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;









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             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 








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            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