BILL ANALYSIS
SENATE CONSTITUTIONAL AMENDMENTS COMMITTEE
Senator Charles Poochigian, Chair
BILL NO: SCA 6 HEARING: 6/11/03
AUTHOR: Battin FISCAL: Yes
VERSION: 5/14/03 CHIEF COUNSEL: Scott Johnson
REFERRED: Sen Energy, U&C (8-0) 4/8/03
Sen E&R (3-1) 5/7/03
Public Utilities Commission: Elections
SUMMARY
This proposed constitutional amendment would provide for the
election of seven members of the California Public Utilities
Commission to be elected by district for 4-year terms of office
coinciding with gubernatorial elections. The measure would
further impose a district residency requirement.
EXISTING LAW
Article XII of the California Constitution provides for a Public
Utilities Commission (PUC) consisting of five members appointed
by the governor and confirmed by the Senate for staggered
six-year terms of office. A vacancy is filled for the remainder
of the term. Once appointed, the governor has no authority to
remove a confirmed commissioner. Only the Legislature, with a
two-thirds vote of each house, may remove a PUC commissioner for
incompetence, neglect of duty or corruption (Section 1).
BACKGROUND
The PUC, which is authorized to regulate private corporations
providing essential public services such as transportation,
communication and natural gas and electricity, has its origins
in the 1879 California Constitution. Composed of three elected
members, the original commission was established to regulate the
railroads, which exercised near monopoly powers over the state's
transportation routes during the 19th and early 20th centuries.
The progressive movement of Governor Hiram Johnson led to the
creation of the Commission as we know it today. The Public
Utilities Act of 1911, recognizing the continued existence of
the original entity, broadened the scope of the Commission 's
regulatory authority while increasing the number of
commissioners from three to five.
In an effort to insure that the members were independent of
undue partisan influence, Section 1 provided that members be
appointed rather than elected for staggered six-year terms.
This ensures that no single governor may appoint a majority of
the Commission within a single gubernatorial four year term of
office.
Article XII grants the PUC wide latitude to perform its
administrative and regulatory duties with respect to essential
services that fall within its purview. Under Section 2, the PUC
is granted the authority to establish its own procedures subject
only to statute and due process. The Commission is permitted to
undertake an investigation of facts and initiate its own
proceedings exempt from procedural prescriptions applicable to
most other state administrative agencies. Commission members
perform quasi-judicial functions and once appointed by the
governor, are exempt from the general rule that allows a
governor to both appoint and remove members from office.
Section 1 specifies that after appointment, only the Legislature
may remove a member of the PUC, and then only with a two-thirds
vote of each house concurring.
Recognizing the unique and independent role of the PUC in the
scheme of state government, Section 5 of Article XII allows the
Legislature to confer additional authority and jurisdiction upon
the Commission subject to the Legislature's own plenary power
unlimited by any other constitutional provision.
In summary, Article XII has been drafted and revised to grant a
unique level of autonomy and independence to the PUC. The issue
raised by the introduction of SCA 6 is whether as constituted
the Commission and its members are sufficiently responsive to
the needs of the ratepayers. It is the author's contention that
an elected, rather than an appointed commission membership would
provide the framework of a PUC that is truly accountable to the
needs of all Californians.
ANALYSIS
SCA 6 would provide for seven PUC commissioners to be elected
for 4-year terms at gubernatorial elections.
The measure would require the state to be divided into seven
districts with the voters of each district electing one member
and would provide for the establishment and adjustment of
distinct boundaries by the Legislature.
The measure would also require the Legislature to impose, by a
statue, a requirement that a member reside within the
represented district and would apply to terms commencing on or
after January 1, 2007.
SCA6 would provide that vacancies be filled for the remainder of
the term in the same manner now in effect for other statewide
elected officials (nomination by the governor with confirmation
by both houses of the Legislature), and CPUC members would be
subject to existing recall and impeachment procedures.
The measure would prohibit an entity subject to regulation by
the Commission from making a campaign contribution, directly or
indirectly, to a commissioner or candidate for commissioner, and
would require the Legislature to enact statutes to implement
this prohibition.
Finally, this measure would include members of the Public
Utilities Commission among those state officers whose salaries
and benefits would be established by the California Citizens
Compensation Commission using the value of the salary and
benefits paid on January 1, 2006, as the base amount.
If approved by the Legislature, this SCA 6 would appear on the
March 2, 2004 ballot, and if approved by the voters, candidates
for CPUC membership would commence their terms of office on or
after January 1, 2007.
COMMENTS - Term Limits
The author has indicated he intends to amend SCA 6 to provide
that PUC commissioners may serve no more than two 4 year terms
of office.
SUPPORT
The Foundation for Taxpayer and Consumer Rights
OPPOSITION
AT&T
California Chamber of Commerce
California Cable and Telecommunications Association
California Manufacturers and Technology Association
California Telephone Association
California Water Association
Pacific Gas and Electric Company
Pinnacles Telephone Company
Public Utilities Commission, State of California
SBC California
Sempra Energy
Southern California Edison
SureWest Communications
Verizon Communications