BILL NUMBER: AB 736	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jerome Horton

                        FEBRUARY 17, 2005

   An act to amend Section 851 of the Public Utilities Code, relating
to the regulation of public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 736, as introduced, Jerome Horton.   Public utilities:
regulation.
   Existing law prohibits any public utility other than a common
carrier by railroad, as defined, from selling, leasing, assigning,
mortgaging, or otherwise disposing of or encumbering the whole or any
part of specified property necessary or useful in the performance of
the public utility's duties to the public, among other requirements.
Existing law makes void every sale, lease, assignment, mortgage,
disposition, encumbrance, merger, or consolidation made other than in
accordance with the order of the commission authorizing it.
   This bill would make technical, nonsubstantive changes to that
provision.
   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.  Section 851 of the  Public Utilities Code  is amended
to read:
   851.  No public utility other than a common carrier by railroad
subject to Part I of the Interstate Commerce Act (Title 49, U.S.C.)
shall sell, lease, assign, mortgage, or otherwise dispose of or
encumber the whole or any part of its railroad, street railroad,
line, plant, system, or other property necessary or useful in the
performance of its duties to the public, or any franchise or permit
or any right thereunder, nor by any means whatsoever, directly or
indirectly, merge or consolidate its railroad, street railroad, line,
plant, system, or other property, or franchises or permits or any
part thereof, with any other public utility, without first having
secured from the commission an order authorizing it so to do. Every
 such  sale, lease, assignment, mortgage,
disposition, encumbrance, merger, or consolidation made other than in
accordance with the order of the commission authorizing it is void.
The permission and approval of the commission to the exercise of a
franchise or permit under Article 1 (commencing with Section 1001) of
Chapter 5 of this part, or the sale, lease, assignment, mortgage, or
other disposition or encumbrance of a franchise or permit under this
article shall not revive or validate any lapsed or invalid franchise
or permit, or enlarge or add to the powers or privileges contained
in the grant of any franchise or permit, or waive any
forfeiture.Nothing in this section shall prevent the sale, lease,
encumbrance or other disposition by any public utility of property
 which   that  is not necessary or useful
in the performance of its duties to the public, and any disposition
of property by a public utility shall be conclusively presumed to be
of property  which   that  is not useful or
necessary in the performance of its duties to the public, as to any
purchaser, lessee or encumbrancer dealing with  such
  that  property in good faith for value  ;
  , provided  , however,  that
nothing in this section shall apply to the interchange of equipment
in the regular course of transportation between connecting common
carriers.