BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1509
                                                                  Page  1

          Date of Hearing:  April 25, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                 AB 1509 (Hayashi) - As Introduced:  January 12, 2012
           
          SUBJECT  :  Political Reform Act of 1974: statement of economic 
          interests. 

           SUMMARY  :  Requires a notification to be posted on Internet Web 
          sites maintained by a city or county clerk identifying the 
          elected officers who are required to file statements of economic 
          interests (SEI) with that city or county.  Specifically,  this 
          bill  :   

          1)Requires each city clerk or county clerk who maintains an 
            Internet Web site to post on that Internet Web site a 
            notification including all of the following: 

             a)   A list of elected officers who are required to file 
               their SEIs with that city or county clerk, as specified;

             b)   A statement informing the public that a copy of the SEI 
               for specified filers may be obtained by visiting either the 
               Fair Political Practices Commission (FPPC) office, or the 
               office of the city clerk or county clerk where the SEI is 
               filed, including the physical address for that office; and,

             c)   An electronic link to the FPPC Internet Web site, and a 
               statement that certain SEIs for state and local government 
               agency officers may be available in electronic format by 
               visiting the FPPC's Internet Web site.

          2)Finds and declares that this bill furthers the purposes of the 
            Political Reform Act. 

          3)Declares that local agencies and school districts may be 
            reimbursed for state-mandated costs, as determined by the 
            Commission on State Mandates.

           EXISTING LAW  : 

          1)The Political Reform Act of 1974 requires persons holding 
            specified public offices to file disclosures of investments, 
            real property interests, and income within specified periods 








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            of assuming or leaving office, and annually while holding the 
            office.  Specified local elected officers file their 
            statements of economic interests with the city clerk or county 
            clerk, who makes and retains a copy of each statement and 
            forwards the original to the FPPC, which is the filing 
            officer.

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

          3)Requires candidates for, and current holders of, specified 
            elected or appointed state and local offices and designated 
            employees of state and local agencies to file SEIs disclosing 
            their financial interests, including investments, real 
            property interests, and income (including gifts).

           FISCAL EFFECT  :  Unknown.  This bill is keyed fiscal and a state 
          mandate.

           COMMENTS  :    

          1)This bill is intended to increase individual awareness of and 
            access to SEIs for certain state and local officials. The 
            measure is author-sponsored. 

          2)According to the author, "it can be difficult for interested 
            parties to review or obtain a copy of a local elected 
            official's Form 700.  In an effort to increase public 
            awareness and access to Form 700s, AB 1509 will require 
            certain notifications to be posted on the websites of city or 
            county clerks". 

            According to the FPPC, the Form 700 SEI is "an important means 
            for the official that files them, the media, and the public to 
            help gauge where potential conflicts of interest may exist. 
            These state mandated forms include information about the 
            sources of an official's income, investments, business 
            positions, real property holdings and gifts."  The FPPC's 
            website currently provides access only to the SEIs of state 
            constitutional officers, state legislators, and FPPC 
            commissioners. Some local ethics commissions, like the city 
            and county of San Francisco, provide online access to SEIs and 
            other filings as well. 
             








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            In practice, this bill will help increase awareness of the 
            public officials for whom SEIs are available, but it is 
            important to note that in many cases the SEI for local 
            officials may not be available online, and that accessing it 
            may require physically travelling to the city or county 
            clerk's office.  It is important to note that this requirement 
            applies only to websites maintained by the clerk's office - 
            not necessarily websites for the city or county as a whole. 

            As the bill moves forward, it could be strengthened by 
            expanding the mandate to include in the notification a link to 
            the website of any local agency that makes local official SEIs 
            available online, if applicable.  

          3)This bill amends the PRA, an initiative passed in 1974 that 
            created the FPPC and codified significant restrictions and 
            prohibitions on candidates, officeholders and lobbyists. 
            Legislative amendments to the PRA must further the purposes of 
            the initiative and require a two-thirds vote of both houses.
             
            4)Support arguments  :  It can be difficult for interested parties 
            to review or obtain a copy of a local elected official's Form 
            700.  In an effort to increase public awareness and access to 
            Form 700s, AB 1509 will require certain notifications to be 
            posted on the websites of city or county clerks.

           5)Opposition arguments  :  None on file.

          6)This bill was heard in the Elections and Redistricting 
            Committee on March 27, 2012, where it was approved on a 6-0 
            vote (consent calendar).
           




          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file








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          Analysis Prepared by  :    Hank Dempsey / L. GOV. / (916) 319-3958