BILL ANALYSIS                                                                                                                                                                                                    �




                           SENATE COMMITTEE ON ELECTIONS 
                            AND CONSTITUTIONAL AMENDMENTS
                             Senator Alex Padilla, Chair


          BILL NO:   AB 1716             HEARING DATE:  6/17/14
          AUTHOR:    GARCIA              ANALYSIS BY:   Darren Chesin
          AMENDED:   AS INTRODUCED 
          FISCAL:    YES
          
                                        SUBJECT

           Political Reform Act of 1974: Postemployment activity  
          restrictions
           
                                     DESCRIPTION  
           
          Existing law  , pursuant to the Political Reform Act (PRA),  
          prohibits former  state  administrative officials from being  
          compensated to work on proceedings that they participated in  
          while working for the state.  This "switching sides" ban  
          prohibits appearances and communications to represent any other  
          person, as well as aiding, advising, counseling, consulting, or  
          assisting in representing any other person, for compensation,  
          before any state administrative agency in a proceeding involving  
          specific parties (such as a lawsuit, a hearing before an  
          administrative law judge, or a state contract) if the official  
          previously participated in the proceeding.

           Existing law  permits a court or agency to exclude any person  
          found to have violated the "switching sides" ban, as detailed  
          above, from any further participation in the proceeding, as  
          specified. 

           This bill  additionally makes former  local  administrative  
          officials subject to the permanent ban on "switching sides" in a  
          governmental proceeding that currently applies to state  
          administrative officials.  Specifically,  this bill  :  

          1)Prohibits a former local administrative official, after the  
            termination of his or her employment or term of office, from  
            doing either of the following for compensation:

             a)   Acting as an agent or attorney for, or otherwise  
               representing, any person other than the former official's  
               agency, before a court, local government agency, state  
               administrative agency, or officer or employee of those  








               courts or agencies, by making an appearance or an oral or  
               written communication with the intent to influence a  
               judicial, quasi-judicial, or other proceeding, if both of  
               the following apply:

               i)     The former local administrative official's agency is  
                 a party or has a direct and substantial interest; and,

               ii)    The proceeding is one in which the former local  
                 administrative official participated; or,

             b)   Aiding, advising, counseling, or assisting in  
               representing any other person, except the local government  
               agency, in any proceeding in which the official would be  
               prohibited from appearing as detailed above.

          2)Provides that the prohibitions outlined above do not apply to  
            the following:

             a)   To prevent a former official from making or providing a  
               statement based on the official's own special knowledge in  
               the area that is the subject of the statement, provided  
               that no compensation is received other than that regularly  
               provided by law or regulation for witnesses;

             b)   To communications made solely for the purpose of  
               furnishing information by a former official if the court or  
               agency to which the communication is directed makes the  
               following findings in writing:

               i)     The former official has outstanding and otherwise  
                 unavailable qualifications;

               ii)    The former official is acting with respect to a  
                 matter that requires such qualifications; and,

               iii)   The public interest is served by the participation  
                 of the former official; or,

             c)   With respect to appearances or communications in a  
               proceeding in which the court or agency has issued a final  
               order, decree, decision, or judgment but has retained  
               jurisdiction if the local government agency that formerly  
               employed the official gives consent by making both of the  
               following determinations:

          AB 1716 (GARCIA)                                                  
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               i)     At least five years has elapsed since the  
                 termination of the former official's employment or term  
                 of office; and,

               ii)    The public interest will not be harmed.

          3)Provides that the restrictions of this bill do not apply to  
            any person who left government service before the effective  
            date of this bill.

          4)Defines "local administrative official," for the purposes of  
            this bill, to mean every member, officer, employee, or  
            consultant of a local government agency who as a part of his  
            or her official responsibilities engages in any judicial,  
            quasi-judicial, or other proceeding in other than a purely  
            clerical, secretarial, or ministerial capacity.
           
                                     BACKGROUND  
          
           "Revolving Door" Restrictions  :  Existing law restricts the  
          post-governmental activities of certain former public officials.  
           These restrictions are commonly known as a "revolving door  
          ban."  There are two main types of revolving door restrictions  
          in the PRA that may apply to former public officials.

          A one-year ban prohibits certain officials, for one year after  
          leaving public service, from representing any other person by  
          appearing before or communicating with, for compensation, their  
          former agency in an attempt to influence agency decisions that  
          involve the making of general rules (such as regulations or  
          legislation), or to influence certain proceedings involving a  
          permit, license, contract, or transaction involving the sale or  
          purchase of property or goods.  Members of the Legislature,  
          members of state boards and commissions with decision-making  
          authority, local elected officials, and individuals who manage  
          public investments are examples of people who are subject to the  
          one-year ban.  (A related, but slightly different, one-year ban  
          applies to former air pollution control district and air quality  
          management district members.)  When originally adopted, this  
          one-year ban applied primarily to former state employees, but  
          subsequent legislation (see "Previous Legislation," below) also  
          made the one-year ban applicable to specified former local  
          officials.

          The second main type of revolving door restriction permanently  
          prohibits former state administrative officials from being paid  
          AB 1716 (GARCIA)                                                  
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          to work on proceedings that they participated in while working  
          for the state.  The ban prohibits appearances and communications  
          to represent any other person, as well as aiding, advising,  
          counseling, consulting or assisting in representing any other  
          person, for compensation, before any state administrative agency  
          in a proceeding involving specific parties (such as a lawsuit, a  
          hearing before an administrative law judge, or a state contract)  
          if the official previously participated in the proceeding.  This  
          permanent ban on "switching sides" does not apply to local  
          officials, though some local jurisdictions have adopted similar  
          rules.  This bill would make that permanent ban applicable to  
          local jurisdictions.  
           
                                       COMMENTS  
          
           1.According to the Author  :  Pursuant to Government Code sections  
            87401 and 87402, State administrative officials are prohibited  
            from providing aid, advice, or consultation in any judicial or  
            quasi-judicial proceedings where the State of California is a  
            party, after they have left state service.

          Essentially, state officials are subject to a lifetime ban from  
            'switching sides' or being compensated for appearances, or  
            helping others in making such appearances for entities that  
            are engaged in adversarial proceedings with the state entity  
            of which they were previously employed - eliminating the  
            possibility of being able to profit from privileged  
            information they may have acquired during their previous  
            employment with the State of California.

          AB 1716 amends existing law to also ban local administrative  
            officials from switching sides where their former agency was a  
            party to the proceeding in which the official was involved. 

           2.Previous Legislation  :  SB 8 (Soto), Ch. 680, Statutes of 2005,  
            prohibits a local elected official from lobbying the local  
            government agency of which that official was a member for a  
            period of one year after leaving office. 







                                     PRIOR ACTION
          AB 1716 (GARCIA)                                                  
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          Assembly Elections and Redistricting Committee:  6-0
          Assembly Appropriations Committee: 15-1
          Assembly Floor:                         73-1
                                           
                                      POSITIONS  

          Sponsor: Author

           Support: None received

           Oppose:  None received


































          AB 1716 (GARCIA)                                                  
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