Section 854.5 Of Article 6. Transfer Or Encumbrance Of Utility Property From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 6.
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 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, and as a result the commissioner may be removed
pursuant to that section by the Legislature, two-thirds of the
membership of each house concurring.