BILL ANALYSIS Ó
AB 10
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
10 (Gatto) - As Amended April 7, 2015
-----------------------------------------------------------------
|Policy |Elections and Redistricting |Vote:|6 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill makes several changes to the Political Reform Act
(PRA) regarding conflicts of interest. Specifically, this bill:
AB 10
Page 2
1)Increases the thresholds at which a public official's
financial interest can potentially create a conflict of
interest under the PRA, as follows:
a) From $2,000 to $10,000 for interests in real property;
b) From $2,000 to $5,000 for investments in a business
entity; and,
c) From $500 to $1,000 for sources of income, other than
gifts or specified loans.
2)Revises the monetary ranges that specified public officials or
candidates, when filing a statement of economic interests
(SEI), use to describe the value of their investments,
interests in real property, and income.
3)Requires a public official or candidate who is required to
disclose a business entity investment on his or her SEI
because the official or candidate is a director, officer,
partner, or trustee of the business entity, to provide a
thorough and detailed description of the business entity's
activities and disclose the names of all business partners who
share a financial interest in the business entity on the SEI,
based on criteria established by the Fair Political Practices
Commission (FPPC).
4)Requires a public official who holds an office listed in
Section 87200 of the Government Code to disclose, as
specified, on his or her SEI each governmental decision for
which a financial interest resulted in the official's
AB 10
Page 3
disqualification from making, participating in making, or in
any way attempting to use his or her official position to
influence a governmental decision.
5)Requires candidates who are not elected officials, and elected
officials for a year after leaving office, to report any
payment that is made at the behest of that person for a
legislative, governmental, or charitable purpose within 30
days following the date on which such payment or payments
equal or exceed $5,000 in the aggregate from the same source
in the same calendar year in which they are made.
FISCAL EFFECT:
Ongoing General Fund costs to the FPPC of about $250,000 for two
positions to draft implementing regulations, respond to
increased advice requests, drafting compliance materials,
redesign the Form 700 and informational materials, work with a
software vendor for electronic filing changes, and provide
education and outreach. Costs should diminish in a few years
following implementation.
COMMENTS:
Purpose. According to the author, "AB 10 will ensure that
California's public officials are more transparent in their
business, investment, and income disclosures, which will
AB 10
Page 4
further confirm that our trusted elected officials are
using their positions to serve all citizens equally."
The author indicates that AB 10 has five main components:
1)Modernizing the financial interest thresholds that necessitate
a public official excusing him or herself from a governmental
decision. (These thresholds have been updated only once since
1974.
2)Including additional middle tiers and upper tiers in the
financial disclosures on the FPPC's Form 700, which is
intended to provide a more accurate view of the financial
holdings and potential conflicts of interest.
3)Requiring a more thorough description of any businesses and
the names of any business partners.
4)Adding an additional disclosure to the Form 700 requiring
public officials to specify any instances in the previous year
where a financial interest has been cause for a recusal from
being involved with or making a governmental decision.
5)Extending the behested payment reporting requirements to those
candidates who are required to file a campaign statement and
to elected officials for one year after leaving elective
office.
AB 10
Page 5
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081