State employees and officers: conflicts of interest.

Senator Hurtado's proposed legislation outlines a framework to establish new conflict-of-interest regulations for California state employees and officers, focusing on financial interests and official conduct. The bill directs future legislation to prohibit state employees from holding financial interests in sectors they regulate without written approval and requires departments to identify and document potential conflicts through the Department of Human Resources.

The measure would institute mandatory annual economic interest disclosures for all state employees, with updates required within 10 days of any changes. Employees would need to recuse themselves from decisions affecting their financial interests, and departments would document and publicly disclose these recusals. The bill also addresses the use of official positions, prohibiting state employees from leveraging their roles for personal or family financial gain, accepting gifts from regulated entities, or using state resources for private advantage.

Implementation would occur through department-specific policies developed under Department of Human Resources guidance, with standardized procedures for reviewing and approving exceptions. The Fair Political Practices Commission would conduct periodic compliance audits, while violations could result in disciplinary action, including termination. Any agreements or decisions made in violation of these provisions would become void and unenforceable.

The legislation builds upon existing conflict-of-interest regulations in the Political Reform Act of 1974, which currently requires certain state officials to file economic interest statements and prohibits incompatible activities. These new provisions would apply uniformly across state government, with departments maintaining authority to grant exceptions when financial interests pose no material risk to duty performance or public trust.