BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1843
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 1843 (Hill) - As Introduced:  February 22, 2012 

          Policy Committee:                              
          JudiciaryVote:10-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC), as 
          part of an existing rulemaking, to establish a whistleblower 
          protection program to protect public utility employees, former 
          employees, and third party contractors and subcontractors from 
          management retaliation for bringing information to the 
          commission or other public entities regarding safety-related or 
          other issues.

           FISCAL EFFECT  

          The PUC would incur costs for developing and implementing the 
          comprehensive program, which would include reviewing the 
          reports/filings and investigation/enforcement.  Depending on the 
          level of activity in the program, and associated workload, 
          annual special fund costs could be in the range of $580,000 for 
          four positions. �Public Utilities Reimbursement Account]

          Funding for three of the four positions identified above, three 
          attorney positions, is included in the governor's budget 
          proposal for 2012-13 as part of a comprehensive proposal adding 
          41 positions at the PUC for overall safety-related enforcement. 
          The net cost of AB 1843, assuming approval of the governor's 
          budget proposal, would be about $150,000 annually, though this 
          bill would essentially codify the proposal, making it more 
          permanent.

           COMMENTS  

           1)Purpose  . In response to the September 2010 gas pipeline 
            explosion in San Bruno, which killed eight people and 








                                                                  AB 1843
                                                                  Page  2

            destroyed several dozen homes, the PUC undertook a 
            reexamination of its pipeline safety regulations.  Among the 
            many possible rules changes considered by a recent PUC 
            memorandum is the issue of whistleblower protection for public 
            utility employees who wish to disclose safety problems without 
            fear of retaliation.  The commission is in support of this 
            bill.

           2)Prior Legislation  . A substantially similar bill, AB 1197 
            (Hill), was held on this committee's Suspense file in January 
            2012.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081