BILL ANALYSIS �
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THIRD READING
Bill No: AB 1728
Author: Garcia (D)
Amended: 4/8/14 in Assembly
Vote: 27
SENATE ELECTIONS & CONST. AMEND. COMM. : 5-0, 6/24/14
AYES: Padilla, Anderson, Hancock, Jackson, Pavley
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 56-16, 5/15/14 - See last page for vote
SUBJECT : Political Reform Act of 1974
SOURCE : Author
DIGEST : This bill 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.
ANALYSIS : Existing law, pursuant to the Levine Act of 1982
(Levine Act), a portion of the Political Reform Act (PRA),
provides for all of the following:
1.Prohibits any officer of an agency, as defined, from
accepting, soliciting or directing a contribution of more than
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$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.
3.Prohibits 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 from making, participating in making, or
attempting to influence the decision in the proceeding.
Allows an officer to participate in the proceeding if the
officer returns the contribution within 30 days of knowing, or
the time the officer should have known, of the contribution
and the proceeding.
4.Defines "license, permit, or other entitlement for use" as all
business, professional, trade and land use licenses and
permits and all other entitlements for use, including all
entitlements for land use, all contracts (other than
competitively bid, labor, or personal employment contracts),
and all franchises.
This bill:
1.Provides that local government agencies that are formed
pursuant to the Water Code (WAT) are subject to the following
provisions of the Levine Act, even if the members of the
agency are directly elected by the voters:
A. A prohibition against 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
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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 WAT, the term
"license, permit, or other entitlement for use" includes all
contracts except those that are competitively bid.
Background
The Levine Act . 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 unique among the provisions of the PRA in that it is the only
area in which a campaign contribution can be the basis for a
disqualifying conflict of interest. The PRA otherwise does not
treat campaign contributions as a potential basis for conflicts
of interest.
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 licenses, permits, or
other entitlements for use. Proceedings of a more general
nature and with broader applicability are not covered by the
Levine Act.
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The Levine Act generally does not apply to the judicial branch,
local governmental bodies whose members are elected directly by
the voters, members of the Legislature and the State Board of
Equalization (SBE), or constitutional officers. However, when
an officer who is otherwise exempted serves as a voting member
of an agency that is subject to the Levine Act, then the
contribution restrictions of the Levine Act do apply to that
officer. For example, someone elected to a county board of
supervisors is not subject to the Levine 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 Levine 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 Levine Act does not apply to local governmental
bodies whose members are elected directly by the voters, it
applies to some special districts, but not others.
Water districts . According to information from the 2010 report,
"What's So Special About Special Districts? (Fourth Edition),"
prepared by the Senate Local Government Committee, 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 Levine 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 Levine Act under existing law.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Annual costs of $115,331 for administrative expenses to the
FPPC (General Fund).
The FPPC indicates the need for 3/4 of one Attorney I position
to handle an increase in advice requests resulting in annual
costs of $115,331.
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SUPPORT : (Verified 8/15/14)
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OPPOSITION : (Verified 8/15/14)
Association of California Water Agencies
California Special Districts Association
ARGUMENTS IN SUPPORT : According to the author's office, this
bill requires members of local water boards excuse themselves
from decisions when contributors are involved. This bill
includes officials of local government agencies formed pursuant
to the provisions of the WAT and applies to proceedings to award
licenses or permits for use.
Appointed members of boards or commissions, who are running as
candidates for elective office, are restricted from making
decisions that affect contributors or potential contributors who
appear before them in a proceeding involving a license, permit
or entitlement for use (Government Code Section 84308). Members
of the SBE also have to abide by the same prohibition.
Unfortunately, there are still government entities where there
is no requirement to recuse one's self from voting on issues
that may pose a conflict of interest.
ARGUMENTS IN OPPOSITION : According to the California Special
Districts Association, this bill "extends current conflict of
interest and campaign reporting requirements for appointed state
and local officials to all water agency board members,
regardless if they are elected or appointed. AB 1728 could set
negative precedent for other special districts and local
agencies by changing campaign finance principles for locally
elected officials."
ASSEMBLY FLOOR : 56-16, 5/15/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall,
Roger Hern�ndez, Holden, Jones-Sawyer, Levine, Lowenthal,
Maienschein, Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea,
John A. P�rez, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
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Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber,
Wieckowski, Williams, Yamada, Atkins
NOES: Achadjian, Allen, Bigelow, Ch�vez, Conway, Dahle,
Donnelly, Beth Gaines, Grove, Hagman, Harkey, Jones, Logue,
Patterson, Wagner, Wilk
NO VOTE RECORDED: Gorell, Linder, Mansoor, Melendez, Nestande,
Olsen, Waldron, Vacancy
RM:k 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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