BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1921
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          ASSEMBLY THIRD READING
          AB 1921 (Davis)
          As Introduced  February 16, 2010
          2/3 vote 

           ELECTIONS           7-0                                         
           
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          |Ayes:|Fong, Adams, Bill         |     |                          |
          |     |Berryhill, Coto, Mendoza, |     |                          |
          |     |Saldana, Swanson          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Allows Santa Clara and Ventura Counties and the City  
          of Long Beach to participate in an ongoing pilot project that  
          allows certain local jurisdictions to permit statements of  
          economic interests (SEIs) to be filed electronically.

           FISCAL EFFECT  :   Keyed non-fiscal by the Legislative Counsel.

           COMMENTS  :  According to the author, "Assembly Bill 2607 (Davis)  
          provided Los Angeles, Orange, Merced and Stanislaus Counties  
          with the ability to participate in a pilot program to provide  
          constituents with the option of filing their Form 700 Statement  
          of Economic Interests using a secure electronic template.  The  
          program provides a safe, cost-effective and workload-reducing  
          option for the filer to utilize to fulfill their annual filing  
          obligation.  Assembly Bill 1921 would add Santa Clara and  
          Ventura Counties, as well as the City of Long Beach, to the  
          existing pilot project.  These entities are prepared to  
          administer the electronic filing option immediately, and require  
          legislative action to provide them the avenue needed to  
          officially launch their programs.  The language in AB 1921 will  
          provide the referenced entities with an additional year of  
          financial and workload savings."

          As part of the Political Reform Act's (PRA's) comprehensive  
          scheme to prevent conflicts of interest by state and local  
          public officials, existing law identifies certain elected and  
          other high-level state and local officials who must file SEIs.  
          Similarly, candidates for those positions must file SEIs.  Other  
          state and local public officials and employees are required to  
          file SEIs if the position they hold is designated in an agency's  








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          conflict of interest code.  A position is designated in an  
          agency's conflict of interest code when the position entails the  
          making or participation in the making of governmental decisions  
          that may foreseeably have a material financial effect on the  
          decision maker's financial interests.  While the exact number of  
          people that are required to file SEIs is unknown, the FPPC  
          previously has estimated that the number exceeds 130,000  
          officials and employees statewide.

          The information that must be disclosed on an SEI, and the  
          location at which an SEI is filed, varies depending on the  
          position held by the individual who is required to file an SEI.   
          Although there are some exceptions, individuals who are required  
          to file an SEI typically must file that document with the agency  
          of which they are an elected official or by which they are  
          employed.  
           
          AB 2607 (Davis), Chapter 498, Statutes of 2008, established a  
          pilot project which permits Los Angeles, Merced, Orange, and  
          Stanislaus Counties to permit the electronic filing of an SEI in  
          accordance with regulations adopted by the FPPC.  AB 1149  
          (Davis), Chapter 139, Statutes of 2009, made two minor changes  
          to that pilot project.  The pilot project began in 2009 for SEIs  
          filed for the 2008 calendar year, and is scheduled to conclude  
          with SEIs filed for the 2010 calendar year.  The Legislative  
          Analyst is required to provide a report to the Legislature by  
          February 1, 2012 evaluating the pilot program.

          This bill seeks to add two additional counties (Santa Clara and  
          Ventura) and a city (Long Beach) to the ongoing pilot project  
          that was created by AB 2607.  It is fairly uncommon for the  
          participants in a pilot project to be changed after the pilot  
          project has already begun, in part because such a modification  
          may make it difficult to evaluate the impacts of the pilot  
          program.  If this bill is approved and the three entities that  
          are authorized to participate in the pilot project by this bill  
          do participate, those three entities will be participating for  
          just one (2010) of the three filing years (2008, 2009, 2010)  
          covered by the pilot project.  Additionally, individuals who are  
          required to file SEIs in Santa Clara and Ventura Counties and in  
          the City of Long Beach had to file a paper copy of their SEI for  
          the 2009 calendar year, would have the option of filing  
          electronically for the 2010 calendar year, but then would be  
          required to file a paper copy again for the 2011 calendar year,  








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          absent additional legislative action.

          California voters passed an initiative, Proposition 9, in 1974  
          that created the Fair Political Practices Commission 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.
           

          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 

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