Dear Members, I urge you to join me in contacting your city council representative and ask them to vote NO on resolution AB 1404.
This bill raises significant privacy concerns in that it would mandate specified “nonprofit sponsors” to disclose confidential physician compensation information.
A sample phone script:
"I am Dr.___ with _________, a practicing physician who lives in your district. I am calling about agenda item No. 27 on the Council agenda. I urge the Councilmember to not approve the resolution to support AB 1404. As a physician, I am very concerned about this unwarranted and likely unconstitutional intrusion into the personal information of individual physicians. This is a troubling precedent, and I respectfully urge a NO vote.”
Council Members per District:
City Hall Phone Number
Council District 1
Chinatown, Elysian Park,
Highland Park, Mount Washington
Council District 2
North Hollywood, Studio City,
Valley Glen, Valley Village
Council District 3
Canoga Park, Reseda, Tarzana,
Winnetka, Woodland Hills
Council District 4
Hollywood Hills, Los Feliz, Miracle Miles,
Park La Brea, Sherman Oaks, Toluca Lake,
Council District 5
Bel Air, Beverly Wood, Century City, Encino,
Hancock Park, Melrose, Palms, Westwood
Council District 6
Lake Balboa, North Hills, Panorama City,
Sun Valley, Van Nuys
Council District 7
Lake View Terrace, Mission Hills, Pacoima,
Sunland, Slymar, Tujunga
Council District 8
Adams-Normandie, Gramercy Place,
Hyde Park, Manchester Square
Council District 9
Curren Price, Jr.
Central, Exposition Park, Florence-Firestone,
South Park, University Park
Council District 10
Baldwin Hills, Cadillac-Corning, Cloverdale Cochran, Crenshaw District, Exposition Park, Jefferson Park, Korea Town, Leimert Park, Mid-City, Mid-Wilshire,
Council District 11
Brentwood, Del Rey, Mar Vista, Pacific Palisades,
Playa Del Rey, Playa Vista, Venice, West Los Angeles, Westchester
Council District 12
Chatsworth, Granada Hills, North Hills, Northridge,
Porter Ranch, West Hills
Council District 13
Atwater Village, East Hollywood, Echo Park,
Elysian Valley, Historic Filipino Town, Hollywood, Melrose, Silver Lake, Thai Town
Council District 14
Boyle Heights, Downtown, Eagle Rock,
El Sereno, Glassell Park, Lincoln Heights,
Council District 15
Harbor City, Harbor Gateway, San Pedro, Watts, Wilmington
BACKGROUND: LACMA is joining more than 31 organizations, from the California Medical Association, America’s Physician Groups, the Osteopathic Physicians and Surgeons of California, the American Academy of Pediatrics/California, the American College of Physicians – California, the American College of Cardiology - California Chapter to the American College of Surgeons/California, California Hospital Association and many others – including a number of chambers of commerce, civic and business associations who all oppose the bill. Why? This bill raises significant privacy concerns in that it would force specified “nonprofit sponsors” to disclose private physician compensation information. Disclosure of confidential compensation information may also raise concerns under state and federal antitrust laws. I urge you to join me in contacting your city council representative to share your opposition to them passing a resolution of support. I’ve included the official LACMA letter to members and the list of council members with contact information.
August 5, 2019
The Honorable Gil Cedillo
Los Angeles City Hall
200 N. Spring St.
Los Angeles, CA 90012
Dear Council Member Cedillo,
The Los Angeles County Medical Association (LACMA) respectfully OPPOSES AB 1404 Nonprofit sponsors: reporting obligations.
This bill raises significant privacy concerns in that it would force specified “nonprofit sponsors” to disclose private compensation information regarding certain individuals. Specifically, the bill requires covered nonprofit sponsors to annually disclose the “name and title of each listed person receiving deferred compensation allocated by a nonprofit sponsor, the total amount and type of the compensation paid to each listed person, and reportable compensation, including base compensation, bonus and incentive compensation, other reportable compensation, and other nontaxable benefits.”
We are concerned that the disclosure of such information would violate the right to privacy of such individuals and violate the federal Right to Financial Privacy Act (12 U.S.C. §§ 3401-3423) and the California Right to Financial Privacy Act (Govt. Code § 7470, et seq.). Disclosure of confidential compensation information may also raise concerns under state and federal antitrust laws.
More generally, we do not think it is appropriate to propose state legislation targeted at one particular organization, especially when the motivation appears to be, at least in part, to gain leverage as part of current negotiations over a collective bargaining agreement. Legislation that targets a particular organization or group of individuals without a reasonable purpose is discriminatory and likely violates the due process and equal protection clauses of the federal and state constitutions. While the bill purports to apply to any “nonprofit sponsor,” the materials prepared by the sponsor leave no doubt that this legislation is targeted at one particular organization. We believe it is inappropriate for the legislative process to be utilized in this fashion.
Similarly, we believe that legislation targeted at one organization threatens to put that organization at a competitive disadvantage, especially if it forces one entity to disclose information that could be utilized by market competitors.
For these reasons, we respectfully OPPOSE AB 1404.
Gustavo Friederichsen Sion Roy, MD
Chief Executive Officer 2019 Board Chair
Los Angeles County Medical Association Los Angeles County Medical Association