| Last Version Text |
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<ns0:Id>20250SB__040198AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-14</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-25</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>401</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Hurtado</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Hurtado</ns0:Name>
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<ns0:Title>An act to add Section 87106 to the Government Code, relating to the Political Reform Act of 1974.</ns0:Title>
<ns0:RelatingClause>the Political Reform Act of 1974</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Political Reform Act of 1974: state employees: financial interests.</ns0:Subject>
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<ns0:DigestText>
<html:p>The Political Reform Act of 1974 prohibits a public official, including an employee of a state agency, from using their official position to make, participate in making, or influence a governmental decision in which the official knows or has reason to know that the official has a financial interest, as specified. Any person who knowingly or willfully violates the act is guilty of a misdemeanor.</html:p>
<html:p>This bill would further prohibit an employee of a state agency from owning or controlling a financial interest in any business entity that is subject to the regulatory authority of the state agency, or that does business with the state agency. The bill would authorize the head of a state agency to grant an employee a waiver from this prohibition only upon a finding that ownership or control of the financial interest is otherwise consistent
with the act and that the employee will not make, participate in making, or attempt to influence a governmental decision in which the employee has a financial interest. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
<html:p>
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a
<ns0:Fraction>
<ns0:Numerator>2</ns0:Numerator>
<ns0:Denominator>3</ns0:Denominator>
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vote of each house of the Legislature and compliance with specified procedural requirements.
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<html:p>This bill would declare that it furthers
the purposes of the act.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_349F2E5B-D05C-40EB-A171-1F53AD21C698">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 87106 is added to the
<ns0:DocName>Government Code</ns0:DocName>
, to read:
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<ns0:Num>87106.</ns0:Num>
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(a)
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An employee of a state agency shall not own or control a financial interest in any business entity that is subject to the regulatory authority of the state agency, or that does business with the state agency, except as provided in subdivision (b).
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<html:p>
(b)
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(1)
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(A)
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An employee of a state agency may request from the head of the state agency a written waiver exempting them from the prohibition in subdivision (a).
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<html:p>
(B)
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The head of the state agency may approve the request for a waiver only upon a finding that both of the following conditions are satisfied:
</html:p>
<html:p>
(i)
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Ownership or
control of the financial interest is otherwise consistent with the requirements of this title.
</html:p>
<html:p>
(ii)
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The employee will not make, participate in making, or attempt to influence a governmental decision in which the employee has a financial interest pursuant to Section 87100.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The decision of the head of the state agency to approve or deny the waiver is final.
</html:p>
<html:p>
(ii)
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The written approval or denial of the waiver constitutes a public record subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This subdivision does not authorize the head of the state agency to waive the requirements of Section 87100, Section 1090, or any other law relating to conflicts of
interest.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission shall adopt regulations for purposes of implementing this section, and it shall provide advisory opinions on the meaning of this section upon request.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “financial interest” has the same meaning as specified in Section 87103.
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<ns0:BillSection id="id_3B0F011D-A698-4FF0-96EC-1A1C43102C31">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
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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
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B of the California Constitution.
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</ns0:BillSection>
<ns0:BillSection id="id_8A2314CF-F836-45AF-BAC9-1047AC885082">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.</html:p>
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| Last Version Text Digest |
The Political Reform Act of 1974 prohibits a public official, including an employee of a state agency, from using their official position to make, participate in making, or influence a governmental decision in which the official knows or has reason to know that the official has a financial interest, as specified. Any person who knowingly or willfully violates the act is guilty of a misdemeanor. The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2 3 vote of each house of the Legislature and compliance with specified procedural requirements. This bill would declare that it furthers the purposes of the act. |