BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           6 (Battin)
          
          Hearing Date:  7/14/03          Amended: 6/18/03       
          Consultant:  Lisa Matocq            Policy Vote: C A 3-0
                                                                       
                                         E & R 3-1
                                                                       
                                         E, U & C 8-0  
            
          _______________________________________________________________
          BILL SUMMARY:   SCA 6, subject to voter approval, (1)  
          requires commissioners of the Public Utilities Commission  
          (PUC) to be elected, rather than appointed, (2) increases  
          the number of commissioners from five to seven, and (3)  
          requires the state to be divided into seven districts, as  
          specified. 

                              Fiscal Impact (in thousands)
           Major Provisions                 2003-04           2004-05              
           2005-06               Fund  
          
          PUC - salaries, district       Unknown costs, potentially  
          $1,050-3,400      Special* 
           offices, equipment, etc.      annually, beg. 2006-07   
           
          Election  costs   - SOS          $300-400 one-time in 2004-05 and less  
                 General
                                      than $50 in 2006-07 
          *Public Utilities' Reimbursement Account
          
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense File.   The California Constitution  
          provides for a five-member PUC, and six-year terms. This  
          bill changes the term to four-years, coinciding with  
          gubernatorial elections.  If approved by voters, candidates  
          would run for office in 2006. 

          A commissioner's salary is approximately $142,740 annual,  
          including benefits.   Each commissioner has four advisors,  
          and two clerical staff.  Therefore, increased costs for the  
          two new commissioners is $1.05 million annually.  The State  
          Board of Equalization members maintain district offices.   
          If the PUC opened and staffed seven new district offices,  
          increased costs could be $157,000 one-time for equipment,  










          and $216,000 to $2.39 million annually for salaries,  
          depending on the number of additional staff needed.  

          PURA revenues are derived from an annual fee imposed on  
          utilities.  Therefore, increased costs to the PUC may be  
          recovered through increased fee revenues.  However, the PUC  
          would need at least 12 additional personnel years to  
          implement this bill.   Increased costs to the Secretary of  
          State (SOS) to put the constitutional amendment on the  
          ballot could be $300,000-$400,000, depending on the number  
          of additional pages required in the ballot pamphlet.  In  
          addition, there may be increased election costs to  
          counties, which would not be considered a state mandate.