BILL ANALYSIS
SB 1271
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Date of Hearing: June 22, 2010
ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
Paul Fong, Chair
SB 1271 (Romero) - As Amended: April 5, 2010
SENATE VOTE : 30-0
SUBJECT : Political Reform Act of 1974: conflict of interest
codes.
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
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
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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.
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EXISTING LAW :
1)Requires each state and local government agency to adopt and
promulgate a conflict of interest code.
2)Requires each conflict of interest code to enumerate the
positions within the agency which involve the making or
participation in the making of decisions which may foreseeably
have a material effect on any financial interest and for each
such enumerated position, the specific types of investments,
business positions, interests in real property, or sources of
income which are reportable, except as specified. Requires
any person holding a position that is enumerated in an
agency's conflict of interest code to file periodic SEIs.
3)Requires specified public officials, including officials who
manage public investments, to file SEIs, but does not require
such officials to be enumerated in the agency's conflict of
interest code.
4)Creates the Fair Political Practices Commission (FPPC), and
makes it responsible for the impartial, effective
administration and implementation of the Political Reform Act
(PRA).
FISCAL EFFECT : According to the Senate Appropriations
Committee, the California State Teachers' Retirement System and
the California Public Employees' Retirement System indicate
minor, absorbable costs as does the FPPC. Although the bill
constitutes a state-reimbursable mandated program, it is not
likely that costs to local pension systems will exceed $50,000.
COMMENTS :
1)Purpose of the Bill : 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.
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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.
2)Arguments in Support : The sponsor of this bill, the American
Federation of State, County and Municipal Employees (AFSCME),
AFL-CIO, writes:
AFSCME believes in full transparency and disclosure for a
public retirement board, commission, or agency. It is
vitally important during this time of economic hardship
that all public funds are handled responsibly and invested
with the best interest of the state in mind. SB 1271 would
require an appendix be attached to the public retirement
board conflict of interest code that lists all individuals
on the board, commission, or agency that are required to
file a statement of economic interests, regarding public
investments. It is always sound practices to understand,
and make public, each possible financial interest of any
public retirement board member.
3)Political Reform Act of 1974 : California voters passed an
initiative, Proposition 9, in 1974 that created the FPPC and
codified significant restrictions and prohibitions on
candidates, officeholders and lobbyists. That initiative is
commonly known as the 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.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO (sponsor)
Association of California Water Agencies
California State Teachers' Retirement System
Fair Political Practices Commission
Opposition
Department of Finance
Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094
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