BILL ANALYSIS Ó AB 2570 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2570 (Quirk) - As Introduced February 19, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill deletes the requirement for the PUC to furnish reports on inspections and audits and other pertinent information to the Board of Equalization (BOE). FISCAL EFFECT: AB 2570 Page 2 No state costs. COMMENTS: 1)Rationale. In March 2014, the State Auditor issued a report in response to a request by the Joint Legislative Audit Committee concerning the PUC oversight of the utility balancing accounts of the entities it regulates. The Auditor found the PUC lacked adequate oversight over balancing accounts, and did not always comply with legal audit requirements. The Auditor also determined that for over three decades, the PUC failed to provide audit results to the BOE for tax purposes. Included in her recommendation, the State Auditor noted the Legislature should amend state law to remove the requirement that the CPUC provide audit reports to Equalization. This bill implements that recommendation. 2)Related Legislation. AB 2168 (Williams) revises PUC reporting requirements on inspections and audits and modifies current auditing requirements. This bill implements all of the March 2014 Audit recommendations and is currently on the Assembly floor. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 2570 Page 3