BILL NUMBER: AB 41	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 30, 2012
	AMENDED IN SENATE  MARCH 29, 2012
	AMENDED IN SENATE  FEBRUARY 15, 2012
	AMENDED IN SENATE  AUGUST 22, 2011
	AMENDED IN SENATE  JUNE 9, 2011

INTRODUCED BY   Assembly Member Hill

                        DECEMBER 6, 2010

   An act to amend Section 87200 of the Government Code,   and to
add Section 185034.5 to the Public Utilities Code,   relating
to conflicts of interest, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 41, as amended, Hill.  High-Speed Rail Authority: conflicts of
interest: disqualification.
   Existing provisions of the Political Reform Act of 1974 prohibit a
public official at any level of state or local government from
making, participating in making, or attempting to use his or her
official position to influence a governmental decision in which he or
she knows or has reason to know that he or she has a financial
interest, as defined. Existing law also requires specified elected
and appointed officers at the state and local levels of government to
disclose specified financial interests by filing periodic statements
of economic interests. Existing law further requires public
officials who hold specified offices and who have a financial
interest in a decision within the meaning of the Political Reform Act
of 1974 to publicly identify the financial interest giving rise to
the conflict of interest or potential conflict of interest, recuse
themselves from discussing and voting on the matter, and leave the
room until after the discussion, vote, and other disposition of the
matter is concluded, except as specified.
   This bill would add members of the High-Speed Rail Authority to
those specified officers who must publicly identify a financial
interest giving rise to a conflict of interest or potential conflict
of interest, and recuse themselves accordingly. 
   Existing law requires each state agency to adopt a
conflict-of-interest code and to designate those employees of the
agency who are subject to the provisions of the conflict-of-interest
code. Existing law requires that each agency's conflict-of-interest
code contain specified provisions, including requirements that each
designated employee file periodic statements of economic interests
and provisions setting forth circumstances under which a designated
employee must disqualify himself or herself from participating in a
governmental decision. Existing law further imposes various other
restrictions on individuals who are designated employees, including
postgovernment employment restrictions and restrictions regarding the
acceptance of gifts and honoraria.  
   This bill would provide that each employee of a contractor or
subcontractor of the High-Speed Rail Authority who serves in a peer
review capacity to the authority shall be deemed to be a designated
employee of the authority, thereby making those persons subject to
the provisions of the authority's conflict-of-interest code and to
the various other restrictions that apply to the designated employees
of a state agency. 
   Existing law makes a violation of the Political Reform Act of 1974
subject to administrative, civil, and criminal penalties. This bill
would impose a state-mandated local program by exposing these members
 and designated employees  to potential criminal penalties
for failing to make the disclosures and recuse themselves where
required by this bill.
   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.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   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 87200 of the Government Code is amended to
read:
   87200.  This article is applicable to elected state officers,
judges and commissioners of courts of the judicial branch of
government, members of the Public Utilities Commission, members of
the State Energy Resources Conservation and Development Commission,
members of the Fair Political Practices Commission, members of the
California Coastal Commission, members of the High-Speed Rail
Authority, members of planning commissions, members of the board of
supervisors, district attorneys, county counsels, county treasurers,
and chief administrative officers of counties, mayors, city managers,
city attorneys, city treasurers, chief administrative officers and
members of city councils of cities, and other public officials who
manage public investments, and to candidates for any of these offices
at any election.
   SEC. 2.    Section 185034.5 is added to the 
 Public Utilities Code   , to read:  
   185034.5.  For purposes of Article 3 (commencing with Section
87300) of Chapter 7 of Title 9 of the Government Code, each employee
of a contractor or subcontractor of the authority who serves in a
peer review capacity to the authority shall be deemed to be a
designated employee of the authority, and the authority shall be
deemed to be the appointing power. Statements required to be filed
pursuant to Section 87302 of the Government Code shall be filed with
the authority. 
   SEC. 2.   SEC. 3.   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. 3.   SEC. 4.   The Legislature
finds and declares that Section 1 of this act furthers the purposes
of the Political Reform Act of 1974 within the meaning of subdivision
(a) of Section 81012 of the Government Code.
   SEC. 4.   SEC. 5.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to ensure that prior to the commencement of  major
 expenditures by the High-Speed Rail Authority, proper
disqualification procedures are in place, it is necessary that this
act take effect immediately.