Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 874

Introduced by Assembly Member Williams

February 22, 2013

An act to begin delete amend Section 16645 of the Government Code end delete begin insert add Section 468 to the Public Utilities Code end insert , relating to begin delete state funds end delete begin insert union organizing end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 874, as amended, Williams. begin delete State funds: end delete begin insert Public utilities: end insert unionization.

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The California Constitution establishes the Public Utilities Commission (PUC), with regulatory jurisdiction over all public utilities, as defined. Existing law authorizes the PUC 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.

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This bill would require that any expense incurred by a public utility in assisting or deterring union organizing, as defined, is not recoverable either directly or indirectly in the utility’s rates and is required to be borne exclusively by the shareholders of the public utility.

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Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

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Because the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law prohibits a grant recipient, state contractor, public employer, or private employer who receives state funds and meets other requirements from using state funds to assist, promote, or deter union organizing.

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This bill would make technical, nonsubstantive changes to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

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begin insert Section 468 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

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begin insert 468. end insert   

(a) For purposes of this section, “expense incurred by a
public utility in assisting or deterring union organizing” means
costs incurred in communicating with employees, or employees of
the utility’s contractors, in an effort to persuade them to join or
support, or to not join or support, a labor organization.

(b) Any expense incurred by a public utility in assisting or
deterring union organizing shall not be recoverable either directly
or indirectly in the utility’s rates and shall be borne exclusively
by the shareholders of the public utility.

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begin insert SEC. 2. end insert   

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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.

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begin delete

SECTION 1.  

Section 16645 of the Government Code is amended
to read:

16645.  

For purposes of this chapter, the following definitions
shall apply:

(a) “Assist, promote, or deter union organizing” means any
attempt by an employer to influence the decision of its employees
in this state or those of its subcontractors regarding either of the
following:

(1) Whether to support or oppose a labor organization that
represents or seeks to represent those employees.

(2) Whether to become a member of any labor organization.

(b) “Employer” means any individual, corporation,
unincorporated association, partnership, government agency or
body, or other legal entity that employs more than one person in
the state.

(c) “State contractor” means any employer that receives state
funds for supplying goods or services pursuant to a written contract
with the state or any of its agencies. “State contractor” includes
an employer that receives state funds pursuant to a contract
specified in paragraph (2) of subdivision (d). For purposes of this
chapter, the contract shall be deemed to be a contract with a state
agency.

(d) (1) “State funds” means any money drawn from the State
Treasury or any special or trust fund of the state.

(2) “State funds” includes any money appropriated by the state
and transferred to any public agency, including a special district,
that is used by the public agency to fund, in whole or in part, a
service contract in excess of two hundred fifty thousand dollars
($250,000).

(e) “State property” means any property or facility owned or
leased by the state or any state agency.

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