BILL NUMBER: AB 2669	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 20, 2002

INTRODUCED BY   Assembly Member Maldonado

                        FEBRUARY 22, 2002

   An act to amend Section 829 of the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2669, as amended, Maldonado.  Public utilities: stocks and
security transactions.
   The Public Utilities Act generally exempts from provisions of that
act governing stocks and security transactions any person or
corporation that transacts no business subject to regulation under
the act, except performing services or delivering commodities for or
to public utilities or municipal or other public corporations
primarily for resale or use in serving the public. Notwithstanding
that general exemption, those provisions of the act governing stocks
and security transactions apply to any public utility if the Public
Utilities Commission finds that the application of those provisions
is required by the public interest.  The act authorizes the
commission to exempt any public utility or class of public utility
from those stock and security transaction provisions if it finds that
their application is not necessary in the public interest.
   This bill, except as specified, would exempt from those stock and
security transaction provisions a telephone corporation that is
regulated under a  price-cap regulatory structure, as defined
  new regulatory framework that utilizes a price-cap
index, price adjustment formula, or substantially similar mechanism
established by the commission  , unless the corporation secures
the financing by pledging a plant or assets.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  It is the intent of the Legislature that the amendments
to Section 829 of the Public Utilities Code made by the act adding
this section not hinder the commission's existing authority to
disallow imprudent expenses or capital expenditures of the utilities
under its jurisdiction, or the commission's authority to impute a
capital structure or cost of capital for utilities under its
jurisdiction.
  SEC. 2.  Section 829 of the Public Utilities Code is amended to
read:
   829.  (a) This article does not apply to a person or corporation
that transacts no business subject to regulation under this part,
except performing services or delivering commodities for or to public
utilities or municipal or other public corporations primarily for
resale or use in serving the public or any portion thereof but shall,
nevertheless, apply to any public utility if the commission finds,
in a proceeding to which the public utility is or may become a party,
that the application of this article is required by the public
interest.
   (b) (1) The requirements in this article for commission approval
of utility financing do not apply to a telephone corporation that is
regulated under a  price-cap regulatory structure 
 new regulatory framework that utilizes a price-cap index, price
adjustment formula, or substantially similar mechanism established by
the commission,  if the corporation does not pledge a plant or
assets to secure the financing.  However, this article shall continue
to apply to any telephone corporation that is also an electric or
gas corporation that is a public utility, as defined in Section 216.
 The term "price-cap regulatory structure," as used in this
paragraph, is a system under which rates are not set by means of a
rate base or rate-of-return form of regulation, but, instead, are
limited by a maximum price that may be charged for a specific
service, or are not limited. 
   (2) Notwithstanding paragraph (1), a telephone corporation as
described in this subdivision shall remain subject to Section 817,
that provision of Section 820 regarding contracts, Section 824, those
provisions of Section 826 and subdivision (a) of Section 827 that
impose penalties for disobeying statutory and constitutional
requirements, and Section 830.
   (3) Notwithstanding paragraph (1), the commission may reimpose any
or all of the requirements of this article for commission approval
of utility financing if the commission finds, in a proceeding to
which the public utility is or may become a party, that the
application of any or all of those requirements is required by the
public interest.
   (c) The commission may from time to time by order or rule, and
subject to those terms and conditions that may be prescribed in the
order or rule, exempt any public utility or class of public utility
from this article, or any portion of this article, if it finds that
the application of this article to a public utility or class of
public utility is not necessary in the public interest.