Bill Text: CA AB2823 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 2823	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2016
	AMENDED IN ASSEMBLY  MARCH 15, 2016

INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 19, 2016

   An act to amend 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.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2823, as amended, Gatto. Political Reform Act of 1974: economic
interest disclosure.
   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.
   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. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 82033 of the Government Code is amended to
read:
   82033.  "Interest in real property" includes any leasehold,
beneficial or ownership interest, or an option to acquire such an
interest in real property located in the jurisdiction owned directly,
indirectly, or beneficially by the public official, or other filer,
or his or her immediate family if the fair market value of the
interest is ten thousand dollars ($10,000) or more. Interests in real
property of an individual includes a pro rata share of interests in
real property of any business entity or trust in which the individual
or immediate family owns, directly, indirectly, or beneficially, a
10-percent interest or greater.
  SEC. 2.  Section 82034 of the Government Code is amended to read:
   82034.  "Investment" means any financial interest in, or security
issued by, a business entity,  including, but not limited to,
  including  common stock, preferred stock,
rights, warrants, options, debt instruments, and any partnership or
other ownership interest owned directly, indirectly, or beneficially
by the public official, or other filer, or his or her immediate
family, if the business entity or any parent, subsidiary, or
otherwise related business entity has an interest in real property in
the jurisdiction, or does business or plans to do business in the
jurisdiction, or has done business within the jurisdiction at any
time during the two years before the time any statement or other
action is required under this title. An asset shall not be deemed an
investment unless its fair market value equals or exceeds five
thousand dollars ($5,000). The term "investment" does not include a
time or demand deposit in a financial institution, shares in a credit
union, an insurance policy, interest in a diversified mutual fund
registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) or in a
common trust fund created pursuant to Section 1585 of the Financial
Code, interest in a government defined-benefit pension plan, or a
bond or other debt instrument issued by any government or government
agency. Investments of an individual includes a pro rata share of
investments of any business entity, mutual fund, or trust in which
the individual or immediate family owns, directly, indirectly, or
beneficially, a 10-percent interest or greater. The term "parent,
subsidiary, or otherwise related business entity" shall be
specifically defined by regulations of the commission.
  SEC. 3.  Section 87103 of the Government Code is amended to read:
   87103.  A public official has a financial interest in a decision
within the meaning of Section 87100 if it is reasonably foreseeable
that the decision will have a material financial effect,
distinguishable from its effect on the public generally, on the
official, a member of his or her immediate family, or on any of the
following:
   (a) Any business entity in which the public official has a direct
or indirect investment worth five thousand dollars ($5,000) or more.
   (b) Any real property in which the public official has a direct or
indirect interest worth ten thousand dollars ($10,000) or more.
   (c) Any source of income, except gifts or loans by a commercial
lending institution made in the regular course of business on terms
available to the public without regard to official status,
aggregating one thousand dollars ($1,000) or more in value provided
to, promised to, or received by the public official within 12 months
before the time when the decision is made.
   (d) Any business entity in which the public official is a
director, officer, partner, trustee, employee, or holds a position of
management.
   (e) Any donor of, or any intermediary or agent for a donor of, a
gift or gifts aggregating two hundred fifty dollars ($250) or more in
value provided to, received by, or promised to the public official
within 12 months before the time when the decision is made. The
amount of the value of gifts specified by this subdivision shall be
adjusted biennially by the commission to equal the same amount
determined by the commission pursuant to subdivision (f) of Section
89503.
   For purposes of this section, indirect investment or interest
means any investment or interest owned by the spouse or dependent
child of a public official, by an agent on behalf of a public
official, or by a business entity or trust in which the official, the
official's agents, spouse, and dependent children own directly,
indirectly, or beneficially a 10-percent interest or greater.
  SEC. 4.  Section 87206 of the Government Code is amended to read:
   87206.  If an investment is required to be disclosed under this
article, the statement shall contain all of the following:
   (a) A statement of the nature of the investment.
   (b)  (1)    The name of the
business entity in which each investment is held, and a general
description of the business activity in which the business entity is
engaged. 
   (2) The address or other precise location of the real property.

   (c) A statement indicating which of the following represents the
fair market value of the investment:
   (1) At least five thousand dollars ($5,000) but not greater than
ten thousand dollars ($10,000).
   (2) Greater than ten thousand dollars ($10,000) but not greater
than fifty thousand dollars ($50,000).
   (3) Greater than fifty thousand dollars ($50,000) but not greater
than one hundred thousand dollars ($100,000).
   (4) Greater than one hundred thousand dollars ($100,000) but not
greater than two hundred fifty thousand dollars ($250,000).
   (5) Greater than two hundred fifty thousand dollars ($250,000) but
not greater than five hundred thousand dollars ($500,000).
   (6) Greater than five hundred thousand dollars ($500,000) but not
greater than one million dollars ($1,000,000).
   (7) Greater than one million dollars ($1,000,000) but not greater
than two million dollars ($2,000,000).
   (8) Greater than two million dollars ($2,000,000).
   (d) In the case of a statement filed under Section 87203 or 87204,
if the investment was partially or wholly acquired or disposed of
during the period covered by the statement, the date of acquisition
or disposal.
  SEC. 5.  Section 87206.5 is added to the Government Code, to read:
   87206.5.  (a) If an interest in real property is required to be
disclosed under this article, the statement shall contain all of the
following:
   (1) A statement of the nature of the interest.
   (2) The address or other precise location of the real property.
   (3) A statement indicating which of the following represents the
fair market value of the interest in real property:
   (A) At least ten thousand dollars ($10,000) but not greater than
one hundred thousand dollars ($100,000).
   (B) Greater than one hundred thousand dollars ($100,000) but not
greater than two hundred fifty thousand dollars ($250,000).
   (C) Greater than two hundred fifty thousand dollars ($250,000) but
not greater than five hundred thousand dollars ($500,000).
   (D) Greater than five hundred thousand dollars ($500,000) but not
greater than seven hundred fifty thousand dollars ($750,000).
   (E) Greater than seven hundred fifty thousand dollars ($750,000)
but not greater than one million dollars ($1,000,000).
   (F) Greater than one million dollars ($1,000,000) but not greater
than two million dollars ($2,000,000).
   (G) Greater than two million dollars ($2,000,000).
   (4) In the case of a statement filed under Section 87203 or 87204,
if the interest in real property was partially or wholly acquired or
disposed of during the period covered by the statement, the date of
acquisition or disposal.
   (b) For purposes of disclosure under this article, "interest in
real property" does not include the principal residence of the filer
or any other property that the filer uses exclusively as the personal
residence of the filer.
  SEC. 6.  Section 87207 of the Government Code is amended to read:
   87207.  (a) Except as provided in subdivision (b), if income is
required to be reported under this article, the statement shall
contain all of the following:
   (1) The name and address of each source of income aggregating one
thousand dollars ($1,000) or more in value, or fifty dollars ($50) or
more in value if the income was a gift, and a general description of
the business activity, if any, of each source.
   (2) A statement indicating which of the following represents the
aggregate value of income from each source, or in the case of a loan,
the highest amount owed to each source:
   (A) At least one thousand dollars ($1,000) but not greater than
ten thousand dollars ($10,000).
   (B) Greater than ten thousand dollars ($10,000) but not greater
than fifty thousand dollars ($50,000).
   (C) Greater than fifty thousand dollars ($50,000) but not greater
than one hundred thousand dollars ($100,000).
   (D) Greater than one hundred thousand dollars ($100,000) but not
greater than two hundred fifty thousand dollars ($250,000).
   (E) Greater than two hundred fifty thousand dollars ($250,000) but
not greater than five hundred thousand dollars ($500,000).
   (F) Greater than five hundred thousand dollars ($500,000).
   (3) A description of the consideration, if any, for which the
income was received.
   (4) In the case of a gift, the amount and the date on which the
gift was received, and the travel destination for purposes of a gift
that is a travel payment, advance, or reimbursement.
   (5) In the case of a loan, the annual interest rate, the security,
if any, given for the loan, and the term of the loan.
   (b) When the filer's pro rata share of income to a business
entity, including income to a sole proprietorship, is required to be
reported under this article, the statement shall contain:
   (1) The name, address, and a general description of the business
activity of the business entity.
   (2) The name of every person from whom the business entity
received payments if the filer's pro rata share of gross receipts
from that person was equal to or greater than ten thousand dollars
($10,000) during a calendar year.
   (c) When a payment, including an advance or reimbursement, for
travel is required to be reported pursuant to this section, it may be
reported on a separate travel reimbursement schedule, which shall be
included in the filer's statement of economic interests. A filer who
chooses not to use the travel schedule shall disclose payments for
travel as a gift, unless it is clear from all surrounding
circumstances that the services provided were equal to or greater in
value than the payments for the travel, in which case the travel may
be reported as income.
  SEC. 7.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 8.  The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.