BILL NUMBER: AB 2803	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2004

INTRODUCED BY   Assembly Member Jerome Horton

                        FEBRUARY 20, 2004

   An act to  add Sections 309.4 to   amend
Section 321.1 of, and to add Section 309.4 to,  the Public
Utilities Code, relating to the Public Utilities Commission.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2803, as amended, Jerome Horton.  Public Utilities Commission:
Office of Economic Development.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities.  Existing law establishes a
division within the Public Utilities Commission, known as the Office
of Ratepayer Advocates, to represent the interests of public utility
customers and subscribers, with the goal of obtaining the lowest
possible rate for service consistent with reliable and safe service
levels.   Existing law states the intent of the Legislature that
the commission assess the economic effects or consequences of its
decisions within existing resources and commission structures, and
prohibits the commission from establishing a separate office or
department for the purpose of evaluating economic development
consequences of commission activities. 
   This bill would  delete the prohibition upon the commission
establishing a separate office or department for the purpose of
evaluating economic development consequences of commission activities
and would  establish the Office of Economic Development as a
division within the commission to review and assess the beneficial
and adverse economic impacts, as defined, intended and unintended, of
commission decisions and orders in commission  proceeding
  proceedings  .  The goal of the office would be
to assist the commission in making decisions that will promote
economic development and to avoid making decisions that will suppress
economic development.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 309.4 is added to the Public Utilities Code, to
read:
   309.4.  (a) There shall be established within the commission, a
division named the Office of Economic Development, which shall review
and assess the beneficial and adverse economic impacts, intended and
unintended, of commission decisions and orders in commission
proceedings.  The goal of the Office of Economic Development is to
assist the commission in making decisions that will promote economic
development and to avoid making decisions that will suppress economic
development.
   (b) For purposes of this section:
   (1) "Adverse economic impacts" includes increasing costs, raising
prices, loss of jobs or employment opportunities, reducing
technological innovation or investment in technological innovation,
reducing investment in infrastructure to serve consumers, and
reducing consumer choices and options.
   (2) "Beneficial economic impacts" include increased efficiency,
reduced costs, reduced prices, technological innovation, increased
employment, increased consumer choices, and increased information
reasonably available to consumers to make informed choices.  
  SEC. 2.  Section 321.1 of the Public Utilities Code is amended to
read: 
   321.1.  It is the intent of the Legislature that the commission
assess the economic effects or consequences of its decisions as part
of each ratemaking, rulemaking, or other proceeding, and that this be
accomplished using existing resources and within existing commission
structures.   The commission shall not establish a separate
office or department for the purpose of evaluating economic
development consequences of commission activities.