BILL NUMBER: SB 204 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 10, 2005
AMENDED IN SENATE APRIL 18, 2005
INTRODUCED BY Senator Bowen
FEBRUARY 10, 2005
An act 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 commission memberships.
LEGISLATIVE COUNSEL'S DIGEST
SB 204, as amended, Bowen. Public Utilities Commission: State
Energy Resources Conservation and Development Commission: commission
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
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 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 CPUC regulation. The bill would prohibit CPUC
members from being employed by a person or corporation subject to
CPUC regulation, while a member of the CPUC or within 2 years
thereafter. The bill would prohibit CPUC members from holding any
other public office or position. The bill would require 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 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 CPUC. The bill would
prohibit any person who is a partner, employer, or employee of a
member or employee of the CPUC from acting as an attorney, agent, or
employee for any person other than the state in connection with any
matter in which the CPUC is a party or has a direct and substantial
interest. The bill would make a violation of these provisions a
felony misdemeanor , 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
become 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 or her 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 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.
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: yes.
State-mandated local program: 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 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, or
who engages in the sale or manufacture
of any major component of any facility. No member of the commission
shall be employed by any person or corporation subject to regulation
by the commission, including an 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
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, 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
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
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 in the state prison,
or both.
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 person or corporation subject to regulation by the
commission, 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 June 1, 2006, in a
manner consistent with applicable law.
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. misdemeanor, and is punishable by a
fine of not more than ten thousand dollars ($10,000), by imprisonment
in the county jail for not more than one year, or both, for each
violation.
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.