BILL NUMBER:  AB 1082
  VETOED	DATE: 09/30/2000




Sep 30 2000

To Members of the Assembly:

I am returning Assembly Bill 1082 without my signature.

This measure permits telephone companies that are regulated under a
"price cap" regulatory structure to issue stock or debt unless the
California Public Utilities Commission (PUC) can prove that such an
issuance would not be in the public interest.  Current law requires
telephone companies to obtain PUC approval before issuing stock or
long-term debt with a maturity date of more than 12 months.

AB 1082 duplicates existing PUC procedures that allow the PUC to
exempt telephone companies on a case-by-case basis from regulatory
review of their financing proposals.

It also places ratepayers at risk if local telephone companies make
bad financial decisions and must seek additional forms of revenue to
offset the losses.  It is important that local telephone companies
obtain state review before issuing stock or debt so the public can be
protected from imprudent corporate finance decisions.

Sincerely,



GRAY DAVIS