February 22, 2011
The Transmission Agency of Northern California (TANC) is composed of most of the cities and districts in Northern California that furnish electric service to their consumers. We serve as TANC's General Counsel. Over the last three decades I have seen many instances where appointed officials, serving without pay, devoted their financial expertise to assisting their colleagues in understanding the intricacies of municipal finance. For more than 25 years now these volunteers have been subject to the public disclosure and filing requirements imposed on elected and appointed local officials and advisors as a part of existing California law, the Political Reform Act. On more than one occasion I have learned from good, honest people, but former officials, that the intrusive and burdensome nature of the state disclosure rules discouraged them from remaining in public life. Some talented friends and acquaintances have declined to enter or accept public office for the same reason. Compliance with existing disclosure laws is a particular burden for officials in small communities, where their private incomes cannot afford the expense of the expert guidance needed to understand the complex disclosure regulations, and their entities' own advisors cannot always offer expertise. The broad definition of municipal advisor in the proposed regulation would adversely affect public life and service in the vast majority of the hundreds of small cities and districts in California by adding an additional and even more burdensome layer of federal regulation. We agree with the many commenters who point out that federal disclosure filings with the SEC are unnecessary, would discourage local public service, and in the case of California, would add federal forms and attendant expense on top of the completely thorough California disclosure framework. You may review the existing California regulations at: http://www.fppc.ca.gov/index.php?id=228