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  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 repea   l 
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. 
   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. 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.   (a)    "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 two thousand dollars ($2,000) 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. 
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SECTION 1.   SEC. 2.   Section 82033 of
the Government Code is amended to read:
   82033.   (a)    "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. 
   (b) This section shall become operative on January 1, 2018. 
   SEC. 3.    Section 82034 of the   Government
Code   is amended to read: 
   82034.   (a)    "Investment" means any financial
interest in or security issued by a business entity, including, but
not limited to, 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 prior to 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 two thousand dollars
($2,000). The term "investment" does not include a time or demand
deposit in a financial institution, shares in a credit union, any
insurance policy, interest in a diversified mutual fund registered
with the Securities and Exchange Commission under the Investment
Company Act of 1940 or in a common trust fund created pursuant to
Section 1564 of the Financial Code, interest in a government
defined-benefit pension plan, or any 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. 
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 2.   SEC. 4.   Section 82034 of the
Government Code is amended to read:
   82034.   (a)    "Investment" means any financial
interest in, or security issued by, a business entity, 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. 
   (b) This section shall become operative on January 1, 2018. 
   SEC. 5.    Section 87103 of the   Government
Code   is amended to read: 
   87103.   (a)    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) 
    (1)  Any business entity in which the public official
has a direct or indirect investment worth two thousand dollars
($2,000) or more. 
   (b) 
    (2)  Any real property in which the public official has
a direct or indirect interest worth two thousand dollars ($2,000) or
more. 
   (c) 
    (3)  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 five hundred dollars ($500) or more in value provided or
promised to, received by, the public official within 12 months prior
to the time when the decision is made. 
   (d) 
    (4)  Any business entity in which the public official is
a director, officer, partner, trustee, employee, or holds any
position of management. 
   (e) 
    (5)  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 prior to 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. 
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 3.   SEC. 6.   Section 87103 of the
Government Code is amended to read:
   87103.   (a)    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) 
    (1)  Any business entity in which the public official
has a direct or indirect investment worth five thousand dollars
($5,000) or more. 
   (b) 
    (2)  Any real property in which the public official has
a direct or indirect interest worth ten thousand dollars ($10,000) or
more. 
   (c) 
    (3)  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) 
    (4)  Any business entity in which the public official is
a director, officer, partner, trustee, employee, or holds a position
of management. 
   (e) 
    (5)  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. 
   (b) This section shall become operative on January 1, 2018. 
   SEC. 7.    Section 87206 of the   Government
Code   is amended to read: 
   87206.   (a)    If an investment or an interest
in real property is required to be disclosed under this article, the
statement shall contain: 
   (a) 
    (1)  A statement of the nature of the investment or
interest. 
   (b) 
    (2)  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. 
   (c) 
    (3)  The address or other precise location of the real
property. 
   (d) 
    (4)  A statement whether the fair market value of the
investment or interest in real property equals or exceeds two
thousand dollars ($2,000) but does not exceed ten thousand dollars
($10,000), whether it exceeds ten thousand dollars ($10,000) but does
not exceed one hundred thousand dollars ($100,000), whether it
exceeds one hundred thousand dollars ($100,000) but does not exceed
one million dollars ($1,000,000), or whether it exceeds one million
dollars ($1,000,000). 
   (e) 
    (5)  In the case of a statement filed under Sections
87203 or 87204, if the investment or 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. 
   (f) 
    (6)  For purposes of disclosure under this article,
"interest in real property" does not include the principal residence
of the filer or any other property which the filer utilizes
exclusively as the personal residence of the filer. 
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 4.   SEC. 8.   Section 87206 of the
Government Code is amended to read:
   87206.   (a)    If an investment is required to
be disclosed under this article, the statement shall contain all of
the following: 
   (a) 
    (1)  A statement of the nature of the investment.

   (b) 
   (2)  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. 
   (c) 
    (3)  A statement indicating which of the following
represents the fair market value of the investment: 
   (1) 
    (A)  At least five thousand dollars ($5,000) but not
greater than ten thousand dollars ($10,000). 
   (2) 
    (B)  Greater than ten thousand dollars ($10,000) but not
greater than fifty thousand dollars ($50,000). 
   (3) 
    (C)  Greater than fifty thousand dollars ($50,000) but
not greater than one hundred thousand dollars ($100,000). 
   (4) 
    (D)  Greater than one hundred thousand dollars
($100,000) but not greater than two hundred fifty thousand dollars
($250,000). 
   (5) 
    (E)  Greater than two hundred fifty thousand dollars
($250,000) but not greater than five hundred thousand dollars
($500,000). 
   (6) 
    (F)  Greater than five hundred thousand dollars
($500,000) but not greater than one million dollars ($1,000,000).

   (7) 
    (G)  Greater than one million dollars ($1,000,000) but
not greater than two million dollars ($2,000,000). 
   (8) 
    (H)  Greater than two million dollars ($2,000,000).

   (d) 
    (4)  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. 
   (b) This section shall become operative on January 1, 2018. 
   SEC. 5.   SEC. 9.   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. 
   (c) This section shall become operative on January 1, 2018. 
   SEC. 10.    Section 87207 of the  
Government Code   is amended to read: 
   87207.  (a) If income is required to be reported under this
article, the statement shall contain, except as provided in
subdivision (b):
   (1) The name and address of each source of income aggregating five
hundred dollars ($500) 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 whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to each
source, was at least five hundred dollars ($500) but did not exceed
one thousand dollars ($1,000), whether it was in excess of one
thousand dollars ($1,000) but was not greater than ten thousand
dollars ($10,000), whether it was greater than ten thousand dollars
($10,000) but not greater than one hundred thousand dollars
($100,000), or whether it was greater than one hundred thousand
dollars ($100,000).
   (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) If 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) If 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 interest. 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. 
   (d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 6.   SEC. 11.   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   If  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. 
   (d) This section shall become operative on January 1, 2018. 
   SEC. 7.   SEC. 12.   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.   SEC. 13.   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.