BILL NUMBER: SB 660	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hueso

                        FEBRUARY 27, 2015

   An act to amend Section 1701.1 of the Public Utilities Code,
relating to the Public Utilities Commission.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 660, as introduced, Hueso. Public Utilities Commission:
proceedings: ex parte communications.
   The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities. The
California Constitution authorizes the commission to establish rules
for all public utilities, subject to control by the Legislature, and
to establish its own procedures, subject to statutory limitations or
directions and constitutional requirements of due process.
   The Public Utilities Act requires the commission to determine
whether a proceeding requires a hearing and, if so, to determine
whether the matter requires a quasi-legislative, an adjudication, or
a ratesetting hearing. For these purposes, quasi-legislative cases
are cases that establish policy rulemakings and investigations which
may establish rules affecting an entire industry, adjudication cases
are enforcement cases and complaints except those challenging the
reasonableness of any rates or charges, and ratesetting cases are
cases in which rates are established for a specific company,
including general rate cases, performance-based ratemaking, and other
ratesetting mechanisms. Existing law requires the commission, upon
initiating a hearing, to assign one or more commissioners to oversee
the case and an administrative law judge, where appropriate. The act
regulates communications in hearings before the commission and
defines "ex parte communication" to mean any oral or written
communication between a decisionmaker and a person with an interest
in a matter before the commission concerning substantive, but not
procedural, issues that does not occur in a public hearing, workshop,
or other public proceeding, or on the official record of the
proceeding on the matter. Existing law requires the commission, by
regulation, to adopt and publish requirements for written reporting
of ex parte communications and appropriate sanctions for
noncompliance with any rule proscribing ex parte communications. The
act provides that ex parte communications are prohibited in
adjudication cases and are prohibited in ratesetting cases, with
certain exceptions. The act requires that ex parte communications be
permitted in quasi-legislative cases, without any restrictions. The
commission's Rules of Practice and Procedure define a "decisionmaker"
as any commissioner, the Chief Administrative Law Judge, any
Assistant Chief Administrative Law Judge, the assigned administrative
law judge, or the Law and Motion Administrative Law Judge. The Rules
of Practice and Procedure provide that communications with a
commissioners' personal advisors are subject to all of the
restrictions on, and reporting requirements applicable to, ex parte
communications, except that oral communications with an advisor in
ratesetting proceedings are permitted without the restrictions.
   This bill would require that the commission, by rule, adopt and
publish a definition of decisionmakers, that would be required to
include commissioners, each advisor to a commissioner, and an
administrative law judge assigned to the proceeding, thereby making
the restrictions on ex parte communications applicable to an advisor
to a commissioner in a ratesetting proceeding.
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by expanding the application of a
crime.
   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: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 1701.1 of the Public Utilities Code is amended
to read:
   1701.1.  (a) The commission, consistent with due process, public
policy, and statutory requirements, shall determine whether a
proceeding requires a hearing. The commission shall determine whether
the matter requires a quasi-legislative, an adjudication, or a
ratesetting hearing. The commission's decision as to the nature of
the proceeding shall be subject to a request for rehearing within 10
days of the date of that decision. If that decision is not appealed
to the commission within that time period it shall not be
subsequently subject to judicial review. Only those parties who have
requested a rehearing within that time period shall subsequently have
standing for judicial review and that review shall only be available
at the conclusion of the proceeding. The commission shall render its
decision regarding the rehearing within 30 days. The commission
shall establish  regulations   rules 
regarding ex parte communication on case categorization issues.
   (b) The commission upon initiating a hearing shall assign one or
more commissioners to oversee the case and an administrative law
judge where appropriate. The assigned commissioner shall schedule a
prehearing conference. The assigned commissioner shall prepare and
issue by order or ruling a scoping memo that describes the issues to
be considered and the applicable timetable for resolution.
   (c) (1) Quasi-legislative cases, for purposes of this article, are
cases that establish policy, including, but not limited to,
rulemakings and investigations which may establish rules affecting an
entire industry.
   (2) Adjudication cases, for purposes of this article, are
enforcement cases and complaints except those challenging the
reasonableness of any rates or charges as specified in Section 1702.
   (3) Ratesetting cases, for purposes of this article, are cases in
which rates are established for a specific company, including, but
not limited to, general rate cases, performance-based ratemaking, and
other ratesetting mechanisms. 
   (4) 
    (d)   (1)    "Ex parte communication,"
for purposes of this article, means any oral or written
communication between a decisionmaker and a person with an interest
in a matter before the commission concerning substantive, but not
procedural issues, that does not occur in a public hearing, workshop,
or other public proceeding, or on the official record of the
proceeding on the matter. "Person with an interest," for purposes of
this article, means any of the following:
   (A) Any applicant, an agent or an employee of the applicant, or a
person receiving consideration for representing the applicant, or a
participant in the proceeding on any matter before the commission.
   (B) Any person with a financial interest, as described in Article
1 (commencing with Section 87100) of Chapter 7 of Title 9 of the
Government Code, in a matter before the commission, or an agent or
employee of the person with a financial interest, or a person
receiving consideration for representing the person with a financial
interest.
   (C) A representative acting on behalf of any civic, environmental,
neighborhood, business, labor, trade, or similar organization who
intends to influence the decision of a commission member on a matter
before the commission. 
   The 
    (2)     The  commission shall by
 regulation   rule  adopt and publish a
definition of decisionmakers and persons for purposes of this
section, along with any requirements for written reporting of ex
parte communications and appropriate sanctions for noncompliance with
any rule proscribing ex parte communications. The 
regulation   rules  shall provide that reportable
communications shall be reported by the party, whether the
communication was initiated by the party or the decisionmaker. 
The definition of decisionmakers shall include, but is not limited
to, commissioners, each advisor to a commissioner appointed pursuant
to Section 309.1, and an administrative law judge assigned to the
proceeding.  Communications shall be reported within three
working days of the communication by filing a "Notice of Ex Parte
Communication" with the commission in accordance with the procedures
established by the commission for the service of that notice. The
notice shall include the following information: 
   (i) 
    (A)  The date, time, and location of the communication,
 and  whether it was oral, written, or a 
combination.   combination, and the communications
medium utilized.  
   (ii) 
    (B)  The identity of the recipient and the person
initiating the communication, as well as the identity of any persons
present during the communication. 
   (iii) 
    (C)  A description of the party's, but not the
decisionmaker's, communication and its content, to which shall be
attached a copy of any written material or text used during the
communication.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.