BILL ANALYSIS Ó
AB 2062
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2062 (Davis)
As Amended August 13, 2012
2/3 vote. Urgency
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|ASSEMBLY: |70-0 |(June 11, 2012) |SENATE: |35-0 |(August 31, |
| | | | | |2012) |
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Original Committee Reference: E. & R.
SUMMARY : Allows an agency to permit the electronic filing of a
statement of economic interests (SEI), including amendments, in
accordance with regulations adopted by the Fair Political Practices
Commission (FPPC). Specifically, this bill :
1)Requires the FPPC, in consultation with interested agencies, to
use common database integration features in developing database
design requirements for all electronic filings.
2)Requires an agency which intends to permit electronic filing of
SEIs to submit a proposal to the FPPC for approval and
certification. Requires an agency that submits a proposal to
include a fee of $1,000, payable to the FPPC, to cover the costs
of approving and certifying the proposal. Prohibits an agency
from charging a person to electronically file an SEI.
3)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.
4)Requires an agency's proposed electronic filing system to meet
certain requirements, as specified.
5)Permits the FPPC to adopt regulations to require an agency to
redact information on an SEI prior to posting it on the Internet.
6)Permits the FPPC to conduct discretionary audits of an agency's
approved and certified electronic filing system to evaluate its
performance.
7)Requires the FPPC to accept an electronic copy of an SEI that is
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forwarded to it by an agency that has received an electronically
filed statement from a filer as provided for under this bill.
8)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.
9)Contains an urgency clause, allowing this bill to take effect
immediately upon enactment.
The Senate amendments exempt the Counties of Los Angeles, Orange,
Santa Clara and Ventura and the City of Long Beach, which
participated in a specified pilot program established under existing
law, from paying the $1,000 fee.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar to
the version approved by the Senate.
FISCAL EFFECT : According to the Senate Appropriations Committee,
the FPPC indicates annual costs of approximately $150,000, likely
offset by fee revenue (General Fund). 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.
COMMENTS : According to the author, "The Electronic Form 700 program
has been undeniable success story. According to the Legislative
Analyst's Office ÝLAO], the program has resulted in decreases in
staff hours, overtime costs, and temporary employee costs.
Furthermore, the Electronic Form 700 program was found to be 'more
efficient than the paper-based process' and garnered overwhelmingly
positive responses from participants in the pilot program. This
bill simply adopts the recommendation of the LAO that all counties
be permitted to adopt the Electronic Form 700 Program."
In 2009, the pilot project referenced above was established which
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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 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, 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.
The Senate amendments exempt specific governmental entities that
participated in the pilot program described above from paying a
$1,000 fee to offset the costs to the FPPC of reviewing and
approving the electronic filing system. Specifically, this bill
exempts the Counties of Los Angeles, Orange, Santa Clara and Ventura
and the City of Long Beach from the requirement to pay that fee.
These amendments offset some of the up-front implementation costs
incurred by pilot program participants that currently have FPPC
approved electronic filing systems in place. This bill, as amended
in the Senate, is consistent with the Assembly actions.
Please see the policy committee analysis for a full discussion of
this bill.
Analysis Prepared by : Nichole Becker / E. & R. / (916) 319-2094
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