BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 693|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  SB 693
          Author:   Hueso (D)
          Introduced:2/27/15  
          Vote:     21  

          SENATE ENERGY, U. & C. COMMITTEE:  9-0, 4/7/15
          AYES:  Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire,  
            Pavley, Wolk
          NO VOTE RECORDED:  Fuller, Morrell

           SUBJECT:   State Energy Resources Conservation and Development  
                     Commission:  qualifications:  conflicts of interest


          SOURCE:    Author


          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:
          
          1)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  








                                                                     SB 693  
                                                                    Page  2



            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.)

          2)The Political Reform Act generally prohibits financial  
            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.)


          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 CEC.




          FISCAL EFFECT:                Appropriation:  No    Fiscal Com.:  
           No   Local:  No




          SUPPORT:   (Verified4/8/15)


          None received


          OPPOSITION:   (Verified4/8/15)


          None received








                                                                     SB 693  
                                                                    Page  3




          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  
          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.



          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
          4/8/15 15:13:16





                                   ****  END  ****