BILL NUMBER: ACA 12	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 8, 2002
	AMENDED IN SENATE  MAY 23, 2002

INTRODUCED BY   Assembly Member  Chavez   Vargas

    (Principal coauthor:  Senator Peace) 

                        JUNE 6, 2001

   Assembly Constitutional Amendment No. 12--A resolution to propose
to the people of the State of California an amendment to the
Constitution of the State, by adding  Section 2.5 to Article
XVI thereof, relating to veterans.   Sections 10 and 11
to Article XII thereto, and repealing and adding Section 9 of Article
XII thereof, relating to public utilities. 



	LEGISLATIVE COUNSEL'S DIGEST


   ACA 12, as amended,  Chavez   Vargas  .
 Homeless Veterans Housing Assistance Program  
Public utilities:  control  . 
   The California Constitution authorizes the Public Utilities
Commission to establish rates and rules for all public utilities
subject to its jurisdiction.  The Public Utilities Act generally
prohibits any public utility from transferring or encumbering utility
property that is necessary or useful in the performance of its
duties to the public without an order by the commission.
   This measure would prohibit the Legislature and the Public
Utilities Commission from allowing the transfer of ownership,
operation, or control of any asset of the public utility to any
institution not subject to the exclusive authority of the people of
the State and their agents.
   This measure would prohibit any agent of the people of the State,
including the Legislature and the Public Utilities Commission, from
compromising, abridging, or otherwise diminishing the right of the
people of the State to protect their health and safety by ensuring
that those responsible for a reliable and affordable supply of
electricity are accountable to the people of the State. 

   The California Constitution prohibits the Legislature from
creating any debt exceeding $300,000, as specified, unless authorized
by law for a single object, principal and interest is paid on the
debt, that law can not be repealed until the principal and interest
on the debt is paid and discharged, and the law is approved by a 2/3
vote of the Legislature and a majority vote of the people.
   The Veterans' Farm and Home Purchase Act of 1943 and subsequent
acts authorize the Department of Veterans Affairs to purchase homes
or farms for sale to veterans, and to finance the purchase by the
veteran through the sale of general obligation bonds.  All bond
proceeds are deposited into veterans' farm and home building funds
established under the various acts.
   This measure would provide that, notwithstanding any provision in
the Constitution or any bond act to the contrary, the Legislature may
authorize the use of any surplus funds, as defined, derived pursuant
to a veterans' farm and home purchase act, as defined, for the
purpose of funding the acquisition, construction, or rehabilitation
of transitional and long-term housing for homeless veterans,
including support services and administration. 
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.



  
   Resolved by the Assembly, the Senate concurring, That the
 
   WHEREAS, The health and welfare of the people of this State cannot
be protected without the guarantee of a reliable and affordable
supply of electricity; and
   WHEREAS, The people of this State have the exclusive right to
protect their health and safety by ensuring the availability of a
reliable and affordable supply of electricity; and
   WHEREAS, The people exercise this right to electricity through the
authority of the Legislature pursuant to Section 8 of Article II of
the California Constitution, and through the Public Utilities
Commission pursuant to Article XII of the California Constitution;
and
   WHEREAS, The Legislature or the Public Utilities Commission may,
from time to time, delegate all or portions of this authority over
electricity to other agencies, commissions, public corporations, or
other institutions including, but not limited to, the State Energy
Resources and Conservation Commission, the California Independent
System Operator, the California Power Exchange, the California Power
Authority or other entities as directed by the Legislature or the
Public Utilities Commission, each acting within the authority granted
by the California Constitution; and
   WHEREAS, In making a delegation of authority in this regard,
neither the Legislature nor the Public Utilities Commission may
extend control, management, or policy authority to any body or
institution, public or private, that is governed by an authority that
is not accountable to the people of this State; and
   WHEREAS, Where a delegation of authority has occurred it shall
remain revocable by the people's exercise of authority through the
Legislature, the Public Utilities Commission, or other means
guaranteed by the California Constitution; and
   WHEREAS, The exclusive right to regulate public utilities is a
right granted only by the people of this State; and
   WHEREAS, In the exercise of that authority, neither the
Legislature nor the Public Utilities Commission may allow for the
transfer of ownership, operation, or control of any asset of a public
utility to any institution, public or private, not subject to the
exclusive authority of the people of this State and their agents; and

   WHEREAS, The people of this State recognize the authority of the
federal government to regulate interstate commerce and the obligation
of the people of this State through their authorities to abide by
that regulatory framework where established and enforced in a just
and reasonable manner, but that the federal government's right to
regulate does not extend to the right to select or dictate the means
by which representatives of this State may be chosen; now, therefore
be it 
   RESOLVED BY THE ASSEMBLY, THE SENATE CONCURRING,  That the
Legislature of the State of California at its 2001-02 Regular Session
commencing on the fourth day of December 2000, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California that the Constitution of the State be
amended as follows:
  First--That Section 9 of Article XII is repealed.  
      SEC. 9.  The provisions of this article restate all related
provisions of the Constitution in effect immediately prior to the
effective date of this amendment and make no substantive change.
  
  Second--That Section 9 is added to Article XII to read:
      SEC. 9.  Neither the Legislature nor the Public Utilities
Commission may allow the transfer of ownership, operation, or control
of any asset of a public utility to any institution, public or
private, not subject to the exclusive authority of the people of this
State and their agents.
  Third--That Section 10 is added to Article XII to read:
      SEC. 10.  No agent of the people of this State, including, but
not limited to, the Legislature and the Public Utilities Commission,
may compromise, abridge, or otherwise diminish the right of the
people of this State to protect their health and safety by ensuring
that those responsible for a reliable and affordable supply of
electricity are answerable to the people of this State.
  Fourth--That Section 11 is added to Article XII to read:
      SEC. 11.  The provisions of this article restate all related
provisions of the Constitution in effect immediately prior to the
effective date of this amendment and make no substantive change.
  Legislature of the State of California at its 2001-02
Regular Session commencing on the fourth day of December 2000,
two-thirds of the membership of each house concurring, hereby
proposes to the people of the State of California that the
Constitution of the State be adding Section 2.5 to Article XVI
thereof, to read:
      SEC. 2.5.  (a) Notwithstanding any other provision of this
Constitution, or any bond act to the contrary, the Legislature may
authorize the use of surplus funds, derived pursuant to any veterans'
farm and home purchase act, for the acquisition, construction, or
rehabilitation of transitional and long-term housing for homeless
veterans, including support services and administration.
   (b) For purposes of this section:
   (1) "Surplus funds" means funds derived from any veterans' farm
and home purchase act that are not needed to meet legal obligations
under that act and exceed the amounts needed for the implementation
under that act of a farm and home purchase program, the repayment of
bondholders, the operation of the program, or related insurance
programs.
   (2) "Veterans' farm and home purchase act" means a measure
approved by the state electorate pursuant to which general obligation
bonds are issued and sold to fund loans to veterans for the purchase
of farms or homes.                                ____
CORRECTIONS Title -- Lines 3,4,5,& 6.  Digest -- Pages 1 & 2.
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