SB 434,
as amended, Hill. Public Utilities Commission:begin delete Removalend deletebegin insert removalend insert of a commissioner.
The California Constitution establishes the Public Utilities Commission, with jurisdiction over all public utilities, and provides that the Legislature may remove a commissioner for incompetence, neglect of duty, or corruption, 2⁄3 of the membership of each house concurring. Existing law prohibits the commission, by order, decision, motion, settlement, or other action, from establishing a nonstate entity, as defined, with any moneys other than those moneys that would otherwise belong to the public utility’s shareholders. That law prohibits the commission from entering into a contract with any nonstate entity in which a person serves as an owner, director, or officer while serving as a commissioner. That law additionally provides that, beginning June 1, 2014, a commissioner who acts as an owner, director, or officer of a nonstate entity that was established prior to January 1, 2014, as a result of an order, decision, motion, settlement, or other action by the Public Utilities Commission in which the commissioner participated, neglects his or her duty and may be removed pursuant to the California Constitution.
This bill would provide that, beginning June 1, 2014, a commissioner who acts as an owner, director, or officer of a nonstate entity that was established as a result of an order, decision, motion, settlement, or other action by the Public Utilities Commission in which the commissioner participated, neglects his or her duty and may be removed pursuant to the California Constitution, irrespective of when the nonstate entity was established.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 854.5 of the Public Utilities Code is
2amended to read:
(a) For purposes of this section, a “nonstate entity”
4means a company, corporation, partnership, firm, or other entity
5or group of entities, whether organized for profit or not for profit.
6(b) The commission, by order, decision, motion, settlement, or
7other action, shall not establish a nonstate entity with any moneys
8other than those moneys that would otherwise belong to the public
9utility’s shareholders. A nonstate entity to be created with moneys
10from a public utility’s shareholders shall be subject to a 30-day
11review by the Joint Legislative Budget Committee prior to creation.
12This subdivision does not limit the authority of the commission
13to form an advisory committee or
other body whose budget is
14subject to oversight by the commission and the Department of
15Finance.
16(c) The commission shall not enter into a contract with a
17nonstate entity in which a person serves as an owner, director, or
18officer while serving as a commissioner. Any contract between
19the commission and a nonstate entity shall be void and cease to
20exist by operation of law, if a commissioner, who was a
21commissioner at the time the contract was awarded, entered into,
P3 1or extended, becomes, on or after January 1, 2014, an owner,
2director, or officer of the nonstate entity while serving as a
3commissioner.
4(d) Beginning June 1, 2014, a commissioner who acts as an
5owner, director, or officer of a nonstate entity that was established
6as a result of an order, decision, motion, settlement,
or other action
7by the commission in which the commissioner participated,
8neglects his or her duty pursuant to Section 1 of Article XII of the
9California Constitution,begin delete for whichend deletebegin insert and as a resultend insert the commissioner
10may be removed pursuant to thatbegin delete section.end deletebegin insert section by the Legislature,
11two-thirds of the membership of each house concurring.end insert
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