BILL ANALYSIS �
AB 952
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CONCURRENCE IN SENATE AMENDMENTS
AB 952 (Jones)
As Amended August 16, 2011
Majority vote
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|ASSEMBLY: |78-0 |(June 1, 2011) |SENATE: |34-0 |(August 22, |
| | | | | |2011) |
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Original Committee Reference: TRANS.
SUMMARY : Imposes specific conflict of interest requirements and
limitations on the California High-Speed Rail Authority
(Authority), its employees, businesses, and consultants that are
doing, or want to do, business with the Authority.
The Senate amendments:
1)Delete authorization for the Authority to receive funds from
foreign governments.
2)Resolve chaptering conflicts with AB 145 (Galgiani).
EXISTING LAW :
1)Requires, pursuant to the Political Reform Act (Act), most
state and local government officials and employees to publicly
disclose their personal assets and income and to disqualify
themselves from participating in decisions that may affect
their personal economic interests; assigns to the Fair
Political Practices Commission (FPPC) the responsibility for
interpreting the Act's provisions.
2)Limits, generally, gifts to a public official from a third
party to a specified amount (currently $420) per year per
donor; gifts received over $50 from a single source must be
reported on the recipient's yearly statement of economic
interests.
3)Defines "gift" to mean any payment that confers a personal
benefit on the recipient, to the extent that consideration of
equal or greater value is not received.
4)Excludes from the definition of "gift" any informational
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material such as books, reports, pamphlets, calendars, or
periodicals; provides that payment for travel or reimbursement
for any expenses is specifically not "informational material."
5)Places, under the Act, two types of restrictions on
post-governmental activity (also known as "revolving door
ban"):
a) A one-year ban prohibits certain officials, for one year
after leaving state service, from representing any other
person by appearing before or communicating with, for
compensation, their former agency in an attempt to
influence agency decisions that involve the making of
general rules (such as regulations or legislation), or to
influence certain proceedings involving a permit, license,
contract, or transaction involving the sale or purchase of
property or goods. Members of the Legislature, members of
state boards and commissions with decision-making
authority, and any individual who manages public
investments are examples of people who are subject to the
one-year ban; and,
b) A permanent ban prohibits former state officials from
working on proceedings that they participated in while
working for the state. The ban prohibits appearances and
communications to represent any other person, as well as
aiding, advising, counseling, consulting or assisting in
representing any other person, for compensation, before any
state administrative agency in a proceeding involving
specific parties (such as a lawsuit, a hearing before an
administrative law judge, or a state contract) if the
official previously participated in the proceeding.
6)Provides a three-year revolving door ban for any member of the
California Gambling Control Commission, the executive
director, the chief, and any employee of the commission.
AS PASSED BY THE ASSEMBLY , this bill:
1)Prohibited a member, employee, or consultant of the Authority
from receiving any gift, as defined by reference.
2)Prohibited any construction company, engineering firm,
consultant, legal firm, or any other company, vendor, or
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business entity that is under contract, or seeking a contract,
with the Authority, or subcontractor of any of the above, or
owner, employee, or any member of their immediate families of
any of these companies, firms, vendors, entities or
subcontracts from making gifts to any member, employee, or
contractor of the Authority or to any member of their
immediate families.
3)Authorized the Authority to receive gifts but only on written
approval of the Department of Finance (DOF); authorizes the
Authority to transfer the gifts it receives to any member,
employee, or consultant if approved in writing by DOF.
4)Prohibited a member, employee, or consultant of the Authority
from appearing before the Authority, for compensation, on
behalf of any individual or private or public entity for a
period of three years after termination of the person's
relationship with the Authority; exempts from this prohibition
a state employee or officer or an elected official acting in
his or her official capacity.
5)Provided that this prohibition is to be enforced by the
Attorney General, district attorney, or any city attorney with
jurisdiction.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Last fall, the FPPC investigated several Authority
board members and the former executive director to ascertain if
they had violated rules regarding the receipt of gifts. The
investigations centered on officials having taken a number of
overseas trips paid for by foreign governments that are hoping
to participate in the development of the high-speed rail project
in California.
The investigation was officially closed earlier this year and
the FPPC reported that there was no evidence of any violations
having occurred. As it turns out, individual recipients of the
trips were not required to disclose the trips as gifts on annual
conflict of interested reports because the trips were given to
the Authority, not the individuals.
Under FPPC regulations, certain payments may be considered a
gift to a state agency and not an individual official if the
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following four requirements are met:
1)The agency receives and controls the gifts or payments.
2)The gift or payment is used for official agency business.
3)The agency, not the donor, determines the officials who will
use the gift or payment.
4)The agency memorializes the payment in written record.
Within 30 days after use of the payment, a state agency must
fully disclose receipt of the gift, file the disclosure report
with the FPPC, and post the disclosure report on the agency's
Web site.
The author has introduced this bill "to ensure the integrity of
the process and instill public confidence, it is imperative that
members, staff, and consultants not be permitted to accept gifts
from any individual who conducts business or intends to conduct
business with the HSRA. Given the extraordinary amount of
public monies involved, high standards of conduct must be
observed as even the perception of corruption is harmful."
The sponsors of this bill, the Cities of Palo Alto, Atherton,
Menlo Park, and Pico Rivera argue that the bill would hold
members of the Authority to the same three-year "revolving door"
ban that members of the California Gambling Control Commission
are held. The sponsors argue that this higher level of scrutiny
is appropriate given the Authority's heavy reliance on outside
contractors and the billions of dollars involved in the project.
Provisions of this bill that impose a three-year revolving door
ban on the Authority seem appropriate, given the size and dollar
value of the project, the unusually heavy reliance on outside
contractors, and the precedent already set as it relates to the
California Gambling Control Commission.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0001925
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