BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 952
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 952 (Torres) - As Amended:  June 17, 2014 

          Policy Committee:                             ElectionsVote:6-0

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

           SUMMARY  

          This bill makes it a crime to aid or abet an elected or other  
          government official in violating the conflict-of-interest  
          provisions under Government Code Section 1090 and related  
          statutes. Specifically, this bill:

          1)Prohibits an individual from aiding or abetting a legislator  
            or a state, county, district, judicial district, or city  
            officer or employee in either of the following:

             a)   Being financially interested in a contract made by the  
               member or officer in his or her official capacity, or by  
               any board or body on which the official is a member.

             b)   Being purchasers at any sale or vendors at any purchase  
               made by the member or officer in his or her official  
               capacity.

          2)Prohibits an individual from aiding or abetting a Treasurer,  
            Controller, city or county officer, or their deputy or clerk,  
            in purchasing or selling, or in any manner receiving for their  
            own or any other person's use or benefit, any state, county,  
            or city warrants, scrip, orders, demands, claims, or other  
            evidences of indebtedness against the state, or any county or  
            city thereof.  Provides that this provision does not apply to  
            evidences of indebtedness issued to or held by an officer,  
            deputy, or clerk for services rendered by them, nor to  
            evidences of the funded indebtedness of the state, county, or  
            city.

          3)Establishes that violations of the above are subject to the  
            same punishment as violations of the conflict-of-interest  








                                                                  SB 952
                                                                  Page  2

            statues by public officials, i.e. by a fine of not more than  
            $1,000, or by imprisonment in the state prison, and by  
            permanent disqualification from holding any office in this  
            state.

           FISCAL EFFECT  

          Potential but likely minor increase in state costs to the extent  
          anyone is sentenced to state prison for violation of the bill's  
          provisions.

           COMMENTS  

           1)Background  . Section 1090 generally prohibits a public official  
            or employee from making a contract in his or her official  
            capacity in which he or she has a financial interest.  In  
            addition, a public body or board is prohibited from making a  
            contract in which any member of the body or board has a  
            financial interest, even if that member does not participate  
            in the making of the contract.  This prohibition, contained in  
            Section 1090, dates back to the second session of the  
            California Legislature (Chapter 136/Statutes of 1851).

            Under California law, a person who aids and abets in the  
            commission of a crime generally can be found guilty of the  
            underlying crime if certain conditions are met. Courts have  
            held, however, that there is no aider and abettor liability  
            under Section 1090. In its decision in D'Amato v. Superior  
            Court (2008), the Court of Appeal, did not conclude that the  
            Legislature was prohibited from making it a crime to aid and  
            abet a violation of Section 1090.  Instead, the court noted  
            that "the 'common-law principles of legislative and judicial  
            immunity?should not be abrogated absent clear legislative  
            intent to do so."

           2)Purpose  . According to the author, "On May 9, 2011 a special  
            grand jury in San Bernardino County issued a 29 count  
            indictment against members and staff of the San Bernardino  
            County Board of Supervisors (Board) and Colonies Partners,  
            L.P. (Colonies).  The indictment?alleges that Colonies  
            conspired to bribe public officials in return for their votes  
            to approve a settlement between Colonies and the County of San  
            Bernardino (County) for $102 million.

            "The defense has filed several legal challenges at the  








                                                                  SB 952
                                                                  Page  3

            trail court and appellate level since the indictment was  
            filed in 2011. Those challenges over the course of four  
            years have stymied the prosecution's efforts to bring the  
            case to a jury trial. 

            "Several legal challenges reached the California State  
            Supreme Court and were decided in favor of the  
            prosecution in December 2013.  SB 952 clarifies that a  
            private individual is prohibited and can be held  
            criminally liable for aiding and abetting government  
            officials in entering unlawful contracts under Govt. Code  
            1090.

            "SB 952 will strengthen the laws governing bribery of public  
            officials and help bolster public trust in government."


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