BILL NUMBER: AB 861 AMENDED BILL TEXT AMENDED IN SENATE MAY 14, 2012 AMENDED IN ASSEMBLY MAY 27, 2011 INTRODUCED BY AssemblyMembersHilland NestandeMember Hill FEBRUARY 17, 2011An act to add a heading as Article 1 (commencing with Section 104100) to, and to add Article 2 (commencing with Section 104141) to, Chapter 1 of Part 1 of Division 103 of, the Health and Safety Code, relating to stroke.An act to add Part 14 (commencing with Section 14640) to Division 3 of Title 1 of the Corporations Code, and to amend Sections 2110 and 2111 of, and to add Sections 451.6 and 451.7 to, the Public Utilities Code, relating to public utilities. LEGISLATIVE COUNSEL'S DIGEST AB 861, as amended, Hill.California Stroke Registry.Public Utilities Act: remedies for violation: gas and electrical corporation executive officer compensation incentives. (1) The California Constitution establishes the Public Utilities Commission, with regulatory jurisdiction over all public utilities, as defined. The Public Utilities Act provides that every public utility and every officer, agent, or employee of a public utility, who violates or fails to comply with, or who procures, aids, or abets any violation by any public utility of any provision of the California Constitution or of the act, or who fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, or who procures, aids, or abets any public utility in a violation or noncompliance, in a case in which a penalty has not otherwise been provided, is guilty of a misdemeanor and is punishable by a fine not exceeding $1,000, or by imprisonment in a county jail not exceeding one year, or by both fine and imprisonment. This bill would provide that the fine may not exceed $5,000. (2) The act additionally provides that every corporation or person, other than a public utility and its officers, agents, or employees, knowingly violating or failing to comply with, or procuring, aiding, or abetting any violation of the California Constitution relating to public utilities or of the act, or that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, or procuring, aiding, or abetting any public utility in a violation or noncompliance, in a case in which a penalty has not otherwise been provided, is subject to a penalty of not less than $500, or more than $20,000, for each offense. This bill would increase the penalty to not less than $1,000 and not more than $1,000,000 for each offense. (3) Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires that any expense resulting from a bonus paid to an executive officer, as defined, of a public utility that has ceased to pay its debts in the ordinary course of business, be borne by the shareholders of the public utility and prohibits any expense from being recovered in rates. This bill would require that any expense resulting from an earnings- or stock price-based incentive program paid to an executive officer of an electrical or gas corporation be borne by the shareholders of the utility and would prohibit any expense from being recovered in rates. Because this provision of the bill would be a part of the act and because a violation of an order or decision of the commission implementing this requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. (4) This bill would require the commission to require an energy utility, as defined, to prohibit compensation, as defined, to utility officers, as defined, if the energy utility does not implement a policy that, in the event a fine or penalty is levied by the commission, the energy utility would recover a proportional amount of the incentive-based compensation, as defined, received by any current or former officers of the energy utility during the 5-year period preceding the date on which the fine or penalty was levied in excess of what would have been paid to the officers in incentive-based compensation had the fine or penalty been levied during the period in which the violation that resulted in the fine or penalty occurred. (5) The General Corporation Law authorizes and regulates the formation and governance of general corporations. This bill would require a holding company of an investor-owned energy utility, as defined, in the event a fine or penalty is levied by the commission on the investor-owned energy utility, to recover a proportional amount of the incentive-based compensation, as defined, received by any current or former officers of the utility holding company during the 5-year period preceding the date on which the fine or penalty was levied in excess of what would have been paid to the officers in incentive-based compensation had the fine or penalty been levied during the period in which the violation that resulted in the fine or penalty occurred. (6) 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.Existing law authorizes the State Department of Public Health to perform studies, demonstrate innovative methods, and disseminate information relating to the protection, preservation, and advancement of public health.This bill would establish the California Stroke Registry, to be administered by the State Department of Public Health, as specified, to serve as a centralized repository for stroke data to promote quality improvement for acute stroke treatment. The bill would require that the program be implemented only to the extent funds from federal or private sources are made available for this purpose.Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:noyes . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Part 14 (commencing with Section 14640) is added to Division 3 of Title 1 of the Corporations Code , to read: PART 14. PUBLIC UTILITY HOLDING COMPANIES 14640. For purposes of this part, the following terms have the following meanings: (a) "Commission" means the Public Utilities Commission. (b) "Holding company" means an entity with ownership of 80 percent or more of an investor-owned energy utility. (c) "Incentive-based compensation" means, including, but not limited to, short-term incentives, long-term incentives, stock options awarded as compensation, and special recognition awards. (d) "Investor-owned energy utility" means a gas corporation, as defined in Section 222, an electrical corporation, as defined in Section 218, of the Public Utilities Code, or one that is both a gas corporation and an electrical corporation. (e) "Officer" means a person required to file under Section 16 of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.) with respect to an investor-owned energy utility or a utility holding company of an investor-owned energy utility. 14641. In the event a fine or penalty is levied by the commission on an investor-owned energy utility, the holding company shall recover a proportional amount of the incentive-based compensation received by any current or former officers of the holding company during the five-year period preceding the date on which the fine or penalty was levied in excess of what would have been paid to the officers in incentive-based compensation had the fine or penalty been levied during the period in which the violation that resulted in the fine or penalty occurred. SEC. 2. Section 451.6 is added to the Public Utilities Code , to read: 451.6. (a) Any expense resulting from an earnings- or stock price-based incentive program paid to an executive officer of an electrical corporation or a gas corporation shall not be recoverable either directly or indirectly in rates and shall be borne exclusively by the shareholders of the public utility. (b) For purposes of this section, "executive officer" means any person who performs policymaking functions and is employed by the electrical corporation or gas corporation subject to the approval of the board of directors, and includes the president, secretary, treasurer, and any vice president in charge of a principal business unit, division, or function of the utility. SEC. 3. Section 451.7 is added to the Public Utilities Code , to read: 451.7. (a) For purposes of this section, the following terms have the following meanings: (1) "Compensation" means, but is not limited to, base pay, health and welfare benefits, retirement benefits, and other benefit programs. (2) "Energy utility" means a gas corporation, an electrical corporation, or that is both a gas corporation and an electrical corporation. (3) "Incentive-based compensation" means, but is not limited to, short-term incentives, long-term incentives, stock options awarded as compensation, and special recognition awards. (4) "Officer" means a person required to file under Section 16 of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.) with respect to an energy utility. (b) The commission shall require an energy utility to prohibit compensation to utility officers if the energy utility does not implement a policy that, in the event a fine or penalty is levied by the commission, the energy utility shall recover a proportional amount of the incentive-based compensation received by any current or former officers of the energy utility during the five-year period preceding the date on which the fine or penalty was levied in excess of what would have been paid to the officers in incentive-based compensation had the fine or penalty been levied during the period in which the violation that resulted in the fine or penalty occurred. SEC. 4. Section 2110 of the Public Utilities Code is amended to read: 2110. Every public utility and every officer, agent, or employee of any public utility, who violates or fails to comply with, or who procures, aids, or abets any violation by any public utility of any provision of theConstitution of this stateCalifornia Constitution or of this part, or who fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, or who procures, aids, or abets any public utility insuchthe violation or noncompliance in a case in which a penalty has not otherwise been provided, is guilty of a misdemeanor and is punishable by a fine not exceedingonefive thousand dollars($1,000)($5,000) , or by imprisonment in a county jail not exceeding one year, or by bothsuchfine and imprisonment. SEC. 5. Section 2111 of the Public Utilities Code is amended to read: 2111. Every corporation or person, other than a public utility and its officers, agents, or employees, which or who knowingly violates or fails to comply with, or procures, aids or abets any violation of any provision of theConstitution of this stateCalifornia Constitution relating to public utilities or of this part, or fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, or who procures, aids, or abets any public utility insuchthe violation or noncompliance, in a case in which a penalty has not otherwise been provided forsuchthe corporation or person, is subject to a penalty of not less thanfive hundredone thousand dollars($500)($1,000) , nor more thantwenty thousand dollars ($20,000)one million dollars ($1,000,000) for each offense. SEC. 6. 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.SECTION 1.The Legislature finds and declares all of the following: (a) Stroke, also known as cerebrovascular accident or brain attack, is the third leading cause of death and the leading cause of severe, long-term disability and death in California. (b) Stroke kills approximately 15,585 Californians each year and accounts for almost 200,000 hospitalizations. (c) The rapid identification, diagnosis, and treatment of stroke can save the lives of stroke patients and in some cases can reverse neurological damage, such as paralysis and speech and language impairments, leaving stroke patients with few or no neurological deficits.SEC. 2.The heading of Article 1 (commencing with Section 104100) is added to Chapter 1 of Part 1 of Division 103 of the Health and Safety Code, to read: Article 1. High Blood PressureSEC. 3.Article 2 (commencing with Section 104141) is added to Chapter 1 of Part 1 of Division 103 of the Health and Safety Code, to read: Article 2. California Stroke Registry 104141. (a) The State Department of Public Health shall establish a statewide California Stroke Registry. The purpose of this registry is to serve as a centralized repository for stroke data to promote quality improvement for acute stroke treatment. The registry shall align with the stroke consensus metrics developed by national health organizations such as the federal Centers for Disease Control and Prevention, The Joint Commission, the American Heart Association, and the American Stroke Association. The acquisition of data for the registry shall be by voluntary reports and encompass all areas of the state for which stroke data are available. (b) The registry shall be under the direction of the director and housed within the California Heart Disease and Stroke Prevention Program. The cardiovascular disease program may accept, on behalf of the state, grants of public or private funds. (c) The department may contract with an agency, including, but not limited to, a health systems agency, single county health department, or multicounty health department groupings, representing a designated reporting region for the purposes of collecting and collating acute stroke data. (d) The department may contract, or provide grant awards, to implement public health activities to fulfill required funding award objectives. (e) In establishing the registry, the director shall: (1) Maintain a statewide stroke database that compiles information and statistics voluntarily reported on stroke care. To the extent possible, the department shall coordinate with the organizations specified in subdivision (a) to avoid duplication and redundancy in data collection. (2) Recommend that hospitals and emergency medical services agencies report case-specific data that is voluntarily reported on the treatment of individuals with suspected acute stroke to the representative of the department authorized to compile the stroke data, or any individual, agency, or organization designated to cooperate with that representative. (3) Encourage sharing of information and data among health care providers to improve the quality of care for stroke. (4) Facilitate the communication and analysis of health information and data among the health care professionals providing care for individuals with stroke. (5) Consult with the Stroke Advisory Committee regarding ways in which to improve the quality of stroke care and delivery in California. (f) All information collected pursuant to this section shall be confidential. For purposes of this section, this information shall be referred to as "confidential information." 104141.5. (a) Persons with a valid scientific interest who are engaged in demographic, epidemiological, or other similar studies related to health, and who meet qualifications determined by the department, and who agree, in writing, to maintain confidentiality, may be authorized to access confidential information for research purposes. An entity that receives confidential information from the department shall ensure the confidentiality of the information. The department shall provide only information that does not identify individual cases or institutional or individual sources of information. Before confidential information is disclosed for study, researchers shall do both of the following: (1) Obtain approval of their committee for the protection of human subjects established in accordance with Part 46 (commencing with Section 46.101) of Title 45 of the Code of Federal Regulations. (2) Provide documentation to the department that demonstrates to the department's satisfaction that the entity has established the procedures and ability to maintain the confidentiality of the information. (b) Notwithstanding any other law, any disclosure authorized by this section shall include only the information necessary for the stated purpose of the requested disclosure, used for the approved purpose, and not be further disclosed. (c) The furnishing of confidential information to the department or its authorized representative in accordance with this section shall not expose any person, agency, or entity furnishing information to liability, and shall not be considered a waiver of any privilege or a violation of a confidential relationship. (d) The department shall maintain an accurate record of all persons who are given access to confidential information. The record shall include the name of the person authorizing access; name, title, address, and organizational affiliation of persons given access; dates of access; and the specific purpose for which information is to be used. The record of access shall be open to public inspection during normal operating hours of the department. (e) Notwithstanding any other law, no part of the confidential information shall be available for subpoena, nor shall it be disclosed, discoverable, or compelled to be produced in any civil, criminal, administrative, or other proceeding, nor shall this information be deemed admissible as evidence in any civil, criminal, administrative, or other tribunal or court for any reason. (f) This section shall not prohibit the publication of reports and statistical compilations that do not in any way identify individual cases or institutional or individual sources of information. (g) Notwithstanding the restrictions in this section, the individual to whom the information pertains shall have access to his or her own information in accordance with Chapter 1 (commencing with Section 1798) of Title 1.8 of the Civil Code. 104142. For the purpose of this article, stroke means either of the following: (a) Ischemic stroke, defined as an occlusion of a blood vessel that blocks blood flow to the brain, depriving the brain of oxygen, and resulting in brain tissue death. This definition includes transient ischemic attacks, defined as stroke-like symptoms for less than 24 hours. (b) Hemorrhagic stroke, defined as a rupture of a blood vessel, resulting in bleeding into or around the brain. 104142.5. Nothing in this article shall preempt the authority of facilities or individuals providing diagnostic or treatment services to patients with stroke to maintain their own facility-based stroke registries. 104143. This article shall not be construed as a medical practice guideline and shall not be used to restrict the authority of a hospital to provide services for which it has received a license under state law. 104143.5. This article shall be implemented only to the extent funds from federal or private sources are made available for this purpose. 104144. All contracts with, and the utilization of, the program's fiscal intermediary shall not be subject to Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.