BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1921|
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                                    CONSENT


          Bill No:  AB 1921
          Author:   Davis (D)
          Amended:  As introduced
          Vote:     27

           
           SENATE ELEC., REAP. & CONST. AMEND. COMM.  :  5-0, 6/15/10
          AYES: Hancock, Denham, DeSaulnier, Liu, Strickland

           ASSEMBLY FLOOR  :  69-1, 5/10/10 - See last page for vote


           SUBJECT  :    Political Reform Act of 1974: electronic filing

            SOURCE  :     California Association of Clerks and Election  
                      Officials
                      City of Long Beach
                      Santa Clara County Board of Supervisors
                      Ventura County Board of Supervisors


           DIGEST  :    This bill 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 interest to  
          be filed electronically.

           ANALYSIS  :    Existing law requires that candidates for and  
          current holders of specified elected or appointed state and  
          local offices and designated employees of state and local  
          agencies file statements of economic interest (SEIs)  
          disclosing their financial interests, including  
          investments, real property interests, and income.
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          Existing law establishes a pilot project which permits Los  
          Angeles, Merced, Orange, and Stanislaus Counties to allow  
          the electronic filing of an SEI in accordance with  
          regulations adopted by the Fair Political Practices  
          Commission (FPPC).  The pilot project covers the reporting  
          periods of 2008 through 2010 and requires each  
          participating county to submit a specified report to the  
          FPPC not later than July 1, 2011.  The FPPC must then  
          transmit these reports, as well as any comments on the  
          reports, to the Legislative Analyst's Office (LAO) no later  
          than August 15, 2011, and requires the LAO to provide a  
          report to the Legislature evaluating the pilot project not  
          later than February 1, 2012.

          This bill permits Santa Clara and Ventura Counties and the  
          City of Long Beach to participate in this ongoing pilot  
          project.

           Background
           
          Statements of Economic Interests  .  As part of the Political  
          Reform Act'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 also 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  
          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 a SEI, and the location at which a 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 a  
          SEI typically must file that document with the agency of  
          which they are an elected official or by which they are  

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          employed.

           Comments
           
          AB 2607 (Davis), Chapter 498, Statutes of 2008, established  
          a pilot project which permits Los Angeles, Merced, Orange,  
          and Stanislaus Counties to allow 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/16/10)

          California Association of Clerks and Election Officials  
          (co-source)
          City of Long Beach (co-source)
          Santa Clara County Board of Supervisors (co-source)
          Ventura County Board of Supervisors (co-source)
          City Clerks Association of California
          City of Thousand Oaks
          Orange County Board of Supervisors


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          AB 2607 (Davis), Chapter 498, Statutes of 2008, 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 SEIs  

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          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.  
           This bill adds 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 this bill will provide the  
          referenced entities with an additional year of financial  
          and workload savings.

          According to the Santa Clara County Board of Supervisors, a  
          co-sponsor of this bill, "Our County is well suited to  
          begin immediate participation in the pilot program.  In  
          October 2009, our Board authorized the purchase of an  
          e-filing software program for Form 700 submissions to  
          simplify the current submission process for both filers and  
          the Clerk of the Board.  The software offers an electronic  
          submission feature, which would be easy to implement if AB  
          1921 is enacted.  Our Clerk of the Board is the local  
          filing officer for over 4,000 filers in Santa Clara County.  
          Most of these filers would qualify for electronic filing  
          under the pilot program.  This includes various county  
          employees and members of local school boards and special  
          districts.  

          As you can imagine, the large number of filers in our  
          county creates a tremendous amount of work for the Clerk's  
          Office.  The ability to accept electronic submissions of  
          statements of economic interest forms will result in staff  
          efficiencies, reduce the risk of errors, and provide some  
          cost savings."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Arambula, Bass, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, De Leon,  
            Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,  
            Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,  
            Hagman, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,  

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            Ma, Miller, Monning, Nava, Nestande, Niello, Nielsen, V.  
            Manuel Perez, Portantino, Ruskin, Salas, Silva, Skinner,  
            Smyth, Audra Strickland, Swanson, Torres, Torrico, Tran,  
            Villines, Yamada, John A. Perez
          NOES:  Anderson
          NO VOTE RECORDED:  Davis, De La Torre, DeVore, Harkey,  
            Mendoza, Norby, Saldana, Solorio, Torlakson, Vacancy


          DLW:DO  6/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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