BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 31|
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                                 THIRD READING


          Bill No:  SB 31
          Author:   Correa (D)
          Amended:  1/10/12
          Vote:     27

           
           SENATE ELEC. & CONST. AMENDMENTS COMMITTEE  :  5-0, 1/10/12
          AYES:  Correa, La Malfa, De Le�n, Gaines, Lieu

           SENATE APPROPRIATIONS COMMITTEE  :  8-0, 1/19/12
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Steinberg
          NO VOTE RECORDED:  Runner


           SUBJECT  :    Post-government employment:  restrictions

           SOURCE  :     Author


           DIGEST  :    This bill extends the revolving door 
          prohibitions of the Political Reform Act to include 
          officials who are appointed to local governing boards or 
          commission, as specified.

           ANALYSIS  :    Existing law prohibits, for a period of one 
          year after the official leaves his or her position, local 
          elected officials, chief administrative officers of a 
          county, city managers, general managers or chief 
          administrators of a special district, from representing for 
          compensation any other person by appearing before, or 
          communicating with, that local government agency if the 
          appearance or communication is made for the purpose of 
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          influencing administrative or legislative amendment, 
          awarding or revocation of a permit, license, grant, or 
          contract of the sale or purchase of goods or property.

          However, this existing prohibition does not apply to any 
          individual who is appearing or communicating on behalf of 
          another public agency, nor does it apply to appointed 
          officials or members of local governing boards who served 
          in those positions by virtue of holding a separate elected 
          office.

          This bill applies the one-year prohibition to any local 
          public official serving as a member of a governing board or 
          commission with decision-making authority.  The Fair 
          Political Practices commission (FPPC) estimates that there 
          could potentially be thousands of local governing boards 
          and commissions including school boards, and multi-county 
          agencies.  The prohibition does not apply to an individual 
          who is a member of a local governing board or commission 
          that is solely advisory.

          The Political Reform Act places several restrictions on the 
          activities of public officials who are leaving governmental 
          employment including "one-year" bans which generally 
          restrict the post-employment activities of former state 
          officials, air pollution control/air quality management 
          district members, officers and employers, and local 
          officials.  Some individuals are governed by "permanent" 
          bans such as prohibiting former state officials from 
          permanently being paid to appear in a proceeding involving 
          specific parties (e.g., a lawsuit, administrative law judge 
          hearing, or a state contract) in which the official 
          previously participated.

          The Political Reform Act also prohibits all public 
          officials from making, participating in making, or 
          influencing a governmental decision that directly relates 
          to a prospective employer.

           Comments
           
          This bill corrects an omission in existing law that allows 
          certain appointed local government officials to lobby their 
          former agencies immediately after leaving office.   Under 

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          existing law, local elected officials and specified local 
          employees are banned from representing individuals and 
          private entities, for compensation before former agencies 
          for at least one year after leaving office.

          This situation recently occurred in Orange County where a 
          former public member of the Orange County Transportation 
          Authority, who had abruptly resigned from the Authority, 
          was hired by a private firm to negotiate significant 
          financial investments with the Authority.  This bill 
          reduces the potential for such abuse and helps restore the 
          trust of taxpayers and constituents by closing this 
          loophole.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

                          Fiscal Impact (in thousands)

           Major Provisions                2012-13     2013-14    
           2014-15   Fund  

          FPPC admin costs    $108      $174      $174      General

          The FPPC indicates the following costs associated with 
          personal services:  0.1 PY for a Senior Commission Counsel 
          in the Legal Division, 1 PY for a Political Reform 
          Consultant in the Technical Assistance Division, and 0.5 PY 
          for each of an Enforcement Counsel and Special Investigator 
          in the Enforcement Division.  Additionally, the FPPC will 
          incur one-time costs of $8,200 and ongoing 
          communication/training expenses of approximately $4,600 
          annually.

           SUPPORT  :   (Verified  1/23/12)

          American Federation of State, County and Municipal 
          Employees


          DLW:do  1/23/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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