BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 704|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 704
Author: Gaines (R)
Amended: 4/30/15
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/29/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Public officers and employees: conflict of interest
SOURCE: Author
DIGEST: This bill adds the interest of an owner or partner of a
firm who serves on an advisory board or commission to a
contracting agency to the list of "remote interest" exceptions
to Government Code Section 1090.
ANALYSIS:
Existing law:
1)Prohibits state and local officials from making, influencing,
or voting on public contracts in which they have a prohibited
financial interest.
2)Recognizes exceptions to Government Code Section 1090 for 14
"remote interests," and 16 "non-interests."
3)Permits architects and engineers to serve on various local
SB 704
Page 2
government advisory bodies-including architectural review
boards, art commissions and design review boards-for the
purpose of providing technical advice to local elected
officials.
This bill adds the interest of an owner or partner of a firm who
serves on an advisory board or commission to a contracting
agency to the list of "remote interest" exceptions to Government
Code Section 1090.
Background
Purpose of this bill. Section 1090 of the Government Code
prohibits a government body from approving a public contract
with an owner or partner of a firm who serves on a board or
commission that advises the government body. These boards and
commissions and the communities they serve, benefit when
architects and other professionals volunteer their time and
expertise. SB 704 allows and encourage more architects,
engineers and other professionals to serve their communities as
volunteers on appointed boards and commissions, such as design
review boards and planning commissions.
Let's be clear. SB 704 does not define what constitutes an
"advisory board or commission." Cities around the state may have
commissions and boards with varying degrees of power and
responsibility. Some bodies offer only nonbinding suggestions,
while the recommendations of some boards and commissions are
treated as final. According to Attorney General's opinions,
courts have construed the "making" of a contract broadly, to
include contract-related negotiations, discussions, reasoning,
and planning.
Remotely close. SB 704 amends Section 1091.5 of the Government
Code, which relates to so-called "non-interests" under Section
1090. However, the bill proposes creating another situation in
which an interested party could overcome the 1090 prohibition,
by recusing himself or herself from all participation in a
public contract. State law classifies such scenarios as "remote
interests."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
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SUPPORT: (Verified5/20/15)
American Institute of Architects, California Council
OPPOSITION: (Verified5/20/15)
None received
Prepared by:Toren Lewis / GOV. & F. / (916) 651-4119
5/20/15 14:44:38
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