AB 705: Public Utilities Commission: Independent Office of Audits and Investigations.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law requires the Public Utilities Commission to appoint a chief internal auditor to hold office at the pleasure of the commission. Existing law requires the chief internal auditor to be responsible for the oversight of the internal audit unit and 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 delete the provision providing for the appointment of the chief internal auditor and instead provide that, effective January 1, 2026, the internal audit unit of the commission and its staff are transferred 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 require that the office have access 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 bill’s 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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 29, 2025In committee: Held under submission.
2. August 18, 2025In committee: Referred to suspense file.
3. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 1.) (July 15). Re-referred to Com. on APPR.
4. June 11, 2025Referred to Com. on E., U & C.
5. June 3, 2025In Senate. Read first time. To Com. on RLS. for assignment.
6. June 2, 2025Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1846.)
7. May 27, 2025Read second time. Ordered to third reading.
8. May 23, 2025From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
9. May 14, 2025In committee: Set, first hearing. Referred to suspense file.
10. April 24, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 23). Re-referred to Com. on APPR.
11. March 18, 2025Re-referred to Com. on U. & E.
12. March 17, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.