BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 704| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 704 Page 3 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 **** END ****