BILL NUMBER: SB 434	CHAPTERED
	BILL TEXT

	CHAPTER  546
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2014
	PASSED THE SENATE  AUGUST 18, 2014
	PASSED THE ASSEMBLY  AUGUST 14, 2014
	AMENDED IN ASSEMBLY  AUGUST 11, 2014
	AMENDED IN SENATE  JANUARY 6, 2014
	AMENDED IN SENATE  MAY 24, 2013
	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 29, 2013
	AMENDED IN SENATE  APRIL 24, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Hill

                        FEBRUARY 21, 2013

   An act to amend Section 854.5 of the Public Utilities Code,
relating to the Public Utilities Commission.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 434, Hill. Public Utilities Commission: removal of a
commissioner.
   The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities, and provides
that the Legislature may remove a commissioner for incompetence,
neglect of duty, or corruption, 2/3 of the membership of each house
concurring. Existing law prohibits the commission, by order,
decision, motion, settlement, or other action, from establishing a
nonstate entity, as defined, with any moneys other than those moneys
that would otherwise belong to the public utility's shareholders.
That law prohibits the commission from entering into a contract with
any nonstate entity in which a person serves as an owner, director,
or officer while serving as a commissioner. That law additionally
provides that, beginning June 1, 2014, a commissioner who acts as an
owner, director, or officer of a nonstate entity that was established
prior to January 1, 2014, as a result of an order, decision, motion,
settlement, or other action by the Public Utilities Commission in
which the commissioner participated, neglects his or her duty and may
be removed pursuant to the California Constitution.
   This bill would provide that, beginning June 1, 2014, a
commissioner who acts as an owner, director, or officer of a nonstate
entity that was established as a result of an order, decision,
motion, settlement, or other action by the Public Utilities
Commission in which the commissioner participated, neglects his or
her duty and may be removed pursuant to the California Constitution,
irrespective of when the nonstate entity was established.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 854.5 of the Public Utilities Code is amended
to read:
   854.5.  (a) For purposes of this section, a "nonstate entity"
means a company, corporation, partnership, firm, or other entity or
group of entities, whether organized for profit or not for profit.
   (b) The commission, by order, decision, motion, settlement, or
other action, shall not establish a nonstate entity with any moneys
other than those moneys that would otherwise belong to the public
utility's shareholders. A nonstate entity to be created with moneys
from a public utility's shareholders shall be subject to a 30-day
review by the Joint Legislative Budget Committee prior to creation.
This subdivision does not limit the authority of the commission to
form an advisory committee or other body whose budget is subject to
oversight by the commission and the Department of Finance.
   (c) The commission shall not enter into a contract with a nonstate
entity in which a person serves as an owner, director, or officer
while serving as a commissioner. Any contract between the commission
and a nonstate entity shall be void and cease to exist by operation
of law, if a commissioner, who was a commissioner at the time the
contract was awarded, entered into, or extended, becomes, on or after
January 1, 2014, an owner, director, or officer of the nonstate
entity while serving as a commissioner.
   (d) Beginning June 1, 2014, a commissioner who acts as an owner,
director, or officer of a nonstate entity that was established as a
result of an order, decision, motion, settlement, or other action by
the commission in which the commissioner participated, neglects his
or her duty pursuant to Section 1 of Article XII of the California
Constitution, and as a result the commissioner may be removed
pursuant to that section by the Legislature, two-thirds of the
membership of each house concurring.