BILL ANALYSIS
AB 1389
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Date of Hearing: April 28, 2003
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Sarah Reyes, Chair
AB 1389 (Ridley-Thomas) - As Amended: April 22, 2003
SUBJECT : Public utilities: rights and obligations: hiring
purchases of goods and services.
SUMMARY : Requires the California Public Utilities Commission
(PUC) to annually collect and report to the Legislature
employment information and capital investments made into
California from all public utilities in the state.
Specifically, this bill :
1)States in intent language that public utilities in exchange
for the state's granting monopoly or near-monopoly status bear
a heightened responsibility for contributing to the public
interest. Furthermore, the policy of the State of California
is to promote the employment of California residents when it's
exercising its proprietary role as a purchaser of goods and
services from public utilities.
2)Declares that 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 service, act to promote the
employment of California residents.
3)Requires PUC to annually collect and report to the
Legislature, and make available on its Internet web site, the
following information from all public utilities in the state:
a) The number of customers served in California by a public
utility.
b) The percentage of the public utilities total domestic
customer base that resides in California.
c) The number of California residents employed full-time or
part-time by a public utility.
d) The percentage of the public utilities total domestic
workforce, calculated on a full-time or part-time basis
that resides in California.
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e) The amount of capital investment made by the public
utility in California over the prior 12-month period.
EXISTING LAW :
1)Subjects public utilities to regulation by PUC.
2)Requires telecommunications utilities to furnish reasonable
service and to maintain such facilities as are necessary to
promote the safety, health, comfort, and convenience of its
patrons, employees, and the public.
FISCAL EFFECT : Unknown.
COMMENTS :
Background : According to the author the need for this bill is
due to the fact that public utilities in California have been
increasingly utilizing out-of-state workers for the provision of
utility services to California residents. This has a negative
impact on the workforce in California and the state's economy.
In light of the significant benefits that public utilities enjoy
in California for the use of the public right-of-way, a
reciprocal benefit must be obtained for the residents of the
state. With the increasing rates of unemployment being
experienced in California, coupled with a general economic
downturn, it is appropriate for the State to utilize its
proprietary powers to encourage the employment of California
residents by public utilities operating within the state.
Information should be delivered to a more appropriate body :
This bill requires that PUC provide this information annually to
the Legislature. A more appropriate body would seem to be the
respective policy committees in each house, thereby reducing
printing costs by PUC.
What is the purpose of gathering this information? This bill
requires that this information be provided to the Legislature on
an annual basis but doesn't specify what the information will be
used for. Furthermore, this bill establishes a statewide policy
implying that companies should employ only in-state workers but
fails to address what the ramifications could be if other states
follow suit by developing their own policy preferences for
employing their workers. Finally, is the purpose of this bill
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to promote employment preferences for in state workers for all
companies or just telecommunications companies, and if so, why
only telecommunications.
Previous legislation :
House Resolution 92 by Assemblymember Jackie Goldberg was read
and adopted by the Assembly on August 28, 2002. The resolution
resolved that is was necessary and proper state policy to
encourage the employment of Californians and discourage the
employment of non-Californians by California's telephone
corporations.
AB 2467 (Goldberg) - stated that it was the policy of the State
of California that tasks and duties necessary for the rendering
of local telephone service within the state be performed by
residents in California. This bill failed passage in the
Assembly Utilities and Commerce Committee in the 2002
legislative year.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor and Telecommunications Coalition
Coalition of Utility Employees
Los Angeles County Federation of Labor
San Diego - Imperial Counties Labor Council
California Teamsters Public Affairs Council
California Conference Board of the Amalgamated Transit Union
Hotel Employees & Restaurant Employees International Union
California Conference of Machinist
United Food & Commercial Workers Region & States Council
Engineers & Scientists of California, Local 20, IFPTE< AFL-CIO
Professional & Technical Engineers, Local 21, IFPTE< AFL-CIO
Communications Workers of America, AFL-CIO Local 9000
Communications Workers of America, AFL-CIO Local 9404
Communications Workers of America, AFL-CIO Local 9586
Communications Workers of America, AFL-CIO Local 9587
Communications Workers of America, AFL-CIO Local 9415
Communications Workers of America, AFL-CIO Local 9421
Communications Workers of America, AFL-CIO Local 9400
Communications Workers of America, AFL-CIO Local 9417
Communications Workers of America, AFL-CIO Local 9423
Communications Workers of America, AFL-CIO Local 9412
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Communications Workers of America, AFL-CIO District 9
Utility Workers Union of America, AFL-CIO Local 132
Opposition
AT&T
California Association of Competitive Telecommunication
Companies
California Cable & Telecommunications Association
MCI Worldcom
Verizon
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083