BILL ANALYSIS AB 528 Page 1 Date of Hearing: May 5, 2009 ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING Paul Fong, Chair AB 528 (Silva) - As Amended: March 31, 2009 SUBJECT : Local government: reorganization: expenditure reporting. SUMMARY : Conforms the reporting and disclosure requirements, for political purposes, of the Cortese-Knox-Hertzberg Local Government Reorganization Act to the requirements of the Political Reform Act (PRA). Specifically, this bill : 1)Requires contributions and expenditures made for political purposes related to a proposal or proceeding before a Local Agency Formation Commission (LAFCO) be disclosed and reported pursuant to the appropriate section in the PRA. 2)Amends the definition of a "LAFCO proposal" in the PRA to conform to the definition contained in the Cortese-Knox-Hertzberg Act. EXISTING LAW : 1)Requires contributions and expenditures for political purposes on boundary changes approved by a LAFCO to be disclosed and reported to the LAFCO to the same extent and subject to the same requirements of the PRA as provided for local initiative measures. 2)Provides that a LAFCO may require, through the adoption of written policies and procedures, the disclosure of contributions, expenditures, and independent expenditures made in support of or opposition to a proposal. Provides that disclosures shall be made either to the LAFCO's executive officer, in which case it shall be posted on the LAFCO's Internet Web site, if applicable, or to the board of supervisors of the county in which the LAFCO is located, which may designate a county officer to receive the disclosure. Provides that disclosures pursuant to a requirement under the authority provided in this section shall be in addition to any disclosure otherwise required by the PRA or local ordinance. 3)Creates the Fair Political Practices Commission (FPPC), and AB 528 Page 2 makes it responsible for the impartial, effective administration and implementation of the PRA. FISCAL EFFECT : Keyed non-fiscal by the Legislative Counsel. COMMENTS : 1)Purpose of the Bill : According to the author: In an effort to provide greater transparency in elections regarding local boundary changes, the legislature passed two measures- AB 745 in 2007 and AB 1998 in 2008. These measures ensured campaigns associated with local boundary changes were held to the same reporting standards as any other local election. AB 528 seeks to provide conforming and clarifying language as a follow up to these measures. This bill amends the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 to properly reflect the Political Reform Act as governing LAFCO financial disclosure requirements and provides the correct cross-references to the Political Reform Act. AB 528 clarifies if a local agency formation commission requires additional disclosure information, as currently provided in the CKH Act, it - and not the FPPC - is responsible for collecting and making that additional information available to the public. 2)Previous Legislation : AB 745 (Silva), Chapter 109, Statutes of 2007 required that contributions and expenditures for political purposes on boundary changes approved by a LAFCO be disclosed and reported subject to the same requirements that the PRA provides for local initiative measures. AB 1998 (Silva), Chapter 192, Statutes of 2008, made contributions and expenditures to support or oppose a LAFCO proposal subject to the reporting and enforcement requirements of the PRA. 3)Political Reform Act of 1974 : California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the initiative and require a two-thirds vote of both houses of the Legislature. AB 528 Page 3 4)Double Referral : This bill was heard in the Assembly Local Government Committee on April 22, 2009 and passed out of the committee on a 7-0 vote as a consent item. REGISTERED SUPPORT / OPPOSITION : Support California Association of Local Agency Formation Commissions (sponsor) Fair Political Practices Commission Opposition None on file. Analysis Prepared by : Qiana Charles / E. & R. / (916) 319-2094