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AB-2654 Political Reform Act of 1974: nondisclosure agreements.(2023-2024)

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Date Published: 04/18/2024 09:00 PM
AB2654:v97#DOCUMENT

Amended  IN  Assembly  April 18, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2654


Introduced by Assembly Member Vince Fong

February 14, 2024


An act to add Chapter 12 (commencing with Section 11900) to Part 1 of Division 3 of Title 2 of Section 86207 to, the Government Code, relating to state government. the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


AB 2654, as amended, Vince Fong. Disbursements: fraud. Political Reform Act of 1974: nondisclosure agreements.
Existing law prohibits lobbyists from engaging in various activities, as specified.
This bill would prohibit lobbyists and certain public officials and employees, as specified, from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation. The bill would also make any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this bill void and unenforceable. A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating a new crime under the act, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.

Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program.

This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agency’s efforts to reduce disbursements based on fraudulent applications.

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 86207 is added to the Government Code, to read:

86207.
 (a) The following individuals shall not enter into, or request that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation.
(1) A lobbyist.
(2) The following individuals when acting in their official capacity:
(A) A public official.
(B) A Member or employee of the Legislature.
(C) An employee of the office of the Governor.
(b) Any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this section shall be void and unenforceable.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 3.

 The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
SECTION 1.Chapter 12 (commencing with Section 11900) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read:
12.Fraudulent Application Disbursements
11900.

(a)For purposes of this chapter, “state agency” has the same meaning as defined in Section 11000.

(b)A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.

(c)(1)A state agency shall annually submit a report to the Legislature that includes both of the following:

(A)The amount of money that was disbursed based on fraudulent applications the prior calendar year.

(B)The state agency’s efforts to reduce disbursements based on fraudulent applications.

(2)A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.

(3)A state agency shall submit the report required by this subdivision in compliance with Section 9795.