Assemblyman pushes to reform how elected officials report financial interests

Under the Political Reform Act of 1974, elected officials must disclose their income, real estate and all assets to the public in a yearly document called the Form 700.

“Some people ignore it and there are also some deficiencies with the form,” said State Assemblyman Mike Gatto (D-Glendale).

Gatto, who represents California’s 43rd State Assembly district is pushing for an overhaul of how elected officials disclose financial interests through his bill, AB 10.

“The public wants to know if elected officials have conflicts of interest,” Gatto said. “Your tenure in public service is to serve the public not to make yourself wealthy and in recent years there have been a lot of problems.”

Palm Springs Mayor Steve Pougnet recently ran into some of those problems.

On his Form 700 (see video), the mayor didn’t disclose much about his consulting job for “Union Abbey.” He checked a box saying he collected more than $100,000 per year and called his position “business consultant.”

Until April, the public didn’t know the company was operating on a suspended business license under Richard Meaney, a developer who was also doing business with the city.

When questioned by the media the mayor first said the work he did for Union Abbey was out of state, and later changed his answer to consulting Meaney on the downtown plan. The mayor quit the side job shortly after it made headlines.

“A lot of these are patrolled by the media and the public but unless the media and the public have an accurate picture they can’t serve as watchdogs,” Gatto said.

Gatto’s bill, AB 10, requires much more transparency on the Form 700 to help prevent conflicts of interest.

“You can’t get away with generic descriptions that you’re working as a consultant making this range of money. It would require the specific income, plus a specific description of what the company does, and specific description of who employs you,” Gatto said of AB 10.

Gatto hopes the bill will restore faith to the public about which elected officials are following the law and being honest about their finances.

“I call it the straight face test or the front page of the newspaper test: if you’re working for a massive developer who has a ton of business in front of the city, you shouldn’t be working for him,” Gatto said. “They shouldn’t be doing something that makes the public lose faith in that official.”

To support AB 10, contact your local assemblyman or state senator and voice your support.