BILL ANALYSIS
SB 33
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Date of Hearing: July 12, 1999
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick Wright, Chair
SB 33 (Peace) - As Amended: July 7, 1999
SENATE VOTE : 26-9
SUBJECT : Public Utilities Commission: president: advisers.
SUMMARY : This bill transfers authority from the California
Public Utilities Commission (CPUC) to the governor to designate
a president of CPUC and requires the president to direct the
staff of CPUC, as specified. Specifically, this bill :
1)Requires the governor to designate the president of CPUC from
among its members.
2)Requires the president to direct the executive director, the
attorney, and other CPUC staff, except for the staff of the
division which represents the interests of public utility
customers and subscribers in CPUC proceedings, in the
performance of their duties, in accordance with CPUC policies
and guidelines.
3)Specifies that the attorney and executive director may be
directed in their duties by a vote of CPUC, as prescribed.
4)Authorizes the governor, until January 1, 2003, to appoint up
to two advisers for each member to CPUC, and prohibits the
total number of advisers exempt from civil service from
exceeding ten.
5)Requires CPUC to seek funding for staffing in accordance with
that appointment provision through the annual Budget Act.
EXISTING LAW
1)Requires the members of CPUC to elect the president of CPUC.
2)Permits CPUC to appoint its own attorney and executive
director who perform at the direction of CPUC.
3)Permits each commissioner to have one adviser who is exempt
from civil service.
SB 33
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FISCAL EFFECT : Unknown.
COMMENTS :
1)Under existing law, CPUC president is elected by members of
CPUC. This bill provides that the governor shall designate a
president of CPUC from among its members and that the
president shall direct CPUC's attorney, executive director,
except when directed otherwise by a vote of CPUC.
Additionally, the president would direct all CPUC staff.
Staff representing ratepayers in CPUC proceedings would be
excluded from these provisions.
2)Under this bill, the full CPUC would continue to have the
appointing power with regard to the executive director and
CPUC attorney. Additionally, under this bill, the Chief
Administrative Law Judge, the Director of the Strategic
Planning Division, and the Public Adviser would continue to be
directed and appointed by the full commission.
3)The CPUC (originally named the Railroad Commission) was
created in 1911. In order to maximize CPUC's independence
from the entities it regulated, CPUC was located in San
Francisco. Additionally, numerous provisions were established
to preserve CPUC's independence. Then as now, CPUC members
were appointed by the governor for staggered six-year terms,
and could be removed from office only for certain very limited
reasons by a two-thirds vote of both houses of the
Legislature. This prevents an incoming governor from
immediately appointing a majority of CPUC, and enables CPUC to
maintain some measure of independence from the state's chief
executive.
4)The CPUC's independence, once seen as its greatest strength,
is now seen by some as a weakness or flaw. In recent years,
numerous stakeholders have expressed frustration with CPUC's
lack of accountability. This bill would increase CPUC's
accountability to the incumbent governor by providing the
chief executive with the authority to designate the president
of CPUC. The CPUC executive director, attorney, and most
members of CPUC staff, would be directed by the
gubernatorially-appointed president.
5)Existing law permits each commission to have one adviser who
SB 33
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is exempt from civil service. This bill provides that, until
January 1, 2003, each commissioner may instead have up to two
advisers who are exempt from civil service and would prohibit
the total number of advisers exempt from civil service from
exceeding ten. In 1996, the Legislature passed SB 960
[(Leonard), Chapter 856, Statutes of 1996] which significantly
increased commissioner workload and participation in hearings.
Increasing the number of civil service-exempt advisers would
help enable commissioners to handle their increased workload.
6)Increasing the number of civil service-exempt commission
advisers would make the commissioners less reliant on the
professional staff at CPUC, and would likely result in CPUC
decisions reflecting more of the values and judgments of the
commissioners and less those of professional staff. Opponents
of this bill argue that increased reliance on short-term
political appointees would make political considerations more
important than market facts, economic facts, and
customer-service facts that constitute the record in
commission proceedings.
7)At a recent meeting, CPUC voted to support this measure.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission
Coalition of California Utility Employees
Southern California Gas workers Council
California State Association of Electrical Workers
California State Pipe Trades Council
Western States Council of Sheet Metal Workers
Southern California Edison
Opposition
Association of California State Attorneys and Administrative
Judges
Professional Engineers in California Government
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083