Political Reform Act of 1974: filing deadlines: emergency situations.

Plain English Breakdown

The bill summary does not provide specific details about penalties or enforcement mechanisms.

Political Reform Act: Emergency Filing Deadlines

The bill updates filing deadlines under emergency situations and restricts state employees from owning or controlling businesses regulated by their agencies, unless a waiver is granted.

What This Bill Does

• Restricts state agency employees from owning or controlling financial interests in business entities that are subject to the regulatory authority of the state agency or do business with it.
• Allows the head of a state agency to grant an employee a waiver if ownership or control of the financial interest is consistent with the act and the employee will not influence decisions related to their financial interest.
• Authorizes the Fair Political Practices Commission to extend filing deadlines for individuals affected by declared emergencies.
• Defines emergency situations as those proclaimed by the Governor or local governing bodies under specific laws.

Who It Names or Affects

• State agency employees
• Individuals required to file reports during emergencies
• The Fair Political Practices Commission

Terms To Know

Emergency situation

A condition declared by the Governor or local governing bodies under specific laws.

Financial interest

Ownership or control of a business entity that is regulated by or does business with a state agency.

Limits and Unknowns

• The bill does not specify the exact penalties for violating new restrictions on financial interests.
• It remains unclear how often these emergency extensions might be used in practice.

Official Summary Text

SB 401, as amended, Hurtado.
Political Reform Act of 1974:
state employees: financial interests.
filing deadlines: emergency situations.
The Political Reform Act of 1974 prohibits a public official, including an employee of a state agency, from using their official position to make, participate in making, or influence a governmental decision in which the official knows or has reason to know that the official has a financial interest, as specified. Any person who knowingly or willfully violates the act is guilty of a misdemeanor.
This bill would further prohibit an employee of a state agency from owning or controlling a financial interest in any business entity that is subject to the regulatory authority of the state agency, or that does business with the state agency. The bill would authorize the head of a state agency to grant an employee a waiver from this prohibition only upon a finding that ownership or control of the financial interest is otherwise consistent with the act
and that the employee will not make, participate in making, or attempt to influence a governmental decision in which the employee has a financial interest. By expanding the scope of an existing crime, 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.
Under the Political Reform Act of 1974, various individuals and entities, including candidates, committees that support candidates and ballot
measures, lobbyists, slate mailer organizations, and public officials, are required to periodically file certain statements and reports that disclose their financial activities. When an original statement or report is filed after the deadline for its filing under the act, the person responsible for making the filing is subject to a late filing penalty of $10 per day, as specified, in addition to any other penalties or remedies under the act.
This bill would authorize the Fair Political Practices Commission to extend any filing deadline established by the act for individuals that live in an area impacted by an emergency situation. The bill would define emergency situation to mean an emergency proclaimed by the Governor or a local governing body pursuant to a specified law.
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 of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.

Current Bill Text

Download Bill PDF