BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 1658 - Assembly U&C Hearing
Date: July 13, 1999 A
As Amended: July 7, 1999 FISCAL B
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DESCRIPTION
This bill is predominantly a technical cleanup bill on
various provisions relating to the California Public
Utilities Commission (CPUC) and with two exceptions, no
policy changes are proposed by this bill.
BACKGROUND
Take Two . In 1998, the CPUC engaged the various industries
subject to its jurisdiction, as well as various stakeholder
groups, in an effort to update the codes. The CPUC held a
number of meetings with the groups and developed AB 1605,
which was approved by this Committee on consent but was
ultimately vetoed because of a chaptering out problem.
This bill is an exact reincarnation of AB 1605 (Committee
on Utilities & Commerce) with a few added provisions which,
with two exceptions, are technical.
Like AB 1605, this bill makes most of its changes in the
transportation area, where federal preemption of much of
the state's authority over railroads and some forms of
trucking is recognized. Other updates are to recognize the
change in name of various organizations, both inside and
outside of the CPUC. The bill also deletes some obsolete
code provisions and routine reporting requirements. The
provisions of the bill were agreed to by the
transportation, energy, water, and telecommunications
industries, as well as consumer and environmental groups.
Technical But More Than Technical . This bill includes two
non-technical changes that weren't present in AB 1605. The
first is a provision dealing with CPUC decisions regarding
water utilities and exempts routine decisions and decisions
regarding uncontested matters from the requirement of a
30-day public review and comment period. These review
provisions were initially created for all utilities by SB
779 (Calderon), Chapter 886, Statutes of 1998, but water
utilities argue they were supposed to be exempted from the
new requirement because they are still regulated
monopolies. The exemption was reportedly agreed to by all
of the parties that worked on SB 779, but it was
inadvertently omitted due to a drafting error.
The second non-technical change to the bill requires
applicants for a household goods carriers (i.e. movers)
permit to submit fingerprints of all of its owners,
partners, officers and directors, thus mirroring the
existing fingerprint requirement that applies to electric
service providers. These fingerprints are to be submitted
to the Department of Justice to determine if the applicant
has a criminal history. Existing license-holders are not
required to submit fingerprints.
COMMENTS
1.An Exemption That Got Lost In The Mail . This portion of
the bill is supported by the California Water Association
(CWA), which argues the 30-day public notice requirement
for advice letter filings and uncontested decisions that
was created by SB 779 (Calderon), Chapter 886, Statutes
of 1998, was never intended to be applied to regulated
water utilities. CWA believes these types of decisions
are not controversial and therefore there is no benefit
in a public notice and comment period that merely
duplicates the public process applied to the rate making
case that generates the subsequent advice letters and
uncontested filings. While this may well be true for
uncontested decisions, the provision also applies to
advice letter filings which may be contested. The author
and the Committee may wish to consider amending the bill
to apply this exemption only to uncontested advice letter
filings.
2.Print 'Em, Dan-O . Current law permits the CPUC to refuse
to issue a permit to become a household goods carrier if
an officer or director has committed any act constituting
dishonesty or fraud, or committed a felony or crime
involving moral turpitude. The provision of the bill
requiring the submission of fingerprints by household
goods carrier applicants gives the CPUC the ability to
run a criminal background check through the state
Department of Justice (DOJ) and FBI. Absent this
authority, the DOJ and FBI will not run the checks.
ASSEMBLY VOTES
Assembly U & C (11-0)
Assembly Appropriations (21-0)
Assembly Floor (76-0)
POSITIONS
Support:
California Water Association (CWA)
PUC
Oppose:
None reported to Committee.
Randy Chinn
AB 1658 Analysis
Hearing Date: July 13, 1999