BILL ANALYSIS                                                                                                                                                                                                    �




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          |SENATE RULES COMMITTEE            |                        SB 693|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 693
          Author:   Hueso (D)
          Introduced:2/27/15  
          Vote:     21  

          SENATE ENERGY, U. & C. COMMITTEE:  9-0, 4/7/15
          AYES:  Hueso, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire,  
            Pavley, Wolk
          NO VOTE RECORDED:  Fuller, Morrell

           SUBJECT:   State Energy Resources Conservation and Development  
                     Commission:  qualifications:  conflicts of interest


          SOURCE:    Author


          DIGEST:  This bill increases, from $10,000 to $50,000, the  
          maximum monetary penalty for violation of the  
          conflict-of-interest and incompatible-activities provisions of  
          the statute that created the California Energy Commission (CEC).


          ANALYSIS: 

          Existing law:
          
          1)The Warren-Alquist Act, which created the CEC, specifies  
            conflict-of-interest and incompatible-activities provisions  
            applicable only to members of the CEC. Among other  
            restrictions, the Act restricts a person from becoming a  
            commissioner of the CEC who, for two years prior to  
            appointment, received a substantial portion of his or her  
            income, directly or indirectly, from any electric utility, or  
            who engaged in the sale or manufacture of any major component  








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            of any electric "facility." It also restricts a person who  
            ceases to be a commissioner from ever working for an electric  
            utility or an applicant before the CEC, or, for two years  
            after that person ceases to be a commissioner, from being  
            employed by any person who engages in the sale or manufacture  
            of any major component of any electric facility. Violation of  
            these provisions is a felony, punishable by a fine of not more  
            than $10,000, imprisonment, or both. (Public Resources Code  
            �25205 et seq.)

          2)The Political Reform Act generally prohibits financial  
            conflicts-of-interests of public officials in public  
            contracting and post-agency employment, and further prohibits  
            the holding of incompatible public offices.  The Political  
            Reform Act applies to members of the CEC, as it does most  
            other public officials. (Government Code �81000 et seq.)


          This bill increases, from $10,000 to $50,000, the maximum  
          monetary penalty for violation of the conflict-of-interest and  
          incompatible-activities provisions of the statute that created  
          the CEC.




          FISCAL EFFECT:                Appropriation:  No    Fiscal Com.:  
           No   Local:  No




          SUPPORT:   (Verified4/8/15)


          None received


          OPPOSITION:   (Verified4/8/15)


          None received








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                                                                    Page  3




          ARGUMENTS IN SUPPORT:  The author contends that the integrity of  
          our state's energy agencies is paramount, a fact highlighted by  
          recent events.  The author believes that the stiff penalty  
          provisions in the Warren-Alquist Act have effectively  
          safeguarded the CEC for decades; however, as the penalty amount  
          has not changed in 31 years, the stiffness of those penalties  
          may have waned. The author intends this update of the  
          Warren-Alquist Act to ensure the Act maintains its dissuasive  
          power.



          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
          4/8/15 15:13:16





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