BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1488|
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                                 THIRD READING


          Bill No:  SB 1488
          Author:   Bowen (D)
          Amended:  4/26/04
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  5-1, 3/23/04
          AYES:  Bowen, Alarcon, Dunn, Sher, Vasconcellos
          NOES:  Battin
          NO VOTE RECORDED: Morrow,  McClintock, Murray

           SENATE JUDICIARY COMMITTEE  :  4-2, 4/20/04
          AYES:  Escutia, Cedillo, Kuehl, Sher
          NOES:  Morrow, Ackerman
          NO VOTE RECORDED:  Ducheny

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Public Utilities Commission: public information

           SOURCE  :     Author


           DIGEST  :    This bill aligns the records practices of the  
          State Public Utilities Commission (PUC) with the Public  
          Records Act (PRA), in favor of public disclosure, and  
          states that all information furnished by a public utility,  
          or its subsidiary, affiliate or holding company, shall be  
          made public unless a provision of the PRA or the PUC  
          requires it to be withheld.

           ANALYSIS  :    Unlike other state agencies, whose records are  
          generally open for public inspection, the PUC operates  
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          under a statute that affords the public access to its  
          records only when specifically permitted by the PUC. 

          The section creating the presumption against public  
          inspection has its origin in a law enacted in 1915.   
          Despite the "open government" reforms in California such as  
          the PRA (enacted in 1968), the statutory standard for  
          public access to utility filings with the PUC has not  
          fundamentally changed since 1915.

          The PRA gives every person the right to inspect and obtain  
          copies of all state and local government documents not  
          exempt from disclosure.   Exemptions include corporate  
          financial records and corporate proprietary information,  
          including trade secrets.  The PRA also specifically  
          provides that information held by the PUC which is deemed  
          confidential under Section 583 of the Public Utilities Code  
          is not required to be disclosed. 

          In January 2004, the Legislature adopted SCA 1 (Burton),  
          which proposes to make access to records and public  
          meetings of government officials and agencies a  
          constitutional right of each citizen.  To be enacted, SCA 1  
          also must be approved by voters and is pending on the  
          November 2004 statewide ballot.  If enacted, SCA 1 would  
          not repeal or nullify Section 583 or any other existing law  
          that creates an exception to the right of access to public  
          records.
           
           Existing law requires public utilities to furnish to the  
          PUC information necessary for the PUC to carry out its  
          regulatory duties. 

          Existing law requires that records of every state agency be  
          made available for public inspection upon request, with  
          certain exceptions and subject to procedures. 

          Existing law establishes a presumption against public  
          disclosure by providing that no information furnished by a  
          public utility, or its subsidiary, affiliate or holding  
          company, shall be made public unless a provision of the  
          Public Utilities Act or the PUC requires it to be made  
          public. 








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          This bill changes the presumption to favor public  
          disclosure by providing that all information furnished by a  
          public utility, or its subsidiary, affiliate or holding  
          company, shall be made public unless a provision of the PRA  
          or the PUC requires it to be withheld.
           
           This bill empowers the PUC to designate certain categories  
          of information as confidential, if it finds that the public  
          interest served by not disclosing the information clearly  
          outweighs the public interest served by the disclosure of  
          information.  Existing statutory exemptions for disclosure  
          under the PRA, including financial records and proprietary  
          information, will continue to apply.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/11/04)

          (prior versions of the bill)

          American Federation of State, County and Municipal  
          Employees, AFL-CIO
          Clean Power Campaign
          Environment California

           OPPOSITION  :    (Verified  5/11/04)

          (prior versions of the bill)

          AT&T
          California Association of Competitive Telecommunications  
          Companies 
          California Cable & Telecommunications Association
          California Telephone Association
          Pacific Gas & Electric Company
          Pac West
          SBC
          Sempra Energy
          Southern California Edison
          Sprint Communications Company

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          the PUC is the only state agency not subject to the  







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          presumption established by the PRA that information in a  
          state agency's control is public, unless specifically  
          exempted from disclosure.  

          The presumption of confidentiality applied to records of  
          the PUC originated in 1915 and is inconsistent with the  
          standard applicable to all other state agencies.

          By creating the presumption that utility information should  
          be kept from the public, current law operates as an  
          impediment to the practice of open government at the PUC.   
          This bill is part of an effort to improve the transparency  
          of the PUC process and otherwise enable effective public  
          participation in PUC proceedings.

          This bill conforms Section 583 to the PRA by changing the  
          presumption that utility information held by the PUC is  
          confidential to a presumption that it is public.  The PUC  
          is empowered by the bill to protect legitimately  
          confidential information by affirmatively deciding that it  
          should not be disclosed.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that the bill  
          does not adequately protect market sensitive information  
          and utilities may respond by withholding relevant  
          information from the PUC.

          Some utilities are concerned that if the presumption of  
          confidentiality under Section 583 is reversed, the public  
          will have access to information before the PUC determines  
          whether the information is of the kind that ought to be  
          kept confidential.


          NC:mel  5/12/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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