BILL ANALYSIS Ó
AB 2902
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2902 (Committee on Utilities and Commerce) - As Introduced March
3, 2016
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|Policy |Utilities and Commerce |Vote:|14 - 0 |
|Committee: | | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill authorizes staff offices of the California Public
Utilities Commission (PUC) to be located in Los Angeles,
Sacramento, or San Francisco if the location meets the economic
and efficiency requirements of the state, as determined by the
Department of Finance (DOF).
FISCAL EFFECT:
Possible one-time moving costs offset by potential ongoing cost
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savings. Any moving of staff is at the discretion of the PUC
and approval by DOF, and is absorbable within existing
resources.
COMMENTS:
1)Purpose. According to the Utilities and Commerce Committee,
it is beneficial to clarify that although the PUC must be
located in San Francisco, staff may be located in other parts
of the state. This clarification will help dilute the
concentration of PUC officials and utility executives in the
same region of the state.
2)Background. The California Constitution Article XII
establishes the PUC and grants it the authority to regulate
public utilities. The Public Utilities Code requires the PUC
to be centralized in San Francisco. The PUC is governed by
five full-time commissioners appointed by the Governor and
confirmed by the Senate. The PUC is staffed by approximately
1,000 individuals who, together, regulate privately-owned
electric, natural gas, telecommunications, water, railroad,
rail transit, and passenger transportation companies. PUC
staff includes four personal advisors to each commissioner,
five personal advisors to the president, as well as the 42
judges of the Administrative Law Division.
The PUC was initially created in 1911 as the Railroad
Commission in an effort to address public concerns over the
uncontrolled power of the Southern Pacific railroad company.
In 1912, the Legislature expanded the PUC's regulatory
authority to include natural gas, electric, telephone, and
water companies as well as railroads and marine transportation
companies. According to information provided, the impetus
behind centralizing PUC power in San Francisco was to separate
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utility powers from Sacramento to prevent corruption; however,
utility executives relocated to San Francisco where they live
and work closely with the PUC officials and staff.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081