BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  AB 2672                    HEARING:  6/16/10
          AUTHOR:  Cook                        FISCAL:  No
          VERSION:  6/2/10                     CONSULTANT:   
          Weinberger
          
                 PUBLIC OFFICE VACANCIES AND DISQUALIFICATIONS

                           Background and Existing Law  

          A public office becomes vacant when an incumbent dies,  
          resigns, is removed from office, ceases to be an inhabitant  
          of the state, or is convicted of a felony, any offense  
          involving a violation of his or her duties, or other  
          specified crimes.  When an officer is removed, declared  
          insane, or convicted of a specified felony offense, or when  
          his election or appointment is declared void, the body  
          which conducted the proceedings must notify the officer who  
          can fill the vacancy.

          To protect the public's interests, federal agencies can  
          exclude businesses or individuals from receiving federal  
          contracts, grants, loans, subsidies, donations, or other  
          forms of federal assistance.  A federal agency may exclude  
          a business or individual for reasons such as a conviction  
          of, or indictment for, a criminal or civil offense, or a  
          serious failure to perform to the terms of a contract.   
          Federal agencies must report all excluded parties to the  
          Excluded Parties List System (EPLS), a Web-based system  
          maintained by the federal General Services Administration  
          (GSA).  Before awarding funds, contracting officers and  
          other agency officials must check EPLS to ensure that a  
          prospective vendor is not an excluded party.

          Some local agencies' board members are appointed by other  
          agencies or are filled automatically because an individual  
          holds another office.  Some local officials worry that  
          these agencies could not remove a governing board member  
          who is listed in the federal EPLS, which could preclude the  
          agencies' receiving federal funds.  They want the  
          Legislature to automatically vacate the seat of any ex  
          officio or appointed local agency board member listed in  
          the EPLS when an agency is involved in federal  
          transactions.





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                                   Proposed Law  

          Assembly Bill 2672 provides that a public office becomes  
          vacant when an incumbent is listed in the Excluded Parties  
          List System and all of the following apply:
                 The office is one that the incumbent holds ex  
               officio, by virtue of holding another office, or as an  
               appointee.
                 The office is on the governing board of a local  
               agency that is, or may reasonably be expected to be, a  
               participant or principal in a covered transaction,  
               pursuant to federal law.
                 A federal agency head or designee has not granted  
               the incumbent an exception, in writing, permitting the  
               incumbent to participate in a particular covered  
               transaction in which the local agency is, or may  
               reasonably be expected to be, a participant or  
               principal.

          AB 2672 defines "Excluded Parties List System" as the list  
          maintained and disseminated by the General Services  
          Administration containing names of, and other information  
          about, persons who are debarred, suspended, disqualified,  
          or otherwise excluded from participating in a covered  
          transaction, pursuant to federal law.

          The bill defines "local agency" as including a county,  
          city, whether general law or chartered, city and county,  
          town, school district, municipal corporation, district,  
          political subdivision, or any board, commission or agency  
          thereof, or other local public agency.

          AB 2672 defines "federal law" as including federal  
          regulations adopted pursuant to Section 2455 of Public Law  
          103-355 (108 Stat. 3327), Executive Order No. 11738,  
          Executive Order No. 12549, and Executive Order No. 12689.

          AB 2672 specifies that its provisions do not apply to an  
          elective office.

          When an officer vacates an office pursuant to the  
          provisions of AB 1672, the bill requires the local agency  
          on which a vacancy occurs to notify the officer or body  
          empowered to fill the vacancy.






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                                     Comments  

          1.   Protecting federal funding  .  After two San Jacinto city  
          council members who also served as members of the Riverside  
          County Transportation Commission (RCTC) were indicted in  
          November 2009, the Federal Highway Administration (FHA)  
          suspended them from participating in federally-funded  
          programs and projects and posted their names to the  
          Excluded Parties List System.  Because the RCTC is the  
          Metropolitan Planning Organization that selects  
          federally-funded highway transportation projects for the  
          region, the FHA notified the RCTC that the suspended  
          council members needed to be excluded from participating in  
          all federally funded programs and projects.  However, the  
          RCTC had no authority to remove the two council members,  
          who were appointed by the City of San Jacinto.  Although  
          the City agreed to replace its RCTC appointees, the RCTC's  
          federally funded programs could have been jeopardized if  
          the council members had not been replaced.  AB 2672  
          protects federal funding for local agencies by  
          automatically vacating ex officio or appointed offices when  
          an incumbent's exclusion from participating in federal  
          transactions jeopardizes a local agency's participation in  
          federal transactions.

          2.   Who decides  ?  AB 2672 could force an official to vacate  
          a seat to which he or she is appointed by an elected local  
          body, based on a decision made by an unelected federal  
          agency official.  The Committee may wish to consider  
          whether the decision to remove an individual who is  
          appointed to a local agency's board is best left to the  
          appointing authority.


                                 Assembly Actions  

          Assembly Local Government Committee:   9-0
          Assembly Floor:                    75-0
           

                        Support and Opposition  (6/10/10)

           Support  :  Unknown.

           Opposition  :  Unknown.   





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