Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2661

Introduced by Assembly Member Bradford

February 21, 2014

An act to begin delete amend Section 857 of the Public Utilities Code, end delete begin insert add Article 3.7 (commencing with Section 87375) to Chapter 7 of Title 9 of the Government Code, and to repeal and add Section 25205 of the Public Resources Code, end insert relating to begin delete utility property. end delete begin insert the Political Reform Act of 1974. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2661, as amended, Bradford. begin delete Utility right-of-way. end delete begin insert Political Reform Act of 1974: conflicts of interests: Energy Commission. end insert

begin insert

The Political Reform Act of 1974 prohibits a public official from making, participating in making, or in any way attempting to use his or her official position to influence a governmental decision in which the public official knows or has reason to know he or she has a financial interest. The act also imposes certain restrictions on the postgovernmental employment and activities of certain public officials. The act is administered and enforced by the Fair Political Practices Commission.

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Existing law establishes the State Energy Resources Conservation and Development Commission, commonly known as the Energy Commission. Existing law prescribes certain qualifications for members of the Energy Commission, including a prohibition against receiving a substantial portion of income from specified energy-related entities in the 2 years preceding appointment to the Energy Commission. Existing law prohibits members of the Energy Commission from being employed by an electric utility or applicant or, within 2 years after the member ceases to be a member of the Energy Commission, a person who engages in the sale or manufacture of a major component of a facility. Existing law prohibits a member of the Energy Commission from holding any other elected or appointed public office or position, except as specified. Existing law prohibits persons with specified relationships to a member or employee of the Energy Commission from appearing in proceedings and other matters in which the Energy Commission is a party or has a direct and substantial interest.

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This bill would repeal these qualification and conflict-of-interest requirements for members and employees of the Energy Commission and recast them within the act. The bill would authorize the Fair Political Practices Commission to exempt a member or employee of the Energy Commission from the application of certain of these provisions after a finding that the member’s or employee’s interest is not sufficiently substantial to affect the integrity of services expected from the member or employee, as specified.

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A violation of the act is punishable as a misdemeanor. By expanding the definition of an existing crime, this bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2⁄3 vote of each house and compliance with specified procedural requirements.

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This bill would declare that it furthers the purposes of the act.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities. Existing law authorizes a public utility to lease real property acquired for purposes of obtaining a utility right-of-way to a governmental entity for purposes of a public park if the utility retains the use of the right-of-way for public utility purposes, as prescribed.

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This bill would make a nonsubstantive change to these provisions.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Article 3.7 (commencing with Section 87375) is
added to Chapter 7 of Title 9 of the end insert begin insert Government Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 3.7. end insert   Energy Commission Conflicts of Interests

 

begin insert 87375. end insert   

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Community choice aggregator” has the same meaning as
set forth in Section 331.1 of the Public Utilities Code.

(2) “Electrical corporation” has the same meaning as set forth
in Section 218 of the Public Utilities Code.

(3) “Electric service provider” has the same meaning as set
forth in Section 218.3 of the Public Utilities Code.

(4) “Energy Commission” means the State Energy Resources
Conservation and Development Commission established pursuant
to Section 25200 of the Public Resources Code.

(5) “Facility” means the structure or equipment necessary for
generating, transmitting, or distributing electricity, including
electric transmission lines and thermal, wind, hydroelectric, and
photovoltaic plants.

(6) Notwithstanding paragraph (2) of subdivision (b) of Section
82030, for purposes of this section, “income” includes salary and
reimbursement for expenses or per diem, and social security,
disability, or other similar benefit payments received from a state,
local, or federal government agency, and reimbursement for travel
expenses and per diem received from a bona fide nonprofit entity
exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code.

(7) “Load serving entity” means a person, including an
electrical corporation, electric service provider, or community
choice aggregator, who sells or provides, or is authorized to sell
or provide, electricity to end users located in the state.

(8) “Major component” means any product or equipment
integral to facility construction or operation or to electrical
generation, transmission, or distribution.

(9) “Person” has the same meaning as set forth in Section 82047
and includes a city, county, public district or agency, the state or
any department or agency thereof, and the United States or any
department or agency thereof.

(b) An individual shall not be a member of the Energy
Commission if, during the two years prior to appointment to the
Energy Commission, the individual received a substantial portion
of his or her income, directly or indirectly, from any of the
following:

(1) A load serving entity.

(2) A person engaged in, or authorized to engage in, generating,
transmitting, or distributing electricity in the state.

(3) A person who engages in the sale or manufacture of any
major component of a facility located in the state.

(c) Except as provided in Section 25202 of the Public Resources
Code, and subject to the prohibitions of Section 1099 of the
Government Code, a member of the Energy Commission shall not
hold any other elected or appointed public office or position.

(d) A member or employee of the Energy Commission shall not
maintain a relationship as a partner, employer, employee, or
consultant with a person who acts as an attorney, agent, or
employee for a person other than the state in connection with a
judicial or other proceeding, hearing, application, request for
ruling, or other determination; contract; claim; controversy; study;
plan; or other particular matter in which the Energy Commission
is a party or has a direct and substantial interest.

(e) If the Fair Political Practices Commission finds that the
interest of a member or employee of the Energy Commission, as
appropriate, in income described in subdivision (b), in holding an
office or position described in subdivision (c) that is not otherwise
prohibited by Section 1099, or in a relationship described in
subdivision (d) is not sufficiently substantial to affect the integrity
of services that the state may expect from the member or employee
with respect to the Energy Commission, the subdivision to which
the Fair Political Practices Commission’s findings pertain shall
not apply to that member or employee in that instance.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25205 of the end insert begin insert Public Resources Code end insert begin insert is
repealed. end insert

begin delete

25205.  

(a) No person shall be a member of the commission
who, during the two years prior to appointment on the commission,
received any substantial portion of his or her income directly or
indirectly from any electric utility, or who engages in sale or
manufacture of any major component of any facility. A member
of the commission shall not be employed by any electric utility,
applicant, or, within two years after he or she ceases to be a
member of the commission, by any person who engages in the sale
or manufacture of any major component of any facility.

(b) Except as provided in Section 25202, the members of the
commission shall not hold any other elected or appointed public
office or position.

(c) The members of the commission and all employees of the
commission shall comply with all applicable provisions of Section
19251 of the Government Code.

(d) A person who is a member or employee of the commission
shall not participate personally and substantially as a member or
employee of the commission, through decision, approval,
disapproval, recommendation, the rendering of advice,
investigation, or otherwise, in a judicial or other proceeding,
hearing, application, request for a ruling, or other determination,
contract, claim, controversy, study, plan, or other particular matter
in which, to his or her knowledge, he or she, his or her spouse,
minor child, or partner, or any organization, except a governmental
agency or educational or research institution qualifying as a
nonprofit organization under state or federal income tax law, in
which he or she is serving, or has served as officer, director, trustee,
partner, or employee while serving as a member or employee of
the commission or within two years prior to his or her appointment
as a member of the commission, has a direct or indirect financial
interest.

(e) A person who is a partner, employer, or employee of a
member or employee of the commission shall not act as an attorney,
agent, or employee for any person other than the state in connection
with any judicial or other proceeding, hearing, application, request
for a ruling, or other determination, contract, claim, controversy,
study, plan, or other particular matter in which the commission is
a party or has a direct and substantial interest.

(f) The provisions of this section shall not apply if the Attorney
General finds that the interest of the member or employee of the
commission is not so substantial as to be deemed likely to affect
the integrity of the services which the state may expect from the
member or employee.

(g) Any person who violates any provision of this section is
guilty of a felony and shall be subject to a fine of not more than
ten thousand dollars ($10,000) or imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code, or both that
fine and imprisonment.

(h) The amendment of subdivision (d) of this section enacted
by the 1975-76 Regular Session of the Legislature does not
constitute a change in, but is declaratory of, existing law.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 25205 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 25205. end insert   

Members and employees of the commission shall be
subject to Section 87375 of the Government Code.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIIIB of the California
Constitution.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.

end insert

begin delete

SECTION 1.  

Section 857 of the Public Utilities Code is
amended to read:

857.  

(a) A public utility that owns real property acquired for
purposes of obtaining a utility right-of-way, may lease that property
to a governmental entity for purposes of a public park, if the public
utility retains the use of the right-of-way for public utility purposes.

(b) In determining whether a lease of real property to a
governmental entity for park purposes is for fair value, the
commission shall include the community benefits of parks and
open space as a benefit to ratepayers.

(c) As used in this section, “community benefits” include, but
are not limited to, improving public health, protecting the
environment, and increasing recreational assets.

end delete