BILL NUMBER: SB 386	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Campbell

                        FEBRUARY 17, 2005

   An act to amend Section 314.5 of the Public Utilities Code,
relating to the Public Utilities Commission.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 386, as introduced, Campbell.   Public Utilities Commission:
inspection and audit of books and records.
   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. The existing Public
Utilities Act requires the commission to inspect and audit the books
and records of certain public utilities, at specified intervals, for
regulatory and tax purposes.
   This bill would require that any audit conform to the Government
Auditing Standards of the Comptroller General of the United States,
and where applicable and not inconsistent with those standards, to
the Generally Accepted Auditing Standards of the American Institute
of Certified Public Accountants.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 314.5 of the  Public Utilities Code  is amended
to read:
   314.5.  The commission shall inspect and audit the books and
records for regulatory and tax purposes (a) at least once in every
three years in the case of every electrical, gas, heat, telegraph,
telephone, and water corporation serving over 1,000 customers, and
(b) at least once in every five years in the case of every
electrical, gas, heat, telegraph, telephone, and water corporation
serving 1,000 or fewer customers. An audit conducted in connection
with a rate proceeding shall be deemed to fulfill the requirements of
this section. Reports of such inspections and audits and other
pertinent information shall be furnished to the State Board of
Equalization for use in the assessment of public utilities.  Any
audit performed pursuant to this   section shall conform to
the "Government Auditing Standards" published by the Comptroller
General of the United States, and where applicable and not
inconsistent with the "Government Auditing Standards," to the
Generally Accepted Auditing Standards of the American Institute of
Certified Public Accountants.