BILL ANALYSIS AB 1389 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1389 (Ridley-Thomas) As Amended August 26, 2003 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |46-30|(June 5, 2003) |SENATE: |22-12|(August 28, | | | | | | |2003) | ----------------------------------------------------------------- Original Committee Reference: U. & C. SUMMARY : Requires the California Public Utilities Commission (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 Senate amendments require 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: 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.) AS PASSED BY THE ASSEMBLY , this bill: 1)Stated 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)Required 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 : According to the Senate Appropriations Committee this bill could result in increased costs to PUC of approximately $95,000 annually. If PUC must audit reported information, costs could be higher. 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. This 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 AB 1389 Page 3 in the Assembly Utilities and Commerce Committee. Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083 FN: 0003177