BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 976 (Vidak) - Political Reform Act of 1974: postgovernment employment ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 27, 2016 |Policy Vote: E. & C.A. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 976 would extend "revolving door" prohibitions for former legislators and other elected statewide officeholders. Fiscal Impact: The Fair Political Practices Commission (FPPC) would incur General Fund costs of $53,000 in the first year, and $46,000 annually ongoing to implement the provisions of the bill. SB 976 (Vidak) Page 1 of ? Background: "Revolving door" prohibitions are intended to address situations whereby former elected officers and other officials (1) return to represent clients who have business before, or (2) are seeking to influence policy decisions made by their former agencies. In many of these instances, the former official may be lobbying former subordinates or peers who may feel pressured to be accommodating. Current law generally defines "lobbyist" as any individual who receives $2,000 or more in economic consideration in a calendar month, other travel reimbursements, or whose principal duties as an employee are to communicate directly or through his or her agents with any elective state official, agency official, or legislative official for the purpose of influencing legislative or administrative action. FPPC regulations further define non-contract lobbyists as individuals who spend one-third or more of their time, in any calendar month, for which they receive compensation from his or her employer, engaging in direct communication, other than administrative testimony, with one or more qualifying officials for the purpose of influencing legislative or administrative action. The existing revolving door prohibitions apply whether or not the former elected state officeholder qualifies as a "lobbyist" under this current definition. Current law prohibits a member of the Legislature, for a period of one year after leaving office, from acting as a compensated agent or attorney for, or otherwise representing, any other person by making appearances before or communications with the Legislature if the appearance or communication is made for the purpose of influencing legislative action. Additionally, current law prohibits elected state officers other than Member of the Legislatures, for a period of one year after leaving office, from acting as a compensated agent or attorney for, or otherwise representing any other person by making any formal or informal appearance, or by making any oral or written communication before any state administrative agency if the appearance or communication is for the purpose of influencing specified administrative actions. SB 976 (Vidak) Page 2 of ? However, the aforementioned prohibitions do not apply to any individual who is or becomes either (1) an officer or employee of another state agency, board, or commission if the appearance or communication is for the purpose of influencing legislative or administrative action on behalf of that entity, or (2) an official holding an elective office of a local government agency if the appearance or communication is for the purpose of influencing legislative or administrative action on behalf of the local government agency. Proposed Law: This bill would (1) extend the time period for these prohibitions on former legislators to two years commencing with the effective date of the resignation, (2) extend these prohibitions on former legislators to also include engaging in the above-described activities before the Governor, or any officer or employee of the Governor, and (3) extend the time period for these prohibitions on elected state officers, other than a Member of the Legislature (a statewide elected officer or a member of the Board of Equalization), to two years commencing with the effective date of the resignation. Related Legislation: ACA 9 (Gomez), which is pending in Assembly Elections and Redistricting Committee, would, among other things, prohibit a member of the Legislature who vacates his or her seat prior to the expiration of the term of office for other than personal medical reasons from being permitted to lobby, for compensation before the Legislature until 12 months have passed from the date his or her term of office would have expired. AB 2284 (Patterson), which recently failed passage in the Assembly Elections and Redistricting Committee, would have required a legislator who resigns before the completion of his or her term to use surplus campaign funds to pay for the resulting special election. SB 976 (Vidak) Page 3 of ? Staff Comments: FPPC would require one-half of a position (political reform consultant) to administer this bill. Workload would include (1) amending current regulations to clarify the new rules, (2) responding to requests, and (3) updating manuals and instruction materials. Estimated costs would be $53,000 in the first year, and $46,000 annually thereafter. Any local government costs resulting from the mandate in this measure are not state-reimbursable because the mandate only involves the definition of a crime or the penalty for conviction of a crime. -- END --