BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1389|
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                                 THIRD READING


          Bill No:  AB 1389
          Author:   Ridley-Thomas (D), et al
          Amended:  8/26/03 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  5-1, 7/8/03
          AYES:  Bowen, Alarcon, Dunn, McClintock, Murray
          NOES:  Battin
          NO VOTE RECORDED:  Morrow, Sher, Vasconcellos

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 8/20/03
          AYES:  Alpert, Bowen, Escutia, Karnette, Machado, Murray,  
            Speier
          NOES:  Battin, Ashburn, Poochigian
          NO VOTE RECORDED:  Aanestad, Burton, Johnson

           ASSEMBLY FLOOR  :  46-30, 6/5/03 - See last page for vote


           SUBJECT  :    Public Utilities Commission:  reports

           SOURCE :     Communication Workers of America


           DIGEST  :    This bill requires a public utility employing  
          more than 750 employees to report annually to the State  
          Public Utilities Commission (PUC) certain information  
          regarding its customer base, workforce, and capital  
          investments.  The bill also requires the PUC to make the  
          information available on its website and to report the  
          information annually to specified legislative committees.

           ANALYSIS  :    Current law defines public utilities as common  
                                                           CONTINUED





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          carriers, telephone corporations, electric corporations,  
          gas corporations, and water corporations.

          Current law requires every public utility to furnish and  
          maintain such service as is necessary to promote the  
          safety, health, comfort, and convenience of its patrons,  
          employees, and the public.

          This bill finds that:

          1.Public utilities serve a vital function, providing basic  
            infrastructure essential to the efficient conduct of  
            commerce and societal interaction.

          2.In exchange for the grant of public utility status, those  
            utilities bear a heightened responsibility for  
            contributing to the public interest, including  
            consideration of the benefits of public utility  
            employment to the state and its residents.

          3.It is proper state policy to encourage the employment of  
            Californians by California's public utilities.

          This bill requires the PUC to provide an annual report to  
          the policy committees of the Senate and Assembly, and to  
          make the report publicly available through the Internet.   
          The report will contain the following information from a  
          public utility with over 750 employees:  

          1.The number of customers served in California. 

          2.The percentage of customers residing in California.

          3.The number of California residents employed, on a  
            full-time or full-time equivalent basis.

          4.The number of California residents employed as  
            independent contractors and consultants by the public  
            utility (applies only to those employees personally  
            providing services to the utility and only when the  
            utility has obtained the information upon requesting it  
            and is not contractually prohibited from disclosing such  
            information.)








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          5.The percentage of each company's workforce that lives in  
            California.

          6.The capital investment for the year.


           Background

           Every public utility is subject to the jurisdiction of the  
          PUC, subject to preemption by federal law or exemption by  
          state statute.  The regulatory bargain has historically  
          been one where the government grants an exclusive franchise  
          to a utility in exchange for the utility agreeing to have  
          its profits limited, to meet service quality standards, and  
          to serve all qualified customers.

          The concern over utility employment started in the  
          telecommunications industry as telephone companies, which  
          are public utilities, grew into multi-state operations.   
          Not surprisingly, this growth has provided opportunities  
          for companies to lower costs through economies of scale.   
          Telephone companies have sought to lower their costs by  
          consolidating activities, such as call centers and operator  
          service centers, and moving them to other states and other  
          countries.  
           
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Increased costs to the PUC should be approximately $95,000  
          annually.  If the PUC must audit reported information,  
          costs could be higher.

          The Public Utilities' Reimbursement Account revenues are  
          derived from an annual fee imposed on public utilities.   
          Therefore, any increased costs should be offset by  
          increased fee revenues.

           SUPPORT  :   (Verified  8/18/03)

          California Coalition of Utility Employees
          California Conference Board of the Amalgamated Transit  
          Union
          California Conference of Machinists







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          California Labor and Telecommunications Coalition
          Engineers and Scientists of California, Local 20, IFPTE,  
          AFL-CIO
          Hotel Employees & Restaurant Employees International Union
          Professional and Technical Engineers, Local 21, IFPTE,  
          AFL-CIO
          Teamsters
          United Food & Commercial Workers Region 8 States Council

           OPPOSITION  :    (Verified  8/18/03)

          AT&T
          California Association of Competitive Telecommunications  
          Companies
          California Cable & Telecommunications Association
          Cellular Telecommunications & Internet Association
          MCI Worldcom
          Pac West Telecomm, Inc.
          Sprint


           ASSEMBLY FLOOR  
          AYES:  Berg, Bermudez, Calderon, Chan, Chavez, Chu, Cohn,  
            Corbett, Correa, Diaz, Dutra, Dymally, Firebaugh,  
            Frommer, Goldberg, Hancock, Jerome Horton, Shirley  
            Horton, Jackson, Kehoe, Koretz, Laird, Leno, Levine,  
            Lieber, Liu, Longville, Lowenthal, Matthews, Montanez,  
            Mullin, Nakano, Nation, Negrete McLeod, Nunez, Oropeza,  
            Pavley, Ridley-Thomas, Salinas, Simitian, Steinberg,  
            Vargas, Wiggins, Wolk, Yee, Wesson
          NOES:  Aghazarian, Bates, Benoit, Bogh, Campbell, Cogdill,  
            Cox, Daucher, Dutton, Garcia, Harman, Haynes, Houston,  
            Keene, La Malfa, La Suer, Leslie, Maldonado, Maze,  
            McCarthy, Mountjoy, Nakanishi, Pacheco, Plescia, Richman,  
            Runner, Samuelian, Spitzer, Strickland, Wyland


          NC:cm  8/25/03   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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