BILL ANALYSIS                                                                                                                                                                                                    ”



                                                                     SB 631


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          SENATE THIRD READING


          SB  
          631 (Hueso)


          As Amended  June 17, 2015


          Majority vote


          SENATE VOTE:  29-4


           ----------------------------------------------------------------- 
          |Committee      |Votes|Ayes                  |Noes                |
          |               |     |                      |                    |
          |               |     |                      |                    |
          |               |     |                      |                    |
          |---------------+-----+----------------------+--------------------|
          |Utilities      |14-0 |Rendon, Patterson,    |                    |
          |               |     |Achadjian, Bonilla,   |                    |
          |               |     |Burke, Eggman,        |                    |
          |               |     |Cristina Garcia,      |                    |
          |               |     |Hadley,               |                    |
          |               |     |                      |                    |
          |               |     |                      |                    |
          |               |     |Roger HernŠndez,      |                    |
          |               |     |Obernolte, Quirk,     |                    |
          |               |     |Santiago, Ting,       |                    |
          |               |     |Williams              |                    |
          |               |     |                      |                    |
          |---------------+-----+----------------------+--------------------|
          |Appropriations |10-3 |Gomez, Bloom, Bonta,  |Bigelow, Gallagher, |
          |               |     |Calderon, Eggman,     |Jones               |
          |               |     |                      |                    |
          |               |     |                      |                    |
          |               |     |Eduardo Garcia,       |                    |
          |               |     |Quirk, Rendon, Weber, |                    |






                                                                     SB 631


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          |               |     |Wood                  |                    |
          |               |     |                      |                    |
          |               |     |                      |                    |
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          SUMMARY:  Specifies that the fee for filing a certificate of  
          public convenience and necessity (CPCN) with the Public  
          Utilities Commission (CPUC) is $500.  Specifically, this bill:  


          1)Increases the application filing fee for a CPCN issued to a  
            telephone corporation and other utilities from $75 to $500.  


          2)Authorizes the CPUC to adjust the fee based on the Consumer  
            Price Index.


          3)Repeals a section of the statute which requires collected CPCN  
            application fees to be paid to the credit of the General Fund.  



          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, there will be minor annual fee revenue increases of  
          approximately $8,500 (Public Utilities Reimbursement Account).   
          According to the CPUC, there are approximately 20 CPCN  
          application filings per year.  


          COMMENTS:  


          1)Background:  A CPCN is a permit issued by the CPUC to a  
            utility that wants to provide service or construct or extend  
            facilities or telecommunications services.  A $75 fee on CPCN  
            applications was established in statute in 1969.  The CPCN  
            application process involves the participation of an  
            administrative law judge, CPUC staff, and commissioners, and  
            is a lengthy and in-depth public process.  It involves review  






                                                                     SB 631


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            of California Environmental Quality Act documents, cost  
            analysis, need analysis, and extensive workshops and public  
            hearings.  


          2)Purpose:  The costs of processing a CPCN application are not  
            well reflected in the $75 fee established in law nearly half a  
            century ago.  However, the CPUC does not have authority to  
            revise the application fee without a change in the statute.   
            In 2013, the CPUC adopted Decision (D.) 13-05-035 which  
            acknowledged the need to increase the CPCN fee with  
            legislative approval.  In that decision, the CPUC stated that  
            had the application fee been adjusted for inflation, the 2013  
            fee would have been $432.




          Analysis Prepared by:                                             
                          Allegra Roth / U. & C. / (916) 319-2083  FN:  
          0001188