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
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            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