Existing law, commonly known as the code of ethics, prohibits a Member of the Legislature, state elective or appointive officer, or judge or justice from having any interest, engaging in any business, transaction, or professional activity, or incurring any obligation that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities, as specified. Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, and regulates the making of gifts to public officials. Existing law, the State Civil Service Act, creates the Department of Human Resources and grants to the department the powers, duties, and authority necessary to operate the state civil service system.

Existing law requires that a California Science and Technology Policy Fellow provided by the California Council on Science and Technology (CCST) be selected according to criteria, and pursuant to a process, approved by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules and requires the CCST to execute an agreement for a policy fellow to be bound to abide by standards of conduct, economic interest disclosure requisites, and other requirements specified by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules, to be considered duly authorized by those rules committees. Under existing law, for purposes of the code of ethics, the services of a duly authorized policy fellow provided by the CCST are not compensation, a reward, or a gift to a Member of the Legislature and are not an interest, business, transaction, professional activity, or obligation of a Member of the Legislature, state elective or appointive officer, judge, or justice that is in substantial conflict with the proper discharge of their duties in the public interest or of their responsibilities, and a policy fellow is not an employee of either house of the Legislature. Existing law also provides that the services of a duly authorized policy fellow are not a gift for purposes of the Political Reform Act of 1974 and not compensation of a state elective or appointive officer, and the policy fellow is not included in state civil service for the purposes of the State Civil Service Act, as specified.

The bill would provide that the services of a policy fellow provided by an association, as defined, are not compensation, a reward, a gift, an interest, a business, a transaction, a professional activity, or an obligation, and a policy fellow is not an employee of the Legislature or included in the state civil service, similar to the above-described provisions that apply to a California Science and Technology Policy Fellow provided by the CCST. The bill would state that these provisions are declaratory of existing law.

Existing law, commonly known as the code of ethics, prohibits a Member of the Legislature, state elective or appointive officer, or judge or justice from having any interest, engaging in any business, transaction, or professional activity, or incurring any obligation that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities, as specified. Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, and regulates the making of gifts to public officials. Existing law, the State Civil Service Act, creates the Department of Human Resources and grants to the department the powers, duties, and authority necessary to operate the state civil service system.

Existing law requires that a California Science and Technology Policy Fellow provided by the California Council on Science and Technology (CCST) be selected according to criteria, and pursuant to a process, approved by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules and requires the CCST to execute an agreement for a policy fellow to be bound to abide by standards of conduct, economic interest disclosure requisites, and other requirements specified by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules, to be considered duly authorized by those rules committees. Under existing law, for purposes of the code of ethics, the services of a duly authorized policy fellow provided by the CCST are not compensation, a reward, or a gift to a Member of the Legislature and are not an interest, business, transaction, professional activity, or obligation of a Member of the Legislature, state elective or appointive officer, judge, or justice that is in substantial conflict with the proper discharge of their duties in the public interest or of their responsibilities, and a policy fellow is not an employee of either house of the Legislature. Existing law also provides that the services of a duly authorized policy fellow are not a gift for purposes of the Political Reform Act of 1974 and not compensation of a state elective or appointive officer, and the policy fellow is not included in state civil service for the purposes of the State Civil Service Act, as specified.

The bill would provide that the services of a policy fellow provided by an association, as defined, are not compensation, a reward, a gift, an interest, a business, a transaction, a professional activity, or an obligation, and a policy fellow is not an employee of the Legislature or included in the state civil service, similar to the above-described provisions that apply to a California Science and Technology Policy Fellow provided by the CCST. The bill would state that these provisions are declaratory of existing law.

Existing law, commonly known as the code of ethics, prohibits a Member of the Legislature, state elective or appointive officer, or judge or justice from having any interest, engaging in any business, transaction, or professional activity, or incurring any obligation that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities, as specified. Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, and regulates the making of gifts to public officials. Existing law, the State Civil Service Act, creates the Department of Human Resources and grants to the department the powers, duties, and authority necessary to operate the state civil service system.

Existing law requires that a California Science and Technology Policy Fellow provided by the California Council on Science and Technology (CCST) be selected according to criteria, and pursuant to a process, approved by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules and requires the CCST to execute an agreement for a policy fellow to be bound to abide by standards of conduct, economic interest disclosure requisites, and other requirements specified by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules, to be considered duly authorized by those rules committees. Under existing law, for purposes of the code of ethics, the services of a duly authorized policy fellow provided by the CCST are not compensation, a reward, or a gift to a Member of the Legislature and are not an interest, business, transaction, professional activity, or obligation of a Member of the Legislature, state elective or appointive officer, judge, or justice that is in substantial conflict with the proper discharge of their duties in the public interest or of their responsibilities, and a policy fellow is not an employee of either house of the Legislature. Existing law also provides that the services of a duly authorized policy fellow duly authorized by an executed memorandum of understanding between the CCST and an executive branch agency or department are not a gift for purposes of the Political Reform Act of 1974 and not compensation of a state elective or appointive officer, and the policy fellow is not included in state civil service for the purposes of the State Civil Service Act. Act, as specified.

The bill would provide that the services of a policy fellow provided by a nonprofit organization, an association, as defined, are not compensation, a reward, a gift, an interest, a business, a transaction, a professional activity, or an obligation, and a policy fellow is not an employee of the Legislature or included in the state civil service, similar to the above described above-described provisions that apply to a California Science and Technology Policy Fellow provided by the CCST. The bill would also provide that those services, when provided to a state agency for purposes of assisting with official agency business, do not constitute a gift under the Political Reform Act of 1974. The bill would state that these provisions are declaratory of existing law.

Existing law, commonly known as the code of ethics, prohibits a Member of the Legislature, state elective or appointive officer, or judge or justice from having any interest, engaging in any business, transaction, or professional activity, or incurring any obligation that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities, as specified. Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, and regulates the making of gifts to public officials. Existing law, the State Civil Service Act, creates the Department of Human Resources and grants to the department the powers, duties, and authority necessary to operate the state civil service system.

Existing law requires that a California Science and Technology Policy Fellow provided by the California Council on Science and Technology (CCST) be selected according to criteria, and pursuant to a process, approved by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules and requires the CCST to execute an agreement for a policy fellow to be bound to abide by standards of conduct, economic interest disclosure requisites, and other requirements specified by the Senate Committee on Rules, the Assembly Committee on Rules, or the Joint Committee on Rules, to be considered duly authorized by those rules committees. Under existing law, for purposes of the code of ethics, the services of a duly authorized policy fellow provided by the CCST are not compensation, a reward, or a gift to a Member of the Legislature and are not an interest, business, transaction, professional activity, or obligation of a Member of the Legislature, state elective or appointive officer, judge, or justice that is in substantial conflict with the proper discharge of their duties in the public interest or of their responsibilities, and a policy fellow is not an employee of either house of the Legislature. Existing law also provides that the services of a duly authorized policy fellow duly authorized by an executed memorandum of understanding between the CCST and an executive branch agency or department are not a gift for purposes of the Political Reform Act of 1974 and not compensation of a state elective or appointive officer, and the policy fellow is not included in state civil service for the purposes of the State Civil Service Act.

The bill would provide that the services of a policy fellow provided by the Asian Pacific Islander Capitol Association (APICA) a nonprofit organization, as defined, are not compensation, a reward, a gift, an interest, a business, a transaction, a professional activity, or an obligation, and a policy fellow is not an employee of the Legislature or included in the state civil service, similar to the above described provisions that apply to a California Science and Technology Policy Fellow provided by the CCST. The bill would also provide that those services, when provided to a state agency for purposes of assisting with official agency business, do not constitute a gift under the Political Reform Act of 1974.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, the University of California, under the administration of the Regents of the University of California, the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, independent institutions of higher education, as defined, and private postsecondary educational institutions, as defined, as the segments of postsecondary education in the state.

This bill would state the intent of the Legislature to enact subsequent legislation relating to college and career education.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2573

Author:(Mike Fong and Lee)

As Amended Ver:June 20, 2024

Majority vote

SUMMARY

Amends various Codes of Ethics to clarify that the services of a policy fellow provided by an association are neither compensation, a reward or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of duties of a Member of the Legislature, state elective or appointive officer, judge, or justice, and defines "association" for these purposes, among other provisions.

Senate Amendments

1. Remove the broad term "nonprofit organization" and its associated definition, as previously passed by the Assembly, and instead, refer to "association" and define that term to mean the following organizations that are exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code:
2. The Asian Pacific Islander Capitol Association;
3. The California Legislative Black Staff Association;
4. The Capitol LGBTQ Association; and,
5. The California Latino Capitol Association Foundation.
6. Remove provisions relating to an executed memorandum of understanding between the nonprofit organization and respective branch of government, as applicable.
7. Expressly establish that these statutory provisions are not changes in, but are declaratory of, existing law.
8. Make other technical and clarify changes for these purposes.

COMMENTS

Please see the respective policy committee analyses for a full discussion of this bill.

According to the Author

"There are several legislative staff associations that provide staff support, networking opportunities, community engagement, and professional development and engagement through workshops, events and fellowship programs. They include Asian Pacific Islander Capitol Association, the California Legislative Black Staff Association, the Capitol LGBTQ Association, and the California Latino Capitol Association Foundation. They are non-partisan, non-profit organizations with membership from the capital community.

"[This bill] provides that the services of fellows hosted by the legislative staff associations are not compensation, a reward, a gift, and interest, a business, a transaction, a professional activity, or an obligation, [and] specifies that a fellow is not an employee of the Legislature or included in the state service, similar to the provisions that apply to a California Science and Technology Policy Fellow Provided by California Council on Science and Technology."

Arguments in Support

Among other things, the University of California (UC) states that, "[public] service is a part of the University's mission, and its core values include collaboration, excellence, equity and inclusion, and public impact…," and, [the] UC is committed to supporting efforts that help our students successfully obtain employment in the Capitol community and fully engage in learning and participating in the legislative process."

Arguments in Opposition

None.

FISCAL COMMENTS

None. This bill is keyed nonfiscal by Legislative Counsel.

VOTES:

ASM PUBLIC EMPLOYMENT AND RETIREMENT: 7-0-0

YES: McKinnor, Lackey, Boerner, Vince Fong, Hart, Stephanie Nguyen, Luz Rivas

ASSEMBLY FLOOR: 74-0-6

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Bauer-Kahan, Megan Dahle, Essayli, Grayson, Mathis, Quirk-Silva

SENATE FLOOR: 38-0-2

YES: Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Wahab, Wiener, Wilk

ABS, ABST OR NV: Allen, Umberg

UPDATED

VERSION: June 20, 2024

CONSULTANT: Michael Bolden / P. E. & R. / (916) 319-3957 FN: 0003841

 CONSENT  

Bill No: AB 2573

Author: Mike Fong (D) and Lee (D), et al.

Amended: 6/20/24 in Senate

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 7/3/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

ASSEMBLY FLOOR: 74-0, 5/13/24 - See last page for vote

SUBJECT: Policy fellows: status of services: associations

SOURCE: Author

DIGEST:

This bill clarifies that the services of a policy fellow provided by an association are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, state elective, appointive officer, judge, or justice, as specified.

ANALYSIS:

Existing law:

1. Establishes a code of ethics for members of the Legislature, state elective or appointive officers, or judges which prohibits them while serving as such, from having any interest, financial or otherwise, direct or indirect, or engaging in any business or transaction or professional activity, or incurring any obligation of any nature, that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities as prescribed in the laws of this state.

Prohibits them, through the code, from receiving or agreeing to receive, directly or indirectly, any compensation, reward, or gift from any source except the State of California for any service, advice, assistance or other matter related to the legislative process, except fees for speeches or published works on legislative subjects and except, in connection therewith, reimbursement of expenses for actual expenditures for travel and reasonable subsistence for which payment or reimbursement is not made by the State of California. (Government Code (GC) §8920)

1. Prohibits an elected state officer, elected officer of a local government agency, or other specified individual from accepting gifts from any single source in any calendar year with a total value of more than two hundred fifty dollars ($250) and defines “ gift” to mean any payment, except as specified, that confers a personal benefit on the recipient, to the extent that consideration of equal or greater value is not received and includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to official status. (GC §89503 and §82028)
2. Recognizes, among other related legislative findings and declarations, that the California Council on Science and Technology (CCST) was formed as a 501(c)(3) corporation to provide expert, unbiased advice to various agencies of state government in connection with science and technology policy issues, and in 2009 began placing Ph.D.-level, or equivalent, scientists, engineers, and other experts in legislative offices for the purpose of providing Members, committees, and legislative staff with unbiased advice in connection with science and technology-related legislation. (GC §8924.5)
3. Provides that the services of a CCST Fellow are not compensation, a reward, or a gift to a member of the Legislature for which the receipt thereof constitutes a prohibited act pursuant to the legislative code of ethics. (GC §8920)
4. Provides that the services of a CCST Fellow are not compensation, a reward, or a gift to a state elective, appointive officer, judge, or justice for which the receipt thereof constitutes a prohibited act. (GC §8920)

This bill:

1. Defines “association” for purposes of these provisions as any of the following organizations that are exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code:
   1. The Asian Pacific Islander Capitol Association.
   2. The California Legislative Black Staff Association.
   3. The Capitol LGBTQ Association.
   4. The California Latino Capitol Association Foundation.
2. Provides that the services of a policy fellow provided by an association are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, state elective, appointive officer, judge, or justice, as specified.
3. Provides that a policy fellow provided by an association is not an employee of either house of the Legislature for purposes of these provisions.
4. Provides that the state civil service does not include a policy fellow provided by an association.
5. States that these provisions do not constitute a change in, but are declaratory of, existing law.

Related/Prior Legislation

SB 698 (Wilk, Chapter 112, Statutes of 2023) clarified that the services provided by a California Science and Technology Policy Fellow are not compensation or a gift to an executive branch state officer otherwise prohibited by state ethics law.

AB 573 (Portantino, Chapter 117, Statutes of 2009) clarified that the services of a California Science and Technology Policy Fellow provided by the California Council on Science and Technology and authorized by the Senate Rules Committee, the Assembly Rules Committee, or the Joint Rules Committee are not compensation, a reward, or a gift to a Member of the Legislature.

ACR 162 (Farr, Resolution Chapter 148, Statutes of 1988) requested the creation of the CCST.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 7/8/24)

University of California

OPPOSITION: (Verified 7/8/24)

None received

ARGUMENTS IN SUPPORT: The University of California is in support of the measure, stating:

“Staff associations provide an invaluable service to the State Capitol community by building a pipeline of diverse professionals working in the legislative field. As a part of this service, some of the associations provide paid fellowships in legislative offices.

Public service is a part of the University’s mission, and its core values include collaboration, excellence, equity and inclusion, and public impact. For over 20 years, UC has operated its Sacramento Center, which provides expertise and research on public policy matters, as well as public-service opportunities for our students in the Capitol community.

The University is proud to have had several of its current students and alumni participate in these state association fellowships, including individuals who work in the Legislature and in non-profit advocacy. UC is committed to supporting all efforts that help our students successfully obtain employment in the Capitol community and fully engage in learning and participating in the legislative process. Many of our students who are selected to participate in these staff association fellowships ultimately become leaders in public service entities and carry forward the University’s core values in regard to our public service mission. For these reasons, the University is in support of AB 2573.”

ASSEMBLY FLOOR: 74-0, 5/13/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Bauer-Kahan, Megan Dahle, Essayli, Grayson, Mathis, Quirk-Silva

Prepared by: Emma Bruce / L., P.E. & R. / (916) 651-1556

7/31/24 15:30:50

**** END ****

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Lola Smallwood-Cuevas, Chair

2023 - 2024 Regular

Bill No: AB 2573 Hearing Date: July 3, 2024

SUBJECT: Policy fellows: status of services: associations

KEY ISSUE

This bill clarifies that the services of a policy fellow provided by an association are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, state elective, appointive officer, judge, or justice, as specified.

ANALYSIS

Existing law:

1. Establishes a code of ethics for members of the Legislature, state elective or appointive officers, or judges which prohibits them while serving as such, from having any interest, financial or otherwise, direct or indirect, or engaging in any business or transaction or professional activity, or incurring any obligation of any nature, that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities as prescribed in the laws of this state.

The code also prohibits them from receiving or agreeing to receive, directly or indirectly, any compensation, reward, or gift from any source except the State of California for any service, advice, assistance or other matter related to the legislative process, except fees for speeches or published works on legislative subjects and except, in connection therewith, reimbursement of expenses for actual expenditures for travel and reasonable subsistence for which payment or reimbursement is not made by the State of California. (Government Code (GC) §8920)

1. Prohibits an elected state officer, elected officer of a local government agency, or other specified individual from accepting gifts from any single source in any calendar year with a total value of more than two hundred fifty dollars ($250) and defines “ gift” to mean any payment, except as specified, that confers a personal benefit on the recipient, to the extent that consideration of equal or greater value is not received and includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to official status. (GC §89503 and §82028)
2. Recognizes, among other related legislative findings and declarations, that the California Council on Science and Technology (CCST) was formed as a 501(c)(3) corporation to provide expert, unbiased advice to various agencies of state government in connection with science and technology policy issues, and in 2009 began placing Ph.D.-level, or equivalent, scientists, engineers, and other experts in legislative offices for the purpose of providing Members, committees, and legislative staff with unbiased advice in connection with science and technology-related legislation. (GC §8924.5)
3. Provides that the services of a CCST Fellow are not compensation, a reward, or a gift to a member of the Legislature for which the receipt thereof constitutes a prohibited act pursuant to the legislative code of ethics. (GC §8920)
4. Provides that the services of a CCST Fellow are not compensation, a reward, or a gift to a state elective, appointive officer, judge, or justice for which the receipt thereof constitutes a prohibited act. (GC §8920)

This bill:

1. Defines “association” for purposes of these provisions as any of the following organizations that are exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code:
2. The Asian Pacific Islander Capitol Association.
3. The California Legislative Black Staff Association.
4. The Capitol LGBTQ Association.
5. The California Latino Capitol Association Foundation.
6. Provides that the services of a policy fellow provided by an association are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, state elective, appointive officer, judge, or justice, as specified.
7. Provides that a policy fellow provided by an association is not an employee of either house of the Legislature for purposes of these provisions.
8. Provides that the state civil service does not include a policy fellow provided by an association.
9. States that these provisions do not constitute a change in, but are declaratory of, existing law.

COMMENTS

1. Need for this bill?

According to the author:

“There are several legislative staff associations that provide staff support, networking opportunities, community engagement, and professional development and engagement through workshops, events and fellowship programs. They include APICA, the California Legislative Black Staff Association, the Capitol LGBTQ Association, and the California Latino Capitol Association Foundation (CLCAF). They are non-partisan, non-profit organizations with membership from the capital community.

Currently, APICA and the CLCAF sponsor Fellowship Programs. The APICA brings approximately 6-10 college students/recent graduates to Sacramento and provides a two-month internship during the summer to learn about the State Legislature. CLCAF’s internship is open to anyone over 21 years of age for a 10 week internship, also during the summer…

AB 2573 provides that the services of fellows hosted by the legislative staff associations are not compensation, a reward, a gift, and interest, a business, a transaction, a professional activity, or an obligation. The bill also specifies that a fellow is not an employee of the Legislature or included in the state service, similar to the provisions that apply to a CA Science and Technology Policy Fellow Provided by CCST.”

2. Proponent Arguments:

The University of California is in support of the measure, stating:

“Staff associations provide an invaluable service to the State Capitol community by building a pipeline of diverse professionals working in the legislative field. As a part of this service, some of the associations provide paid fellowships in legislative offices.

Public service is a part of the University’s mission, and its core values include collaboration, excellence, equity and inclusion, and public impact. For over 20 years, UC has operated its Sacramento Center, which provides expertise and research on public policy matters, as well as public-service opportunities for our students in the Capitol community.

The University is proud to have had several of its current students and alumni participate in these state association fellowships, including individuals who work in the Legislature and in non-profit advocacy. UC is committed to supporting all efforts that help our students successfully obtain employment in the Capitol community and fully engage in learning and participating in the legislative process. Many of our students who are selected to participate in these staff association fellowships ultimately become leaders in public service entities and carry forward the University’s core values in regard to our public service mission. For these reasons, the University is in support of AB 2573.”

3. Opponent Arguments:

None received.

4. Prior Legislation:

SB 698 (Wilk, Chapter 112, Statutes of 2023) clarified that the services provided by a California Science and Technology Policy Fellow are not compensation or a gift to an executive branch state officer otherwise prohibited by state ethics law.

AB 573 (Portantino, Chapter 117, Statutes of 2009) clarified that the services of a California Science and Technology Policy Fellow provided by the California Council on Science and Technology and authorized by the Senate Rules Committee, the Assembly Rules Committee, or the Joint Rules Committee are not compensation, a reward, or a gift to a Member of the Legislature.

Assembly Concurrent Resolution 162 (Farr, Chapter 148, Statutes of 1988) requested the creation of the CCST.

SUPPORT

University of California

OPPOSITION

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2573

Author:(Mike Fong and Lee)

As Amended Ver:May 6, 2024

Majority vote

SUMMARY

Amends the Legislative Code of Ethics to include the services of a policy fellow provided by a nonprofit organization, as defined.

Major Provisions

1. Establish that the services provided by a policy fellow provided by a nonprofit organization are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, executive branch agency or department; state appointive or elective officers; or, a judicial agency or department, judge, or justice.
2. Define "nonprofit organization" to mean an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code.
3. Establish that a policy fellow provided by a nonprofit organization is not an employee of either house of the Legislature for these purposes.
4. Exclude nonprofit policy fellows from the state civil service.

COMMENTS

Please see the policy committee analysis for a full discussion of this bill.

According to the Author

"[Fellowship programs are] one of the key pipeline programs that bring interns to the Capitol each year to provide young professionals the opportunity to learn about the State Legislature, public policy, and public service. [These programs have] successfully hosted [numerous] interns, with many choosing public policy as a career after the internship," and, "[this bill] will help broaden the experience of [policy fellows]."

Arguments in Support

Among other things, the University of California (UC) states that, "[public] service is a part of the University's mission, and its core values include collaboration, excellence, equity and inclusion, and public impact…," and, [the] UC is committed to supporting efforts that help our students successfully obtain employment in the Capitol community and fully engage in learning and participating in the legislative process."

Arguments in Opposition

None.

FISCAL COMMENTS

None.

VOTES

ASM PUBLIC EMPLOYMENT AND RETIREMENT: 7-0-0

YES: McKinnor, Lackey, Boerner, Vince Fong, Hart, Stephanie Nguyen, Luz Rivas

UPDATED

VERSION: May 6, 2024

CONSULTANT: Michael Bolden / P. E. & R. / (916) 319-3957 FN: 0002850

ASSEMBLY THIRD READING

ATR Bill Id:AB 2573

Author:(Mike Fong and Lee)

As Amended Ver:March 21, 2024

Majority vote

SUMMARY

Amends the Legislative Code of Ethics to include the services of a policy fellow provided by the Asian Pacific Islander Capitol Association (APICA).

Major Provisions

1. Establishes that the services provided by APICA fellows are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, executive branch agency or department; state appointive or elective officers; or, a judicial agency or department, judge, or justice.
2. Establishes that an APICA fellow is not an employee of either house of the Legislature for these purposes.
3. Establishes two conditions in which a policy fellow provided by the APICA is "duly authorized by an executed memorandum of understanding (MOU) between the association and an executive branch agency or department." These standards are that: a) the fellow has been selected according to criteria and pursuant to a process included in the executed MOU, and b) the APICA has executed such agreement where the policy fellow is bound to abide by the standards of conduct, economic interest disclosure requisites, and among other applicable requirements.
4. Excludes APICA policy fellows from the state civil service.

COMMENTS

Background

The APICA is a nonpartisan, nonprofit organization with membership from legislative, department or agency staff, advocates and lobbyists, and other Asian American, Native Hawaiian, and Pacific Islander (AANHPI) professionals in Sacramento, California. The organization provides networking opportunities, professional and business development, and community engagement among the vast network of members and alumni in the capital. Its mission is to uplift AANHPI staff. One of the programs sponsored by APICA is the Summer Fellowship Program. The program brings college students/recent graduates to Sacramento and provides a two-month internship to learn about the State Legislature, and is one of the few programs able to provide a stipend to its participants - stemming from a strong belief that opportunities to help college students and recent graduates learn the policy process should be offered regardless of economic background. However, the Fellows are limited in their ability to directly work on legislation because APICA is a nonprofit organization.

This bill provides that the services of an APICA fellow are not compensation, a reward, a gift, an interest, a business, a transaction, a professional activity, or an obligation, and among other things, specifies that an APICA fellow is not an employee of the Legislature or included in the state service, similar to the provisions that apply to a California Council on Science and Technology (CCST) Policy Fellow provided by CCST.

Need for a Comprehensive Legislative Approach Regarding Fellows Programs

To the extent that other various legislative caucuses (i.e., Black, Latino, LGBTQ, Jewish, Native American, and Women's) of the Legislature also have formal legislative fellows programs, e.g., nonprofit 501(c)(3) corporation or other appropriate form, the author is highly encouraged to work with the Chair of each of those respective legislative caucuses and/or the Fair Political Practices Commission to identify and add other fellows programs to this bill for equitable purposes and that would effectively and efficiently resolve the need for additional clarifying or enabling legislation regarding similar matters in the future.

Please see the policy committee analysis for a full discussion of this bill.

According to the Author

"APICA's Summer Fellowship Program is one of the key pipeline programs that brings interns to the Capitol each year to provide young professionals the opportunity to learn about the State Legislature, public policy, and public service. APICA has successfully hosted over 40 interns, with many choosing public policy as a career after the internship, most notably, Assemblymember Alex Lee. This bill will help broaden the experience of APICA Fellows."

Arguments in Support

Among other things, the University of California (UC) states that, "[public] service is a part of the University's mission, and its core values include collaboration, excellence, equity and inclusion, and public impact. For over 20 years, UC has operated its Sacramento Center, which provides teaching and research on public policy, as well as public-service opportunities in the Capitol community. The University is proud to have had several of its current students and alumni participate in the APICA fellowship, including individuals who work in the Legislature and in nonprofit advocacy. UC is committed to supporting efforts that help our students successfully obtain employment in the Capitol community and fully engage in learning and participating in the legislative process. Our students who are selected to participate in the APICA fellowship ultimately become leaders in public service and carry out our core values in supporting our public service mission.

Arguments in Opposition

None.

FISCAL COMMENTS

None.

VOTES

ASM PUBLIC EMPLOYMENT AND RETIREMENT: 7-0-0

YES: McKinnor, Lackey, Boerner, Vince Fong, Hart, Stephanie Nguyen, Luz Rivas

UPDATED

VERSION: March 21, 2024

CONSULTANT: Michael Bolden / P. E. & R. / (916) 319-3957 FN: 0002749

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON PUBLIC EMPLOYMENT AND RETIREMENT

Tina S. McKinnor, Chair

ABPCA Bill Id:AB 2573 (

Author:Mike Fong) – As Amended Ver:March 21, 2024

SUBJECT: Policy fellows: status of services: Asian Pacific Islander Capitol Association (APICA)

SUMMARY: Amends the Legislative Code of Ethics to include the services of a policy fellow provided by the Asian Pacific Islander Capitol Association (APICA). Specifically, this bill:

1. Establishes that the services provided by APICA fellow are not compensation, a reward, or gift, nor an interest, business, transaction, professional activity, or obligation that is in substantial conflict with the proper discharge of the duties of a Member of the Legislature, executive branch agency or department; state appointive or elective officers; or, a judicial agency or department, judge, or justice, as respectively provided.
2. Establishes that an APICA fellow is not an employee of either house of the Legislature for these purposes.
3. Establishes two conditions in which a police fellow provided by the APICA is “duly authorized by an executed memorandum of understanding (MOU) between the association and an executive branch agency or department.” These standards are that: (a) the fellow has been selected according to criteria and pursuant to a process included in the executed MOU, and (b) the APICA has executed such agreement where the policy fellow is bound to abide by the standards of conduct, economic interest disclosure requisites, and other requirements, as applicable and provided.
4. Excludes APICA policy fellows from the state civil service, as provided.

EXISTING LAW:

1. Establishes the Legislative Code of Ethics that, among other things, prescribes certain prohibited acts by a Member of the Legislature, state elective or appointive officer, or judge or justice while serving in such capacity, and from having any interest, financial or otherwise, direct or indirect, or engaging in any business or transaction or professional activity, or incurring any obligation of any nature, that is in substantial conflict with the proper discharge of their duties in the public interest and of their responsibilities as prescribed by the laws of this state.^[1]
2. Provides for the salaries of executive branch personnel, except as otherwise provided, and the method for payment thereof.^[2]
3. Establishes the Political Reform Act (PRA) of 1974, which provides for, among other things, conflicts of interest of public officials at any level of state or local government relating to use of the position to influence a governmental decision in which they know, or have reason to know, they have a financial interest.^[3]
4. Prohibits, pursuant to the PRA and among other things, an elected state officer, elected officer of a local government agency, or other specified individual from accepting gifts from any single source in any calendar year with a total value of more than two hundred fifty dollars ($250); defines “gift” to mean any payment, except as specified, that confers a personal benefit on the recipient, to the extent that consideration of equal or greater value is not received and includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to official status; and, establishes that a gift is both “received” and “accepted” when the public official, or the official’s immediate family member, knowingly takes actual possession of the gift, is provided the benefit of the gift, or takes any action exercising direction or control of the gift.^[4]
5. Requests through a legislative resolution that the President of the University of California, in collaboration with the presidents of the University of Southern California, the California Institute of Technology, and Stanford University and the Chancellor of the California State University, establish the California Council on Science and Technology (CCST) for the purpose of reporting to the presidents and the chancellor and responding appropriately to the Governor, the Legislature, and other relevant entities on public policy issues significantly related to science and technology.^[5]
6. Recognizes, among other related legislative findings and declarations, that the CCST was formed as a 501(c)(3) corporation to provide expert, unbiased advice to various agencies of state government in connection with science and technology policy issues, and in 2009 began placing Ph.D.-level, or equivalent, scientists, engineers, and other experts in legislative offices for the purpose of providing Members, committees, and legislative staff with unbiased advice in connection with science and technology-related legislation.^[6]
7. Clarifies the Legislative Code of Ethics relating to a CCST Policy Fellow, as provided.^[7]

FISCAL EFFECT: None. This bill is keyed nonfiscal by Legislative Counsel.

COMMENTS:

1. Background and Need for this Bill

Information provided by the author states that, “[the] APICA is a non-partisan, non-profit organization with membership from legislative, department or agency staff, advocates and lobbyists, and other Asian American, Native Hawaiian, and Pacific Islander (AANHPI) professionals in Sacramento, California. The organization provides networking opportunities, professional and business development, and community engagement among the vast network of members and alumni in the capital. Their mission is to uplift AANHPI staff. One of the programs sponsored by APICA is the Summer Fellowship Program. The program brings college students/recent graduates to Sacramento and provides a two-month internship to learn about the State Legislature. However, the Fellows are limited in their ability to work directly on policy or legislation because they receive a stipend from a nonprofit organization.

“The APICA fellowship is one of the few programs able to provide a stipend to its participants - stemming from a strong belief that opportunities to help college students and recent graduates learn the policy process should be offered regardless of economic background. However, the Fellows are limited in their ability to directly work on legislation because APICA is a nonprofit organization. [This bill] provides that the services of an APICA fellow are not compensation, a reward, a gift, and interest, a business, a transaction, a professional activity, or an obligation,” and “… specifies that an APICA fellow is not an employee of the Legislature or included in the state service, similar to the provisions that apply to a [CCST] Policy Fellow provided by CCST.”

1. Suggestion to the Author for Consideration

To the extent that other various legislative caucuses (i.e., Black, Latino, LGBTQ, Jewish, Native American, and Women’s) of the Legislature also have formal legislative fellows programs, e.g., nonprofit 501(c)(3) corporation or other appropriate form, the author is highly encouraged to work with the Chair of each of those respective legislative caucuses to identify and add their fellows programs to this bill for equitable purposes and that would effectively and efficiently resolve the need for additional clarifying or enabling legislation regarding similar matters in the future. (Emphasis.)

1. Statement by the Author

The author states that, “APICA’s Summer Fellowship Program is one of the key pipeline programs that brings interns to the Capitol each year to provide young professionals the opportunity to learn about the State Legislature, public policy, and public service. APICA has successfully hosted over 40 interns, with many choosing public policy as a career after the internship, most notably, Assemblymember Alex Lee. This bill will help broaden the experience of APICA Fellows.”

1. Comments by Supporters

None on file.

1. Comments by Opponents

None on file.

1. Prior or Related Legislation

Chapter 112, Statutes of 2023 (Senate Bill 698, Wilk and Portantino) clarifies several code of ethics and CPRA laws relating to the services of a CCST Policy Fellow provided by the CCST.

Chapter 117, Statutes of 2009 (Assembly Bill 573, Portantino) clarified that the services of a CCST Policy Fellow provided by the CCST and authorized by the legislative employer, as provided, are not compensation, a reward, or gift to a Member of the Legislature.

Resolution Chapter 148, Statutes of 1988 (Assembly Concurrent Resolution 162, Farr) requested the creation of the CCST.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Michael Bolden / P. E. & R. / (916) 319-3957

1. Sections 8920 et seq. of the Government (Gov.) Code. ↑

2. Sections 18000, 18000.5, and 18003 of the Gov. Code. ↑

3. Sections 87100 et seq. of the Gov. Code. ↑

4. Sections 89503, 82028, and 89503.5 of the Gov. Code. ↑

5. Resolution Chapter 148, Statutes of 1988 (Assembly Concurrent Resolution No. 162, Farr) ↑

6. Section 8924.5 of the Government (Gov.) Code. ↑

7. Section 8924.5(b) of the Gov. Code. ↑