BILL NUMBER: AB 1398 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 28, 2000
PASSED THE SENATE AUGUST 25, 2000
AMENDED IN SENATE JUNE 15, 2000
AMENDED IN ASSEMBLY JANUARY 6, 2000
AMENDED IN ASSEMBLY JUNE 10, 1999
INTRODUCED BY Assembly Member Papan
FEBRUARY 26, 1999
An act to repeal and add Sections 1756, 1757, 1757.1, and 1758, of
the Public Utilities Code, and to amend Section 1.5 of Chapter 886
of the Statutes of 1998, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1398, Papan. Public utilities: water corporations: judicial
review.
(1) Existing law authorizes any aggrieved party to petition the
court of appeal or the Supreme Court, within specified time limits,
to a review of a decision of the Public Utilities Commission.
Existing law also provides that, until January 1, 2001, a review of
commission decisions pertaining solely to water corporations are only
by petition for writ of review in the Supreme Court, except that
review of complaint or enforcement proceedings may be in the court of
appeal or the Supreme Court.
This bill would indefinitely extend the provision related to
review of decisions pertaining to water corporations.
(2) Existing law provides that no new or additional evidence may
be introduced upon review of a commission by the court. In a
complaint or enforcement proceeding, or in a ratemaking or licensing
decision of specific application that is addressed to particular
parties, the review by the court does not extend further than to
determine, on the basis of the entire record whether certain events
occurred. Existing law also provides that, until January 1, 2001,
this standard of review does not apply to ratemaking or licensing
decisions of specific application addressed solely to water
corporations.
This bill would indefinitely extend this exemption from the
standard of review for specified decisions relating solely to water
corporations.
(3) Existing law provides that, except for a specified review
process, review by a court does not extend further than to determine,
on the basis of the entire record whether any of the following
occurred: abuse of discretion, violation of procedure required by
law, lack of jurisdiction, not factual support, fraud, or a
constitutional violation. Existing law also provides, until January
1, 2001, in reviewing decisions pertaining solely to water
corporations, the review extends no further than to determine whether
the commission has regularly pursued its authority, including a
determination whether the order or decision under review violates any
right of the petitioner under the United States Constitution or the
California Constitution.
This bill would indefinitely extend this standard of review for
water corporations.
(4) Existing law provides that, until January 1, 2001, the Supreme
Court will grant expedited consideration to any petition alleging
that the court of appeal has assumed jurisdiction to review a
commission decision pertaining solely to a water corporation over
which the court of appeal has no jurisdiction.
This bill would indefinitely extend that provision.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1756 is added to the Public Utilities Code:
1756. (a) Within 30 days after the commission issues its decision
denying the application for a rehearing, or, if the application was
granted, then within 30 days after the commission issues its decision
on rehearing, or at least 120 days after the application is granted
if no decision on rehearing has been issued, any aggrieved party may
petition for a writ of review in the court of appeal or the Supreme
Court for the purpose of having the lawfulness of the original order
or decision or of the order or decision on rehearing inquired into
and determined. If the writ issues, it shall be made returnable at a
time and place specified by court order and shall direct the
commission to certify its record in the case to the court within the
time specified.
(b) The petition for review shall be served upon the executive
director of the commission either personally or by service at the
office of the commission.
(c) For purposes of this section, the issuance of a decision or
the granting of an application shall be construed to have occurred on
the date when the commission mails the decision or grant to the
parties to the action or proceeding.
(d) The venue of a petition filed in the court of appeal pursuant
to this section shall be in the judicial district in which the
petitioner resides. If the petitioner is a business, venue shall be
in the judicial district in which the petitioner has its principal
place of business in California.
(e) Any party may seek from the Supreme Court, pursuant to
California Rules of Court, an order transferring related actions to a
single appellate district.
(f) For purposes of this section, review of decisions pertaining
solely to water corporations shall only be by petition for writ of
review in the Supreme Court, except that review of complaint or
enforcement proceedings may be in the court of appeal or the Supreme
Court.
(g) No order or decision arising out of a commission proceeding
under Section 854 shall be reviewable in the court of appeal pursuant
to subdivision (a) if the application for commission authority to
complete the merger or acquisition was filed on or before December
31, 1998, by two telecommunications-related corporations including at
least one which provides local telecommunications service to over
one million California customers. These orders or decisions shall be
reviewed pursuant to the Public Utilities Code in existence on
December 31, 1998.
SEC. 2. Section 1756 of the Public Utilities Code, as added by
Section 10.5 of Chapter 886 of the Statutes of 1998, is repealed.
SEC. 3. Section 1757 is added to the Public Utilities Code, to
read:
1757. (a) No new or additional evidence shall be introduced upon
review by the court. In a complaint or enforcement proceeding, or in
a ratemaking or licensing decision of specific application that is
addressed to particular parties, the review by the court shall not
extend further than to determine, on the basis of the entire record
which shall be certified by the commission, whether any of the
following occurred:
(1) The commission acted without, or in excess of, its powers or
jurisdiction.
(2) The commission has not proceeded in the manner required by
law.
(3) The decision of the commission is not supported by the
findings.
(4) The findings in the decision of the commission are not
supported by substantial evidence in light of the whole record.
(5) The order or decision of the commission was procured by fraud
or was an abuse of discretion.
(6) The order or decision of the commission violates any right of
the petitioner under the Constitution of the United States or the
California Constitution.
(b) Nothing in this section shall be construed to permit the court
to hold a trial de novo, to take evidence other than as specified by
the California Rules of Court, or to exercise its independent
judgment on the evidence.
(c) Notwithstanding subdivision (a), the standard of review in
this section shall not apply to ratemaking or licensing decisions of
specific application addressed solely to water corporations.
SEC. 4. Section 1757 of the Public Utilities Code, as added by
Section 12.5 of Chapter 886 of the Statutes of 1998, is repealed.
SEC. 5. Section 1757.1 is added to the Public Utilities Code, to
read:
1757.1. (a) In any proceeding other than a proceeding subject to
the standard of review under Section 1757, review by the court shall
not extend further than to determine, on the basis of the entire
record which shall be certified by the commission, whether any of the
following occurred:
(1) The order or decision of the commission was an abuse of
discretion.
(2) The commission has not proceeded in the manner required by
law.
(3) The commission acted without, or in excess of, its powers or
jurisdiction.
(4) The decision of the commission is not supported by the
findings.
(5) The order or decision was procured by fraud.
(6) The order or decision of the commission violates any right of
the petitioner under the Constitution of the United States or the
California Constitution.
(b) In reviewing decisions pertaining solely to water
corporations, the review shall not be extended further than to
determine whether the commission has regularly pursued its authority,
including a determination whether the order or decision under review
violates any right of the petitioner under the Constitution of the
United States or this state.
(c) No new or additional evidence shall be introduced upon review
by the court. The findings and conclusions of the commission on
findings of fact shall be final and shall not be subject to review
except as provided in this article. The questions of fact shall
include ultimate facts and findings and conclusions of the commission
on reasonableness and discrimination.
SEC. 6. Section 1757.1 of the Public Utilities Code, as added by
Section 14.5 of Chapter 886 of the Statutes of 1998, is repealed.
SEC. 7. Section 1758 is added to the Public Utilities Code, to
read:
1758. (a) The commission and each party to the action or
proceeding before the commission may appear in the review proceeding.
Upon the hearing the Supreme Court or court of appeal shall enter
judgment either affirming or setting aside the order or decision of
the commission.
(b) The provisions of the Code of Civil Procedure relating to
writs of review shall, so far as applicable and not in conflict with
this part, apply to proceedings instituted in the Supreme Court or
court of appeal under this article.
(c) Under this article, the Supreme Court may review decisions of
the court of appeal in the manner provided for other civil actions.
(d) The Supreme Court shall grant expedited consideration to any
party or commission petition alleging that the court of appeal has
assumed jurisdiction to review a commission decision pertaining
solely to water corporations over which the court of appeal has no
jurisdiction.
SEC. 8. Section 1758 of the Public Utilities Code, as added by
Section 15.5 of Chapter 886 of the Statutes of 1998, is repealed.
SEC. 9. Section 1.5 of Chapter 886 of the Statutes of 1998 is
amended to read.
Sec. 1.5. (a) The Legislature finds and declares that the
conversion of the energy, transportation, and telecommunications
industries from traditional regulated markets to competitive markets
necessitates a change in the judicial review of Public Utilities
Commission decisions that pertain to those industries. The
Legislature finds that the activities of the energy,
telecommunications, and transportation industries will require
expanded access to the court system at all levels. The Legislature
finds that uniformity of evolving decisional law and judicial economy
will be achieved by providing for appellate review of certain Public
Utilities Commission decisions. The Legislature further finds and
declares that inasmuch as the water supply industry continues to
operate in a traditional, noncompetitive utility market, that changes
in judicial review of competitive utility markets are inappropriate
in their application to Public Utilities Commission decisions and
proceedings that pertain to water corporations.
(b) It is the intent of the Legislature in enacting the judicial
review provisions of this act to, in part, establish the manner and
scope of review taken from decisions of the Public Utilities
Commission. It is further the intent of the Legislature to conform
judicial review of the Public Utilities Commission decisions that
pertain to utility service providers with competitive markets to be
consistent with judicial review of the other state agencies. It is
the intent of the Legislature to, among other things, overrule Camp
Meeker Water System, Inc. v. Public Utilities Commission, 51 Cal.3d
845, as it pertains only to decisions affecting the energy,
transportation, and communications industries, but to leave that
decision in place as it pertains to water corporations. Further, it
is the intent of the Legislature that decisions by the commission
pertaining to the energy, transportation, and communications
industries be subject to review on grounds similar to those of other
state agencies.