BILL ANALYSIS
SB 33
Page 1
SENATE THIRD READING
SB 33 (Peace)
As Amended July 7, 1999
Majority vote
SENATE VOTE : 26-9
UTILITIES AND COMMERCE 11-1
APPROPRIATIONS 14-7
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|Ayes:|Wright, Pescetti, |Ayes:|Migden, Cedillo, Davis, |
| |Calderon, Campbell, | |Hertzberg, Kuehl, Papan, |
| |Cardenas, Maddox, | |Romero, Keeley, |
| |Mazzoni, Thomson, Reyes, | |Steinberg, Thomson, |
| |Vincent, Wesson | |Wesson, Wiggins, Wright, |
| | | |Aroner |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Frusetta |Nays:|Brewer, Ackerman, |
| | | |Ashburn, Campbell, |
| | | |Maldonado, Runner, Zettel |
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SUMMARY : 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
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exceeding 10.
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.
FISCAL EFFECT : CPUC estimates annual special fund costs of
about $400,000 for the five additional advisors.
COMMENTS : Under existing law, the president of CPUC is elected
by the members of CPUC. This bill would transfer authority for
designating the president of CPUC from CPUC to the Governor.
Additionally, this bill would require the president to direct
CPUC staff, including CPUC attorney and executive director,
except when directed otherwise by a vote of CPUC. Staff
representing ratepayers in CPUC proceedings would be excluded
from these provisions.
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.
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. CPUC
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executive director, attorney, and most members of CPUC staff,
would be directed by the gubernatorially-appointed president.
Existing law permits each commissioner to have one adviser who
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 10. 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.
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.
At a recent meeting, CPUC voted to support this measure.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
FN: 0002929