Bill Text: CA AB2823 | 2015-2016 | Regular Session | Amended
Bill Title: Public records.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee: Without further action pursuant to Joint Rule 62(a). [AB2823 Detail]
Download: California-2015-AB2823-Amended.html
BILL NUMBER: AB 2823 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 21, 2016
AMENDED IN ASSEMBLY MAY 16, 2016
AMENDED IN ASSEMBLY MARCH 31, 2016
AMENDED IN ASSEMBLY MARCH 15, 2016
INTRODUCED BY Assembly Member Gatto
FEBRUARY 19, 2016
An act to amend and repeal Sections 82033, 82034, 87103,
87206, and 87207 of, and to add Section 87206.5 to, the Government
Code, relating to the Political Reform Act of 1974.
Section 6254.26 of the Government Code, relating to public records.
LEGISLATIVE COUNSEL'S DIGEST
AB 2823, as amended, Gatto. Political Reform Act of 1974:
economic interest disclosure. Public records.
The California Public Records Act requires that public records, as
defined, be open to inspection at all times during the office hours
of a state or local agency and that every person has a right to
inspect any public record, with specified exceptions. The act exempts
the disclosure of specific records regarding alternative investments
in which public investment funds invest, unless the information has
already been publicly released by the keeper of the information,
including alternative investment agreements and all related
documents.
This bill would require a state agency to disclose the cover page
and signature block of a proposed alternative investment agreement
and certain provisions in the alternative investment agreement or
related documents that govern the reclaiming of money or benefits
under stated conditions.
The Political Reform Act of 1974 prohibits a public official at
any level of state or local government from making, participating in
making, or in any way attempting to use his or her official position
to influence a governmental decision in which the public official
knows or has reason to know that he or she has a financial interest.
A public official has a financial interest in a governmental decision
if it is reasonably foreseeable that the decision will have a
material financial effect, distinguishable from its effect on the
public generally, on a business entity in which the public official
has a direct or indirect investment worth $2,000 or more, real
property in which the public official has a direct or indirect
interest worth $2,000 or more, or a source of income aggregating $500
or more in value within 12 months before the time when the decision
is made.
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 of assuming
or leaving office, and annually while holding the office. The act
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.
This bill would increase the thresholds at which a public official
has a disqualifying financial interest in a source of income from
$500 to $1,000, in investments in business entities from $2,000 to
$5,000, and in interests in real property from $2,000 to $10,000.
This bill would make conforming adjustments to the thresholds at
which income, investments, and interests in real property must be
disclosed on a public official's statement of economic interests. The
bill would also revise the dollar amounts associated with the value
ranges for reporting the value of economic interests.
This bill would delay the operation of these provisions to January
1, 2018.
Existing law makes a knowing or willful violation of the act a
misdemeanor and subjects offenders to criminal penalties.
By creating additional crimes, this bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3 majority . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6254.26 of the
Government Code is amended to read:
6254.26. (a) Notwithstanding any provision of this chapter or
other law, the following records regarding alternative investments in
which public investment funds invest shall not be subject to
disclosure pursuant to this chapter, unless the information has
already been publicly released by the keeper of the information:
(1) Due diligence materials that are proprietary to the public
investment fund or the alternative investment vehicle.
(2) Quarterly and annual financial statements of alternative
investment vehicles.
(3) Meeting materials of alternative investment vehicles.
(4) Records containing information regarding the portfolio
positions in which alternative investment funds invest.
(5) Capital call and distribution notices.
(6) Alternative investment agreements and all related
documents. documents, except that the following
records shall be subject to disclosure by a state agency pursuant to
this chapter:
(A) The cover page and signature block of the proposed alternative
investment agreement.
(B) All provisions in an alternative investment agreement or
related documents that govern the reclaiming of money or benefits
under stated conditions, including, but not limited to, provisions
that have the effect of allowing the external manager or general
partner to pay back an amount less than the full cost of the initial
payment being reimbursed, including, but not limited to, provisions
necessary to understand how recovery is to operate and all defined
terms related to or affecting recovery.
(b) Notwithstanding subdivision (a), the following information
contained in records described in subdivision (a) regarding
alternative investments in which public investment funds invest shall
be subject to disclosure pursuant to this chapter and shall not be
considered a trade secret exempt from disclosure:
(1) The name, address, and vintage year of each alternative
investment vehicle.
(2) The dollar amount of the commitment made to each alternative
investment vehicle by the public investment fund since inception.
(3) The dollar amount of cash contributions made by the public
investment fund to each alternative investment vehicle since
inception.
(4) The dollar amount, on a fiscal yearend basis, of cash
distributions received by the public investment fund from each
alternative investment vehicle.
(5) The dollar amount, on a fiscal yearend basis, of cash
distributions received by the public investment fund plus remaining
value of partnership assets attributable to the public investment
fund's investment in each alternative investment vehicle.
(6) The net internal rate of return of each alternative investment
vehicle since inception.
(7) The investment multiple of each alternative investment vehicle
since inception.
(8) The dollar amount of the total management fees and costs paid
on an annual fiscal yearend basis, by the public investment fund to
each alternative investment vehicle.
(9) The dollar amount of cash profit received by public investment
funds from each alternative investment vehicle on a fiscal year-end
basis.
(c) For purposes of this section, the following definitions shall
apply:
(1) "Alternative investment" means an investment in a private
equity fund, venture fund, hedge fund, or absolute return fund.
(2) "Alternative investment vehicle" means the limited
partnership, limited liability company, or similar legal structure
through which the public investment fund invests in portfolio
companies.
(3) "Portfolio positions" means individual portfolio investments
made by the alternative investment vehicles.
(4) "Public investment fund" means any public pension or
retirement system, and any public endowment or foundation. All matter
omitted in this version of the bill appears in the bill as amended
in the Assembly, May 16, 2016. (JR11)
