California Assembly Bill AB560

California 2019-2020 Regular Session

• Introduced: 2/13/19
• Refer: 3/7/19
• Report Pass: 3/7/19
• Refer: 3/11/19
• Report Pass: 4/3/19
• Refer: 4/3/19
• Report Pass: 4/25/19
• Refer: 4/25/19
• Report Pass: 5/8/19
• Engrossed: 5/13/19
• Refer: 5/14/19
• Refer: 5/22/19
• Report Pass: 6/18/19
• Refer: 6/18/19
• Report Pass: 6/20/19
• Refer: 6/20/19
• Report Pass: 6/26/19
• Refer: 6/26/19
• Enrolled: 9/5/19
• Chaptered: 10/2/19
• Passed: 10/2/19

Caption

Public utilities: unionization.

Impact

The bill imposes clear regulatory conditions on how public utilities manage expenses associated with labor organization. By disallowing the recovery of such costs in rates, the legislation protects consumers from potential increases in utility bills due to labor-related expenditures. This creates a new financial responsibility for shareholders, emphasizing the state's commitment to transparency in utility costs and reflecting a stance aimed at limiting the financial influence of utilities on labor negotiations.

Summary

Assembly Bill No. 560, introduced by Assemblymember Santiago, addresses the financial implications that public utilities face regarding union organization activities. The bill stipulates that any expenses incurred by public utilities aimed at assisting or deterring union organizing efforts, including communications with employees about labor organizations, are not recoverable through utility rates but must instead be borne by the shareholders of the utility. This measure reflects a significant policy shift aimed at ensuring that the costs related to union activities do not affect consumer rates.

Sentiment

General sentiment around AB 560 appears to lean positively among supporters who argue that it promotes fair utility practices and protects consumers from unwarranted cost increases. However, there may be some contention among stakeholders, particularly among utility companies who might be against incurring these additional overhead costs without a potential return on their investment. This could create tension between the goal of fair labor practices and the financial implications for utilities.

Contention

Notable points of contention revolve around the implications this bill has for shareholder investments in public utilities. Critics may argue that imposing these costs exclusively on shareholders without allowing recovery through rates could negatively impact utility operations, particularly during challenging financial periods. Additionally, the bill's provision that creates a new crime related to violations of its mandates might raise concerns around enforcement and compliance among public utilities, presenting a potential area of legal and regulatory scrutiny.