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  

          SB 1271 furthers the purpose of the Political Reform Act of 1974  


          and will, therefore, require a 2/3 vote on the Floor.