BILL ANALYSIS Ó
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: SB 693 Hearing Date: 4/7/2015
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|Author: |Hueso |
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|Version: |2/27/2015 As Introduced |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Jay Dickenson |
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SUBJECT: State Energy Resources Conservation and Development
Commission: qualifications: conflicts of interest.
DIGEST: This bill increases, from $10,000 to $50,000, the
maximum monetary penalty for violation of the
conflict-of-interest and incompatible-activities provisions of
the statute that created the California Energy Commission (CEC).
ANALYSIS:
Existing law:
The Warren-Alquist Act, which created the CEC, specifies
conflict-of-interest and incompatible-activities provisions
applicable only to members of the CEC. Among other restrictions,
the Act restricts a person from becoming a commissioner of the
CEC who, for two years prior to appointment, received a
substantial portion of his or her income, directly or
indirectly, from any electric utility, or who engaged in the
sale or manufacture of any major component of any electric
"facility." It also restricts a person who ceases to be a
commissioner from ever working for an electric utility or an
applicant before the CEC, or, for two years after that person
ceases to be a commissioner, from being employed by any person
who engages in the sale or manufacture of any major component of
any electric facility. Violation of these provisions is a
felony, punishable by a fine of not more than $10,000,
imprisonment, or both. (Public Resources Code §25205 et seq.)
The Political Reform Act generally prohibits financial
SB 693 (Hueso) Page 2 of ?
conflicts-of-interests of public officials in public contracting
and post-agency employment, and further prohibits the holding of
incompatible public offices. The Political Reform Act applies
to members of the CEC, as it does most other public officials.
(Government Code §81000 et seq.)
Background
The Warren-Alquist Act was enacted in 1974. The Act created the
CEC and laid out the commission's general responsibilities.
Warren-Alquist specifies a CEC membership of five commissioners
with prescribed expertise. It also proscribes certain
conflicts-of-interest and incompatible activities provisions
meant to ensure the ethical, public-spirited conduct of members
of the CEC. The act also has teeth: violation of its
provisions is a felony, subject to a maximum fine of $10,000,
imprisonment, or both. The amount of the fine has not been
adjusted since passage of the Warren-Alquist Act 31 years ago.
Prior/Related Legislation
AB 2661 (Bradford, 2014) would have moved the Warren-Alquist Act
conflict-of-interest and incompatible activities provisions to
the Government Code and harmonized them with the Political
Reform Act. The bill also would have further restricted
eligibility to serve on the CEC. The bill was vetoed by the
Governor.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: No Local: No
SUPPORT:
None on file.
OPPOSITION:
None on file.
ARGUMENTS IN SUPPORT: The author contends that the integrity
of our state's energy agencies is paramount, a fact highlighted
by recent events. The author believes that the stiff penalty
SB 693 (Hueso) Page 3 of ?
provisions in the Warren-Alquist Act have effectively
safeguarded the CEC for decades; however, as the penalty amount
has not changed in 31 years, the stiffness of those penalties
may have waned. The author intends this update of the
Warren-Alquist Act to ensure the Act maintains its dissuasive
power.
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