The Political Reform Act of 1974 requires specified public officials to file statements disclosing their investments and interests in real property on the date they assume office, and income received during the 12 months before assuming office, and to file subsequent statements at intervals specified by regulations of the Fair Political Practices Commission and upon leaving office.

This bill would also require those public officials to disclose arrangements for prospective employment according to specified deadlines. The bill would define arrangement for prospective employment as an agreement pursuant to which a prospective employers offer of employment has been accepted by the prospective employee.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts 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.

A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating new disclosure requirements and therefore creating new crimes under the act, the 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 requires specified public officials to file statements disclosing their investments and interests in real property on the date they assume office, and income received during the 12 months before assuming office, and to file subsequent statements at intervals specified by regulations of the Fair Political Practices Commission and upon leaving office.

This bill would also require those public officials to disclose arrangements for prospective employment according to specified deadlines. The bill would define arrangement for prospective employment as an agreement pursuant to which a prospective employers offer of employment has been accepted by the prospective employee.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts 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.

A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating new disclosure requirements and therefore creating new crimes under the act, the 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 requires specified public officials to file statements disclosing their investments and interests in real property on the date they assume office, and income received during the 12 months before assuming office, and to file subsequent statements at intervals specified by regulations of the Fair Political Practices Commission and upon leaving office.

This bill would also require those public officials to disclose arrangements for prospective employment according to specified deadlines. The bill would define arrangement for prospective employment as an agreement pursuant to which a prospective employers offer of employment has been accepted by the prospective employee.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts 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.

A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating new disclosure requirements and therefore creating new crimes under the act, the 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 requires specified public officials to file statements disclosing their investments and interests in real property on the date they assume office, and income received during the 12 months before assuming office, and to file subsequent statements at intervals specified by regulations of the Fair Political Practices Commission and upon leaving office. The act requires each public agency to adopt a conflict of interest code that requires designated employees to file statements disclosing their business positions, investments, interests in real property, and income, according to specified deadlines.

This bill would also require those public officials to disclose arrangements for prospective employment according to specified deadlines, and would require public agencies conflict of interest codes to include similar disclosure requirements for designated employees. deadlines. The bill would define arrangement for prospective employment as an agreement pursuant to which a prospective employers offer of employment has been accepted by the prospective employee.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts 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.

A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating new disclosure requirements and therefore creating new crimes under the act, the 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 provides for the comprehensive regulation of political campaigns, lobbying, and other matters relating to governmental ethics and elections. The act establishes the Fair Political Practices Commission, which has the primary responsibility for the impartial, effective administration and implementation of the act.

This bill would state the intent of the Legislature to enact legislation relating to the Fair Political Practices Commission.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1286

Author:(Boerner)

As Amended Ver:July 2, 2025

2/3 vote

SUMMARY

Requires certain public officials to disclose an arrangement for prospective employment on an official's statement of economic interests (SEI), also referred to as a Form 700.

Senate Amendments

Clarify that all elected, appointed, and nominated officials with high-level decision-making authority have the same reporting deadlines, and disclose the same prospective employment information on their SEIs.

COMMENTS

As part of the Political Reform Act's (PRA) 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 (commonly referred to as a Form 700). 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 required to be 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.

The PRA places several restrictions on the activities of public officials who are leaving governmental employment. For instance, the PRA prohibits all public officials from making, participating in making, or influencing a governmental decision that directly relates to a prospective employer. Once a public official is employed and begins receiving income from the employer, they are prohibited from making or participating in a governmental decision that has a material financial effect on the employer as a source of income. Sources of income and business positions held are disclosed on the Form 700. However, an official is not required to publicly disclose whether, or on what date, the official accepts an offer for employment. Thus, it may be difficult for the public or the Fair Political Practices Commission (FPPC) to determine if a public official was making governmental decisions that benefit, or otherwise involve, the future employer after the official has accepted the job offer. This bill requires certain officials with high-level decision-making authority to disclose an arrangement for prospective employment on the official's Form 700, including the date the official accepted the job offer.

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.

The Senate amendments clarify that all elected, appointed, and nominated officials with high-level decision-making authority have the same reporting deadlines, and disclose the same prospective employment information on their SEIs. The bill, as amended in the Senate, is generally consistent with Assembly actions.

According to the Author

"Government transparency is important to maintain the public's trust and AB 1286 will close a reporting gap that would require additional disclosure from public officials leaving office. Presently, the Political Reform Act forbids officials from participating in decisions that affect their future employers, as it would create a conflict of interest. However, public officials are not required to disclose when they accept a future job offer, creating an opportunity for those in power to make decisions relating to their future employer without the public's knowledge. By adding prospective employment disclosure to Form 700s, AB 1286 closes this gap, creating transparency for the public and allowing for the monitoring and investigating of ethical violations that occur when public officials make decisions that affect their future employers before leaving office."

Arguments in Support

In support of this bill, the League of Women Voters of California, writes: "The bill would close an important gap in disclosure requirements. When an official has made arrangements for future employment, a conflict of interest may arise if the official has occasion to act on matters which could impact the employer's interests. This is parallel to the conflicts which can arise from the officials' real estate or other investments – which must be disclosed under current law."

Arguments in Opposition

None received.

FISCAL COMMENTS

According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

VOTES:

ASM ELECTIONS: 7-0-0

YES: Pellerin, Macedo, Bennett, Berman, Solache, Stefani, Tangipa

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Solache, Ta, Alanis

ABS, ABST OR NV: Pellerin

ASSEMBLY FLOOR: 77-0-2

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Bains, Ellis

SENATE FLOOR: 35-0-5

YES: Allen, Archuleta, Arreguín, Ashby, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Pérez, Richardson, Rubio, Seyarto, Smallwood‑Cuevas, Stern, Strickland, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Alvarado-Gil, Becker, Padilla, Reyes, Umberg

UPDATED

VERSION: July 2, 2025

CONSULTANT: Nichole Becker / ELECTIONS / (916) 319-2094 FN: 0001158

 CONSENT  

Bill No: AB 1286

Author: Boerner (D)

Amended: 7/2/25 in Senate

Vote: 27

SENATE ELECTIONS & C.A. COMMITTEE: 5-0, 7/1/25

AYES: Cervantes, Choi, Allen, Limón, Umberg

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 5/5/25 - See last page for vote

SUBJECT: Political Reform Act of 1974: prospective employment

SOURCE: California Fair Political Practices Commission

DIGEST:

This bill requires that elected officials and other high ranking state and local officials disclose arrangements for prospective employment in their statements of economic interest.

ANALYSIS:

Existing law:

1. Requires a specified list of high ranking officials to file statements of economic interest when assuming office, each year in office, and when leaving office to disclose to the public their financial interests, including investments, interests in real property, and income.
2. Specifies high ranking officials as:
   1. All elected state officers;
   2. Judges and court commissioners;
   3. Members of the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Fair Political Practices Commission (FPPC), the California Coastal Commission, and the High-Speed Rail Authority;
   4. Members of planning commissions, boards of supervisors, and city councils;
   5. Mayors, city managers, city attorneys, and city treasurers;
   6. District attorneys, county counsels, county treasurers, and chief administrative officers of counties;
   7. Other public officials who manage public investments; and
   8. Candidates for any of these offices at any election.
3. Precludes a public official from making, participating in making, or using the public official’s official position to influence any governmental decision directly relating to any person with whom the public official is negotiating, or has any arrangement concerning, prospective employment.

This bill:

1. Defines “arrangement for prospective employment” as an agreement in which a prospective employee has accepted a prospective employer’s offer of employment.
2. Adds arrangements for prospective employment to the items that must be disclosed on an assuming office statement, an annual statement, or a leaving office statement for any of the high ranking officials listed in 2) of existing law above.
3. Requires that the disclosure of an arrangement for prospective employment in a statement of economic interest must contain:
   1. The date the filer accepted the prospective employer’s offer of employment;
   2. The position offered;
   3. A general description of the business activity of the prospective employer; and
   4. Name and street address of the prospective employer.

Background

Proposition 9, which appeared on the June 1974 ballot, created the California Political Reform Act (PRA) and established California’s campaign finance and disclosure laws for state and local campaigns, candidates, officeholders, and ballot measures. Proposition 9 also created the FPPC to implement, administer, and enforce the PRA.

The PRA defines conflicts of interest for public officials, requires public agencies to adopt conflict of interest codes, and requires public officials to disclose their financial interests. Disclosure of financial interests occurs through filing of the statement of economic interests, FPPC Form 700.

Since 1991, the PRA has deemed it a conflict of interest for an official to make or influence a governmental decision that relates to someone with whom the official is negotiating or has accepted prospective employment.

Comments

Author’s Statement. Government transparency is important to maintain the public’s trust, and this bill will close a reporting gap that would require additional disclosure from public officials leaving office.

The PRA currently forbids officials from participating in decisions that affect their future employers, due to the potential to create a conflict of interest, but public officials are not required to disclose when they accept a future job offer. This creates an opportunity for those in power to make decisions relating to a future employer without the public’s knowledge.

By adding prospective employment disclosure to Form 700s, this bill closes this gap, creating transparency for the public and allowing for the monitoring and investigating of ethical violations that occur when public officials make decisions that affect their future employers before leaving office.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 7/14/25)

California Fair Political Practices Commission (Source)

League of Women Voters of California

OPPOSITION: (Verified 7/14/25)

None received

ARGUMENTS IN SUPPORT:

Supporters state that this bill will close an important gap in disclosure requirements, and thus improve transparency and public accountability in cases where a public official has accepted employment. The League of Women’s Voters of California supports this bill because when an official has made arrangements for future employment, a conflict of interest may arise if the official has occasion to act on matters which could impact the employer’s interests. This is parallel to the conflicts which can arise from the official’s real estate or other investments, which must be disclosed under current law. The League of Women Voters of California strongly supports laws which promote transparency and contends that this bill would help ensure that officials avoid conflicts that put private interests above those of their constituents.

ASSEMBLY FLOOR: 77-0, 5/5/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Bains, Ellis

Prepared by: Carrie Cornwell / E. & C.A. / (916) 651-4106

7/16/25 16:22:50

**** END ****

SENATE COMMITTEE ON

ELECTIONS AND CONSTITUTIONAL AMENDMENTS

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular

Bill No: 1286 Hearing Date: 7/1/25

Subject:

DIGEST

This bill requires that elected officials and other high ranking state and local officials disclose arrangements for prospective employment in their statements of economic interest.

ANALYSIS

Existing law:

1. Requires a specified list of high ranking officials to file statements of economic interest when assuming office, each year in office, and when leaving office to disclose to the public their financial interests, including investments, interests in real property, and income.
2. Specifies high ranking officials as:
   1. All elected state officers;
   2. Judges and court commissioners;
   3. Members of the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Fair Political Practices Commission (FPPC), the California Coastal Commission, and the High-Speed Rail Authority;
   4. Members of planning commissions, boards of supervisors, and city councils;
   5. Mayors, city managers, city attorneys, and city treasurers;
   6. District attorneys, county counsels, county treasurers, and chief administrative officers of counties;
   7. Other public officials who manage public investments; and
   8. Candidates for any of these offices at any election.
3. Precludes a public official from making, participating in making, or using the public official’s official position to influence any governmental decision directly relating to any person with whom the public official is negotiating, or has any arrangement concerning, prospective employment.

This bill:

1. Defines “arrangement for prospective employment” as an agreement in which a prospective employee has accepted a prospective employer’s offer of employment.
2. Adds arrangements for prospective employment to the items that must be disclosed on an assuming office statement, an annual statement, or a leaving office statement for any of the high ranking officials listed in 2) of existing law above.
3. Requires that the disclosure of an arrangement for prospective employment in a statement of economic interest must contain:
   1. The date the filer accepted the prospective employer’s offer of employment;
   2. The position offered;
   3. A general description of the business activity of the prospective employer; and
   4. Name and street address of the prospective employer.

BACKGROUND

Proposition 9, which appeared on the June 1974 ballot, created the California Political Reform Act (PRA) and established California’s campaign finance and disclosure laws for state and local campaigns, candidates, officeholders, and ballot measures. Proposition 9 also created the FPPC to implement, administer, and enforce the PRA.

The PRA defines conflicts of interest for public officials, requires public agencies to adopt conflict of interest codes, and requires public officials to disclose their financial interests. Disclosure of financial interests occurs through filing of the statement of economic interests, FPPC Form 700.

Since 1991, the PRA has deemed it a conflict of interest for an official to make or influence a governmental decision that relates to someone with whom the official is negotiating or has accepted prospective employment.

COMMENTS

1. Author’s Statement. Government transparency is important to maintain the public’s trust, and this bill will close a reporting gap that would require additional disclosure from public officials leaving office.

The PRA currently forbids officials from participating in decisions that affect their future employers, due to the potential to create a conflict of interest, but public officials are not required to disclose when they accept a future job offer. This creates an opportunity for those in power to make decisions relating to a future employer without the public’s knowledge.

By adding prospective employment disclosure to Form 700s, this bill closes this gap, creating transparency for the public and allowing for the monitoring and investigating of ethical violations that occur when public officials make decisions that affect their future employers before leaving office.

1. Arguments in Support. Supporters state that this bill will close an important gap in disclosure requirements, and thus improve transparency and public accountability in cases where a public official has accepted employment. The League of Women’s Voters of California supports the bill because when an official has made arrangements for future employment, a conflict of interest may arise if the official has occasion to act on matters which could impact the employer’s interests. This is parallel to the conflicts which can arise from the official’s real estate or other investments, which must be disclosed under current law. The League of Women Voters of California strongly supports laws which promote transparency and contends that this bill would help ensure that officials avoid conflicts that put private interests above those of their constituents.
2. Clarifying Amendments. This bill amends an existing section of law that mandates different reporting deadlines for assuming office statements depending on whether a high ranking official was elected, nominated and confirmed, or appointed to the office. The amendments to existing law make it unclear as to whether elected officials and nominated or appointed officials have to report the same information on their assuming office statements of economic interests. The committee may wish to amend this bill to clarify that all high ranking officials report the same information in assuming office statements.

PRIOR ACTION

POSITIONS

Sponsor: California Fair Political Practices Commission

Support: League of Women Voters of California

Oppose: None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1286

Author:(Boerner)

As Amended Ver:April 10, 2025

2/3 vote

SUMMARY

Requires certain public officials to disclose an arrangement for prospective employment on an official's statement of economic interests (SEI), also referred to as a Form 700.

Major Provisions

1. Requires candidates for, and current holders of, elected or appointed state and local offices specified in Section 87200 of the Political Reform Act (PRA), which includes elected state officers, judges, members of the Public Utilities Commission, members of a local board of supervisors, and mayors, among others, to disclose arrangements for prospective employment on their Form 700.
2. Defines the term "arrangement for prospective employment" to mean an agreement pursuant to which a prospective employer's offer of employment has been accepted by the prospective employee, including through verbal or written acceptance.
3. Requires a filer, when an arrangement for prospective employment is required to be reported in accordance with this bill, to disclose on their Form 700 the date that the filer accepted the prospective employer's offer of employment, the business position, a general description of the business activity of the prospective employer, and the name and street address of the prospective employer.

COMMENTS

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 (commonly referred to as a Form 700). 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 required to be 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.

The PRA places several restrictions on the activities of public officials who are leaving governmental employment. For instance, the PRA prohibits all public officials from making, participating in making, or influencing a governmental decision that directly relates to a prospective employer. Once a public official is employed and begins receiving income from the employer, they are prohibited from making or participating in a government decision that has a material financial effect on the employer as a source of income. Sources of income and business positions held are disclosed on the Form 700. However, an official is not required to publicly disclose whether, or on what date, the official accepts an offer for employment. Thus, it may be difficult for the public or the Fair Political Practices Commission (FPPC) to determine if a public official was making government decisions that benefit, or otherwise involve, the future employer after the official has accepted the job offer. This bill requires certain officials with high-level decision-making authority to disclose an arrangement for prospective employment on the official's Form 700, including the date the official accepted the job offer.

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.

According to the Author

"Government transparency is important to maintain the public's trust and AB 1286 will close a reporting gap that would require additional disclosure from public officials leaving office. Presently, the Political Reform Act forbids officials from participating in decisions that affect their future employers, as it would create a conflict of interest. However, public officials are not required to disclose when they accept a future job offer, creating an opportunity for those in power to make decisions relating to their future employer without the public's knowledge. By adding prospective employment disclosure to Form 700s, AB 1286 closes this gap, creating transparency for the public and allowing for the monitoring and investigating of ethical violations that occur when public officials make decisions that affect their future employers before leaving office."

Arguments in Support

The sponsor of this bill, the FPPC, writes in support: "Although public officials are generally prohibited from using their government position to benefit a future employer, public officials are not currently required to publicly disclose whether or on what date they accepted an offer of employment. This means that there is no disclosure that would enable the public or the Commission to discover whether a public official made or participated in a government decision that benefitted or otherwise concerned the future employer after the public official accepted the offer of employment with that employer.

"AB 1286 closes this gap in transparency and improves accountability by requiring public officials to disclose on their Statements of Economic Interests (Form 700) when they have accepted an offer of employment."

Arguments in Opposition

None received.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, minor and absorbable costs to the FPPC to investigate related complaints and update educational materials, forms, and regulations.

VOTES

ASM ELECTIONS: 7-0-0

YES: Pellerin, Macedo, Bennett, Berman, Solache, Stefani, Tangipa

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Solache, Ta, Alanis

ABS, ABST OR NV: Pellerin

UPDATED

VERSION: April 10, 2025

CONSULTANT: Nichole Becker / ELECTIONS / (916) 319-2094 FN: 0000306

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1286

Author:(Boerner) – As Amended Ver:April 10, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires certain public officials to disclose an arrangement for prospective employment on such an official’s statement of economic interest (SEI) when assuming or leaving office.

Specifically, this bill applies to SEI filers named in Section 87200 of the Political Reform Act (PRA), which includes elected state officers, judges, members of the Public Utilities Commission, members of a local board of supervisors, and mayors, among others.

FISCAL EFFECT:

Minor and absorbable costs to the Fair Political Practices Commission (FPPC) to investigate related complaints and update educational materials, forms, and regulations.

COMMENTS:

1. Purpose. According to the author, this bill “will close a reporting gap” by adding prospective employment disclosure to an official’s SEI. The author explains:

Presently, the [PRA] forbids officials from participating in decisions that affect their future employers, as it would create a conflict of interest. However, public officials are not required to disclose when they accept a future job offer, creating an opportunity for those in power to make decisions relating to their future employer without the public’s knowledge.

This bill is sponsored by the FPPC and supported by the League of Women Voters of California.

1. Background.

SEIs. The PRA requires certain elected and other state and local officials and candidates to file an SEI, commonly referred to as the Form 700. The information that must be disclosed on an SEI and filing location of the SEI varies depending on the filer’s position. The SEI provides information to the public about an official’s personal financial interests so there is assurance that an official is making decisions that do not enhance their personal finances and reminds the official of potential conflicts of interests so the official will consider recusing themselves from participating in such government decisions.

Prospective Employment. The PRA places several restrictions on the activities of a public official who has an additional non-government job or is leaving government employment, such as prohibiting an official from making or influencing a governmental decision that directly relates to an employer or prospective employer. An official must also report sources of income and business positions on the Form 700. However, an official is not required to publicly disclose whether, or on what date, the official accepts an offer for employment. Thus, it may be difficult for the public or the FPPC to determine if a public official was making government decisions that benefit, or otherwise involve, the future employer after the official has accepted the job offer. This bill requires certain officials with high-level decision-making authority to disclose an arrangement for prospective employment on the official’s Form 700, including the date the official accepted the job offer.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1286

Author:(Boerner) – As Amended Ver:April 10, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires certain public officials to disclose an arrangement for prospective employment on such an official’s statement of economic interest (SEI) when assuming or leaving office.

Specifically, this bill applies to SEI filers named in Section 87200 of the Political Reform Act (PRA), which includes elected state officers, judges, members of the Public Utilities Commission, members of a local board of supervisors, and mayors, among others.

FISCAL EFFECT:

Minor and absorbable costs to the Fair Political Practices Commission (FPPC) to investigate DFA-related complaints and update educational materials, forms, and regulations.

COMMENTS:

1. Purpose. According to the author, this bill “will close a reporting gap” by adding prospective employment disclosure to an official’s SEI. The author explains:

Presently, the [PRA] forbids officials from participating in decisions that affect their future employers, as it would create a conflict of interest. However, public officials are not required to disclose when they accept a future job offer, creating an opportunity for those in power to make decisions relating to their future employer without the public’s knowledge.

This bill is sponsored by the FPPC and supported by the League of Women Voters of California.

1. Background.

SEIs. The PRA requires certain elected and other state and local officials and candidates to file an SEI, commonly referred to as the Form 700. The information that must be disclosed on an SEI and filing location of the SEI varies depending on the filer’s position. The SEI provides information to the public about an official’s personal financial interests so there is assurance that an official is making decisions that do not enhance their personal finances and reminds the official of potential conflicts of interests so the official will consider recusing themselves from participating in such government decisions.

Prospective Employment. The PRA places several restrictions on the activities of a public official who has an additional non-government job or is leaving government employment, such as prohibiting an official from making or influencing a governmental decision that directly relates to an employer or prospective employer. An official must also report sources of income and business positions on the Form 700. However, an official is not required to publicly disclose whether, or on what date, the official accepts an offer for employment. Thus, it may be difficult for the public or the FPPC to determine if a public official was making government decisions that benefit, or otherwise involve, the future employer after the official has accepted the job offer. This bill requires certain officials with high-level decision-making authority to disclose an arrangement for prospective employment on the official’s Form 700, including the date the official accepted the job offer.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 9, 2025

ASSEMBLY COMMITTEE ON ELECTIONS

Gail Pellerin, Chair

ABPCA Bill Id:AB 1286 (

Author:Boerner) – As Amended Ver:March 24, 2025

SUBJECT: Political Reform Act of 1974: prospective employment.

SUMMARY: Requires specified public officials, and public officials designated in their agencies’ conflict of interest codes, to disclose arrangements for prospective employment, as defined, on their statement of economic interests (SEI), also referred to as a Form 700. Specifically, this bill:

1. Defines the term “arrangement for prospective employment” to mean an agreement pursuant to which a prospective employer’s offer of employment has been accepted by the prospective employee, including through verbal or written acceptance.
2. Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to disclose arrangements for prospective employment on their SEI.
   
3. Requires an agency’s conflict of interest code to require designated employees to disclose arrangements for prospective employment on their SEI. Requires designated employees of state and local agencies to disclose arrangements for prospective employment on their Form 700 if the position with the prospective employer is one that would be subject to disclosure, based on the designated employee’s disclosure requirements, as either of the following:
   
   1. A source of income, if the filer had received income from that employer during the period covered by the statement.
      
   2. A business position, if the filer had held that business position during the period covered by the statement.
      
4. Requires a filer, when an arrangement for prospective employment is required to be reported in accordance with this bill, to disclose on their Form 700 the date that the filer accepted the prospective employer’s offer of employment, the business position, a general description of the business activity of the prospective employer, and the name and street address of the prospective employer.
   
5. Specifies that a conflict of interest code must require disqualification of a designated employee from a governmental decision that directly relates to the designated employee’s prospective employer.
   
6. Makes conforming changes.
   

EXISTING LAW:

1. Creates the Fair Political Practices Commission (FPPC), and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA). (Government Code §§81000 et seq.)
2. Makes violations of the PRA subject to administrative, civil, and criminal penalties. (Government Code §§83116, 91000-91005.5)
   
3. Prohibits a public official at any level of state or local government from making, participating in making, or in any way attempting to use the public official’s official position to influence a governmental decision in which the official knows or has reason to know that the official has a financial interest. (Government Code §§87100 et seq.)
   
4. Provides that an official has a “financial interest” in a governmental decision if it is reasonably foreseeable that the decision will have a material financial effect on one or more of the official’s interests as identified and distinguishable from the decision’s effect on the public generally. (Government Code §87103)
   
5. Prohibits a public official from making, participating in making, or using the public official’s official position to influence a governmental decision directly relating to any person with whom the public official is negotiating, or has any arrangement concerning, prospective employment. Provides that the term “arrangement” means acceptance by a public official of an employer’s offer of employment. (Government Code §87407; Cal. Code Regs. §18747)
6. Requires candidates for, and current holders of, specified elected or appointed state and local offices, and designated employees of state and local agencies, to file SEIs disclosing their financial interests, including investments, real property interests, and income. (Government Code §§87200 et seq.)
   
7. Requires every state or local agency to adopt a conflict of interest code that identifies the officials and employees within the agency who make governmental decisions based on the positions they hold, as specified. Provides that a conflict of interest code shall have the force of law. Requires the individuals in the designated positions, commonly referred to as “designated employees,” to file SEIs that publicly disclose the employees’ financial interests, as specified. (Government Code §§87300, 87302)

FISCAL EFFECT: Unknown. State-mandated local program; contains a crimes and infractions disclaimer.

COMMENTS:

1. Purpose of the Bill: According to the author:

Government transparency is important to maintain the public’s trust and AB 1286 will close a reporting gap that would require additional disclosure from public officials leaving office.

Presently, the Political Reform Act forbids officials from participating in decisions that affect their future employers, as it would create a conflict of interest. However, public officials are not required to disclose when they accept a future job offer, creating an opportunity for those in power to make decisions relating to their future employer without the public’s knowledge.

By adding prospective employment disclosure to Form 700s, AB 1286 closes this gap, creating transparency for the public and allowing for the monitoring and investigating of ethical violations that occur when public officials make decisions that affect their future employers before leaving office.

1. Statements of Economic Interests: 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 (commonly referred to as a Form 700). 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 required to be 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.
   

The information that must be disclosed on an SEI, and the location at which an SEI is filed, varies depending on the position held by the individual who is required to file an SEI. The requirement for public officials to file SEIs serves two purposes. First, the SEI provides necessary information to the public about an official's personal financial interests so there is assurances that officials are making decisions that do not enhance their personal finances. Second, the requirement to file an SEI serves as a reminder to the public official of potential conflicts of interests so the official can recuse themselves from making or participating in governmental decisions that are deemed conflicts.

1. Political Reform Act and Prospective Employment: As mentioned above, the PRA prohibits a public official at any level of state or local government from making, participating in making, or attempting to use the official’s position to influence a governmental decision in which the official knows or has reason to know the official has a financial interest. The PRA provides that an official has a “financial interest” if it is reasonably foreseeable that the decision will have a material financial effect on one or more of the official’s interests as identified and distinguishable from the decision’s effect on the public generally. Taken together, these provisions of the PRA prohibit an official from taking part in a decision if it is reasonably foreseeable that the decision would have a material financial effect on one or more of the official’s financial interests identified distinguishable from the decision’s effect on the public generally.
   
   The PRA places several restrictions on the activities of public officials who are leaving governmental employment. For instance, the PRA prohibits all public officials from making, participating in making, or influencing a governmental decision that directly relates to a prospective employer. Once a public official is employed and begins receiving income from the employer, they are prohibited from making or participating in a government decision that has a material financial effect on the employer as a source of income. Sources of income and business positions held are disclosed on the Form 700.
   
   According to the author and sponsor, while a public official is generally prohibited from using their government position to benefit a future employer, they are not required to publicly disclose whether or on what date they have accepted an offer for employment. This means that there is no way for the public or the FPPC to find out if a public official could have been making government decisions that benefit or otherwise involve the future employer after they accepted the offer. Accordingly, this bill will bring transparency and improve accountability by requiring specified state and local public officials to disclose an arrangement for prospective employment, as defined, on their Form 700. Additionally, this bill requires an agency’s conflict of interest code to require designated employees to disclose arrangements for prospective employment on their Form 700, if the position with the prospective employer is one that would be subject to disclosure.
2. Potential Amendments: According to the FPPC, there have been 6 enforcement actions by the FPPC related to situations where public officials participated in decisions that affected their future employers between 1996 and 2014. However, it is possible that other violations occurred that were undiscovered because the FPPC and the public are unable to identify when public officials have accepted an offer of future employment. As such, this bill may help expose situations where a public official participated in decisions that affected a future employer after accepting an employment offer from that employer.
   
   While there may be value in helping to expose potential violations of the law by requiring disclosure of arrangements for prospective employment on the Form 700, the committee may wish to consider whether the broad applicability of this bill is appropriately tailored to the policy goals that it seeks to achieve. As written, this bill applies to everyone who files a Form 700, which includes not only state and local public officials and candidates, but also includes tens (if not hundreds) of thousands of governmental employees statewide who hold positions that are identified in their agency’s conflict of interest code. While those positions may correctly be identified in a conflict of interest code as ones that are involved in participating in making governmental decisions, the individuals holding those positions may nonetheless have relatively low levels of decisionmaking authority, particularly when compared to elected officials.
   
   Requiring disclosure of future employment on publicly-available documents can present privacy concerns. Furthermore, in many cases, the disclosure required by this bill would be made only when people are exiting governmental service, and are no longer serving in positions that involve participating in making governmental decisions. While the public interest in requiring that disclosure may outweigh these concerns in the case of people with high levels of governmental decisionmaking authority, it is less clear whether the public interest is as compelling in the case of individuals who serve in positions that have low levels of decisionmaking authority. Accordingly, the committee may wish to consider amendments to narrow the scope of this bill such that it applies only to high level filers, specifically candidates and elected state and local officials specified in Government Code Section 87200 (also known as Section 87200 filers), rather than to every individual anywhere in the state who is required to file a Form 700.
3. Arguments in Support: The sponsor of this bill, the Fair Political Practices Commission, writes in support:

Although public officials are generally prohibited from using their government position to benefit a future employer, public officials are not currently required to publicly disclose whether or on what date they accepted an offer of employment. This means that there is no disclosure that would enable the public or the Commission to discover whether a public official made or participated in a government decision that benefitted or otherwise concerned the future employer after the public official accepted the offer of employment with that employer.

AB 1286 closes this gap in transparency and improves accountability by requiring public officials to disclose on their Statements of Economic Interests (Form 700) when they have accepted an offer of employment.

1. Political Reform Act of 1974: 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.

REGISTERED SUPPORT / OPPOSITION:

Support

Fair Political Practices Commission (sponsor)

Opposition

None on file.

Analysis Prepared by: Nichole Becker / ELECTIONS / (916) 319-2094