BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 2062
Author: Davis (D)
Amended: 8/13/12 in Senate
Vote: 27 - Urgency
SENATE ELECTIONS & CONST. AMEND. COMM. : 5-0, 07/03/12
AYES: Correa, La Malfa, Gaines, Lieu, Yee
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/6/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 70-0, 6/11/12 - See last page for vote
SUBJECT : Political Reform Act of 1974: statements of
economic
interest
SOURCE : California Association of Clerks of Election
Officials
DIGEST : This bill allows an agency to permit the
electronic filing of a statement of economic interests
(SEI), in accordance with regulations adopted by the Fair
Political Practices Commission (FPPC), as specified.
Senate Floor Amendments of 8/13/12 (1) clarify that the
$1,000 fee required by this bill will not be applicable to
counties that were originally part of the pilot, and are
currently still participating in the electronic filing of
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SEIs. These include the Counties of Los Angeles, Orange,
Santa Clara, Ventura and the City of Long Beach, and (2)
clarify that the fee is payable to the FPPC.
ANALYSIS : Existing law establishes, until December 31,
2012, a pilot program authorizing specified local
government agencies to develop and implement a system for
the electronic filing of statements of economic interests
by certain public officials, as specified.
This bill:
1. Authorizes an agency to permit the electronic filing of
an SEI, including amendments, in accordance with
regulations adopted by the FPPC.
2. Requires the FPPC, in consultation with interested
agencies, to use common database integration features in
developing database design requirements for all
electronic filings.
3. Requires an agency which intends to permit electronic
filing of SEIs to submit a proposal to the FPPC for
approval and certification. Prohibits an agency from
recovering the costs of the filing fee by charging a
person to electronically file an SEI. An agency that
submits a proposal shall include a fee of $1,000 that is
payable to the FPPC for the costs of approving and
certifying the proposal. However, the Counties of Los
Angeles, Orange, Santa Clara, and Ventura and the City
of Long Beach, which participated in the pilot program
pursuant to Section 87500.1, shall not be required to
pay the $1,000 fee.
4. Requires the FPPC to review an agency's proposal for
compliance with the system requirement regulations
adopted as required by this bill. Requires the FPPC to
approve and certify the agency's filing system as soon
as practicable after receiving the agency's submitted
proposal if the system complies with the regulations.
5. Requires an agency's proposed electronic filing system
to meet certain requirements, as specified.
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6. Permits the FPPC to adopt regulations to require an
agency to redact information on an SEI prior to posting
it on the Internet.
7. Permits the FPPC to conduct discretionary audits of an
agency's approved and certified electronic filing system
to evaluate its performance.
8. Requires the FPPC to accept an electronic copy of an SEI
that is forwarded to it by an agency that has received
an electronically filed statement from a filer as
provided for under this bill.
9. Permits a city or county, which developed an electronic
filing system pursuant to a specified pilot program
established in law, to continue to use that system for
purposes of this bill, including, but not limited to,
the time during which the FPPC is adopting regulations
as required by this bill. Requires the city or county,
after the FPPC's regulations take effect, to submit a
description of its electronic filing system for approval
and certification within a reasonable time as determined
by the FPPC. Prohibits a city or county from continuing
to use an electronic filing system originally developed
pursuant to law if the FPPC does not approve and certify
that electronic filing system.
10.Contains an urgency clause, allowing this bill to take
effect immediately upon enactment.
Background
In 2009, a pilot project was established which permitted
participating governmental entities to accept electronic
filing of an SEI in accordance with regulations adopted by
the FPPC. As required by law, participants in the pilot
project were required to submit reports to the FPPC and the
FPPC was required to forward the reports and provide
additional comments to the Legislative Analyst's Office
(LAO). Additionally, the LAO was required to submit a
report to the Legislature evaluating the pilot project
earlier this year.
According to the LAO report, the participating government
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entities indicated that the paper-based filing process was
time-consuming and required significant amounts of staff
time to review the SEIs, work with the filers to correct
errors and maintain the paper file systems. However, after
implementing the electronic filing system, participating
entities found that that electronic filing resulted in
operational efficiencies through reduced personnel due to
the significant reduction in the number of errors in the
filers' SEIs and other operational costs. Additionally, it
was reported to the LAO that none of government entities
reported any security issues with the electronic filing
systems and found that most of the public officials and
employees who filed using the electronic filing system
considered it to be a useful and an easy process.
As a result of these findings, the LAO made the following
recommendations: (1) the Legislature should allow
participating entities to continue electronic filing on an
ongoing basis; (2) the Legislature should consider giving
all governments the option to establish an electronic
filing system; and (3) the Legislature should authorize the
FPPC to establish any guidelines and specifications to be
followed by the government entities when developing and
using the electronic filing systems.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, the FPPC
indicates annual costs of approximately $150,000, likely
offset by fee revenue (General).
There are thousands of local agencies including counties,
cities, special districts and school districts. If only
150 of those agencies elect to use electronic filing and
pay the $1,000 fee, all costs to the FPPC will be
reimbursed.
SUPPORT : (Verified 8/9/12)
California Association of Clerks of Election Officials
(source)
Common Cause
Fair Political Practices Commission
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Santa Clara County Board of Supervisors
ASSEMBLY FLOOR : 70-0, 6/11/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Campos, Carter, Chesbro,
Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer,
Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani,
Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Hall,
Harkey, Hayashi, Roger Hernández, Hill, Hueso, Huffman,
Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma,
Mendoza, Miller, Mitchell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Solorio, Swanson, Torres, Valadao, Wieckowski,
Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Charles Calderon, Cedillo, Halderman,
Huber, Jones, Mansoor, Monning, Morrell, Smyth, Wagner
DLW:d 8/15/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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