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Board of Trustees Meeting May 13, 2008 |
Agenda Topic: New Business
Preliminary Report Regarding Past Payments to Trustees
Background:
The
California Health & Safety Code prohibits Trustees from receiving
compensation for conducting the District’s official business. (Health & Safety Code
§ 2030(a).)
With regard to reimbursement for expenses that the Trustees incur in carrying out official business, Health & Safety Code section 2030 provides that Trustees for the District may either be reimbursed for all of their actual and necessary traveling and incidental expenses incurred on official business or in lieu of this option, may be paid up to $100 per month for expenses incurred while on official business. (Health & Safety Code § 2030, subd. (b) [“The members of the board of trustees may receive their actual and necessary traveling and incidental expenses incurred while on official business. In lieu of paying for actual expenses, the board of trustees may by resolution provide for the allowance and payment to each trustee a sum not to exceed one hundred dollars ($100) per month for expenses incurred while on official business. A trustee may waive the payments permitted by this subdivision”].)
However, Health & Safety Code section 2051 provides as follows: “A district may authorize the members of its board of trustees and its employees to attend professional, educational, or vocational meetings, and pay their actual and necessary traveling and incidental expenses while on official business. The payment of expenses pursuant to this section may be in addition to the payments made pursuant to Section 2030.” (Health & Safety Code § 2051 (emphasis added).)
In addition, in January 2006, the Legislature adopted AB 1234, which codified, among other sections, sections 53232.2 and 53232.3 into the Government Code. As a general matter, these two Government Code sections require that the governing body adopt a written policy, in a public meeting, that specifies the types of meetings and occurrences that qualify a member to receive reimbursement of expenses as well as reimbursement and reporting procedures.
The Legislature made payments authorized pursuant to Health & Safety Code section 2030 subject to these two referenced Government Code provisions in 2006. The Legislature made payments authorized pursuant to Health and Safety Code section 2051 subject to these two Government Code provisions in 2007.
On May 9, 2006, the District Board adopted Resolution 2006-02. That Resolution purported to authorize a monthly “Meeting Attendance Fee” of $100. It also authorized reimbursement of actual expenses incurred by Trustees. The District has issued payments in accordance with this Resolution since its adoption.
In addition, Rutan & Tucker has very preliminarily reviewed the Districts’ Remuneration Expense and Ethics Policy (“Policy”), which was ostensibly adopted roughly concurrently with the adoption of Resolution No. 2006-02 and in order to comply with the provisions of Government Code sections 53232.2 and 53232.3.
Putting aside the oath of office
issue discussed in the related Memorandum,[1]
the issue of whether the District’s reimbursement protocol complied with