BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1651| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1651 Author: Obernolte (R) Amended: 8/19/16 in Senate Vote: 21 SENATE ENERGY, U. & C. COMMITTEE: 9-0, 6/27/16 AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara, Leyva, McGuire NO VOTE RECORDED: Pavley, Wolk SENATE APPROPRIATIONS COMMITTEE: 6-0, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza, Nielsen NO VOTE RECORDED: Bates ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote SUBJECT: Public Utilities Commission: contracts SOURCE: California Public Utilities Commission DIGEST: This bill requires the California Public Utilities Commission (CPUC) to annually publish on its Web site information about each contract the CPUC enters into. It also requires CPUC to publish on its Web site audits of CPUC's contracting practices conducted by the Department of General Services (DGS). Senate Floor Amendments of 8/19/16 remove the requirement that the CPUC post on its Web site information regarding a contract entered into at the direction of the commission, whether or not the commission is a party to the contract. ANALYSIS: AB 1651 Page 2 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)Requires, generally, 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 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 annually, to publish and make available free of charge on its Web site 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)Requires the CPUC to make available on its Web site 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 AB 1651 Page 3 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 Web site information about contracts to which CPUC is a party will better allow public scrutiny and encourage appropriate contracting practices at the CPUC. 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 Web site is currently available to the public via means other than the internet. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Committee on Appropriations, approximately $150,000 annually (Utilities Reimbursement Account) to the CPUC. SUPPORT: (Verified8/22/16) California Public Utilities Commission (source) The Utility Reform Network OPPOSITION: (Verified8/22/16) AB 1651 Page 4 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 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. ASSEMBLY FLOOR: 80-0, 5/31/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, 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, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, AB 1651 Page 5 Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107 8/22/16 20:37:37 **** END ****