BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1431
                                                                  Page  1

          Date of Hearing:   April 1, 2014

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                   AB 1431 (Gonzalez) - As Amended:  March 19, 2014
           
          SUBJECT  :  School district and community college administrators:  
          conflict of interest.

           SUMMARY  :   Prohibits a school or community college district  
          administrator from soliciting campaign contributions for  
          district board members and candidates for the district board,  
          except as specified. Specifically,  this bill  :  

          1)Prohibits an administrator of a school district or of a  
            community college district from knowingly soliciting,  
            accepting, or receiving a political contribution from any  
            person for the campaign of an elected official of the district  
            employing the administrator, or for a candidate for that  
            office, unless the person making the contribution is a member  
            of the same school labor organization as the administrator.

          2)Requires the Fair Political Practices Commission (FPPC) to  
            enforce the provisions of this bill.

           EXISTING LAW :

          1)Creates the FPPC, and makes it responsible for the impartial,  
            effective administration and implementation of the Political  
            Reform Act (PRA).

          2)Prohibits a member of the FPPC, during his or her tenure, from  
            participating in or contributing to an election campaign, or  
            from seeking election to any other public office during his or  
            her term of appointment.

          3)Prohibits school district or community college district funds,  
            services, supplies, or equipment from being used for the  
            purpose of urging the support or defeat of any candidate,  
            including, but not limited to, any candidate for election to  
            the governing board of the district.

          4)Prohibits a person who holds, or who is seeking election or  
            appointment to, the governing board of a school district or  
            community college district from using, or promising or  







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            threatening to use, the power of office to positively or  
            adversely affect any person's compensation or position within  
            the district based on the vote or political activities of that  
            person.

          5)Prohibits restrictions from being placed on the political  
            activities of officers or employees of a school district or  
            community college district, except as otherwise provided in  
            specified provisions of state law or as necessary to meet  
            requirements of federal law.

          6)Prohibits an officer or employee of a local agency, other than  
            a school district, from soliciting a political contribution  
            from an officer or employee of that agency, except as  
            specified.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author:

               Assembly Bill 1431 seeks to prohibit administrators at  
               school and community college districts from soliciting  
               funds for the campaigns of candidates - including  
               incumbents - for the board elections to govern the  
               districts where they are employed. Most recently,  
               administrators' practice of soliciting campaign funds  
               for board members was held as the common thread in 3  
               major government corruption cases in San Diego County.  
               This bill will reduce the real and perceived conflicts  
               of interest that is created by this dynamic and has  
               contributed to these major corruption scandals in  
               California's school districts and community college  
               districts.

           2)Hatch Act  :  Enacted in response to allegations that federal  
            government employees were using their positions to assist  
            candidates for federal office in the late 1930s, the federal  
            Hatch Act (5 U.S.C. �� 7321-7326) generally restricts certain  
            political activities of most civilian federal government  
            employees.  The nature of the political activities that are  
            restricted under the Hatch Act vary, depending on the position  
            held by an employee.  Employees in intelligence and  
            enforcement agencies, for instance, typically are subject to  







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            broader restrictions on political activities than other public  
            employees.  Individuals who violate the Hatch Act are subject  
            to "removal, reduction in grade, debarment from Federal  
            employment for a period not to exceed 5 years, suspension,  
            reprimand, or an assessment of a civil penalty not to exceed  
            $1,000." 

          One provision of the Hatch Act prohibits federal employees from  
            soliciting, collecting, or receiving political contributions,  
            except from other members of the same federal labor  
            organization under certain conditions.  The provisions of this  
            bill are modeled after that portion of the Hatch Act.

          It should be noted, however, that the provisions of this bill  
            that allow school administrators to solicit contributions from  
            members of the same school labor organization as the  
            administrator are more lenient than the related provision in  
            the Hatch Act.  While the Hatch Act does include an exception  
            to permit federal employees to solicit contributions from  
            members of the same federal labor organization, that exception  
            applies only if the person being solicited is not a  
            subordinate employee, and only if the solicitation is for a  
            contribution to the labor organization's political action  
            committee.  This bill does not impose similar restrictions on  
            contributions that are solicited by a school or community  
            college district administrator from a member of the same labor  
            organization as the administrator.

           3)Constitutional Issues  :  It could be argued that this bill  
            violates the United States and California Constitutions'  
            guarantees to free speech and freedom of association.  While  
            the right to freedom of speech is not absolute, when a law  
            burdens core political speech, the restrictions on speech  
            generally must be "narrowly tailored to serve an overriding  
            state interest,"  McIntyre v. Ohio Elections Commission  (1995),  
            514 US 334.

          As noted above, this bill is modeled after a provision of the  
            Hatch Act which prohibits certain federal employees from  
            soliciting, collecting, or receiving political contributions.   
            The United States Supreme Court has upheld prior versions of  
            the Hatch Act that restricted the political activities of  
            federal employees even more broadly than the current version  
            of the Hatch Act does.  In  Civil Service Commission v. Letter  
            Carriers  (1973), 413 U.S. 548, the Supreme Court upheld a  







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            provision of the Hatch Act that prohibited federal employees  
            from taking "an active part in political management or in  
            political campaigns." In upholding that provision, the court  
            found that "plainly identifiable acts of political management  
            and political campaigning on the part of federal employees may  
            constitutionally be prohibited" by Congress in recognition of  
            the governmental interests that are advanced by that policy.   
            Among other interests, the court noted that placing  
            restrictions on the political activities of federal employees  
            helps the government to operate effectively and fairly, by  
            protecting against enforcement and execution of the law in a  
            manner that favors specific political parties or groups;  
            ensures that elections "play their proper part in  
            representative government," by preventing the government  
            workforce from being used as a "powerful, invincible, and  
            perhaps corrupt political machine"; and protects government  
            employees from improper influences by making sure that  
            employees are "free from pressure and from express or tacit  
            invitation to vote in a certain way or perform political  
            chores in order to curry favor with their superiors rather  
            than to act out their own beliefs."

          The restrictions placed on school and community college  
            administrators under this bill are narrower than the Hatch Act  
            restrictions that were upheld by the Supreme Court in  Civil  
            Service Commission v. Letter Carriers  . This bill prohibits  
            school and community college administrators from soliciting  
            campaign contributions only for members of and candidates for  
            the governing board of the district by which the administrator  
            is employed, but does not restrict the ability of school and  
            community college administrators to solicit contributions for  
            candidates for other offices.  
           
           4)Definition of Administrator  :  This bill proposes to restrict  
            the political activities of school district and community  
            college district administrators, but it does not define the  
            term "administrator" for the purposes of this bill.   
            Furthermore, there does not appear to be a general definition  
            in the Education Code of the term "administrator" in the  
            context of school districts or community college districts.   
            Without a definition of that term, it is unclear exactly which  
            school officials would be affected by this bill.  In light of  
            that fact, the committee may wish to consider whether the term  
            "administrator" should be defined for the purposes of this  
            bill.







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           5)No Penalty Specified & Suggested Amendments  :  While this bill  
            provides for the FPPC to enforce its provisions, the new  
            restrictions created by this bill are not a part of the PRA.   
            As a result, any violations of the restrictions imposed by  
            this bill would not be subject to the penalties available for  
            violations of the PRA.  Furthermore, this bill does not  
            specify any penalty or remedy for violations of the bill.  In  
            light of that fact, the scope of the FPPC's enforcement  
            authority is unclear, and if the FPPC determined that a  
            violation of the provisions of this bill had occurred, it is  
            unclear whether the FPPC would be able to impose any penalty  
            whatsoever against the violator.

          If it is the author's intent that violations of the provisions  
            of this bill would be subject to the penalties that currently  
            apply for violations of the PRA, the committee and the author  
            may wish to consider amending this bill to move the  
            restrictions on fundraising activities out of the Education  
            Code, and place those restrictions into the PRA instead.  With  
            that amendment, a violation of the provisions of this bill  
            would be subject to potential civil or administrative fines of  
            up to $5,000 per violation or, in the case of knowing or  
            willful violations of the provisions of the bill, to potential  
            misdemeanor penalties and fines of up to $10,000 per  
            violation.  
           
           6)School Administrator Candidates & Suggested Amendments  :   
            Existing law prohibits an employee of a school district from  
            being sworn into office as a member of that school district's  
            governing board unless that person first resigns as an  
            employee.  Similarly, an employee of a community college  
            district must resign his or her position as an employee prior  
            to being sworn into office as a member of the community  
            college district's governing board.  Nothing in state law,  
            however, prohibits a school district administrator or a  
            community college administrator from being a candidate for the  
            governing board of the district by which they are employed.

          By prohibiting school and community college district  
            administrators from soliciting campaign contributions for  
            candidates for the district board, this bill appears to  
            prohibit an administrator who is a candidate for the governing  
            board of the district in which the administrator is employed  
            from soliciting any contributions on his or her own behalf.   







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            The author's stated purpose for this bill-to reduce the  
            potential for conflicts of interest that may exist when an  
            administrator solicits contributions on behalf of a candidate  
            or board member that will oversee the work of the  
            administrator-do not appear to be served by restricting an  
            administrator from soliciting campaign funds for his or her  
            own candidacy.  In light of that fact, the author and the  
            committee may wish to consider an amendment to specify that  
            the provisions of this bill shall not prohibit a school or  
            community college administrator from soliciting campaign  
            contributions for his or her own candidacy.  
           
           7)Arguments in Support  :  In support of this bill, the County of  
            San Diego writes:

               AB 1431?would prohibit school district and community  
               college district administrators from soliciting funds  
               for campaign or legal defense funds for an elected  
               official of the district employing the administrator,  
               or any candidate for an elected office of the  
               district.

               This longstanding practice has become all too common  
               and has resulted in scandals and criminal charges for  
               some school districts within the San Diego County  
               region.  It allows administrators inappropriate  
               influence over their own job security by assisting in  
               campaign fundraising for their board members and  
               allows current board members to pressure  
               administrators into campaign fundraising.  We want to  
               ensure that elected officials are devoting their time  
               and public resources to the public good, and we  
               believe AB 1431 is a good step in that direction.

           8)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 must further the purposes of the  
            initiative and require a two-thirds vote of both houses of the  
            Legislature.  Although this bill does not directly amend the  
            PRA, it does so indirectly because it makes the FPPC  
            responsible for enforcing the provisions of this bill.  As a  
            result, this bill requires a two-thirds vote for passage on  







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            the Assembly and Senate Floors.

           9)Double-Referral  :  This bill has been double-referred to the  
            Assembly Judiciary Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County of San Diego

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094