BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 1271 (Romero) Hearing Date: 05/03/2010 Amended: 04/05/2010 Consultant: Maureen Ortiz Policy Vote: ER&CA 5-0 _________________________________________________________________ ____ BILL SUMMARY: SB 1271 requires public retirement boards, commissions and agencies to attach to its Conflict of Interest Code a list of positions that manage public investments. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Admin expenses --------------minor, absorbable-------------- Specials* Admin expenses ----unknown, likely less than $50--------- General** *Teachers Retirement Fund and Public Employees Retirement Fund **Reimbursable State Mandate _________________________________________________________________ ____ STAFF COMMENTS: CalSTRS and CalPERS indicate minor, absorbable costs as does the Fair Political Practices Commission. Although the bill constitutes a state-reimbursable mandated program, it is not likely that costs to local pension systems will exceed $50,000. SB 1271 requires every public retirement board to attach to its Conflict of Interest Code an appendix entitled "Agency Positions that Manage Public Investments for Purposes of Section 87200 of the Government Code". The appendix will include a list of every position with the board, commission, or agency for which an individual occupying that specific position is required to file a Statement of Economic Interests as a public official who manages public investments within the meaning of Section 87200 of the Government Code. (Section 87200 applies to elected state officers, judges and commissioners of courts of the judicial branch of government, members of the Public Utilities Commission, members of the State Energy Resources Conservation and Development Commission, members of the Fair Political Practices Commission, members of the California Coastal Commission, members of planning commissions, members of the board of supervisors, district attorneys, county counsels, county treasurers, and chief administrative officers of counties, mayors, city managers, city attorneys, city treasurers, chief administrative officers and members of city councils of cities, and other public officials who manage public investments, and to candidates for any of these offices at any election.) The board, commission, or agency will also be required to post the appendix on its Internet Web site. SB 1271 (Romero) Page 2 The affected positions include salaried or unsalaried members of the committee, board, commission or other entity that possess decision-making authority. SB 1271 provides that the entity does not possess decision-making authority if it is formed for the sole purpose of researching a subject and preparing a report or recommendation for submission to another governmental entity that has final decision-making authority. Existing law requires each state and local government agency to adopt and promulgate a conflict of interest code to establish standards for designated employees, and to require those employees to file periodic statements of economic interest. Existing law also requires specified public officials, including officials who manage public investments, to also file statements of economic interest, but does not require those official positions to be specifically listed in the agency's conflict of interest code. This bill will bring uniformity to all public retirement boards and require persons who participate in the decision making process, but do not vote, to file statements of economic interest. SB 1271 furthers the purpose of the Political Reform Act of 1974 and will, therefore, require a 2/3 vote on the Floor.