BILL ANALYSIS AB 1389 Page 1 ASSEMBLY THIRD READING AB 1389 (Ridley-Thomas) As Amended June 2, 2003 Majority vote. UTILITIES AND COMMERCE 9-0 APPROPRIATIONS 17-7 ----------------------------------------------------------------- |Ayes:|Reyes, Calderon, |Ayes:|Steinberg,, Berg, Kehoe, | | |Canciamilla, Diaz, Jerome | |Corbett, | | |Horton, Levine, Nunez, | |Diaz, Firebaugh, | | |Ridley-Thomas, Wolk | |Goldberg, Leno, | | | | |Nation, Chan, Nunez, | | | | |Pavley, | | | | |Ridley-Thomas, Simitian, | | | | |Wiggins, Yee, Laird | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Richman, Campbell, La |Nays:|Bates, Daucher, Haynes, | | |Malfa, | |Maldonado, | | |La Suer | |Pacheco, Runner, | | | | |Samuelian | | | | | | ----------------------------------------------------------------- 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 that public utilities serve a vital function, providing basic infrastructure essential to the efficient conduct of commerce and societal interaction and a more complete interpretation of the public interest would also give consideration to the benefits of public utility employment to the state and its residents. 2)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 AB 1389 Page 2 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; and, e) The capital investment 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. FISCAL EFFECT : PUC's costs to collect and report the required information should be minor (less than $20,000). COMMENTS : 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. 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) of 2002, 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. AB 1389 Page 3 Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083 FN: 0001612