BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2661
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 2661 (Bradford) - As Amended:  April 30, 2014 

          Policy Committee:                              ElectionsVote:6-0
                        Natural Resources                     8-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill moves specific provisions regarding the California  
          Energy Commission (CEC) into the Political Reform Act (PRA) and  
          repeals redundant conflict of interest provisions currently  
          specific to the CEC that are already part of the PRA.  
          Specifically, this bill: 

          1)Moves specified conflict of interest provisions applicable to  
            the CEC from the Public Resources Code to the PRA, giving the  
            Fair Political Practices Commission (FPPC), instead of the  
            Attorney General, the authority to waive these provisions if  
            the interest is not sufficiently substantial to affect the  
            integrity of services that the state may expect.

          2)Expands one of these prohibitions-that someone cannot be a  
            commissioner if, during the two years prior to appointment to  
            the CEC, the person received a substantial portion of his or  
            her income directly or indirectly from any electric utility or  
            engaged in the sale or manufacture of any major component of  
            any facility-to also prohibit someone from being a  
            commissioner if he or she received a substantial portion of  
            their income from any load-serving entity or from any person  
            engaged in generating, transmitting, or distributing  
            electricity in the state.

           FISCAL EFFECT  

          Minor one-time General Fund costs of around $60,000 to the FPPC  
          do develop regulations to implement the conflict of interest  
          changes.









                                                                  AB 2661
                                                                  Page  2

           COMMENTS  

           Background and Purpose  . The CEC was established in 1974 as the  
          state's primary energy policy and planning agency. Legislation  
          creating the CEC was signed into law two weeks prior to the  
          adoption of the PRA by the voters through the passage of  
          Proposition 9 at the June 1974 statewide primary election. As a  
          result, when the CEC was created, and its specific conflict of  
          interest rules were established, the FPPC did not exist, and the  
          state did not have the conflict of interest rules that were  
          enacted through the PRA.

          Notwithstanding the fact that the CEC has its own set of  
          conflict of interest rules, the conflict of interest provisions  
          in the PRA apply generally to all public officials and public  
          agencies, including the CEC and its members and employees. This  
          bill repeals certain provisions of the CEC's conflict of  
          interest rules that limit the ability of members and employees  
          of the CEC to participate in governmental decisions that affect  
          their financial interests. The PRA's conflicts of interest  
          rules, however, will continue to apply to those governmental  
          actions by the CEC and its members and employees.

          This bill transfers certain other conflict of interest rules  
          that are specific to the CEC from the Public Resources Code into  
          the PRA. By including these restrictions in the PRA, the FPPC  
          will be primarily responsible for the enforcement and  
          interpretation of the CEC's conflict rules.  In addition,  
          violations of the CEC's conflict of interest rules will no  
          longer be subject only to felony penalties. Instead, violations  
          of these rules will be subject to the same penalties that apply  
          to other violations of the PRA-misdemeanor criminal penalties or  
          civil or administrative fines.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081