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| 1 | + | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 938Introduced by Senator Min(Coauthor: Senator Stern)January 17, 2024 An act to add Section 748.3 to the Public Utilities Code, relating to electrical and gas corporations. LEGISLATIVE COUNSEL'S DIGESTSB 938, as introduced, Min. Electrical and gas corporations: rate recovery: political activities and advertising.Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for public utilities and requires those rates and charges to be just and reasonable.This bill would prohibit, except as provided, an electrical or gas corporation from recording various expenses associated with political influence activities, as defined, or with advertising, as defined, to accounts that contain expenses that the electrical or gas corporation recovers from ratepayers. The bill would require an electrical or gas corporation to provide the commission with all information deemed necessary to monitor compliance with that prohibition. The bill also would require an electrical or gas corporation, for each business unit of the corporation that performs work associated with political influence activities or advertising, to annually file with the commission a report containing specified information. The bill would require the commission to make the report publicly available. The bill would require the commission to assess a civil penalty against an electrical or gas corporation that violates the prohibition described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing the prohibition, as provided. The bill would require 3/4 of the moneys collected pursuant to any settlement or penalties collected by the commission for a violation of the prohibition to be deposited into the Zero-Emission Equity Fund, which the bill would establish in the State Treasury. The bill would authorize the moneys in the Zero-Emission Equity Fund, upon appropriation by the Legislature, to be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. The bill would require the balance of the moneys collected, upon appropriation by the Legislature, to be used by the commission to increase resources for enforcing the bills requirements.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 above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. 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. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities.SEC. 2. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.SEC. 3. 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. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 938Introduced by Senator Min(Coauthor: Senator Stern)January 17, 2024 An act to add Section 748.3 to the Public Utilities Code, relating to electrical and gas corporations. LEGISLATIVE COUNSEL'S DIGESTSB 938, as introduced, Min. Electrical and gas corporations: rate recovery: political activities and advertising.Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for public utilities and requires those rates and charges to be just and reasonable.This bill would prohibit, except as provided, an electrical or gas corporation from recording various expenses associated with political influence activities, as defined, or with advertising, as defined, to accounts that contain expenses that the electrical or gas corporation recovers from ratepayers. The bill would require an electrical or gas corporation to provide the commission with all information deemed necessary to monitor compliance with that prohibition. The bill also would require an electrical or gas corporation, for each business unit of the corporation that performs work associated with political influence activities or advertising, to annually file with the commission a report containing specified information. The bill would require the commission to make the report publicly available. The bill would require the commission to assess a civil penalty against an electrical or gas corporation that violates the prohibition described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing the prohibition, as provided. The bill would require 3/4 of the moneys collected pursuant to any settlement or penalties collected by the commission for a violation of the prohibition to be deposited into the Zero-Emission Equity Fund, which the bill would establish in the State Treasury. The bill would authorize the moneys in the Zero-Emission Equity Fund, upon appropriation by the Legislature, to be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. The bill would require the balance of the moneys collected, upon appropriation by the Legislature, to be used by the commission to increase resources for enforcing the bills requirements.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 above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. 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 | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate March 21, 2024 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate March 21, 2024 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 938 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator Min(Coauthor: Senator Stern)January 17, 2024 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Min(Coauthor: Senator Stern) | |
| 18 | 18 | January 17, 2024 | |
| 19 | 19 | ||
| 20 | 20 | An act to add Section 748.3 to the Public Utilities Code, relating to electrical and gas corporations. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 938, as | |
| 26 | + | SB 938, as introduced, Min. Electrical and gas corporations: rate recovery: political activities and advertising. | |
| 27 | 27 | ||
| 28 | 28 | Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for public utilities and requires those rates and charges to be just and reasonable.This bill would prohibit, except as provided, an electrical or gas corporation from recording various expenses associated with political influence activities, as defined, or with advertising, as defined, to accounts that contain expenses that the electrical or gas corporation recovers from ratepayers. The bill would require an electrical or gas corporation to provide the commission with all information deemed necessary to monitor compliance with that prohibition. The bill also would require an electrical or gas corporation, for each business unit of the corporation that performs work associated with political influence activities or advertising, to annually file with the commission a report containing specified information. The bill would require the commission to make the report publicly available. The bill would require the commission to assess a civil penalty against an electrical or gas corporation that violates the prohibition described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing the prohibition, as provided. The bill would require 3/4 of the moneys collected pursuant to any settlement or penalties collected by the commission for a violation of the prohibition to be deposited into the Zero-Emission Equity Fund, which the bill would establish in the State Treasury. The bill would authorize the moneys in the Zero-Emission Equity Fund, upon appropriation by the Legislature, to be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. The bill would require the balance of the moneys collected, upon appropriation by the Legislature, to be used by the commission to increase resources for enforcing the bills requirements.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 above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. 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. | |
| 29 | 29 | ||
| 30 | 30 | Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for public utilities and requires those rates and charges to be just and reasonable. | |
| 31 | 31 | ||
| 32 | 32 | This bill would prohibit, except as provided, an electrical or gas corporation from recording various expenses associated with political influence activities, as defined, or with advertising, as defined, to accounts that contain expenses that the electrical or gas corporation recovers from ratepayers. The bill would require an electrical or gas corporation to provide the commission with all information deemed necessary to monitor compliance with that prohibition. The bill also would require an electrical or gas corporation, for each business unit of the corporation that performs work associated with political influence activities or advertising, to annually file with the commission a report containing specified information. The bill would require the commission to make the report publicly available. | |
| 33 | 33 | ||
| 34 | 34 | The bill would require the commission to assess a civil penalty against an electrical or gas corporation that violates the prohibition described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing the prohibition, as provided. The bill would require 3/4 of the moneys collected pursuant to any settlement or penalties collected by the commission for a violation of the prohibition to be deposited into the Zero-Emission Equity Fund, which the bill would establish in the State Treasury. The bill would authorize the moneys in the Zero-Emission Equity Fund, upon appropriation by the Legislature, to be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. The bill would require the balance of the moneys collected, upon appropriation by the Legislature, to be used by the commission to increase resources for enforcing the bills requirements. | |
| 35 | 35 | ||
| 36 | 36 | 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. | |
| 37 | 37 | ||
| 38 | 38 | Because the above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. | |
| 39 | 39 | ||
| 40 | 40 | 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. | |
| 41 | 41 | ||
| 42 | 42 | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 43 | 43 | ||
| 44 | 44 | ## Digest Key | |
| 45 | 45 | ||
| 46 | 46 | ## Bill Text | |
| 47 | 47 | ||
| 48 | - | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities.SEC. 2. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth | |
| 48 | + | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities.SEC. 2. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.SEC. 3. 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. | |
| 49 | 49 | ||
| 50 | 50 | The people of the State of California do enact as follows: | |
| 51 | 51 | ||
| 52 | 52 | ## The people of the State of California do enact as follows: | |
| 53 | 53 | ||
| 54 | 54 | SECTION 1. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities. | |
| 55 | 55 | ||
| 56 | 56 | SECTION 1. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities. | |
| 57 | 57 | ||
| 58 | 58 | SECTION 1. The Legislature finds and declares that it is the policy of the state to protect ratepayers from funding the political influence activities of public utilities. | |
| 59 | 59 | ||
| 60 | 60 | ### SECTION 1. | |
| 61 | 61 | ||
| 62 | - | SEC. 2. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth | |
| 62 | + | SEC. 2. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section. | |
| 63 | 63 | ||
| 64 | 64 | SEC. 2. Section 748.3 is added to the Public Utilities Code, to read: | |
| 65 | 65 | ||
| 66 | 66 | ### SEC. 2. | |
| 67 | 67 | ||
| 68 | - | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth | |
| 68 | + | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section. | |
| 69 | 69 | ||
| 70 | - | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth | |
| 70 | + | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section. | |
| 71 | 71 | ||
| 72 | - | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth | |
| 72 | + | 748.3. (a) For purposes of this section the following definitions apply:(1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case.(2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation.(B) Advertising does not include either of the following:(i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers.(4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation.(5) Political influence activity means any of the following:(A) An activity for the purpose of directly or indirectly influencing either of the following:(i) The possible adoption of federal, state, or local legislation, regulations, or ordinances.(ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances.(B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials.(C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations.(D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following:(i) Legislation, regulations, or ordinances.(ii) Elections.(iii) Referenda.(iv) Rate setting of the electrical or gas corporation.(E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials.(6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following:(1) Record an expense associated with political influence activities or advertising to an above-the-line account. (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising.(3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising.(4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising.(c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs:(1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations.(B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following:(i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas.(ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants.(iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system.(2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards.(d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission.(2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information:(A) A list of each employee job title.(B) A job description of each listed employee job title sufficient to describe the employees responsibilities.(C) The total annual compensation provided to each employee with a listed employee job title.(D) The Uniform System of Accounts codes to which the compensation is recorded.(3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available.(4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2).(f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation.(3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers.(g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury.(B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances.(2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section. | |
| 73 | 73 | ||
| 74 | 74 | ||
| 75 | 75 | ||
| 76 | 76 | 748.3. (a) For purposes of this section the following definitions apply: | |
| 77 | 77 | ||
| 78 | 78 | (1) Above-the-line account means an account that contains expenses that an electrical or gas corporation recovers from ratepayers, including an account that contains expenses that the electrical or gas corporation used to calculate a revenue requirement request in its most recent general rate case. | |
| 79 | 79 | ||
| 80 | - | (2) (A) Advertising has the same meaning as set forth | |
| 80 | + | (2) (A) Advertising has the same meaning as set forth in subdivision (a) of Section 796 and public messages that tend primarily to build the public image of an electrical or gas corporation. | |
| 81 | 81 | ||
| 82 | 82 | (B) Advertising does not include either of the following: | |
| 83 | 83 | ||
| 84 | 84 | (i) Public messages that the electrical or gas corporation is directed to publish by a federal, state, or local agency. | |
| 85 | 85 | ||
| 86 | 86 | (ii) Public messages providing information on safety measures, emergency conditions, or service interruptions. | |
| 87 | 87 | ||
| 88 | 88 | (3) Below-the-line account means an account that contains expenses that an electrical or gas corporation does not recover from ratepayers. | |
| 89 | 89 | ||
| 90 | 90 | (4) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to an electrical or gas corporation, and the salary paid to an employee of an electrical or gas corporation. | |
| 91 | 91 | ||
| 92 | 92 | (5) Political influence activity means any of the following: | |
| 93 | 93 | ||
| 94 | 94 | (A) An activity for the purpose of directly or indirectly influencing either of the following: | |
| 95 | 95 | ||
| 96 | 96 | (i) The possible adoption of federal, state, or local legislation, regulations, or ordinances. | |
| 97 | 97 | ||
| 98 | 98 | (ii) The possible repeal or modification of federal, state, or local legislation, regulations, or ordinances. | |
| 99 | 99 | ||
| 100 | 100 | (B) An activity for the purpose of directly or indirectly influencing elections or referenda, or appointments of public officials. | |
| 101 | 101 | ||
| 102 | 102 | (C) An activity for the purpose of directly or indirectly influencing the approval, modification, or revocation of franchises of electrical or gas corporations. | |
| 103 | 103 | ||
| 104 | 104 | (D) An activity for the purpose of directly or indirectly influencing public opinion with respect to any of the following: | |
| 105 | 105 | ||
| 106 | 106 | (i) Legislation, regulations, or ordinances. | |
| 107 | 107 | ||
| 108 | 108 | (ii) Elections. | |
| 109 | 109 | ||
| 110 | 110 | (iii) Referenda. | |
| 111 | 111 | ||
| 112 | 112 | (iv) Rate setting of the electrical or gas corporation. | |
| 113 | 113 | ||
| 114 | 114 | (E) An activity for the purpose of directly or indirectly influencing the decisions of federal, state, or local government officials. | |
| 115 | 115 | ||
| 116 | 116 | (6) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development. | |
| 117 | 117 | ||
| 118 | 118 | (b) Except as provided in subdivision (c), an electrical or gas corporation shall not do any of the following: | |
| 119 | 119 | ||
| 120 | 120 | (1) Record an expense associated with political influence activities or advertising to an above-the-line account. | |
| 121 | 121 | ||
| 122 | 122 | (2) Record to above-the-line accounts any salary, bonus, benefits, or other consideration of any value for any employee, if any portion of that salary, bonus, benefits, or other consideration of any value supports political influence activities or advertising. | |
| 123 | 123 | ||
| 124 | + | (3) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising. | |
| 124 | 125 | ||
| 126 | + | (4) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising. | |
| 125 | 127 | ||
| 126 | - | (3) | |
| 127 | - | ||
| 128 | - | ||
| 129 | - | ||
| 130 | - | (2) Record to above-the-line accounts the cost of an advertisement if any portion of the message is advertising. | |
| 131 | - | ||
| 132 | - | (4) | |
| 133 | - | ||
| 134 | - | ||
| 135 | - | ||
| 136 | - | (3) Record to above-the-line accounts any expense associated with membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions supports political influence activities or advertising. Fees for professional licenses necessary for employee job duties may be recorded to above-the-line accounts. | |
| 137 | - | ||
| 138 | - | (c) Subdivision (1) Subject to paragraph (2), subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs: the costs of appearing before governmental bodies, if these appearances are directly related to the electrical or gas corporations existing or proposed operations. | |
| 128 | + | (c) Subdivision (b) does not prohibit an electrical or gas corporation from recovering from ratepayers either of the following costs: | |
| 139 | 129 | ||
| 140 | 130 | (1) (A) Subject to subparagraph (B), the costs of appearing before governmental bodies, when these appearances are directly related to the electrical or gas corporations existing or proposed operations. | |
| 141 | 131 | ||
| 142 | - | ||
| 143 | - | ||
| 144 | 132 | (B) For purposes of subparagraph (A), costs that are not directly related to the electrical or gas corporations existing or proposed operations include, but are not limited to, engagement with government entities on any of the following: | |
| 145 | - | ||
| 146 | - | ||
| 147 | 133 | ||
| 148 | 134 | (i) Except as provided in paragraph (2), actions, including, but not limited to, vehicle, appliance, or other equipment spending programs, incentives, or procurement requirements that would increase consumption of electricity or gas. | |
| 149 | 135 | ||
| 150 | - | ||
| 151 | - | ||
| 152 | 136 | (ii) Rules or policies related to emissions of greenhouse gases or criteria air pollutants. | |
| 153 | - | ||
| 154 | - | ||
| 155 | 137 | ||
| 156 | 138 | (iii) Appearances before regulatory bodies when the electrical or gas corporation is not the applicant or respondent in a proceeding, except in cases where the electrical or gas corporation has been specifically requested by the regulatory body to participate or the proceeding is directly related to rules or regulations regarding the safe operation of the electrical or gas system. | |
| 157 | 139 | ||
| 158 | - | ||
| 159 | - | ||
| 160 | 140 | (2) The costs of the commission-approved energy efficiency codes and standards programs or any other commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards. | |
| 161 | - | ||
| 162 | - | ||
| 163 | - | ||
| 164 | - | (2) For purposes of paragraph (1), costs of appearances before regulatory or other governmental bodies are directly related to the electrical or gas corporations existing or proposed operations if any of the following apply: | |
| 165 | - | ||
| 166 | - | (A) The electrical or gas corporation is the applicant or respondent in the proceeding before the regulatory or other governmental body. | |
| 167 | - | ||
| 168 | - | (B) The electrical or gas corporations appearance has been specifically requested by the regulatory or other governmental body. | |
| 169 | - | ||
| 170 | - | (C) The electrical or gas corporations appearance directly relates to rules or regulations regarding the safe operation of the electrical or gas system. | |
| 171 | - | ||
| 172 | - | (D) The electrical or gas corporations appearance is for Energy Commission-approved energy efficiency codes and programs or any other Energy Commission-approved public purpose program in which electrical or gas corporations advocate for more stringent greenhouse gas emissions, criteria air pollutants, or public health standards if their participation has not otherwise been prohibited by the commission. | |
| 173 | 141 | ||
| 174 | 142 | (d) (1) An electrical or gas corporation shall clearly and conspicuously disclose in all of its public messaging and advertising whether the costs of the public messaging or advertising are being paid for by the corporations shareholders or ratepayers. | |
| 175 | 143 | ||
| 176 | 144 | (2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked. | |
| 177 | 145 | ||
| 178 | - | (e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission. | |
| 146 | + | (e) (1) An electrical or gas corporation shall provide to the commission all information determined necessary by the commission to monitor compliance with subdivision (b), including real-time access to digital records for any above-the-line account. Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission. | |
| 179 | 147 | ||
| 180 | 148 | (2) An electrical or gas corporation shall annually file with the commission, for each business unit of the corporation that performs work associated with political influence activities or advertising, a report containing all of the following information: | |
| 181 | 149 | ||
| 182 | 150 | (A) A list of each employee job title. | |
| 183 | 151 | ||
| 184 | 152 | (B) A job description of each listed employee job title sufficient to describe the employees responsibilities. | |
| 185 | 153 | ||
| 186 | 154 | (C) The total annual compensation provided to each employee with a listed employee job title. | |
| 187 | 155 | ||
| 188 | 156 | (D) The Uniform System of Accounts codes to which the compensation is recorded. | |
| 189 | - | ||
| 190 | - | ||
| 191 | - | ||
| 192 | - | (D) The number of hours booked to an above-the-line account for each employee with a listed employee job title. | |
| 193 | - | ||
| 194 | - | (E) The percent of total annual compensation booked to an above-the-line account for each employee with a listed job title. | |
| 195 | 157 | ||
| 196 | 158 | (3) The commission shall make all reports filed with the commission pursuant to paragraph (2) publicly available. | |
| 197 | 159 | ||
| 198 | 160 | (4) An electrical or gas corporation shall not recover through rates any costs associated with preparing the report filed with the commission pursuant to paragraph (2). | |
| 199 | 161 | ||
| 200 | 162 | (f) (1) In addition to any refunds that the commission orders an electrical or gas corporation to pay ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against an electrical or gas corporation that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b). | |
| 201 | 163 | ||
| 202 | 164 | (2) (A) An electrical or gas corporation that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing subdivision (b) is subject to a civil penalty of not less than ten thousand dollars ($10,000) and not more than one hundred thousand dollars ($100,000) for each violation. | |
| 203 | 165 | ||
| 204 | 166 | (B) Each expense improperly recorded to an above-the-line account in violation of subdivision (b) is a separate and distinct violation. Violations of subdivision (b) are continuing violations. Each day that an expense remains in an above-the-line account in violation of subdivision (b) shall be a separate and distinct violation. | |
| 205 | 167 | ||
| 206 | 168 | (3) Pursuant to Section 748.1, an electrical or gas corporation shall not recover any penalty assessed pursuant to this subdivision from ratepayers. | |
| 207 | 169 | ||
| 208 | - | (g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in | |
| 170 | + | (g) (1) (A) Notwithstanding Section 2104, three-fourths of the moneys collected pursuant to any settlement or penalties collected by the commission for violations of subdivision (b) shall be deposited in the Zero-Emission Equity Fund, which is hereby established in the State Treasury. | |
| 209 | 171 | ||
| 210 | 172 | (B) Upon appropriation by the Legislature, moneys in the Zero-Emission Equity Fund may be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. | |
| 211 | 173 | ||
| 212 | 174 | (2) One-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section. | |
| 213 | 175 | ||
| 214 | 176 | SEC. 3. 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. | |
| 215 | 177 | ||
| 216 | 178 | SEC. 3. 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. | |
| 217 | 179 | ||
| 218 | 180 | SEC. 3. 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. | |
| 219 | 181 | ||
| 220 | 182 | ### SEC. 3. |