Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2603

Introduced by Assembly Member Nazarian

February 19, 2016

An act to begin delete amend Sections 1801.3 and 1802 of, and to add Section 1809 to, end delete begin insert add Section 5388 to end insert the Public Utilities Code, relating to begin delete proceedings of end delete the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

AB 2603, as amended, Nazarian. Public Utilities Commission: begin delete proceedings: intervenor compensation. end delete begin insert Passenger Charter-party Carriers’ Act: complaint registration and resolution mechanism. end insert

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Charter-party carriers of passengers, including transportation network companies, are subject to the jurisdiction and control of the Public Utilities Commission under the Passenger Charter-party Carriers’ Act.

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This bill would require the commission to establish a telephone communications service, with a designated telephone number, that would be available to members of the public to communicate to the commission any concerns, or register complaints, regarding service provided by charter-party carriers of passengers, including transportation network companies. The bill would require each charter-party carrier of passengers to include the telephone number designated by the commission on all contracts for service made after January 1, 2018, and for a transportation network company or other charter-party carrier of passengers that arranges for transportation utilizing application software, commonly termed an app, the bill would require that the customer be notified of the existence of, and purpose for, the telephone number as part of the electronic transaction. The bill would require the commission to maintain a record of all concerns and complaints communicated to the commission and to establish rules or guidelines as to what concerns and complaints do or do not raise matters of serious concern. As to those concerns and complaints that do not raise a matter of serious concern, the commission staff would be required to diligently attempt to informally resolve the concern or complaint. The bill would require the commission to investigate each concern or complaint that raises a matter of serious concern and initiate and conclude appropriate enforcement action with respect to any violation of the act or a rule adopted by the commission pursuant to the act.

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Under existing law, a violation of the Passenger Charter-party Carriers’ Act or an order or direction of the commission pursuant to the act is a crime.

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Because the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Under existing law, the Public Utilities Commission has broad regulatory authority pursuant to the California Constitution and the Public Utilities Act over public utilities, as defined, including common carriers, toll bridge corporations, electrical corporations, gas corporations, pipeline corporations, telephone corporations, telegraph corporations, water corporations, sewer system corporations, and heat corporations. In addition, the commission has more limited authority over certain other corporations, including charter-party carriers of passengers. Existing law provides compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers and representatives of customers for participation or intervention in formal proceedings of the commission involving electrical, gas, water, telegraph, and telephone public utilities.

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This bill would additionally authorize compensation to be awarded by the commission for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to customers and representatives of customers for participation or intervention in formal proceedings of the commission involving a corporation that is subject to regulation by the commission pursuant to the Passenger Charter-Party Carriers’ Act.

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Existing law requires the commission to deny compensation to any customer who attempts to delay or obstruct the orderly and timely fulfillment of the commission’s responsibilities.

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This bill would require the commission to deny any claim for compensation for contributions to a closed proceeding unless otherwise specified.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 5388 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 5388. end insert   

(a) The commission shall establish a telephone
communications service that is available to members of the public
to communicate to the commission any concerns, or register
complaints, regarding service provided by charter-party carriers
of passengers, including transportation network companies. The
commission shall designate a telephone number for members of
the public to dial to communicate their concerns or complaints.
The commission shall require each charter-party carrier of
passengers to include the telephone number designated by the
commission on all contracts for service made after January 1,
2018. For a transportation network company or other charter-party
carrier of passengers that arrange for transportation utilizing
application software, commonly termed an app, the commission
shall require that the customer be notified of the existence of, and
purpose for, the telephone number as part of the electronic
transaction. The commission may maintain additional, alternative
means for members of the public to express concerns or register
complaints.

(b) The commission shall maintain a record of all concerns and
complaints communicated to the commission relative to
charter-party carriers of passengers, including transportation
network companies. The commission shall establish rules or
guidelines as to what concerns and complaints do or do not raise
matters of serious concern. As to those concerns and complaints
that do not raise a matter of serious concern, the commission staff
shall diligently attempt to informally resolve the concern or
complaint and shall maintain a record of whether the concern or
complaint was resolved. The commission shall investigate each
concern or complaint made to the commission that raises a matter
of serious concern and initiate and conclude appropriate
enforcement action with respect to any violation of this act or a
rule adopted by the commission pursuant to this act. The
commission shall maintain a record of all concerns and complaints
that result in an investigation, a description of the investigation
conducted by the commission, and the result of the investigation.

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begin insert SEC. 2. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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SECTION 1.  

Section 1801.3 of the Public Utilities Code is
amended to read:

1801.3.  

It is the intent of the Legislature that:

(a) The provisions of this article shall apply to all formal
proceedings of the commission involving electrical, gas, water,
telegraph, and telephone corporations and to corporations that are
subject to regulation by the commission pursuant to Chapter 8
(commencing with Section 5351) of Division 2.

(b) The provisions of this article shall be administered in a
manner that encourages the effective and efficient participation of
all groups that have a stake in the public utility regulation process.

(c) The process for finding eligibility for intervenor
compensation be streamlined, by simplifying the preliminary
showing by an intervenor of issues, budget, and costs.

(d) Intervenors be compensated for making a substantial
contribution to proceedings of the commission, as determined by
the commission in its orders and decisions.

(e) Intervenor compensation be awarded to eligible intervenors
in a timely manner, within a reasonable period after the intervenor
has made the substantial contribution to a proceeding that is the
basis for the compensation award.

(f) This article shall be administered in a manner that avoids
unproductive or unnecessary participation that duplicates the
participation of similar interests otherwise adequately represented
or participation that is not necessary for a fair determination of the
proceeding.

SEC. 2.  

Section 1802 of the Public Utilities Code is amended
to read:

1802.  

As used in this article:

(a) “Compensation” means payment for all or part, as determined
by the commission, of reasonable advocate’s fees, reasonable
expert witness fees, and other reasonable costs of preparation for
and participation in a proceeding, and includes the fees and costs
of obtaining an award under this article and of obtaining judicial
review, if any.

(b) (1) “Customer” means any of the following:

(A) A participant representing consumers, customers, or
subscribers of any electrical, gas, telephone, telegraph, or water
corporation or representing consumers, customers, or passengers
of any corporation subject to regulation by the commission
pursuant to Chapter 8 (commencing with Section 5351) of Division
2.

(B) A representative who has been authorized by a customer.

(C) A representative of a group or organization authorized
pursuant to its articles of incorporation or bylaws to represent the
interests of residential customers, or to represent small commercial
customers who receive bundled electric service from an electrical
corporation.

(2) “Customer” does not include any state, federal, or local
government agency, any publicly owned public utility, or any
entity that, in the commission’s opinion, was established or formed
by a local government entity for the purpose of participating in a
commission proceeding.

(c) “Expert witness fees” means recorded or billed costs incurred
by a customer for an expert witness.

(d) “Other reasonable costs” means reasonable out-of-pocket
expenses directly incurred by a customer that are directly related
to the contentions or recommendations made by the customer that
resulted in a substantial contribution.

(e) “Party” means any interested party, respondent public utility,
or commission staff in a hearing or proceeding.

(f) “Proceeding” means an application, complaint, or
investigation, rulemaking, alternative dispute resolution procedures
in lieu of formal proceedings as may be sponsored or endorsed by
the commission, or other formal proceeding before the commission.

(g) “Significant financial hardship” means either that the
customer cannot afford, without undue hardship, to pay the costs
of effective participation, including advocate’s fees, expert witness
fees, and other reasonable costs of participation, or that, in the case
of a group or organization, the economic interest of the individual
members of the group or organization is small in comparison to
the costs of effective participation in the proceeding.

(h) “Small commercial customer” means any nonresidential
customer with a maximum peak demand of less than 50 kilowatts.
The commission may establish rules to modify or change the
definition of “small commercial customer,” including use of criteria
other than a peak demand threshold, if the commission determines
that the modification or change will promote participation in
proceedings at the commission by organizations representing small
businesses, without incorporating large commercial and industrial
customers.

(i) “Substantial contribution” means that, in the judgment of
the commission, the customer’s presentation has substantially
assisted the commission in the making of its order or decision
because the order or decision has adopted in whole or in part one
or more factual contentions, legal contentions, or specific policy
or procedural recommendations presented by the customer. Where
the customer’s participation has resulted in a substantial
contribution, even if the decision adopts that customer’s contention
or recommendations only in part, the commission may award the
customer compensation for all reasonable advocate’s fees,
reasonable expert fees, and other reasonable costs incurred by the
customer in preparing or presenting that contention or
recommendation.

SEC. 3.  

Section 1809 is added to the Public Utilities Code, to
read:

1809.  

The commission shall deny any claim for compensation
for contributions to a closed proceeding unless otherwise specified
in this article.

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