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 : SB 801 Page 2 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, SB 801 Page 3 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 SB 801 Page 4 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