SB 1217 Senate Bill - INTRODUCED

BILL NUMBER: SB 1217	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Polanco

                        FEBRUARY 26, 1999

   An act to add Section 381.5 to, and to add Chapter 1.5 (commencing
with Section 270) to Part 1 of Division 1 of, the Public Utilities
Code, relating to public utilities, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1217, as introduced, Polanco.  Public Utilities Commission:
advisory boards:  electrical restructuring:  public benefit programs.

   (1) Existing law provides for various programs relating to
telephone corporations to be administered by the Public Utilities
Commission, and paid for in the utility rates authorized by the
commission.
   This bill would, under the Public Utilities Act, create 6 advisory
boards to advise the commission regarding the implementation,
development, and administration of specified programs, and to carry
out the programs pursuant to the commission's direction, control, and
approval.  The bill would require the commission to determine the
number and qualifications of the members of each advisory board, as
specified, and would prescribe certain matters of organization and
procedure for each advisory board.  The bill would require the boards
to submit an annual budget to the commission for approval, and a
report describing the activities of the board, as prescribed.  The
bill would create a fund in the State Treasury for each advisory
board.  The bill would require telephone corporations to submit to
the commission approved rate revenues for transfer by the commission
to the Controller for deposit in the appropriate fund as created by
the bill.  The bill would require any unexpended revenues collected
prior to the operative date of the bill to be deposited in the
appropriate fund, as specified.  The bill would continuously
appropriate the funds in each fund, as specified, thus making an
appropriation.  The bill would require the commission to conduct
financial audits of the revenues for each of the funds, and to
conduct compliance audits with regard to each program, as specified.
Because, under the act, a violation of those provisions would be a
crime, the bill would impose a state-mandated local program by
creating new crimes.
   (2) The act requires the commission to order specified electrical
corporations to collect and spend certain funds for prescribed public
benefit programs.  The act specifically requires cost-effective
energy efficiency and conservation activities to be funded by San
Diego Gas and Electric Company, Southern California Edison Company,
and Pacific Gas and Electric Company at specified levels, commencing
January 1, 1998, through December 31, 2001.
   This bill, notwithstanding the above provision, would require the
San Diego Gas and Electric Company, Southern California Edison
Company, Pacific Gas and Electric Company, Southern California Gas
Company, and any other public utility designated by the commission,
to administer those activities, as prescribed by the commission,
through December 31, 2001.  The bill would require the commission,
before January 1, 2002, to study the feasibility of administering the
activities though a nonprofit public benefit corporation.  Because a
violation of the act by a public utility is a crime, this bill would
impose a state-mandated local program by creating a new crime.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  Chapter 1.5 (commencing with Section 270) is added to
Part 1 of Division 1 of the Public Utilities Code, to read:

      CHAPTER 1.5.  ADVISORY BOARDS

   270.  (a) The following funds are hereby created in the State
Treasury:
   (1) The California High-Cost Fund-A Administrative Committee Fund.

   (2) The California High-Cost Fund-B Administrative Committee Fund.

   (3) The Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
   (4) The Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
   (5) The Payphone Service Providers Committee Fund.
   (6) The California Teleconnect Fund Administrative Committee Fund.

   (b) Moneys in the funds may only be expended pursuant to this
chapter.
   (c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity.
   271.  For each advisory board created pursuant to this chapter all
of the following are applicable:
   (a) The commission shall establish the number of, and
qualifications for, persons to serve as members of each board, and
shall appoint the members of each board.  In determining the
qualifications of persons who will serve as members of each board,
the commission shall consider the purpose of the program, and shall
attempt to achieve balanced public participation, for each board.
The membership of each board shall reflect, to the extent possible,
and consistent with existing law, the ethnic and gender diversity of
the state.
   (b) Each board shall determine, subject to approval by the
commission, the time, location, and number of monthly meetings for
each board.
   (c) A majority of the number of members of each board constitutes
a quorum.
   (d) A board cannot act at a meeting without the presence of a
quorum.
   (e) The affirmative vote of a majority of those members present at
the meeting of a board is necessary in order to pass any motion,
resolution, or measure.
   (f) The commission shall determine for each board whether the
board members shall receive expense reimbursement pursuant to Section
19820 of the Government Code and a per diem allowance, as specified
in Section 11564.5 of the Government Code, or as established by the
commission.  Each member of a board who is not a commission or public
utility employee, or who is not otherwise compensated by an employer
for service on the board, shall be entitled to make a claim for and
to receive a per diem allowance, if authorized by the commission.
Each member of a board who is not a public utility employee, or who
is not otherwise reimbursed by an employer for expenses incurred when
serving on the board, shall be entitled to make a claim for and to
receive expense reimbursement, if authorized by the commission. The
commission shall allow all reasonable expense and per diem claims.
The payments in each instance shall be made only from the fund that
supports the activities of the board and shall be subject to the
availability of money in that fund.  The claims shall be filed by the
board with the commission.
   273.  Each advisory board created pursuant to this chapter shall
do both of the following:
   (a) Submit an annual budget to the commission.  Within 90 calendar
days after receiving a board's annual budget, the commission shall
either accept, accept with conditions, or reject the submitted
budget.
   (b) Notwithstanding Section 7550.5 of the Government Code, submit,
in accordance with procedures established by the commission, a
report that shall describe the activities of the board during the
prior reporting period.  The report shall be submitted on an annual
or more frequent basis, as ordered by the commission.
   274.  The commission may, whenever it determines it to be
necessary, conduct financial audits of the revenues required to be
collected and submitted to the commission for each of the funds
specified in Section 270. The commission may, whenever it determines
it to be necessary, conduct compliance audits on the compliance with
commission orders with regard to each program subject to this
chapter.  The commission shall conduct a financial and compliance
audit at least once every three years.  The first three-year period
for a financial and compliance audit commences on January 1, 2000.
The second and subsequent three-year periods for financial audits
commence three years after the completion of the prior financial
audit.  The second and subsequent three-year periods for compliance
audits commence three years after the completion of the prior
compliance audit.  The commission may contract with the Bureau of
State Audits or the Department of Finance for all necessary auditing
services.  All costs for audits shall be paid from the fund that
supports the activities of the board audited and shall be subject to
the availability of money in that fund.
   275.  (a) There is hereby created the California High-Cost Fund-A
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to small
independent telephone corporations providing local exchange services
in high-cost rural and small metropolitan areas in the state to
create fair and equitable local rate structures, as provided for in
Section 739.3, and to carry out the program pursuant to the
commission's direction, control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
California High-Cost Fund-A Administrative Committee Fund.  All
interest earned by moneys in the fund shall be deposited in the fund.
  Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-A Administrative Committee Fund.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the California High-Cost Fund-A Administrative Committee Fund are
hereby continuously appropriated to the commission, without regard to
fiscal years, to be utilized exclusively by the commission for the
program specified in subdivision (a), including all costs of the
board and the commission associated with the administration and
oversight of the program and the fund.
   276.  (a) There is hereby created the California High-Cost Fund-B
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to
telephone corporations providing local exchange services in high-cost
areas in the state to create fair and equitable local rate
structures, as provided for in Section 739.3, and to carry out the
program pursuant to the commission's direction, control, and
approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
California High-Cost Fund-B Administrative Committee Fund.  All
interest earned by moneys in the fund shall be deposited in the fund.
  Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-B Administrative Committee Fund.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the California High-Cost Fund-B Administrative Committee Fund are
hereby continuously appropriated to the commission, without regard to
fiscal years, to be utilized exclusively by the commission for the
program specified in subdivision (a), including all costs of the
board and the commission associated with the administration and
oversight of the program and the fund.
   277.  (a) There is hereby created the Universal Lifeline Telephone
Service Trust Administrative Committee, which is an advisory board
to advise the commission regarding the development, implementation,
and administration of a program to ensure lifeline telephone service
is available to the people of the state, as provided for in Article 8
(commencing with Section 871) of Chapter 4 of Part 1 of Division 1,
and to carry out the program pursuant to the commission's direction,
control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
Universal Lifeline Telephone Service Trust Administrative Committee
Fund.  All interest earned by moneys in the fund shall be deposited
in the fund.  Any unexpended revenues collected prior to the
operative date of this section shall be submitted to the commission,
and the commission shall transfer those moneys to the Controller for
deposit in the Universal Lifeline Telephone Service Trust
Administrative Committee Fund.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the Universal Lifeline Telephone Service Trust Administrative
Committee Fund are hereby continuously appropriated to the
commission, without regard to fiscal years, to be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   278. (a) There is hereby created the Deaf and Disabled
Telecommunications Program Administrative Committee, which is an
advisory board to advise the commission regarding the development,
implementation, and administration of programs to provide specified
telecommunications services and equipment to persons in this state
who are deaf or disabled, as provided for in Sections 2881, 2881.1,
and 2881.2, and to carry out the programs pursuant to the commission'
s direction, control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
Deaf and Disabled Telecommunications Program Administrative Committee
Fund.  All interest earned by moneys in the fund shall be deposited
in the fund.  Any unexpended revenues collected prior to the
operative date of this section shall be submitted to the commission,
and the commission shall transfer those moneys to the Controller for
deposit in the Deaf and Disabled Telecommunications Program
Administrative Committee Fund.  In addition, those revenues that are
collected pursuant to subdivision (d) of Section 2881 shall be
accounted for separately, as required by subdivision (b) of Section
2881.2, and deposited in the fund created by the commission pursuant
to subdivision (b) of Section 2881.2.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the Deaf and Disabled Telecommunications Program Administrative
Committee Fund are hereby continuously appropriated to the
commission, without regard to fiscal years, to be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   279.  (a) There is hereby created the Payphone Service Providers
Committee, which is an advisory board to advise the commission
regarding the development, implementation, and administration of
programs to educate payphone service providers, ensure compliance
with the commission's requirements for payphone operations, and
educate consumers on matters related to payphones, as provided for in
commission Decision 90-06-018, and to provide for the placement of
telecommunications devices capable of servicing the needs of the deaf
or the hearing-impaired in existing buildings and public
accommodations, as specified in subdivision (a) of Section 2881.2.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
Payphone Service Providers Committee Fund.  All interest earned by
moneys in the fund shall be deposited in the fund.  Any unexpended
revenues collected prior to the operative date of this section shall
be submitted to the commission, and the commission shall transfer
those moneys to the Controller for deposit in the Payphone Service
Providers Committee Fund.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the Payphone Service Providers Committee Fund are hereby
continuously appropriated to the commission, without regard to fiscal
years, to be utilized exclusively by the commission for the program
specified in subdivision (a), including all costs of the board and
the commission associated with the administration and oversight of
the program and the fund.
   280.  (a) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to advance universal service by providing
discounted rates to qualifying schools, libraries, hospitals, health
clinics, and community organizations, consistent with Chapter 278 of
the Statutes of 1994, and to carry out the program pursuant to the
commission's direction, control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission.  The commission shall
transfer the moneys received to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund.  All
interest earned by moneys in the fund shall be deposited in the fund.
  Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund.
   (c) Notwithstanding Section 13340 of the Government Code, moneys
in the California Teleconnect Fund Administrative Committee Fund are
hereby continuously appropriated to the commission, without regard to
fiscal years, to be utilized exclusively by the commission for the
program specified in subdivision (a), including all costs of the
board and the commission associated with the administration and
oversight of the program and the fund.
   281.  Any revenues that are deposited in funds created pursuant to
this chapter shall not be used by the state for any purpose other
than as specified in this chapter.
  SEC. 2.  Section 381.5 is added to the Public Utilities Code, to
read:
   381.5.  Notwithstanding paragraph (1) of subdivision (c) of
Section 381, San Diego Gas and Electric Company, Southern California
Edison Company, Pacific Gas and Electric Company, Southern California
Gas Company, and any other public utility designated by the
commission, shall administer the cost-effective energy efficiency and
conservation activities described in that paragraph, as prescribed
by the commission, through December 31, 2001.  Before January 1,
2002, the commission shall study the feasibility of administering
those activities through a nonprofit public benefit corporation.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.