BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 801
                                                                  Page  1

          Date of Hearing:   June 21, 2011

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                     SB 801 (Kehoe) - As Amended:  June 13, 2011

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Political Reform Act of 1974: statement of economic 
          interests.

           SUMMARY  :   Requires an original or a copy of any statement of 
          economic interests (SEI) filed by an appointee to a state board, 
          commission, or similar multimember body of the state to be filed 
          with the Fair Political Practices Commission (FPPC).  Revises 
          and streamlines the process by which copies of SEIs are filed 
          with the FPPC by specified persons and state elected officers.  
          Specifically,  this bill  :

          1)Requires persons appointed to state boards, commissions, or 
            similar multimember bodies of the state, that are not already 
            specified under current law, to file original SEIs with the 
            respective board, commission or body. Requires the original 
            SEI to be handled as set forth in the conflict-of-interest 
            code of the respective board, commission, or body.  Provides 
            that if the respective board, commission, or body is not 
            required to send the original to the FPPC, it shall make a 
            copy and forward it to the FPPC.

          2)Deletes requirements in current law that copies of SEIs from 
            statewide elected officers and candidates for statewide 
            elective office be sent to the Secretary of State, the 
            Registrar-Recorder of Los Angeles County, and the Clerk of the 
            City and County of San Francisco.

          3)Deletes requirements in current law that copies of SEIs from 
            members of the Legislature, members of the State Board of 
            Equalization, and candidates for those offices, be sent to the 
            Secretary of State, the elections official of the county that 
            contains the largest percentage of registered voters in the 
            district that the officeholder represents or candidate seeks 
            nomination, and the elections official of the county in which 
            the officeholder or candidate resides.
             
           EXISTING LAW  :








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          1)Creates the FPPC, and makes it responsible for the impartial, 
            effective administration and implementation of the Political 
            Reform Act of 1974 (PRA).

          2)Identifies certain high-ranking public officials, who are 
            subject to the most expansive disclosure requirements under 
            the PRA.  Requires these officials to file periodic SEIs 
            disclosing investments, interests in real property, and income 
            (including gifts).

          3)Requires every state and local governmental agency to adopt 
            and promulgate a Conflict of Interest Code.  Requires each 
            Conflict of Interest Code to include a specific enumeration of 
            the positions within the agency that involve the making or 
            participation in the making of decisions which may foreseeably 
            have a material effect on any financial interest.  Requires 
            each person who holds such an enumerated position to file 
            periodic SEIs disclosing his or her financial interests in 
            accordance with the provisions of the Conflict of Interest 
            Code.

          4)Specifies the manner in which original SEIs are filed and the 
            entities to whom copies of SEIs are required to be sent for 
            specific office holders and candidates, including, but not 
            limited to, statewide elected officers, members of the Public 
            Utilities Commission, judges and court commissioners, heads of 
            local government agencies, and designated employees of the 
            Legislature.

          5)Prohibits a public official at any level of state or local 
            government from making, participating in the making, or in any 
            way attempting to use his or her official position to 
            influence a governmental decision in which the official knows 
            or has reason to know that he or she has a financial interest, 
            as defined.

           FISCAL EFFECT  :   Unknown.  State-mandated local program; 
          contains a crimes and infractions disclaimer.

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author: 

               The Political Reform Act of 1974 (PRA), among other things, 








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               established a detailed process to protect against 
               intentional and accidental conflicts of interest among 
               state and local elected leaders, political appointees and 
               key staff members.  In order to further the purposes of the 
               PRA, it is important to maximize conflict of interest 
               oversight policies regarding political appointees of the 
               governor and legislature to boards, commissions and similar 
               multimember bodies of the state.  Appointees of the 
               legislature and governor often serve in sensitive positions 
               where they initiate, make or are asked to approve financial 
               decisions regarding the use of public funds?

               SB 801 furthers the goals and purposes of the PRA by 
               ensuring that the Fair Political Practices Commission 
               receives either an original or copy of all Statements of 
               Economic Interests (SEIs) filed by governor or legislative 
               appointees to the entities named above.  The FPPC would 
               provide greater strength for the PRA by disseminating SEIs 
               that it receives pursuant to this bill upon the request of 
               interested persons or groups and will be able to review 
               those filings at the Commission's discretion.  

           2)The Other Guys  :  As noted above, current law specifies the 
            manner in which SEIs are required to be filed by most public 
            officials.  Generally, specified elected state, county, and 
            city officers, as well as members of certain state licensing 
            or regulatory boards, bureaus, or commissions are required to 
            file their SEIs with their respective agencies or their 
            county/city clerks, who are required to make and retain a copy 
            and forward the original to the FPPC, who acts as the filing 
            officer.  Most other individuals who are required to file SEIs 
            must file the original SEIs with their agencies or with the 
            agencies' code reviewing bodies as provided by the agencies' 
            conflict of interest codes.  This bill requires the original 
            or a copy of any SEI filed by a public officer who is 
            appointed to a position on a state board, commission or 
            similar multimember body to be sent to the FPPC.

           3)Consolidated Information  :  Given that the appointed officers 
            affected by this bill are already required to complete and 
            file SEIs with their respective agencies, the only changes 
            this bill is making to current law is the requirement that 
            these agencies forward a copy of SEIs to the FPPC, and 
            deleting requirements that copies of SEIs from statewide 
            elected officials be sent to specified locations.  According 








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            to the author, now that the FPPC is posting SEIs on its 
            website, the need to file copies in multiple locations is 
            diminished.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Fair Political Practices Commission
           
            Opposition 
           
          None on file.

          Analysis Prepared by  :    Maria Garcia / E. & R. / (916) 319-2094