AB 353: Public Utilities Commission: Independent Office of Audits and Investigations.

Session Year: 2025-2026
House: Assembly
Latest Version Date: 2026-06-23

Current Status:

In Progress

(2026-07-22: In committee: Hearing postponed by committee.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law requires the Public Utilities Commission to appoint a chief internal auditor who holds office at the pleasure of the commission. Existing law makes the chief internal auditor responsible for the oversight of the internal audit unit and requires the chief internal auditor to plan, initiate, and perform audits of key financial, management, operational, and information technology functions within the commission to improve accountability and transparency to executive and state management.

This bill would repeal the provision providing for the appointment of the chief internal auditor and, on or before January 1, 2028, would transfer the internal audit unit of the commission and its staff to the Independent Office of Audits and Investigations, which the bill would establish within the commission, as specified. The bill would provide for the appointment and removal of the director of the office, who would have the title of Inspector General. The bill would provide the office with access to, and authority to examine, all records, files, documents, accounts, reports, correspondence, or other property of the commission, public utilities, and other entities regulated by the commission, as specified. The bill would require the Inspector General to report to the Governor and the Legislature, as provided.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the 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.

Existing law, the Digital Equity Bill of Rights, provides that it is the principle of the state to ensure digital equity for all residents of the state, that residents shall have access to broadband that meets specific requirements, and that it is the policy of the state that, to the extent technically feasible, broadband internet subscribers benefit from equal access to broadband internet service within the service area of a broadband provider.Existing law, the California Internet Consumer Protection and Net Neutrality Act of 2018, prohibits fixed and mobile internet service providers, as defined, that provide broadband internet access service, as defined, from engaging in specified actions concerning the treatment of internet traffic, including engaging in paid prioritization.This bill would require every California internet service provider, except as specified, to offer for purchase to eligible households, as defined, within their California service territory affordable home internet service, as defined. The bill would also require every California internet service provider to make commercially reasonable efforts to promote and advertise the availability of affordable home internet service for eligible households, as provided.Existing law establishes within the Government Operations Agency the Department of Technology, which is supervised by the Director of Technology. Existing law authorizes the director and the department to exercise various powers in creating and managing the information technology policy of the state.This bill would, starting January 1, 2027, require California internet service providers to annually provide a report to the Department of Technology with specified information related to their affordable home internet service plans.This bill would provide that the Public Utilities Commission has no jurisdiction or regulatory authority to implement, enforce, interpret, or oversee any aspect of these provisions, as specified, and would require any administrative or oversight responsibilities to be carried out exclusively by the Department of Technology.This bill would make its provisions inoperative upon the implementation of a federal or state broadband subscription subsidy program for low income households that meets specified criteria.

Discussed in Hearing