BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 952
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: jones
VERSION: 5/10/11
Analysis by: Art Bauer FISCAL: No
Hearing date: June 28, 2011
SUBJECT:
High-speed rail
DESCRIPTION:
This bill imposes specific conflict of interest requirements and
limitations on the California High-Speed Rail Authority (HSRA),
the board members, and its employees as well as businesses and
consultants that are doing, or desire to do, business with the
HSRA.
ANALYSIS:
Existing law:
1) Permits members of, staff to, and consultants to the
HSRA to accept gifts up to $420 per annum.
2) Permits the HSRA, as an organizational body, to accept
gifts in any amount from any source, and then transfer
that gift to any HSRA member, staff, or consultant without
limitation.
This bill :
1) Prohibits any HSRA board member, consultant, or staff
from receiving any gift.
2) Prohibits a consultant, a construction company, or
other firms seeking contracts with the HSRA from making
any gift to a member of the HSRA board, a staff person, or
to a member of the family of a board members or staff
person.
3) Prohibits a board member, consultant, or employee of
the HSRA from appearing before the HSRA for compensation
for a period of 3 years following the termination of the
AB 952 (JONES) Page 2
employment with the HSRA.
COMMENTS:
1) Purpose : According to the author, inquiries have
focused on HSRA officials receiving gift, including
European trips sponsored by foreign governmental entities.
These trips, some of which were worth thousands of dollars,
were donated to the HSRA and then HSRA officials allotted
them to board members and executives. This, in effect,
circumvents the disclosure on annual reports of gifts,
income, and personal investments.
The Los Angeles Times reported that the HSRA could not
account for the donated trips, as generally required by
state ethics regulations, and that the HSRA failed to post
details on the sources, costs, and itineraries of the
trips on its website, as required by Fair Political
Practices Commission rules.
In order to ensure the integrity of the process and
instill public confidence, the author believes it is
imperative that board members, staff, and consultants not
be permitted to accept gifts from any individual who
conducts business or intends to conduct business with the
HSRA.
2) Proposed amendment . Existing law allows the HSRA to
receive "grants, fees, and allocations" from local
governments, the federal government, and "foreign
governments." The committee may wish to amend the bill to
delete authorization to receive funds from foreign
governments. This authorization has been a source of some
of the ethical issues encountered by the HSRA.
Assembly Votes:
Floor: 78-0
E&R: 7-0
Trans: 11-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 22, 2011)
SUPPORT: City of Palo Alto
City of Pico Rivera
AB 952 (JONES) Page 3
Town of Atherton
OPPOSED: None receive.