BILL ANALYSIS Ó
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: AB 2903 Hearing Date: 8/31/2016
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|Author: |Gatto |
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|Version: |8/17/2016 Amended |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant:|Nidia Bautista |
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SUBJECT: Public Utilities Commission: duties and
responsibilities: governance
DIGEST: This bill provides a suite of reforms of the
operations of the California Public Utilities Commission (CPUC),
including clarifying the responsibilities and oversight of
various positions; improvements to ethics practices; reports
related to telecommunications services and CPUC staffing;
stating the intent of the Legislature to transfer most non-rail,
for-hire transportation services to the State Transportation
Agency (STA); and others.
ANALYSIS:
Existing law:
1)Establishes the CPUC with jurisdiction over all public
utilities and grants the CPUC certain general powers over all
public utilities and common carriers, subject to control by
the Legislature. (California Constitution, Article 12)
2)Requires the office of the CPUC to be located in the City and
County of San Francisco. Requires the CPUC to hold at least
one session per calendar month in the City and County of San
Francisco. (Public Utilities Code §306)
3)Establishes a division of the CPUC responsible for consumer
protection and safety with responsibility for inspections,
surveillance, and investigation of the rights-of-way,
facilities, equipment, and operations of railroads and public
mass transit guideways, and for enforcing state and federal
AB 2903 (Gatto) Page 2 of ?
laws, regulations, orders, and directives relating to
transportation of persons or commodities, or both, of any
nature or description by rail. (Public Utilities Code §309.7)
4)Requires the CPUC to regulate utilities, including telephone
corporations and to establish just and reasonable rates for
service, with corporations proposing rates either through a
general rate case application or an advice letter. (Public
Utilities Code §451)
5)Specifies that whenever the CPUC finds that the rules,
practices, equipment, appliances, facilities, or service of
any public utility, or the methods of manufacture,
distribution, transmission, storage, or supply employed by it,
are unjust, unreasonable, unsafe, improper, inadequate, or
insufficient, the CPUC shall determine, and, by order or rule,
fix the rules, practices, equipment, appliances, facilities,
service, or methods to be observed, furnished, constructed,
enforced, or employed. (Public Utilities Code §761)
6)Establishes the CPUC's authority to regulate, require license
or permit to operate, require insurance and workers
compensation, take appropriate enforcement action and other
provisions related to passenger stage corporations (Public
Utilities Code §§226 and 1031 et seq.) and transportation
charter-party carriers (Public Utilities Code §5351).
7)Establishes the CPUC's authority to regulate private carriers
of passengers (Public Utilities Code §4001) and household
goods carriers (Public Utilities Code §5101) including
requiring public liability and property insurance, cargo
insurance, knowledge of rates, documentation, timely reporting
of revenues and payment fees, and provides that the CPUC can
take appropriate enforcement action, etc.
This bill:
1)Finds and declares that the California Research Bureau in the
California State Library shall conduct a study of
telecommunications service governance by January 1, 2018 to
determine what regulatory structure would provide the
appropriate regulatory oversight of telecommunications
services.
2)Restricts an executive of a public utility from serving as a
AB 2903 (Gatto) Page 3 of ?
commissioner within two years after leaving employment of the
utility.
3)Requires the CPUC to appoint a chief administrative law judge
(ALJ) who holds office at the pleasure of the CPUC and
requires the chief ALJ to keep a full and true record of all
proceedings of the CPUC.
4)Requires the CPUC to appoint an internal auditor who holds
office at the pleasure of the CPUC. Requires the internal
auditor to be responsible for the oversight of the internal
audit unit and plan, initiate, and perform audits of key
financial, management, operational, and information technology
functions within the CPUC to improve accountability and
transparency.
5)Repeals the requirement on the executive director to keep a
full and true record of all proceedings of the CPUC.
6)Allows the executive director to authorize CPUC employees to
undertake temporary training and development assignments with
other agencies, departments, and commissions, including the
California Energy Commission (CEC), the California Air
Resources Board, and the Division of Oil, Gas, and Geothermal
Resources at the Department of Conservation.
7)Requires the executive director to work with the University of
California, the California State University, and other
education institutions to develop curriculum and training
necessary or useful to candidates for employment with the
CPUC.
8)Requires the CPUC to appoint a Deputy Executive Director for
Safety who holds office at the pleasure of the CPUC and has
primary responsibility for implementing the authority of the
CPUC to initiate an investigation into a safety-related matter
and to exercise the emergency authority of the CPUC to ensure
the safety of the public.
9)Authorizes the CPUC to conduct financial and performance
audits of any entity or program created by any order,
decision, motion, settlement, or other action of the CPUC.
10)Requires the CPUC public advisor to receive complaints and
comments from members of the public concerning how the CPUC is
AB 2903 (Gatto) Page 4 of ?
carrying out its functions and requires the public advisor to
compile at least annually the number and nature of complaints
and comments from the public.
11)Requires the CPUC to appoint an independent ombudsman for
ethics that receives complaints and comments from employees of
the CPUC concerning how the CPUC is carrying out its
functions. Requires the ombudsman to be responsible for
instituting a program of enhanced ethics training for all
commissioners and employees.
12)Requires the CPUC to report to the relevant policy and fiscal
committees of the Legislature by March 31, 2017 options to
locate operations and staff outside of the CPUC's San
Francisco headquarters. Requires the report to explore
options for leveraging additional facilities in areas of the
state that would allow the CPUC to collaborate with other
state entities and provide staff more opportunities for
training, career development, and exchange placements.
13)Requires the CPUC, immediately upon completion of an audit of
an entity or program created by the CPUC to transmit a copy of
the audit report to the Legislature and, once transmitted,
make the report available to the public.
14)Requires the CPUC to advocate before the Federal Nuclear
Regulatory Commission for expedited relocation of any spent
fuel stored at nuclear powerplants in this state to an
independent, offsite spent fuel storage installation.
15)States it is the intent of the Legislature to transfer the
duties and responsibilities of the CPUC over passenger state
corporations, charter-party carriers of passengers,
transportation network companies (TNCs), household goods
carriers, vessel common carriers, private carriers, for-hire
vessels, and commercial air operators to state departments
within the STA, consistent with Article XII of the California
Constitution. Requires the Governor to propose, by January
31, 2018, the specific budget and statutory changes needed to
complete the transfer of the duties and responsibilities to
the STA by no later than July 1, 2018.
a) States it is the intent of the Legislature to make
conforming changes to this code by July 1, 2018.
AB 2903 (Gatto) Page 5 of ?
b) States it is the intent of the Legislature to
evaluate methods for ensuring that rail crossings
inspected by the CPUC and rail transit approved by the
CPUC are coordinated with the STA to ensure projects are
assessed and funded with regard to safety and mobility
needs.
c) States this Act is an urgency statute necessary for
the immediate preservation of the public peace, health
and safety and shall go into immediate effect based on
the need to facilitate the orderly transition of duties
and responsibilities at the earliest possible time.
Background
CPUC need for reform. In response to increased scrutiny due to
several recent scandals and incidents, including the fatal PG&E
San Bruno natural gas pipeline explosion and the release of
emails between CPUC commissioners and staff and regulated
utilities, the CPUC has instituted several, changes to
personnel, including the resignation of former CPUC president
and the former executive director, and replaced other management
and staff positions. The CPUC has also initiated internal
reforms to better address safety, including requiring safety to
be assessed in all proceedings. The CPUC has also recently
proposed a Division of Safety Advocates to further bolster
safety issues in ratemaking proceedings. The CPUC has also been
undergoing a strategic planning process to better focus its
efforts. In the recently approved budget, the CPUC will also be
hiring about a quarter of its workforce in the coming year -
nearly 250 staff positions in areas of information technology,
safety, energy analysts, and others. The CPUC has also been
working to implement the many audits and third-party expert
recommendations that range from improving the oversight of
natural gas pipelines, to improving overall management
processes, to establishing procedures for reviewing balancing
accounts and several others.
Governor announces reform framework. In June of this year, the
Governor announced an agreement with Assemblymember Gatto and
Senators Hill and Leno announcing a framework of reform
proposals related to the CPUC. This bill incorporates several
of the reforms mentioned in the press release. Other reforms
can be found in SB 215 (Leno-Hueso), SB 512 (Hill), SB 1017
(Hill), and SB 62 (Hill).
AB 2903 (Gatto) Page 6 of ?
Spread too thin? A valid and growing concern about the CPUC has
been raised several times, including by the current president:
is the CPUC spread too thin and handling too many varied areas?
The notion that one agency would handle issues related to
railroads, transportation, electric and water utilities and
phone service does raise concerns. Interestingly, the plethora
of issues is not unique to the CPUC and similar to some other
states' public utilities commissions. Perhaps the biggest
exception is the inclusion of TNCs under a statewide public
utilities commission which does seem to be unique to California
since many other states regulate these services at the local
level.
Codifying existing positions. This bill proposes to codify
positions that currently exist at the CPUC, including an
internal auditor and the recently created deputy executive
director for safety. In the case of the internal auditor, the
language proposed in this bill may be more appropriately
assigned to the existing position of the Chief Internal Auditor
who oversees the CPUC's auditing staff. The author and
committee may wish to amend the bill to insert "chief internal
auditor where "internal auditor" is referenced. In the case of
the deputy executive director for safety, the powers extended to
this position to exercise the emergency authority of the CPUC to
ensure safety merits amendments to require the CPUC to establish
rules for such emergency actions. Unfortunately, as of the
writing of this analysis, the CPUC has not been able to
articulate an existing process for exercising such authority.
The author and committee may wish to amend this bill to require
the CPUC to determine rules to allow for appeals by any public
utility subjected to the emergency authority.
CPUC power to appoint. This bill would provide the CPUC
Commissioners greater power to appoint key positions within the
operations of the CPUC, including the Chief Administrative Law
Judge, the Deputy Executive Director of Safety and the Chief
Internal Auditor. The administration and author argue that such
appointment authority will help ensure that the Commissioners
can better manage the workload and operations of the CPUC.
Cross-training and establishing a career pipeline. This bill
would allow the executive director to authorize staff to
cross-train at other relevant agencies, boards and commissions.
Considering the complexity of the issues before the CPUC, the
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staff would benefit from opportunities to further their
understanding of issues and perspectives from other relevant
state entities, and vice-versa. Similarly beneficial is this
bill's proposal to have the CPUC work with universities and
other educational institutions to develop curriculum to build a
pipeline for a workforce.
Ability to audit CPUC created entities and programs. Among the
powers of the CPUC, the CPUC has often negotiated settlements,
particularly related to mergers, that create new entities or
programs. For example the California Emerging Technology Fund
(CETF) was developed and funded by the CPUC approved mergers
between SBC-AT&T and Verizon-MCI as a separate nonprofit.
Earlier this year, the author of this bill requested an audit of
the CETF. However, the CPUC informed the author that they
lacked the statutory authority to conduct an audit on this and
other similarly constructed entities. This bill will ensure the
CPUC has the statutory authority to conduct such audits that
adhere to approved general auditing practices.
What's in a name? Ombudsman, ethics officer, inspector general,
public advisor. As currently crafted this bill utilizes the
term ombudsman which is commonly used in federal and other
agencies for a position that interacts with the public.
However, the functions of this position, as included in this
bill, are purely internal - employee complaints and ethics
training. As currently drafted in this bill, these functions
are not workable. The ethics training and advising portion is
more appropriate for an ethics officer. While, the provisions
related to receiving complaints from staff about commissioners
and executive director are not well-suited for someone who lacks
independence from the commissioners and powers to investigate
the complaints. The author and committee may wish to amend this
bill to remove the language related to fielding complaints and
replace the name with ethics officer. This bill also expands the
responsibilities of the existing public advisor to receive,
track and report complaints/comments from the public. However,
the author and committee may wish to amend this bill to clarify
the public advisor's role in resolving complaints and eliminate
the reporting requirements associated with tracking the
complaints.
Staffing outside San Francisco. In recent years, the Legislature
has expressed a strong interest in ensuring the CPUC is staffed
appropriately throughout the state. This bill incorporates
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language to require the CPUC to develop a plan to staff the CPUC
in offices located where the staff can benefit from
opportunities to work more closely with other agencies,
departments and commissions, including in Sacramento.
Considering the CPUC will be hiring nearly a quarter of the CPUC
staff (roughly 250 positions) in the coming year, a plan that
addresses the needs of the agency, staff, but also the public,
would be timely. The author and committee may wish to amend
this bill to require the CPUC to ensure the staffing plan
considers how the public can be better served.
Telecommunications services study. This bill proposes a study
by the California Research Bureau on telecommunications
services. The CPUC has long regulated the communications
industry. However, over the years, changes in state and federal
jurisdiction have modified and shifted the exact parameters of
the CPUC's regulatory responsibilities. The growth of new
technology and recent decisions by the federal government,
including the Federal Communications Commission decision related
to open internet, continue to shift the telecommunications
regulatory landscape. Although a study in this area would be
extremely beneficial, unfortunately, the desire by the author to
have the study completed by April 1 and the limitations of the
California Research Bureau's resources would make such a
timeline unworkable. The author and committee may wish to amend
this bill to remove the requirement that California Research
Bureau conduct a telecommunications services study.
Nuclear spent fuel. With the closure of the San Onofre Nuclear
Generating Station (SONGS) and the pending closure of the PG&E
Diablo Canyon nuclear powerplant, there is a high interest by
state leaders and the public to locate safe, off-site storage
facilities of the nuclear spent fuel. However, it is the
federal government's purview to site the storage of nuclear
spent fuel, involving the Department of Energy (DOE) and the
Nuclear Regulatory Commission (NRC). The author and committee
may wish to amend this bill to require the CPUC to advocate at
the DOE and other relevant federal entities, in addition to the
NRC, for expedited relocation of any spent fuel stored at
nuclear powerplants in this state to an independent, offsite
spent fuel storage installation.
Is the CPUC the right agency to regulate transportation-related
efforts? In consideration of the many challenges the CPUC is
facing, the question must be raised as to whether the CPUC is
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the right state agency to oversee transportation-related
efforts. After federal deregulation of trucking, the CPUC's
corresponding staffing and resources, including investigators,
were largely eliminated. Today, the CPUC is struggling to keep
up with existing demands, as well as new challenges that have
emerged, such as addressing TNCs, like Uber, Lyft and Sidecar.
Moving the transportation-related efforts at the CPUC may be
limited by constitutional requirements. However, the
legislature may wish to more deeply explore the question with
other relevant legislative committees and agencies. This bill
will require the Governor to develop and propose a plan to the
Legislature by January 31, 2018 to reorganize the non-rail
transportation for-hire functions at the CPUC to the STA by July
1, 2018. The transportation services that are mentioned
include:
Passenger Stage Corporations (PSCs) - for-hire carriers
transporting passengers over public highways on an
individual-fare basis. Examples include: Greyhound bus
service and airport shuttles.
Transportation Charter-Party Carriers (TCPs) - operate
under the direction and control of their chartering party
that arranges the transportation, on a prearranged basis.
Examples include tour buses, limousines, and TNCs,
including Uber, Lyft, and Sidecar.
Private Carriers of Passengers (PCPs) - includes
not-for-hire motor carrier transporting passengers in buses
(vehicles seating 10 or more) that are required to obtain a
"CA number" from CHP.
Household Goods Carriers - includes for-hire moving
companies.
Vessel-Common Carriers - ferries that provide
transportation on waterways according to regular schedules
between fixed points and assess individual fares.
For-hire Vessel Operators - boats that are available for
charter, and are commonly engaged for fishing and whale
watching expeditions.
Commercial Air Operators - persons who own, control,
operate, rent, or manage aircraft for any commercial
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purpose for compensation, including sightseeing and
recreational operators. This category does not include hot
air balloons or any passenger flights between airports
within California.
Another approach. Existing statutory authority in Government
Code §§12080-12081 provides the Governor the power to reorganize
the executive branch by using the executive reorganization
process. Such efforts begin with a Governor's submittal of a
reorganization plan to the Legislative Counsel for drafting into
bill language, and to the Little Hoover Commission, which
examines the plan and reports its recommendations. Thirty days
after submission to the Little Hoover Commission, the Governor
may submit the plan to the Legislature.
Appeals. A party wishing to appeal a decision of the CPUC can
appeal to the CPUC's own court or the California Supreme Court.
This unique limitation to CPUC processes means most decisions of
the CPUC stand as it is unlikely the Supreme Court will wish to
hear many of these cases. This bill proposes to allow any
action related to the California Public Records Act to be
petitioned at a superior court, where there is greater
opportunity to have a case heard. This language is identical to
language in SB 1017 (Hill) and similar to language supported by
the Senate in SB 48 (Hill, 2015).
Prior/Related Legislation
ACA 11 (Gatto, 2016) proposed a measure on the ballot to
authorize the Legislature to reallocate or reassign all or a
portion of the functions of the CPUC to other state agencies,
departments, boards, or other entities, consistent with
specified purposes and proposed to repeal the provisions of the
California Constitution pertaining to the CPUC effective January
1, 2019. The bill is currently in this committee.
AB 825 (Rendon, 2015) would have proposed a suite of reforms of
the CPUC largely directed at increased transparency of the
activities of the agency, including requiring the California
State Auditor's Office to appoint an Inspector General within
its office for the CPUC, expanding the roles and
responsibilities of the CPUC public advisor, specifying
additional requirements of commissioners, and increased
transparency of electric utilities' procurement, among others.
The bill was vetoed by the Governor.
AB 2903 (Gatto) Page 11 of ?
SB 48 (Hill, 2015) would have proposed a suite of reforms of the
governance and operations of the CPUC, including, among others,
requiring sessions in Sacramento, applying the Code of Ethics
from the Administrative Procedures Act (APA) to administrative
law judges, clarifying and augmenting the information the CPUC
must provide the Legislature in its annual report, and others.
The bill was vetoed by the Governor.
SB 215 (Leno-Hueso, 2015) proposes a suite of reforms of the
rules, operations and procedures of the CPUC pertaining to the
laws and rules related to ex parte communications and criteria
and process for disqualification of commissioners to a
proceeding. The bill is on its way to the Governor.
SB 512 (Hill, 2016) proposes a suite of reforms of the
operations and governance of the CPUC, including allowing
intervenor compensation for certain local governments, requiring
specified information is available to the public, requiring
specified reporting of the CPUC regarding the timeliness of
proceedings, applying the Code of Ethics from the APA to ALJs,
and others. The bill is currently on the Senate Floor.
SB 660 (Leno-Hueso, 2015) would have proposed a suite of reforms
of the governance, rules, operations and procedures of the CPUC,
including: reform of laws and rules related to ex parte
communications, criteria and process for disqualification of
commissions to a proceeding, and authorizes the Commission to
appoint the chief administrative law judge. The bill was vetoed
by the Governor.
SJR 23 (Bates, Chapter 73, Statutes 2016) urges Congress to pass
the Interim Consolidated Storage Act of 2016 (House of
Representatives (H.R.) 4745) and the United States Department of
Energy (DOE) to implement the prompt and safe relocation of
spent nuclear fuel from the SONGS to a licensed and regulated
interim consolidated storage facility.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
None received
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OPPOSITION:
Communications Workers of America (CWA), District 9
ARGUMENTS IN SUPPORT: The author states: "The CPUC is spread
too thin, and has too many issues within its jurisdiction. Now
is time to think about how we can make the CPUC more focused,
specialized, and accountable. The residents in Porter Ranch are
not alone. It's hard to find a community in California that
wasn't affected by the CPUC in recent years. These much-needed
reforms are a significant step to restore the public's trust in
the commission, and ensuring that it does what is best for
ratepayers."
ARGUMENTS IN OPPOSITION: According to CWA in opposing this
bill: "Despite recent amendments, we still urge you to oppose
this bill. We cannot support telecommunications' effort to
conduct a new study that again lacks adequate requirements of
broad stakeholder participation, including the CWA.
Additionally, CWA opposes any effort to expedite the study for
the benefit of the telecommunications industry. It is likely
that telecom is also attempting to manipulate the timing of the
report
This Act to be known as the Governance, Accountability,
Transparency, and Transportation Oversight Act of 2016
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 is transparent and accountable to
Californians and is focused on the safety of our communities may
require reforming the responsibilities of the Public Utilities
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
AB 2903 (Gatto) Page 13 of ?
the overarching goals of the various programs carried out by
federal and state agencies, including the Federal Communications
Commission and the Public Utilities Commission, and include a
discussion of whether the commission, as a whole, is
strategically aligned towards a clearly articulated public goal.
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.
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.
(b) (c) The commission shall adopt maintain an updated
Conflict conflict of Interest Code interest code and Statement
of Incompatible Activities, by February 28, 1998, 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
AB 2903 (Gatto) Page 14 of ?
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 a Chief Internal Auditor
internal auditor , who shall hold office at the pleasure of the
commission.
(b) The Chief Internal Auditor 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 Chief Internal Auditor internal auditor shall report his
or her findings and recommendations directly to an audit
subcommittee of the commission.
(d) The Chief Internal Auditor 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
AB 2903 (Gatto) Page 15 of ?
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. 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. The CPUC shall establish processes and procedures,
including rules to allow for appeals by any public utility over
whom the emergency authority has been exercised, as determined
AB 2903 (Gatto) Page 16 of ?
by the commission. The commission shall adopt rules establishing
processes and procedures pursuant to this section by July 1,
2017. The Commission shall establish processes and procedures,
including rules to allow for appeals by any public utility over
whom the emergency authority has been exercised, as determined
by the commission. The commission shall adopt rules establishing
processes and procedures pursuant to this section by July 1,
2017.
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
AB 2903 (Gatto) Page 17 of ?
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. The public advisor shall assess the nature
of substantive complaints and comments from members of the
public and take them into consideration when analyzing and
recommending options for resolutionof the matters underlying
those complaints and comments.
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 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)
NEW SECTION
There is within the legal division of the commission an ethics
officer who ombudsman, or staff under the direction of the
ombudsman, who shall be appointed by the commission. The ethics
officer shall be responsible for all of the following:
(a)instituting 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.
(b)Providing confidential advice to commissioners and employees
of the commission on compliance with the commission's conflict
of interest code, statement of incompatible activities, and
limitations upon ex parte communications. The ethics officer
shall maintain the confidentiality of the commissioner's or
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employee's identity unless the commissioner or employee
expressly indicates a desire to communicate his or her
identity to the commission.
SEC. 11.
Section 1759 of the Public Utilities Code is amended to read:
1759. (a) No court of this state, except the Supreme Court and
the court of appeal, to the extent specified in this article,
shall have jurisdiction to review, reverse, correct, or annul
any order or decision of the commission or to suspend or delay
the execution or operation thereof, or to enjoin, restrain, or
interfere with the commission in the performance of its official
duties, as provided by law and the rules of court.
(b) The writ of mandamus shall lie from the Supreme Court and
from the court of appeal to the commission in all proper cases
as prescribed in Section 1085 of the Code of Civil Procedure.
(c) This section does not apply to an action arising from the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code).
Such an action may be brought in the superior court.
SEC. 12.
Section 910.8 is added to the Public Utilities Code, to read:
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 better serve the public, and 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,
AB 2903 (Gatto) Page 19 of ?
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. 12. 13
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. 13. 14
Section 8331 is added to the Public Utilities Code, to read:
8331.
The commission shall advocate before the relevant federal
agencies, including the Department of Energy and the Nuclear
Regulatory Commission , for expedited relocation of any spent
fuel stored at nuclear powerplants in this state to an
independent, offsite spent fuel storage installation.
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.
AB 2903 (Gatto) Page 20 of ?
(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 coordinated with the Transportation Agency to
ensure that rail crossings and rail transit systems are
assessed, and projects are 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.
-- END --
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