BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  AB 1955                     HEARING:  6/16/10
          AUTHOR:  De La Torre                  FISCAL:  No
          VERSION:  4/12/10                     CONSULTANT:  Detwiler

                              INCOMPATIBLE OFFICES
          
                           Background and Existing Law  

          In 1850, the Legislature adopted the English common law to  
          guide the California courts, to the extent that the common  
          law isn't inconsistent with the United States Constitution,  
          the California Constitution, or state statutory laws.  Many  
          court decisions and Attorney Generals' opinions interpreted  
          the common law ban on holding incompatible offices.  A  
          person who assumes the duties of a second, incompatible  
          office automatically forfeits the first office.

          Frustrated by local officials who ignored the ban on  
          incompatible offices, the Legislature codified the common  
          law doctrine (SB 274, Romero, 2005).  Written with the  
          Attorney General's help, the statutes declare that a public  
          official shall not simultaneously hold two public offices  
          that are incompatible.  State law spells out three  
          circumstances where offices are incompatible:
                 Either office can audit, overrule, remove members  
               of, dismiss employees of, or supervise the other  
               office or body,
                 A significant clash of duties or loyalties between  
               the offices is possible, or
                 Public policy considerations make it improper to  
               hold both offices.

          The ban against holding incompatible offices doesn't apply:
                 When state law compels or allows simultaneous  
               office holding.
                 To government employment, including civil service  
               positions.
                 To advisory bodies.

          When two public offices are incompatible, a public officer  
          is deemed to have forfeited the first office when assuming  
          the second office.  The Attorney General can enforce this  
          ban.





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          The Los Angeles County District Attorney is prosecuting the  
          first known case under the 2005 Romero bill.  Sergio  
          Calderon won election to the Maywood city council in 2005  
          and in 2006 won election to the Water Replenishment  
          District of Southern California's board of directors.  In  
          2008, the District Attorney sued to remove Calderon from  
          his city council seat.  Calderon won a second term on the  
          Maywood city council in November 2009, but resigned from  
          his unexpired first term later that month.  He was not  
          sworn in for the second term, but the case against Calderon  
          is still pending.  The District Attorney wants the statute  
          to be more specific in spelling out the circumstances where  
          public offices are incompatible.


                                   Proposed Law  

          Assembly Bill 1955 adds three more circumstances to the  
          statutory list of situations in which public offices are  
          incompatible:
                 Both entities have eminent domain powers where the  
               geographic jurisdictions overlap.
                 Either entity can set a fee or rate or impose a tax  
               or levy directly or indirectly on the other.
                 Either entity can investigate, monitor, or sue the  
               other.

          AB 1955 declares that simultaneously serving on a city  
          council or county board of supervisors that has declared  
          itself as a community redevelopment agency is not deemed to  
          be holding incompatible offices.


                                     Comments  

          1.   You can't serve two masters  .  The ban on holding  
          incompatible public offices relies on a perfectly  
          understandable premise.  One person cannot serve two  
          competing interests; inevitably one or the other will be  
          compromised.  The public's trust in state and local  
          officials rests on knowing that leaders will advance their  
          constituents' interests.  Trying to promote two competing  
          agencies' conflicting goals always results in a conflict of  
          interests, undermining integrity and public trust.  AB 1955  
          builds on this premise by describing three more  
          circumstances that lead to incompatible offices.  The  





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          clearer the statutory language, the easier it is for public  
          officials to anticipate and avoid improper behavior.   
          Statutory clarity also makes it easier to depose officials  
          who scorn public integrity.

          2.   Tread lightly  .  The language of the 2005 codification  
          of the common law doctrine was the product of legal  
          experts' careful drafting.  The Attorney General shaped the  
          final language, based on deep knowledge of case law and  
          prior formal legal opinions.  The statute openly declares  
          that it codifies the common law rule, as did an uncodified  
          declaration in the 2005 Romero bill.  The language proposed  
          by AB 1955 was not part of the Legislature's 2005  
          codification of the common law rule.  The Committee may  
          wish to consider how AB 1955 can add three more  
          circumstances to the statute, but still retain the claim  
          that it codifies the common law.  Either the 2005  
          legislation was incomplete and wrongly claimed to codify  
          the common law, or AB 1955 goes beyond the former common  
          law and wrongly claims to codify that rule.  When writing  
          state laws that lead to the automatic forfeiture of a  
          public official's status, legislators must proceed  
          carefully.

          3.   Illustrative instead of determinative  ?  When the 2005  
          Romero bill listed the three characteristics that result in  
          incompatible offices, it also contained an explanation of  
          the first characteristic --- supervisory powers.  Instead  
          of adding three more characteristics to the statutory list,  
          the Committee may wish to consider amendments that convert  
          those three items into illustrations of the current law's  
          second characteristic --- the possibility of a significant  
          clash of duties or loyalties.  While eminent domain,  
          revenues, and lawsuits might result in incompatible duties,  
          there are plenty of circumstances where the potential use  
          of those powers never produces conflicts of interest.  If  
          the Los Angeles District Attorney wants more statutory  
          detail, converting the proposed circumstances to  
          illustrative examples might be sufficient.

          4.   Recipe for unintended consequences  ?  While legal  
          scholars, judges, and public lawyers knew and understood  
          the common law doctrine that banned incompatible offices,  
          less sophisticated elected officials occasionally stumbled  
          on that prohibition without knowing what they were doing.   
          Others may have deliberately violated the ban, hoping not  





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          to get caught.  By writing the rule with its three  
          circumstances into the statute with the 2005 Romero bill,  
          the Legislature removed the excuse of not knowing.  AB 1955  
          may have the unintended consequence of confusing public  
          officials by listing three fairly common situations.   
          Because nearly all local governments have the powers of  
          eminent domain, the power to impose taxes and fees, and the  
          ability to file lawsuits, AB 1955 sets up many  
          controversies about which offices might be incompatible.   
          When the law is that broad, which offices aren't  
          incompatible?

          5.   Count me out  .  Even when a person holds two offices  
          that could be incompatible under the current statute, the  
          ban against holding incompatible offices doesn't apply when  
          state law allows or compels dual office holding.  Several  
          state laws require or allow local officials to serve on  
          other public agencies.  The Cortese-Knox-Hertzberg Act, for  
          example, requires two county supervisors and two city  
          council members (or mayors) to serve as LAFCO  
          commissioners.  About half of the LAFCOs have special  
          district representatives who are also members of districts'  
          governing boards.  The Community Redevelopment Law allows a  
          city council or county board of supervisors to either  
          appoint a redevelopment agency or declare itself to be the  
          agency.  More than 90% of the cities and counties that use  
          redevelopment have declared themselves to be the agencies.   
          By adding three more circumstances to the statute, AB 1955  
          will cause more local governments to seek specific  
          clarifications that dual office holding is not prohibited.   
          The first of those clarifications is in the bill itself ---  
          declaring that city councils and county boards of  
          supervisors that serve as their own redevelopment agencies  
          are not holding incompatible offices.  Legislators should  
          get ready for more requests.

          6.   Technical amendment  .  The Committee should correct the  
          statutory cross-reference to redevelopment agencies.  The  
          reference to Health and Safety Code Section "33220" should  
          be "33200" (page 3, line 11).

                                 Assembly Actions  

          Assembly Local Government Committee:  8-0
          Assembly Floor:                    72-0






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                        Support and Opposition  (6/10/10)

           Support  :  Los Angeles County District Attorney's Office.

           Opposition  :  Association of California Water Agencies,  
          California State Association of Counties, League of  
          California Cities, Eastern Municipal Water District, Friant  
          Water Authority, Kings River Conservation District,  
          Sacramento Area Flood Control Agency, San Gabriel Basin  
          Water Quality Authority, San Luis & Delta-Mendota Water  
          Authority, Three Valleys Municipal Water District, Valley  
          Ag Water Coalition, Water Replenishment District of  
          Southern California.