BILL NUMBER: AB 2803 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 14, 2004
AMENDED IN ASSEMBLY MAY 17, 2004
AMENDED IN ASSEMBLY APRIL 27, 2004
AMENDED IN ASSEMBLY APRIL 14, 2004
AMENDED IN ASSEMBLY MARCH 26, 2004
INTRODUCED BY Assembly Member Jerome Horton
FEBRUARY 20, 2004
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:
hearings: record on economic impacts.
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.
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 require, if the commission determines that a
ratesetting or quasi-legislative case requires a hearing, that the
assigned commissioner or administrative law judge designate
determine in the scoping memorandum whether
there is a need to develop a record consider
comments or evidence from parties on the economic impact of
issues presented in the case. The bill would require every
party in the case to provide a showing to assess the
commission, if the assigned commissioner or administrative law judge
determines that it is necessary to develop a record on the economic
impact of those issues, to consider evidence submitted by the parties
to the case regarding whether the ratesetting or
quasi-legislative case is likely to affect prescribed and designated
elements of economic significance. The bill would also
require, if the assigned commissioner or the assigned administrative
law judge determines that it is necessary to develop a record on the
economic impact of issues presented
designated in the case, that appropriate findings
relative to the economic issues designated in the scoping memorandum
scoping memorandum, that the comments or evidence
relied upon by the commission be included as a part of the
final written decision. The bill would require the
commission to assess prescribed and designated elements of economic
significance and find that on balance, the proposed decision is in
the public interest. The bill would provide that the commission's
costs are reimbursable from the utility, to be paid into an account
to be created by the commission in the Utilities Reimbursement
Account in the General Fund, to be available for expenditure by the
commission upon appropriation by the Legislature The
bill would provide that any additional costs incurred by the
commission as a result of the implementation of the provisions of the
bill be funded utilizing existing resources, and not result in an
increase in specified fees .
Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime.
The provisions of this bill would be a part of the act and would
require every party in designated cases to provide a showing to
assess whether the case is likely to affect prescribed and designated
elements of economic significance. Because a violation of that
requirement and a violation of an order or decision of the commission
with respect to reimbursement of the commission's costs would be a
crime, the bill would impose a state-mandated local program by
creating new crimes.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1701.7 is added to the Public Utilities Code,
to read:
1701.7. (a) If the commission determines that a ratesetting or
quasi-legislative case requires a hearing pursuant to Section 1701.1,
the assigned commissioner or the assigned administrative law judge
shall designate determine in the
scoping memorandum whether there is a need to develop a
record consider comments or evidence from parties
on the economic impact of issues presented in the case. If
it is determined the assigned commissioner or
the assigned administrative law judge determines that it is
necessary to develop a record on the economic impact of these
issues, every party to the case, including a public utility,
shall provide a showing to assess whether the ratesetting or
issues, the commission shall consider evidence
submitted by parties to the case, regarding whether the ratesetting
or quasi-legislative case is likely to affect employment,
capital investment, infrastructure deployment, public safety, or any
other element determined to be of economic significance.
Every party to the case, including a public utility, shall have the
burden of demonstrating, by a preponderance of the evidence, whether
the ratesetting or quasi-legislative case is likely to affect
employment, capital investment, infrastructure deployment, public
safety, or any other element determined to be of economic
significance in the scoping memorandum.
(b) If , pursuant to subdivision (a), the assigned
commissioner or the assigned administrative law judge determines that
it is necessary to develop a record on the economic impact of issues
presented in the case, appropriate findings relative to the
economic impact designated in the scoping memorandum shall be
included as a part of the final written decision. The commission
shall assess whether the ratesetting or quasi-legislative case is
likely to affect employment, capital investment, infrastructure
deployment, public safety, or any other element determined to be of
economic significance in the scoping memorandum and shall find based
upon the assessment, that on balance, the proposed decision is in the
public interest. designated in the scoping
memorandum, the comments or evidence relied upon by the commission
shall be included as a part of the final written decision.
(c) The requirements of this section apply to any ratesetting or
quasi-legislative case initiated on or after January 1, 2005.
(d) The commission's costs of studying and evaluating the economic
impact of issues, including the costs of any required consultants,
are reimbursable from the utility. Cost reimbursements received by
the commission shall be transferred to an account to be established
by the commission in the commission's Utilities Reimbursement Account
in the General Fund, and shall be available for expenditure by the
commission upon appropriation by the Legislature.
(e) The Legislature finds and declares that to the extent that the
commission is required by this section to analyze and make findings
relative to the economic impact of issues presented in a ratesetting
or quasi-legislative case, the commission may, consistent with
Section 1701.5, require more than 18 months from the date the scoping
memorandum is issued to resolve the issues raised in the scoping
memorandum.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
(d) Any additional costs incurred by the commission as a result of
the implementation of the provisions of this section shall be funded
utilizing existing resources and shall not result in an increase in
fees imposed pursuant to Section 431.