BILL ANALYSIS Ó AB 1023 Page 1 Date of Hearing: April 27, 2015 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Anthony Rendon, Chair AB 1023 (Rendon) - As Amended April 20, 2015 SUBJECT: Public Utilities Commission: proceedings: ex parte communications SUMMARY: This bill would require the California Public Utilities Commissions (CPUC) policy to establish and maintain a weekly communications log summarizing all oral or written ex parte communications, as specified. Specifically, this bill: a)Requires the CPUC to establish and maintain a weekly communications log summarizing all oral or written ex parte communications made in that week. b)Requires the communications log to include a summary of all oral and written communications that meet the definition of an ex parte communication that occur between a person with an interest in a matter before the CPUC and a commissioner, advisor to a commissioner appointed, executive director of the CPUC, deputy executive director, a division director, or an administrative law judge. c)Requires that each communication log include the date of each communication, the persons involved in the communication, and AB 1023 Page 2 to the extent known, and any proceedings that were the subject of each communication. d)Requires each communications log to be posted on the CPUCs website. EXISTING LAW: 1)Requires the CPUC to determine whether a proceeding requires a hearing, and whether the matter requires a quasi-legislative, an adjudication, or a ratesetting hearing. (Public Utilities Code Section 1701.1) 2)Requires the CPUC to establish regulations regarding ex parte communication on case categorization issues. (Public Utilities Code Section 1701.1) 3)Requires the CPUC, upon initiating a hearing, to assign one or more commissioners to oversee the case and an administrative law judge where appropriate. The assigned commissioner shall schedule a prehearing conference. The assigned commissioner shall prepare and issue by order or ruling a scoping memo that describes the issues to be considered and the applicable timetable for resolution. (Public Utilities Code Section 1701.1) 4)Defines "quasi-legislative cases" to mean cases that establish policy, including, but not limited to, rulemakings and investigations which may establish rules affecting an entire industry. (Public Utilities Code Section 1701.1) AB 1023 Page 3 5)Defines "adjudication cases" to mean enforcement cases and complaints, except those challenging the reasonableness of any rates or charges, as specified. (Public Utilities Code Section 1701.1) 6)Defines "ratesetting cases" to mean cases in which rates are established for a specific company, including, but not limited to, general rate cases, performance-based ratemaking, and other ratesetting mechanisms. (Public Utilities Code Section 1701.1) 7)Defines "ex parte communication" to mean any oral or written communication between a decision maker and a person with an interest in a matter before the commission concerning substantive, but not procedural issues, that does not occur in a public hearing, workshop, or other public proceeding, or on the official record of the proceeding on the matter. (Public Utilities Code Section 1701.1) FISCAL EFFECT: Unknown. COMMENTS: 1)Author's Statement: "In recent months, revelations have shown a pattern of informal and private contacts by California Public Utilities Commission members with regulated entities. In response, CPUC management set up a weekly communications log that summarizes oral and written ex parte communications. AB 1023 would codify the requirement that the CPUC maintain that contact log." 2)Background: In 2014, revelations surfaced that members of the CPUC repeatedly had informal private contacts with entities AB 1023 Page 4 under its regulatory purview. As a result, on October 18, 2014, the CPUC Executive Director issued a memo implementing new reporting procedures for communications between certain CPUC staff and CPUC-regulated entities. The memo was issued in order to enhance the transparency of the CPUC's process and its accountability to the public. The memo directed Division Directors and above, as well as voluntarily asked Commissioners and their Advisors and the Chief Administrative Law Judge to provide a communications log summarizing all oral or written ex parte communications that occur between themselves and CPUC-regulated entities who are interested persons to a ratesetting or adjudicatory proceeding. The communications log must include the date of each communication, the persons involved, and to the extent known, any proceedings that were the subject of each communication. The communications log must be provided on a weekly basis and be made available on the CPUC's website. Since October 15, 2014, the CPUC began publishing these logs every other week since the policy was established. But the policy limited the scope of the policy to only adjudicatory and ratesetting proceedings, and did not require reporting on communications between high-level CPUC personnel and interested parties on quasi-legislative proceedings, advice letters, and scoping memos. This bill would codify the provisions of the CPUC policy that requires the CPUC to establish and maintain a weekly communications log summarizing all oral or written ex parte communications between a person with an interest in a matter before the CPUC and a commissioner, an appointed advisor to a commissioner, the executive director, a deputy executive director, a division director, or an administrative law judge. The bill would expand the reporting to include quasi-legislative proceedings, advice letters, and scoping memos. AB 1023 Page 5 3)Arguments in Support: According to the Sierra Club of California, "This bill would improve accountability and transparency at the [CPUC.] The bill does this by requiring the [CPUC] to establish and maintain weekly communications log summarizing all oral or written ex parte communication and requires the [CPUC] to make each log available to the public on the [CPUC's] internet website." REGISTERED SUPPORT / OPPOSITION: Support Sierra Club California Opposition None on file. Analysis Prepared by:Edmond Cheung / U. & C. / (916) 319-2083 AB 1023 Page 6