BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1049  


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          Date of Hearing:  August 10, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1049  
          (Hill) - As Amended August 3, 2016


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          |Policy       |Utilities and Commerce         |Vote:|12 - 1       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the California Public Utilities Commission  
          (PUC) to establish procedures and processes to implement an  
          independent close call reporting program to facilitate the  
          identification of accident precursors. The program would be  
          established to receive voluntary close call reports by people  
          with information involving electrical or gas corporations. This  
          information would be used to help protect public, employee, or  
          contractor safety.  Additionally, this bill: 


          1)Prohibits the PUC from using the report in an enforcement  
            action, except for an accident or criminal offense.








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          2)Authorizes the PUC to contract with a third party to  
            administer the program.


          3)Prohibits an employee, or employee of a contractor from being  
            subject to demotion, discharge or any form of retaliation or  
            discrimination for participating in the close call reporting  
            program.


          4)Requires the PUC to implement a confidential, nonpunitive, and  
            independent close call reporting pilot program, by July 1,  
            2017, through a proceeding.  The pilot program must be  
            consistent with the requirements of the bill.


          5)Sunsets the provisions of this bill on January 1, 2022.


          FISCAL EFFECT:


          Increased one-time costs of $500,000 to establish program and  
          ongoing costs of $3.5 million (Public Utilities Account) to  
          contract with a third party to administer the program until  
          January 1, 2022.


          COMMENTS:


          1)Purpose.  According to the author, in order to encourage the  
            reporting of near misses by utility employees and foster a  
            culture of communications between utility employees and  
            management, the PUC needs to implement a confidential close  
            call reporting system to protect the confidentiality of  
            reporting employees and disseminate safety lessons  








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            industry-wide.


          2)Similar Reporting Programs. The Federal Aviation  
            Administration (FAA) and the Fderal Railroad Administration  
            (FRA) use a third party to administer an employee reporting  
            program. The reports to the third party are not confidential,  
            but after follow-up by third party analysts the reports are  
            de-identified before evaluation (in the FAA program) or  
            forwarding to a peer review team of labor, management, and  
            regulatory staff (FRA program). Both the FAA and FRA use the  
            National Aeronautics and Space Administration (NASA) to  
            administer their programs.





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