BILL ANALYSIS Ó AB 2628 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2628 (Levine) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy |Elections and Redistricting |Vote:|4 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill amends the Political Reform Act (PRA) to: 1)Prohibit elected and appointed officers of a state or local agency from being employed by that agency in another capacity, or from being compensated to assist another entity with a permit, regulatory action, or enforcement action before that AB 2628 Page 2 agency, while that officer is in office and for one year after leaving office. 2)Require every state and local agency to post on its website the Statements of Economic Interests (SEIs) that are filed with the agency by specified high-ranking agency officials. FISCAL EFFECT: 1)The Fair Political Practices Commission (FPPC) will incur annual General Fund costs of about $270,000 for two positions to amend regulations, manuals and instructions, respond to increased advice requests, and for increased enforcement. Commission staff also see a potential for litigation due to what staff believes is the broad language of the bill. 2)Minor absorbable costs for the state and local agencies to post the required SEIs on their websites. While the local agencies' costs would be state reimbursable, the limited number of postings required for any single entity would likely not lead to a reimbursement claim. [The requirement for posting of officials SEIs on their respective agencies' websites would pertain to the following offices: elected state officers, judges and commissioners of courts of the judicial branch, members of the Public Utilities Commission, members of the State Energy Resources Conservation and Development Commission, members of the Fair Political Practices Commission, members of the California Coastal Commission, members of the High-Speed Rail Authority, members of planning commissions, members of the board of supervisors, district attorneys, county counsels, county treasurers, and chief administrative officers of counties, mayors, city managers, city attorneys, city treasurers, chief AB 2628 Page 3 administrative officers and members of city councils of cities, and other public officials who manage public investments, and to candidates for any of these offices at any election.] COMMENTS: 1)Background. Current law, commonly known as a "revolving door ban," restricts the post-governmental activities of certain former public officials. There are two main types of revolving door restrictions in the PRA that may apply to former public officials. A one-year ban prohibits certain officials, for one year after leaving public service, from representing any other person by appearing before or communicating with, for compensation, their former agency in an attempt to influence agency decisions that involve the making of general rules (such as regulations or legislation), or to influence certain proceedings involving a permit, license, contract, or transaction involving the sale or purchase of property or goods. The second main type of revolving door restriction permanently prohibits former state administrative officials from being paid to work on proceedings that they participated in while working for the state. The ban prohibits appearances and communications to represent any other person, as well as aiding, advising, counseling, consulting, or assisting in representing any other person, for compensation, before any state administrative agency in a proceeding involving specific parties (such as a lawsuit, a hearing before an administrative law judge, or a state contract) if the official previously participated in the proceeding. AB 2628 Page 4 2)Purpose. This bill prohibits a former official of an agency from being employed by that agency in any other capacity for one year after leaving office. This provision is in response to recent situations in which the California Coastal Commission (Commission) and the South Coast Air Quality Management District (District) both removed long-tenured staff from high-ranking positions. The author expresses a concern that nothing in existing law would prevent a member of the Commission or the District from applying for and serving in top staff positions that were made vacant due to the recent controversial actions of the Commission and District. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081