BILL NUMBER: AB 1234	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Pescetti

                        FEBRUARY 23, 2001

   An act to add Section 857 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1234, as introduced, Pescetti.  Public utilities:  natural gas.

   (1) Under existing law, no public utility may transfer or encumber
in whole or in part any property necessary or useful in the
performance of its duties to the public without prior authorization
from the Public Utilities Commission.
   This bill would require a gas corporation to put its gas gathering
lines, including existing lines and lines that have been retired but
are still functional, to auction by December 31, 2001.  The bill
would define a gathering line as a pipeline that transports liquid
hydrocarbons between multiple wells, testing facilities, treating and
production facilities, storage facilities, or custody transfer
facilities.  The bill would require the commission to determine the
manner, terms, and conditions of these auctions.  The bill would
require a gas corporation to obtain approval of the commission prior
to retiring any portion of its gas gathering or delivery system.
Because a violation of the Public Utilities Act is a crime under
existing provisions of law, the bill would create a state-mandated
local program by expanding the definition of a crime.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 857 is added to the Public Utilities Code, to
read:
   857.  (a) A gas corporation shall put its gas gathering lines to
auction by December 31, 2001.  The auction shall include both
existing gathering lines and lines that have been retired but are
still functional. For purposes of this section a "gathering line"
means a pipeline that transports liquid hydrocarbons between multiple
wells, testing facilities, treating and production facilities,
storage facilities, or custody transfer facilities.
   (b) The commission shall determine the manner, terms, and
conditions of these auctions.
   (c) A gas corporation shall obtain the approval of the commission
prior to retiring any portion of its gas gathering or delivery
system.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.