CA SB434

Prohibits the Public Utilities Commission from establishing nonstate entities using funds other than shareholder moneys, with any such creation subject to 30-day Joint Legislative Budget Committee review.

Voids any contract between the commission and a nonstate entity if a commissioner becomes an owner, director, or officer of that entity while serving as a commissioner on or after January 1, 2014.

Establishes that beginning June 1, 2014, a commissioner who serves as owner, director, or officer of a nonstate entity created as a result of a commission action in which the commissioner participated constitutes neglect of duty.

Allows the Legislature to remove a commissioner for such neglect of duty by a two-thirds vote of both houses, pursuant to Article XII of the California Constitution.