BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 33
                                                          Page  1

Date of Hearing:   August 18, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

            SB 33 (Peace) - As Amended: July 7, 1999 

Policy Committee:                              Utilities and  
Commerce     Vote:                             11-1

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:            

  SUMMARY  :

This bill:

1)Transfers authority for designating the president of the  
  Public Utilities Commission (PUC) from the commission to the  
  governor.

2)Requires the president to direct the commission staff except  
  those staff that represent the interests of public utility  
  customers.

3)Authorizes the governor, until January 2003, to appoint up to  
  two advisors (instead of one) for each member of the  
  five-member commission and requires the PUC to seek funding  
  for the additional advisors in the Budget Act.

  FISCAL EFFECT  :

The PUC estimates annual special fund costs of about $400,000  
for the five additional advisors.

  COMMENTS  :

  Background and Purpose  .  Numerous provisions have been  
established to preserve the PUC's independence.  PUC members are  
appointed by the governor for staggered six-year terms, and can  
be removed from office only for certain limited reasons by a  
two-thirds vote of both houses of the Legislature.  This  
prevents an incoming governor from immediately appointing a  
majority of the PUC, and enables the PUC to maintain some  
measure of independence from the state's chief executive.








                                                          SB 33
                                                          Page  2


The PUC'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 the PUC's  
lack of accountability.  This bill is intended to increase the  
PUC's accountability to the incumbent governor by providing the  
chief executive with the authority to designate the president of  
PUC.  In addition, the author's office indicates that increasing  
the number of civil service-exempt commission advisers from 5 to  
10 would make the commissioners less reliant on the professional  
staff at PUC such that PUC decisions might better reflect the  
values and judgments of the commissioners and less those of  
professional staff.

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