BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  AB 1955                     HEARING:  6/30/10
          AUTHOR:  De La Torre                  FISCAL:  No
          VERSION:  6/23/10                     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.

          Regarding the first circumstance, state law says that a  
          member of a multimember body holds an office that may  
          audit, overrule, remove members of, dismiss employees of,  
          or supervise another office when the multimember body has  
          any of these powers over the other office or over a  
          multimember body that includes that other office.

          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.




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                 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.

          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 two examples of situations in which  
          public offices are incompatible:
                 When an office has eminent domain power over  
               property that is under the other office's  
               jurisdiction.
                 When an office has the power to set a fee or a rate  
               or impose a tax or a levy that may directly or  
               indirectly affect the other office.

          AB 1955 deletes the current declaration that a member of a  
          multimember body holds an office that may audit, overrule,  
          remove members of, dismiss employees of, or supervise  
          another office when the multimember body has any of these  
          powers over the other office or over a multimember body  
          that includes that other office.  Instead, the bill says  
          that a member of a multimember body holds an office that  
          may exercise powers over another office when the  
          multimember body has powers over the other office or over a  
          multimember body that includes the other office.


                                     Comments  





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          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 listing two examples of  
          situations in which public offices are incompatible.  The  
          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 a separate  
          declaration in the 2005 Romero bill.  The examples created  
          by AB 1955 were not part of the Legislature's 2005  
          codification of the common law rule.  The Committee may  
          wish to consider how AB 1955 can add examples, 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.   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  
          to get caught.  By writing the rule into the statute, the  
          Legislature removed the excuse of not knowing.  But it also  
          left in place the need to conduct an agency-by-agency  
          analysis.  AB 1955 may have the unintended consequence of  
          tripping up public officials by listing two fairly common  





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          situations as automatic examples of incompatible offices.   
          Because many cities, water districts, and sewer agencies  
          set utility rates and charge for services, their officers  
          probably can't hold many other public offices under AB  
          1955.  One agency's monthly water, sewer, or electricity  
          bills "may directly or indirectly affect" another local  
          government's operations.  The Committee may wish to  
          consider whether a board member of a municipal utility  
          district that sells retail electricity could ever be on a  
          mosquito abatement district's governing board.  Instead of  
          the agency-by-agency analysis used under current law, AB  
          1955 may go too far.  When the statute is that broad, which  
          offices aren't incompatible?

          4.   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 two examples to the statute, AB 1955 will cause  
          more local governments to seek specific clarifications that  
          dual office holding is not prohibited.  Legislators should  
          get ready for more requests.


                                 Assembly Actions  

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

                         Support and Opposition  (6/24/10)

           Support  :  Los Angeles County District Attorney's Office.

           Opposition  :  Association of California Water Agencies,  
          California State Association of Counties, California  





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          Transit Association, League of California Cities, Alameda  
          County Congestion Management Agency, Eastern Municipal  
          Water District, Friant Water Authority, Kings River  
          Conservation District, Metro Gold Line Foothill Extension,  
          Riverside County Transportation Commission, Sacramento Area  
          Flood Control Agency, San Bernardino Associated  
          Governments, San Gabriel Basin Water Quality Authority, San  
          Luis & Delta-Mendota Water Authority, Santa Cruz  
          Metropolitan Transit District, South Coast Air Quality  
          Management District, Southern California Association of  
          Governments, Stockton East Water District, Three Valleys  
          Municipal Water District, Valley Ag Water Coalition, Water  
          Replenishment District of Southern California, Merle J.  
          Aleshire, Ph.D.