BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1023|
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THIRD READING
Bill No: AB 1023
Author: Rendon (D)
Amended: 8/18/15 in Senate
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 7/13/15
AYES: Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,
McGuire, Morrell, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 74-0, 5/22/15 (Consent) - See last page for
vote
SUBJECT: Public Utilities Commission: proceedings: ex parte
communications
SOURCE: Author
DIGEST: This bill requires the California Public Utilities
Commission (CPUC) to establish and maintain a weekly log that
summarizes all ex parte communications between decisionmakers,
as defined, and persons with an interest in CPUC proceedings.
ANALYSIS:
Existing law:
1)Establishes the CPUC with five members appointed by the
Governor and confirmed by the Senate and empowers it to
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regulate privately-owned public utilities in California.
Specifies that the Legislature may prescribe that additional
classes of private corporations or other persons are public
utilities. (Article XII of the California Constitution;
Public Utilities Code §301 et seq.)
2)Requires the CPUC to determine whether a proceeding requires a
hearing and whether it is quasi-legislative, adjudication or
ratesetting. Provides rules governing each type of
proceeding, including prohibiting any substantive
communication between a decision maker and a party in
adjudicative cases. (Public Utilities Code §§1701.1 and
1701.2)
This bill:
1)Requires the CPUC to establish and maintain a weekly
communications log summarizing all oral or written ex parte
communications for quasi-legislative, rate-setting and
adjudicative proceedings.
2)Requires the communications log to include a summary of oral
and written ex parte communications between a person with an
interest in a matter before the CPUC and a commissioner,
advisor to a commissioner, the executive director of the CPUC,
a deputy executive director, director of a division not acting
as a party, or an administrative law judge.
3)Requires that each communication log entry include the date of
each communication, the persons involved, and any proceedings
that were the subject of each communication.
4)Requires the CPUC to make the log available on its website.
Background
Ex parte communications. Substantive communication outside of
the public record that occurs between a decisionmaker and a
party with an interest in a CPUC proceeding are known as "ex
parte" communications. Statute recognizes that ex parte
communications can conflict with the need for public decision at
the CPUC. Current law directs the CPUC to adopt regulations
requiring reporting of ex parte communications. The regulations
are to require the interested party to report the communication
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within three working days of the communication and include:
The date, time, and location of the communication, and
whether it was oral, written, or a combination.
The identity of the recipient and the person initiating
the communication, as well as the identity of any persons
present during the communication.
A description of the party's, but not the
decisionmaker's, communication and its content.
Statute does not require a CPUC decisionmaker to report ex parte
communication with an interested party.
Statute directs CPUC to identify each of its proceedings
according to one of three categories - adjudicatory,
quasi-legislative, and ratesetting - and provides ex parte rules
applicable to each type of proceeding. The types of proceedings
and the statutory ex parte rules applicable to each are:
Adjudication cases - enforcement cases and complaints,
except those challenging the reasonableness of rates or
charges. Statute expressly prohibits ex parte
communication related to an adjudicatory proceeding.
Quasi-legislative cases - those that establish policy,
including, but not limited to, rulemakings and
investigations which may establish rules affecting an
entire industry. Statute expressly allows for ex parte
communication without restriction in these types of
proceedings.
Ratesetting cases - cases in which rates are established
for a specific company. Statute expressly prohibits ex
parte communication related to ratesetting cases. However,
despite the prohibition, statute provides circumstances in
which ex parte communication is permitted and procedures
for reporting and managing such communication.
The CPUC has adopted regulations regarding ex parte
communications. The regulations define ex parte communication
as oral or written communication that: (1) concerns any
substantive issue in a formal proceeding, (2) takes place
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between an interested person and a decisionmaker, and (3) does
not occur in a public hearing, workshop, or other public forum
noticed by ruling or order in the proceeding, or on the record
of the proceeding. The regulations define "decisionmaker" as
any commissioner, the chief administrative law judge, any
assistant chief administrative law judge, the assigned
administrative law judge, or the law and motion administrative
law judge. The ex parte regulations applicable to
decisionmakers are also applicable to commissioners' "personal
advisors," with certain exceptions regarding ratesetting
proceedings.
Related Legislation
AB 825 (Rendon, 2015) proposes a suite of reforms of the CPUC
largely directed at increased transparency of the activities of
the agency, including expanding the roles and responsibilities
of the public advisor, specifying additional requirements of
commissioners, increased transparency of electric utilities'
procurement, among others. The bill was placed on the suspense
file and will be heard by the Senate Committee on Appropriations
on August 27th.
SB 48 (Hill, 2015) proposes a suite of reforms of the CPUC,
including modifying the role of the president, meeting location
requirements, and other reforms. The bill was placed on the
suspense file and will be heard by the Assembly Committee on
Appropriations on August 27th.
SB 215 (Leno, 2015) proposes a suite of reforms of the CPUC
related to governance and operations, including disqualifying
commissioners from proceedings, modifying the role of the
president, modifying ex parte rules, and other reforms. The
bill was held in the Senate Committee on Energy, Utilities and
Communication after merging much of its contents with SB 660
(see below).
SB 660 (Leno/Hueso, 2015) proposes a suite of reforms of the
CPUC focused on ex parte communications rules, addressing the
disqualification of commissioners in proceedings, and others.
The bill is scheduled to be heard August 26th in the Assembly
Committee on Appropriations.
FISCAL EFFECT: Appropriation: No Fiscal
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Com.:YesLocal: No
SUPPORT: (Verified8/25/15)
Sierra Club California
OPPOSITION: (Verified8/25/15)
None received
ARGUMENTS IN SUPPORT: According to the author, there have been
revelations in recent months that have shown a pattern of
informal and private contacts by CPUC members with regulated
entities. On October 18, 2014, the CPUC's executive director
established a policy that requires high-level CPUC personnel and
asks commissioners, advisors, and the chief administrative law
judge to provide a communication log summarizing oral and
written communications that occur between CPUC personnel and
interested parties in adjudicatory and rate setting proceedings.
AB 1023 codifies this new CPUC policy.
ASSEMBLY FLOOR: 74-0, 5/22/15
AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,
Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark
Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron,
Weber
Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
8/25/15 15:29:40
AB 1023
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