BILL ANALYSIS Ó SB 593 Page 1 Date of Hearing: June 21, 2011 ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING Paul Fong, Chair SB 593 (Gaines) - As Amended: April 26, 2011 SENATE VOTE : 39-0 SUBJECT : Political Reform Act of 1974: Tahoe Regional Planning Agency: members: statement of economic interests. SUMMARY : Requires each California member of the Tahoe Regional Planning Agency (TRPA) to comply with the Political Reform Act (PRA) and to file a statement of economic interests (SEI). Specifically, this bill : 1)Requires each California member of the TRPA who represents the state in matters officially coming before the TRPA to comply with the requirements of the PRA and to file a SEI with the Fair Political Practices Commission (FPPC). 2)Prohibits a court from invalidating, and prohibits the FPPC from seeking to invalidate, an action of the TRPA as a remedy for a violation of the requirements of this bill by a California member of the TRPA. EXISTING LAW : 1)Creates the TRPA as a separate legal entity, and prescribes the membership and functions and duties of the TRPA. 2)Requires each member and employee of the TRPA to disclose his or her economic interests in the region that is under the jurisdiction of the TRPA within 10 days after being seated on the governing board or being employed by the agency. Requires each member and employee thereafter to disclose any further economic interest which he or she acquires as soon as feasible after he or she acquires it. Defines "economic interest" to mean any of the following: a) Any business entity operating in the region that is under the jurisdiction of the TRPA in which the member or employee has a direct or indirect investment worth more than $1,000; SB 593 Page 2 b) Any real property located in the region that is under the jurisdiction of the TRPA in which the member or employee has a direct or indirect interest worth more than $1,000; c) Any source of income attributable to activities in the region that is under the jurisdiction of the TRPA, other than loans by or deposits with a commercial lending institution in the regular course of business, aggregating $250 or more in value received by or promised to the member within the previous 12 months; or, d) Any business entity operating in the region that is under the jurisdiction of the TRPA in which the member or employee is a director, officer, partner, trustee, employee, or holds any position of management. 3)Prohibits a member or employee of the TRPA from making, or attempting to influence, an agency decision in which the member or employee knows or has reason to know that he or she has an economic interest. Requires a member or employee of the TRPA to disqualify him or herself from making or participating in the making of any decision of the agency when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the economic interests of the member or employee. 4)Requires specified state and local officials to file periodic SEIs disclosing their financial interests in accordance with the PRA or the provisions of their respective agencies' conflict of interest codes. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. State-mandated local program; contains a crimes and infractions disclaimer. COMMENTS : 1)Purpose of the Bill : According to the author, "Existing law does not require California members of the Tahoe Regional Planning Agency to file with the Fair Political Practices Commission a statement of economic interests. SB 593 would require them to do so, creating an important layer of SB 593 Page 3 transparency and oversight for this governing board." 2)Background : The TRPA was established in 1969 when Congress ratified the Tahoe Regional Planning Compact between California and Nevada. The TRPA was created as a regional agency because the Lake Tahoe watershed crosses a number of state and local political boundaries. The TRPA has a 15-member governing board-seven members from California, seven members from Nevada, and a non-voting member appointed by the President. The board's mandate is to set policy and approve amendments to the Lake Tahoe Regional Plan. According to the TRPA, it is the responsibility of the board to use data along with public input to make decisions and create regulations that protect the health and quality of Lake Tahoe. 3)Political Reform Act of 1974 : 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. REGISTERED SUPPORT / OPPOSITION : Support / Opposition None on file. Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094