BILL NUMBER: SBX1 33	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 5, 2001
	AMENDED IN SENATE  FEBRUARY 15, 2001
	AMENDED IN SENATE  FEBRUARY 14, 2001

INTRODUCED BY    Senators Burton, Karnette, Perata, Sher, and
Speier   Senator Machado 

                        FEBRUARY 6, 2001

   An act  to add Section 330.5 to the Public Utilities Code,
relating to electric power   relating to public
utilities  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 33, as amended,  Burton   Machado  .
 Electric power:  transmission facilities:  purchase
  Gas corporation public utility:  eminent domain 
. 
   Under existing law, various entities have the power to exercise
eminent domain for separately designated purposes.  
   This bill, in addition, would authorize a gas corporation public
utility, until June 1, 2002, to exercise the power of eminent domain
for the purpose of competing with another entity in the offering of
natural gas and services related to natural gas.  The bill would
prohibit the Public Utilities Commission from making a finding on a
petition filed by a gas corporation for those purposes. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and other specified entities.
   This bill would authorize the Governor to formulate a plan,
through negotiation with representatives of electrical corporations,
as defined, for the state to purchase the transmission facilities
owned by electrical corporations in California that were under the
operational control of the Independent System Operator as of January
1, 2001.
   The bill would require the Governor to submit the plan to the
Legislature for its consideration for subsequent adoption by statute
and any necessary additional implementing legislation, including (1)
authority for the State Treasurer to issue revenue bonds to finance
the acquisition by the state of the transmission facilities of
electrical corporations and to finance necessary improvements and
expansion of the state's electrical transmission system and (2)
authority for the state to contract with electrical corporations for
the ongoing maintenance, repair, construction, expansion, or
improvement of the transmission facilities purchased by the state
under the adopted plan.  If a plan is formulated, the bill would
require the plan to include provisions to recover General Fund costs
associated with the formulation of the plan. 
   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.   Section 330.5 is added to the Public  
  SECTION 1.  (a) Notwithstanding Section 625 of the Public Utilities
Code, from the effective date of this act to June 1, 2002,
inclusive, a gas corporation public utility may exercise the power of
eminent domain, including, but not limited to, any authority
provided by Title 7 (commencing with Section 1230.010) of Part 3 of
the Code of Civil Procedure, to condemn any property for the purpose
of competing with another entity in the offering of natural gas and
services related to natural gas.
   (b) The Public Utilities Commission may not make a finding on a
petition or complaint pending on the effective date of this act that
was filed pursuant to Section 625 of the Public Utilities Code by a
gas corporation public utility to condemn any property for the
purpose of competing with another entity in the offering of natural
gas and services related to natural gas. The Public Utilities
Commission shall dismiss the petition or complaint.
   (c) This act shall become inoperative on June 1, 2002, and, as of
January 1, 2003, is repealed, unless a later enacted statute that is
enacted before January 1, 2003, deletes or extends the dates on which
it becomes inoperative and is repealed.   Utilities
Code, to read:
   330.5.  (a) The Governor may formulate a plan, through negotiation
with representatives of electrical corporations, as defined in
Section 218, for the state to purchase the transmission facilities
owned by electrical corporations in California that were under the
operational control of the Independent System Operator as of January
1, 2001.
   (b) The Governor shall submit the plan formulated under
subdivision (a) to the Legislature for its consideration for
subsequent adoption by statute and any necessary additional
implementing legislation, which may include, but need not be limited
to, all of the following:
   (1) Authority for the State Treasurer to issue revenue bonds to
finance the acquisition by the state of the transmission facilities
of electrical corporations and to finance necessary improvements and
expansion of the state's electrical transmission system.
   (2) Authority for the state to contract with electrical
corporations for the ongoing maintenance, repair, construction,
expansion, or improvement of the transmission facilities purchased by
the state under the adopted plan.
   (c) If a plan is formulated, the plan shall include provisions to
recover General Fund costs associated with the formulation of the
plan.