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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 420Introduced by Assembly Member Petrie-NorrisFebruary 05, 2025 An act to amend Section 1701.9 of the Public Utilities Code, relating to the Public Utilities Commission. LEGISLATIVE COUNSEL'S DIGESTAB 420, as introduced, Petrie-Norris. Public Utilities Commission: proceedings. Existing law authorizes the Public Utilities Commission to meet in closed session to deliberate on a proposed decision, order, or resolution after providing 3-day advance notice to the public, except as specified. Existing law requires the commission to establish a quiet period during the 3 business days before the commissions scheduled vote on a decision, during which oral and written ex parte communications are prohibited. Existing law authorizes an interested person, if the commission materially modifies a proposed decision during the quiet period, to submit a written ex parte communication if certain conditions are met, as specified.This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1701.9 of the Public Utilities Code is amended to read:1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 420Introduced by Assembly Member Petrie-NorrisFebruary 05, 2025 An act to amend Section 1701.9 of the Public Utilities Code, relating to the Public Utilities Commission. LEGISLATIVE COUNSEL'S DIGESTAB 420, as introduced, Petrie-Norris. Public Utilities Commission: proceedings. Existing law authorizes the Public Utilities Commission to meet in closed session to deliberate on a proposed decision, order, or resolution after providing 3-day advance notice to the public, except as specified. Existing law requires the commission to establish a quiet period during the 3 business days before the commissions scheduled vote on a decision, during which oral and written ex parte communications are prohibited. Existing law authorizes an interested person, if the commission materially modifies a proposed decision during the quiet period, to submit a written ex parte communication if certain conditions are met, as specified.This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly April 09, 2025 | |
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| 7 | - | Amended IN Assembly April 09, 2025 | |
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| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
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| 11 | 11 | Assembly Bill | |
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| 13 | 13 | No. 420 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member Petrie-NorrisFebruary 05, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Petrie-Norris | |
| 18 | 18 | February 05, 2025 | |
| 19 | 19 | ||
| 20 | - | An act to amend Section 1701.9 of the Public Utilities Code, relating to the Public Utilities Commission. | |
| 20 | + | An act to amend Section 1701.9 of the Public Utilities Code, relating to the Public Utilities Commission. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 420, as | |
| 26 | + | AB 420, as introduced, Petrie-Norris. Public Utilities Commission: proceedings. | |
| 27 | 27 | ||
| 28 | - | Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Existing law prohibits public utilities, other than certain common carriers, from selling, leasing, assigning, mortgaging, or otherwise disposing of, or encumbering, its assets that are necessary or useful in the performance of its duties to the public, unless the public utility has secured an order from the commission to do so for a qualified transaction above $5,000,000 or an approval from the commission through the filing of an advice letter for a qualified transaction at or below $5,000,000.This bill would exempt from that prohibition a qualified conveyance of an easement or the execution of a relocation agreement that has a ratepayer financial impact valued at $100,000 or less if a public utility that is a party to the qualified transaction has gross annual California revenues of $500,000,000 or more. The bill would require, beginning January 1, 2030, and every 5 years thereafter, those threshold values to increase to reflect any increase in inflation, as specified. Existing law authorizes the Public Utilities Commission to meet in closed session to deliberate on a proposed decision, order, or resolution after providing 3-day advance notice to the public, except as specified. Existing law requires the commission to establish a quiet period during the 3 business days before the commissions scheduled vote on a decision, during which oral and written ex parte communications are prohibited. Existing law authorizes an interested person, if the commission materially modifies a proposed decision during the quiet period, to submit a written ex parte communication if certain conditions are met, as specified.This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision. | |
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| 30 | - | Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Existing law prohibits public utilities, other than certain common carriers, from selling, leasing, assigning, mortgaging, or otherwise disposing of, or encumbering, its assets that are necessary or useful in the performance of its duties to the public, unless the public utility has secured an order from the commission to do so for a qualified transaction above $5,000,000 or an approval from the commission through the filing of an advice letter for a qualified transaction at or below $5,000,000. | |
| 31 | - | ||
| 32 | - | This bill would exempt from that prohibition a qualified conveyance of an easement or the execution of a relocation agreement that has a ratepayer financial impact valued at $100,000 or less if a public utility that is a party to the qualified transaction has gross annual California revenues of $500,000,000 or more. The bill would require, beginning January 1, 2030, and every 5 years thereafter, those threshold values to increase to reflect any increase in inflation, as specified. | |
| 28 | + | Existing law authorizes the Public Utilities Commission to meet in closed session to deliberate on a proposed decision, order, or resolution after providing 3-day advance notice to the public, except as specified. Existing law requires the commission to establish a quiet period during the 3 business days before the commissions scheduled vote on a decision, during which oral and written ex parte communications are prohibited. Existing law authorizes an interested person, if the commission materially modifies a proposed decision during the quiet period, to submit a written ex parte communication if certain conditions are met, as specified.This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision. | |
| 33 | 29 | ||
| 34 | 30 | Existing law authorizes the Public Utilities Commission to meet in closed session to deliberate on a proposed decision, order, or resolution after providing 3-day advance notice to the public, except as specified. Existing law requires the commission to establish a quiet period during the 3 business days before the commissions scheduled vote on a decision, during which oral and written ex parte communications are prohibited. Existing law authorizes an interested person, if the commission materially modifies a proposed decision during the quiet period, to submit a written ex parte communication if certain conditions are met, as specified. | |
| 35 | 31 | ||
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| 38 | 32 | This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision. | |
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| 41 | 33 | ||
| 42 | 34 | ## Digest Key | |
| 43 | 35 | ||
| 44 | 36 | ## Bill Text | |
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| 46 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 1701.9 of the Public Utilities Code is amended to read:1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
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| 48 | 40 | The people of the State of California do enact as follows: | |
| 49 | 41 | ||
| 50 | 42 | ## The people of the State of California do enact as follows: | |
| 51 | 43 | ||
| 52 | - | SECTION 1. Section | |
| 44 | + | SECTION 1. Section 1701.9 of the Public Utilities Code is amended to read:1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
| 53 | 45 | ||
| 54 | - | SECTION 1. Section | |
| 46 | + | SECTION 1. Section 1701.9 of the Public Utilities Code is amended to read: | |
| 55 | 47 | ||
| 56 | 48 | ### SECTION 1. | |
| 57 | 49 | ||
| 58 | - | ||
| 50 | + | 1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
| 59 | 51 | ||
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| 52 | + | 1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
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| 54 | + | 1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding:(a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public.(b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted.(c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference.(d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified.(2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
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| 66 | - | 851. (a) A Except as provided in subdivision (c), a public utility, other than a common carrier by railroad subject to Part A of the Interstate Commerce Act (49 U.S.C. Sec. 10101 et seq.), shall not sell, lease, assign, mortgage, or otherwise dispose of, or encumber the whole or any part of of, its railroad, street railroad, line, plant, system, or other property necessary or useful in the performance of its duties to the public, or any franchise or permit or any right thereunder, or by any means whatsoever, directly or indirectly, merge or consolidate its railroad, street railroad, line, plant, system, or other property, or franchises or permits or any part thereof, without first having either secured an order from the commission authorizing it to do so for qualified transactions valued above five million dollars ($5,000,000), or for qualified transactions valued at five million dollars ($5,000,000) or less, filed an advice letter and obtained approval from the commission authorizing it to do so. If the advice letter is uncontested, approval may be given by the executive director or the director of the division of the commission having regulatory jurisdiction over the utility. The commission shall determine the types of transactions valued at five million dollars ($5,000,000) or less, that qualify for advice letter handling. For a qualified transaction valued at five million dollars ($5,000,000) or less, the commission may designate a procedure different than the advice letter procedure if it determines that the transaction warrants a more comprehensive review. Absent protest or incomplete documentation, the commission shall approve or deny the advice letter within 120 days of its filing by the applicant public utility. The commission shall reject any advice letter that seeks to circumvent the five million dollar ($5,000,000) threshold by dividing a single asset with a value of more than five million dollars ($5,000,000), into component parts, each valued at less than five million dollars ($5,000,000). Every sale, lease, assignment, mortgage, disposition, encumbrance, merger, or consolidation made other than in accordance with the advice letter and approval from the commission authorizing it is void. The permission and approval of the commission to the exercise of a franchise or permit under Article 1 (commencing with Section 1001) of Chapter 5, or the sale, lease, assignment, mortgage, or other disposition or encumbrance of a franchise or permit under this article article, shall not revive or validate any lapsed or invalid franchise or permit, or enlarge or add to the powers or privileges contained in the grant of any franchise or permit, or waive any forfeiture. | |
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| 68 | - | (b) (1) Subdivision (a) shall apply to any transaction described in subparagraph (F) of paragraph (1) of subdivision (b) of Section 854.2. | |
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| 70 | - | (2) For any transaction described in subparagraph (F) of paragraph (1) of subdivision (b) of Section 854.2, as part of its review under subdivision (a), the commission shall determine whether the transaction is fair and reasonable to affected public utility employees, including both union and nonunion employees. | |
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| 72 | - | (c) (1) Subdivision (a) shall not apply to a qualified conveyance of an easement or the execution of a relocation agreement that has a ratepayer financial impact valued at one hundred thousand dollars ($100,000) or less if a public utility that is a party to the qualified transaction has gross annual California revenues of five hundred million dollars ($500,000,000) or more. | |
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| 74 | - | (2) On January 1, 2030, and every five years thereafter, the threshold values specified in paragraph (1) shall be adjusted to reflect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics. | |
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| 76 | - | (c) | |
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| 80 | - | (d) This section does not prevent the sale, lease, encumbrance, or other disposition by any public utility of property that is not necessary or useful in the performance of its duties to the public, and any disposition of property by a public utility shall be conclusively presumed to be of property that is not useful or necessary in the performance of its duties to the public, as to any purchaser, lessee, or encumbrancer dealing with that property in good faith for value, provided that this section does not apply to the interchange of equipment in the regular course of transportation between connecting common carriers. | |
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| 86 | - | The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding: | |
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| 88 | - | ||
| 58 | + | 1701.9. The following provisions apply during the pendency of a commission proceeding, except these provisions do not apply during an adjudicatory or quasi-legislative proceeding: | |
| 89 | 59 | ||
| 90 | 60 | (a) The commission may meet in closed session to deliberate on a proposed decision, order, or resolution after providing three-day advance notice to the public. | |
| 91 | 61 | ||
| 92 | - | ||
| 93 | - | ||
| 94 | 62 | (b) The commission shall establish a quiet period during the three business days before the commissions scheduled vote on a decision, during which oral ex parte communications shall not be permitted. | |
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| 96 | - | ||
| 97 | 63 | ||
| 98 | 64 | (c) The requirement specified in subparagraph (F) of paragraph (1) of subdivision (b) of Section 11123 of the Government Code shall not apply to a meeting of the commission during a quiet period that is held by teleconference. | |
| 99 | 65 | ||
| 66 | + | (d) (1) If the commission materially modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. | |
| 100 | 67 | ||
| 101 | - | ||
| 102 | - | (d)(1)If the commission modifies a proposed decision during the first two business days of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication during those two business days if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was modified. | |
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| 106 | - | (2)If the commission modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was modified. | |
| 68 | + | (2) If the commission materially modifies a proposed decision during the last business day of the three-day quiet period before the commissions scheduled vote on the proposed decision, an interested person may submit a written ex parte communication on that day if copies of the written ex parte communication are concurrently transmitted to all parties at the same time as the written ex parte communication is submitted to the commission and the scope of the written ex parte communication is limited to the portion of the proposed decision that was materially modified. |