BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1389| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 AB 1389 Page 2 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.) AB 1389 Page 3 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 AB 1389 Page 4 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 **** END ****