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