BILL ANALYSIS Ó
AB 853
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
853 (Roger Hernández) - As Amended April 30, 2015
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Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY:
This bill requires electrical or gas corporations to utilize
direct employees for any work associated with its infrastructure
and computer systems. Specifically, this bill:
AB 853
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1)Requires an electrical or gas corporation, to the extent
feasible, to utilize direct employees for any work associated
with the design, engineering, and operation of its nuclear,
electrical, and gas infrastructure, including all computer and
information technology systems.
2)Defines direct employees for construction or maintenance work
to include the employees of a contractor or subcontractor
licensed in California working under the direct supervision of
the electrical or gas corporation.
3)Requires an electrical or gas corporation, before utilizing
direct employees, to file a Tier 3 advice letter with the
Public Utilities Commission (PUC) that demonstrates that the
work can be performed safely and securely, and without
jeopardizing the security of its nuclear, electrical, and gas
infrastructure.
4)Requires the PUC to open a proceeding, or expand the scope of
an existing proceeding, to evaluate the advice letter and hold
at least one duly noticed public hearing.
5)Requires the PUC to issue a written decision determining
whether the electrical or gas corporation may utilize persons
that are not direct employees for the described work.
6)Declares existing law specifies a person or corporation owning
or operating a qualifying facility pursuant to federal law or
a facility that is an exempt wholesale generator is not an
electrical corporation due to the ownership or operation of
that facility.
FISCAL EFFECT:
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Increased costs to in the $200,000 range (special fund) for the
PUC to review advice letters and conduct proceedings.
COMMENTS:
1)Purpose. According to the author, recent intrusions into
major corporate computer systems such as Sony and Antham Blue
Cross and theft of information from those systems have
demonstrated the vulnerability of those systems. This bill
will prohibit electrical or gas corporations from outsourcing
critical nuclear, electrical and gas infrastructure work
without first obtaining approval from the PUC.
2)Background. Recently, Southern California Edison (SCE)
announced plans to lay off hundreds of employees and hire
foreign workers. SCE announced that it was laying off about
400 information technology employees, with an additional 100
leaving voluntarily. SCE said that it was outsourcing some
tech-related work to two Indian companies, Infosys in
Bangalore and Tata Consultancy Services in Mumbai, after
looking at multiple firms.
In March 2015, the United States Senate Judiciary Committee
held a hearing focused on problems with foreign workers and
visa programs. The hearing noted that visas are used to bring
high-skilled workers into the US to attract world-class talent
and lead in the global arena. However, the hearing
highlighted stories of abuses causing the displacement of
American workers and noted visa programs are to complement the
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US workforce, not displace it.
3)Drafting Considerations. The Tier 3 advice letter process is
different than a formal proceeding and results in resolutions,
while a proceeding results in decisions. If the author
intends the bill to require a formal proceeding to consider
the use of outside employees, he may wish to consider
requiring the electrical or gas corporations to file an
application rather than an advice letter.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081