BILL ANALYSIS �
SB 31
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Date of Hearing: June 19, 2012
ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
Paul Fong, Chair
SB 31 (Correa) - As Amended: January 10, 2012
SENATE VOTE : 38-0
SUBJECT : Postgovernment employment: restrictions.
SUMMARY : Extends the post-government employment prohibitions
of the Political Reform Act of 1974 (PRA) to include officials
who are appointed to a local governing board or commission, as
specified. Specifically, this bill :
1)Extends the one year post-government employment prohibition,
which restricts for a period of one year, a local elected
official, chief administrative officer of a county, city
manager, or general manager or chief administrator of a
special district, that leaves his or her office or employment,
from acting or otherwise representing for compensation any
other person or entity by appearing before, or communicating
with, the local government agency of which the official was a
member for the purpose of influencing administrative or
legislative action, to include all public officials serving as
members of local governing boards or commissions with
decision-making authority, regardless of whether those
officials are elected or appointed.
2)Provides that the one year post-government employment
prohibition does not apply to an individual who is a member of
a local board or commission that is solely advisory.
EXISTING LAW :
1)Prohibits, for a period of one year after an official leaves
his or her office or employment, a local elected official,
chief administrative officer of a county, city manager, or
general manager or chief administrator of a special district
who held a position with a local government agency, from
representing for compensation any other person by appearing
before, or communicating with, that local government agency
(or any committee, subcommittee, member of that local
government agency, or any officer or employee of the local
government agency) if the appearance or communication is made
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for the purpose of influencing administrative or legislative
action or influencing any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit,
license, grant, or contract, or the sale or purchase of goods
or property.
2)Provides that the post-government employment prohibition
detailed above does not apply to any individual who is
appearing or communicating on behalf of another public agency.
3)Defines the following terms for the purposes of the
post-government employment prohibition described above:
a) "Administrative action" means the proposal, drafting,
development, consideration, amendment, enactment, or defeat
by any local government agency of any matter, including any
rule, regulation, or other action in any regulatory
proceeding, whether quasi-legislative or quasi-judicial.
Administrative action does not include any action that is
solely ministerial.
b) "Legislative action" means the drafting, introduction,
modification, enactment, defeat, approval, or veto of any
ordinance, amendment, resolution, report, nomination, or
other matter by the legislative body of a local government
agency or by any committee or subcommittee thereof, or by a
member or employee of the legislative body of the local
government agency acting in his or her official capacity.
4)Permits a local government agency to adopt a similar
post-government employment ordinance or policy that is more
restrictive than the current prohibition stated above.
5)Prohibits, for a period of one year, air pollution control and
air quality management district former board members,
officers, and certain employees from representing any other
person by appearing before or communicating with, their former
district in an attempt to influence any regulatory action.
6)Prohibits any public official from making, participating in
making, or influencing a governmental decision that directly
relates to a prospective employer while negotiating or after
reaching an employment arrangement.
FISCAL EFFECT : According to the Senate Appropriations
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Committee, the Fair Political Practices Commission (FPPC)
administrative costs to General Fund are $108,000 for 2012-13;
$174,000 for 2013-14, and $174,000 for 2014-15. The FPPC
indicates the following costs associated with personal services:
0.1 Personnel Year (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.
COMMENTS :
1)Purpose of the Bill : According to the author:
SB 31 closes a loophole in existing law that allows many
local government officials to lobby their former agencies
immediately after leaving office.
Under existing revolving door laws, only local elected
officials are banned from lobbying their former agencies
for a year after leaving office. However, appointed
members of local governing boards and those who serve by
virtue of holding a separate office are not covered.
This loophole was recently exploited in Orange County where
a former public member of the Orange County Transportation
Authority �OCTA] was immediately hired by a private
financial firm to represent them in discussions with OCTA.
This bill expands the existing revolving door law to
include not only local elected official, but any other
public official serving as a member of a governing board or
commission with decision-making authority.
2)Overview of Post-Government Employment Restrictions : Also
known as "revolving door" prohibitions, post-government
employment restrictions are intended to address situations
whereby former state and local elected officers and other
officials return to represent clients who have business
before, or are seeking to influence policy decisions made by,
their former agencies. Additionally, "revolving door"
policies seek to prevent former officials from taking
advantage of "insider" information to unfairly benefit the
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clients they represent. The PRA currently places several
restrictions on the activities of public officials who are
leaving governmental employment. Existing law currently
restricts former state officials by both the general "one
year" ban and the "permanent" ban. The one year ban, in
general, restricts state officials, for a period of one year
after leaving their office, from being paid to communicate
with their former agency in an attempt to influence certain
actions or proceedings. While there are subtle differences,
the one year restriction also applies to certain local
officials and air pollution control and air quality management
district members, officers, and employees. Additionally,
former state officials are permanently banned from being paid
to appear in a proceeding involving specific parties, such as
a lawsuit, administrative law judge hearing, or a state
contract, in which the official previously participated.
Furthermore, the PRA also restricts the activities of public
officials who are anticipating leaving public service.
Currently, all public officials are prohibited from making,
participating in making, or influencing a governmental
decision that directly relates to a prospective employer while
negotiating or after reaching an employment arrangement.
3)Local Ordinances : As the author mentions, the existing
post-government employment restrictions do not apply to public
officials who are appointed, rather than elected, to local
governing boards or commissions.
However, it should be noted that nothing in current law
prohibits local jurisdictions from adopting stricter revolving
door ordinances which could address this loophole. In fact,
according to various news articles, other local jurisdictions
are working on passing similar local ordinances to close this
loophole. Critics, however, argue that while these local
ordinances may serve as a deterrent, they lack the necessary
means for enforcement.
4)Technical Amendment : The author proposes to make a
nonsubstantive technical amendment to the bill. On page 3, in
line 7, strike out the word "governing." This amendment is
needed as serving on a governing board could never be solely
advisory.
5)Arguments in Support : The American Federation of State,
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County and Municipal Employees, AFL-CIO writes in support:
Although revolving door restrictions exist on local elected
officials and high-level employees, appointed government
officials are not prohibited from lobbying their former
offices or agencies. These officials may unfairly use
insider knowledge to make financial gain or influence
policy. Given the special nature of public service and the
responsibility government officials hold to constituents
and taxpayers, appointed local government officials should
not be excluded from revolving door plans.
6)Previous Legislation : SB 8 (Soto), Chapter 680, Statutes of
2005, prohibits, for a period of one year after leaving office
, a local elected official, as specified, from lobbying the
local government agency of which that official was a member.
7)Political Reform Act of 1974 : California voters passed an
initiative, Proposition 9, in 1974 that created the FPPC and
codified significant restrictions and prohibitions on
candidates, officeholders and lobbyists. That initiative is
commonly known as the PRA. Amendments to the PRA that are not
submitted to the voters, such as those contained in this bill,
must further the purposes of the initiative and require a
two-thirds vote of both houses of the Legislature.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO
California Special Districts Association
Fair Political Practices Commission (Support if funded)
Regional Council of Rural Counties
Opposition
None on file.
Analysis Prepared by : Nichole Becker / E. & R. / (916)
319-2094
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