BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 409
                                                                Page  1

        ( Without Reference to File  )

        CONCURRENCE IN SENATE AMENDMENTS
        AB 409 (Quirk-Silva)
        As Amended  August 29, 2013
        2/3 vote.  Urgency 
         
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(May 28, 2013)  |SENATE: |37-0 |(September 11, 2013) |
         ---------------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |6-0  |(September 12,      |RECOMMENDATION: |concur    |
        |(E. & R.)        |     |2013)               |                |          |
         ------------------------------------------------------------------------ 

        Original Committee Reference:    HIGHER ED.   
         
         SUMMARY  :  Permits the Fair Political Practices Commission (FPPC) to  
        develop and operate an online system for filing statements of  
        economic interests (SEIs).  

         The Senate amendments  delete the Assembly version of this bill, and  
        instead:

        1)Permit the FPPC to develop and operate an online system for  
          filing SEIs as required by the Political Reform Act (PRA).  

        2)Require the FPPC, if it develops an online system for filing SEIs  
          pursuant to this bill, to do all of the following:

           a)   Include the following features in any system it develops:

             i)     A method by which a filer can electronically file his  
               or her SEI free of charge;

             ii)    Security safeguards, including firewalls, data  
               encryption, secure authentication, and necessary hardware  
               and software and industry best practices to ensure the  
               security and integrity of the information contained in each  
               SEI; and,









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             iii)   The ability to issue a confirmation to a person who  
               files his or her SEI using the system, including a  
               notification of the date and time that the SEI was received  
               by the FPPC and method for the filer to view and print the  
               information received.

           b)   Conduct public hearings on the implementation of the  
             system, maintain ongoing coordination among affected state and  
             local agencies as necessary, and develop training and  
             assistance programs for filing officers and the filer;

           c)   Specify the categories of persons that are permitted to  
             file their SEIs using that system, and, with respect to any  
             category of filer that it permits to file SEIs using that  
             system, assume the duties of the filing officer for each filer  
             within that category of filers upon authorization of the  
             designated filing officer.  With respect to any filing officer  
             from which the FPPC assumes the duties of that officer,  
             requires the filing officer to provide the FPPC with the name  
             and contact information for each filer in the officer's  
             jurisdiction, and provides that the duties assumed by the FPPC  
             include the following:

             i)     Notifying the filer of his or her filing obligation;

             ii)    Receiving the filer's SEI; 

             iii)   Ensuring compliance with filing requirements in the  
               event the filer fails to file in a timely manner or is  
               required to amend his or her SEI; and,

             iv)    Distributing to filing officers copies of the completed  
               SEI of a person who is required to file more than one SEI  
               for each period, and who, despite being authorized to file  
               the SEI with the FPPC electronically, elects to file the SEI  
               with the FPPC using a paper form.

        3)Require the FPPC to notify a filing officer who may be affected  
          by a determination by the FPPC to authorize a category of filers  
          to file SEIs electronically no later than six months before the  
          implementation of that determination, in order to allow adequate  
          preparation for implementation.

        4)Provide that a paper copy of an SEI filed electronically and the  
          confirmation that is retained by the filer, that shows that the  








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          filer timely filed his or her SEI, creates a rebuttable  
          presumption that the SEI was filed on time.

        5)Permit the FPPC to make the data filed using the online system  
          for filing of SEIs available on its Web site, and require the  
          FPPC to provide assistance to those seeking public access to the  
          information.  Require the FPPC to redact private information from  
          the data that is made available on the Internet, as specified.

        6)Provide that a person who is required to file more than one SEI  
          for each reporting period and who files his or her SEI with the  
          FPPC electronically is not required to file an SEI with any other  
          person or agency.

        7)Permit the FPPC, after it makes an initial determination  
          regarding which categories of persons are permitted to file SEIs  
          electronically through the online system, to revise the  
          determination at any time, as specified.

        8)Add an urgency clause, allowing this bill to take effect  
          immediately upon enactment.

         AS PASSED BY THE ASSEMBLY  , this bill required the California State  
        University Board of Trustees and the California Community Colleges  
        Board of Governors to convene a task force to evaluate and report  
        to the Governor and the Legislature how best to serve the  
        transitional needs of postsecondary student veterans, as specified,  
        and encouraged the University of California Regents to participate  
        in the task force.
         
        FISCAL EFFECT  :  According to the Senate Appropriations Committee,  
        pursuant to Senate Rule 28.8, negligible state costs.

         COMMENTS  :  As part of the PRA's comprehensive scheme to  
        prevent conflicts of interest by state and local public  
        officials, existing law identifies certain elected and other  
        high-level state and local officials who must file SEIs.  
        Similarly, candidates for those positions must file SEIs.   
        Other state and local public officials and employees are  
        required to file SEIs if the position they hold is designated  
        in an agency's conflict of interest code.


        By permitting the FPPC to establish an electronic system for  
        filing SEIs, the FPPC anticipates that this bill could provide  








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        significant cost savings to the state by eliminating the staff  
        time currently spent processing and filing SEIs, providing  
        public access to paper filings, and manually scanning and  
        redacting information from SEIs that will be posted on the  
        FPPC's Web site.  Additionally, the FPPC anticipates that an  
        electronic filing system would significantly reduce  
        inadvertent errors on SEIs, which would reduce the need to  
        send correspondence to attempt to correct those inadvertent  
        errors.

        While this bill permits the FPPC to establish an electronic  
        system for filing SEIs, it would be up to each individual  
        filer to decide whether to use that system or to file an SEI  
        on paper.  This bill permits the FPPC to make the information  
        that is filed using the electronic system available on its Web  
        site, but does not require it to do so.

        This bill was substantially amended in the Senate and the  
        Assembly-approved provisions of this bill were deleted.  As a  
        result, this bill was re-referred to the Assembly Elections and  
        Redistricting Committee pursuant to Assembly Rule 77.2, and the  
        committee subsequently recommended that the Assembly concur in the  
        Senate amendments to this bill.

        Please see the policy committee analysis for a full discussion of  
        this bill.


         Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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