BILL ANALYSIS Ó
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: AB 1651 Hearing Date: 6/27/2016
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|Author: |Obernolte |
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|Version: |6/20/2016 As Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Jay Dickenson |
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SUBJECT: Public Utilities Commission: contracts
DIGEST: This bill requires the California Public Utilities
Commission (CPUC) to monthly publish on its website information
about each contract the CPUC enters into, as well information
about every contract entered into at the direction of the CPUC.
It also requires CPUC to publish on its website audits of CPUC's
contracting practices conducted by the Department of General
Services (DGS).
ANALYSIS:
Existing law:
1)Requires DGS to conduct an audit of each state agency to which
purchasing authority has been delegated at least once in each
three-year period to ensure compliance with statutory
requirements related to specific contracting procedures.
(Public Contract Code §10333)
2)Generally requires that governmental records be disclosed to
the public, upon request, unless there is a specific reason
not to do so. (Government Code §6251 et seq.)
3)Provides that no information provided to the CPUC by a public
utility or its subsidiary or affiliate shall be open to the
public except on the order of the CPUC or a commissioner in
AB 1651 (Obernolte) Page 2 of ?
the course of a hearing or proceeding. Also provides that any
present or former officer or employee of the CPUC who divulges
information is guilty of a misdemeanor. (Public Utilities
Code §583)
This bill:
1)Requires the CPUC, at least monthly, to publish and make
available free of charge on its website the following:
Information about each contract that the CPUC enters
into.
The names, addresses, and points of contact of the
parties to the contract.
The goods and services requested, as applicable.
The contract value.
1)As of July 1, 2017, makes the preceding requirements of any
contract entered into at the direction of the CPUC.
2)Requires the CPUC to make available on its website DGS audits
of its contracting practices.
Background
Several parties have criticized the CPUC's recent contracting
practices. In August of last year, the Assembly Committee on
Utilities and Commerce held an oversight hearing on the topic.
In a background document for the hearing, committee staff
concluded it to be unclear whether the CPUC consistently used
the state contracting process, which, among other things,
requires that most contracts be competitively bid among multiple
vendors. Subsequent to the hearing, the Joint Legislative Audit
Committee approved an audit to examine CPUC contracting
practices.
Currently, CPUC contracts are available to the public. However,
the process for obtaining access to such contract can be
cumbersome. This bill is premised on the belief that posting on
the CPUC website information about contracts to which CPUC is a
party will better allow public scrutiny and encourage
appropriate contracting practices at the CPUC.
This bill also requires the posting on the CPUC website
information about any contract entered into at the direction of
AB 1651 (Obernolte) Page 3 of ?
the CPUC. According to representatives of the investor-owned
utilities, there are very few contracts they enter into at the
direction of the CPUC. For this reason, they are not concerned
that meeting the requirements of this bill with be onerous.
The CPUC regularly deals with sensitive information. Existing
statute protects such information by allowing parties to declare
such information confidential. In addition, this bill requires
the CPUC to post information about contracts, not the contracts
themselves, so CPUC should be able to maintain the
confidentiality of any sensitive information by being selective
about what contract-related information it places on its
website. In any case, the information this bill requires to be
published on the CPUC website is currently available to the
public via means other than the internet.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
California Public Utilities Commission (Source)
The Utility Reform Network
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the author:
In August 2015, the Assembly Committee on Utilities and
Commerce convened an informational hearing on CPUC
contracting practices, including an examination of CPUC
competitive solicitation practices and adherence to state
contracting rules. The hearing raised questions about the
level of oversight and transparency on contracts involving
the CPUC and the utilities it regulates.
One particular issue raised at the hearing was the
difficulty of accessing contract details and bidder
information. Without a legislative mandate for
transparency, there is no guarantee that contract
publishing practices will be maintained in the future.
AB 1651 (Obernolte) Page 4 of ?
AB 1651 seeks to address this by shining light onto all
awarded contracts involving the CPUC. This bill would do
this by requiring the CPUC to publish on its website copies
of each awarded or directed contract and make these
documents available to the public free of charge. In
addition, the CPUC would also be required to post copies of
DGS audits relating to the CPUC's contracting practices on
the CPUC website. These provisions will improve public
transparency at the CPUC and will improve Legislative
oversight by helping lawmakers stay informed of CPUC
contracting practices.
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