BILL ANALYSIS Ó
AB 853
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6/22/2015: Changes per consultant
ASSEMBLY THIRD READING
AB
853 (Roger Hernández)
As Amended April 30, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+--------------------|
|Utilities |10-4 |Rendon, Bonilla, |Patterson, |
| | |Burke, Eggman, |Achadjian, Hadley, |
| | |Cristina Garcia, |Obernolte |
| | |Roger Hernández, | |
| | |Quirk, Santiago, | |
| | |Ting, Williams | |
| | | | |
|----------------+------+--------------------+--------------------|
|Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Gallagher, Jones, |
| | |Eggman, |Wagner |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, | |
| | |Weber, Wood | |
| | | | |
AB 853
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SUMMARY: Requires an electrical or gas corporation to utilize
direct employees for any work associated with its infrastructure
and computer systems, as specified. Specifically, this bill:
1)Requires an electrical or gas corporation, to the extent
feasible, 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 and working under the direct supervision
of the electrical or gas corporation.
3)Requires an electrical or gas corporation, before utilizing
non-direct employees, to file a Tier 3 advice letter with the
California Public Utilities Commission (CPUC) 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 CPUC 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 for the proceeding.
5)Requires the CPUC to issue a written decision determining
whether the electrical or gas corporation may utilize persons
that are not direct employees for the described work.
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FISCAL EFFECT: According to the Assembly Appropriations
Committee, increased costs in the $200,000 range (special fund)
for the CPUC to review advice letters and conduct proceedings.
COMMENTS:
1)Author's Statement: "Protecting the security of nuclear,
electric and natural gas utility systems (as well as the privacy
of ratepayer personal information) is a paramount state
interest. However, recent intrusions into major corporate
computer systems such as Sony and Anthem Blue Cross and theft of
information from those systems have demonstrated the
vulnerability of those systems ? Electrical corporations and gas
corporations should make every reasonable effort to protect
their computer systems from unauthorized intrusions.
Unfortunately, recent events have raised concerns about the
safety and security of such systems ? AB 853 will prohibit an
electric or gas corporation from outsourcing critical nuclear,
electrical and gas infrastructure work, including computer and
information technology systems, without first obtaining approval
from the Public Utilities Commission."
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 addition, some of the foreign workers hired by SCE are in the
United States because of the H-1B visa. In March 2015, the
United States Senate Judiciary Committee held a hearing on
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problems with the H-1B and other visa programs. The hearing
noted that the visas are used to bring high-skilled workers into
the United States so that companies can continue to attract
world-class talent and continue to lead on the global stage.
However, the hearing highlighted troubling stories of abuses
that have caused the displacement of American workers, and noted
that these visa programs are to be used to complement the United
States workforce, not displace it.
3)Security of Utility Infrastructure: In light of the recent
intrusions into major corporate computer systems, the bill notes
that the part of any computer system that is most vulnerable to
being compromised is the personnel who operate the system. This
bill would require an electrical or gas corporation to use
direct employees for any work associated with the design,
engineering, and operation of its nuclear, electrical, and gas
infrastructure, including all computer and information systems,
to the extent feasible. Furthermore, this bill would prohibit
an electrical or gas corporation from using a non-direct
employee, unless it files a Tier 3 advice letter with the CPUC
that demonstrates that the work can be performed safely and
securely, and without jeopardizing the security of the utilities
infrastructure. The CPUC then must open or expand the scope of
a proceeding to evaluate the advice letter over at least one
public hearing and issue a written decision determining whether
the electrical or gas corporation may utilize the non-direct
employee for the described work.
Analysis Prepared by:
Edmond Cheung / U. & C. / (916) 319-2083 FN:
0000607
AB 853
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