The state Assembly has approved legislation that would block members of California's Public Utility Commission from serving on nonprofits created by the commission.
Lawmakers approved the compromise legislation Wednesday as part of a budget-related bill.
Current PUC President Michael Peevey is chairman of two nonprofits created by the agency. Under the legislation, he could not serve in those roles starting in June 2014.
A Senate bill would have delayed the rule until January 2015, after Peevey's term expires.
The legislation also aims to strengthen oversight of the PUC by requiring the agency to use zero-based budgeting and to notify lawmakers of future lawsuit settlements.
SB84 passed the Assembly, 47-24, and heads to the Senate.