BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1271
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          SENATE THIRD READING
          SB 1271 (Romero)
          As Amended  August 9, 2010
          2/3 vote 

           SENATE VOTE  :30-0  
           
           ELECTIONS           7-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Fong, Adams, Bill         |Ayes:|Fuentes, Conway,          |
          |     |Berryhill, Gatto,         |     |Bradford,                 |
          |     |Mendoza, Saldana, Swanson |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis,                    |
          |     |                          |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Requires a public retirement board to attach an  
          appendix to its conflict of interest code that lists each  
          position with the board for which an individual occupying the  
          position is required to file a Statement of Economic Interests  
          (SEI) as a public official who manages public investments.   
          Specifically,  this bill  :   

          1)Requires a public retirement board, commission, or agency 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."  Requires the  
            appendix to list each position with the board, commission, or  
            agency for which an individual occupying the position is  
            required to file a SEI as a public official who manages public  
            investments within the meaning of existing state law.   
            Requires the board, commission, or agency to post this  
            appendix on its Internet Web site in a manner that makes it  
            easily identifiable and accessible by persons who view the Web  
            site. 

          2)Provides that, for the purposes of this bill, "public official  
            who manages public investments" includes a salaried or  
            unsalaried member of a committee, board, commission, or other  
            entity that exists as, or within, a governmental agency and  








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            that possesses decision making authority.

          3)Provides that a committee, board, commission, or other entity  
            possesses decision making authority for the purposes of this  
            bill if any of the following apply:

             a)   The entity may make a final governmental decision;

             b)   The entity may compel a governmental decision or prevent  
               a governmental decision, either by virtue of possessing  
               exclusive power to initiate the decision or by having veto  
               authority that may not be overridden; or, 

             c)   The entity makes substantive recommendations that are,  
               and over an extended period of time have been, regularly  
               approved, without significant amendment or modification, by  
               another public official or governmental agency.

          4)Provides that a committee, board, commission, or other entity  
            does not possess decision making authority for the purposes of  
            this bill 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.
           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, minor absorbable costs to the Fair Political  
          Practices Commission (FPPC), the California Public Employees  
          Retirement System, and the California State Teachers Retirement  
          System, and minor reimbursable costs to local retirement systems  
          to comply with the bill's requirements.

           COMMENTS  :  According to the author, "There are some public  
          employee pension systems that have persons who join with the  
          governing bodies and participate in the decision making process  
          during meetings.  These persons may be employees or  
          non-employees.  Although these persons do not vote, they still  
          have influence in the decision making process.  However, these  
          non-employees/employees do not file Statements of Economic  
          Interest; thus, there is a lack of transparency. This bill would  
          encompass those persons who participate in the decision making  
          process, but do not vote, requiring them to file Statements of  
          Economic Interests."

          California voters passed an initiative, Proposition 9, in 1974  








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          that created the FPPC and codified significant restrictions and  
          prohibitions on candidates, officeholders and lobbyists. That  
          initiative is commonly known as the Political Reform Act (PRA).   
          Amendments to the PRA that are not submitted to the voters, such  
          as those contained in this bill, must further the purposes of  
          the initiative and require a two-thirds vote of both houses of  
          the Legislature.


           Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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