Bill Text: CA SB434 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public Utilities Commission: removal of a commissioner.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-25 - Chaptered by Secretary of State. Chapter 546, Statutes of 2014. [SB434 Detail]

Download: California-2013-SB434-Amended.html

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BILL NUMBER: SB 434	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014
	AMENDED IN SENATE  MAY 24, 2013
	AMENDED IN SENATE  MAY 7, 2013
	AMENDED IN SENATE  APRIL 29, 2013
	AMENDED IN SENATE  APRIL 24, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY    Senators   Hill 
   and Wolk   Senator 
 Hill 
    (   Coauthors:  
Assembly Members   Gordon  
  and Mullin   ) 

                        FEBRUARY 21, 2013

   An act to amend  and repeal Sections17053.74 and 23622.7
of, to add Section 41 to, and to add and repeal Sections 17053.90 and
23690 of, the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy.   Section 854.5 of
the Public Utilities Code, relating to the Public Utilities
Commission. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 434, as amended, Hill.  Personal income and corporation
taxes: hiring credits: enterprise zones.   Public
Utilities Commission: Removal of a commissioner.  
   The California Constitution establishes the Public Utilities
Commission, with jurisdiction over all public utilities, and provides
that the Legislature may remove a commissioner for incompetence,
neglect of duty, or corruption, 2/3 of the membership of each house
concurring. Existing law prohibits the commission, by order,
decision, motion, settlement, or other action, from establishing a
nonstate entity, as defined, with any moneys other than those moneys
that would otherwise belong to the public utility's shareholders.
That law prohibits the commission from entering into a contract with
any nonstate entity in which a person serves as an owner, director,
or officer while serving as a commissioner. That law additionally
provides that, beginning June 1, 2014, a commissioner who acts as an
owner, director, or officer of a nonstate entity that was established
prior to January 1, 2014, as a result of an order, decision, motion,
settlement, or other action by the Public Utilities Commission in
which the commissioner participated, neglects his or her duty and may
be removed pursuant to the California Constitution.  
   This bill would provide that, beginning June 1, 2014, a
commissioner who acts as an owner, director, or officer of a nonstate
entity that was established as a result of an order, decision,
motion, settlement, or other action by the Public Utilities
Commission in which the commissioner participated, neglects his or
her duty and may be removed pursuant to the California Constitution,
irrespective of when the nonstate entity was established. 

   The Personal Income Tax Law and the Corporation Tax Law allow
credits for hiring employees, based on qualified wages, in an
enterprise zone.  
   This bill would limit the credit for a taxpayer that employs a
qualified employee in an enterprise zone to only those qualified
employees who first commence employment with the taxpayer before
January 1, 2014, as specified. The bill would also provide that the
credit would remain in effect only until December 1, 2019, and as of
that date is repealed. The bill would, for taxable years beginning on
or after January 1, 2014, and before January 1, 2019, for wages paid
to qualified employees who first commence employment with the
taxpayer after January 1, 2014, instead allow a credit for a taxpayer
that has a net increase in qualified full-time employees, as
specified. 
   This bill would additionally prohibit a person from charging a
contingent fee, as defined, for services rendered in connection with
a tax credit relating to enterprise zones, LAMBRAs, manufacturing
enhancement areas, or targeted tax areas and would impose a penalty
for the violation of this prohibition, as specified. This bill would
require that, upon request of the Franchise Tax Board, a person
rendering these services provide, under penalty of perjury, a written
certification that a fee for those services does not include a
contingent fee.  
   By expanding the definition of an existing crime, this 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.  
   This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.  
   This bill would take effect immediately as a tax levy. 
   Vote:  2/3   majority  . Appropriation:
no. Fiscal committee:  yes   no  .
State-mandated local program:  yes   no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 854.5 of the   Public
Utilities Code   is amended to read: 
   854.5.  (a) For purposes of this section, a "nonstate entity"
means a company, corporation, partnership, firm, or other entity or
group of entities, whether organized for profit or not for profit.
   (b) The commission, by order, decision, motion, settlement, or
other action, shall not establish a nonstate entity with any moneys
other than those moneys that would otherwise belong to the public
utility's shareholders. A nonstate entity to be created with moneys
from a public utility's shareholders shall be subject to a 30-day
review by the Joint Legislative Budget Committee prior to creation.
This subdivision does not limit the authority of the commission to
form an advisory committee or other body whose budget is subject to
oversight by the commission and the Department of Finance.
   (c) The commission shall not enter into a contract with a nonstate
entity in which a person serves as an owner, director, or officer
while serving as a commissioner. Any contract between the commission
and a nonstate entity shall be void and cease to exist by operation
of law, if a commissioner, who was a commissioner at the time the
contract was awarded, entered into, or extended, becomes, on or after
January 1, 2014, an owner, director, or officer of the nonstate
entity while serving as a commissioner.
   (d) Beginning June 1, 2014, a commissioner who acts as an owner,
director, or officer of a nonstate entity that was established
 prior to January 1, 2014,  as a result of an order,
decision, motion, settlement, or other action by the commission in
which the commissioner participated, neglects his or her duty
pursuant to Section 1 of Article XII of the California Constitution,
for which the commissioner may be removed pursuant to that section.
All matter omitted in this version of the bill appears in the bill as
amended in the Senate, May 24, 2013. (JR11)