BILL NUMBER: AB 1082	AMENDED
	BILL TEXT

	AMENDED IN SENATE   JUNE 20, 2000
	AMENDED IN SENATE   JUNE 6, 2000
	AMENDED IN SENATE   APRIL 13, 2000
	AMENDED IN ASSEMBLY   MAY 12, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Assembly Members Calderon and Maddox

                        FEBRUARY 25, 1999

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1082, as amended, Calderon.  Public utilities:  stocks and
security transactions.
   The Public Utilities Act generally exempts from certain provisions
of the 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 or any portion
thereof.  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, unless
the corporation secures the financing by pledging a plant or assets.
The bill would make a related statement of legislative intent.
   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 this act 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 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 
amount   price  that may be charged for a specific
service, or are not limited.
   (2) Notwithstanding paragraph (1), these utilities shall remain
subject to Section 817, that provision of Section 820 regarding
contracts, Section 824,  and  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.