BILL NUMBER: AB 1389 AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 2, 2003 AMENDED IN ASSEMBLY MAY 5, 2003 AMENDED IN ASSEMBLY APRIL 22, 2003 INTRODUCED BY Assembly Member Ridley-Thomas (Coauthors: Assembly Members Bermudez and Longville) FEBRUARY 21, 2003 An act to add Section12123 to the Public Contract Code, and Sections 7911 and7912 to the Public Utilities Code, relating to public utilities. LEGISLATIVE COUNSEL'S DIGEST AB 1389, as amended, Ridley-Thomas. Publicutilities: rights and obligations:Utilities Commission: reports: hiring:purchases of goods and servicescapital investment .(1) UnderUnder 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.Thisbill would provide that it is the policy of California, consistent with constitutional requirements, that the state, when exercising its proprietary role as a purchaser of goods and services from public utilities, act to promote the employment of California residents. Thebill would require the commission to annually report certain information on each public utility to the Assembly Committee on Utilities and Commerce and the Senate Committee on Energy, Utilities and Communications, or successor committees, and to make the information available to the public on its Internet Web site.(2) 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: 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) In exchange for the state's granting ofpublic utility monopolies or near-monopolies, thea certificate of public convenience and necessity, public utilities bear a heightened responsibility for contributing to the public interest. (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 ofA more complete interpretation of the public interest would also give consideration to 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.(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 by California's 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 thelevellevels of employment of California residents and capital investment in California by public utilities, so that the state canmake knowledgeable proprietary decisions when purchasing utility goods and servicesensure greater oversight of public utilities and more comprehensive, informed policymaking .SEC. 2. 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 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.SEC. 2. Section 7912 is added to the Public Utilities Code, to read: 7912. The commission shall annually report to the Assembly Committee on Utilities and Commerce and the Senate Committee on Energy, Utilities and Communications, or successor committees, 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 resides 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 resides in California. (e) The capitalinvestments made by the public utilityinvestment in the public utility's tangible and intangible plant which ordinarily have a service life of more than one year, including plant used by the company or others in providing public utility services, in California during the yearly reporting period.