BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 1728
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        ASSEMBLY THIRD READING
        AB 1728 (Garcia)
        As Amended  April 8, 2014
        2/3 vote 

         ELECTIONS           5-0         LOCAL GOVERNMENT    8-1         
         
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        |Ayes:|Fong, Mullin, Hall,       |Ayes:|Achadjian, Levine, Alejo, |
        |     |Perea, Rodriguez          |     |Bradford, Gordon, Mullin, |
        |     |                          |     |Rendon, Waldron           |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |Nays:|Wagner                    |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         
        APPROPRIATIONS      12-4                                        
         
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        |Ayes:|Gatto, Bocanegra,         |     |                          |
        |     |Bradford,                 |     |                          |
        |     |Ian Calderon, Campos,     |     |                          |
        |     |Eggman, Gomez, Holden,    |     |                          |
        |     |Pan, Quirk,               |     |                          |
        |     |Ridley-Thomas, Weber      |     |                          |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Bigelow, Donnelly, Jones, |     |                          |
        |     |Wagner                    |     |                          |
        |     |                          |     |                          |
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         SUMMARY  :  Makes all officials who are elected to local water boards  
        subject to existing provisions of state law limiting contributions  
        to officials from entities with business before the agency involving  
        a license, permit, or other entitlement for use.  Specifically,  this  
        bill  :  

        1)Provides that local government agencies that are formed pursuant  
          to the Water Code are subject to the following provisions of the  
          Levine Act of 1982 (Act), even if the members of the agency are  
          directly elected by the voters:

           a)   A prohibition against accepting, soliciting, or directing a  








                                                                AB 1728
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             contribution of more than $250 from a party or participant with  
             a matter pending before the agency involving a license, permit,  
             or other entitlement for use during the time the matter is  
             pending before the agency and for three months following the  
             date a final decision is rendered in the matter.

           b)   A requirement to disclose on the record of a proceeding the  
             receipt of any contribution of more than $250 from a party to  
             or participant in the proceeding in the 12 previous months if  
             the proceeding involves a license, permit, or other entitlement  
             for use.

           c)   A prohibition against making, participating in making, or  
             attempting to influence the decision in any proceeding  
             involving a license, permit, or other entitlement for use if  
             the officer received a contribution of more than $250 from a  
             party or participant in the proceeding in the 12 months before  
             the proceeding and the officer did not return that contribution  
             within 30 days of knowing, or the time the officer should have  
             known, of the contribution and the proceeding.

        2)Provides that for the purposes of proceedings before a local  
          government agency formed pursuant to the Water Code, the term  
          "license, permit, or other entitlement for use" includes all  
          contracts except those that are competitively bid.

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee,  
        ongoing General Fund costs of about $100,000 to the Fair Political  
        Practices Commission (FPPC) for attorney time to respond to  
        additional requests from water board members seeking advice  
        regarding the bill's restriction on campaign contributions and  
        matters that come before the boards.

         COMMENTS  :  According to the author, "AB 1728 requires members of  
        local water boards excuse themselves from decisions when  
        contributors are involved.  AB 1728 includes officials of local  
        government agencies formed pursuant to the provisions of the Water  
        Code and applies to proceedings to award licenses or permits for  
        use."

        The Act, named after its author Assembly Member Mel Levine,  
        restricts campaign contributions made to officers of state and local  
        agencies by parties to a proceeding pending before those agencies.   
        Enacted in 1982, the Act was a response to reports that members of a  








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        state agency sought to raise money from individuals and entities  
        that had permit requests pending before the agency.  The Act is  
        unique among the provisions of the Political Reform Act (PRA) in  
        that it is the only area in which a contribution can be the basis  
        for a disqualifying conflict of interest. 

        The Act is narrowly drafted to apply only to decisions made by  
        agencies with membership that is not directly elected by voters, and  
        only to proceedings involving licenses, permits, or other  
        entitlements for use.  Proceedings of a more general nature and with  
        broader applicability are not covered by the Act.

        The Act generally does not apply to the judicial branch, local  
        governmental bodies whose members are elected directly by the  
        voters, members of the Legislature, or constitutional officers.   
        However, when an officer who is otherwise exempted serves as a  
        voting member of an agency that is subject to the Act, then the  
        contribution restrictions of the Act do apply to that officer.  For  
        example, someone elected to a county board of supervisors is not  
        subject to the Act simply for sitting on the board of supervisors;  
        but, if that official also sits on a regional transit agency, which  
        is subject to the Act, then the officer would be required to comply  
        with the contribution restrictions that apply to all other members  
        of the regional transit agency.  Because the Act does not apply to  
        local governmental bodies whose members are elected directly by the  
        voters, the Act applies to some special districts, but not others.  

        There are more than 700 different water districts of various types  
        in California.  In most cases, the governing boards of these water  
        districts are elected, and as a result are not subject to the  
        provisions of the Act.  There are at least some water districts,  
        however, that are governed by appointed boards of directors, or by  
        boards of directors that are a combination of elected and appointed  
        members.  Those districts are subject to the Act under existing law.  
         This bill makes all districts that are formed pursuant to the Water  
        Code subject to the Act, regardless of whether the district is  
        governed by an elected board or an appointed board.

        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  








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        two-thirds vote of both houses of the Legislature.

        Please see the policy committee analysis for a full discussion of  
        this bill.
         
        Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094FN:  
        0003342