BILL ANALYSIS �
AB 1703
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Date of Hearing: April 23, 2012
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1703 (Hill) - As Introduced: 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 California
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 : 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 actors
acting irresponsibly ought not be able to conceal
life-imperiling information from the regulator charged with
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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 PUC -- 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."
1)PUC jurisdiction : The PUC currently has authority to compel
all regulated utilities to report
any actions brought against the utility. The PUC also has
authority to impose monetary penalties and imprisonment for up
to one year for failure to comply with PUC directives.
1)The author may wish to instead consider revising the bill to:
a) Require the PUC to report to the Legislature by June
2013, and annually thereafter, 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) The award amount shall not be made public, unless the
CPUC deems it necessary. Nothing in this section is
intended to limit the ability of the CPUC to require a
utility to disclose to the Commission the amount on a
judgment, arbitration award, compromise, or settlement in a
civil action.
c) Delete: (a) (1) Every public utility shall file a
completed report with the commission within 30 days as to
any final judgment, arbitration award, compromise, or
settlement in excess of fifty thousand dollars ($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.
(2) The commission may limit the duty to report pursuant to
paragraph (1) to those particular types of claims that the
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commission determines are likely to involve claims or
allegations that could jeopardize the lives or health of
Californians.
(3) The commission shall develop and adopt a report form to
be used by a public utility to comply with the requirements
of paragraph (1). Until the commission adopts a report
form, the report shall include a copy of the complaint or
claim made by the employee, former employee, contractor, or
subcontractor and any written judgment, arbitration award,
or agreement for the compromise or settlement of an action
or claim.
(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).
(2) The commission shall assess a penalty of not more than
five hundred thousand dollars ($500,000) for a negligent
failure to comply with the requirements of subdivision (a).
(3) The commission may enforce and collect a penalty
pursuant to Chapter 11 (commencing with Section 2100) of
Part 1 of Division 1.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission (CPUC) (if amended)
Division of Ratepayer Advocates (DRA)
San Diego School of Law
The Utility Reform Network (TURN)
Opposition
Pacific Gas and Electric Company (PG&E)
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