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Senate panel approves bill to cap consultant pay and add transparency in local tax‑sharing deals
Summary
SB 11 72 would impose caps and disclosure requirements on consultant compensation in local tax‑sharing agreements to keep more revenue in small and rural communities; sponsors say it preserves local control with reasonable guardrails and the measure moved to Appropriations.
Sen. Hurtado presented SB 11 72 to establish guardrails for tax‑sharing agreements used to recruit economic development, proposing caps on consultant compensation, limits on total amounts and durations, and disclosure requirements intended to keep more revenue within the originating jurisdictions.
The author cited local examples (Shafter, Dinuba) where consultant fees consumed large shares of revenue, and argued the bill preserves local control while preventing exploitative arrangements. Chris Micheli, representing the sponsor, said the bill is prospective and does not affect existing agreements.
Supporters including the League of California Cities and the Contra Costa Transportation Authority registered their support; some senators raised local‑control concerns but many characterized the bill as a responsible safeguard for taxpayer dollars. The committee agreed to accept amendments and passed SB 11 72 as amended to the Committee on Appropriations (recorded tally: 3 yes, 0 no).
Next steps: SB 11 72 will be considered by Appropriations; sponsors and local partners indicated willingness to refine caps and operational details.
