Amended in Senate January 4, 2016

Amended in Senate April 15, 2015

Senate Bill No. 215

Introduced by begin delete Senator end delete begin insert Senators end insert Leno begin insert and Hueso end insert

February 12, 2015

An act to amend Sections begin delete 305, 307, 308, end delete 309.6, 1701.1, begin delete and 1701.2 end delete begin insert 1701.2, 1701.3, 1701.4, and 1701.5 end insert of, and to add begin delete Section 305.5 end delete begin insert Sections 1701.6, 1701.7, and 1701.8 end insert to, the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 215, as amended, Leno. Public Utilities Commission.

(1) The California Constitution establishes the Public Utilities Commission, with jurisdiction over all public utilities. The California Constitution grants the commission certain general powers over all public utilities, subject to control by the Legislature, and authorizes the Legislature, unlimited by the other provisions of the California Constitution, to confer additional authority and jurisdiction upon the commission that is cognate and germane to the regulation of public utilities. Existing law requires the begin delete 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 Office of Ratepayer Advocates. Existing law authorizes the executive director and the attorney to undertake certain actions if directed or authorized by the president, except as otherwise directed or authorized by vote of the commission. end delete begin insert commission, upon initiating a hearing, to assign one or more commissioners to oversee the case and an administrative law judge, where appropriate. Existing law requires the assigned commissioner to prepare and issue, by order or ruling, a scoping memo that describes the issues to be considered and the applicable timetable for resolution. Existing law requires the commission to adopt procedures on the disqualification of administrative law judges due to bias or prejudice similar to those of other state agencies and superior courts. end insert

begin delete

This bill would repeal the requirement that the president direct the executive director, the attorney, and other commission staff. The bill would delete the authority of the president to direct or authorize the executive director and attorney to undertake certain actions, and would instead require that they be directed or authorized to undertake those actions by the commission. The bill would authorize the commission to delegate specific management and internal oversight functions to committees composed of 2 or more commissioners and would exempt a meeting conducted by those committees from the Bagley-Keene Open Meeting Act. The bill would require the commission to vote in an open meeting on the assignment or reassignment of any proceeding to one or more commissioners.

end delete begin delete

(2) Existing law requires the commission, upon initiating a hearing, to assign one or more commissioners to oversee the case and an administrative law judge, where appropriate. Existing law requires the assigned commissioner to prepare and issue, by order or ruling, a scoping memo that describes the issues to be considered and the applicable timetable for resolution. Existing law requires the commission to adopt procedures on the disqualification of administrative law judges due to bias or prejudice similar to those of other state agencies and superior courts.

end delete

This bill would require the commission to additionally adopt procedures on disqualification of commissioners due to bias or prejudice similar to those of other state agencies and superior courts. For ratesetting or adjudicatory proceedings, the bill would require a commissioner or an administrative law judge to be disqualified if there is an appearance of bias or prejudice based on specified criteria. The bill would prohibit commission procedures from authorizing a commissioner or administrative law judge from ruling on a motion made by a party to a proceeding to disqualify the commissioner or administrative law judge due to bias or prejudice.

begin delete

(3) Existing law

end delete

begin insert (2) end insert begin insert   end insert begin insert 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. For these purposes, quasi-legislative cases are cases that establish policy rulemakings and investigations, which may establish rules affecting an entire industry, adjudication cases are enforcement cases and complaints, except those challenging the reasonableness of any rates or charges, and ratesetting cases are cases in which rates are established for a specific company, including general rate cases, performance-based ratemaking, and other ratesetting mechanisms. The act end insert regulates communications in hearings before the commission and defines “ex parte communication” to mean any oral or written communication between a decisionmaker and a person with an interest in a matter before the commission concerning substantive, but not procedural, issues that does not occur in a public hearing, workshop, or other public proceeding, or on the official record of the proceeding on the matter. Existing law defines “person with an interest” to mean, among other things, a person with a financial interest in a matter before the commission, or an agent or employee of the person with a financial interest, or a person receiving consideration for representing the person with a financial interest. Existing law requires the commission, by regulation, to adopt and publish a definition of the terms “decisionmaker” and “persons” for those purposes, along with any requirements for written reporting of ex parte communications and appropriate sanctions for noncompliance with any rule proscribing ex parte communications. begin insert The act provides that ex parte communications are prohibited in adjudication cases and are prohibited in ratesetting cases, with certain exceptions. The act requires that ex parte communications be permitted in quasi-legislative cases, without any restrictions. The commission’s Rules of Practice and Procedure define a “decisionmaker” as any commissioner, the Chief Administrative Law Judge, any Assistant Chief Administrative Law Judge, the assigned administrative law judge, or the Law and Motion Administrative Law Judge. The Rules of Practice and Procedure provide that communications with a commissioner’s personal advisors are subject to all of the restrictions on, and reporting requirements applicable to, ex parte communications, except that oral communications with an advisor in ratesetting proceedings are permitted without the restrictions. end insert

This bill would begin insert require that the commission determine whether every proceeding, not just those requiring a hearing, is a quasi-legislative, adjudication, or ratesetting proceeding. The bill would delete the provision that an ex parte communication concerns a substantive, but not a procedural matter, and instead would provide that an ex parte communication concerns any matter that the commission has not specified in its Rules of Practice and Procedure as being a procedural matter and that does not occur in a public hearing, workshop, or other public proceeding, or on the official record of the proceeding on the matter. The bill would end insert begin insert prohibit the commission from considering as a procedural matter communications between an interested person and a decisionmaker regarding which commissioner or administrative law judge may be assigned to a matter before the commission. The bill would end insert define a person involved in issuing credit ratings or advising entities or persons who may invest in the shares or operations of any party to a proceeding as a person with a financial interest. The bill would begin delete define “decisionmaker” to include the executive director of the commission, the general counsel of the commission, and the directors of specified divisions of the commission. The bill would require communications between a person with an interest who is not a party to a commission proceeding and a decisionmaker to be reported by the decisionmaker but would not require the communications to be reported by the person with an interest who is not a party to a commission proceeding. end delete begin insert require that the commission, by rule, adopt and publish a definition of decisionmakers, that would be required to include certain individuals in the commission. The bill would require the commission to establish and maintain a communications log summarizing all oral or written ex parte communications that occur between an interested person and any decisionmaker. The bill would require the commission to post the communications log on its Internet Web site. end insert

begin insert

This bill would require that a decisionmaker, in an adjudication or ratesetting case, who makes or receives a prohibited ex parte communication, or who receives an ex parte communication that was not timely reported, to disclose certain information regarding the communication in the record of the proceeding before the commission takes a vote on the matter. If a prohibited ex parte communication is not disclosed until after the commission has issued a decision on the matter to which the communication pertained, a party not participating in the communication would be authorized to file a petition to rescind or modify the decision. The bill would require the commission to render decisions based upon the record in a case and would provide that an ex parte communication not be part of the record of the proceeding.

end insert begin insert

This bill would provide that ex parte communications may be permitted in quasi-legislative proceedings, but would require that they be reported within 3 working days in the communications log maintained by the commission.

end insert begin insert

This bill would require the commission to additionally prohibit communications concerning procedural issues in adjudication cases between parties or persons with an interest and decisionmakers, except for the assigned administrative law judge.

end insert begin insert

Under existing law, the exceptions to the prohibition upon ex parte communications in ratesetting proceedings authorize a commissioner to permit oral ex parte communications if all interested parties are invited and given not less than 3 days’ notice. If an ex parte communication meeting is granted to any party, it is required that all other parties also be granted individual ex parte meetings of a substantially equal period of time and that all parties be sent a notice of that authorization at the time the request is granted, at least 3 days prior to the meeting. The exceptions authorize a commissioner to permit written ex parte communications by any party if copies of the communication are transmitted to all parties.

end insert begin insert

This bill would delete the requirement that if an ex parte communication meeting is granted to any party in a ratesetting proceeding, that all other parties also be granted individual ex parte meetings of a substantially equal period of time and that all parties be sent a notice of that authorization at the time the request is granted, at least 3 days prior to the meeting. The bill would prohibit oral communications concerning procedural matters in ratesetting cases between parties or persons with an interest and decisionmakers other than the assigned administrative law judge, except that a commissioner would be authorized to permit an oral communication relative to procedural matters if all interested parties are invited and given not less than 3 days’ notice. The bill would prohibit written ex parte communications concerning procedural matters in ratesetting cases between parties or persons with an interest and decisionmakers other than the assigned administrative law judge, except that a commissioner would be authorized to permit a written communication relative to procedural issues by any party if copies of the communication are transmitted to all parties on the same day.

end insert begin insert

This bill would expressly make the prohibitions upon ex parte communications that relate to adjudicatory or ratesetting proceedings applicable to ex parte communications that occur at conferences, as defined. The bill would also make the requirements that pertain to ex parte communications that relate to quasi-legislative proceedings applicable to ex parte communications that occur at conferences.

end insert begin insert

This bill would authorize the commission to impose civil sanctions, including civil penalties, on any entity or person, other than a decisionmaker or employee of the commission, that violates ex parte communication requirements. The bill would authorize the Attorney General to bring an enforcement action in the Superior Court of the City and County of San Francisco against a decisionmaker or employee of the commission who violates the ex parte communication requirements.

end insert begin delete

(4)  The Public Utilities Act requires the commission to prohibit ex parte communications in adjudication cases.

end delete

begin insert (3) end insert begin insert   end insert Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

begin delete

This bill would require the commission to additionally prohibit communications concerning procedural issues in adjudication cases between parties or persons with an interest and decisionmakers, except for the assigned administrative law judge. Because a violation of this prohibition would be a crime, this bill would impose a state-mandated local program.

end delete begin insert

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by expanding the application of a crime.

end insert begin delete

(5)

end delete

begin insert (4) end insert  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.

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

begin delete

(6) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

end delete begin delete

This bill would make legislative findings to that effect.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

begin delete

  

SECTION 1.  

Section 305 of the Public Utilities Code is
amended to read:

305.  

The Governor shall designate a president of the
commission from among the members of the commission. The
president shall preside at all meetings and sessions of the
commission.

SEC. 2.  

Section 305.5 is added to the Public Utilities Code, to
read:

305.5.  

(a) The commission shall direct the executive director,
the attorney, and other staff of the commission, except for the staff
of the division described in Section 309.5, in performance of their
duties.

(b) The commission may delegate specific management and
internal oversight functions to committees composed of two or
more commissioners. Committees shall meet regularly with staff
and shall report to the commission for additional guidance or
approval of decisions pertaining to the operations of the
commission.

(c) A meeting conducted pursuant to subdivision (b) is exempt
from the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title
2 of the Government Code).

(d) The commission shall vote in an open meeting on the
assignment or reassignment of any proceeding to one or more
commissioners.

SEC. 3.  

Section 307 of the Public Utilities Code is amended
to read:

307.  

(a) The commission may appoint as attorney to the
commission an attorney at law of this state, who shall hold office
during the pleasure of the commission.

(b) The attorney shall represent and appear for the people of the
State of California and the commission in all actions and
proceedings involving any question under this part or under any
order or act of the commission. If directed to do so by the
commission, the attorney shall intervene, if possible, in any action
or proceeding in which any such question is involved.

(c) The attorney shall commence, prosecute, and expedite the
final determination of all actions and proceedings directed or
authorized by the commission, advise the commission and each
commissioner, when so requested, in regard to all matters in
connection with the powers and duties of the commission and the
members thereof, and generally perform all duties and services as
attorney to the commission that the commission may require of
him or her.

SEC. 4.  

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, and perform any other duties as the
commission prescribes. The commission 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.

end delete

begin delete SEC. 5. end delete
begin insert SECTION 1. end insert   

Section 309.6 of the Public Utilities Code is
amended to read:

309.6.  

(a) The commission shall adopt procedures on the
disqualification of commissioners and administrative law judges
due to bias or prejudice similar to those of other state agencies and
superior courts.

(b) (1) For ratesetting and adjudicatory proceedings, a
commissioner or administrative law judge shall be disqualified if
there is an appearance of bias or prejudice based on any of the
following:

(A) Actions taken during the begin delete proceeding. end delete begin insert proceeding that
demonstrate bias or prejudice. end insert

(B) Private communications before the commencement of the
proceeding to influence the request for relief sought by any party
to the proceeding.

(C) Actions demonstrating any commitment to provide relief
to a party.

(2) Past work experience by the commissioner or administrative
law judge shall not be a sufficient basis for demonstrating an
appearance of bias or prejudice pursuant to paragraph (1).

(c) The commission procedures shall not authorize a
commissioner or administrative law judge to rule on a motion
made by a party to a proceeding to disqualify the commissioner
or administrative law judge due to bias or prejudice.

(d) The commission shall develop the procedures with the
opportunity for public review and comment.

begin delete

SEC. 6.  

Section 1701.1 of the Public Utilities Code is amended
to read:

1701.1.  

(a) The commission, consistent with due process,
public policy, and statutory requirements, shall determine whether
a proceeding requires a hearing. The commission shall determine
whether the matter requires a quasi-legislative, an adjudication,
or a ratesetting hearing. The commission’s decision as to the nature
of the proceeding shall be subject to a request for rehearing within
10 days of the date of that decision. If that decision is not appealed
to the commission within that time period it shall not be
subsequently subject to judicial review. Only those parties who
have requested a rehearing within that time period shall
subsequently have standing for judicial review and that review
shall only be available at the conclusion of the proceeding. The
commission shall render its decision regarding the rehearing within
30 days. The commission shall establish regulations regarding ex
parte communication on case categorization issues.

(b) The commission upon initiating a hearing shall assign one
or more commissioners to oversee the case and an administrative
law judge where appropriate. The assigned commissioner shall
schedule a prehearing conference. The assigned commissioner
shall prepare and issue by order or ruling a scoping memo that
describes the issues to be considered and the applicable timetable
for resolution.

(c) (1) Quasi-legislative cases, for purposes of this article, are
cases that establish policy, including, but not limited to,
rulemakings and investigations which may establish rules affecting
an entire industry.

(2) Adjudication cases, for purposes of this article, are
enforcement cases and complaints except those challenging the
reasonableness of any rates or charges as specified in Section 1702.

(3) Ratesetting cases, for purposes of this article, are cases in
which rates are established for a specific company, including, but
not limited to, general rate cases, performance-based ratemaking,
and other ratesetting mechanisms.

(4) (A) “Ex parte communication,” for purposes of this article,
means any oral or written communication between a decisionmaker
and a person with an interest in a matter before the commission
concerning substantive, but not procedural issues, that does not
occur in a public hearing, workshop, or other public proceeding,
or on the official record of the proceeding on the matter. “Person
with an interest,” for purposes of this article, means any of the
following:

(i) Any applicant, an agent or an employee of the applicant, or
a person receiving consideration for representing the applicant, or
a participant in the proceeding on any matter before the
commission.

(ii) Any person with a financial interest, as described in Article
1 (commencing with Section 87100) of Chapter 7 of Title 9 of the
Government Code, in a matter before the commission, or an agent
or employee of the person with a financial interest, or a person
receiving consideration for representing the person with a financial
interest. A person involved in issuing credit ratings or advising
entities or persons who may invest in the shares or operations of
any party to a proceeding is a person with a financial interest.

(iii) A representative acting on behalf of any civic,
environmental, neighborhood, business, labor, trade, or similar
organization who intends to influence the decision of a commission
member on a matter before the commission.

(B) Decisionmakers shall include the general counsel, the
executive director, the director of the Energy Division, the director
of the Communications Division, the director of the Water and
Audits Division, and the director of the Safety and Enforcement
Division. The commission shall by regulation adopt and publish
a definition of additional decisionmakers and persons for purposes
of this section, along with any requirements for written reporting
of ex parte communications and appropriate sanctions for
noncompliance with any rule proscribing ex parte communications.
The regulation shall provide that reportable communications shall
be reported by the party, whether the communication was initiated
by the party or the decisionmaker. However, communications
between a person with an interest who is not a party to a
commission proceeding and a decisionmaker shall be reported by
the decisionmaker in accordance with procedures established
pursuant to this section and shall not be required to be reported by
the person with an interest who is not a party to a commission
proceeding. Communications shall be reported within three
working days of the communication by filing a “Notice of Ex Parte
Communication” with the commission in accordance with the
procedures established by the commission for the service of that
notice. The notice shall include the following information:

(i) The date, time, and location of the communication, and
whether it was oral, written, or a combination.

(ii) The identity of the recipient and the person initiating the
communication, as well as the identity of any persons present
during the communication.

(iii) A description of the party’s, but not the decisionmaker’s,
communication and its content, to which shall be attached a copy
of any written material or text used during the communication.

(C) An ex parte communication shall not be part of the record
of any proceeding and shall not be considered, or relied upon, for
purposes of the commission’s resolution of contested issues.

SEC. 7.  

Section 1701.2 of the Public Utilities Code is amended
to read:

1701.2.  

(a) If the commission pursuant to Section 1701.1 has
determined that an adjudication case requires a hearing, the
procedures prescribed by this section shall be applicable. The
assigned commissioner or the assigned administrative law judge
shall hear the case in the manner described in the scoping memo.
The scoping memo shall designate whether the assigned
commissioner or the assigned administrative law judge shall preside
in the case. The commission shall provide by rule for peremptory
challenges and challenges for cause of the administrative law judge.
Challenges for cause shall include, but not be limited to, financial
interests and prejudice. The rule shall provide that all parties are
entitled to one peremptory challenge of the assignment of the
administrative law judge in all cases. All parties are entitled to
unlimited peremptory challenges in any case in which the
administrative law judge has within the previous 12 months served
in any capacity in an advocacy position at the commission, been
employed by a regulated public utility, or has represented a party
or has been a party of interest in the case. The assigned
commissioner or the administrative law judge shall prepare and
file a decision setting forth recommendations, findings, and
conclusions. The decision shall be filed with the commission and
served upon all parties to the action or proceeding without undue
delay, not later than 60 days after the matter has been submitted
for decision. The decision of the assigned commissioner or the
administrative law judge shall become the decision of the
commission if no further action is taken within 30 days. Any
interested party may appeal the decision to the commission,
provided that the appeal is made within 30 days of the issuance of
the decision. The commission may itself initiate a review of the
proposed decision on any grounds. The commission decision shall
be based on the record developed by the assigned commissioner
or the administrative law judge. A decision different from that of
the assigned commissioner or the administrative law judge shall
be accompanied by a written explanation of each of the changes
made to the decision.

(b)  Notwithstanding Section 307, an officer, employee, or agent
of the commission that is personally involved in the prosecution
or in the supervision of the prosecution of an adjudication case
before the commission shall not participate in the decision of the
case, or in the decision of any factually related adjudicatory
proceeding, including participation in or advising the commission
as to findings of fact, conclusions of law, or orders. An officer,
employee, or agent of the commission that is personally involved
in the prosecution or in the supervision of the prosecution of an
adjudication case may participate in reaching a settlement of the
case, but shall not participate in the decision of the commission to
accept or reject the settlement, except as a witness or counsel in
an open hearing or a hearing closed pursuant to subdivision (d).
The Legislature finds that the commission performs both
prosecutorial and adjudicatory functions in an adjudication case
and declares its intent that an officer, employee, or agent of the
commission, including its attorneys, may perform only one of
those functions in any adjudication case or factually related
adjudicatory proceeding.

(c) (1) Ex parte communications shall be prohibited in
adjudication cases.

(2) Any oral or written communications concerning procedural
issues in adjudication cases between parties or persons with an
interest and decisionmakers, except the assigned administrative
law judge, shall be prohibited.

(d) Notwithstanding any other law, the commission may meet
in a closed hearing to consider the decision that is being appealed.
The vote on the appeal shall be in a public meeting and shall be
accompanied with an explanation of the appeal decision.

(e) Adjudication cases shall be resolved within 12 months of
initiation unless the commission makes findings why that deadline
cannot be met and issues an order extending that deadline. In the
event that a rehearing of an adjudication case is granted, the parties
shall have an opportunity for final oral argument.

(f) (1) The commission may determine that the respondent
lacks, or may lack, the ability to pay potential penalties or fines
or to pay restitution that may be ordered by the commission.

(2) If the commission determines that a respondent lacks, or
may lack, the ability to pay, the commission may order the
respondent to demonstrate, to the satisfaction of the commission,
sufficient ability to pay potential penalties, fines, or restitution that
may be ordered by the commission. The respondent shall
demonstrate the ability to pay, or make other financial
arrangements satisfactory to the commission, within seven days
of the commission commencing an adjudication case. The
commission may delegate to the attorney to the commission the
determination of whether a sufficient showing has been made by
the respondent of an ability to pay.

(3) Within seven days of the commission’s determination of the
respondent’s ability to pay potential penalties, fines, or restitution,
the respondent shall be entitled to an impartial review by an
administrative law judge of the sufficiency of the showing made
by the respondent of the respondent’s ability to pay. The review
by an administrative law judge of the ability of the respondent to
pay shall become part of the record of the adjudication and is
subject to the commission’s consideration in its order resolving
the adjudication case. The administrative law judge may enter
temporary orders modifying any financial requirement made of
the respondent pending the review by the administrative law judge.

(4) A respondent that is a public utility regulated under a rate
of return or rate of margin regulatory structure or that has gross
annual revenues of more than one hundred million dollars
($100,000,000) generated within California is presumed to be able
to pay potential penalties or fines or to pay restitution that may be
ordered by the commission, and, therefore, paragraphs (1) to (3),
inclusive, do not apply to that respondent.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1701.1 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

1701.1.  

(a) The begin delete commission, end delete begin insert end insert begin insert commission shall determine
whether each proceeding is a quasi-legislative, an adjudication,
or a ratesetting proceeding and, end insert consistent with due process, public
policy, and statutory requirements, begin delete shall end delete determine whether begin delete a end delete begin insert the end insert
proceeding requires a hearing. The begin delete commission shall determine
whether the matter requires a quasi-legislative, an adjudication,
or a ratesetting hearing. The end delete commission’s decision as to the nature
of the proceeding shall be subject to a request for rehearing within
10 days of the date of that begin delete decision. If that decision is not appealed
to the commission within that time period it shall not be
subsequently subject to judicial review. end delete begin insert decision or any subsequent
ruling that expands the scope of the proceeding. end insert Only those parties
who have requested a rehearing within that time period shall
subsequently have standing for judicial review and that review
shall only be available at the conclusion of the proceeding. The
commission shall render its decision regarding the rehearing within
30 days. The commission shall establish begin delete regulations end delete begin insert rules end insert regarding
ex parte communication on case categorization issues.

(b) The begin delete commission end delete begin insert commission, end insert upon initiating begin delete a hearing end delete begin insert an
adjudication proceeding or ratesetting proceeding, end insert shall assign
one or more commissioners to oversee the case and an
administrative law judge where appropriate. The assigned
commissioner shall schedule a prehearing conference. The assigned
commissioner shall prepare and issue by order or ruling a scoping
memo that describes the issues to be considered and the applicable
timetable for resolution. begin insert end insert begin insert The administrative law judge shall either
preside and conduct, or assist the assigned commissioner or
commissioners in presiding and conducting, any evidentiary or
adjudication hearing that may be required. end insert

begin insert

(c) The commission, upon initiating a quasi-legislative
proceeding, shall assign one or more commissioners to oversee
the case and an administrative law judge, where appropriate, who
may be assisted by a technical advisory staff member in conducting
the proceeding. The assigned commissioner shall prepare and
issue by order or ruling a scoping memo that describes the issues
to be considered and the applicable timetable for resolution.

end insert begin delete

(c)

end delete

begin insert (d) end insert  (1) Quasi-legislative cases, for purposes of this article, are
cases that establish policy, including, but not limited to,
rulemakings and investigations which may establish rules affecting
an entire industry.

(2) Adjudication cases, for purposes of this article, are
enforcement cases and complaints except those challenging the
reasonableness of any rates or charges as specified in Section 1702.

(3) Ratesetting cases, for purposes of this article, are cases in
which rates are established for a specific company, including, but
not limited to, general rate cases, performance-based ratemaking,
and other ratesetting mechanisms.

begin insert

(4) “All-party conference,” for purposes of this article, is a
public hearing held on the record before a quorum of
commissioners at which parties to a proceeding shall have the
right to participate and communicate their views regarding any
factual, legal, or policy issue in the proceeding.

end insert begin delete

(4)

end delete

begin insert (e) end insert   begin insert (1) end insert begin insert   end insert begin insert (A) end insert begin insert   end insert “Ex parte communication,” for purposes of this
article, means any oral or written communication between a
decisionmaker and begin delete a person with an interest in a end delete begin insert end insert begin insert an interested
person concerning any end insert matter before the commission begin delete concerning
substantive, but not procedural issues, end delete begin insert that the commission has not
specified in its Rules of Practice and Procedure as being a
procedural matter and end insert that does not occur in a public hearing,
workshop, or other public proceeding, or on the official record of
the proceeding on the matter. begin delete “Person with an interest,” for
purposes of this article, means any of the following: end delete begin insert end insert begin insert The
commission shall specify in its Rules of Practice and Procedure,
enacted by rulemaking, the types of issues considered procedural
matters under this article. Any communication between an
interested person and a decisionmaker regarding which
commissioner or administrative law judge may be assigned to a
matter before the commission shall not be deemed to be a
procedural matter and shall be an ex parte communication subject
to this article. end insert

begin insert

(B) “Interested person,” for purposes of this article, means any
of the following:

end insert begin delete

(A)

end delete

begin insert (i) end insert  Any applicant, an agent or an employee of the applicant, or
a person receiving consideration for representing the applicant, or
a participant in the proceeding on any matter before the
commission.

begin delete

(B)

end delete

begin insert (ii) end insert  Any person with a financial interest, as described in Article
1 (commencing with Section 87100) of Chapter 7 of Title 9 of the
Government Code, in a matter before the commission, or an agent
or employee of the person with a financial interest, or a person
receiving consideration for representing the person with a financial
interest. begin insert end insert begin insert A person involved in issuing credit ratings or advising
entities or persons who may invest in the shares or operations of
any party to a proceeding is a person with a financial interest. end insert

begin delete

(C)

end delete

begin insert (iii) end insert  A representative acting on behalf of any civic,
environmental, neighborhood, business, labor, trade, or similar
organization who intends to influence the decision of a commission
member on a matter before the commission.

begin insert

(iv) Other categories of individuals deemed by the commission,
by rule, to be an interested person.

end insert

begin insert (2) end insert begin insert   end insert The commission shall by begin delete regulation end delete begin insert rule end insert adopt and publish
a definition of decisionmakers and begin insert interested end insert persons for purposes
of this begin delete section, end delete begin insert article, end insert along with any requirements for written
reporting of ex parte communications and appropriate sanctions
for noncompliance with any rule proscribing ex parte
communications. The begin delete regulation shall provide that reportable
communications shall be reported by the party, whether the
communication was initiated by the party or the decisionmaker.
Communications shall be reported within three working days of
the communication by filing a “Notice of Ex Parte
Communication” with the commission in accordance with the
procedures established by the commission for the service of that
notice. The notice shall include the following information: end delete begin insert end insert
begin insert definition of decisionmakers shall include, but is not limited to,
each commissioner; the attorney for the commission; the executive
director of the commission; the personal staff of a commissioner
if the staff is acting in a policy or legal advisory capacity; the chief
administrative law judge of the commission; and the administrative
law judge assigned to the proceeding. end insert

begin insert

(3) For adjudication and ratesetting cases, the rules shall
provide that ex parte communications shall be prohibited, as
required by this article. The rules shall provide that if an ex parte
communication occurs that is prohibited by this article, whether
initiated by a decisionmaker or an interested person, all of the
following shall be required:

end insert begin insert

(A) The interested person shall report the communication within
one working day of the communication by filing a notice with the
commission that includes all the following:

end insert

(i) The date, time, and location of the communication, begin delete and end delete
whether begin delete it end delete begin insert the communication end insert was oral, begin insert or end insert written, or a
begin delete combination. end delete begin insert combination of both, and the communication medium
utilized. end insert

(ii) The identity of the begin delete recipient and the end delete begin insert decisionmaker, the
identity of the end insert person initiating the communication, begin delete as well as the
identity of any persons present during the communication. end delete begin insert end insert begin insert and
any other persons present. end insert

begin insert

(iii) A complete and comprehensive description of the interested
person’s and the decisionmaker’s communication and its content.

end insert begin delete

(iii)

end delete

begin insert (iv) end insert  A begin delete description of the party’s, but not the decisionmaker’s,
communication and its content, to which shall be attached a end delete copy
of any written material or text used during the communication.

begin insert

(B) Any decisionmaker who participated in the communication
shall comply with both of the following:

end insert begin insert

(i) If the interested person who participated in the
communication has not timely submitted the notice required by
subparagraph (A), the decisionmaker shall promptly prepare and
file a notice that includes the information required by
subparagraph (A).

end insert begin insert

(ii) If the interested person has timely submitted the notice
required by subparagraph (A), the decisionmaker shall either
promptly file a notice affirming the factual representations made
by the interested person in the notice or promptly file a notice
correcting or supplementing the factual representations made by
the interested person.

end insert begin insert

(4) The commission shall not take any vote on a matter where
a notice has been filed pursuant to subparagraph (A) or (B) of
paragraph (3) until all parties to the proceeding have been
provided a reasonable opportunity to respond to the
communication.

end insert begin insert

(5) If a prohibited ex parte communication is not disclosed as
required by this subdivision until after the commission has issued
a decision on the matter to which the prohibited communication
pertained, a party not participating in the communication may file
a petition to rescind or modify the decision. The party may seek a
finding that the ex parte communication was prohibited and
significantly influenced the decision’s process or outcome as part
of any petition to rescind or modify the decision. The commission
shall process the petition in accordance with the commission’s
procedures for petitions for modification and shall issue a decision
on the petition no later than 180 days after the filing of the petition.

end insert begin insert

(6) (A) Ex parte communications that occur at conferences that
are related to an adjudication or ratesetting proceeding shall be
prohibited consistent with the ex parte communications
requirements of this article.

end insert begin insert

(B) Ex parte communications that occur at conferences and that
are related to a quasi-legislative proceeding shall be governed by
the ex parte communication disclosure requirements developed
by the commission.

end insert begin insert

(C) For purposes of this section, “ex parte communications that
occur at conferences” includes, but is not limited to,
communications in a private setting or during meals, entertainment
events, and tours, and informal discussions among conference
attendees.

end insert begin insert

(7) The commission shall render its decisions based on the
evidence in the record. Ex parte communications shall not be a
part of the record of the proceedings.

end insert begin insert

(f) The commission may meet in a closed session to discuss
administrative matters so long as no collective consensus is
reached or vote taken on any matter requiring a vote of the
commissioners. The commission shall, by rule, adopt and publish
a definition of “administrative matters” for purposes of this
section.

end insert begin insert

(g) The commission shall permit oral and written comments
received from the public at noticed public participation hearings
convened by the commission to be included in the record of its
proceedings. The commission shall provide parties to the
proceeding a reasonable opportunity to respond to any public
comments included in the record of proceedings.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1701.2 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

1701.2.  

(a) If the commission pursuant to Section 1701.1 has
determined that an adjudication case requires a hearing, begin delete the
procedures prescribed by this section shall be applicable. The
assigned commissioner or the assigned administrative law judge
shall hear the case in the manner described in the scoping memo.
The scoping memo shall designate whether the assigned
commissioner or the assigned administrative law judge shall preside
in the case. The commission shall provide by rule for peremptory
challenges and challenges for cause of the administrative law judge.
Challenges for cause shall include, but not be limited to, financial
interests and prejudice. The rule shall provide that all parties are
entitled to one peremptory challenge of the assignment of the
administrative law judge in all cases. All parties are entitled to
unlimited peremptory challenges in any case in which the
administrative law judge has within the previous 12 months served
in any capacity in an advocacy position at the commission, been
employed by a regulated public utility, or has represented a party
or has been a party of interest in the case. The end delete begin insert end insert begin insert assigned
commissioner or the assigned administrative law judge shall hear
the case in the manner described in the scoping memo. The scoping
memo shall designate whether the assigned commissioner or the
assigned administrative law judge shall preside in the case. end insert

begin insert

(b) The commission shall provide by rule for peremptory
challenges and challenges for cause of the administrative law
judge. Challenges for cause shall include, but not be limited to,
financial interests and prejudice. The rule shall provide that all
parties are entitled to one peremptory challenge of the assignment
of the administrative law judge in all cases. All parties are entitled
to unlimited peremptory challenges in any case in which the
administrative law judge has within the previous 12 months served
in any capacity in an advocacy position at the commission, been
employed by a regulated public utility, or has represented a party
or has been an interested person in the case.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert assigned commissioner or the administrative law judge
shall prepare and file a decision setting forth recommendations,
findings, and conclusions. The decision shall be filed with the
commission and served upon all parties to the action or proceeding
without undue delay, not later than 60 days after the matter has
been submitted for decision. The decision of the assigned
commissioner or the administrative law judge shall become the
decision of the commission if no further action is taken within 30
days. Any begin delete interested end delete party may appeal the decision to the
commission, provided that the appeal is made within 30 days of
the issuance of the decision. The commission may itself initiate a
review of the proposed decision on any grounds. begin delete The commission
decision shall be based on the record developed by the assigned
commissioner or the administrative law judge. A decision different
from that of the assigned commissioner or the administrative law
judge shall be accompanied by a written explanation of each of
the changes made to the decision. end delete

begin insert

(d) The commission may hold an all-party conference before a
quorum of commissioners at which all parties have an opportunity
to be heard. The commission shall adopt rules for implementation
of all-party conferences that ensure the broadest participation by
parties to the proceeding that the commission can reasonably
accommodate consistent with the commissioners’ other duties and
responsibilities.

end insert begin insert

(e) The commission’s decision shall be supported by findings
of fact on all issues material to the decision, and the findings of
fact shall be based on the record developed by the assigned
commissioner or the administrative law judge. A decision different
from that of the assigned commissioner or the administrative law
judge shall be accompanied by a written explanation of each of
the changes made to the decision.

end insert begin delete

(b)

end delete

begin insert (f) end insert   Notwithstanding Section 307, an officer, employee, or agent
of the commission that is personally involved in the prosecution
or in the supervision of the prosecution of an adjudication case
before the commission shall not participate in the decision of the
case, or in the decision of any factually related adjudicatory
proceeding, including participation in or advising the commission
as to findings of fact, conclusions of law, or orders. An officer,
employee, or agent of the commission that is personally involved
in the prosecution or in the supervision of the prosecution of an
adjudication case may participate in reaching a settlement of the
case, but shall not participate in the decision of the commission to
accept or reject the settlement, except as a witness or counsel in
an open hearing or a hearing closed pursuant to subdivision begin delete (d). end delete
begin insert (h). end insert The Legislature finds that the commission performs both
prosecutorial and adjudicatory functions in an adjudication case
and declares its intent that an officer, employee, or agent of the
commission, including its attorneys, may perform only one of
those functions in any adjudication case or factually related
adjudicatory proceeding.

begin delete

(c)

end delete

begin insert (g) end insert   begin insert (1) end insert begin insert   end insert Ex parte communications shall be prohibited in
adjudication cases.

begin insert

(2) Any oral or written communications concerning procedural
matters in adjudication cases between interested persons and
decisionmakers, except the assigned administrative law judge,
shall be prohibited.

end insert begin delete

(d)

end delete

begin insert (h) end insert  Notwithstanding any other law, the commission may meet
in a closed hearing to consider the decision that is being appealed.
The vote on the appeal shall be in a public meeting and shall be
accompanied with an explanation of the appeal decision.

begin delete

(e)

end delete

begin insert (i) end insert  Adjudication cases shall be resolved within 12 months of
initiation unless the commission makes findings why that deadline
cannot be met and issues an order extending that deadline. In the
event that a rehearing of an adjudication case is granted, the parties
shall have an opportunity for final oral argument.

begin delete

(f)

end delete

begin insert (j) end insert  (1) The commission may determine that the respondent
lacks, or may lack, the ability to pay potential penalties or fines
or to pay restitution that may be ordered by the commission.

(2) If the commission determines that a respondent lacks, or
may lack, the ability to pay, the commission may order the
respondent to demonstrate, to the satisfaction of the commission,
sufficient ability to pay potential penalties, fines, or restitution that
may be ordered by the commission. The respondent shall
demonstrate the ability to pay, or make other financial
arrangements satisfactory to the commission, within seven days
of the commission commencing an adjudication case. The
commission may delegate to the attorney to the commission the
determination of whether a sufficient showing has been made by
the respondent of an ability to pay.

(3) Within seven days of the commission’s determination of the
respondent’s ability to pay potential penalties, fines, or restitution,
the respondent shall be entitled to an impartial review by an
administrative law judge of the sufficiency of the showing made
by the respondent of the respondent’s ability to pay. The review
by an administrative law judge of the ability of the respondent to
pay shall become part of the record of the adjudication and is
subject to the commission’s consideration in its order resolving
the adjudication case. The administrative law judge may enter
temporary orders modifying any financial requirement made of
the respondent pending the review by the administrative law judge.

(4) A respondent that is a public utility regulated under a rate
of return or rate of margin regulatory structure or that has gross
annual revenues of more than one hundred million dollars
($100,000,000) generated within California is presumed to be able
to pay potential penalties or fines or to pay restitution that may be
ordered by the commission, and, therefore, paragraphs (1) to (3),
inclusive, do not apply to that respondent.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1701.3 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

1701.3.  

(a) If the commission pursuant to Section 1701.1 has
determined that a ratesetting case requires a hearing, the procedures
prescribed by begin delete this section end delete begin insert subdivisions (b), (d), (f), and (i) end insert shall be
applicable. begin delete The end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert assigned commissioner shall determine prior to the first
hearing whether the commissioner or the assigned administrative
law judge shall be designated as the principal hearing officer. The
principal hearing officer shall be present for more than one-half
of the hearing days. The decision of the principal hearing officer
shall be the proposed decision. begin delete An end delete

begin insert (c) end insert begin insert   end insert begin insert An end insert alternate decision may be issued by the assigned
commissioner or the assigned administrative law judge who is not
the principal hearing officer. begin delete The end delete begin insert Any alternate decision may be
filed with the commission and served upon all parties to the
proceeding any time prior to issuance of a final decision by the
commission, consistent with the requirements of Section 311. end insert

begin insert (d) end insert begin insert   end insert begin insert The end insert commission shall establish a procedure for any party to
request the presence of a commissioner at a hearing. The assigned
commissioner shall be present at begin delete the end delete begin insert any end insert closing arguments begin delete of end delete begin insert in end insert
the case. begin delete The end delete

begin insert (e) end insert begin insert   end insert begin insert The end insert principal hearing officer shall present the proposed
decision to the full commission in a public meeting. The alternate
decision, if any, shall also be presented to the full commission at
that public meeting. begin delete The alternate decision shall be filed with the
commission and shall be served on all parties simultaneously with
the proposed decision. end delete

begin insert (f) end insert begin insert   end insert The presentation to the full commission shall contain a
record of the number of days of the hearing, the number of days
that each commissioner was present, and whether the decision was
completed on time.

begin delete

(b)

end delete

begin insert (g) end insert  The commission shall provide by begin delete regulation end delete begin insert rule end insert for
peremptory challenges and challenges for cause of the
administrative law judge. Challenges for cause shall include, but
not be limited to, financial interests and prejudice. All parties shall
be entitled to unlimited peremptory challenges in any case in which
the administrative law judge has within the previous 12 months
served in any capacity in an advocacy position at the commission,
been employed by a regulated public utility, or has represented a
party or has been begin delete a party of interest end delete begin insert an interested person end insert in the
case.

begin delete

(c)

end delete

begin insert (h) end insert   begin insert (1) end insert begin insert   end insert Ex parte communications are prohibited in ratesetting
cases. begin delete However, oral ex parte communications may be permitted
at any time by any commissioner if all interested parties are invited
and given not less than three days’ notice. Written ex parte
communications may be permitted by any party provided that
copies of the communication are transmitted to all parties on the
same day. If an ex parte communication meeting is granted to any
party, all other parties shall also be granted individual ex parte
meetings of a substantially equal period of time and shall be sent
a notice of that authorization at the time that the request is granted.
In no event shall that notice be less than three days. The end delete

begin insert

(A) Oral communications may be permitted by a decisionmaker
if all parties are invited to the meeting and given not less than
three working days’ notice.

end insert begin insert

(B) Written ex parte communications by any interested person
may be permitted if copies of the communication are transmitted
to all parties on the same day as the original communication.
Written ex parte communications shall not be part of the record
of the proceeding.

end insert

begin insert (C) end insert begin insert   end insert begin insert The end insert commission may establish a period during which no
oral or written begin delete ex parte end delete begin insert all-party end insert communications begin delete shall end delete begin insert may end insert be
permitted and begin insert the commission end insert may meet in closed session during
that period, which shall not in any circumstance exceed 14 days.
If the commission holds the decision, it may permit begin delete ex parte end delete
begin insert all-party end insert communications during the first half of the interval
between the hold date and the date that the decision is calendared
for final decision. The commission may meet in closed session for
the second half of that interval.

begin insert

(2) Oral communications concerning a procedural matter in
ratesetting cases between interested persons and decisionmakers,
except the assigned administrative law judge, are prohibited, except
that an oral communication may be permitted at any time by any
decisionmaker if all parties are invited and given not less than
three working days’ notice.

end insert begin insert

(3) Written communications concerning a procedural matter in
ratesetting cases between interested persons and decisionmakers,
except the assigned administrative law judge, are prohibited, except
that a decisionmaker may permit a written communication by any
party if copies of the communication are transmitted to all parties
on the same day.

end insert begin delete

(d)

end delete

begin insert (i) end insert  Any party has the right to present a final oral argument of
its case before the commission. Those requests shall be scheduled
in a timely manner. A quorum of the commission shall be present
for the final oral arguments.

begin insert

(j) After the issuance of a proposed decision in a ratesetting
case, the commission may hold an all-party conference before a
quorum of commissioners at which all parties have an opportunity
to be heard. The commission shall adopt rules for implementation
of all-party conferences that ensure the broadest participation by
parties to the proceeding that the commission can reasonably
accommodate consistent with the commissioners’ other duties and
responsibilities.

end insert begin delete

(e)

end delete

begin insert (k) end insert  The commission may, in issuing its decision, adopt, modify,
or set aside the proposed decision or any part of the decision based
on evidence in the record. The final decision of the commission
shall be issued not later than 60 days after the issuance of the
proposed decision. Under extraordinary circumstances the
commission may extend this date for a reasonable period. The
60-day period shall be extended for 30 days if any alternate
decision is proposed pursuant to Section 311.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1701.4 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

1701.4.  

(a) If the commission pursuant to Section 1701.1 has
determined that a quasi-legislative case requires a hearing, the
procedures prescribed by begin delete this section end delete begin insert subdivisions (b) and (d) to
(f), inclusive, end insert shall be applicable. begin delete The end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert assigned administrative law judge begin insert and any assigned
technical advisory staff end insert shall act as an assistant to the assigned
commissioner in quasi-legislative cases. begin delete The assigned
commissioner shall be present for formal hearings. end delete The assigned
commissioner shall prepare the proposed rule or order with the
assistance of the administrative law begin delete judge. end delete begin insert judge and any assigned
technical advisory staff. end insert The assigned commissioner shall present
the proposed rule or order to the full commission in a public
meeting. The report shall include the number of days of hearing
and the number of days that the commissioner was present.

begin delete

(b)

end delete

begin insert (c) end insert  Ex parte communications begin delete shall be permitted without any
restrictions. end delete begin insert may be permitted. end insert begin insert Any ex parte communication shall
be reported in compliance with Section 1701.6. No reporting shall
be required for written ex parte communications that are
transmitted to all parties on the same day as the original
communication. end insert

begin delete

(c)

end delete

begin insert (d) end insert  Any party has the right to present a final oral argument of
its case before the commission. Those requests shall be scheduled
in a timely manner. A quorum of the commission shall be present
for the final oral arguments.

begin insert

(e) After the issuance of a proposed decision in a
quasi-legislative case, the commission may hold an all-party
conference before a quorum of commissioners at which all parties
have an opportunity to be heard. The commission shall adopt rules
for implementation of all-party conferences that ensure the
broadest participation by parties to the proceeding that the
commission can reasonably accommodate consistent with the
commissioners’ other duties and responsibilities.

end insert begin delete

(d)

end delete

begin insert (f) end insert  The commission may, in issuing its rule or order, adopt,
modify, or set aside the proposed decision or any part of the rule
or order. The final rule or order of the commission shall be issued
not later than 60 days after the issuance of the proposed rule or
order. Under extraordinary circumstances the commission may
extend this date for a reasonable period. The 60-day period shall
be extended for 30 days if any alternate rule or order is proposed
pursuant to Section 311.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 1701.5 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

1701.5.  

(a) Except as specified in subdivision (b), in a
ratesetting or quasi-legislative case, the commission shall resolve
the issues raised in the scoping memo within 18 months of the date
the begin delete scoping memo is issued, end delete begin insert proceeding is initiated, end insert unless the
commission makes a written determination that the deadline cannot
be met, including findings as to the reason, and issues an order
extending the deadline. begin delete No single order may extend the deadline
for more than 60 days. end delete

(b) Notwithstanding subdivision (a), the commission may
specify in a scoping memo a resolution date later than 18 months
from the date the begin delete scoping memo is issued, end delete begin insert proceeding is initiated, end insert
if that scoping memo includes specific reasons for the necessity
of a later date and the commissioner assigned to the case approves
the date.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 1701.6 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 1701.6. end insert   

(a) The commission shall establish and maintain a
communications log summarizing all oral and written ex parte
communications, as defined in Section 1701.1.

(b) The communications log shall include a summary of all oral
and written communications that meet the definition of an ex parte
communication that occur between an interested person and any
decisionmaker.

(c) Each record of a communication in the communication log
shall include the date of each communication, the persons involved
in the communication, and, to the extent known, any proceedings
that were the subject of each communication. Ex parte
communications in the summary log shall be reported no later
than three working days after the communication.

(d) The communication log shall be made available to the public
on the commission’s Internet Web site not later than July 1, 2017.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 1701.7 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 1701.7. end insert   

(a) In addition to any penalty, fine, or other
punishment applicable pursuant to Article 11 (commencing with
Section 2100), the commission may assess civil sanctions upon
any entity or person, other than a decisionmaker or employee of
the commission, who violates, fails to comply with, or procures,
aids, or abets any violation of, the ex parte communication
requirements of this article or those adopted by the commission
pursuant to this article. The civil sanctions may include civil
penalties, adverse consequences in commission proceedings, or
other appropriate commission orders directed at the entity, person,
or both the entity and person, committing the violation.

(b) (1) Except as provided in paragraph (2), a civil penalty
assessed shall not exceed fifty thousand dollars ($50,000) per
violation. Each day of a continuing violation is a separate
violation. If the violation consists of engaging in a communication
that is prohibited by the ex parte communication requirements,
each day that the violation is not disclosed to the commission and
to parties of record in the formal proceeding in which the
communication occurred shall constitute a separate violation.

(2) If the entity or person may obtain, by violating the ex parte
communication requirements, financial benefits that exceed the
maximum amount of civil penalty allowable pursuant to paragraph
(1), the commission may impose a civil penalty up to the amount
of those financial benefits.

(c) Civil penalties assessed pursuant to subdivision (b) upon
entities whose rates are determined by the commission shall be in
the form of credits to the customers of that entity. Civil penalties
collected from other entities shall be deposited in the General
Fund.

(d) In determining the appropriate civil sanctions, the
commission shall consider the following factors:

(1) The severity of the violation.

(2) The conduct of the entity or person, including the level of
experience of the entity or person in participating in commission
proceedings and whether the entity or person knowingly violated
the ex parte communication requirements.

(3) The financial resources of the entity or person.

(4) The totality of the circumstances in furtherance of the public
interest.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 1701.8 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 1701.8. end insert   

(a) The Attorney General may bring an enforcement
action in the Superior Court for the City and County of San
Francisco against a decisionmaker or employee of the commission
who violates, fails to comply with, or procures, aids, or abets any
violation of, the ex parte communication requirements in this
article or those adopted by the commission pursuant to this article.
The court shall expedite its review of the action to provide effective
and timely relief.

(b) Notwithstanding Section 1759, in an enforcement action
brought pursuant to this section, the court may grant appropriate
relief, including disqualification of the decisionmaker from one
or more proceedings and civil penalties as provided in Section
2111.

(c) In determining the appropriate relief, the court may consider
the following factors:

(1) The severity of the violation.

(2) The conduct of the decisionmaker or employee, including
whether the decisionmaker or employee knowingly violated the ex
parte communication requirements.

(3) The financial resources of the decisionmaker or employee.

(4) The totality of the circumstances in furtherance of the public
interest.

(d) The Attorney General may compromise the enforcement
action subject to approval by the court.

(e) Civil penalties collected pursuant to this section shall be
deposited into the Litigation Deposits Fund established pursuant
to Article 9 (commencing with Section 16425) of Chapter 2 of Part
2 of Division 4 of Title 2 of the Government Code.

end insert

begin delete SEC. 8. end delete
begin insert SEC. 10. end insert   

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.

begin delete

SEC. 9.  

The Legislature finds and declares that Section 2 of
this act, which adds Section 305.5 to the Public Utilities Code,
imposes a limitation on the public’s right of access to the meetings
of public bodies or the writings of public officials and agencies
within the meaning of Section 3 of Article I of the California
Constitution. Pursuant to that constitutional provision, the
Legislature makes the following findings to demonstrate the interest
protected by this limitation and the need for protecting that interest:

(a) The limitations are reasonable in light of the need for the
Public Utilities Commission to manage its internal affairs in a
manner that allows all commissioners to fully participate.

(b) The specific management and internal oversight functions
addressed by this limitation do not involve determinations of law
or policy that would bias the outcome of pending proceedings or
harm the public interest.

(c) In order to ensure the effective functioning of the
commission, this act is necessary.

end delete