BILL ANALYSIS                                                                                                                                                                                                    �




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


          AB 1728 (Garcia) - Political Reform Act
          
          Amended: April 8, 2014          Policy Vote: E&CA 5-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary:  AB 1728 makes officers who are elected to local  
          water boards subject to the Levine Act under the Political  
          Reform Act. 

          Fiscal Impact: 

              Annual costs of $115,331 for administrative expenses to the  
              FPPC (General Fund)

          The FPPC indicates the need for  of one Attorney I position to  
          handle an increase in advice requests resulting in annual costs  
          of $115,331.

          Background:  The Levine Act, a portion of the Political Reform  
          Act, provides for all of the following:

          1)  Prohibits any officer of an agency from accepting,  
          soliciting or directing a 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.

          2)  Requires any officer of an agency, as defined, who received  
          a 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 in the 12 months before the  
          proceeding, to disclose the contribution on the record of the  
          proceeding.  That officer is further prohibited from  
          participating in making, or attempting to influence the decision  
          in the proceeding, unless the officer returns the contribution  








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          within 30 days of knowing of the contribution and the  
          proceeding. 

          The Levine Act currently does not apply to local governmental  
          bodies whose members are elected directly by the voters, but  
          rather applies to water districts that are governed by appointed  
          boards of directors.

          Proposed Law:  AB 1728 makes all officials who are elected to  
          local water boards formed pursuant to the Water Code subject to  
          the Levine Act's existing provisions limiting contributions to  
          officials from entities with business before the agency  
          involving a license, permit, or other entitlement for use -  
          excluding contracts that are competitively bid.

          Staff Comments:  The Levine Act, named after its author  
          Assemblymember Mel Levine, restricts campaign contributions made  
          to officers of most state and local agencies by parties to a  
          proceeding pending before those agencies.  Enacted in 1982, the  
          Levine Act was a response to reports that members of a state  
          agency sought to raise money from individuals and entities that  
          had permit requests pending before the agency.

          The Levine 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 license, permits, or  
          other entitlements for use. 

          There are over 700 different water districts of various types in  
          California.  In most cases, the governing boards of these water  
          districts are elected, and therefore are not subject to the  
          provisions of the Levine Act.  Only the few that are governed by  
          appointed boards of directors are currently subject to the  
          Levine Act.  AB 1728 will make all districts that are formed  
          pursuant to the Water Code subject to the Levine Act, regardless  
          of whether the district is governed by an elected board or an  
          appointed board.  Similar prohibitions already exist for  
          appointed members of boards or commissions who are running as  
          candidates for elective office, and members of the State Board  
          of Equalization. 











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