BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: AB 2746 Hearing Date: 6/21/2016 ----------------------------------------------------------------- |Author: |Obernolte | |-----------+-----------------------------------------------------| |Version: |3/28/2016 As Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Nidia Bautista | | | | ----------------------------------------------------------------- SUBJECT: Public Utilities Commission: contracts: electronic submissions DIGEST: This bill requires the California Public Utilities Commission (CPUC) to adopt procedures authorizing the submittal of electronic signatures and documents by all parties on contracts involving the CPUC. ANALYSIS: Existing law: 1)Defines "electronic signature" to mean an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record. (Code of Civil Procedures §17). 2)Establishes the Uniform Electronic Transactions Act, which provides for specified requirements related to the use of electronic documents, including authorizing the use of an electronic record when a law requires a signature. (Code of Civil Procedures §1633.1 et seq.) This bill requires the CPUC to adopt procedures authorizing the submittal of electronic signatures and documents by all parties on contracts involving the CPUC. Background The CPUC, like other state agencies, contracts with outside AB 2746 (Obernolte) Page 2 of ? consultants when it lacks the in-house resources or expertise to execute a given service. For example, the CPUC contracts with outside legal counsel to perform public records requests, assess the gas pipeline safety programs, review the agency's ex parte communications practices, and others. The CPUC, like other state agencies, relies on the Department of General Services (DGS) State Contracting Manual when soliciting or entering into a contract to provide services. The roughly 150-page manual includes a requirement that contracts include original handwritten signatures (noted on page 46). As a result, a contract may need to be shuttled across the state to various locations to secure original signatures from the various parties, often resulting in increased cost for delivery and a delay in executing the agreement. On the other hand, the use of electronic signatures can reduce the need to mail original documents across the state and save time by securing a signature rather quickly. Several laws have been passed to explicitly authorize the use of electronic signatures on various documents ranging from warrants, court documents, county board of equalization applications, documents submitted to the Department of Motor Vehicles, and many others. However, in the case of state contracting practices the DGS Manual still requires original signatures. This bill would require the CPUC to establish procedures authorizing the use of electronic signatures. Better placed at DGS. The requirement to authorize the use of electronic signatures for state contracts may be better placed at the DGS since they are the agency responsible developing the state contracting manual. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: None received OPPOSITION: None received ARGUMENTS IN SUPPORT: The author states "the DGS State AB 2746 (Obernolte) Page 3 of ? Contracting Manual requires contracts to have original handwritten signatures. At the CPUC, contracts often involve numerous signatories in various locations. Getting wet signatures from all of these individuals requires contract documents to be mailed to each party. Not only is this process inefficient and difficult to track, it is also costly and creates opportunities for the documents to get lost along the way. If this happens, the process must start over, leading to additional costs and delays." -- END --