BILL NUMBER: SB 204 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 18, 2005
INTRODUCED BY Senator Bowen
FEBRUARY 10, 2005
An act to add Section 303.5 to amend
Section 25205 of the Public Resources Code, and to amend Section 303
of, and to add Section 303.5 to, the Public Utilities Code,
relating to the Public Utilities Commission
commission memberships .
LEGISLATIVE COUNSEL'S DIGEST
SB 204, as amended, Bowen. Public Utilities Commission:
State Energy Resources Conservation and Development Commission:
commission membership memberships .
Existing law prohibits members of the California Public
Utilities Commission (CPUC) from holding an official
relationship with, or having a financial interest in, any person or
corporation subject to commission CPUC
regulation. Existing law prohibits members of the CPUC from
holding an official relation to, or having a financial interest in, a
person or corporation subject to regulation by the CPUC. Existing
law provides that if a member of the CPUC acquires a financial
interest in a corporation or person subject to regulation
by the CPUC other than voluntarily, his or her office becomes vacant
unless within a reasonable time he or she divests the financial
interest. Existing law requires the CPUC, by February 28, 1998, to
adopt an updated Conflict of Interest Code and Statement of
Incompatible Activities.
This bill would additionally preclude membership on the
commission CPUC by any person who, during the 2
years preceding appointment, received a substantial portion of his or
her income from any person or corporation subject to
commission CPUC regulation. The bill would
prohibit commission CPUC members from
being employed by a person or corporation subject to
commission CPUC regulation, while a member of
the commission CPUC or within 2 years
thereafter. The bill would prohibit commission
CPUC members from holding any other public office or
position. The bill would require commission
CPUC members to comply with provisions governing conflicts of
interest of officers and employees appointed within the state civil
service. The bill would prohibit members and employees of the
commission CPUC from participating
personally and substantially in matters in which the person knows
that the person, his or her spouse or minor child, partner, any
organization he or she serves or has served as an officer, director,
trustee, partner, or employee has a direct or indirect financial
interest or has had such an interest during the two years prior to
his or her appointment as a member of the commission
CPUC . The bill would prohibit any person who is
a partner, employer, or employee of a member or employee of the
commission CPUC from acting as an
attorney, agent, or employee for any person other than the state in
connection with any matter in which the commission
CPUC is a party or has a direct and substantial interest.
The bill would make a violation of these provisions a felony,
subject to fine or imprisonment. By creating a new crime, the bill
would impose a state-mandated local program.
This bill would provide that if a member of the CPUC acquires or
maintains a financial interest in a person or corporation and knows
or should know the person or corporation is subject to regulation by
the CPUC, his or her office would immediately becomes vacant. The
bill would provide that if a member of the CPUC involuntarily
acquires or maintains a financial interest in a person or corporation
subject to regulation by the CPUC, his or her office would become
vacant unless within a reasonable time he or she divests the
financial interest. The bill would require the CPUC, by June 1, 2006,
to adopt an updated Conflict of Interest Code and Statement of
Incompatible Activities.
The existing Warren-Alquist State Energy Resources Conservation
and Development Act establishes the State Energy Resources
Conservation and Development Commission (Energy Commission), with
various duties and responsibilities with respect to energy policy and
planning. Existing law prohibits any person from being a member of
the Energy Commission who, during the 2 years prior to appointment,
received any substantial portion of his income directly or indirectly
from any electric utility, as defined, or who engages in the sale or
manufacture of any major component of any facility, as defined.
Existing law prohibits a member of the Energy Commission from being
employed by any electric utility, applicant, as defined, or from
being employed within 2 years after he ceases to be a member of the
Energy Commission, by any person engaged in the sale or manufacture
of any major component of any facility.
This bill would prohibit any person from being a member of the
Energy Commission who, during the 2 years prior to appointment,
received any substantial portion of his or her income directly or
indirectly from any person or corporation subject to regulation by
the Energy Commission, or who engages in the sale or manufacture of
any major component of any facility. The bill would prohibit a member
of the Energy Commission from being employed by any person or
corporation subject to regulation by the Energy Commission, including
an applicant, or within 2 years after he or she ceases to be a
member of the Energy Commission, by any person engaged in the sale or
manufacture of any major component of any facility.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25205 of the Public Resources
Code is amended to read:
25205. (a) No person shall be a member of the commission who,
during the two years prior to appointment on
to the commission, received any substantial portion of his
or her income directly or indirectly from any
electric utility person or corporation subject to
regulation by the commission , or who engages in sale or
manufacture of any major component of any facility. No member of the
commission shall be employed by any electric utility,
person or corporation subject to regulation by the
commission, including an applicant, or, within two years after
he 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 19990 of the Government Code.
(d) No person who is a member or employee of the commission shall
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 in any 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 an 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) No person who is a partner, employer, or employee of a member
or employee of the commission shall 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 such
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 in the state prison,
or both.
(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, the existing law.
SEC. 2 Section 303 of the Public Utilities Code
is amended to read:
303. (a) A public utilities commissioner may not hold an official
relation to nor have a financial interest in a person or corporation
subject to regulation by the commission. If any commissioner
acquires or maintains a financial interest in a person or corporation
that the commissioner knows or should know is subject to regulation
by the commission, his or her office shall immediately become vacant.
If any commissioner involuntarily acquires or
maintains a financial interest in a corporation or
person or corporation subject to regulation by
the commission other than voluntarily , his or her
office shall become vacant unless within a reasonable time he or she
divests himself or herself of the interest.
(b) The commission shall adopt an updated Conflict of Interest
Code and Statement of Incompatible Activities, by February
28, 1998 June 1, 2006 , in a manner consistent
with applicable law.
SECTION 1.
SEC. 3. Section 303.5 is added to the Public Utilities
Code, to read:
303.5. (a) No person shall be a member of the commission who,
during the two years prior to appointment to the commission, received
any substantial portion of his or her income directly or indirectly
from any person or corporation subject to regulation by the
commission. No member of the commission shall be employed by any
person or corporation subject to regulation by the commission during
the term he or she is a member of the commission, or within two years
after he or she ceases to be a member of the commission.
(b) 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
19990 of the Government Code.
(d) No person who is a member or employee of the commission shall
participate personally and substantially as a member or employee of
the commission, in any matter in which, to his or her knowledge, he
or she, his or her spouse, minor child, or partner, or any
organization 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 her or his
appointment as a member of the commission, has a direct or indirect
financial interest.
(e) No person who is a partner, employer, or employee of a member
or employee of the commission shall act as an attorney, agent, or
employee for any person other than the state in connection with any
matter in which the commission is a party or has a direct and
substantial interest.
(f) 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 in the state prison,
or both.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.