Bill Text: CA SB1156 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Groundwater sustainability agencies: conflicts of interest: financial interest disclosures.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2024-09-22 - Chaptered by Secretary of State. Chapter 458, Statutes of 2024. [SB1156 Detail]

Download: California-2023-SB1156-Amended.html

---

Amended  IN  Senate  April 29, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1156

---

Introduced by Senator Hurtado

February 14, 2024

---

An act to add Section 10724.1 to the Water Code, relating to groundwater. An act to add Section 87200.5 to the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL'S DIGEST

SB 1156, as amended, Hurtado. Groundwater sustainability agencies: conflicts of interest: financial interest disclosures.

Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans, except as specified. Existing law requires a groundwater sustainability plan to be developed and implemented for each medium- or high-priority basin by a groundwater sustainability agency. Existing law authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin, as provided.

Existing provisions of the The Political Reform Act of 1974 prohibit prohibits a public official from making, participating in making, or attempting to use their official position to influence a governmental decision in which they know or have reason to know that they have a financial interest, as defined. The act requires specified public officials, including elected state officers, judges and court commissioners, members of certain boards and commissions, other state and local public officials, and candidates for these positions to file statements of economic interests, annually and at other specified times, that disclose their investments, interests in real property, income, and business positions. The Fair Political Practices Commission is the filing officer for such statements filed by statewide elected officers and candidates and other specified public officials. However, existing law permits a public official to make or participate in the making of a governmental decision, even if the public official knows or has reason to know that the official has a financial interest, if the official’s participation is legally required for the action or decision to be made. Existing law makes a knowing or willful violation of the act a misdemeanor and subjects offenders to criminal penalties.

This bill would require members of the executive team, board of directors, and other groundwater management decision makers of groundwater sustainability agencies to annually disclose any economic or financial interests pursuant to the Political Reform Act of 1974 that may reasonably be considered to affect their decision-making related to groundwater management, as provided. Because it would expand the scope of a crime, this bill would impose a state-mandated local program. file statements of economic interests according to the filing requirements described above. The bill would require that these statements be filed with the Fair Political Practices Commission Commission, and would require the commission to establish guidelines and procedures for the submission and review of those disclosures. The bill would authorize the commission to investigate and take appropriate enforcement actions for violations of the disclosure requirements. the statements.

Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties. 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 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.

Digest Key

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

---

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares it is essential to establish mechanisms that promote transparency, prevent conflicts of interest, and ensure accountability within groundwater sustainability agencies to safeguard the sustainable management of groundwater resources.

SEC. 2.

 Section 87200.5 is added to the Government Code, to read:

87200.5.

 (a) (1) Members of the executive team, the board of directors, and other groundwater management decision makers of groundwater sustainability agencies shall file statements of economic interests in accordance with this article that disclose any financial interests that may reasonably be considered to affect their decision-making related to groundwater management.

(2) The statements of economic interests required by this section shall be filed with the Commission in a format specified by the Commission.

(b) The statements of economic interests required by this section shall include, but not be limited to, information on all of the following:

(1) Investments, ownership, or financial interests in entities engaged in groundwater related activities or that may be impacted by groundwater related activities.

(2) Receipts of gifts, loans, or other economic benefits due to the person’s role in groundwater management.

(3) Other financial interests that may reasonably influence decision-making pursuant to Article 1 (commencing with Section 87100) or this article.

(c) (1) The Commission shall establish guidelines and procedures for the submission and review of statements of economic interests required by this section.

(2) The Commission may investigate and take appropriate enforcement actions for violations of this section.

SEC. 2.Section 10724.1 is added to the Water Code, to read:

10724.1.

(a)(1)Members of the executive team, the board of directors, and other groundwater management decision makers of groundwater sustainability agencies shall annually disclose any economic or financial interests as required pursuant to Article 2 (commencing with Section 87200) of Chapter 7 of Title 9 of the Government Code that may reasonably be considered to affect their decision-making related to groundwater management.

(2)The disclosures shall be submitted to the Fair Political Practices Commission in a format specified by the commission.

(b)The disclosure shall include, but not be limited to, information on all of the following:

(1)Investments, ownership, or financial interests in entities engaged in groundwater related activities or that may be impacted by groundwater related activities.

(2)Receipts of gifts, loans, or other economic benefits due to the person’s role in groundwater management.

(3)Other economic or financial interests that may reasonably influence decision-making pursuant to Article 1 (commencing with Section 87100) of, and Article 2 (commencing with Section 87200) of, Chapter 7 of Title 9 of the Government Code.

(c)(1)The Fair Political Practices Commission shall establish guidelines and procedures for the submission and review of disclosures required pursuant to this section.

(2)The commission may investigate and take appropriate enforcement actions for violations of the disclosure requirements.

(d)Failure to comply with the disclosure requirements pursuant to this section may result in penalties pursuant to Chapter 11 (commencing with Section 91000) of Title 9 of the Government Code.

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.

SEC. 4.

 The Legislature finds and declares that this act furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.