BILL ANALYSIS Ó AB 182 Page 1 ASSEMBLY THIRD READING AB 182 (Davis) As Amended March 22, 2011 2/3 vote ELECTIONS 7-0 ----------------------------------------------------------------- |Ayes:|Fong, Logue, Bonilla, | | | | |Hall, Mendoza, Swanson, | | | | |Valadao | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Allows participants in a pilot project that permits the electronic filing of a statement of economic interests (SEI) to continue to receive electronic filings of SEIs during the 2012 calendar year while the Legislature reviews the results of the pilot project. Specifically, this bill : 1)Extends the end date of a pilot project that allows Los Angeles, Merced, Orange, Santa Clara, Stanislaus, and Ventura counties and the City of Long Beach to permit SEIs to be filed electronically from January 1, 2012, to December 31, 2012. 2)Contains various findings and declarations. 3)Makes technical changes. EXISTING LAW : 1)Creates the Fair Political Practices Commission (FPPC), and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA). 2)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 SEIs disclosing their financial interests, including investments, real property interests, and income. 3)Establishes a pilot project which permits Los Angeles, Merced, Orange, Santa Clara, Stanislaus, and Ventura counties and the AB 182 Page 2 City of Long Beach to permit the electronic filing of an SEI in accordance with regulations adopted by the FPPC. 4)Provides that the pilot project will begin on January 1, 2009, and end on January 1, 2012. FISCAL EFFECT : This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS : According to the author, "California voters passed an initiative, Proposition 9, in 1974 that created the ÝFPPC] which requires candidates, current office holders and designated employees of state and local agencies to file statements of economic interest disclosing their financial interests. 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 (2010) added Santa Clara and Ventura Counties, as well as the City of Long Beach, to the existing pilot project. AB 182 would extend the sunset date for the pilot program from January 1, 2012 to December 31, 2012." As part of the 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 conflict of interest code. While the exact number of people that are required to file SEIs is unknown, the FPPC has estimated that the number exceeds 200,000 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 182 Page 3 Existing law creates a pilot project, currently scheduled to end on January 1, 2012, to evaluate the efficacy and desirability of allowing for SEIs to be filed electronically. Participants in the pilot project are required to submit a report to the FPPC no later than July 1, 2011, which in turn is required to forward the reports to the Legislative Analyst's Office (LAO) along with any comments that the FPPC has on those reports or the pilot project. Based on that information, the LAO is required to provide a report to the Legislature evaluating the pilot project not later than February 1, 2012. This bill will allow jurisdictions that are participating in the pilot project to continue to accept electronically filed SEIs for the 2012 calendar year while the Legislature reviews the LAO's report. If the Legislature subsequently decides, upon reviewing that report, to permanently allow SEIs to be filed electronically, this policy change would allow the participants in the pilot project to continue accepting SEIs electronically without interruption. 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. AB 1921 (Davis), Chapter 58, Statutes of 2010, allowed Santa Clara and Ventura counties and the City of Long Beach to participate in the pilot project that was created by AB 2607 (Davis). 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. Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094 FN: 0000284 AB 182 Page 4