BILL NUMBER: SB 204 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 29, 2006
PASSED THE ASSEMBLY AUGUST 24, 2006
AMENDED IN ASSEMBLY MAY 23, 2006
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 the Public Utilities Code, relating to
commission memberships.
LEGISLATIVE COUNSEL'S DIGEST
SB 204, Bowen Public Utilities Commission: State Energy Resources
Conservation and Development Commission: commission memberships.
(1) 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. Existing law makes the violation of these provisions a
felony subject to fine and imprisonment, or both.
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. Because a
violation of the bill's provisions would be a crime, this bill would
impose a state-mandated local program by expanding the definition of
an existing crime.
(2) Existing law prohibits members of the California Public
Utilities Commission (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 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 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, 2007, to adopt an updated
Conflict of Interest Code and Statement of Incompatible Activities.
(3) 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.
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 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, 2007, in a
manner consistent with applicable law.
SEC. 3. 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.