BILL ANALYSIS Ó AB 41 Page 1 Date of Hearing: April 6, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 41 (Hill) - As Introduced: December 6, 2011 Policy Committee: ElectionsVote:7-0 (Consent) Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill expands reporting and other requirements of the Political Reform Act (PRA), for members of the High-Speed Rail Authority (HSRA), to match the requirements placed on other specified high-ranking public officials. Specifically, this bill: 1)Requires an HSRA member having a financial interest in a decision before the authority to publicly identify the financial interest that gives rise to the conflict of interest, to recuse himself or herself from discussing or voting on the matter, and to leave the room until after discussion and disposition of the matter is concluded. 2)Expands the amount of information that an HSRA member must disclose on their statement of economic interests (SEI). FISCAL EFFECT Minor absorbable costs to the Fair Political Practices Commission (FPPC) for enforcement of more stringent PRA provisions being applied to HSRA members, potentially offset by fine revenues. COMMENTS 1)Background . Currently the PRA subjects certain high-ranking public officials (known as "87200 filers"- Section 87200 of the Government Code) to the most expansive disclosure requirements under the PRA. This includes elected state officers, judges, members of the Public Utilities Commission, AB 41 Page 2 the FPPC, and the California Coastal Commission, members of county boards of supervisors, district attorneys, mayors, and members of city councils, among others. These officers must file periodic SEIs disclosing their investments, interests in real property, and income (including gifts), and an 87200 filer who has a financial interest in a governmental decision must do all of the following immediately prior to the consideration of a matter in which the filer has a conflict of interest: a) Publicly identify the financial interest that gives rise to the conflict of interest in detail sufficient to be understood by the public. b) Recuse himself or herself from discussing and voting on the matter. c) Leave the room until after the discussion, vote, and any other disposition of the matter is concluded, unless the matter is placed on the portion of the agenda reserved for uncontested matters. Members of the HSRA are currently included among public officials subject to PRA reporting and disclosure requirements somewhat less stringent than those outlined above, pursuant to Section 83700 of the Government Code. 2)Purpose . The author argues that HSRA members should be held to the same Section 87200 disclosure standards as are members of comparable state bodies. The author cites an October 2010 Los Angeles Times article finding that certain HSRA members received more than $10,000 - under state law, the threshold for disclosing sources of outside income - from the special-interest clients in recent years, yet the potential conflicts involving some of those clients have not always been recognized or publicly disclosed members at HSRA meetings. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081