California 2019 2019-2020 Regular Session

California Assembly Bill AB560 Amended / Bill

Filed 03/07/2019

                    Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 560Introduced by Assembly Member SantiagoFebruary 13, 2019An act relating to public utilities. An act to add Section 468 to the Public Utilities Code, relating to union organizing.LEGISLATIVE COUNSEL'S DIGESTAB 560, as amended, Santiago. Public utilities: rates. unionization.The California Constitution establishes the Public Utilities Commission, with regulatory jurisdiction over all public utilities. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires that any expense resulting from a bonus paid to an executive officer, as defined, of a public utility that has ceased to pay its debts in the ordinary course of business, be borne by the shareholders of the public utility and prohibits any expense from being recovered in rates.This bill would require that any expense incurred by a public utility in assisting or deterring union organizing, as defined, is not recoverable either directly or indirectly in the utilitys rates and is required to be borne exclusively by the shareholders of the public utility.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 are within the act and require action by the commission to implement its requirements, the bill would impose a state-mandated local program by creating the crime of violating that commission action.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.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities.This bill would state the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 468 is added to the Public Utilities Code, to read:468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.SEC. 2. 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.SECTION 1.It is the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.

 Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 560Introduced by Assembly Member SantiagoFebruary 13, 2019An act relating to public utilities. An act to add Section 468 to the Public Utilities Code, relating to union organizing.LEGISLATIVE COUNSEL'S DIGESTAB 560, as amended, Santiago. Public utilities: rates. unionization.The California Constitution establishes the Public Utilities Commission, with regulatory jurisdiction over all public utilities. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires that any expense resulting from a bonus paid to an executive officer, as defined, of a public utility that has ceased to pay its debts in the ordinary course of business, be borne by the shareholders of the public utility and prohibits any expense from being recovered in rates.This bill would require that any expense incurred by a public utility in assisting or deterring union organizing, as defined, is not recoverable either directly or indirectly in the utilitys rates and is required to be borne exclusively by the shareholders of the public utility.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 are within the act and require action by the commission to implement its requirements, the bill would impose a state-mandated local program by creating the crime of violating that commission action.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.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities.This bill would state the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES 

 Amended IN  Assembly  March 07, 2019

Amended IN  Assembly  March 07, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 560

Introduced by Assembly Member SantiagoFebruary 13, 2019

Introduced by Assembly Member Santiago
February 13, 2019

An act relating to public utilities. An act to add Section 468 to the Public Utilities Code, relating to union organizing.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 560, as amended, Santiago. Public utilities: rates. unionization.

The California Constitution establishes the Public Utilities Commission, with regulatory jurisdiction over all public utilities. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires that any expense resulting from a bonus paid to an executive officer, as defined, of a public utility that has ceased to pay its debts in the ordinary course of business, be borne by the shareholders of the public utility and prohibits any expense from being recovered in rates.This bill would require that any expense incurred by a public utility in assisting or deterring union organizing, as defined, is not recoverable either directly or indirectly in the utilitys rates and is required to be borne exclusively by the shareholders of the public utility.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 are within the act and require action by the commission to implement its requirements, the bill would impose a state-mandated local program by creating the crime of violating that commission action.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.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities.This bill would state the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.

The California Constitution establishes the Public Utilities Commission, with regulatory jurisdiction over all public utilities. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires that any expense resulting from a bonus paid to an executive officer, as defined, of a public utility that has ceased to pay its debts in the ordinary course of business, be borne by the shareholders of the public utility and prohibits any expense from being recovered in rates.

This bill would require that any expense incurred by a public utility in assisting or deterring union organizing, as defined, is not recoverable either directly or indirectly in the utilitys rates and is required to be borne exclusively by the shareholders of the public utility.

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 are within the act and require action by the commission to implement its requirements, the bill would impose a state-mandated local program by creating the crime of violating that commission action.

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.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities.



This bill would state the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 468 is added to the Public Utilities Code, to read:468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.SEC. 2. 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.SECTION 1.It is the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.

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

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

SECTION 1. Section 468 is added to the Public Utilities Code, to read:468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.

SECTION 1. Section 468 is added to the Public Utilities Code, to read:

### SECTION 1.

468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.

468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.

468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.



468. (a) For purposes of this section, expense incurred by a public utility in assisting or deterring union organizing means costs incurred in communicating with employees, or employees of the utilitys contractors, in an effort to persuade them to join or support, or to not join or support, a labor organization.

(b) Any expense incurred by a public utility in assisting or deterring union organizing shall not be recoverable either directly or indirectly in the utilitys rates and shall be borne exclusively by the shareholders of the public utility.

SEC. 2. 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.

SEC. 2. 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.

SEC. 2. 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.

### SEC. 2.



It is the intent of the Legislature to enact legislation to prohibit the use of ratepayer moneys for anti-union activities.