BILL NUMBER: ACA 12 AMENDED BILL TEXT AMENDED IN SENATE AUGUST 22, 2002 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, the Public Utilities Commission, local government, and state officers, as defined, from allowing any institution that is not subject to the exclusive authority of the people,through the state's agencies or political subdivisions, from owning, operating, controlling, or managingto own, operate, control, or manage any public utilityassetelectric transmission facility . 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, 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, 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, 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 Authority, the Electricity Oversight Board, joint powers agencies, or other entities as directed by the Legislature, 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, 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, the Public Utilities Commission, nor local government, may allow the ownership, operation, control, or management of any public utilityassetelectric transmission facility 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. 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 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 utilityassetelectric transmission facility 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.