BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2570


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          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2570 (Quirk) - As Introduced February 19, 2016


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          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


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          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


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