BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2672
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2672 (Cook)
          As Amended  June 2, 2010
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(May 6, 2010)   |SENATE: |28-2 |(August 11,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  Requires an appointed individual who has been  
          debarred, suspended, disqualified, or otherwise excluded from  
          participating in federal "covered transactions" pursuant to  
          federal law to vacate that office.  

           The Senate amendments  recast the Assembly version of this bill  
          to do the following:  

          1)Provide that a public office becomes vacant when an incumbent  
            is listed in the Excluded Parties List System and all of the  
            following apply:

             a)   The office is one that the incumbent holds ex officio,  
               by virtue of holding another office, or as an appointee;

             b)   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; and,

             c)   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.

          2)Define "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.









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          3)Define "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.

          4)Define "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.

          5)Specify that the provisions of this measure do not apply to an  
            elective office.

          6)Specify that when an officer vacates an office pursuant to the  
            provisions of this bill, the local agency on which a vacancy  
            occurs must notify the officer or body empowered to fill the  
            vacancy.


           EXISTING LAW  :
           
           1)Establishes under what circumstances a public office becomes  
            vacant.

          2)Requires, when an officer is removed, declared insane, or  
            convicted of a felony or offense involving a violation of his  
            or her official duty, or when his or her election or  
            appointment is declared void, the body or person before whom  
            the proceedings are had to give notice to the officer  
            empowered to fill the vacancy.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Required an appointed individual who has been debarred,  
            suspended, disqualified, or otherwise excluded from  
            participating in federal "covered transactions" pursuant to  
            federal law to vacate that office.

          2)Defined "appointed individual" to mean an individual appointed  
            to an agency, board, commission, committee, or any other  
            governing body by a legislative body of a city or county.

          3)Excluded from the automatic vacation of office for appointed  
            individuals when either of the following occurs:








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             a)   A federal agency grants an appointed individual an  
               exception in writing to participate 
             in a particular covered transaction, but only to the extent  
               the exception makes the individual eligible to participate  
               in federal covered transactions; or,

             b)   An appointed individual is removed from the federal  
               Excluded Parties List System.

          4)Required, when an appointed individual vacates office pursuant  
            to being debarred, suspended, disqualified, or otherwise  
            excluded from participating in federal covered transactions,  
            the body or person before whom the proceedings are had to give  
            notice thereof to the officer or body empowered to fill the  
            vacancy.

           FISCAL EFFECT  :  None

           COMMENTS  :  The Riverside County Transportation Commission (RCTC)  
          has 32 appointed commissioners, ranging from county supervisors  
          to city council members.  Every city in Riverside County has an  
          appointee along with the five county supervisors of Riverside  
          County.  The Governor appoints one non-voting individual, who is  
          the director of the local Department of Transportation district  
          office.

          In January 2010, the Federal Highway Administration suspended  
          four members of the San Jacinto City Council from participating  
          in federally funded transportation programs and projects because  
          these four council members had been indicted in November 2009 on  
          155 counts, including 56 felonies and 99 misdemeanors.  The four  
          council members pleaded not guilty.  Two of the council members  
          also served on RCTC as commissioner and alternate commissioner.   
          In these capacities they helped select federally funded highway  
          transportation projects for the county.  As such, they  
          participated in federal "covered transactions" and were subject  
          to suspension when adequate evidence exists to suspect  
          misconduct indicating a lack of integrity or honesty affecting  
          their responsibility.  A "covered transaction" is one that  
          requires the consent of a Department of Transportation official  
          or, if no such consent exists, one that equals or exceeds  
          $25,000.

          The San Jacinto City Council removed the two council members  








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          from RCTC and replaced them with the sole city council member to  
          not be indicted.  Because RCTC is an appointed commission, it  
          does not have the ability to remove commissioners itself.  The  
          two council members remain on the San Jacinto city council  
          because, as provided for under existing law, they will  
          automatically be removed from their directly elected offices  
          only if they have been convicted of felony charges or any  
          offense involving official duties.

          According to the author, this bill will provide appointed boards  
          and commissions with the power to take affirmative steps to  
          protect the board's or commission's eligibility to receive  
          federal funding in case one of its appointed members finds  
          himself or herself declared disbarred, suspended, excluded, or  
          declared ineligible by a federal agency.

          Support arguments:  Supporters say this bill is a good  
          government bill that ensures agencies, boards, commissions, and  
          committees that solely have appointed members will not have  
          their federal funding jeopardized.

          Opposition arguments:  Opposition might argue the appointing  
          entity should have final say of whether or not its  
          representative on the agency, board, commission, or committee is  
          fit to continue to serve.

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958 

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