BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 631  


                                                                    Page  1





          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 631  
          (Hueso) - As Amended June 17, 2015


           ----------------------------------------------------------------- 
          |Policy       |Utilities and Commerce         |Vote:|14 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill increases the application filing fee for a certificate  
          of public convenience and necessity (CPCN) issued to a telephone  
          corporation and other utilities from $75 to $500.  This bill  
          authorizes the Public Utilities Commission (PUC) to adjust the  








                                                                     SB 631  


                                                                    Page  2





          fee based on the Consumer Price Index.  Additionally, this bill  
          deletes an obsolete code referencing the deposit of fees.


          FISCAL EFFECT:


          Minor annual fee revenue increases of approximately $8,500  
          (Public Utilities Reimbursement Account).  According to the PUC,  
          there are approximately 20 CPCN application filings per year.  


          COMMENTS:


          Purpose and Background.  CPCNs are generally required before a  
          telephone corporation or other specified utility may begin  
          construction or extend a transmission line, plant or system.   
          The certificate states that the present or future public  
          convenience and necessity require such construction.   The  
          current CPCN fee has been in statute since 1969 and does not  
          reflect the current cost to PUC to process the application.
            
          The Consumer Price Index has increased 548% since 1969.  If the  
          application fee had been adjusted for inflation, the current fee  
          would be about $486.  This bill is intended to increase the fee  
          level to meet current PUC costs and give the PUC the ability to  
          raise the fee in the future without legislative action.
             
          This bill also deletes a code reference that became inoperative  
          as a result of other enacted statutes.


           


           










                                                                     SB 631  


                                                                    Page  3











          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081