BILL ANALYSIS Ó
SENATE COMMITTEE ON
ELECTIONS AND CONSTITUTIONAL AMENDMENTS
Senator Ben Allen, Chair
2015 - 2016 Regular
Bill No: SB 554 Hearing Date: 4/21/15
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|Author: |Wolk |
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|Version: |2/26/15 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Darren Chesin |
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Subject: California Water Commission: disqualifying financial
interest: removal from office
DIGEST
This bill provides that a member of the California Water
Commission is removed from office if after trial a court finds
that the commission member has knowingly participated in any
commission decision in which the member has a disqualifying
financial interest in the decision.
ANALYSIS
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).
2.Prohibits members of the Legislature and state, county,
district, judicial district, and city officers or employees,
pursuant to Section 1090 of the Government Code, from being
financially interested in any contract made by them in their
official capacity, or by any body or board of which they are
members. Prohibits state, county, district, judicial
district, and city officers or employees from being purchasers
at any sale made by them in their official capacity, or from
being vendors at any purchase made by them in their official
capacity.
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3.Provides that a person who willfully violates Section 1090 is
subject to a fine of not more than $1,000 or by imprisonment
in the state prison, and is forever disqualified from holding
any office in the state.
4.Alternatively permits the FPPC to bring a civil or
administrative action against any person for a violation of
Section 1090 but prohibits the FPPC from commencing an action
absent a written authorization from the district attorney of
the county in which the violation occurred, or if the Attorney
General (AG) or a district attorney is pursuing a criminal
action against that person for the same alleged violation.
5.Provides that a civil violation of Section 1090 shall be
punishable by a fine in an amount not to exceed the greater of
$10,000 or three times the value of the financial benefit
received by the person. Provides that a violation of Section
1090 is punishable through an administrative action by a
monetary penalty of up to $5,000.
6.Prohibits a public official, pursuant to the PRA, from making,
participating in making, or in any way attempting to use his
or her official position to influence a governmental decision
in which the official knows or has reason to know that he or
she has a financial interest. Provides that designated
employees and specified public officials that realize an
economic benefit as a result of a violation of this provision
are liable in a civil action brought by the civil prosecutor
for an amount of up to three times the value of the benefit.
7.Provides that a public official has a financial interest in a
decision within the meaning of the PRA if it is reasonably
foreseeable that the decision will have a material financial
effect, distinguishable from its effect on the public
generally, on the official, a member of his or her immediate
family, or on any of the following:
A. Any business entity in which the public official has a
direct or indirect investment worth $2,000 or more.
B. Any real property in which the public official has a
direct or indirect interest worth $2,000 or more.
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C. Any source of income, as specified, aggregating $500 or
more in value provided or promised to, received by, the
public official within 12 months prior to the time when the
decision is made.
D. Any business entity in which the public official is a
director, officer, partner, trustee, employee, or holds any
position of management.
E. Any donor of, or any intermediary or agent for a donor
of, a gift, as specified, provided to, received by, or
promised to the public official within 12 months prior to
the time when the decision is made.
1.Provides that violations of the PRA are subject to specified
criminal, civil, and administrative penalties.
2.Makes the AG responsible for enforcing the criminal provisions
of the PRA with respect to state agencies, lobbyists, and
state elections. Provides that the district attorney of any
county in which a violation occurs has concurrent powers and
responsibilities with the AG.
3.Provides that the FPPC is the civil prosecutor for violations
of the PRA with respect to the state or any state agency,
except itself.
This bill:
1.Prohibits members of the California Water Commission from
participating in any commission decision in which they have a
disqualifying financial interest in the decision as defined in
the PRA.
2.Provides that upon the request of any person, or on the AG's
own initiative, the AG may file a complaint in the Superior
Court for the County of Sacramento alleging that a commission
member has knowingly violated this provision and the facts
upon which the allegation is based and asking that the member
be removed from office.
3.Requires that the court shall pronounce judgment that the
member be removed from office after trial if it finds that the
commission member has knowingly violated this provision.
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BACKGROUND
The California Water Commission . According to information
provided on its website, the California Water Commission
consists of nine members appointed by the Governor and confirmed
by the State Senate. Seven members are chosen for their general
expertise related to the control, storage, and beneficial use of
water and two are chosen for their knowledge of the environment.
The Commission provides a public forum for discussing water
issues, advises the Department of Water Resources (DWR), and
takes appropriate statutory actions to further the development
of policies that support integrated and sustainable water
resource management and a healthy environment. Statutory duties
include advising the Director of DWR, approving rules and
regulations, and monitoring and reporting on the construction
and operation of the State Water Project.
Proposition 1, which was approved by the voters in 2014,
authorizes a $2.7 billion continuous appropriation without
regard to fiscal year to the Commission for water storage
projects that improve the operation of the state water system,
are cost effective, and provide a net improvement in ecosystem
and water quality conditions.
These projects are required to be selected by the Commission
through a competitive public process that ranks potential
projects based on the expected return for public investment as
measured by the magnitude of the public benefits provided,
pursuant to specified criteria.
COMMENTS
1.According to the author : The California Water Commission has
been given a new and important charge in Proposition 1. The
Commission has been given the task of granting $2.7 billion in
continuously appropriated bond dollars for the public benefits
of water storage. In implementing this new charge, which will
not include legislative oversight, it is important to ensure
that the commissioners will not have financial conflicts of
interest.
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SB 554 simply prohibits Commissioners from participating in
decisions in which there is a financial conflict of interest,
and specifies that a commissioner can be removed if such an
action is taken. SB 554 ensures that conflict of interest
provisions apply specifically to the California Water
Commission.
2.Are existing penalties sufficient ? As described above,
existing law provides for criminal, civil, and administrative
penalties for violations of various conflict of interest
prohibitions including, in some instances, disqualification
from holding office. Since all of these existing provisions
already apply to members of the California Water Commission is
the additional penalty provided in this bill necessary?
POSITIONS
Sponsor: Author
Support: Sierra Club California
Oppose: None received
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