BILL ANALYSIS �
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THIRD READING
Bill No: AB 2162
Author: Portantino (D)
Amended: As introduced
Vote: 27
SENATE ELECTIONS & CONST. AMEND. COMM. : 5-0, 7/3/12
AYES: Correa, La Malfa, Gaines, Lieu, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/3/12 (Consent) - See last page for
vote
SUBJECT : Political Reform Act: economic interest
disclosure
SOURCE : Author
DIGEST : This bill amends the Political Reform Act (PRA)
by adjusting the dollar increments for investments and
income that are to be used by public officials in filing a
Statement of Economic Interest (SEI).
ANALYSIS : Existing law identifies certain elected and
other high-level state and local officials, as well as
candidates for those positions, who must 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-generally when a
position entails the making or participation in the making
CONTINUED
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of governmental decisions that may foreseeably have a
material financial effect on the decision maker's financial
interests. The Fair Political Practices Commission (FPPC)
has estimated that the number of SEI filers exceeds 200,000
officials and employees statewide.
This bill:
1. Requires specified public officials or candidates, when
required to report an investment or interest in real
property, to disclose the fair market value by selecting
one of the following increments:
A. At least $2,000 but not greater than $25,000;
B. More than $25,000 but not greater than $100,000;
C. More than $100,000 but not greater than $250,000;
D. More than$250,000 but not greater than $500,000;
E. More than $500,000 but not greater than $1
million;
F. More than $1 million but not greater than $5
million;
G. More than $5 million but not greater than $10
million; or,
H. More than $10 million.
2. Requires specified public officials or candidates, when
required to report a source of income or loan on an SEI,
to disclose the aggregate value of income from the
source, or in the case of a loan, the highest amount
owed to the source, by selecting one of the following
increments:
A. At least $500 but not greater than $1,000;
B. More than $1,000 but not greater than $10,000;
C. More than $10,000 but not greater than $25,000;
D. More than $25,000 but not greater than $100,000;
E. More than $100,000 but not greater than $250,000;
F. More than $250,000 but not greater than $500,000;
G. More than $500,000 but not greater than $1
million;
H. More than $1 million but not greater than $5
million;
I. More than $5 million but not greater than $10
million; or
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J. More than $10 million.
Comments
Purpose . The author's office argues that, due to inflation
and economic changes, the current thresholds are not
adequately serving the purposes for which the PRA was
passed and therefore need to be changed.
PRA . In 1974, the voters passed Proposition 9, commonly
known as the PRA, in which created the FPPC and codified
significant restrictions and prohibitions on candidates,
officeholders and lobbyists. 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.
According to the author's office, the PRA of 1974 requires
persons holding specified public offices to file
disclosures of investments, real property interests, and
income within specified periods of assuming or leaving
office, and annually while holding the office. The PRA
requires the disclosures to include a statement indicating,
within a specified value range, the fair market value of
investments or interests in real property and the aggregate
value of income received from a source.
Currently there are only four total ranges of fair market
value of investments and real property interests and four
total ranges of aggregate value of income. These values
have not been changed since the inception of the PRA in
1974. These ranges, due to inflation and economic changes,
are not adequately serving the purposes for which the PRA
was passed.
This bill was introduced to make changes that more
accurately reflect the needs of the public to understand
where potential conflicts of interest might arise for
public officials and required reporting public employees.
This bill will revise the dollar amounts associated with
these ranges to provide for eight total ranges of fair
market value of investments and real property interests and
10 total ranges of aggregate value of income.
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Prior Legislation
AB 1391 (Leno, 2006) which would have revised the dollar
thresholds for the aggregate value of income from each
source that filers would be required to report on their
SEIs, among other provisions, died on the Senate Inactive
File.
AB 2432 (Montanez, 2006) which was substantially similar,
was never heard in any committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee, minor
absorbable costs to the FPPC to modify the SEI forms to
reflect the new reporting increments.
ASSEMBLY FLOOR : 72-0, 5/3/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman,
Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma,
Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
P�rez, Portantino, Silva, Skinner, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Yamada, John A.
P�rez
NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger
Hern�ndez, Jones, Smyth, Williams
DLW:k 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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