BILL ANALYSIS �
AB 2162
Page 1
GOVERNOR'S VETO
AB 2162 (Portantino)
As Introduced February 23, 2012
2/3 vote
ELECTIONS 7-0 APPROPRIATIONS 16-0
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|Ayes:|Fong, Donnelly, Bonilla, |Ayes:|Fuentes, Blumenfield, |
| |Hall, Logue, Mendoza, | |Bradford, Charles |
| |Swanson | |Calderon, Campos, Davis, |
| | | |Donnelly, Gatto, Hall, |
| | | |Hill, Lara, Mitchell, |
| | | |Nielsen, Norby, Solorio, |
| | | |Wagner |
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|ASSEMBLY: |72-0 |(May 3, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
| | | | | | |
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Original Committee Reference: E. & R.
SUMMARY : Revises the dollar thresholds that are used to report
the value of investments, real property interests, and income,
when a public official files a Statement of Economic Interest
(SEI). Specifically, this bill :
1)Requires specified public officials or candidates, when
required to report an investment or interest in real property
on an SEI, to disclose the fair market value of the investment
or interest in real property by selecting one of the following
thresholds:
a) At least $2,000 but not greater than $25,000;
b) More than $25,000 but not greater than $100,000;
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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 thresholds:
a) At $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,
j) More than $10 million.
FISCAL EFFECT : According to the Assembly Appropriations
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Committee, minor absorbable costs to the Fair Political
Practices Commission (FPPC) to modify the SEI forms to reflect
the new reporting increments.
COMMENTS : According to the author, "The Political Reform Act of
1974 �PRA] 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 Act requires the
disclosure 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. AB 2162 will revise the dollar amounts associated
with these ranges to provide for 8 total ranges of fair market
value of investments and real property interest and 10 total
ranges of aggregate value of income."
As part of the PRA's 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 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.
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.
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GOVERNOR'S VETO MESSAGE :
"The law already requires public officials to disclose their
income and investments with enough particularity so that
conflicts of interest can be identified. I am not convinced
that this bill will provide more useful information to the
public."
Analysis Prepared by: Nichole Becker / E. & R. / (916)
319-2094
FN: 0005997