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