BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON ELECTIONS 
                         AND CONSTITUTIONAL AMENDMENTS
                           Senator Lou Correa, Chair


          BILL NO:   AB 1509               HEARING DATE:    6/19/12
          AUTHOR:    HAYASHI               ANALYSIS BY:     D. CHESIN
          AMENDED:   AS INTRODUCED 
          FISCAL:    YES
          
                                     SUBJECT

           Political Reform Act: statement of economic interests
           
                                  DESCRIPTION  
          
           Existing law  requires specified candidates, officeholders, 
          state and local officials, and designated employees of 
          state and local agencies to file periodic statements of 
          economic interests (SEIs or Form 700s) which publicly 
          disclose their financial interests, including investments, 
          real property interests, and income (including gifts).

           Existing law  provides for a pilot project which permits Los 
          Angeles, Merced, Orange, Santa Clara, Stanislaus, and 
          Ventura counties and the City of Long Beach to permit the 
          electronic filing of an SEI in accordance with regulations 
          adopted by the Fair Political Practices Commission (FPPC).  
          The pilot project began on January 1, 2009 and will end on 
          December 31, 2012.

           This bill  provides that each city clerk or county clerk who 
          maintains an Internet
          Web site shall post on that Internet Web site a 
          notification that includes all of the following:

             A list of the specified elected officers who file SEIs 
             with that city clerk or county.

             A statement that copies of the SEIs filed by those 
             elected officers may be obtained by visiting the offices 
             of the FPPC or the relevant city clerk or county clerk, 
             including the physical addresses for those offices.

             A link to the FPPC's Internet Web site and a statement 
             that SEIs for some state and local government agency 









             elected officers may be available in an electronic 
             format on the FPPC's Internet Web site.

                                    BACKGROUND  
          
           Statements of Economic Interests  .  As part of the Political 
          Reform Act's (PRA) comprehensive scheme to prevent 
          conflicts of interest by state and local public officials, 
          existing law identifies certain elected and other 
          high-level state and local officials who must file SEIs.  
          Similarly, candidates for those positions must also file 
          SEIs.  Other state and local public officials and employees 
          are required to file SEIs if the position they hold is 
          designated in an agency's conflict of interest code.  A 
          position is designated in an agency's conflict of interest 
          code when the position entails the making or participation 
          in the making of governmental decisions that may 
          foreseeably have a material financial effect on the 
          decision maker's financial interests.  While the exact 
          number of people that are required to file SEIs is unknown, 
          the FPPC has estimated that the number exceeds 200,000 
          officials and employees statewide.

          The information that must be disclosed on an SEI, and the 
          location at which an SEI is filed, varies depending on the 
          position held by the individual who is required to file an 
          SEI.  Although there are some exceptions, individuals who 
          are required to file an SEI typically must file that 
          document with the agency of which they are an elected 
          official or by which they are employed.  In some cases, 
          original SEIs or copies thereof are filed with the FPPC.  
           
                                     COMMENTS  
          
            1. 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. 

            2. Just Names, No SEIs  .  This measure requires that 
             Internet Web sites maintained by a city clerk, or county 
             clerk, identify which elected officers are required to 
          AB 1509 (HAYASHI)                                     Page 
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             file SEIs in their respective jurisdictions but does not 
             require the actual SEI to be made available 
             electronically.  

                                   PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:  6-0
          Assembly Local Government Committee:  9-0
          Assembly Appropriations Committee: 17-0
          Assembly Floor:                         75-0
                                         
                                   POSITIONS  

          Sponsor: Author

           Support: Fair Political Practices Commission
                    League of Women Voters of California

           Oppose:  None received























          AB 1509 (HAYASHI)                                     Page 
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