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 AB 309 Page 2 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 AB 309 Page 3 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, AB 309 Page 4 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