County means the County of Orange.
(3)District discretionary funds means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b)A member of the board shall not award district discretionary funds to a community organization or a nonprofit organization unless the board approves, by a majority vote, that award.
(c)The board shall post on its internet website a log of appropriated district discretionary funds at the end of each quarter, including all of the following:
(1)The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2)The spending timeline of those funds.
(3)The purpose of program funding.
(4)The eligibility requirements to receive funding.
(5)Total dollars awarded to the entity that is contracted with the county.
(d)(1)Within the 90 days preceding an election, a member of the board who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any action related to spending district discretionary funds, including, but not limited to, any of the following actions:(A)Place an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board.(B)Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.(C)Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.(2)Notwithstanding paragraph (1), members of the board may attend events hosted by entities who received district discretionary funds, so long as the event is not directly held in the supervisors honor.
(e)Nothing in this section shall be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing district discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
(a)For purposes of this section, the following definitions apply:
(1)Board means the board of supervisors of the county.
(2)County means the County of Orange.
(3)District discretionary funds means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b)A member of the board shall not award district discretionary funds to a community organization or a nonprofit organization unless the board approves, by a majority vote, that award.
(c)The board shall post on its internet website a log of appropriated district discretionary funds at the end of each quarter, including all of the following:
(1)The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2)The spending timeline of those funds.
(3)The purpose of program funding.
(4)The eligibility requirements to receive funding.
(5)Total dollars awarded to the entity that is contracted with the county.
(d)(1)Within the 90 days preceding an election, a member of the board who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any action related to spending district discretionary funds, including, but not limited to, any of the following actions:(A)Place an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board.(B)Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.(C)Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.(2)Notwithstanding paragraph (1), members of the board may attend events hosted by entities who received district discretionary funds, so long as the event is not directly held in the supervisors honor.
(e)Nothing in this section shall be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing district discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
(a)For purposes of this section, the following definitions apply:
(1)Board means the board of supervisors of the county.
(2)County means the County of Orange.
(3)District discretionary funds means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b)The A member of the board shall only appropriate not award district discretionary funds if to a community organization or a nonprofit organization unless the board approves, by a majority vote, appropriating the district discretionary funds. that award.
(c)The board shall post on its internet website a log of appropriated district discretionary funds at the end of each quarter, including all of the following:
(1)The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2)The spending timeline of those funds.
(3)The purpose of program funding.
(4)The eligibility requirements to receive funding.
(5)Total dollars awarded to the entity that is contracted with the county.
(d)(1)Within the 90 days preceding an election, a member of the board who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any action related to spending district discretionary funds, including, but not limited to, any of the following actions:(A)Place an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board.(B)Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.(C)Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.(2)This subdivision shall not apply to any project that was completed within the 90 days preceding an election described in paragraph (1) and that received funds before that 90-day period.(2)Notwithstanding paragraph (1), members of the board may attend events hosted by entities who received district discretionary funds, so long as the event is not directly held in the supervisors honor.
(e)Nothing in this section shall be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing district discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
(a)For purposes of this section, the following definitions apply:
(1)Board means the board of supervisors of the county.
(2)County means the County of Orange.
(3)District discretionary funds means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b)The board shall only appropriate district discretionary funds if the board approves, by a majority vote, appropriating the district discretionary funds.
(c)The board shall post on its internet website a log of appropriated district discretionary funds at the end of each quarter, including all of the following:
(1)The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2)The spending timeline of those funds.
(3)The purpose of program funding.
(4)The eligibility requirements to receive funding.
(5)Total dollars awarded to the entity that is contracted with the county.
(d)(1)Within the 90 days of preceding an election, a member of the board who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any of the following actions:
(1)(A)Place an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board.
(2)(B)Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.
(3)(C)Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
(2)This subdivision shall not apply to any project that was completed within the 90 days preceding an election described in paragraph (1) and that received funds before that 90-day period.
(e)Nothing in this section shall be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing district discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
(a)For purposes of this section, the following definitions apply:
(1)Board means the board of supervisors of the county.
(1)(2)County means the County of Orange.
(2)Discretionary funds means the discretionary or unrestricted funds from the general fund of the county.(3)District discretionary funds means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b)The board of supervisors of the county shall only appropriate and expend district discretionary funds if the board of supervisors approves, by a majority vote, appropriating and expending the district discretionary funds.
(c)The board of supervisors of the county shall post on its internet website a log of appropriated and expended district discretionary funds at the end of each quarter. quarter, including all of the following:
(1)The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2)The spending timeline of those funds.
(3)The purpose of program funding.
(4)The eligibility requirements to receive funding.
(5)Total dollars awarded to the entity that is contracted with the county.
(d)Within 90 days of an election, a member of the board of supervisors of the county who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any of the following actions:
(1)Place an agenda item seeking approval to appropriate and expend district discretionary funds on the agenda for a meeting of the board of supervisors of the county. board.
(2)Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.
(3)Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
(e)Nothing in this section shall be construed to limit the existing authority of the county board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
SEC. 3.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.(a)For purposes of this section, the following definitions apply:
(1)County means the County of Orange.
(2)Discretionary funds means the discretionary or unrestricted funds from the general fund of the county.
(b)The board of supervisors of the county shall only appropriate and expend discretionary funds if the board of supervisors approves, by a majority vote, appropriating and expending the discretionary funds.
(c)The board of supervisors of the county shall post on its internet website a log of appropriated and expended discretionary funds at the end of each quarter.
(d)Within 90 days of an election, a member of the board of supervisors of the county who is on a ballot as a candidate and has an opponent on that ballot shall not take any of the following actions:
(1)Place an agenda item seeking approval to appropriate and expend discretionary funds on the agenda for a meeting of the board of supervisors of the county.
(2)Announce or participate in a press release announcing the awarding of discretionary funds previously approved by the board.
(3)Participate in or make a ceremonial presentation awarding previously approved discretionary funds.
(e)Nothing in this section shall be construed to limit the existing authority of the county from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
SEC. 2.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
SEC. 3.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 17 of the Government Code is amended to read:17.Person includes a person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company.Person includes any a person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company.
|
Date
|
Status
|
|---|---|
| Sep 14, 2024 | Chaptered by Secretary of State - Chapter 249, Statutes of 2024. |
| Sep 14, 2024 | Approved by the Governor. |
| Sep 6, 2024 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 28, 2024 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). |
| Aug 28, 2024 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. |
| Aug 28, 2024 | Assembly Rule 77 suspended. |
| Aug 27, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0.). |
| Aug 26, 2024 | Read second time. Ordered to third reading. |
| Aug 23, 2024 | Read third time and amended. Ordered to second reading. |
| Jun 27, 2024 | Read second time and amended. Ordered to third reading. |
| Jun 26, 2024 | From committee: Amend, and do pass as amended. (Ayes 6. Noes 1.) (June 26). |
| May 29, 2024 | Referred to Com. on L. GOV. |
| May 21, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 20, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 1. Page 5312.) |
| May 7, 2024 | Read second time. Ordered to third reading. |
| May 6, 2024 | Withdrawn from committee. |
| May 6, 2024 | Ordered to second reading. |
| Apr 30, 2024 | Re-referred to Com. on APPR. |
| Apr 29, 2024 | Read second time and amended. |
| Apr 25, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 24). |
| Apr 1, 2024 | Re-referred to Com. on L. GOV. |
| Mar 21, 2024 | Referred to Com. on L. GOV. |
| Mar 21, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Feb 17, 2024 | From printer. May be heard in committee March 18. |
| Feb 16, 2024 | Read first time. To print. |
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Date
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Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Aug 28, 2024 | AB 2946 Valencia Concurrence in Senate Amendments | Assembly Floor |
Passed |
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| Aug 27, 2024 | Assembly 3rd Reading AB2946 Valencia et al. By Umberg | Senate Floor |
Passed |
|
| Jun 26, 2024 | Do pass as amended | Senate Standing Committee on Local Government |
Passed |
|
| May 20, 2024 | AB 2946 Valencia Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 24, 2024 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Abound Food Care | ** Against | |
| Boys & Girls Club of Fullerton | ** Against | |
| California State Association Of Counties | * Against | Apr 24, 2024 |
| County of Orange | ** Against | |
| Friendly Center | ** Against | |
| Grupo De Autismo Angeles | ** Against | |
| HomeAid Orange County | ** Against | |
| Kidworks Community Development Corporation | ** Against | |
| Muckenthaler Cultural Center | ** Against | |
| Olive Community Services, INC. | ** Against | |
| Orange County Cemetery District | ** Against | |
| Radiant Futures | ** Against | |
| Rural County Representatives of California | ** Against | |
| Savanna School District | ** Against | |
| Solidarity | ** Against | |
| The Suavecito Foundation | ** Against | |
| Unidos South OC | ** Against | |
| Urban Counties of California | ** Against | |
| Waymakers | ** Against |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2946
Author:(Valencia)
As Amended Ver:August 23, 2024
Majority vote
SUMMARY
Provides that a member of the Orange County Board of Supervisors shall not award district discretionary funds to a community organization or a nonprofit unless the board approves, by majority vote, that award, as specified, and prohibits members of the board from taking certain actions related to district discretionary funds within 90 days before an election.
Senate Amendments
- Clarify that a member of the board of supervisors who is on a ballot as a supervisor district candidate and has an opponent on that ballot shall not take specified actions within the 90 days preceding the election.
- Make changes to the ability for a member of the board to award district discretionary funds 90 days before an election, including specifying that members of the board of supervisors may attend events hosted by entities who received district discretionary funds, so long as the event is not directly held in the supervisor’s honor.
- Make other technical and clarifying changes.
COMMENTS
County Governance. Existing law provides for county powers and governance, including an elected county board of supervisors, an elected county sheriff, an elected district attorney, and an elected assessor. The powers of a county can only be exercised by the board of supervisors or through officers acting under the authority of the board or authority conferred by law. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds.
The board of supervisors of any county can appropriate and expend money from the general fund of the county to establish county programs or to fund other programs considered by the board of supervisors to be necessary to meet the social needs of the population of the county. This includes the areas of health, law enforcement, public safety, and education, among others. The board of supervisors can also contract with other public agencies or private agencies or individuals to operate such programs if the board of supervisors determines it will serve public purposes.
A program may consist of a community support program including a charitable fund drive conducted in cooperation with one or more nonprofit charitable organizations if the board of supervisors believes a program will assist in meeting the social needs of the population of the county. If the board establishes a program, the officers and employees of the county must have the authority to carry out the program, using county funds and property if authorized by the board.
Orange County. In April 2021, the Orange County Board of Supervisors adopted a policy that allowed each Supervisor to determine how to award COVID-19 relief funding in their respective districts. Each of the five districts received an initial $10 million allocation, to which the Board added another $3 million in June 2023, for a total of $65 million. Once each supervisor decided how to prioritize these funds, the board voted to approve the disbursement of funds.
Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public. After public scrutiny over the contracts, news surfaced the organization was also behind on required audits. Despite these concerns, the Supervisor continued to award funding to the organization.
According to the Author
According to the author, "AB 2946 will maintain the integrity and transparency of district discretionary spending in Orange County. Currently, the County of Orange's policy on district discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations. An investigation revealed that an Orange County Supervisor appropriated money to a nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill will prevent future misuse of taxpayer dollars by establishing parameters on how the O.C. Board of Supervisors may appropriate district discretionary funds."
Arguments in Support
None on file.
Arguments in Opposition
According to Orange County on a previous version of this bill, "This bill originally proposed limitations on the Board's use of "discretionary funds" which would have extended beyond the intended limited scope to all county general purpose revenue used for the County Budget - essentially any county resources that are not state, federal, grant or restricted fee dollars. Amendments attempting to address this concern created a new, undefined term: "district discretionary funds," which is vaguely defined and may cause the following unintended consequences...
"The County supports efforts that maintain local discretionary control over its governance issues and delivery of services. This includes having flexibility to administer federal, state or local funding and programs. We firmly oppose legislation that does not recognize the need for local government autonomy in addressing problems and providing services for our residents."
FISCAL COMMENTS
None.
VOTES:
ASM LOCAL GOVERNMENT: 8-0-1
YES: Juan Carrillo, Waldron, Valencia, Kalra, Pacheco, Ramos, Ward, Wilson
ABS, ABST OR NV: Essayli
ASSEMBLY FLOOR: 71-1-8
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Friedman, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO: Essayli
ABS, ABST OR NV: Arambula, Cervantes, Megan Dahle, Gabriel, Gallagher, Mathis, Stephanie Nguyen, Luz Rivas
SENATE FLOOR: 36-0-4
YES: Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Allen, Jones, Niello, Seyarto
UPDATED
VERSION: August 23, 2024
CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0004858
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2946 |
THIRD READING
Bill No: AB 2946
Author: Valencia (D), et al.
Amended: 8/23/24 in Senate
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE: 6-1, 6/26/24
AYES: Durazo, Dahle, Glazer, Skinner, Wahab, Wiener
NOES: Seyarto
ASSEMBLY FLOOR: 71-1, 5/20/24 - See last page for vote
SUBJECT: District discretionary funds: County of Orange
SOURCE: Author
DIGEST:
This bill prohibits a member of the Orange County Board of Supervisors from awarding district discretionary funds to a community or nonprofit organization unless they are approved by a majority vote of the board, requires the board to report discretionary funding decisions on its website, and prohibits members of the board from taking certain actions related to district discretionary funds within 90 days before an election.
Senate Floor Amendments of 8/23/24 clarify that prohibition on awarding district discretionary funds applies to an individual member of the board, not the entire board. They also make various changes to the ability for a member of the board to award district discretionary funds 90 days before an election.
ANALYSIS:
Existing law:
- Creates counties as general purpose governments that provide a variety of public goods and services to their residents.
- Provides that, unless otherwise specified in a charter, county boards of supervisors have five members. These supervisors can perform acts necessary to fully discharge their duties to supervise county governance. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds. The board of supervisors is also vested with the constitutional authority to provide for the number, compensation, tenure, and appointment of employees.
- Allows the board of supervisors can spend money from the general fund of the county to establish county programs or to fund other programs necessary to meet the social needs of the county, including health, law enforcement, public safety, and education, among others.
- Allows the board of supervisors to contract with other public agencies, private agencies, or individuals to operate such programs if the board of supervisors determines doing so will serve public purposes.
This bill:
- Allows a member of the Orange County Board of Supervisors from awarding district discretionary funds to a community or nonprofit organization unless they are approved by a majority vote of the board. The measure defines district discretionary funds to mean funds appropriated by the board to individual members of the board to award to community organizations and nonprofit organizations.
- Requires the board of supervisors to post a log of appropriated district discretionary funds at the end of each quarter on its website, including the:
- Planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover;
- Spending timeline of those funds;
- Purpose of program funding;
- Eligibility requirements to receive funding; and
- Total dollars awarded to the entity.
- Provides that, within 90 days before an election, a supervisor who is on the ballot as a supervisorial candidate, and has an opponent, must not:
- Place an item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board;
- Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board; or
- Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
- Provides that the 90-day period does not apply events hosted by entities who received district discretionary funds, so long as the event is not held directly in the supervisor’s honor.
Background
In April 2021, the Orange County Board of Supervisors adopted a policy that allowed each Supervisor to determine how to award COVID-19 relief funding in their respective districts. Each of the five districts received an initial $10 million allocation, to which the Board added another $3 million in June 2023, for a total of $65 million. Once each supervisor decided how to prioritize these funds, the board voted to approve the disbursement of funds.
Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public. After public scrutiny over the contracts, news surfaced the organization was also behind on required audits. Despite these concerns, the Supervisor continued to award funding to the organization.
Comments
- Purpose of the bill. According to the author, “AB 2946 will maintain the integrity and transparency of district discretionary spending in Orange County. Currently, the County of Orange’s policy on district discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations. An investigation revealed that an Orange County Supervisor appropriated money to a nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill will prevent future misuse of taxpayer dollars by establishing parameters on how the O.C. Board of Supervisors may appropriate district discretionary funds.”
- Sure, but will it work? According to Orange County, which is in opposition to the measure, while each supervisor did receive a set amount of funds to allocate to their respective districts, both the policy and the specific allocations were subject to majority votes of the board. They argue they already meet the transparency requirements in this bill, and express concerns that taking away the county’s autonomy to direct funds will hamper the county’s ability to direct funds to quickly address urgent community needs. However, the County has various options it could use to continue to respond quickly to community needs. For example, it could hold a special meeting to ensure necessary funds get out the door quickly. Maintaining the log of these discretionary funding decisions could help ensure the Board spends taxpayer dollars in a transparent manner.
- Why just us? This bill applies specifically to Orange County even though other counties may have similar discretionary funding programs. For example, Riverside and San Bernardino have adopted policies specifying the process for discretionary funding decisions, including limits on awards around elections and requiring majority board approval. However, it is possible that other counties have not adopted policies to limit the likelihood of a situation like Orange County. Should the Legislature address the specific issues in Orange County or take a closer look across the state at how counties award discretionary funds?
Related/Prior Legislation
SB 1111 (Min, 2024) would expand the definition of remote interest in Section 1090 to include the financial interests of a public officer’s child, parent, or sibling, or the spouses of those individuals.
AB 3130 (Quirk-Silva, 2024) would require a member of a board of supervisors to disclose a known family relationship with an officer or employee of a nonprofit entity before it appropriates money to that nonprofit entity.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 8/26/24)
None received
OPPOSITION: (Verified 8/26/24)
Abound Food Care
Boys & Girls Clubs of Fullerton
County of Orange
Friendly Center
Grupo De Autismo Angeles
Homeaid Orange County
Kidworks Community Development Corporation
Muckenthaler Cultural Center
Olive Community Services, INC.
Orange County Cemetery District
Radiant Futures
Savanna School District
Solidarity
The Suavecito Foundation
Unidos South OC
Waymakers
ASSEMBLY FLOOR: 71-1, 5/20/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Friedman, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Essayli
NO VOTE RECORDED: Arambula, Cervantes, Megan Dahle, Gabriel, Gallagher, Mathis, Stephanie Nguyen, Luz Rivas
Prepared by: Jonathan Peterson / L. GOV. / (916) 651-4119
8/26/24 11:53:22
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2946 |
THIRD READING
Bill No: AB 2946
Author: Valencia (D), et al.
Amended: 6/27/24 in Senate
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE: 6-1, 6/26/24
AYES: Durazo, Dahle, Glazer, Skinner, Wahab, Wiener
NOES: Seyarto
ASSEMBLY FLOOR: 71-1, 5/20/24 - See last page for vote
SUBJECT: District discretionary funds: County of Orange
SOURCE: Author
DIGEST:
This bill provides that the Orange County Board of Supervisors can only appropriate district discretionary funds by majority vote, and requires the board to report discretionary funding decisions on its website.
ANALYSIS:
Existing law:
- Creates counties as general purpose governments that provide a variety of public goods and services to their residents.
- Provides that, unless otherwise specified in a charter, county boards of supervisors have five members. These supervisors can perform acts necessary to fully discharge their duties to supervise county governance. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds. The board of supervisors is also vested with the constitutional authority to provide for the number, compensation, tenure, and appointment of employees.
- Allows the board of supervisors can spend money from the general fund of the county to establish county programs or to fund other programs necessary to meet the social needs of the county, including health, law enforcement, public safety, and education, among others.
- Allows the board of supervisors to contract with other public agencies, private agencies, or individuals to operate such programs if the board of supervisors determines doing so will serve public purposes.
This bill:
- Allows the Orange County Board of Supervisors to only appropriate district discretionary funds by majority vote. The measure defines district discretionary funds to mean funds appropriated by the board to individual members of the board to award to community organizations and nonprofit organizations.
- Requires the board of supervisors to post a log of appropriated district discretionary funds at the end of each quarter on its website, including the:
- Planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover;
- Spending timeline of those funds;
- Purpose of program funding;
- Eligibility requirements to receive funding; and
- Total dollars awarded to the entity.
- Provides that, 90 days before an election, a supervisor who is on the ballot as a supervisorial candidate, and has an opponent, must not:
- Place an item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board;
- Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board; or
- Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
- Provides that the 90-day period does not apply to any project that was completed within 90 days before an election and that received funds before that 90-day period.
Background
In April 2021, the Orange County Board of Supervisors adopted a policy that allowed each Supervisor to determine how to award COVID-19 relief funding in their respective districts. Each of the five districts received an initial $10 million allocation, to which the Board added another $3 million in June 2023, for a total of $65 million. Once each supervisor decided how to prioritize these funds, the board voted to approve the disbursement of funds.
Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public. After public scrutiny over the contracts, news surfaced the organization was also behind on required audits. Despite these concerns, the Supervisor continued to award funding to the organization.
Comments
- Purpose of the bill. According to the author, “AB 2946 will maintain the integrity and transparency of district discretionary spending in Orange County. Currently, the County of Orange’s policy on district discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations. An investigation revealed that an Orange County Supervisor appropriated money to a nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill will prevent future misuse of taxpayer dollars by establishing parameters on how the O.C. Board of Supervisors may appropriate district discretionary funds.”
- Sure, but will it work? According to Orange County, which is in opposition to the measure, while each supervisor did receive a set amount of funds to allocate to their respective districts, both the policy and the specific allocations were subject to majority votes of the board. They argue they already meet the transparency requirements in this bill, and express concerns that taking away the county’s autonomy to direct funds will hamper the county’s ability to direct funds to quickly address urgent community needs. However, the County has various options it could use to continue to respond quickly to community needs. For example, it could hold a special meeting to ensure necessary funds get out the door quickly. Maintaining the log of these discretionary funding decisions could help ensure the Board spends taxpayer dollars in a transparent manner.
- Why just us? This bill applies specifically to Orange County even though other counties may have similar discretionary funding programs. For example, Riverside and San Bernardino have adopted policies specifying the process for discretionary funding decisions, including limits on awards around elections and requiring majority board approval. However, it is possible that other counties have not adopted policies to limit the likelihood of a situation like Orange County. Should the Legislature address the specific issues in Orange County or take a closer look across the state at how counties award discretionary funds?
Related/Prior Legislation
SB 1111 (Min, 2024) expands the definition of remote interest in Section 1090 to include the financial interests of a public officer’s child, parent, or sibling, or the spouses of those individuals. The measure is currently pending in the Assembly Appropriations Committee.
AB 3130 (Quirk-Silva, 2024) requires a member of a board of supervisors to disclose a known family relationship with an officer or employee of a nonprofit entity before it appropriates money to that nonprofit entity. The measure is currently pending on the Senate Floor.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 6/27/24)
None received
OPPOSITION: (Verified 6/27/24)
Abound Food Care
Boys & Girls Clubs of Fullerton
County of Orange
Friendly Center
Grupo De Autismo Angeles
Homeaid Orange County
Kidworks Community Development Corporation
Muckenthaler Cultural Center
Olive Community Services, INC.
Orange County Cemetery District
Radiant Futures
Savanna School District
Solidarity
The Suavecito Foundation
Unidos South OC
Waymakers
ASSEMBLY FLOOR: 71-1, 5/20/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Friedman, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Essayli
NO VOTE RECORDED: Arambula, Cervantes, Megan Dahle, Gabriel, Gallagher, Mathis, Stephanie Nguyen, Luz Rivas
Prepared by: Jonathan Peterson / L. GOV. / (916) 651-4119
6/28/24 13:06:23
**** END ****
SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2023 - 2024 Regular
Bill No: | AB 2946 | Hearing Date: | 6/26/24 |
Author: | Valencia | Fiscal: | No |
Version: | 4/29/24 | Consultant: | Peterson |
District discretionary funds: County of Orange
Provides that the Orange County Board of Supervisors can only appropriate district discretionary funds by majority vote, and requires the board to report discretionary funding decisions on its website.
Background
County Governance. Counties are general purpose governments that provide a variety of public goods and services to their residents. From law enforcement, public health, and child protective services to libraries, parks, and fire protection, counties provide these services through a variety of personnel and financial arrangements—including contracting out to the private sector.
Unless otherwise specified in a charter, county boards of supervisors have five members. These supervisors can perform acts necessary to fully discharge their duties to supervise county governance. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds. The board of supervisors is also vested with the constitutional authority to provide for the number, compensation, tenure, and appointment of employees.
The board of supervisors can spend money from the general fund of the county to establish county programs or to fund other programs necessary to meet the social needs of the county, including health, law enforcement, public safety, and education, among others. The board of supervisors can also contract with other public agencies, private agencies, or individuals to operate such programs if the board of supervisors determines doing so will serve public purposes.
Recent conflict of interest controversies. In April 2021, the Orange County Board of Supervisors adopted a policy that allowed each Supervisor to determine how to award COVID-19 relief funding in their respective districts. Each of the five districts received an initial $10 million allocation, to which the Board added another $3 million in June 2023, for a total of $65 million. Once each supervisor decided how to prioritize these funds, the board voted to approve the disbursement of funds.
Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public.[1] After public scrutiny over the contracts, news surfaced the organization was also behind on required audits.[2] Despite these concerns, the Supervisor continued to award funding to the organization.[3]
The author wants to ensure that future decisions to award discretionary funds to nonprofits and community organizations are made by a majority vote of the board and receive greater public scrutiny.
Proposed Law
Assembly Bill 2946 allows the Orange County Board of Supervisors to only appropriate district discretionary funds by majority vote. The measure defines district discretionary funds to mean funds appropriated by the board to individual members of the board to award to community organizations and nonprofit organizations.
AB 2946 also requires the board of supervisors to post a log of appropriated district discretionary funds at the end of each quarter on its website, including the:
- Planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover;
- Spending timeline of those funds;
- Purpose of program funding;
- Eligibility requirements to receive funding; and
- Total dollars awarded to the entity.
Within 90 days of an election, a supervisor who is on the ballot as a supervisorial candidate, and has an opponent, must not:
- Place an item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board;
- Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board; or
- Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
The measure also provides it must not be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
Comments
1. Purpose of the bill. According to the author, “AB 2946 will maintain the integrity and transparency of district discretionary spending in Orange County. Currently, the County of Orange’s policy on district discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations. An investigation revealed that an Orange County Supervisor appropriated money to a nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill will prevent future misuse of taxpayer dollars by establishing parameters on how the O.C. Board of Supervisors may appropriate district discretionary funds.”
2. Sure, but will it work? According to Orange County, which is in opposition to the measure, while each supervisor did receive a set amount of funds to allocate to their respective districts, both the policy and the specific allocations were subject to majority votes of the board. They argue they already meet the transparency requirements in AB 2946, and express concerns that taking away the county’s autonomy to direct funds will hamper the county’s ability to direct funds to quickly address urgent community needs. However, the County has various options it could use to continue to respond quickly to community needs. For example, it could hold a special meeting to ensure necessary funds get out the door quickly. Maintaining the log of these discretionary funding decisions could help ensure the Board spends taxpayer dollars in a transparent manner.
3. Why just us? AB 2946 applies specifically to Orange County even though other counties may have similar discretionary funding programs. For example, Riverside and San Bernardino have adopted policies specifying the process for discretionary funding decisions, including limits on awards around elections and requiring majority board approval. However, it is possible that other counties have not adopted policies to limit the likelihood of a situation like Orange County. Should the Legislature address the specific issues in Orange County or take a closer look across the state at how counties award discretionary funds?
4. Let’s be clear. The measure provides that supervisors cannot award discretionary funds within 90 days of an election if they have an opponent. It is unclear whether this applies before or after the election. Similarly, it is unclear whether that 90-day prohibition applies if the project received funding but was only completed within 90 days before the election. The Committee may wish to consider amending the bill to clarify:
- The requirement applies within 90 days before an election; and
- The 90-day prohibition does not apply to any project that was completed within 90 days before an election and that received funds before that 90-day period.
5. Special legislation. Section 16 of Article Four of the California Constitution prohibits special legislation when a general law can apply. AB 2946 contains findings and declarations explaining the need for legislation that applies only to Orange County.
6. Related legislation. The Legislature is considering two other bills to address the recent funding controversies in Orange County:
- SB 1111 (Min), which this Committee approved on a 6-0 vote at its April 17th hearing, expands the definition of remote interest in Section 1090 to include the financial interests of a public officer’s child, parent, or sibling, or the spouses of those individuals. The measure is currently pending in the Assembly Elections Committee.
- AB 3130 (Quirk-Silva) requires a member of a board of supervisors to disclose a known family relationship with an officer or employee of a nonprofit entity before it appropriates money to that nonprofit entity. The measure is also scheduled for this Committee’s June 26th hearing.
Assembly Actions
Assembly Local Government Committee: 8-0
Assembly Floor: 71-1
Support and Opposition
(6/21/24)
Support: None submitted.
Opposition: Abound Food Care
Boys & Girls Clubs of Fullerton
County of Orange
Friendly Center
Grupo De Autismo Angeles
Homeaid Orange County
Kidworks Community Development Corporation
Muckenthaler Cultural Center
Olive Community Services, INC.
Orange County Cemetery District
Radiant Futures
Savanna School District
Solidarity
The Suavecito Foundation
Unidos South Oc
Waymakers
-- END --
https://laist.com/news/politics/andrew-do-rhiannon-do-investigation-warner-wellness-orange-county-viet-america-society-pham ↑
https://laist.com/news/politics/orange-county-taxpayer-money-andrew-do-viet-america-society-warner-wellness ↑
https://laist.com/news/politics/orange-county-supervisor-andrew-do-taxpayer-money-daughter-viet-america-society-warner-wellness-rhiannon-do ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 2946
Author:(Valencia)
As Amended Ver:April 29, 2024
Majority vote
SUMMARY
Provides that the Board of Supervisors of Orange County shall only appropriate district discretionary funds if the board approves, by a majority vote, appropriating the district discretionary funds.
Major Provisions
- Defines the following terms:
- "County" as Orange County.
- "Board" as the board of supervisors of the county.
- "District discretionary funds" as funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
- Provides that the board shall only appropriate district discretionary funds if the board approves, by a majority vote, appropriating the district discretionary funds.
- Requires the board to post on its internet website a log of appropriated district discretionary funds at the end of each quarter, including all of the following:
- The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
- The spending timeline of those funds.
- The purpose of program funding.
- The eligibility requirements to receive funding.
- Total dollars awarded to the entity that is contracted with the county.
- Specifies that within 90 days of an election, a member of the board who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any of the following actions:
- Place an agenda item seeking approval to appropriate district discretionary funds on the agenda for a meeting of the board.
- Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.
- Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
- Provides that nothing in this bill shall be construed to limit the existing authority of the board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this bill.
COMMENTS
County Governance. Existing law provides for county powers and governance, including an elected county board of supervisors, an elected county sheriff, an elected district attorney, and an elected assessor. The powers of a county can only be exercised by the board of supervisors or through officers acting under the authority of the board or authority conferred by law. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds. The board of supervisors is also vested with the constitutional authority to provide for the number, compensation, tenure, and appointment of employees.
The board of supervisors of any county can appropriate and expend money from the general fund of the county to establish county programs or to fund other programs considered by the board of supervisors to be necessary to meet the social needs of the population of the county. This includes the areas of health, law enforcement, public safety, and education, among others. The board of supervisors can also contract with other public agencies or private agencies or individuals to operate such programs if the board of supervisors determines it will serve public purposes.
A program may consist of a community support program including a charitable fund drive conducted in cooperation with one or more nonprofit charitable organizations if the board of supervisors believes a program will assist in meeting the social needs of the population of the county. If the board establishes a program, the officers and employees of the county must have the authority to carry out the program, using county funds and property if authorized by the board.
Orange County. Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public.[1] After public scrutiny over the contracts, news surfaced that the organization was also behind on required audits.[2] Despite these concerns, the Supervisor continued to award funding to the organization.[3]
According to an April 8, Los Angeles Times Article, "In September 2022, with the five supervisors' districts splitting federal coronavirus relief funds earmarked for 'social needs,' the board voted unanimously to approve $6.9 million in discretionary funds for Do's district. According to public records obtained by The Times, Do's office sent $2.2 million of that money to the Viet America Society between December 2022 and March 2023 and an additional $1 million in October 2023 for a Vietnam War Memorial. The board had decided that proper uses for the coronavirus relief money included parks, infrastructure, 'projects and programs.'
"In June 2023, the board voted unanimously to approve $3 million in discretionary funds, this time from the county's general fund, for each of the districts. Do directed his $3 million to the Viet America Society in August 2023. According to LAist, the news site that has spearheaded reporting on the controversy, Do has directed as much as $13.5 million in government money to the nonprofit, often without placing it on a public agenda and without disclosing his daughter's connection to the group."[4]
According to Orange County, the Orange County Board of Supervisors agendized and voted on all discretionary spending requested by individual supervisors. The process was initially noticed and approved by the Board on April 27, 2021 and included authorization to allow each Supervisor to develop their own approach to meet the needs of their respective districts.
According to the Author
According to the author, "AB 2946 will maintain the integrity and transparency of discretionary spending in Orange County by establishing parameters on how the Board of Supervisors may allocate and dispense funds. Currently, the County of Orange's policy on discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations, and does not include provisions on conflict of interest. In recent months it was revealed that a County Supervisor allocated money to this nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill prevents future misuse of taxpayer dollars requiring a majority vote of the O.C. supervisors to appropriate and expend discretionary funds, requiring a log of appropriated and expended funds to be published on the County's website, and by prohibiting supervisors from taking specified action on discretionary funds within 90 days of an election."
Arguments in Support
None on file.
Arguments in Opposition
None on file.
FISCAL COMMENTS
None.
VOTES
ASM LOCAL GOVERNMENT: 8-0-1
YES: Juan Carrillo, Waldron, Valencia, Kalra, Pacheco, Ramos, Ward, Wilson
ABS, ABST OR NV: Essayli
UPDATED
VERSION: April 29, 2024
CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0002884
https://laist.com/news/politics/andrew-do-rhiannon-do-investigation-warner-wellness-orange-county-viet-america-society-pham ↑
https://laist.com/news/politics/orange-county-taxpayer-money-andrew-do-viet-america-society-warner-wellness ↑
https://laist.com/news/politics/orange-county-supervisor-andrew-do-taxpayer-money-daughter-viet-america-society-warner-wellness-rhiannon-do ↑
https://www.latimes.com/california/story/2024-04-08/scandal-shadows-andrew-dos-final-year-on-the-o-c-board-of-supervisors ↑
Date of Hearing: April 24, 2024
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
ABPCA Bill Id:AB 2946 (
Author:Valencia) – As Amended Ver:March 21, 2024
SUBJECT: Discretionary funds: County of Orange.
SUMMARY: Provides that the board of supervisors of Orange County can only appropriate and expend discretionary funds if the board of supervisors approves, by majority vote, appropriating and expending the discretionary funds, and places limitations on a member of the board of supervisors who is on a ballot as a candidate. Specifically, this bill:
- Defines the following terms:
- “County” as Orange County.
- “Discretionary funds” as the discretionary or unrestricted funds from the general fund of the county.
- Requires the board of supervisors of the county to only appropriate and expend discretionary funds if the board of supervisors approves, by majority vote, appropriating and expending the discretionary funds.
- Specifies that the board of supervisors of the county shall post on its internet website a log of appropriated and expended discretionary funds at the end of each quarter.
- Provides that, within 90 days of an election, a member of the board of supervisors of the county who is on a ballot as a candidate and has an opponent on that ballot shall not take any of the following actions:
- Place an agenda item seeking approval to appropriate and expend discretionary funds on the agenda for a meeting of the board of supervisors of the county.
- Announce or participate in a press release announcing the awarding of discretionary funds previously approved by the board.
- Participate in or make a ceremonial presentation awarding previously approved discretionary funds.
- Specifies that nothing in this bill shall be construed to limit the existing authority of the county from adopting ordinances, rules, or regulation beyond the minimum requirements outlined in this bill.
- Finds and declares that a special statute is necessary and that a general statute cannot be made applicable because of the necessity to ensure the integrity and transparency of county discretionary spending and the electoral process, while reducing the perception of corruption in the County of Orange. The proposed policy will provide guidelines and criteria for distributing discretionary funds, while making it more difficult for elected officials to engage in potential quid pro quo corruption.
- Provides that if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school district for those costs shall be made.
FISCAL EFFECT: This bill is keyed fiscal and contains a state mandated local program.
COMMENTS:
- Bill Summary and Author’s Statement. This bill specifies that the board of supervisors of Orange County must only appropriate and expend discretionary funds if the board of supervisors approves, by majority vote, appropriating and expending the discretionary funds. This bill also places specified limitations on a member of the board of supervisors who is on a ballot as a candidate. The author is the sponsor of this bill.
According to the author, “AB 2946 will maintain the integrity and transparency of discretionary spending in Orange County by establishing parameters on how the Board of Supervisors may allocate and dispense funds. Currently, the County of Orange’s policy on discretionary spending lacks safeguards for ensuring programs are fulfilling their contractual obligations, and does not include provisions on conflict of interest. In recent months it was revealed that a County Supervisor allocated money to this nonprofit that was allegedly led by a family member. To this date, the nonprofit has yet to provide proof to the County that the money was properly spent. This bill prevents future misuse of taxpayer dollars requiring a majority vote of the O.C. supervisors to appropriate and expend discretionary funds, requiring a log of appropriated and expended funds to be published on the County’s website, and by prohibiting supervisors from taking specified action on discretionary funds within 90 days of an election.”
- County Governance. Existing law provides for county powers and governance, including an elected county board of supervisors, an elected county sheriff, an elected district attorney, and an elected assessor. The powers of a county can only be exercised by the board of supervisors or through officers acting under the authority of the board or authority conferred by law. The board supervises the official conduct of all county officers, particularly as their activities pertain to the management and disbursement of public funds. The board of supervisors is also vested with the constitutional authority to provide for the number, compensation, tenure, and appointment of employees.
The board of supervisors of any county can appropriate and expend money from the general fund of the county to establish county programs or to fund other programs considered by the board of supervisors to be necessary to meet the social needs of the population of the county. This includes the areas of health, law enforcement, public safety, and education, among others. The board of supervisors can also contract with other public agencies or private agencies or individuals to operate such programs if the board of supervisors determines it will serve public purposes.
A program may consist of a community support program including a charitable fund drive conducted in cooperation with one or more nonprofit charitable organizations if the board of supervisors believes a program will assist in meeting the social needs of the population of the county. If the board establishes a program, the officers and employees of the county must have the authority to carry out the program, using county funds and property if authorized by the board.
Orange County. Starting in late 2023, news surfaced that an Orange County Supervisor awarded COVID-19 relief funding to an organization run by his daughter without disclosing the connection to the public.[1] After public scrutiny over the contracts, news surfaced that the organization was also behind on required audits.[2] Despite these concerns, the Supervisor continued to award funding to the organization.[3]
According to an April 8, Los Angeles Times Article, “In September 2022, with the five supervisors’ districts splitting federal coronavirus relief funds earmarked for ‘social needs,’ the board voted unanimously to approve $6.9 million in discretionary funds for Do’s district.
According to public records obtained by The Times, Do’s office sent $2.2 million of that money to the Viet America Society between December 2022 and March 2023 and an additional $1 million in October 2023 for a Vietnam War Memorial. The board had decided that proper uses for the coronavirus relief money included parks, infrastructure, ‘projects and programs.’
“In June 2023, the board voted unanimously to approve $3 million in discretionary funds, this time from the county’s general fund, for each of the districts. Do directed his $3 million to the Viet America Society in August 2023. According to LAist, the news site that has spearheaded reporting on the controversy, Do has directed as much as $13.5 million in government money to the nonprofit, often without placing it on a public agenda and without disclosing his daughter’s connection to the group.”[4]
According to Orange County, the Orange County Board of Supervisors agendized and voted on all discretionary spending requested by individual supervisors. The process was initially noticed and approved by the Board on April 27, 2021 and included authorization to allow each Supervisor to develop their own approach to meet the needs of their respective districts.
- Policy Consideration. The stated intent of this bill is to create guidelines and criteria for allocating and dispersing discretionary funds in Orange County. However, the bill is not currently limited to a specific revenue source or a specific practice of how funds are spent. Ultimately, the term “discretionary” is undefined in this bill. In a letter of concerns, the California State Association of Counties, the Rural County Representatives of California, and the Urban Counties of California express that, “AB 2946’s definition of ‘discretionary funds’ extends far beyond this limited scope to all county general purpose revenue used for its budget; essentially, any county resource that is not a state, federal, grant, or restricted fee dollar would be subject to the limitation imposed by the bill. This imprecise definition has the potential to hamstring a board of supervisors to such an extent that a final budget could not be approved by the statutory deadline.” Given the concerns raised by the counties, the Committee may wish to consider if additional clarification is needed.
- Committee Amendments. In order to address the policy consideration above, the Committee may wish to amend this bill in the following ways (Underlined). Additionally, due to time constraints, the Author has requested that the Committee adopt the following amendments (Italicized).
26227.5. (a) For purposes of this section, the following definitions apply:
(1) “Board” means the board of supervisors of the county.
(2)“County” means the County of Orange.
(2) “Discretionary funds” means the discretionary or unrestricted funds from the general fund of the county.
(3)“District discretionary funds” means funds that are appropriated by the board to individual members of the board and are intended to be awarded to community organizations and nonprofit organizations.
(b) The board of supervisors of the county shall only appropriate and expend district discretionary funds if the board of supervisors approves, by a majority vote, appropriating and expending the district discretionary funds.
(c) The board of supervisors of the county shall post on its internet website a log of appropriated and expended district discretionary funds at the end of each quarter, including all of the following:
(1) The planned and actual costs of the program or project, including the indirect costs, that the district discretionary funds cover.
(2) The spending timeline of those funds.
(3) The purpose of program funding.
(4) The eligibility requirements to receive funding.
(5) Total dollars awarded to the entity that is contracted with the county.
(d) Within 90 days of an election, a member of the board of supervisors of the county who is on a ballot as a supervisor district candidate of the board and has an opponent on that ballot shall not take any of the following actions:
(1) Place an agenda item seeking approval to appropriate and expend district discretionary funds on the agenda for a meeting of the board of supervisors of the county.
(2) Announce or participate in a press release announcing the awarding of district discretionary funds previously approved by the board.
(3) Participate in or make a ceremonial presentation awarding previously approved district discretionary funds.
(e) Nothing in this section shall be construed to limit the existing authority of the county board from adopting ordinances, rules, or regulations beyond the minimum requirements outlined in this section.
- Arguments in Support. None on file.
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Concerns
California State Association of Counties
Rural County Representatives of California
Urban Counties of California
Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958
https://laist.com/news/politics/andrew-do-rhiannon-do-investigation-warner-wellness-orange-county-viet-america-society-pham ↑
https://laist.com/news/politics/orange-county-taxpayer-money-andrew-do-viet-america-society-warner-wellness ↑
https://laist.com/news/politics/orange-county-supervisor-andrew-do-taxpayer-money-daughter-viet-america-society-warner-wellness-rhiannon-do ↑
https://www.latimes.com/california/story/2024-04-08/scandal-shadows-andrew-dos-final-year-on-the-o-c-board-of-supervisors ↑
Bill Author
Bill Co-Author(s):
