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 ****