BILL NUMBER: AB 2903 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 17, 2016
AMENDED IN SENATE AUGUST 10, 2016
INTRODUCED BY Assembly Member Gatto
MARCH 3, 2016
An act to amend Sections 303 and 309 303,
308, 309, and 321 of, and to add Sections 307.5, 307.6, 309.2,
314.6, 321.5, 910.7, 910.8, 912.3,
1712, and 8331 to, the Public Utilities Code,
relating to the Public Utilities Commission, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2903, as amended, Gatto. Public Utilities Commission: duties
and responsibilities: governance.
(1) Existing law establishes the Public Utilities Commission, with
regulatory jurisdiction and authority over public utilities,
including common carriers, electrical corporations, gas corporations,
telephone corporations, and water corporations. Existing law
prohibits a commissioner from holding an official relation to or
having a financial interest in a person or corporation subject to
regulation by the commission and requires the commission to adopt an
updated conflict of interest code and statement of incompatible
activities by February 28, 1998.
This bill would prohibit an executive of a public utility from
serving as a commissioner within 2 years after leaving the employment
of the utility. The bill would require the commission to maintain an
updated conflict of interest code and statement of incompatible
activities.
(2) Existing law requires the office of the commission to be in
the City and County of San Francisco.
This bill would require the commission to report, as specified, to
the relevant policy and fiscal committees of the Legislature by
March 31, 2017, on options to locate operations and staff outside of
the commission's San Francisco headquarters.
(3) Existing law requires the Governor to designate the president
of the commission from among its members and requires the president
to direct the executive director, the attorney, and other staff of
the commission, except for the independent Office of Ratepayer
Advocates. Existing law authorizes the executive director to employ
those officers, administrative law judges, experts, engineers,
statisticians, accountants, inspectors, clerks, and employees as the
executive director deems necessary to carry out the provisions of the
Public Utilities Act or to perform the duties and exercise the
powers conferred upon the commission by law.
This bill would authorize the executive director to authorize
commission employees to undertake temporary training and development
assignments with other agencies, departments, and commissions that
undertake coordinated activities with the commission, including the
State Energy Resources Conservation and Development Commission, the
State Air Resources Board, and the Division of Oil, Gas, and
Geothermal Resources. The bill would require the executive director
to work with the University of California, the California State
University, and other postsecondary educational institutions to
develop curriculum and training necessary or useful to candidates for
employment with the commission. The bill would require the
commission to appoint a chief administrative law judge and an
internal auditor, to hold office at the pleasure of the commission
and to perform specified functions. The bill would shift
responsibility for keeping a full and true record of all proceedings
of the commission from the executive director to the chief
administrative law judge.
(4) Existing law places various responsibilities upon the
commission to ensure that public utility services are provided in a
manner that protects the public safety and the safety of utility
employees.
This bill would require the commission to appoint a Deputy
Executive Director for Safety to hold office at its pleasure. The
deputy executive director would have primary responsibility for
implementing the authority of the commission to initiate an
investigation into a safety-related matter and to exercise the
emergency authority of the commission to ensure the safety of the
public.
(5) The California Constitution authorizes the commission to
establish rules, examine records, and prescribe a uniform system of
accounts for all public utilities. The Public Utilities Act requires
the commission to inspect and audit the books and records of
electrical corporations, gas corporations, heat corporations,
telegraph corporations, telephone corporations, and water
corporations for regulatory and tax purposes.
This bill would authorize the commission to conduct financial and
performance audits of any entity or program created by any order,
decision, motion, settlement, or other action of the commission. If
the commission undertook an audit pursuant to this authority, the
bill would require the commission to transmit a copy of the audit
report to the Legislature and to the Governor immediately upon
completion of the audit and to make the report available to the
public.
(6) This bill would require the commission to appoint an
independent ombudsman for ethics who would be required to receive
complaints and comments from employees of the commission and members
of the public concerning how the commission is carrying out its
functions. The ombudsman, or staff under the direction of the
ombudsman, would be responsible for instituting a program of enhanced
ethics training for all commissioners and employees of the
commission, including training concerning the commission's conflict
of interest code, statement of incompatible activities, and
limitations upon ex parte communications.
(7) The California Constitution authorizes the commission to
establish its own procedures, subject to statutory limitations or
directions and constitutional requirements of due process. The Public
Utilities Act requires the commission to determine whether a
proceeding requires a hearing and, if so, to determine whether the
matter requires a quasi-legislative, an adjudication, or a
ratesetting hearing. The act sets forth certain procedural
requirements for the conduct of proceedings.
This bill would authorize reports and analyses by local, state,
and federal administrative agencies to be admitted into the
evidentiary record of a proceeding if proffered by a party and if
specified conditions were met.
(7) Existing law requires the commission to establish an office of
the public advisor and requires the office of the public advisor to
assist members of the public and ratepayers who desire to testify
before or present information to the commission in any hearing or
proceeding of the commission.
This bill would require the public advisor to receive complaints
and comments from members of the public concerning how the commission
is carrying out its functions and to compile, no less than once
annually, and make public on the commission's Internet Web site the
number and nature of complaints and comments from members of the
public. The public advisor would be required to maintain the
confidentiality of the identity of a member of the public who makes a
complaint or comment unless the member of the public expressly
indicates a desire to communicate his or her identity to the
commission.
(8) The Nuclear Facility Decommissioning Act of 1985 requires the
commission to undertake certain steps relative to the decommissioning
of a nuclear powerplant by an electrical corporation.
This bill would require the commission to advocate before the
federal Nuclear Regulatory Commission for expedited relocation of any
spent fuel stored at the San Onofre nuclear generating station, the
Diablo Canyon Units 1 and 2 powerplant, and the Humboldt Bay Unit 3
powerplant to an independent, offsite spent fuel storage
installation.
(9) This bill would state the intent of the Legislature to
transfer the duties and responsibilities of the commission over
passenger stage corporations, charter-party carriers of passengers,
transportation network companies, household goods carriers, vessel
common carriers, private carriers, for-hire vessels, and commercial
air operators to state departments within the Transportation Agency
in a manner consistent with Article XII of the California
Constitution and would require the Governor, by January 31, 2018, to
propose the specific budget and statutory changes needed to complete
the transfer of the duties and responsibilities to the Transportation
Agency by no later than July 1, 2018.
(10) This bill would require the California Research Bureau in the
California State Library, by January 1, 2018, to conduct a study of
telecommunications service governance to determine what regulatory
structure would provide the appropriate regulatory oversight of
telecommunications services and to assess the overarching goals of
the various programs carried out by federal and state agencies,
including the commission, including
commission. The bill would require the bureau to include a
discussion of whether the commission, as a whole, is strategically
aligned towards a clearly articulated public goal. The bill would
require the study to review specified matters and
to take into account the history of telecommunications service
regulation in the state and changes in technology to make
recommendations for guiding principles that clearly define California'
s goals for the regulation of the telecommunications industry.
(11) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares both of the
following:
(1) The Public Utilities Commission has historically
played a vital and important oversight function protecting consumers
by regulating monopoly public utilities.
(2) Ensuring that oversight function is
transparent and accountable to Californians,
Californians and ensuring that oversight function
is focused on the safety of our communities,
communities may require relocating or
augmenting reforming the responsibilities
of the Public Utilities Commission's responsibilities.
Commission.
(b) By January 1, 2018, the California Research Bureau in the
California State Library shall conduct a study of telecommunications
service governance to determine what regulatory structure would
provide the appropriate regulatory oversight of telecommunications
services. The study shall assess the overarching goals of the various
programs carried out by federal and state agencies, including
the Federal Communications Commission and the Public Utilities
Commission Commission, and include a
discussion of whether the commission, as a whole, is strategically
aligned towards a clearly articulated public goal. This
portion of the The study shall take into account
the history of telecommunications service regulation in the state
and changes in technology to make recommendations for guiding
principles to clearly define California's goals for the regulation of
the telecommunications industry. The study shall review all
of the following:
(1) The relative scope of state and federal jurisdiction over
telecommunications services and telecommunications service providers.
(2) The extent to which changes in state and federal jurisdiction
may have affected the ability of the Public Utilities Commission to
perform the following functions:
(A) Processing and resolving consumer service complaints,
including those about voice and broadband service.
(B) Maintaining and overseeing a fully functional and responsive
911 system.
(C) Maintaining and overseeing physical facilities, including
trunks, poles, and towers used to provide voice and broadband
service, including 911 service.
(3) What gaps, if any, exist in the state's regulatory authority
that are not otherwise addressed by federal law or regulation over
telecommunications services, including, but not limited to, consumer
protection and safety.
(4) The state and local agencies in addition to the Public
Utilities Commission that provide consumer protection and ensure the
safety of telecommunication services.
(5) How to enhance the processing and resolving of consumer
complaints about telecommunications service.
(6) How to enhance consumer protection from abusive practices,
including those regarding voice and broadband service.
(7) The extent to which the Federal Communication Commission and
the Public Utilities Commission provide consumer protection related
to telecommunications services, particularly in low-income and
disadvantaged communities, specifically addressing each of the
following:
(A) Unjustified payments or disconnection over legitimate billing
disputes.
(B) Extended service outages that can be life-threatening for sick
and elderly citizens and can jeopardize the survival of small and
medium-sized businesses that depend on telecommunications services to
function.
(C) Disruption to, or poor quality of, 911 service.
(D) The effect on customers of small local telecommunications
service providers.
(8) How to ensure the public can reach first responders in an
emergency, including maintaining and overseeing a fully functional
and responsive 911 system.
(9) How to ensure that the physical facilities used to provide
voice and broadband services, including 911 service, are adequately
maintained, including trunks, poles, and towers.
(10) The extent to which it is necessary for utility pole safety
regulation to be governed by one regulatory structure regardless of
the type of utility attachment.
(11) How to ensure the commission is effectively managing the
state's universal service programs funded through the California
High-Cost Fund-A Administrative Committee Fund, California High-Cost
Fund-B Administrative Committee Fund, Universal Lifeline Telephone
Service Trust Administrative Committee Fund, Deaf and Disabled
Telecommunications Program Administrative Committee Fund, California
Teleconnect Fund Administrative Committee Fund, and California
Advanced Services Fund (Chapter 1.5 (commencing with Section 270) of
the Public Utilities Code).
(12) How to ensure the effective administration of the Digital
Infrastructure and Video Competition Act of 2006 (Division 2.5
(commencing with Section 5800) of the Public Utilities Code).
(13) The extent to which changes in state and federal jurisdiction
may have affected the ability of the Public Utilities Commission to
perform any of the aforementioned functions.
(14) The extent to which competitive telecommunications services
are available in California and to what extent there are regions
within California that lack competitive alternatives.
(15) The extent to which competitive telecommunications services
create a gap, if any, in regulatory oversight.
(16) How other states are governing telecommunications services.
(17) The role of the Public Utilities Commission in regulating the
wholesale telecommunications market.
(18) The extent to which current in-state telecommunications jobs
are affected by the transition to new technologies that provide
telecommunications services.
(19) The extent to which there is a regulatory nexus between the
provision of water, energy, and telecommunications services.
SEC. 2. Section 303 of the Public Utilities Code is amended to
read:
303. (a) A public utilities commissioner may not hold an official
relation to, nor have a financial interest in, a person or
corporation subject to regulation by the commission. If any
commissioner acquires a financial interest in a corporation or person
subject to regulation by the commission other than voluntarily, his
or her office shall become vacant unless within a reasonable time he
or she divests himself or herself of the interest.
(b) No executive of a public utility may serve as commissioner
within two years after leaving the employment of the utility.
(c) The commission shall maintain an updated conflict of interest
code and statement of incompatible activities in a manner consistent
with applicable law.
SEC. 3. Section 307.5 is added to the Public Utilities Code, to
read:
307.5. (a) The commission shall appoint a chief administrative
law judge, who shall hold office at the pleasure of the commission.
(b) The chief administrative law judge shall be responsible for
the oversight of the administrative law judge division and shall
organize, coordinate, supervise, and direct the operations of the
division as directed by the commission, consistent with commission
policies and priorities.
(c) The chief administrative law judge shall keep a full and true
record of all proceedings of the commission.
SEC. 4. Section 307.6 is added to the Public Utilities Code, to
read:
307.6. (a) The commission shall appoint an internal auditor, who
shall hold office at the pleasure of the commission.
(b) The internal auditor shall be responsible for the oversight of
the internal audit unit and shall plan, initiate, and perform audits
of key financial, management, operational, and information
technology functions within the commission to improve accountability
and transparency to executive and state management.
(c) The internal auditor shall report his or her findings and
recommendations directly to an audit subcommittee of the commission.
(d) The internal auditor shall comply with Part 3.5 (commencing
with Section 13885) of Division 3 of Title 2 of the Government Code.
SEC. 5. Section 308 of the Public
Utilities Code is amended to read:
308. (a) The commission shall appoint an executive director, who
shall hold office during its pleasure. The executive director shall
be responsible for the commission's executive and administrative
duties and shall organize, coordinate, supervise, and direct the
operations and affairs of the commission and expedite all matters
within the commission's jurisdiction.
(b) The executive director shall keep a full and true
record of all proceedings of the commission, issue all
necessary process, writs, warrants, and notices,
notices and perform such other duties as the president, or
vote of the commission, prescribes. The president may authorize the
executive director to dismiss complaints or applications when all
parties are in agreement thereto, in accordance with rules that the
commission may prescribe.
(c) The commission may appoint assistant executive directors who
may serve warrants and other process in any county or city and county
of this state.
SEC. 5. SEC. 6. Section 309 of the
Public Utilities Code is amended to read:
309. (a) The executive director may employ such officers,
administrative law judges, experts, engineers, statisticians,
accountants, inspectors, clerks, and employees as the executive
director deems necessary to carry out the provisions of this part or
to perform the duties and exercise the powers conferred upon the
commission by law. All officers and employees shall receive such
compensation as is fixed by the commission.
(b) The executive director may authorize commission employees to
undertake temporary training and development assignments with other
agencies, departments, and commissions that undertake coordinated
activities with the commission, including the Energy Commission, the
State Air Resources Board, and the Division of Oil, Gas, and
Geothermal Resources.
(c) The executive director shall work with the University of
California, the California State University, and other postsecondary
education institutions to develop curriculum and training necessary
or useful to candidates for employment with the commission.
SEC. 6. SEC. 7. Section 309.2 is
added to the Public Utilities Code, to read:
309.2. The commission shall appoint a Deputy Executive Director
for Safety, who shall hold office at its pleasure. The deputy
executive director shall have primary responsibility for implementing
the authority of the commission to initiate an investigation into a
safety-related matter and to exercise the emergency authority of the
commission to ensure the safety of the public.
SEC. 7. SEC. 8. Section 314.6 is
added to the Public Utilities Code, to read:
314.6. (a) The commission may conduct financial and performance
audits of any entity or program created by any order, decision,
motion, settlement, or other action of the commission.
(b) The commission shall complete any audit in a timely manner
consistent with the Generally Accepted Government Auditing Standards
developed by the United States Government Accountability Office.
(c) After performing an audit pursuant to this section, the
commission may conduct additional followup work that is related to
any findings and recommendations related to the audit.
SEC. 9. Section 321 of the Public
Utilities Code is amended to read:
321. (a) The commission shall establish an office of the public
advisor and shall appoint a public advisor, including a separate
office in the Los Angeles office of the commission. The commission
may employ staff as necessary to carry out the duties of the office
of the public advisor. The office of the public advisor shall assist
members of the public and ratepayers who desire to testify before or
present information to the commission in any hearing or proceeding of
the commission. The public advisor shall advise the commission on
procedural matters relating to public participation in proceedings of
the commission.
(b) The public advisor and executive director shall publicize the
commission's programs for encouraging and supporting participation in
the commission's proceedings.
(c) The public advisor shall receive complaints and comments from
members of the public concerning how the commission is carrying out
its functions. The public advisor shall maintain the confidentiality
of the identity of a member of the public who makes a complaint or
comment unless the member of the public expressly indicates a desire
to communicate his or her identity to the commission. The public
advisor shall compile, no less than once annually, and make public on
the commission's Internet Web site the number and nature of
complaints and comments from members of the public.
SEC. 8. SEC. 10. Section 321.5 is
added to the Public Utilities Code, to read:
321.5. (a) The commission shall appoint an independent ombudsman
for ethics. The ombudsman shall receive complaints and comments from
employees of the commission and members of the public
concerning how the commission is carrying out its
functions. The ombudsman shall maintain the confidentiality of an
employee's identity unless the employee expressly indicates a desire
to communicate his or her identity to the commission.
(b) The ombudsman, or staff under the direction of the ombudsman,
shall be responsible for instituting a program of enhanced ethics
training for all commissioners and employees of the commission,
including training concerning the commission's conflict of interest
code, statement of incompatible activities, and limitations upon ex
parte communications.
SEC. 9. SEC. 11. Section
910.7 910.8 is added to the Public Utilities
Code, to read:
910.7. 910.8. (a) By March 31,
2017, the commission shall report to the relevant policy and fiscal
committees of the Legislature on options to locate operations and
staff outside of the commission's San Francisco headquarters. The
report shall explore options for leveraging additional facilities in
areas of the state, including Sacramento, that would allow the
commission to collaborate with other state entities and provide staff
more opportunities for training, career development, and exchange
placements with other state entities. The report shall do both of the
following:
(1) Consider categories of operations in different offices.
(2) Analyze recruitment and retention, salary disparities by
location based on duty statements, and costs associated with using
locations outside of San Francisco with no, or minimal, disruption of
current commission employees.
(b) The commission shall conduct one or more public workshops to
obtain suggestions, concerns, ideas, and comments from stakeholders
and interested members of the public in furtherance of the purpose of
the report.
(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on March 31, 2021.
SEC. 10. SEC. 12. Section 912.3 is
added to the Public Utilities Code, to read:
912.3. Immediately upon completion of an audit of any entity or
program created by any order, decision, motion, settlement, or other
action by the commission conducted pursuant to Section 314.6, the
commission shall transmit a copy of the audit report to the
Legislature, including to the appropriate policy and fiscal
committees or subcommittees of the Legislature, and to the Governor.
Once the audit report has been transmitted to the Legislature and the
Governor, the report shall be made available to the public.
SEC. 11. Section 1712 is added to the Public
Utilities Code, to read:
1712. (a) Reports and analyses by local, state, and federal
administrative agencies may be admitted into the evidentiary record
if proffered by a party and both of the following apply:
(1) The reports or analyses have been adopted or approved by a
vote of the governing body of the agency, approved by the director or
head of the agency, or published in a peer-reviewed academic
publication.
(2) The commission provides an opportunity, consistent with due
process, for other parties and the public to analyze and respond to
any facts asserted by the reports or analyses.
(b) Unless a witness representing the agency is able to respond to
questions relating to the content of the reports or analyses, and is
available for cross-examination, the reports or analyses shall not
serve as the basis for any findings of fact or conclusions of law.
SEC. 12. SEC. 13. Section 8331 is
added to the Public Utilities Code, to read:
8331. The commission shall advocate before the federal Nuclear
Regulatory Commission for expedited relocation of any spent fuel
stored at the San Onofre Nuclear Generating Station, the
Diablo Canyon Units 1 and 2 powerplant, and Humboldt Bay Unit 3
powerplant nuclear powerplants in this state to
an independent, offsite spent fuel storage installation.
SEC. 13. SEC. 14. (a) For purposes
of this section, the following terms have the following meanings:
(1) "Charter-party carrier of passengers" has the same meaning as
defined in Section 5360 of, subject to the exclusions in Section 5353
of, the Public Utilities Code.
(2) "Commercial air operator" has the same meaning as defined in
Section 5500 of the Public Utilities Code.
(3) "For-hire vessel" has the same meaning as defined in Section
4661 of the Public Utilities Code.
(4) "Household goods carrier" has the same meaning as defined in
Section 5109 of the Public Utilities Code.
(5) "Passenger stage corporation" has the same meaning as defined
in Section 226 of the Public Utilities Code.
(6) "Private carrier" has the same meaning as defined in Section
4001 of the Public Utilities Code.
(7) "Transportation network company" has the same meaning as
defined in Section 5431 of the Public Utilities Code.
(8) "Vessel common carrier" means those persons and corporations
that are a common carrier pursuant to subdivision (b) of Section 212
of the Public Utilities Code.
(b) It is the intent of the Legislature to transfer the duties and
responsibilities of the Public Utilities Commission over passenger
stage corporations, charter-party carriers of passengers,
transportation network companies, household goods carriers, vessel
common carriers, private carriers, for-hire vessels, and commercial
air operators to state departments within the Transportation Agency
in a manner consistent with Article XII of the California
Constitution. By January 31, 2018, the Governor shall propose the
specific budget and statutory changes needed to complete the transfer
of the duties and responsibilities to the Transportation Agency by
no later than July 1, 2018.
(c) It is the intent of the Legislature to make conforming changes
to this code and the other codes of this state to effectuate
subdivision (b) by July 1, 2018.
(d) It is the intent of the Legislature to evaluate methods for
ensuring that rail crossings inspected by the Public Utilities
Commission and rail transit approved by the Public Utilities
Commission are in coordination coordinated
with the Transportation Agency. Agency
to ensure that rail crossings and rail transit systems are assessed,
and projects prioritized for funding are chosen, with regard to
transportation safety and mobility needs.
(9) This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order for the provisions of this act to be applicable as soon
as possible in the 2017-18 fiscal year and thereby facilitate the
orderly transition of duties and responsibilities at the earliest
possible time, it is necessary that this act take effect immediately.