BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1017


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          SENATE THIRD READING


          SB  
          1017 (Hill)


          As Amended  August 19, 2016


          Majority vote


          SENATE VOTE:  21-8


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Utilities       |9-5  |Gatto, Burke, Eggman,  |Patterson, Chávez,   |
          |                |     |                       |Dahle, Hadley,       |
          |                |     |                       |Obernolte            |
          |                |     |Cristina Garcia,       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |Roger Hernández,       |                     |
          |                |     |Quirk, Santiago, Ting, |                     |
          |                |     |Williams               |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |12-5 |Gonzalez, Bloom,       |Bigelow, Gallagher,  |
          |                |     |Bonilla, Bonta,        |Jones, Obernolte,    |
          |                |     |Calderon, Eggman,      |Wagner               |
          |                |     |Holden, Quirk,         |                     |
          |                |     |Santiago, Weber, Wood, |                     |
          |                |     |Chu                    |                     |








                                                                    SB 1017


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          SUMMARY:  Modifies statutes that limit public access to utility  
          supplied documents at the California Public Utilities Commission  
          (CPUC).  Specifically, this bill:


          1)Requires the CPUC to develop rules consistent with the  
            California Public Records Act (PRA) for the expeditious  
            disclosure, of information related to all of the following:


             a)   Public health and safety emergencies;


             b)   Public, employee, and contractor safety; and


             c)   Environmental degradation caused by loss of operational  
               control by a public utility.


          2)Exempts specified personal employee information and  
            information for which the public interest would best be served  
            by nondisclosure from the CPUC rule requirement.


          3)Specifies that documents prohibited from public release by  
            state or federal law may not be released by the CPUC.  


          4)Modifies the conditions under which a present or former  
            officer or employee is guilty of a misdemeanor for providing  
            prohibited documents to the public for specified purposes and  
            clarifies misdemeanor provisions applicable to officers and  
            employees of the CPUC for knowingly and willfully disclosing  








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            confidential information.


          5)Specifies it is not a crime to release prohibited documents to  
            the Bureau of State Audits or to another state agency under a  
            confidentiality agreement.


          6)Establishes a process for notifying a provider of confidential  
            information that a request has been made for that information  
            and provides an opportunity to that provider to comment prior  
            to the information being made public.


          7)Specifies an action arising from the PRA may be brought before  
            the Superior Court instead of the Supreme Court.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, additional costs are absorbable.


          COMMENTS:


          1)Purpose:  According to the author, an antiquated law put in  
            place before the PRA makes it very difficult for the public to  
            get public records from the CPUC.  The author notes existing  
            law requires the full CPUC to vote to release documents that  
            have been designated by a utility as confidential.  According  
            to the author, while there is no penalty for a utility to  
            designate clearly public information as confidential, CPUC  
            staff is subject to a misdemeanor for release of this  
            information regardless of whether the utility's claim of  
            confidentiality has any validity.  This bill requires the CPUC  
            to establish public records policies consistent with the PRA.


          2)Background:  The California Constitution and the PRA require  








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            that most government records be available to the public and,  
            as such, allow agencies, including the CPUC, wide latitude to  
            establish policies for public access to their records.  


            However, unique among other agencies, the CPUC is also  
            governed by statute which states that no information furnished  
            to the CPUC by a public utility except those matters  
            specifically required to be open to public inspection by this  
            part, shall be open to public inspection or made public except  
            on order of the CPUC, or by the CPUC or a Commissioner in the  
            course of a hearing or proceeding.  Any present or former  
            officer or employee of the CPUC who divulges any such  
            information is guilty of a misdemeanor. 


            As a result, the CPUC rules provide that regulated entities  
            can stamp their documents and information as confidential and  
            place the burden on the CPUC to determine whether the claims  
            of confidentiality are justified.  


            According to the CPUC, utilities have claimed confidentiality  
            on records including information filed publicly with other  
            agencies, a customer service manual that is distributed to  
            customers, newspaper advertisements, and hearing exhibits that  
            are contained in public testimony.


          3)Due Process:  Concerns have been raised about due process, in  
            the event of a disagreement between a provider of confidential  
            information and whether this information should or should not  
            be held confidential.  In the event of a request for release  
            of confidential information this bill specifies the provider  
            of the confidential information has the ability to comment on  
            the release of such information prior to its release. 











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          Analysis Prepared by:                                             
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0004720