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  








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            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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