BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 204
                                                                  Page  1

          Date of Hearing:   August 9, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                     SB 204 (Bowen) - As Amended:  May 23, 2006 

          Policy Committee:                              UtilitiesVote:7-4
                        Elections                             6-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill:

          1)Establishes that, if any commissioner of the Public Utilities  
            Commission (PUC) voluntarily acquires a financial interest in  
            an entity that the commissioner knows or should have known is  
            subject to PUC regulation, the commissioner's office shall be  
            immediately vacated.

          2)Requires the PUC to update its Conflict of Interest Code and  
            Statement of Incompatible Activities consistent with the  
            above.

          3)Expands an existing provision, which prohibits a person from  
            being a member of the California Energy Commission (CEC) if  
            they have received a substantial portion of their income from  
            any electric utility during the previous two years, to include  
            receiving such income from  any  corporation subject to CEC  
            regulation during the previous two years.

          4)Expands an existing provision, which prohibits a member of the  
            CEC from being employed by any electric utility or applicant  
            to the commission, to prohibit a CEC member from being  
            employed by any person or corporation subject to CEC  
            regulation.

           FISCAL EFFECT  

          Minor absorbable costs to the PUC.

           COMMENTS  








                                                                  SB 204
                                                                  Page  2


           Purpose  . The author believes that existing conflict of interest  
          provisions regarding the PUC and CEC need to be strengthened.  
          Under existing law, if a PUC commissioner involuntarily acquires  
          a financial interest in a person or corporation subject to  
          regulation by the PUC, that commissioner must either divest  
          himself or herself of that interest within a reasonable time, or  
          the commissioner must leave office.  However, existing law does  
          not provide a remedy if a commissioner voluntarily acquires a  
          financial interest in a person or corporation subject to PUC  
          regulation. This bill requires a PUC commissioner to vacate his  
          or her office under such circumstances.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081