BILL NUMBER: SB 1217 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 6, 1999
AMENDED IN SENATE APRIL 21, 1999
INTRODUCED BY Senator Polanco
FEBRUARY 26, 1999
An act to add Section 381.5 Sections
381.5, 382.5, and 382.7 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 amended, 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 described above that are
non-low-income 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.
The bill would require the Department of Community Services and
Development, commencing June 1, 2000, to administer specified energy
efficiency programs provided to low-income gas and
electricity customers, as prescribed, and, for those purposes, to
contract with the nonprofit and for-profit contractors under contract
with the San Diego Gas and Electric Company, Southern California
Edison Company, Pacific Gas and Electric Company, and Southern
California Gas Company as of April 1, 1999. The bill would
require the department, for the purpose of the California Alternative
Rates for Energy Program, to contract with nonprofit and for-profit
contractors, taking into account cost, experience, and other
attributes of a contractor that the department determines will
benefit local communities. The bill would require the Bureau of
State Audits, on or before July 1, 2002, and every 2 years
thereafter, to conduct a performance and financial audit of the
administration by the department of the low-income energy efficiency
programs and the California Alternative Rates for Energy Program, as
prescribed. The bill would make related legislative findings and
declarations and statements of Legislative intent.
(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. (a) 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 that are
non-low-income activities, 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.
381.5. (a) The Legislature finds and declares all of the
following:
(1) A low-income energy efficiency program, designed to assist
low-income households, should serve as one of the many existing
programs operated within the Department of Community Services and
Development, including, but not limited to, food and nutrition, job
training, employment, education, housing, and emergency assistance
programs.
(2) The Department of Community Services and Development, for many
years, has administered low-income energy assistance and
weatherization programs funded by the federal Department of Health
and Human Services and the federal Department of Energy.
(3) The stated mission of the Department of Community Services and
Development is to develop resources that California's low-income
communities need to move from poverty to self-sufficiency by
collaboration with its network of community service providers and
other public and private organizations. Those community service
organizations and agencies have demonstrated their capacity to offer
a variety of services to assist the Department of Community Services
and Development in achieving its mission objectives.
(b) It is the intent of the Legislature to do both of the
following:
(1) To protect and strengthen the current network of community
service providers by transferring low-income energy efficiency
programs and the California Alternative Rates for Energy Program to
the Department of Community Services and Development, thereby
integrating low-income energy efficiency programs with the range of
services presently administered by the Department of Community
Services and Development.
(2) To ensure that the administration of low-income energy
efficiency programs is not accomplished through creation of an
additional administrative entity, which would contribute to the
needless growth of government.
(c) It is the further intent of the Legislature that any
evaluation of the effectiveness of low-income energy efficiency
programs shall be based not solely on cost criteria, but also on the
degree to which the provision of services allows maximum program
accessibility to quality programs to low-income communities by
agencies that have demonstrated performance in effectively delivering
services to those communities.
(b)
(d) (1) Commencing June 1, 2000, the Department of Community
Services and Development shall administer the energy efficiency
programs provided to low-income gas and electricity
customers, including, but not limited to, weatherization, appliance
repair and replacement, energy education, and the California
Alternative Rates for Energy Program.
(c) (1)
(2) The Department of Community Services and Development,
for the purposes of administrating the programs described in
subdivision (b) paragraph (1) , shall contract
with the nonprofit and for-profit contractors under contract with the
San Diego Gas and Electric Company, Southern California Edison
Company, Pacific Gas and Electric Company, and Southern California
Gas Company as of April 1, 1999. To ensure direct ratepayer
benefit within each utility service area, the Department of Community
Services and Development shall ensure that any funds collected by
each utility in support of low-income energy efficiency programs are
expended within the service territory of that utility.
(2) Except as specified in paragraph (3), the policies
(3) Except as specified in paragraph (4), the policies and
procedures, and program eligibility, for the low-income energy
efficiency programs shall be those in effect on April 1, 1999.
(3)
(4) The Department of Community Services and Development may
modify the policies and procedures and program eligibility described
in paragraph (2), after considering public input.
SEC. 3. (3), and may select additional contractors
to deliver program services, or discontinue contractors, after
considering public input from a variety of sources, including, but
not limited to, representatives of low-income populations and
communities. The Department of Community Services and Development,
with respect to the selection of new service providers, shall give
special consideration to local public and private nonprofit
organizations that receive federal Low-Income Home Energy Assistance
program funds or federal Department of Energy Low-Income
Weatherization Assistance program funds, or that are currently
providing service under the low-income energy efficiency programs
described in paragraph (1).
SEC. 3. Section 382.5 is added to the Public Utilities Code, to
read:
382.5. For the purposes of implementing the outreach portions of
the California Alternative Rates for Energy Program, as required by
the commission, the Department of Community Services and Development
shall contract with nonprofit and for-profit contractors, taking into
account cost, experience, and other attributes of a contractor that
the Department of Community Services and Development determines will
benefit local communities.
SEC. 4. Section 382.7 is added to the Public Utilities Code, to
read:
382.7. On or before July 1, 2002, and every two years thereafter,
the Bureau of State Audits shall conduct a performance and financial
audit of the administration by the Department of Community Services
and Development of the low-income energy efficiency programs and the
California Alternative Rates for Energy Program pursuant to Sections
381.5 and 382.5. The audit shall consider all of the following:
(a) The efficiency of program expenditures, including, but not
limited to, an assessment of administrative costs.
(b) An evaluation of the quality and efficiency of service
delivered to low-income households.
(c) Procedures for handling complaints, including, but not limited
to, an inventory of inspection failures.
(d) An assessment of the ratio of services delivered to the
population of those persons eligible to receive services, including,
but not limited to, an assessment of barriers to the receipt of
service under the low-income energy efficiency programs.
SEC. 5. 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.