Amended in Assembly August 18, 2016

Amended in Assembly August 3, 2016

Amended in Assembly August 1, 2016

Amended in Assembly June 20, 2016

Amended in Assembly May 23, 2016

Amended in Senate January 4, 2016

Amended in Senate April 15, 2015

Senate BillNo. 215


Introduced by Senators Leno and Hueso

February 12, 2015


An act to amend Sections 309.6, 1701.1, 1701.2, 1701.3, 1701.4, and 1701.5 of, and to add Sections 1701.6 and 1701.7 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. Existing law requires the commission, upon initiating a hearing, to assign one or more commissioners to oversee the case and an administrative law judge, when appropriate. 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.

This bill would require the commission to additionally adopt procedures on the 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 for bias or prejudice based on specified criteria. The bill would prohibit commission procedures from authorizing 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.

(2) 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, adjudication, or ratesetting hearing. Existing law regulates communications in matters before the commission and defines an “ex parte communication” as 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 requires the commission, by regulation, to adopt and publish any requirements for written reporting of ex parte communications and appropriate sanctions for noncompliance with any rule proscribing ex parte communications. The act provides that ex parte communications are prohibited in adjudication and ratesetting cases, with certain exceptions. The act requires that ex parte communications be permitted in quasi-legislative cases, without any restrictions.

This bill would recast the laws relating to ex parte communications in regard to commission proceedings.

(3) The Political Reform Act of 1974 (PRA) provides for the regulation of the lobbying industry, including defining the term “lobbyist” and regulating the conduct of lobbyists.

This bill would state that it is the intent of the Legislature that the commission, and any entity or person seeking to influence actions taken by the commission, be subject to all applicable ethical standards, including any applicable obligations under the PRA, including applicable lobbying obligations.

(4) 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.

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.

(5) 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.

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

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

P3    1

SECTION 1.  

Section 309.6 of the Public Utilities Code is
2amended to read:

3

309.6.  

(a) The commission shall adopt procedures on the
4disqualification of commissioners and administrative law judges
5due to bias or prejudice similar to those of other state agencies and
6superior courts.

7(b) (1) For ratesetting and adjudicatory proceedings, a
8commissioner or administrative law judge shall be disqualified for
9bias or prejudice based on either of the following:

10(A) Actions taken during the proceeding that demonstrate bias
11or prejudice.

12(B) Actions taken outside the public record of a proceeding
13 demonstrating any commitment to provide relief to a party.

14(2) Past work experience by the commissioner or administrative
15law judge shall not be a sufficient basis for demonstrating bias or
16prejudice pursuant to paragraph (1).

17(c) The commission procedures shall not authorize a
18commissioner or administrative law judge to rule on a motion
19made by a party to a proceeding to disqualify the commissioner
20or administrative law judge due to bias or prejudice.

21(d) The commission shall develop the procedures with the
22opportunity for public review and comment.

23

SEC. 2.  

Section 1701.1 of the Public Utilities Code is amended
24to read:

25

1701.1.  

(a) The commission shall determine whether each
26proceeding is a quasi-legislative, an adjudication, or a ratesetting
P4    1proceeding and, consistent with due process, public policy, and
2statutory requirements, determine whether the proceeding requires
3a hearing. The commission’s decision as to the nature of the
4proceeding shall be subject to a request for rehearing within 10
5days of the date of that decision or of any subsequent ruling that
6expands the scope of the proceeding. Only those parties who have
7requested a rehearing within that time period shall subsequently
8have standing for judicial review and that review shall only be
9available at the conclusion of the proceeding. The commission
10shall render its decision regarding the rehearing within 30 days.
11The commission shall establish rules regarding ex parte
12communication on case categorization issues.

13(b) The commission, upon initiating an adjudication proceeding
14or ratesetting proceeding, shall assign one or more commissioners
15to oversee the case and an administrative law judge when
16appropriate. The assigned commissioner shall schedule a prehearing
17conference. The assigned commissioner shall prepare and issue
18by order or ruling a scoping memo that describes the issues to be
19considered and the applicable timetable for resolution. The
20administrative law judge shall either preside over and conduct, or
21assist the assigned commissioner or commissioners in presiding
22 over and conducting, any evidentiary or adjudication hearing that
23may be required.

24(c) The commission, upon initiating a quasi-legislative
25proceeding, shall assign one or more commissioners to oversee
26 the case and an administrative law judge, when appropriate, who
27may be assisted by a technical advisory staff member in conducting
28the proceeding. The assigned commissioner shall prepare and issue
29by order or ruling a scoping memo that describes the issues to be
30considered and the applicable timetable for resolution.

31(d) (1) Quasi-legislative cases, for purposes of this article, are
32cases that establish policy, including, but not limited to,
33rulemakings and investigations that may establish rules affecting
34an entire industry.

35(2) Adjudication cases, for purposes of this article, are
36enforcement cases and complaints except those challenging the
37reasonableness of any rates or charges as specified in Section 1702.

38(3) Ratesetting cases, for purposes of this article, are cases in
39which rates are established for a specific company, including, but
P5    1not limited to, general rate cases, performance-based ratemaking,
2and other ratesetting mechanisms.

3(e) (1) (A) “Ex parte communication,” for purposes of this
4article, means any oral or written communication between a
5decisionmaker and an interested person concerning any matter
6before the commission that the commission has not specified in
7its Rules of Practice and Procedure as being a procedural matter
8and that does not occur in a public hearing, workshop, or other
9public proceeding, or on the official record of the proceeding on
10the matter. The commission shall specify in its Rules of Practice
11and Procedure, enacted by rulemaking, the types of issues
12considered procedural matters under this article.

13(B) “Interested person,” for purposes of this article, means any
14of the following:

15(i) Any applicant, an agent or an employee of the applicant, or
16a person receiving consideration for representing the applicant, or
17a participant in the proceeding on any matter before the
18commission.

19(ii) Any person with a financial interest, as described in Article
201 (commencing with Section 87100) of Chapter 7 of Title 9 of the
21Government Code, in a matter before the commission, an agent
22or employee of the person with a financial interest, or a person
23receiving consideration for representing the person with a financial
24interest. A person involved in issuing credit ratings or advising
25entities or persons who invest in the shares or operations of any
26party to a proceeding is a person with a financial interest.

27(iii) A representative acting on behalf of any civic,
28environmental, neighborhood, business, labor, trade, or similar
29organization who intends to influence the decision of a commission
30member on a matter before the commission.

31(iv) Other categories of individuals deemed by the commission,
32by rule, to be an interested person.

33(2) The commission shall by rule adopt and publish a definition
34of decisionmakers and interested persons for purposes of this
35article, along with any requirements for written reporting of ex
36parte communications and appropriate sanctions for noncompliance
37with any rule proscribing ex parte communications. The definition
38of decisionmakers shall include, but is not limited to: each
39commissioner; the personal staff of a commissioner if the staff is
40acting in a policy or legal advisory capacity; the chief
P6    1administrative law judge of the commission; and the administrative
2law judge assigned to the proceeding. The commission shall, by
3rule, explicitly ban both of the following:

4(A) The practice of one-way ex parte communications from a
5decisionmaker to an interested person.

6(B) Any communication between an interested person and a
7decisionmaker regarding which commissioner or administrative
8law judge may be assigned to a matter before the commission.

9(3) For adjudication cases, the rules shall provide that ex parte
10communications shall be prohibited, as required by this article.
11The rules shall provide that if an ex parte communication occurs
12that is prohibited by this article, or if an ex parte communication
13occurs in a ratesetting case, whether initiated by a decisionmaker
14or an interested person, all of the following shall be required:

15(A) The interested person shall report the communication within
16 three working days of the communication by filing a notice with
17the commission that includes all the following:

18(i) The date, time, and location of the communication, whether
19the communication was oral or written, or a combination of both,
20and the communication medium used.

21(ii) The identity of the decisionmaker, the identity of the person
22initiating the communication, and the identities of any other persons
23present.

24(iii) The topic of the communication, including applicable
25proceeding numbers.

26(iv) Abegin delete completeend deletebegin insert substantiveend insert description of the interested person’s
27communication and its content.

28(v) A copy of any written material or text used during the
29communication.

30(B) Any decisionmaker who participated in the communication
31shall promptly log the ex parte communication by filing a notice
32that includes all the following:

33(i) The date, time, and location of the communication, whether
34the communication was oral or written, or a combination of both,
35and the communication medium used.

36(ii) The identity of the interested person, the identity of the
37person initiating the communication, and the identities of any other
38persons present.

39(iii) The topic of the communication, including any applicable
40proceeding numbers.

P7    1(iv) A brief description of the communication.

2(C) If the interested person who participated in the
3communication has not timely submitted the notice required by
4subparagraph (A), the decisionmaker shall refer the matter to the
5attorney for the commission, and an assigned commissioner, by
6ruling, shall order the interested person to submit the required
7notice. The interested person shall be subject to any applicable
8penalties for the initial violation and, if the interested person does
9not submit the required notice within the time period specified in
10the assigned commissioner’s ruling, the interested person shall be
11subject to continuing violations pursuant tobegin delete sectionend deletebegin insert Sectionend insert 2108.

12(4) The requirements of paragraph (3) shall not apply to any
13oral ex parte communication occurring at a meeting if all parties
14are invited to participate and given not less than three working
15days’ notice.

16(5) The commission shall not take any vote on a matter in which
17a notice of a prohibited ex parte communication has been filed
18pursuant to subparagraph (A) or (B) of paragraph (3) until all
19parties to the proceeding have been provided a reasonable
20opportunity to respond to the communication.

21(6) If an ex parte communication is not disclosed as required
22by this subdivision until after the commission has issued a decision
23on the matter to which the communication pertained, a party not
24participating in the communication may file a petition to rescind
25or modify the decision. The party may seek a finding that the ex
26 parte communication significantly influenced the decision’s process
27or outcome as part of any petition to rescind or modify the decision.
28The commission shall process the petition in accordance with the
29commission’s procedures for petitions for modification and shall
30issue a decision on the petition no later than 180 days after the
31filing of the petition.

32(7) (A) Ex parte communications that occur at conferences and
33that are within the scope of an adjudication or ratesetting
34proceeding shall be subject to the requirements of this article.

35(B) Ex parte communications that occur at conferences and that
36are within the scope of a quasi-legislative proceeding shall be
37governed by the ex parte communication disclosure requirements
38developed by the commission.

39(C) For purposes of this section, “ex parte communications that
40occur at conferences” includes, but is not limited to,
P8    1communications in a private setting or during meals, entertainment
2events, and tours, and informal discussions among conference
3attendees.

4(8) The commission shall render its decisions based on thebegin insert law
5and on theend insert
evidence in the record. Ex parte communications shall
6not be a part of the evidentiary record of the proceedings.

7(f) The commission may meet in a closed session to discuss
8administrative matters so long as no collective consensus is reached
9or vote taken on any matter requiring a vote of the commissioners.
10The commission shall, by rule, adopt and publish a definition of
11“administrative matters” for purposes of this section.

12(g) The commission shall permit written comments received
13from the public to be included in the record of its proceedings, but
14the comments shall not be treated as evidence. The commission
15shall provide parties to the proceeding a reasonable opportunity
16to respond to any public comments included in the record of
17proceedings.

18(h) It is the intent of the Legislature that the commission, and
19any entity or person seeking to influence actions taken by the
20commission, shall be subject to all applicable ethical standards,
21including any applicable obligations under the Political Reform
22Act of 1974 (Title 9 (commencing with Section 81000) of the
23Government Code), including, but not limited to, any applicable
24lobbying obligations.

25

SEC. 3.  

Section 1701.2 of the Public Utilities Code is amended
26to read:

27

1701.2.  

(a) begin deleteIf end deletebegin insertThis section shall apply to adjudication cases
28only.end insert

29begin insert(b)end insertbegin insertend insertbegin insertIf end insertthe commission pursuant to subdivision (a) of Section
301701.1 has determined that an adjudication case requires a hearing,
31the assigned commissioner or the assigned administrative law
32judge shall hear the case in the manner described in the scoping
33memo. The scoping memo shall designate whether the assigned
34 commissioner or the assigned administrative law judge shall preside
35in the case.

begin delete

36(b)

end delete

37begin insert(c)end insert The commission shall provide by rule for peremptory
38challenges and challenges for cause of the administrative law judge.
39Challenges for cause shall include, but not be limited to, financial
40interests and prejudice. The rule shall provide that all parties are
P9    1entitled to one peremptory challenge of the assignment of the
2administrative law judge in all cases. All parties are entitled to
3unlimited peremptory challenges in any case in which the
4administrative law judge has within the previous 12 months served
5in any capacity in an advocacy position at the commission, been
6employed by a regulated public utility, or has represented a party
7or has been an interested person in the case.

begin delete

8(c)

end delete

9begin insert(d)end insert The assigned commissioner or the administrative law judge
10shall prepare and file a decision setting forth recommendations,
11findings, and conclusions. The decision shall be filed with the
12commission and served upon all parties to the action or proceeding
13without undue delay, not later than 60 days after the matter has
14been submitted for decision. The decision of the assigned
15commissioner or the administrative law judge shall become the
16decision of the commission if no further action is taken within 30
17days. Any party may appeal the decision to the commission,
18provided that the appeal is made within 30 days of the issuance of
19the decision. The commission may itself initiate a review of the
20proposed decision on any grounds.

begin delete

21(d)

end delete

22begin insert(e)end insert The commission’s decision shall be supported by findings
23of fact on all issues material to the decision, and the findings of
24fact shall be based on the record developed by the assigned
25commissioner or the administrative law judge. A decision different
26from that of the assigned commissioner or the administrative law
27judge shall be accompanied by a written explanation of each of
28the changes made to the decision.

begin delete

29(e)

end delete

30begin insert(f)end insert Notwithstanding Section 307, an officer, employee, or agent
31of the commission that is personally involved in the prosecution
32or in the supervision of the prosecution of an adjudication case
33before the commission shall not participate in the decision of the
34case or any factually related adjudicatory proceeding, including
35participation in or advising the commission as to findings of fact,
36conclusions of law, or orders. An officer, employee, or agent of
37the commission that is personally involved in the prosecution or
38in the supervision of the prosecution of an adjudication case may
39participate in reaching a settlement of the case, but shall not
40participate in the decision of the commission to accept or reject
P10   1the settlement, except as a witness or counsel in an open hearing
2or a hearing closed pursuant to subdivisionbegin delete (g).end deletebegin insert (h).end insert The Legislature
3finds that the commission performs both prosecutorial and
4adjudicatory functions in an adjudication case and declares its
5intent that an officer, employee, or agent of the commission,
6including its attorneys, may perform only one of those functions
7in any adjudication case or factually related adjudicatory
8proceeding.

begin delete

9(f)

end delete

10begin insert(g)end insert (1) Ex parte communications shall be prohibited in
11adjudication cases.

12(2) Any oral or written communications concerning procedural
13matters in adjudication cases between interested persons and
14decisionmakers, except the assigned administrative law judge,
15shall be prohibited.

begin delete

16(g)

end delete

17begin insert(h)end insert Notwithstanding any other law, the commission may meet
18in a closed hearing to consider the decision that is being appealed.
19The vote on the appeal shall be in a public meeting and shall be
20accompanied with an explanation of the appeal decision.

begin delete

21(h)

end delete

22begin insert(i)end insert Adjudication cases shall be resolved within 12 months of
23initiation unless the commission makes findings why that deadline
24cannot be met and issues an order extending that deadline. In the
25event that a rehearing of an adjudication case is granted, the parties
26shall have an opportunity for final oral argument.

begin delete

27(i)

end delete

28begin insert(j)end insert (1) The commission may determine that the respondent
29lacks, or may lack, the ability to pay potential penalties, fines, or
30restitution that may be ordered by the commission.

31(2) If the commission determines that a respondent lacks, or
32may lack, the ability to pay, the commission may order the
33respondent to demonstrate, to the satisfaction of the commission,
34sufficient ability to pay potential penalties, fines, or restitution that
35may be ordered by the commission. The respondent shall
36demonstrate the ability to pay, or make other financial
37arrangements satisfactory to the commission, within seven days
38of the commission commencing an adjudication case. The
39commission may delegate to the attorney to the commission the
P11   1determination of whether a sufficient showing has been made by
2the respondent of an ability to pay.

3(3) Within seven days of the commission’s determination of the
4respondent’s ability to pay potential penalties, fines, or restitution,
5the respondent shall be entitled to an impartial review by an
6administrative law judge of the sufficiency of the showing made
7by the respondent of the respondent’s ability to pay. The review
8by an administrative law judge of the ability of the respondent to
9pay shall become part of the record of the adjudication and is
10subject to the commission’s consideration in its order resolving
11the adjudication case. The administrative law judge may enter
12temporary orders modifying any financial requirement made of
13the respondent pending the review by the administrative law judge.

14(4) A respondent that is a public utility regulated under a rate
15of return or rate of margin regulatory structure or that has gross
16annual revenues of more than one hundred million dollars
17($100,000,000) generated within California is presumed to be able
18to pay potential penalties, fines, or restitution that may be ordered
19by the commission, and, therefore, paragraphs (1) to (3), inclusive,
20do not apply to that respondent.

21

SEC. 4.  

Section 1701.3 of the Public Utilities Code is amended
22to read:

23

1701.3.  

(a) This section shall applybegin insert onlyend insert tobegin delete allend delete ratesettingbegin delete cases
24except,end delete
begin insert cases, except,end insert if the commission pursuant to Section 1701.1
25has determined that a ratesetting case does not require a hearing,
26the procedures prescribed by subdivisions (b), (d), (f), and (i) shall
27not apply.

28(b) The assigned commissioner shall determine prior to the first
29hearing whether the commissioner or the assigned administrative
30law judge shall be designated as the principal hearing officer. The
31principal hearing officer shall be present for more than one-half
32of the hearing days. The decision of the principal hearing officer
33shall be the proposed decision.

34(c) An alternate decision may be issued by the assigned
35commissioner or the assigned administrative law judge who is not
36the principal hearing officer. Any alternate decision may be filed
37with the commission and served upon all parties to the proceeding
38any time prior to issuance of a final decision by the commission,
39consistent with the requirements of Section 311.

P12   1(d) The commission shall establish a procedure for any party
2to request the presence of a commissioner at a hearing. The
3assigned commissioner shall be present at any closing arguments
4in the case.

5(e) The principal hearing officer shall present the proposed
6decision to the full commission in a public meeting. The alternate
7decision, if any, shall also be presented to the full commission at
8that public meeting.

9(f) The presentation to the full commission shall contain a record
10of the number of days of the hearing, the number of days that each
11commissioner was present, and whether the decision was completed
12on time.

13(g) The commission shall provide by rule for peremptory
14challenges and challenges for cause of the administrative law judge.
15Challenges for cause shall include, but not be limited to, financial
16interests and prejudice. All parties shall be entitled to unlimited
17peremptory challenges in any case in which the administrative law
18judge has within the previous 12 months served in any capacity
19in an advocacy position at the commission, been employed by a
20regulated public utility, or has represented a party or has been an
21interested person in the case.

22(h) (1) Ex parte communications in ratesetting cases are subject
23to the disclosure requirements of this article. The commission, by
24order or ruling, may prohibit ex parte communications in a
25ratesetting case.

26(2) Oral communications may be permitted by a decisionmaker
27if all parties are given not less than three working days’ notice.
28No individual ex parte meetings shall be held during the three
29business days before the commission’s scheduled vote on the
30decision.

31(3) (A) If an ex parte communication meeting is granted to any
32party, all other parties, upon request, shall also be granted
33individual ex parte meetings of a substantially equal period of time
34and shall be sent a notice of that opportunity at the time the request
35is granted.

36(B) Subparagraph (A) shall not apply if the decisionmaker
37participating in the ex parte communication meeting is a member
38of the personal staff of a commissioner acting in a policy or legal
39advisory capacity and no other decisionmaker to whom
40subparagraph (A) applies is a participant.

P13   1(4) Written ex parte communications by any interested person
2may be permitted if copies of the communication are transmitted
3to all parties on the same day as the original communication.

4(5) Written and oral ex parte communications shall not be part
5of the evidentiary record of the proceeding.

6(6) The commission may establish a period during which no
7oral or written ex parte communications may be permitted and the
8commission may meet in closed session during that period, which
9shall not in any circumstance exceed 14 days. If the commission
10holds the decision, it may permit ex parte communications during
11the first half of the interval between the hold date and the date that
12the decision is calendared for final decision. The commission may
13meet in closed session for the second half of that interval.

14(i) Any party has the right to present a final oral argument of
15its case before the commission. Those requests shall be scheduled
16in a timely manner. A quorum of the commission shall be present
17for the final oral arguments.

18(j) The commission may, in issuing its decision, adopt, modify,
19or set aside the proposed decision or any part of the decision based
20on evidence in the record. The final decision of the commission
21shall be issued not later than 60 days after the issuance of the
22proposed decision. Under extraordinary circumstances the
23commission may extend this date for a reasonable period. The
2460-day period shall be extended for 30 days if any alternate
25decision is proposed pursuant to Section 311.

26

SEC. 5.  

Section 1701.4 of the Public Utilities Code is amended
27to read:

28

1701.4.  

(a) begin deleteIf end deletebegin insertThis section shall apply only to quasi-legislative
29cases, exceptend insert
begin insert, if end insertthe commission pursuant to Section 1701.1 has
30determined that a quasi-legislative casebegin delete requiresend deletebegin insert does not requireend insert
31 a hearing, the procedures prescribed by subdivisions (b), (d), and
32(e) shallbegin delete be applicable.end deletebegin insert not apply.end insert

33(b) The assigned administrative law judge and any assigned
34technical advisory staff shall act as an assistant to the assigned
35commissioner in quasi-legislative cases. The assigned
36commissioner shall prepare the proposed rule or order with the
37assistance of the administrative law judge and any assigned
38technical advisory staff. The assigned commissioner shall present
39the proposed rule or order to the full commission in a public
P14   1meeting. The report shall include the number of days of hearing
2and the number of days that the commissioner was present.

3(c) Ex parte communications in quasi-legislative proceedings
4are permitted and not subject to the disclosure requirements of this
5article, except when the commission, by order or ruling, determines
6either of the following:

7(1) That ex parte communications are subject to the disclosure
8requirements of this article.

9(2) That ex parte communications are prohibited and subject to
10the disclosure requirements of this article.

11(d) Any party has the right to present a final oral argument of
12its case before the commission. Those requests shall be scheduled
13in a timely manner. A quorum of the commission shall be present
14for the final oral arguments.

15(e) The commission may, in issuing its rule or order, adopt,
16modify, or set aside the proposed decision or any part of the rule
17or order. The final rule or order of the commission shall be issued
18not later than 60 days after the issuance of the proposed rule or
19order. Under extraordinary circumstances the commission may
20extend this date for a reasonable period. The 60-day period shall
21be extended for 30 days if any alternate rule or order is proposed
22pursuant to Section 311.

begin insert

23
(f) No informality in the manner of taking testimony or evidence
24shall invalidate any order, decision, or rule made, approved, or
25confirmed by the commission in quasi-legislative cases.

end insert
26

SEC. 6.  

Section 1701.5 of the Public Utilities Code is amended
27to read:

28

1701.5.  

(a) Except as specified in subdivision (b), in a
29ratesetting or quasi-legislative case, the commission shall resolve
30the issues raised in the scoping memo within 18 months of the date
31the proceeding is initiated, unless the commission makes a written
32determination that the deadline cannot be met, including findings
33as to the reason, and issues an order extending the deadline.

34(b) Notwithstanding subdivision (a), the commission may
35specify in a scoping memo a resolution date later than 18 months
36from the date the proceeding is initiated, if that scoping memo
37includes specific reasons for the necessity of a later date and the
38commissioner assigned to the case approves the date.

39

SEC. 7.  

Section 1701.6 is added to the Public Utilities Code,
40to read:

P15   1

1701.6.  

(a) In addition to any penalty, fine, or other punishment
2applicable pursuant to Chapter 11 (commencing with Section
32100), the commission may assess civil sanctions upon any entity
4or person, other than a decisionmaker or employee of the
5commission, who violates, fails to comply with, or procures, aids,
6or abets any violation of, the ex parte communication requirements
7of this article or those adopted by the commission pursuant to this
8article. The civil sanctions may include civil penalties, adverse
9consequences in commission proceedings, or other appropriate
10commission orders directed at the entity, person, or both the entity
11and person, committing the violation.

12(b) (1) Except as provided in paragraph (2), a civil penalty
13assessed shall not exceed fifty thousand dollars ($50,000) per
14violation. Each day of a continuing violation is a separate violation.
15If the violation consists of engaging in a communication that is
16prohibited by the ex parte communication requirements, each day
17that the violation is not disclosed to the commission and to parties
18of record in the formal proceeding in which the communication
19occurred shall constitute a separate violation.

20(2) If the entity or person may obtain, by violating the ex parte
21communication requirements, financial benefits that exceed the
22maximum amount of civil penalty allowable pursuant to paragraph
23(1), the commission may impose a civil penalty up to the amount
24of those financial benefits.

25(c) Civil penalties assessed pursuant to subdivision (b) upon
26entities whose rates are determined by the commission shall be in
27the form of credits to the customers of that entity. Civil penalties
28collected from other entities shall be deposited into the General
29Fund.

30(d) In determining the appropriate civil sanctions, the
31commission shall consider the following factors:

32(1) The severity of the violation.

33(2) The conduct of the entity or person, including the level of
34experience of the entity or person in participating in commission
35proceedings and whether the entity or person knowingly violated
36the ex parte communication requirements.

37(3) The financial resources of the entity or person.

38(4) The totality of the circumstances in furtherance of the public
39interest.

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SEC. 8.  

Section 1701.7 is added to the Public Utilities Code,
2to read:

3

1701.7.  

(a) The Attorney General may bring an enforcement
4action in superior court against a decisionmaker or employee of
5the commission who knowingly and willfully violates, fails to
6comply with, or procures, aids or abets any violation of, the ex
7parte communication requirements in this article or those adopted
8by the commission pursuant to this article.

9(b) Notwithstanding Section 1759, in an enforcement action
10brought pursuant to this section, the court may grant appropriate
11relief, including disqualification of the decisionmaker from one
12or more proceedings and civil penalties as provided in Section
132111.

14(c) In determining the appropriate relief, the court may consider
15the following factors:

16(1) The severity of the violation.

17(2) The conduct of the decisionmaker or employee.

18(3) The financial resources of the decisionmaker or employee.

19(4) The totality of the circumstances in furtherance of the public
20interest.

21(d) The Attorney General may compromise the enforcement
22action subject to approval by the court.

23(e) Civil penalties collected pursuant to this section shall be
24deposited into the Litigation Deposits Fund established pursuant
25to Article 9 (commencing with Section 16425) of Chapter 2 of
26Part 2 of Division 4 of Title 2 of the Government Code.

27

SEC. 9.  

No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.



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