BILL ANALYSIS �
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Date of Hearing: April 9, 2012
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1703 (Hill) - As Amended: February 15, 2012
SUBJECT : Public utilities: reporting: safety issues.
SUMMARY : Establishes reporting requirements for public
utilities with regard to specified settlements of civil actions
and prescribes penalties for non-compliance. Specifically, this
bill :
a)Requires a public utility to file a report with the Public
Utilities Commission (PUC) within 30 days as to any final
judgment, arbitration award, compromise, or settlement in
excess of $50,000 in any civil action brought by an employee,
former employee, contractor, or subcontractor of the utility
against the utility regarding safety issues that could
jeopardize the lives or health of Californians.
b)Authorizes the PUC to limit this reporting requirement to
those particular types of claims that the commission
determines are likely to involve claims or allegations that
could jeopardize the lives or health of Californians.
c)Requires the PUC to develop and adopt a report form to be used
by a public utility to comply with this reporting requirement.
d)Establishes civil penalties for a violation of these
requirements.
EXISTING LAW
1)Authorizes the PUC to regulate electric, natural gas,
telecommunications, water, railroad, rail transit, and
passenger transportation companies.
2)Requires public utilities to provide copies of any or all
maps, profiles, contracts, agreements, franchises, reports,
books, accounts, papers, and records in its possession or in
any way relating to its property or affecting its business,
and also a complete inventory of all its property in such form
as the PUC may direct.
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3)Requires public utilities to provide, in such form and detail
as the PUC prescribes, all tabulations, computations, and all
other information required by it to carry into effect any of
the provisions of this part, and shall make specific answers
to all questions submitted by the PUC.
4)Requires public utilities receiving from the PUC any blanks
with directions to fill them shall answer fully and correctly
each question propounded therein, and if it is unable to
answer any question, it shall give a good and sufficient
reason for such failure.
5)Requires public utility to provide reports to the PUC at such
time and in such form as the PUC may require and answer all
questions propounded by the PUC.
6)Authorizes the PUC to require any public utility to file
monthly reports of earnings and expenses, and to file
periodical or special reports, or both, concerning any matter
about which the PUC is authorized by any law to inquire or to
keep itself informed, or which it is required to enforce. All
reports shall be under oath when required by the PUC.
7)Authorizes monetary penalties and imprisonment for up to one
year for failing to comply with any part of any order,
decision, rule, direction, demand, or requirement of the
commission, or who procures, aids, or abets any public utility
in such violation or noncompliance, in a case in which a
penalty has not otherwise been provided.
FISCAL EFFECT : Unknown
COMMENTS :
1)According to the author, "As we know all too well from what
tragically occurred in San Bruno, utility safety failures can
cause mass death and massive property damage. The CPUC cannot
be everywhere and, to protect the lives and property of
Californians, must be notified of significant settlements,
judgments, and arbitration awards where the lawsuit was based
on allegations of potentially devastating safety lapses by
utilities. As many court of appeals decisions have held,
there is no public policy that supports allowing regulators to
be blinded to potentially life-saving information. Private
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actors acting irresponsibly ought not be able to conceal
life-imperiling information from the regulator charged with
protecting lives from gas leaks, explosions, and other
catastrophes-in-waiting.
For many years the regulators that oversee the healing arts
professions have benefitted from laws that require them to be
notified when those they regulate settle substantial lawsuits
over certain monetary thresholds. The CPUC -- which for
nearly a century has had far greater regulatory authority over
businesses that can cause far greater devastation than any one
doctor - deserves the same tool."
2)The PUC currently has authority to compel all regulated
utilities to report any actions brought against the utility.
3)The PUC currently has authority to impose monetary penalties
and imprisonment for up to one year for failure to comply with
PUC directives.
4)The author may wish to instead consider revising the bill to:
a) Require the PUC to report to the Legislature by June
2013 on the number and type of final judgment, arbitration
award, compromise, or settlement in in any civil action
brought by an employee, former employee, contractor, or
subcontractor of the utility against the utility regarding
system safety issues that could jeopardize the lives or
health of Californians. The PUC may prescribe a form to
collect such data.
b) Require the PUC to require that information on the final
judgment, arbitration award, compromise, or settlement in
any civil action brought by an employee, former employee,
contractor, or subcontractor of the utility against the
utility regarding system safety issues that could
jeopardize the lives or health of Californians be included
in all General Rate Cases beginning with the first General
Rate Case filed in 2014.
c) Delete: (b) (1) The commission shall assess a penalty of
not more than one million dollars ($1,000,000) against a
public utility for a willful failure to comply with the
requirements of subdivision (a).
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REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission (CPUC) (if amended)
Opposition
San Diego Gas & Electric Company (SDG&E)
Sempra Energy utilities
Southern California Edison (SCE)
Southern California Gas Company
Analysis Prepared by : Sue Kateley / U. & C. / (916) 319-2083