BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 697


                                                                    Page  1





          SENATE THIRD READING


          SB  
          697 (Hertzberg)


          As Amended  September 3, 2015


          Majority vote


          SENATE VOTE:  36-0


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Utilities       |13-0 |Rendon, Patterson,     |                     |
          |                |     |Achadjian, Bonilla,    |                     |
          |                |     |Burke, Dahle, Eggman,  |                     |
          |                |     |Cristina Garcia,       |                     |
          |                |     |Hadley, Obernolte,     |                     |
          |                |     |Quirk, Santiago, Ting  |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |17-0 |Gomez, Bigelow, Bloom, |                     |
          |                |     |Bonta, Calderon,       |                     |
          |                |     |Chang, Daly, Eggman,   |                     |
          |                |     |Gallagher, Eduardo     |                     |
          |                |     |Garcia, Holden, Jones, |                     |
          |                |     |Quirk, Rendon, Wagner, |                     |
          |                |     |Weber, Wood            |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |








                                                                     SB 697


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          SUMMARY:  Repeals the California Public Utilities Commission's  
          (CPUC) requirement to issue a decal to charter party carriers  
          (CPC), extends the sunset date on the CPUC's authority to issue  
          financing orders, allows for the electronic filing of  
          legislative reports, and makes additional codifying and  
          technical changes to the Public Utilities Code relating to  
          reporting requirements.  Specifically, this bill: 


          1)Repeals the CPUC's requirement to issue a suitable decal for  
            each vehicle registered with the CPUC and operated by a CPC,  
            holding a valid permit or certificate of public convenience  
            and necessity, for motor vehicles designed to carry no more  
            than eight passengers, including the driver. 


          2)Extends the sunset on the CPUC's authority to issue financing  
            orders, as specified, from 2015 to 2016.


          3)Allows reports submitted to the Legislature or the Governor,  
            as specified, to be submitted electronically, unless  
            specifically requested to submit a printed copy, as specified.  



          4)Consolidates and makes technical changes to the Public  
            Utilities Code relating to reporting requirements. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill would have potential minor savings up to  
          $30,000 to the Public Utilities Commission Transportation  
          Reimbursement Account for reduced workload associated with  
          issuing decals. 









                                                                     SB 697


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          COMMENTS:  


          1)Author's Statement:  "[This bill] eliminates antiquated CPUC  
            decal requirements; SB 697 makes California law clearer and  
            easier to abide by for limousine and other passenger carriers  
            and for law enforcement to uphold.  [In addition, this bill]  
            consolidates and clarifies the CPUC's statutory reporting  
            requirements; SB 697 makes California law clearer and easier  
            to understand and track all CPUC reports."


          2)Background:  Current law requires CPCs to display a decal, as  
            well as a distinctive identifying symbol issued by the CPUC.   
            Previously CPCs were allowed to obtain special "livery"  
            license plates in lieu of a decal.  When livery plates were  
            eliminated under SB 611 (Hill, Chapter 860, Statues of 2014),  
            stakeholders thought that the distinctive identifying symbol  
            issued by the CPUC also satisfied the requirement to display a  
            decal.  The CPUC has not issued, nor has it produced, any  
            decals in over two decades.  


            Due to the conflicting nature of the statutes, this bill would  
            repeal the CPUC requirement to issue a suitable decal for CPC  
            vehicles, hence, leaving only the requirement that CPCs must  
            display a CPUC-issued distinctive identifying symbol.


          3)Consolidating Reporting Requirements in the Public Utilities  
            Code:  This bill also makes technical changes to the Public  
            Utilities Code by consolidating and clarifying statutory  
            reporting requirements under one section of the Public  
            Utilities Code.  The CPUC is required by statute to prepare  
            and publish numerous reports on a wide range of subjects  
            within its jurisdiction.  The reporting requirements are  
            typically codified in separate sections within the Public  
            Utilities Code.  Consolidating the reporting requirements in a  








                                                                     SB 697


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            single area of the code will assist tracking and compliance.   
            Furthermore, this bill allows mandated reports, as specified,  
            to be submitted electronically, unless a printed copy is  
            specifically requested. Electronic filing will reduce costs  
            associated with printing and processing.
          4)Extends the Sunset on CPUC's Financing Orders Authority:   
            Current law gives the CPUC authority to issue financing  
            orders, as specified.  This authority is set to expire on     
            December 31, 2015.  In 2014, the Governor vetoed SB 38  
            (Padilla) because it also would have inadvertently taken away  
            the CPUC's authority to continue enforcing the collection of  
            some residual bond expenses.  According to the CPUC, the  
            one-year extension is needed for it to continue to assess if  
            the expiration of the authority would have an impact on its  
            ability to issue financing orders or enter into agreements  
            with the Department of Water Resources, which potentially  
            could have an impact on ratepayers.  




          Analysis Prepared by:                                             
                          Edmond Cheung / U. & C. / (916) 319-2083  FN:  
          0002071