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 managing  to own, operate,
control, or manage  any public utility  asset 
 electric 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 utility  asset   electric 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 utility  asset   electric
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.