BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 309
                                                                  Page  1

          Date of Hearing:  April 6, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                     AB 309 (Cook) - As Amended:  March 21, 2011
           
          SUBJECT  :  Public officers: removal from office.

           SUMMARY  :  Requires an appointed or ex officio office to become 
          vacant when the incumbent is debarred, suspended, disqualified, 
          or otherwise excluded from participating in a covered 
          transaction, pursuant to federal law, and certain conditions are 
          met.  Specifically,  this bill  :  

          1)Requires an appointed or ex officio office to become vacant 
            when the incumbent is debarred, suspended, disqualified, or 
            otherwise excluded from participating in a covered 
            transaction, pursuant to federal law, and all of the following 
            occur:

             a)   The office is one the incumbent holds ex officio, by 
               virtue of holding another office or as an appointee; 

             b)   The appointed or ex officio office is on the governing 
               board of a local agency that is, or may be reasonably be 
               expected to be, a participant or principal in a covered 
               transaction, pursuant to federal law; and,

             c)   A federal agency head or designee has not granted the 
               incumbent an exception in writing permitting the incumbent 
               to participate in a particular covered transaction in which 
               the local agency is, or may reasonably be expected to be, a 
               participant or principal.

          2)Defines "Excluded Parties List" to mean the list maintained 
            and disseminated by the federal General Services 
            Administration containing names of, and other information 
            about, persons who are debarred, suspended, disqualified, or 
            otherwise excluded from participating in a covered 
            transaction, pursuant to federal law.

          3)Defines "local agency" to include, but not be limited to, a 
            county, whether general law or chartered; city, whether 
            general law or chartered; city and county; school district; 
            municipal corporation; district; political subdivision; or any 








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            board, commission, or agency of one of these entities.

          4)Defines "federal law" to include, but not be limited to, 
            federal regulations adopted pursuant to Section 2455 of Public 
            Law 103-355 (108 Stat. 3327), Executive Order No. 11738, 
            Executive Order No. 12549, and Executive Order No. 12689.

          5)Requires these provisions to not apply to an elective office.

          6)Requires, when an office becomes vacant because the incumbent 
            is debarred, suspended, disqualified, or otherwise excluded 
            from participating in a covered transaction, pursuant to 
            federal law, and certain conditions are met, the local agency 
            on which the vacancy occurs to give notice of that vacancy to 
            the officer or body authorized to fill the vacancy.

           
          EXISTING LAW  :
           
           1)Establishes under what circumstances a public office becomes 
            vacant.

          2)Requires, when an officer is removed, declared insane, or 
            convicted of a felony or offense involving a violation of his 
            or her official duty, or when his or her election or 
            appointment is declared void, the body or person before whom 
            the proceedings are had to give notice to the officer 
            empowered to fill the vacancy.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)The Riverside County Transportation Commission (RCTC) has 32 
            appointed commissioners, ranging from county supervisors to 
            city council members.  Every city in Riverside County has an 
            appointee along with the five county supervisors of Riverside 
            County.  The Governor appoints one non-voting individual, who 
            is the director of the local Department of Transportation 
            district office.

          In January 2010, the Federal Highway Administration suspended 
            four members of the San Jacinto City Council from 
            participating in federally funded transportation programs and 
            projects because these four council members had been indicted 








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            in November 2009 on 155 counts, including 56 felonies and 99 
            misdemeanors.  The four council members pleaded not guilty.  
            Two of the council members also served on RCTC as commissioner 
            and alternate commissioner.  In these capacities they helped 
            select federally funded highway transportation projects for 
            the county.  As such, they participated in federal "covered 
            transactions" and were subject to suspension when adequate 
            evidence exists to suspect misconduct indicating a lack of 
            integrity or honesty affecting their responsibility.  A 
            "covered transaction" is one that requires the consent of a 
            Department of Transportation official or, if no such consent 
            exists, one that equals or exceeds $25,000.

          The San Jacinto City Council removed the two council members 
            from RCTC and replaced them with the sole city council member 
            to not be indicted.  Because RCTC is an appointed commission, 
            it does not have the ability to remove commissioners itself.  
            The two council members remain on the San Jacinto city council 
            because, as provided for under existing law, they will 
            automatically be removed from their directly elected offices 
            only if they have been convicted of felony charges or any 
            offense involving official duties.

          2)According to the author, AB 309 corrects this problem by 
            requiring an appointed member or ex officio member to vacate 
            his or her office when that member has been debarred, 
            suspended, disqualified, or otherwise excluded from 
            participating in federal transactions.  The author emphasizes 
            AB 309 does not speak to indictments or allegations of 
            criminal activities, but rather ensures federal government 
            action does not jeopardize funding for communities.



          3)AB 2672 (Cook, 2010) contained identical provisions.  This 
            Committee passed AB 2672 on a 9-0 vote.  The Governor vetoed 
            AB 2672, saying:

          "The removal of appointed or ex-officio officers have 
            historically, and properly, been handled on the local level 
            and I believe the local appointing entity should continue to 
            have the ultimate say on the removal of these officials."

          4)Support arguments:  Supporters might say AB 309 is a good 
            government bill that ensures agencies, boards, commissions, 








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            and committees that solely have appointed members will not 
            have their federal funding jeopardized.

          Opposition arguments:  Opposition might argue the appointing 
            entity should have final say of whether or not its 
            representative on the agency, board, commission, or committee 
            is fit to continue to serve.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Jennifer Klein Baldwin / L. GOV. / 
          (916) 319-3958