BILL NUMBER: AB 1389 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2003
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 21, 2003
An act to add Article 9 (commencing with Section 650) to
Chapter 3 of Part 1 of Division 1 of Section 12123 to
the Public Contract Code, and Sections 7911 and 7912 to the
Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1389, as amended, Ridley-Thomas. Public utilities: rights and
obligations: hiring : purchases of goods and services .
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. The Public Utilities Act
establishes the rights and obligations of public utilities under the
jurisdiction of the commission . Existing law establishes the
rights and obligations of utility corporations and their employees,
and requires each electrical, gas, and telephone corporation with
specified gross annual revenues, to submit annually to the
commission, a detailed and verifiable plan for increasing women,
minority, and disabled veteran business enterprise procurement,
requires the commission to establish guidelines to be used to
establish programs to achieve established goals in those plans, and
requires the commission to annually report to the Legislature on
progress under these programs .
This bill would provide that it is the policy of California,
consistent with constitutional requirements, that the tasks
and duties necessary for the rendering of public utility service
within the state be performed by California residents
state, when exercising its proprietary role as a purchaser of goods
and services from public utilities, act to promote the employment of
California residents. The bill would require the commission to
annually report certain information on each public utility, to the
Legislature, and to make the information available to the public on
its Internet Web site.
Existing law provides for acquisition of telecommunications goods
and services by the state under the supervision of, the Department of
General Services, which has sole responsibility for the
establishment of tactical policy and procedures for
telecommunications and data-processing acquisitions consistent with
statewide strategic policy as established by the Department of
Finance.
This bill would provide that it is the policy of the state,
consistent with constitutional requirements, when purchasing
telecommunications goods and services, to act to promote the
employment of California residents .
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Public utilities serve a vital function, providing basic
infrastructure essential to the efficient conduct of commerce and
societal interaction.
(b) Because of the essential nature of public utility
services and the economics of the production of public utility
services, state policy has shielded the public utilities from
competition by granting the public utilities monopolies within their
service areas.
(c) Though public utility markets have been increasingly subject
to competition, the public utilities have nevertheless retained
distinct competitive advantages versus their competitors because of
actions taken by the Public Utilities Commission.
(d) In exchange for the state's granting of public
utility monopolies or near-monopolies, the public utilities bear a
heightened responsibility for contributing to the public interest.
(e)
(c) The public interest has been interpreted to include
providing an adequate level of public utility service at a just and
reasonable rate. This interpretation has not explicitly included a
consideration of the benefits of public utility employment to the
state and its residents. A more complete interpretation of the
public interest would give this consideration some weight.
(f) Given the current poor economic climate and the high
(d) Given the difficult economic climate and the increasing
unemployment rate within the State of California, it is necessary and
proper state policy to encourage the employment of Californians
and discourage the employment of non-Californians
by California's public utilities.
(g) The Public Utilities Commission has broad powers to regulate
the practices and rates of public utilities.
(e) The state, when exercising its proprietary function of
purchasing goods and services, should make purchases that promote the
employment of California residents and not do business with utility
corporations that shift jobs outside of California.
(f) The Public Utilities Commission should monitor and annually
report to the Legislature, information showing the level of
employment of California residents by public utilities, so that the
state can make knowledgeable proprietary decisions when purchasing
utility goods and services.
SEC. 2. Article 9 (commencing with Section 650) is added
to Chapter 3 of Part 1 of Division 1 of the Public Utilities Code, to
read:
Article 9. Hiring.
650. Section 12123 is added to the Public Contract
Code, to read:
12123. It is the policy of the State of California, consistent
with the federal and state constitutions, that the state, when
exercising its proprietary role as a purchaser of telecommunications
goods and services, act to promote the employment of California
residents.
SEC. 3. Section 7911 is added to the Public Utilities Code, to
read:
7911. It is the policy of the State of California,
consistent with the federal and state constitutions, that the
tasks and duties necessary for the rendering of public
utility service within the state shall be performed by residents of
California. state, when exercising its proprietary
role as a purchaser of goods and services from public utilities, act
to promote the employment of California residents.
SEC. 4. Section 7912 is added to the Public Utilities Code, to
read:
7912. The commission shall annually report to the Legislature and
within a reasonable time thereafter, make available to the public on
its Internet Web site, information for each public utility, showing
all of the following:
(a) The number of customers served in California by the public
utility.
(b) The percentage of the public utilities' total domestic
customer base that reside in California.
(c) The number of California residents employed by the public
utility, calculated on a full-time or full-time equivalent basis.
(d) The percentage of the public utilities' total domestic
workforce, calculated on a full-time or full-time equivalent basis,
that reside in California.
(e) The capital investments made by the public utility in
California during the yearly reporting period.