BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 182
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          ASSEMBLY THIRD READING
          AB 182 (Davis)
          As Amended  March 22, 2011
          2/3 vote 

           ELECTIONS           7-0                                         
           
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          |Ayes:|Fong, Logue, Bonilla,     |     |                          |
          |     |Hall, Mendoza, Swanson,   |     |                          |
          |     |Valadao                   |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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 








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            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.  
           








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          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 


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