BILL NUMBER: SBX1 23	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Soto

                        JANUARY 30, 2001

   An act to amend Section 1245.250 of the Code of Civil Procedure,
to amend Section 56036 of, to repeal Sections 56129, 56130, 56131,
and 56875 of, the Government Code, to amend Sections 11531, 11652,
and 15701 of, and to repeal Sections 11643.1 and 15762.1 of the
Public Utilities Code, relating to public power districts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 23, as introduced, Soto.  Public power districts.
   (1) Existing law, relating to the acquisition of property by the
exercise of eminent domain by a public entity, provides that, if the
taking is by a local public entity and the property is electric, gas,
or water public utility property, the resolution of necessity of the
governing body of the local public agency creates a rebuttable
presumption that the required conditions for the exercise of eminent
domain are true, and that the presumption is a presumption affecting
the burden of proof.
   This bill would delete that presumption.
   (2) Existing law establishes the procedures and requirements for
the organization and reorganization of special districts, generally,
in the Cortese-Knox-Hertzberg Local Government Reorganization Act of
2000.  Existing law also requires that, if a service area that is
furnished gas or electric service by a public utility becomes part
of, or is formed into, a district authorized to furnish gas or
electric service, the district may not furnish that service without
approval of the local agency formation commission and the voters of
an election.  Existing law specifically provides for the formation of
municipal utility districts and public utility districts.
   This bill would specifically remove municipal utility districts
and public utility districts from the application of the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
and delete the local agency formation commission and voter approval
requirements discussed above.  The bill would provide that laws
governing municipal utility districts and public utility districts,
respectively, are the sole and exclusive authority and procedure for
the initiation, conduct, and completion of the organization of
changes to, and reorganization of municipal utility districts and
public utility districts.  The bill would make various conforming
changes.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.  This act shall be known and may be citied as the Fair
Citizen Access to Public Power Act.
  SEC. 2.  The Legislature finds and declares that in order to
furnish the citizens of California with reliable, affordable
electrical power, to ensure sufficient power reserves, to assure
stability and rationality in California's electricity market, to
encourage energy efficiency and conservation as well as the use of
renewable energy resources, and to protect the public health,
welfare, and safety, the state needs to streamline the process for
forming public power districts.
  SEC. 3.  Section 1245.250 of the Code of Civil Procedure is amended
to read:
   1245.250.  (a) Except as otherwise provided by statute, a
resolution of necessity adopted by the governing body of the public
entity pursuant to this article conclusively establishes the matters
referred to in Section 1240.030.
   (b)  If the taking is by a local public entity, other than
a sanitary district exercising the powers of a county water district
pursuant to Section 6512.7 of the Health and Safety Code, and the
property is  electric, gas, or water public utility property, the
resolution of necessity creates a rebuttable presumption that the
matters referred to in Section 1240.030 are true.  This presumption
is a presumption affecting the burden of proof.
   (c)  If the taking is by a local public entity and the
property described in the resolution is not located entirely within
the boundaries of the local public entity, the resolution of
necessity creates a presumption that the matters referred to in
Section 1240.030 are true.  This presumption is a presumption
affecting the burden of producing evidence.  
   (d) For the purposes of subdivision (b), a taking by the State
Reclamation Board for the Sacramento and San Joaquin Drainage
District is not a taking by a local public entity. 
  SEC. 4.  Section 56036 of the Government Code is amended to read:
   56036.  (a) "District" or "special district" means an agency of
the state, formed pursuant to general law or special act, for the
local performance of governmental or proprietary functions within
limited boundaries.  "District" or "special district" includes a
county service area, but excludes all of the following:
   (1) The state.
   (2) A county.
   (3) A city.
   (4) A school district or a community college district.
   (5) A special assessment district.
   (6) An improvement district.
   (7) A community facilities district formed pursuant to the
Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing
with Section 53311) of Part 1 of Division 2 of Title 5.
   (8) A permanent road division formed pursuant to Article 3
(commencing with Section 1160) of Chapter 4 of Division 2 of the
Streets and Highways Code.
   (9) An air pollution control district or an air quality
maintenance district.
   (10) A service zone of a fire protection district.  
   (11) A municipal utility district.
   (12) A public utility district. 
   (b) Except as otherwise provided in paragraph (1), each of the
entities listed in paragraph (1) is a "district" or a "special
district" for the purposes of this division.
   (1) For the purposes of Chapter 1 (commencing with Section 57000)
to Chapter 7 (commencing with Section 57175), inclusive, of Part 4 or
Part 5 (commencing with Section 57300), none of the following
entities is a "district" or a "special district:"
   (A) A unified or union high school library district.
   (B) A bridge and highway district.
   (C) A joint highway district.
   (D) A transit or rapid transit district.
   (E) A metropolitan water district.
   (F) A separation of grade district. 
   (G) A municipal utility district.
   (H) A public utility district. 
   (2) Any proceedings pursuant to Part 4 (commencing with Section
57000) for a change of organization involving an entity described in
paragraph (1) shall be conducted pursuant to the principal act
authorizing the establishment of that entity.
   (c) Except as otherwise provided in paragraph (1), each of the
entities listed in paragraph (1) is a "district" or "special district"
for purposes of this division.
   (1) For the purposes of Chapter 1 (commencing with Section 57000)
to Chapter 7 (commencing with Section 57175), inclusive, of Part 4 or
Part 5 (commencing with Section 57300), none of the following
entities is a "district" or "special district" if the commission of
the principal county determines, in accordance with Sections 56127
and 56128, that the entity is not a "district" or "special district."

   (A) A flood control district.
   (B) A flood control and floodwater conservation district.
   (C) A flood control and water conservation district.
   (D) A conservation district.
   (E) A water conservation district.
   (F) A water replenishment district.
   (G) The Orange County Water District.
   (H) A California water storage district.
   (I) A water agency.
   (J) A county water authority or a water authority.
   (2) If the commission determines that an entity described in
paragraph (1) is not a "district" or "special district," any
proceedings pursuant to Part 4 (commencing with Section 57000) for a
change of organization involving the entity shall be conducted
pursuant to the principal act authorizing the establishment of that
entity.
  SEC. 5.  Section 56129 of the Government Code is repealed.

   56129.  (a) If a public utility has been granted a certificate of
public convenience and necessity authorizing and requiring it to
furnish gas or electric service within a certain service area and, as
a result of a change of organization or a reorganization, territory
consisting of all, or any part, of that service area becomes a part
of, or is formed into, a district authorized by its principal act to
furnish gas or electric service, the district shall not furnish that
service within the territory except upon approval by both of the
following:
   (1) The commission after receipt and consideration of the report
of the Public Utilities Commission made as provided in Section 56131.

   (2) The voters within the territory, given at an election as
provided in Section 56130.
   (b) If both of those approvals are given, upon assumption of
service by the district the public utility may at any time thereafter
withdraw service within the territory, unless otherwise ordered by
the Public Utilities Commission.
   (c) "Gas or electric service," as used in this section and in
Sections 56130, 56131, and 56875, means the distribution and sale for
any purpose, other than for the purpose of resale, of gas or
electricity for light, heat, or power. 
  SEC. 6.  Section 56130 of the Government Code is repealed.

   56130.  Voter approval within the territory, as required by
Section 56129, shall be given at an election.  The question submitted
at the election shall identify the district, designate the kind of
service to be furnished, identify the territory within which the
service is proposed to be furnished, and state the name of the public
utility presently authorized to furnish the gas or electric service
within the territory.
   The district shall not furnish the gas or electric service, as
defined in subdivision (c) of Section 56129, within the territory
unless the question of furnishing the gas or electric service has
been submitted to the voters at an election called, held, and
conducted within the territory and a majority of the votes cast upon
the question are in favor of the service.  The board of supervisors
or the legislative body of the conducting district may submit the
question at the election called upon the question of confirmation of
an order of change of organization or reorganization, or the board of
directors of the district may submit the question of the gas or
electric service at a special election called after completion of the
proceedings for a change of organization or a reorganization.  The
question of the service shall be submitted as a separate proposition
at any election within the territory and shall be voted upon only by
qualified voters within the territory.  If the question is defeated
at the election, for one year thereafter no petition requesting the
gas or electric service may be filed and no new election called upon
the question. 
  SEC. 7.  Section 56131 of the Government Code is repealed.

   56131.  The executive officer shall file with the Public Utilities
Commission a certified copy of any proposal for a change of
organization or a reorganization which provides, as a part of the
change of organization or reorganization, that gas or electric
service, as defined in subdivision (c) of Section 56129, be furnished
by a district within any of the territory affected by the change of
organization or reorganization.  The certified copy need not contain
any signatures  if the proposal is by petition.  After that change of
organization or reorganization has been ordered, the clerk of the
district shall file with the Public Utilities Commission a certified
copy of any ordinance, resolution, or order made by the board of
directors of a district proposing to furnish gas or electric service,
as defined in subdivision (c) of Section 56129, within the
territory.
   After that filing, the Public Utilities Commission shall cause an
investigation to be made and may conduct any hearings in connection
with the proposal.  Upon completion of the investigation and not
later than 90 days after the date of the filing, the Public Utilities
Commission shall make a report to the commission stating whether, in
the opinion of the Public Utilities Commission, the proposed service
by the district within the territory will substantially impair the
ability of the public utility to provide adequate service at
reasonable rates within the remainder of the service area of the
public utility.
   The secretary of the Public Utilities Commission shall immediately
file a certified copy of that report with the executive officer.

  SEC. 8.  Section 56875 of the Government Code is repealed.

   56875.  If any sufficient petition or resolution of application
shall propose, as a part of the petition or resolution of
application, that the district shall furnish gas or electric service,
as provided in Sections 56129 to 56131, inclusive, a certified copy
of the report of the Public Utilities Commission shall be on file
with the executive officer prior to setting that petition or
resolution for public hearing by the commission. 
  SEC. 9.  Section 11531 of the Public Utilities Code is amended to
read:
   11531.  A municipal utility district may be created as provided in
this division and when so created may exercise the powers herein
granted.  
   Notwithstanding Division 3 (commencing with Section 56000, of
Title 5 of the Government Code, this division provides the sole and
exclusive authority and procedure for the initiation, conduct, and
completion of the organization of, changes to, and reorganization of
municipal utility districts. 
  SEC. 10.  Section 11643.1 of the Public Utilities Code is repealed.
  
   11643.1.  Within five days after the district formation election
has been called, the legislative body which has called the election
shall transmit, by registered mail, a written notification of the
election call to the executive officer of the local agency formation
commission of the county or principal county in which the territory
or major portion of the territory of the proposed district is
located.  Such written notice shall include the name and a
description of the proposed district, and may be in the form of a
certified copy of the resolution adopted by the legislative body
calling the district formation election.
   The executive officer, within five days after being notified that
a district formation election has been called, shall submit to the
commission, for its approval or modification, an impartial analysis
of the proposed district formation.
   The impartial analysis shall not exceed 500 words in length and
shall include a specific description of the boundaries of the
district proposed to be formed.
   The local agency formation commission, within five days after the
receipt of the executive officer's analysis, shall approve or modify
the analysis and submit it to the officials in charge of conducting
the district formation election. 
  SEC. 11.  Section 11652 of the Public Utilities Code is amended to
read:
   11652.  The board of supervisors shall canvass the returns of each
public agency and each parcel of unincorporated territory, if any,
separately, and shall order and declare the district created and
established of the public agencies and territory in which a majority
of those who voted on the proposition voted in favor of the creation
of the district if the total number of voters in  such
  those  approving public agencies and territory is
not less than  two-thirds the number of   a
majority of the  voters within the district as first proposed
 who voted on the proposition  , according to the register
used at the election.
  SEC. 12.  Section 15701 of the Public Utilities Code is amended to
read:
   15701.  A district may be incorporated and managed in
unincorporated territory pursuant to this division and may exercise
the powers expressly granted.  
   Notwithstanding Division 3 (commencing with Section 56000) of
Title 5 of the Government Code, this division provides the sole and
exclusive authority and procedure for the initiation, conduct, and
completion of the organization of, changes to, and reorganization of
public utility districts. 
  SEC. 13.  Section 15762.1 of the Public Utilities Code is repealed.
  
   15762.1.  Within five days after the district formation election
has been called, the legislative body which has called the election
shall transmit, by registered mail, a written notification of the
election call to the executive officer of the local agency formation
commission of the county or principal county in which the territory
or major portion of the territory of the proposed district is
located.  Such written notice shall include the name and a
description of the proposed district, and may be in the form of a
certified copy of the resolution adopted by the legislative body
calling the district formation election.
   The executive officer, within five days after being notified that
a district formation election has been called, shall submit to the
commission, for its approval or modification, an impartial analysis
of the proposed district formation.
   The impartial analysis shall not exceed 500 words in length and
shall include a specific description of the boundaries of the
district proposed to be formed.
   The local agency formation commission, within five days after the
receipt of the executive officer's analysis, shall approve or modify
the analysis and submit it to the officials in charge of conducting
the district formation election.