BILL NUMBER: ACA 12 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2002
AMENDED IN SENATE AUGUST 8, 2002
AMENDED IN SENATE MAY 23, 2002
INTRODUCED BY Assembly Member 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 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, Vargas. 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 declare that a reliable, adequate, and
affordable supply of electricity is essential to the health, safety,
and welfare of the people of the state and that the people of the
state have a right to require that those responsible for a reliable,
adequate, and affordable supply of electricity be answerable to them.
The measure would prohibit the Legislature ,
and the Public Utilities Commission , local
government, and state officers, as defined, 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 , through the state's agencies or
political subdivisions, from owning, operating, controlling, or
managing any public utility asset .
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.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
WHEREAS, The health , safety, and welfare of the people
of this State cannot be protected without the guarantee of a
reliable , adequate, and affordable supply of electricity;
and
WHEREAS, A reliable, adequate, and affordable supply of
electricity is critical to the health of this state's economy; and
WHEREAS, The people of this State have the exclusive right to
protect their health and safety , safety, and
welfare by ensuring the availability of a reliable ,
adequate, 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 through local government pursuant to Section
9 of Article XI of the California Constitution ; and
WHEREAS, The Legislature or the Public Utilities
Commission , the Public Utilities Commission, or local
government 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 the
California Power Authority, the Electricity Oversight Board, joint
powers agencies, or other entities as directed by the
Legislature or the Public Utilities Commission
, the Public Utilities Commission, or local government ,
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
, the Public Utilities Commission, nor local
government 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
or to local government ; 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, local government,
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 Legislature, the Public Utilities
Commission, nor local government, may allow the ownership, operation,
control, or management of any public utility asset by any
institution, public or private, not subject to the exclusive
authority of the people of this State and their agents or of
local government ; 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 or of local government
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.
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.
SEC. 9. A reliable, adequate, and affordable supply of
electricity is essential to the health, safety, and welfare of the
people of this State. The people of this State have the right to
protect their health, safety, and welfare by requiring that those
responsible for a reliable, adequate, and affordable supply of
electricity be answerable to them. This right may not be
compromised, abridged, or otherwise diminished.
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.
SEC. 10. No person or entity, including, but not limited to,
the Legislature, the Public Utilities Commission, local government,
and state officers, as defined in subdivision (f) of Section 14 of
Article V, may allow the ownership, operation, control, or management
of any public utility asset by any institution, public or private,
that is not subject to the exclusive authority of the people of this
State through the State's agencies or political subdivisions. The
State's political subdivisions include, for this purpose, any city,
city and county, county, irrigation district, or other legally
authorized local governmental entity with jurisdictional boundaries.
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.