BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2281
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          Date of Hearing:   April 7, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 2281 (Hagman) - As Introduced:  February 21, 2014
           
          SUBJECT  :   State Air Resources Board:  Public Utilities  
          Commission:  legislative oversight participants

           SUMMARY  :   Requires the President pro Tempore of the Senate and  
          the Speaker of the Assembly to jointly appoint two Members of  
          the Legislature as non-voting members of the Air Resources Board  
          (ARB) and the Public Utilities Commission (PUC).

           EXISTING LAW  :

          1)Section 39510 of the Health and Safety Code provides for  
            appointment of 12 ARB members by the Governor on the basis of  
            interest and ability in the field of air pollution control,  
            understanding of the needs of the general public in connection  
            with air pollution problems, and additional specific  
            qualifications.  All members serve at the pleasure of the  
            Governor and are subject to confirmation by the Senate.   
            Members serve part-time, with the exception of the Chair, who  
            is appointed by the Governor and serves full-time.

          2)Section 1 of Article XII of the California Constitution  
            provides that the PUC "consists of 5 members appointed by the  
            Governor and approved by the Senate, a majority of the  
            membership concurring, for staggered 6-year terms.  A vacancy  
            is filled for the remainder of the term.  The Legislature may  
            remove a member for incompetence, neglect of duty, or  
            corruption, two thirds of the membership of each house  
            concurring."  Section 305 of the Public Utilities Code  
            requires the Governor to designate a president of the PUC from  
            among its members. 

           THIS BILL  :

          1)Requires the President pro Tempore of the Senate and the  
            Speaker of the Assembly to jointly appoint two legislators  
            each to the ARB and the PUC, one from the majority party and  
            one from the minority party, to be "legislative oversight  
            participants" (LOPs, i.e., non-voting, ex officio members).









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          2)Requires the executive officer of ARB and the executive  
            director of the PUC to ensure that each LOP is provided with  
            the agenda and all materials provided to a member of the  
            ARB/PUC.  Authorizes a LOP to request materials filed with, or  
            developed by, the ARB/PUC with respect to any item that is  
            before the ARB/PUC.  Requires a LOP to maintain the  
            confidentiality of any proprietary, confidential, or otherwise  
            legally protected information.

          3)Provides that a LOP receives no compensation for his or her  
            services, but shall be reimbursed for his or her actual and  
            necessary expenses incurred in connection with the performance  
            of his or her duties.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :

           1)The purse and the pulpit  .  Statutes, case law, and practice  
            have repeatedly confirmed that administrative agencies -  
            including the ARB, which is a creature of statutes enacted by  
            the Legislature, and the PUC, whose composition and basic  
            duties are prescribed in the California Constitution - are  
            subject to the control of the Legislature.  The Legislature's  
            control can be effectuated through enactment of statutes and  
            the budget, but it can also be effectuated through  
            "oversight," which can take many forms.  For one thing, each  
            appointee to the ARB and PUC is subject to confirmation by the  
            Senate.  In addition, legislative committees have continuing  
            oversight responsibilities.   For example, the Chair and  
            members of the Natural Resources Committee can hold hearings,  
            attend meetings, write letters, and otherwise review and  
            oversee the activities of the ARB, or designate staff to do  
            so.  Likewise, the Utilities and Commerce Committee may do the  
            same for the PUC within its jurisdiction.  In fact, each  
            committee has held oversight hearings involving ARB and the  
            PUC within the last month, including a joint hearing.   
            Individual members also may engage in similar activities,  
            though without the platform of the committee of jurisdiction.   
            The level of "oversight" an individual elected member of the  
            Legislature may have is mostly up to that member.

           2)Author's statement  :

               Regulatory and enforcement decisions made by both the PUC  








                                                                  AB 2281
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               and ARB are not normally subject to review, other than  
               through litigation.  This bill proposes another, more  
               proactive, approach to monitoring their activity.   
               Assemblyman Hagman is still concerned about the San Bruno  
               pipeline explosion and the report obtained by NBC Bay  
               Area's Investigative Unit about the PUC's safety culture.   
               The Assemblyman maintains that while hearings were held,  
               there is progress yet to be made.  Additionally, the  
               Assemblyman remains cognizant of the struggle that he  
               personally underwent in the process of relocating  
               transmission lines in Chino Hills.  More recently, the  
               Assemblyman has also been alarmed by the latest report by  
               the California State Auditor's office detailing accounting  
               failures at the PUC.

           3)My place or yours  ?  While the intent to improve legislative  
            oversight is laudable, the mechanism of placing elected  
            legislators on the ARB and PUC in a non-voting capacity seems  
            to subordinate elected legislators to appointees of the  
            Governor.  It would seem equally, if not more, effective for  
            legislators to exercise oversight through the several  
            traditional means available, including summoning agencies to  
            the Legislature.  
             
             The mechanism proposed by this bill raises several other  
            interesting questions, such as:

             a)   Does the moniker "legislative oversight participants"  
               sidestep the California Constitution's requirement that the  
               PUC consist of only 5 "members" appointed by the Governor?   


             b)   Is it antithetical to the raison d'etre of the PUC, as  
               conceived during Hiram Johnson's reform movement as an  
               independent commission removed from the influences of  
               Sacramento and the railroads, to place legislators as  
               members?

             c)   Is joint appointment by the leaders of the Senate and  
               Assembly workable?

             d)   Is it fair to assume there will be only one minority  
               party from which to appoint a LOP?

           1)Double referral  .  This bill is double-referred to the Assembly  








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            Utilities and Commerce Committee.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Professional Association of Specialty Contractors

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092