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.
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.
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 Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act's purposes upon a 23 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.