Jones Suggests Ethics Reforms

Secretary of State Bill Jones on Thursday unveiled a 10-point plan he believes will help watchdog agencies do a better job of spotting and preventing conflicts of interest by government officials.

The proposal is another challenge to Democrat Gray Davis, whom Jones, a Republican, hopes to face in next year’s race for governor. At the urging of Jones, state and federal investigators are probing possible conflicts by several Davis energy advisors.

At a Capitol news conference, Jones outlined legislation that would require public officials to file statements of economic interest on the first day they begin work--rather than sometime during their first month on the job, as specified under current law. Paychecks would be withheld until the document is filed.

Jones also wants the state auditor and Fair Political Practices Commission to conduct compliance audits of state agencies to ensure that the statements are on file, and said the information should be posted on the Internet.

In addition, Jones said all state employees should sign a “code of ethics.”

“By adopting these reforms,” Jones said, “we can make sure that decisions made on behalf of taxpayers are always made with the taxpayer in mind, and are never designed to benefit a particular government official.”

Throughout much of the year, Jones has been pounding Davis over a controversy involving nearly a dozen administration officials with financial ties to power companies doing business with California.

Under state law, the officials are required to file “statements of economic interest,” disclosing “assets and income which may be materially affected” by their government work. They also are prohibited from participating in decisions involving their personal financial interests.

In this instance, some of them--including advisors and energy traders buying power on behalf of the state’s public utilities--owned stock in energy companies active in California. The investments were disclosed belatedly, and partly because of pressure from Jones.

Five of the officials have since been fired; others are under investigation for conflicts of interest and possible insider trading.

Though Davis supporters have characterized Jones’ crusade as politically motivated, good-government groups applauded his efforts and the plan released Thursday.

“He’s definitely on the right track,” said Jim Knox, executive director of California Common Cause. “The state’s system for safeguarding against conflicts of interest is completely dysfunctional, and these ideas make sense.”

But the head of the Fair Political Practices Commission said many of Jones’ proposals are already common practice at the watchdog agency, which is charged with enforcing conflict of interest laws.

Chairwoman Karen Getman said the commission has a “very effective” system of monitoring agencies to ensure that those required to file economic disclosure forms do so.

“We also have a stringent enforcement program to follow up and make sure that those who haven’t filed are contacted and that they file right away,” she said.

Arguing that Jones’ jurisdiction as secretary of state does not extend to the commission, Getman, a Davis appointee, said: “I think his document reveals a lack of factual knowledge about what we do. That’s a shame.”

Knox of Common Cause took issue with Getman’s suggestion that the commission’s oversight system is effective, saying, “If it’s working so well, then why did we have all these energy traders with stock in the very companies they were doing business with?”

“It’s been a debacle,” Knox said.

“And for the chair of the FPPC to say that there is no problem indicates that she’s got blinders on.”