BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1716 (Garcia) - Political Reform Act:  Postemployment  
          Restrictions
          
          Amended: As Introduced          Policy Vote: E&CA 4-0
          Urgency: No                     Mandate: No
          Hearing Date: June 30, 2014     Consultant: Maureen Ortiz
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary:  AB 1716 makes former local administrative  
          officials subject to the permanent ban on "switching sides" in a  
          governmental proceeding that currently applies to state  
          administrative officials.

          Fiscal Impact: 
          
              Annual costs of approximately $140,000 to the Fair  
              Political Practices Commission (General Fund)

          The FPPC anticipates the need for one Attorney III position for  
          advising, updating manuals, trainings webinars, and regulations.

          Background:  Existing law restricts the post-governmental  
          activities of certain former public officials.  These  
          restrictions are commonly known as a "revolving door ban," and  
          there are two main situations in the Political Reform Act that  
          may apply to former public officials.

          First, certain officials are prohibited, 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.  
          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 those subject to the one-year ban.

          The second type of revolving door restriction permanently  
          prohibits former state administrative officials from being paid  
          to work on proceedings that they had participated in while  
          working for the state.  The ban prohibits appearances and  








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          communications to represent any other person, as well as  
          advising, 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.  AB 1716 makes this permanent ban applicable to local  
          jurisdictions.

          Proposed Law:   Specifically, AB 1716 does the following:

          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 a 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:

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

          --  The proceeding is one in which the former local  
          administrative official participated.

          The official will also be prohibited from 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  








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          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 local official if the court or agency to  
          which the communication is directed makes the following findings  
          in writing:

          --  The former official has outstanding and otherwise  
          unavailable qualifications;

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

          --  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:

          --  At least five years has elapsed since the termination of the  
          former official's employment or term of office; and,

          --  The public interest will not be harmed.

          AB 1716 provides that these restrictions do not apply to any  
          person who left government service before the effective date of  
          this bill.

          "Local administrative official" is defined 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.
                      
          Staff Comments:  Existing law restricts the post-governmental  
          activities of certain former public officials. These  
          restrictions are commonly known as a "revolving door ban."   








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          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 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  
          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" currently does not apply to  
          local officials, though some local jurisdictions have adopted  
          similar rules.