Bill Text: CA AB1072 | 2019-2020 | Regular Session | Amended

California Assembly Bill 1072 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Public Utilities Commission: audits and reviews.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2019-10-02 - Chaptered by Secretary of State - Chapter 448, Statutes of 2019. [AB1072 Detail]

Download: California-2019-AB1072-Amended.html

Amended IN Assembly March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1072

Introduced by Assembly Member Patterson

February 21, 2019

An act to amend ~~Section 321~~ Sections 314.5 and 314.6 of the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL'S DIGEST

AB 1072, as amended, Patterson. Public Utilities Commission: ~~public participation.~~ audits and reviews.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities and can establish its own procedures, subject to the statutory restrictions and constitutional requirements of due process. Existing law requires the commission to appoint an executive director, who, among other things, is responsible for the commission’s executive and administrative duties, organizes, coordinates, supervises, and directs the operations and affairs of the commission, and expedites all matters within the commission’s jurisdiction. Existing law requires the commission to appoint a public advisor and establish an office of the public advisor, both of which are required, among other things, to perform specified duties relating to public participation in commission proceedings. Existing law requires the public advisor and executive director to publicize the commission’s programs for encouraging and supporting participation in the commission’s proceedings. utilities, including electrical, gas, heat, telegraph, telephone, and water corporations. The Public Utilities Act requires the commission to inspect and audit the books and records of each electrical, gas, heat, telegraph, telephone, and water corporation for regulatory and tax purposes. The act requires an inspection and audit to be done at least every 3 years if the utility has over 10,000 customers and at least every 5 years if the utility has 10,000 or fewer customers. The act alternatively authorizes the commission to inspect and audit the books and records of those utilities in accordance with the commission authorized general rate case cycle, if that cycle provides for a rate case no less frequently than once every 5 years. The act provides that an audit conducted in connection with a rate proceeding is deemed to fulfill these requirements.

This bill would require the commission to review or audit, rather than inspect and audit, the books and records of each electrical, gas, heat, telegraph, telephone, and water corporation for regulatory purposes, rather than regulatory and tax purposes. The bill would require that the review or audit comport with the Generally Accepted Auditing Standards prescribed by the American Institute of Certified Public Accountants, as described. The bill would provide that either a review or audit conducted in connection with a rate proceeding by the applicable industry division within the commission or by the Public Advocate’s Office of the commission, rather than any audit in connection with a rate proceeding, shall be deemed to fulfill these requirements.
Existing law authorizes the commission to conduct financial and performance audits of any entity or program created by any order, decision, motion, settlement, or other action of the commission and authorizes the commission to conduct additional followup work that is related to any findings and recommendations related to the audit. Existing law requires that the audit be completed in a timely manner consistent with the Generally Accepted Government Auditing Standards.
This bill would alternatively authorize the commission to conduct financial and performance reviews of any entity or program created by any order, decision, motion, settlement, or other action of the commission and authorize the commission to conduct additional followup work that is related to any findings and recommendations related to the review. The bill would require that the review or audit be completed in a timely manner consistent with the Generally Accepted Auditing Standards.
This bill would specify that the duty of the public advisor and executive director to publicize those programs includes publishing information about those programs on the commission’s internet website.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 314.5 of the Public Utilities Code is amended to read:

314.5.

(a) The commission shall ~~inspect and~~ review or audit the books and records for regulatory ~~and tax~~ purposes as follows:

(1) At least once every three years in the case of every electrical, gas, heat, telegraph, telephone, and water corporation serving over 10,000 customers or in accordance with the commission authorized general rate case cycle, if that cycle provides for a rate case no less frequently than once every five years.

(2) At least once every five years in the case of every electrical, gas, heat, telegraph, telephone, and water corporation serving 10,000 or fewer customers.

(b) An A review or audit conducted by the applicable industry division within the commission, or by the Public Advocate’s Office of the commission, in connection with a rate proceeding shall be deemed to fulfill the requirements of this section.

(c) The review or audit shall comport with the Generally Accepted Auditing Standards prescribed by the American Institute of Certified Public Accountants. The Generally Accepted Auditing Standards comprise 10 general, fieldwork, and reporting standards that cover technical proficiency, independence, professional care, work plans, understanding of the audited entity, and appropriate auditing evidence and procedures.
~~(c)~~

(d) The commission shall post reports of ~~the inspections~~ reviews and audits and other pertinent information on its ~~Internet Web site.~~ internet website.

SEC. 2.

Section 314.6 of the Public Utilities Code is amended to read:

314.6.

(a) The commission may conduct financial and performance reviews or audits of any entity or program created by any order, decision, motion, settlement, or other action of the commission.

(b) The commission shall complete any review or audit in a timely manner consistent with the Generally Accepted ~~Government Auditing Standards.~~ Auditing Standards, as prescribed by the American Institute of Certified Public Accountants.

(c) After performing an a review or audit pursuant to this section, the commission may conduct additional followup work that is related to any findings and recommendations related to the review or audit.

SECTION 1.Section 321 of the Public Utilities Code is amended to read:
321.
(a)The commission shall appoint a public advisor and establish an office of the public advisor, including a separate office in the Los Angeles office of the commission. The commission may employ staff as necessary to carry out the duties of the office of the public advisor. The office of the public advisor shall assist members of the public and ratepayers who desire to testify before or present information to the commission in any hearing or proceeding of the commission. The public advisor shall advise the commission on procedural matters relating to public participation in proceedings of the commission.
(b)The public advisor and executive director shall publicize the commission’s programs for encouraging and supporting participation in the commission’s proceedings, including publishing information about those programs on the commission’s internet website.
(c)The public advisor shall receive complaints and comments from members of the public concerning how the commission is carrying out its functions. The public advisor shall maintain the confidentiality of the identity of a member of the public who makes a complaint or comment unless the member of the public expressly indicates a desire to communicate that identity to the commission. The public advisor shall assess the nature of substantive complaints and comments from members of the public and take them into consideration when analyzing and recommending options for resolution of the matters underlying those complaints and comments.