California 2019 2019-2020 Regular Session

California Assembly Bill AB560 Enrolled / Bill

Filed 09/06/2019

                    Enrolled  September 06, 2019 Passed IN  Senate  September 03, 2019 Passed IN  Assembly  September 05, 2019 Amended IN  Senate  June 20, 2019 Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 560Introduced by Assembly Member Santiago(Coauthor: Assembly Member Gloria)February 13, 2019An act to add Section 468 to the Public Utilities Code, relating to union organizing.LEGISLATIVE COUNSEL'S DIGESTAB 560, Santiago. Public utilities: 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 such 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 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 public 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 public 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.

 Enrolled  September 06, 2019 Passed IN  Senate  September 03, 2019 Passed IN  Assembly  September 05, 2019 Amended IN  Senate  June 20, 2019 Amended IN  Assembly  March 07, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 560Introduced by Assembly Member Santiago(Coauthor: Assembly Member Gloria)February 13, 2019An act to add Section 468 to the Public Utilities Code, relating to union organizing.LEGISLATIVE COUNSEL'S DIGESTAB 560, Santiago. Public utilities: 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 such 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Enrolled  September 06, 2019 Passed IN  Senate  September 03, 2019 Passed IN  Assembly  September 05, 2019 Amended IN  Senate  June 20, 2019 Amended IN  Assembly  March 07, 2019

Enrolled  September 06, 2019
Passed IN  Senate  September 03, 2019
Passed IN  Assembly  September 05, 2019
Amended IN  Senate  June 20, 2019
Amended IN  Assembly  March 07, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

 Assembly Bill 

No. 560

Introduced by Assembly Member Santiago(Coauthor: Assembly Member Gloria)February 13, 2019

Introduced by Assembly Member Santiago(Coauthor: Assembly Member Gloria)
February 13, 2019

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, Santiago. Public utilities: 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 such 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.

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 such 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.

## 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 public 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 public 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.

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 public 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 public 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 public 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 public 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 public 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 public 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 public 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 public 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 public 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 public 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.