BILL NUMBER: AB 2803	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2004
	AMENDED IN ASSEMBLY  MARCH 26, 2004

INTRODUCED BY   Assembly Member Jerome Horton

                        FEBRUARY 20, 2004

    An act to amend Section 321.1 of, and to add Section
309.4 to, the Public Utilities Code, relating to the Public Utilities
Commission.   An act to add Section 1701.7 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   hearings 
. 
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities and can establish its own
procedures, subject to statutory limitations or directions and
constitutional requirements of due process.  Existing law requires
the commission to determine whether a proceeding requires a
quasi-legislative, an adjudication, or a ratesetting hearing.
   This bill would require that when the commission determines that a
ratesetting or quasi-legislative case requires a hearing, the
assigned commissioner or administrative law judge designate in the
scoping memorandum the need to perform an economic impact analysis;
and if an economic impact analysis is needed, to include the findings
of the analysis as a part of the final written decision. 

   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 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
 
  SECTION 1.  Section 1701.7 is added to the Public Utilities Code,
to read:
   1701.7.  (a) If the commission determines that a ratemaking or
quasi-legislative case requires a hearing pursuant to Section 1701.1,
the assigned commissioner or the assigned administrative law judge
shall designate in the scoping memorandum the need to perform an
economic impact analysis.  If a determination is made that an
economic impact analysis is required, the findings of the analysis
shall be included as a part of the final written decision.
   (b) Any additional cost to the commission resulting from the
implementation of subdivision (a) shall not be borne by ratepayers or
the General Fund.   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.