BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1007
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1007 (Hancock) - As Amended:  June 24, 2010 

          Policy Committee:                              ElectionsVote:7-0  
          (Consent)

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable: No

           SUMMARY  

          This bill amends the Political Reform Act (PRA) to require  
          elected members of and candidates for the governing boards of  
          the Public Employees' Retirement System (CalPERS) and the State  
          Teachers' Retirement System (CalSTRS) to file campaign reports  
          in generally the same manner and frequency as other candidates,  
          and makes existing contribution limits for other state offices  
          applicable to candidates for the CalSTRS board.  Specifically,  
          this bill:   

          1)Requires all candidates for CalPERS and CalSTRS boards, their  
            controlled committees, and committees primarily formed to  
            support or oppose those candidates to file campaign reports  
            generally in the same manner and frequency as other candidates  
            for state office.

          2)Makes campaign contribution limits that currently apply to  
            candidates for the Legislature and candidates for the CalPERS  
            board applicable to candidates for the CalSTRS board.

          3)Requires pre-election campaign statements that are filed in  
            connection with an election for CalPERS or CalSTRS board to be  
            filed pursuant to a specified schedule. 

          4)Requires the original and one copy of each campaign statement  
            filed in connection with an election for the CalPERS or  
            CalSTRS board to be filed with the Secretary of State (SOS),  
            and requires a copy of each campaign statement to be filed  
            with the relevant board's office in Sacramento.

          5)Permits the Fair Political Practices Commission (FPPC) to  








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            adopt regulations to tailor the reporting and disclosure  
            requirements for candidates for, and committees involved in,  
            campaigns for the CalPERS and CalSTRS boards consistent with  
            the purposes and provisions of the PRA.

           FISCAL EFFECT  

          Any costs to the FPPC, the SOS, CalPERS and CalSTRS will be  
          minor and absorbable.

           COMMENTS  

           1)Purpose  . According to the author, "SB 1007 is a common sense  
            bill that . . . would simply require candidates for elected  
            positions to the [CalPERS] and [CalSTRS] boards to file  
            periodic campaign reports in generally the same manner as  
            candidates for other state offices. If these candidates raise  
            little or no money they will have little, if any, filing  
            obligations. However, some candidates do raise significant  
            contributions and other independent committees have been  
            formed to support them. Even if the recent controversies  
            surrounding these boards had not come to light this bill would  
            still be a good idea.  These boards manage public investment  
            portfolios worth billions of dollars. The need for disclosure  
            is obvious."

           2)Prior Legislation  . SB 1753 (Schiff)/Chapter 923 of 1998  
            required candidates for seats on the CalPERS board who are  
            elected by CalPERS members to file campaign statements. At  
            that time, the CalSTRS board did not have member-elected  
            representatives like the CalPERS board, thus those provisions  
            of SB 1753 were not made applicable to the CalSTRS board.  
            Moreover, when the voters approved Proposition 34 at the  
            November 2000 election, which, among other provisions, imposed  
            contribution limits on candidates for elective state office,  
            provisions of SB 1753 made those contribution limits  
            applicable to candidates for the CalPERS board. 

          SB 1580 (Burton)/Chapter 1049 of 2002 provided for three members  
            of the CalSTRS board to be elected by CalSTRS members.  
            Although there have been two elections for the CalSTRS board  
            since that time, CalSTRS indicates that it is not aware of any  
            contributions being made to or expenditures being made by or  
            on behalf of any of the candidates.









                                                                  SB 1007
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           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081