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
          
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          |Version: April 27, 2016         |Policy Vote: E. & C.A. 5 - 0    |
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          |Urgency: Yes                    |Mandate: Yes                    |
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          |Hearing Date: May 9, 2016       |Consultant: Robert Ingenito     |
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          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  
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          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  
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          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  
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          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.


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