BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1389
                                                                  Page  1

          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.








                                                                  AB 1389
                                                                  Page  2


             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  








                                                                  AB 1389
                                                                  Page  3

          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








                                                                  AB 1389
                                                                  Page  4

          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