BILL NUMBER: AB 1658	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Utilities and Commerce (Wright (Chair),
Pescetti (Vice Chair), Calderon, Campbell, Cardenas, Frusetta,
Mazzoni, Reyes, Vincent, and Wesson)

                        MARCH 11, 1999

   An act to amend Section 830.11 of the Penal Code, to amend
Sections 308.5, 309.5, 309.6, 314.5, 421, 454, 454.2, 458, 459,
461.5, 486, 488, 491, 493, 494, 527, 530, 556, 559, 703, 728.5, 730,
732, 733, 740.8, 763, 765.5, 788, 853, 874, 882, 1701.1, 1904, 2881,
2881.1, 2889.8, 4006, 4007, 4021, 4458, 5001.5, 5002, 5003.2, 5009,
5012, 5102, 5109, 5112, 5113, 5133, 5191, 5259.5, 5326, 5328, 5329,
5331, 7531.5, 7711, and 9202 of, to add Sections 224.8, 248, 3950,
and 5137 to, and to repeal Sections 3, 454.5, 457, 460, 461, 496,
526, 557, 706, 707, 731, 739.9, 746, 747, 763.1, 764, 765, 769,
769.5, 1823, 1824, 2851, 2882, 2882.5, 5195, 7532, 7532.5, 7902, and
7902.5 of, and to repeal Chapter 4 (commencing with Section 2739) of
Part 2 of Division 1 of, the Public Utilities Code, and to amend
Section 7232 of the Revenue and Taxation Code, and to amend Sections
34505.6, 34601, and 34622 of the Vehicle Code, relating to public
utilities, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1658, as introduced, Committee on Utilities and Commerce.
Public utilities.
   (1) Existing law requires the Public Utilities Commission to
prepare reports on a one-time basis to the Legislature on various
regulatory issues within the jurisdiction of the commission.
   This bill would make legislative findings that the purposes of
this bill are to eliminate obsolete provisions of the Public
Utilities Code by eliminating reports that were required on a
one-time basis and other obsolete provisions, to clarify existing law
to reflect the internal reorganization of the Public Utilities
Commission (the commission) and recent statutory enactments, to
update the Public Utilities Code in light of regulatory changes
mandated by state and federal laws, and to clarify the continuing
authority of the commission.
   (2) Existing law provides specified peace officer authority to
persons employed by the Safety and Enforcement Division of the
commission as investigators and investigator supervisors who are
designated by the director of the division and approved by the
commission.
   This bill would provide this peace officer authority to persons
employed as investigators or investigator supervisors of the Consumer
Services Division or the Rail Safety and Carrier Division of the
commission who are designated by the commission's executive director
and approved by the commission.
   (3) Existing provisions of the Public Utilities Code authorize the
commission to regulate railroads.  Federal law gives exclusive
jurisdiction to the federal Surface Transportation Board to regulate
rates, classifications, rules, and other specified activities over
most intrastate railroad transportation.
   This bill would make inapplicable any provision of the Public
Utilities Act relating to railroad transportation that is in conflict
with that federal law.
   The bill would define "network railroad transportation" to mean
railroad transportation subject to the jurisdiction of the federal
Surface Transportation Board pursuant to that federal law, and would
amend various provisions of the Public Utilities Code to specify that
they do not apply to "network railroad transportation," and would
make related changes.
   (4) Existing law provides for the Public Utilities Ratepayer
Advocate Fund, but does not provide a source of funding for that
fund.
   This bill would require, in the annual Budget Act, that funds be
transferred from the Public Utilities Commission Reimbursement
Account to the Public Utilities Ratepayer Advocate Fund.
   (5) Existing law requires the commission to annually determine a
fee to be paid by railroad corporations for state funded railroad
investigation and enforcement activities, as specified.  Existing law
limits the expenditure of the fees to specified activities relating
to railroads and requires the commission to submit a detailed budget
to the Legislature for those expenditures each fiscal year.
   This bill would limit those expenditures to employees actually
performing the specified services.  The bill would include, until
January 1, 2002, as a permissible expenditure, the pro rata share of
the commission's overhead costs for rent, utilities, office
furniture, office equipment, and office supplies in implementing the
budgeted activities.  The bill would require the commission to expend
funds budgeted for the salaries, per diem, and travel expenses of
railroad-safety personnel, as specified, unless, by statute, the
commission is specifically prohibited from expending all or part of
the funds.
   (6) Existing law authorizes the commission to establish rates for
public utilities regulated by the commission.
   This bill would make specified changes in that authority and the
procedures relating to setting rates and charges.
   (7) Existing law permits the commission to exempt certain common
carriers from California antitrust laws.
   This bill would repeal that authority.
   (8) Existing law requires commission approval for the transfer or
encumbrance of public utility property, as specified.
   This bill would exempt from commission approval the transfer of
the ownership interest in a water utility with 10,000 or fewer
service connections, when the transfer is from a decedent to a member
of a decedent's family pursuant to probate, a will, trust, or other
instrument.
   (9) Existing law requires a written report of ex parte
communication by a decisionmaker, as defined, and any party,
irrespective of who initiated the communication, and the filing with
the commission of the original and 12 copies of the report.
   This bill would delete the specified number of copies of the
report to be filed, and require filing be in accordance with the
procedures established by the commission for the serving of the
notice.
   (10) Existing provisions of law require the commission to
periodically review and monitor the development and use of any
operations model used by any public utility, as specified, and to
verify, validate, and improve the production cost planning models and
the financial planning models of public utilities to facilitate
their use by the commission.
   This bill would repeal these provisions, thereby making the review
by the commission discretionary.
   (11) Existing law requires the commission to design and implement
a program whereby each telephone corporation is required to provide,
as specified, telecommunication services capable of serving the needs
of individuals who are deaf or hearing impaired.
   This bill would authorize the commission to direct a telephone
corporation to implement the program, rather than requiring the
commission to direct each telephone corporation to implement the
program.
   (12) Existing law provides a fee of $25 to be paid to the
commission for the filing of the initial registration of private
carriers of passengers, and an annual renewal fee of $20.  Existing
law permits the commission to increase this amount to $35 and $30,
respectively, which the commission has done.
   This bill would increase the statutory fee amount to $35 and $30,
respectively.
   (13) Existing law requires the commission to establish a surcharge
to cover the commission's cost of the propane safety inspection and
enforcement program, as specified.  Existing law requires these
surcharges to be deposited into the Propane Safety Inspection and
Enforcement Program Trust Fund, from which funds may only be expended
upon appropriation.
   This bill would continuously appropriate those funds, thereby
making an appropriation.
   (14) Existing law provides regulatory jurisdiction of household
goods carriers by the commission, and defines that term.
   This bill would exclude from that term a household goods carrier
when the carrier is transporting used office, store, and institution
furniture and fixtures and make related changes.  The bill would
permit, as specified, a household goods carrier to elect to transport
these items under its household goods carrier permit by meeting
specified conditions including paying a specified fee.  The bill
would provide that if the household goods carrier does not so elect
or revokes a prior election, then the household goods carrier has to
comply with the provisions of the Motor Carriers of Property Permit
Act in the Vehicle Code.
   (15) Existing law requires the commission and the State Energy
Resources and Conservation and Development Commissions to participate
in an annual meeting with representatives from specified public
utilities and invited entities, as specified.
   This bill would delete the commission from this provision.
   (16) This bill would make clarifying and technical changes to
specified provisions of the Public Utilities Code.
   Vote:  majority.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California Public Utilities Commission is required to
prepare and submit, on a one-time basis, a number of reports
concerning regulatory issues within the jurisdiction of the
commission and the commission has prepared these reports as directed.
  In the interest of eliminating obsolete provisions of the Public
Utilities Code, it is the intent of the Legislature that language
concerning these reports should be deleted from the Public Utilities
Code.
   (b) Internal reorganization of the commission resulting in name
changes for many divisions of the commission, together with recent
reforms enacted by the Legislature, require certain clarifications
and corrections of existing law.
   (c) Regulatory changes mandated by state and federal laws require
conformance of various provisions of the Public Utilities Code,
including the repeal of provisions rendered obsolete and the
clarifications of continuing commission authority.  The repeal of a
statute granting a specific authority does not prohibit the
commission from providing the same or similar regulation pursuant to
the commission's constitutional and general statutory authority.
  SEC. 2.  Section 830.11 of the Penal Code is amended to read:
   830.11.  (a) The following persons are not peace officers but may
exercise the powers of arrest of a peace officer as specified in
Section 836 and the power to serve warrants as specified in Sections
1523 and 1530 during the course and within the scope of their
employment, if they receive a course in the exercise of those powers
pursuant to Section 832.  The authority and powers of the persons
designated under this section shall extend to any place in the state:

   (1) Persons employed by the Department of Financial Institutions
designated by the  Commissioner of Financial Institutions, provided
that the primary duty of these persons shall be the enforcement of,
and investigations relating to, the provisions of law administered by
the Commissioner of Financial Institutions.
   (2) Persons employed by the Department of Real Estate designated
by the Real Estate Commissioner, provided that the primary duty of
these persons shall be the enforcement of the laws set forth in Part
1 (commencing with Section 10000) and Part 2 (commencing with Section
11000) of Division 4 of the Business and Professions Code.  The Real
Estate Commissioner may designate persons under this section, who at
the time of their designation, are assigned to the Special
Investigations Unit, internally known as the Crisis Response Team.
   (3) Persons employed by the State Lands Commission designated by
the executive officer, provided that the primary duty of these
persons shall be the enforcement of the law relating to the duties of
the State Lands Commission.
   (4) Persons employed as investigators of the Investigations Bureau
of the Department of Insurance, who are designated by the Chief of
the Investigations Bureau, provided that the primary duty of these
persons shall be the enforcement of the Insurance Code and other laws
relating to persons and businesses, licensed and unlicensed by the
Department of Insurance, who are engaged in the business of
insurance.
   (5) Persons employed  by the Safety and Enforcement
  as investigators and investigator supervisors of the
Consumer Services Division or the Rail Safety and Carrier 
Division of the Public Utilities Commission who are designated by the
 Director of the Safety and Enforcement Division, 
 commission's executive director  and approved by the
commission, provided that the primary duty of these persons shall be
the enforcement of the law as that duty is set forth in Section 308.5
of the Public Utilities Code.
   (b) Notwithstanding any other provision of law, persons designated
pursuant to this section shall not carry firearms.
   (c) Persons designated pursuant to this section shall be included
as "peace officers of the state" under paragraph (2) of subdivision
(c) of Section 11105 for the purpose of receiving state summary
criminal history information and shall be furnished that information
on the same basis as peace officers of the state designated in
paragraph (2) of subdivision (c) of Section 11105.
  SEC. 3.  Section 3 of the Public Utilities Code is repealed.

   3.  All persons who, at the time this code takes effect, hold
office under any of the acts repealed by this code, which offices are
continued by this code, continue to hold them according to their
former tenure. 
  SEC. 4.  Section 224.8 is added to the Public Utilities Code, to
read:
   224.8.  "Network railroad transportation" means railroad
transportation that is subject to the jurisdiction of the federal
Surface Transportation Board pursuant to subsection (a) or (b) of
Section 10501 of Title 49 of the United States Code.
  SEC. 5.  Section 248 is added to the Public Utilities Code, to
read:
   248.  Any provision of the Public Utilities Act that is in
conflict with the railroad provisions of Part A of Subtitle 4 of
Title 49 of the United States Code shall be inapplicable to railroad
transportation to the extent of that conflict.  If any provision in
the Public Utilities Act applicable to railroad transportation, or
the application thereof to any person or circumstance, is in conflict
with Part A of Subtitle 4 of Title 49 of the United States Code, the
remainder of the act or the application of the provision to other
persons or circumstances shall be unaffected to the extent no
conflict exists.
  SEC. 6.  Section 308.5 of the Public Utilities Code is amended to
read:
   308.5.  Persons employed as investigators and investigator
supervisors of the  Consumer Services Division or the Rail 
Safety and  Enforcement   Carrier  Division
of the commission who are designated by the  Director of the
Safety and Enforcement Division   commission's
executive director  and approved by the commission have the
authority of peace officers, as specified in paragraph (5) of
subdivision (a) of Section 830.11 of the Penal Code, while engaged in
exercising the powers granted to or performing the duties imposed
upon them in investigating the laws administered by the commission or
commencing directly or indirectly any criminal prosecution arising
from any investigation conducted under these laws.  All persons
herein referred to shall be deemed to be acting within the scope of
employment with respect to all acts and matters set forth in this
section.
  SEC. 7.  Section 309.5 of the Public Utilities Code, as added by
Section 3 of Chapter 856 of the Statutes of 1996, is amended to read:

   309.5.  (a) There is within the commission a division to represent
the interests of public utility customers and subscribers in
commission proceedings.  The goal of the division shall be to obtain
the lowest possible rate for service consistent with reliable and
safe service levels.
   (b) The director of the division shall be appointed by and serve
at the pleasure of the Governor, subject to confirmation by the
Senate.  The director shall annually appear before the appropriate
policy committees of the Assembly and the Senate to report on the
activities of the division.
   (c) The commission shall, by rule or order, provide for the
assignment of personnel to, and the functioning of, the division.
The division may employ experts necessary to carry out its functions.
  Personnel and resources shall be provided to the division at a
level sufficient to ensure that customer and subscriber interests are
fairly represented in all significant proceedings.
   (d) The commission shall develop appropriate procedures to ensure
that the existence of the division does not create a conflict of
roles for any employee or his or her representative.  The procedures
shall include, but shall not be limited to, the development of a code
of conduct and procedures for ensuring that advocates and their
representatives on a particular case or proceeding are not advising
decisionmakers on the same case or proceeding.
   (e) The division may compel the production or disclosure of any
information it deems necessary to perform its duties from entities
regulated by the commission provided that any objections to any
request for information shall be decided by the assigned commissioner
or by the president of the commission if there is no assigned
commissioner.
   (f) There is hereby created the Public Utilities Commission
Ratepayer Advocate Account in the General Fund.   All moneys
deposited in the account   Moneys from the Public
Utilities Commission Utilities Reimbursement Account in the General
Fund shall be transferred in the annual Budget Act to the Public
Utilities Commission Ratepayer Advocate Account.  The funds in the
Public Utilities Commission Ratepayer Advocate Account  shall be
utilized exclusively by the division in the performance of its
duties.  The annual budget for the division shall be separately
identified in the commission's annual budget request.  The commission
shall annually submit a staffing report containing a comparison of
the staffing levels for each five-year period.
  (g) This section shall remain in effect only until January 1, 2002,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2002, deletes or extends that date.

  SEC. 8.  Section 309.6 of the Public Utilities Code is amended to
read:
   309.6.  (a) The commission shall adopt procedures on the
disqualification of administrative law judges due to bias or
prejudice similar to those of other state agencies and superior
courts.
   (b) The commission shall develop the procedures with the
opportunity for public review and comment  , and submit a
report to the Legislature on or before February 28, 1994, on the
adopted procedures  .
  SEC. 9.  Section 314.5 of the Public Utilities Code is amended to
read:
   314.5.  The commission shall inspect and audit the books and
records for regulatory and tax purposes (a) at least once in every
three years in the case of every electrical, gas, heat, telegraph,
telephone, and water corporation serving over 1,000 customers
 and the rail passenger commuter operations of every railroad
 , and (b) at least once in every five years in the case of
every electrical, gas, heat, telegraph, telephone, and water
corporation serving 1,000 or fewer customers.  An audit conducted in
connection with a rate proceeding shall be deemed to fulfill the
requirements of this section.  Reports of such inspections and audits
and other pertinent information shall be furnished to the State
Board of Equalization for use in the assessment of public utilities.

  SEC. 10.  Section 421 of the Public Utilities Code is amended to
read:
   421.  (a) The commission shall annually determine a fee to be paid
by every passenger stage corporation, charter-party carrier of
passengers, pipeline corporation, for-hire vessel operator, common
carrier vessel operator, railroad corporation, and commercial air
operator and every other common carrier and related business subject
to the jurisdiction of the commission, except as otherwise provided
in Article 3 (commencing with Section 431) of this chapter and
Chapter 6 (commencing with Section 5001) of Division 2.
   (b) The annual fee shall be established to produce a total amount
equal to the amount established in the authorized commission budget
for the same year, including adjustments appropriated by the
Legislature and an appropriate reserve, to regulate common carriers
and related businesses, less the amount to be paid from special
accounts or funds pursuant to Section 403, reimbursements, federal
funds, other revenues, and unencumbered funds from the preceding
year.
   (c) Notwithstanding any other provision of law, the fees paid by
railroad corporations shall be used for state-funded railroad
investigation and enforcement activities of the commission, other
than the rail safety activities funded by the Transportation Planning
and Development Account pursuant to Section 99315.5.  The railroad
fees shall be set annually at a level which generates not less than
the amount sufficient to fund activities pursuant to  Section
  Sections  765.5  , 7711, and 7712  .
   (d) On January 1, 1992, the commission shall submit to the
Legislature a detailed budget implementing this section for the
1992-93 fiscal year.  The commission shall also submit to the
Legislature by January 1, 1993, and on each January 1 thereafter, a
detailed budget for expenditure of railroad corporation fees for the
ensuing budget year.  The budget for expenditure of railroad
corporation fees, for each of the 1996-97 and 1997-98 fiscal years,
shall not exceed the amount of three million dollars ($3,000,000).
Expenditures of this budget shall be limited to the following items:

   (1) Expenditures for  employees occupying, and actually
performing service in,  railroad-safety personnel  positions
that are  directly involved in inspecting railroads and
enforcing rail safety regulations.   The commission shall expend
the funds budgeted pursuant to this subdivision for the salaries, per
diem, and travel expenses of employees specified in this paragraph,
unless by statute, the commission is specifically prohibited from
expending all or part of those funds. 
   (2) Expenditures for  employees occupying, and actually
performing service in,  clerical and support staff 
positions that are  directly associated with railroad-safety
inspections.
   (3) Expenditures for legal personnel  to  
who actually  pursue violations of rail safety regulations
beyond the informal complaint level  .
   (4) Expenditures for an audit by the Bureau of State Audits
pursuant to subdivision (f), not to exceed seventy-five thousand
dollars ($75,000). 
   (5) (A) Expenditures for the pro rata share of the commission's
overhead costs while state personnel are actually occupying the
positions, and are performing the duties specified in paragraphs (1)
to (4), inclusive. Overhead costs shall be limited to only the
following items:
   (i) Rent.
   (ii) Utilities.
   (iii) Office furniture.
   (iv) Office equipment.
   (v) Office supplies.  
   (B) This paragraph shall become inoperative on January 1, 2002,
unless a later enacted statute deletes or extends that date. 
   (e) The Department of Finance shall notify the Joint Legislative
Budget Committee, pursuant to Section 28.00 of the annual Budget Act,
prior to authorizing any change in the Budget Act appropriation for
railroad corporation fees that is larger than one hundred thousand
dollars ($100,000), or 10 percent of the amount budgeted, whichever
is less.
   (f) Except as otherwise provided in this subdivision, commencing
with the 1993-94 fiscal year, and in each subsequent fiscal year
until the 1999-2000 fiscal year, the commission shall conduct an
audit of the expenditure of the funds received pursuant to this
section, except that for the 1996-97 fiscal year and fiscal years
thereafter the audit shall be conducted by the Bureau of State
Audits.  The results of this audit shall be reported, in writing,
commencing on or before February 15, 1995, with respect to the audit
for the 1993-94 fiscal year, and on or before January 15 of each year
thereafter, with respect to the audit for the fiscal year ending on
the previous June 30, to the appropriate policy and budget committees
of the respective houses of the Legislature.  The commission shall
reimburse the Bureau of State Audits for the costs of the audits
beginning with the 1996-97 fiscal year.
   (g) On or before January 1, 1994, the commission shall hire a
minimum of four additional operating practices inspectors, exclusive
of supervisory personnel, who are, or shall become, by July 1, 1994,
federally certified, for the purpose of enforcing compliance by
railroads operating in this state with state and federal safety
regulations.
   (h) The commission, in performing its duties, shall limit the
expenditure of funds for rail safety division purposes to those
railroad corporation fees collected pursuant to subdivision (d).  In
no event, shall the commission fund railroad safety activities
utilizing funds from other commission accounts unrelated to railroad
safety.
  SEC. 11.  Section 454 of the Public Utilities Code is amended to
read:
   454.  (a) Except as provided in  Sections 454.1 and
  Section  455, no public utility shall change any
rate or so alter any classification, contract, practice, or rule as
to result in any new rate, except upon a showing before the
commission and a finding by the commission that the new rate is
justified.  Whenever any electrical, gas, heat, telephone, water, or
sewer system corporation files an application to change any rate,
other than a change reflecting and passing through to customers only
new costs to the corporation which do not result in changes in
revenue allocation, for the services or commodities furnished by it,
the corporation shall furnish to its customers affected by the
proposed rate change notice of its application to the commission for
approval of the new rate.  This notice requirement does not apply to
any rate change proposed by a corporation pursuant to an advice
letter submitted to the commission in accordance with commission
procedures for this means of submission.  The procedures for advice
letters may include provision for notice to customers or subscribers
on a case-by-case basis, as determined by the commission.  The
corporation may include the notice with the regular bill for charges
transmitted to the customers within 45 days if the corporation
operates on a 30-day billing cycle, or within 75 days if the
corporation operates on a 60-day billing cycle.  If more than one
application to change any rate is filed within a single billing
cycle, the corporation may combine the notices into a single notice
if the applications are separately identified.  The notice shall
state the amount of the proposed rate change expressed in both dollar
and percentage terms for the entire rate change as well as for each
customer classification, a brief statement of the reasons the change
is required or sought, and the mailing, and if available, the e-mail
address of the commission to which any  customer inquiries may be
directed regarding how to participate in, or receive further notices
regarding the date, time, or place of, any hearing on the
application, and the mailing address of the corporation to which any
customer inquiries relative to the proposed rate change may be
directed.
   (b) The commission may adopt rules it considers reasonable and
proper for each class of public utility providing for the nature of
the showing required to be made in support of proposed rate changes,
the form and manner of the presentation of the showing, with or
without a hearing, and the procedure to be followed in the
consideration thereof.  Rules applicable to common carriers may
provide for the publication and filing of any proposed rate change
together with a written showing in support thereof, giving notice of
the filing and showing in support thereof to the public, granting an
opportunity for protests thereto, and to the consideration of, and
action on, the showing and any protests filed thereto by the
commission, with or without hearing.  However, the proposed rate
change does not become effective until it has been approved by the
commission.
   (c) The commission shall permit individual public utility
customers and subscribers affected by a proposed rate change, and
organizations formed to represent their interests, to testify at any
hearing on the proposed rate change, except that the presiding
officer need not allow repetitive or irrelevant testimony and may
conduct the hearing in an efficient manner.
  SEC. 12.  Section 454.2 of the Public Utilities Code is amended to
read:
   454.2.  Notwithstanding Section 454, the commission may  ,
upon application,  establish a "zone of rate freedom" for
any passenger stage transportation service which  the
commission finds  is operating in competition with 
another substantially similar passenger stage transportation service
or competitive   other  passenger transportation
service from any  other  means of transportation, if
the  commission finds that these competitive transportation
services   competition together with the authorized zone
of rate freedom  will result in reasonable rates and charges
 when considered along with the authorized zone of rate
freedom   for the passenger stage transportation service
 .  An adjustment in rates or charges within a zone of rate
freedom established by the commission is hereby deemed just and
reasonable.  The commission may, upon protest or on its own motion,
suspend any adjustment in rates or charges under this section and
institute proceedings  pursuant to Section 491  
under its rules of practice and procedure  .
  SEC. 13.  Section 454.5 of the Public Utilities Code is repealed.

   454.5.  Whenever an electrical corporation requests a rate
adjustment reflecting and passing through to customers a specific
fuel cost increase, the commission may grant substantial but not
complete rate relief.  Substantial relief is defined as an amount not
to exceed 80 percent of the rate adjustment request.  Within 60 days
of such request, a hearing shall be held and the balance of the rate
relief request shall be granted if found by the commission to be
justified. 
  SEC. 14.  Section 457 of the Public Utilities Code is repealed.

   457.  Nothing in this part shall prevent a corporation or person
engaged in the production, generation, transmission, or furnishing of
heat, light, water, or power, or telegraph or telephone service,
from establishing a sliding scale of charges when a schedule showing
such scale of charges has been filed with the commission and the
schedule and each rate set out therein has been approved by it.
Nothing in this part shall prevent any such corporation or person
from entering into an agreement for a fixed period for the automatic
adjustment of charges for heat, light, water, or power, or telegraph
or telephone service, in relation to the dividends to be paid to
stockholders of such corporation, or the profit to be realized by
such person when a schedule showing the scale of charges under such
arrangement has been filed with the commission and the schedule and
each rate set out therein has been approved by it.
   Nothing in this section shall prevent the commission from revoking
its approval at any time and fixing other rates and charges for the
product or commodity or service, as authorized by this part.

  SEC. 15.  Section 458 of the Public Utilities Code is amended to
read:
   458.   (a)  No common carrier, or any officer or agent
thereof, or any person acting for or employed by it, shall, by means
of known false billing, classification, weight, weighing, or report
of weight, or by any other device or means assist, suffer, or permit
any corporation or person to obtain transportation for any person or
property between points within this  State  
state  at less than the rates and fares then established and in
force as shown by the schedules filed and in effect at the time.
   No person, corporation, or any officer, agent, or employee of a
corporation shall, by means of false billing, false or incorrect
classification, false weight or weighing, false representation as to
contents or substance of a package, or false report or statement of
weight, or by any other device or means, whether with or without the
consent or connivance of a common carrier or any of its officers,
agents, or employees, seek to obtain or obtain such transportation
for such property at less than the rates then established and in
force therefor. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 16.  Section 459 of the Public Utilities Code is amended to
read:
   459.   (a)  No person or corporation, or any officer,
agent, or employee of a corporation, shall knowingly, directly or
indirectly, by any false statement or representation as to cost or
value, or the nature or extent of an injury, or by the use of any
false billing, bill of lading, receipt, voucher, roll, account,
claim, certificate, affidavit, or deposition, or upon any false,
fictitious, or fraudulent statement or entry, obtain or attempt to
obtain any allowance, rebate, or payment for damage, in connection
with or growing out of the transportation of persons or property, or
an agreement to transport such persons or property, whether with or
without the consent or connivance of a common carrier or any of its
officers, agents, or employees. No common carrier, or any of its
officers, agents, or employees, shall knowingly pay or offer to pay
any such allowance, rebate, or claim for damage.  
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 17.  Section 460 of the Public Utilities Code is repealed.

   460.  No common carrier subject to the provisions of this part
shall charge or receive any greater compensation in the aggregate for
the transportation of persons or of a like kind of property for a
shorter than for a longer distance over the same line or route in the
same direction, within this State, the shorter being included within
the longer distance or charge any greater compensation as a through
rate than the aggregate of the intermediate rates.  This provision
does not authorize any such common carrier to charge or receive as
great a compensation for a shorter as for a longer distance or haul.

   Upon application to the commission a common carrier may, in
special cases, after investigation, be authorized by the commission
to charge less for a longer than for a shorter distance for the
transportation of persons or property, and the commission may from
time to time prescribe the extent to which such carrier may be
relieved from the operation and requirements of this section.

      SEC. 18.  Section 461 of the Public Utilities Code is repealed.
  
   461.  No telephone or telegraph corporation subject to the
provisions of this part shall charge or receive any greater
compensation in the aggregate for the transmission of any long
distance message or conversation for a shorter than for a longer
distance over the same line or route in the same direction, within
this State, the shorter being included within the longer distance, or
charge any greater compensation for a through service than the
aggregate of the intermediate rates or tolls subject to the
provisions of this act.  This provisions does not authorize any such
telephone or telegraph corporation to change and receive as great a
compensation for a shorter as for a longer distance.
   Upon application to the commission, a telephone or telegraph
corporation may, in special cases, after investigation, be authorized
by the commission to charge less for a longer than for a shorter
distance service for the transmission of messages or conversations,
and the commission may from time to time prescribe the extent to
which such telephone or telegraph corporation may be relieved from
the operation and requirements of this section. 
  SEC. 19.  Section 461.5 of the Public Utilities Code is amended to
read:
   461.5.   (a) (1)  No discrimination in charges or
facilities for transportation shall be made by any railroad or other
transportation company between places or persons, or in the
facilities for the transportation of the same classes of freight or
passengers within this state.  It shall be unlawful for any railroad
or other transportation company to charge or receive any greater
compensation in the aggregate for the transportation of passengers or
of like kind of property for a shorter than for a longer distance
over the same line or route in the same direction, the shorter being
included within the longer distance, or to charge any greater
compensation as a through rate than the aggregate of the intermediate
rates.  
   Upon  
   (2) Upon  application to the commission  such
 company may  , in special cases, after
investigation,  be authorized by the commission to charge
less for longer than for shorter distances for the transportation of
persons or property and the commission may from time to time
prescribe the extent to which such company may be relieved from the
prohibition to charge less for the longer than for the shorter haul.
The commission may authorize the issuance of excursion and
commutation tickets at special rates.  
   Nothing  
   (3) Nothing  contained in this section shall be construed to
prevent the commission from ordering and compelling any railroad or
other transportation company to make reparation to any shipper on
account of the rates charged to such shipper being excessive or
discriminatory, provided no discrimination will result from such
reparation. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 20.  Section 486 of the Public Utilities Code is amended to
read:
   486.   (a)  Every common carrier shall file with the
commission and shall print and keep open to the public inspection
schedules showing the rates, fares, charges, and classifications for
the transportation between termini within this  State
  state  of persons and property from each point
upon its route to all other points thereon; and from each point upon
its route to all points upon every other route leased, operated, or
controlled by it; and from each point on its route or upon any route
leased, operated, or controlled by it to all points upon the route of
any other common carrier, whenever a through route and a joint rate
has been established or ordered between any two such points.  If no
joint rate over a through route has been established, the schedules
of the several carriers in such through route shall show the
separately established rates, fares, charges, and classifications
applicable to the through transportation. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 21.  Section 488 of the Public Utilities Code is amended to
read:
   488.   (a)  Subject to such rules as the commission may
prescribe, the schedules of carriers shall be produced and made
available for inspection upon the demand of any person.  The form of
every such schedule shall be prescribed by the commission and shall
conform, in the case of  any  common carrier subject to
 the Interstate Commerce Act and the acts amendatory thereof
and supplementary thereto,   federal regulation  as
nearly as possible to the form of schedules prescribed by the
 Interstate Commerce Commission   federal
Surface Transportation Board  .  
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 22.  Section 491 of the Public Utilities Code is amended to
read:
   491.  Unless the commission otherwise orders, no change shall be
made by any public utility in any rate or classification, or in any
rule or contract relating to or affecting any rate, classification,
or service, or in any privilege or facility, except after 30 days'
notice to the commission and to the public.   Such notice
  Notice  shall be given by filing with the
commission and keeping open for public inspection new schedules
stating plainly the changes to be made in the schedule or schedules
then in force, and the time when the changes will go into effect.
The commission, for good cause shown, may allow changes without
requiring the 30 days' notice, by an order specifying the changes
so to   that may  be made  on less than
30 days' notice  , the time when they shall take effect, and
the manner in which they shall be filed and published.  When any
change is proposed in any rate or classification, or in any form of
contract or agreement or in any rule or contract relating to or
affecting any rate, classification, or service, or in any privilege
or facility, attention shall be directed to such change on the
schedule filed with the commission, by some character to be
designated by the commission, immediately preceding or following the
item.
  SEC. 23.  Section 493 of the Public Utilities Code is amended to
read:
   493.  (a) No common carrier subject to this part shall engage or
participate in the transportation of persons or property, between
points within this state, until its schedules of rates, fares,
charges, and classifications have been filed and published in
accordance with this part.
   (b) If any common carrier of property, in contravention of
subdivision (a), transports any property for which it does not have
schedules of rates, fares, charges, and classifications on file, the
commission may establish a just and reasonable charge for the
transportation. 
   (c) This section is not applicable to network railroad
transportation. 
  SEC. 24.  Section 494 of the Public Utilities Code is amended to
read:
   494.   (a)  No common carrier shall charge, demand,
collect, or receive a different compensation for the transportation
of persons or property, or for any service in connection therewith,
than the applicable rates, fares, and charges specified in its
schedules filed and in effect at the time, nor shall any such carrier
refund or remit in any manner or by any device any portion of the
rates, fares, or charges so specified, except upon order of the
commission as provided in this part, nor extend to any corporation or
person any privilege or facility in the transportation of passengers
or property except such as are regularly and uniformly extended to
all corporations and persons. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 25.  Section 496 of the Public Utilities Code is repealed.

   496.  (a) For purposes of this section--
   (1) The term "carrier" means any common carrier subject to
regulation under this part.
   (2) The term "antitrust laws" means the provisions of Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the
Business and Professions Code, relating to combinations in restraint
of trade.
   (b) Any carrier which is a party to an agreement between or among
two or more carriers relating to rates, fares, classifications,
divisions, allowances, or charges (including charges between carriers
and compensation paid or received for the use of facilities and
equipment), or rules and regulations pertaining thereto, or
procedures for the joint consideration, initiation, or establishment
thereof, may, under such rules and regulations as the commission may
prescribe, apply to the commission for approval of the agreement, and
the commission shall by order approve any such agreement, if
approval thereof is not prohibited by subdivision (d), (e), or (f),
if it finds that the agreement and the rules, regulations, and
procedures provided for the operation thereof are fair and reasonable
  and  not contrary to public policy; otherwise the application shall
be denied.  The approval of the commission shall be granted only
upon such terms and conditions as the commission may prescribe as
necessary to enable it to grant its approval in accordance with this
subdivision.
   (c) Each conference, bureau, committee, or other organization
established or continued pursuant to any agreement approved by the
commission under the provisions of this section shall maintain such
accounts, records, files, and memoranda and shall submit to the
commission such reports, as may be prescribed by the commission, and
all such accounts, records, files, and memoranda shall be subject to
inspection by the commission or its duly authorized representatives.

   (d) The commission shall not approve under this section any
agreement between a carrier by highway and a carrier by rail unless
it finds that the agreement is of the character described in
subdivision (b) and is limited to matters relating to transportation
under joint rates or over through routes.
   (e) The commission shall not approve under this section any
agreement which it finds is an agreement with respect to the pooling
or division of traffic, service, or earnings, unless the commission
finds that the agreement will be in the interest of better service to
the public or of economy of operation resulting in efficient
utilization of fuel and will not unduly restrain competition.
   (f) The commission shall not approve under this section any
agreement which establishes a procedure for the determination of any
matter through joint consideration, unless it finds that under the
agreement there is accorded to each party the free and unrestrained
right to take independent action either before or after any
determination arrived at through such procedure.
   (g) The commission may, upon complaint or upon its own initiative
without complaint, investigate and determine whether any agreement
previously approved by it under this section, or any term or
condition upon which the approval was granted, is not in conformity
with subdivision (b), or whether any such term or condition is not
necessary for purposes of conformity with subdivision (b).  After the
investigation, the commission may by order terminate or modify its
approval of such agreement if it finds such action necessary to
insure conformity with subdivision (b), and may modify the terms and
conditions upon which the approval was granted to the extent it finds
necessary to insure conformity with subdivision (b) or to the extent
it finds such terms and conditions unnecessary to insure  such
conformity.  The effective date of any order terminating or modifying
approval, or modifying terms and conditions, may be postponed for
such period as the commission determines is reasonably necessary to
avoid undue hardship.
   (h) No order shall be entered under this section except after
interested parties have been afforded reasonable opportunity for
hearing.
   (i) The parties to any agreement approved by the commission under
this section and other persons are, if the approval of the agreement
is not prohibited by subdivision (d), (e), or (f), hereby exempted
from the antitrust laws with respect to the agreement under the terms
and conditions prescribed by the commission.
   (j) Any action of the commission under this section in approving
an agreement, or in denying an application for such approval, or in
terminating or modifying its approval of an agreement, or in
prescribing the terms and conditions upon which its approval is to be
granted, or in modifying such terms and conditions, shall be
construed as having effect solely with reference to the applicability
of  subdivision (i). 
  SEC. 26.  Section 526 of the Public Utilities Code is repealed.

   526.  Express corporations may issue free or reduced rate
transportation for express matter to their officers, agents,
employees, attorneys, physicians and surgeons, and members of their
families. 
  SEC. 27.  Section 527 of the Public Utilities Code is amended to
read:
   527.  Nothing in this part shall prevent the interchange of free
or reduced rate transportation for passenger or express matter
between common carriers, their officers, agents, employees,
attorneys, physicians and surgeons, and members of their families,
where such common carriers are subject in whole or in part to the
jurisdiction of the commission or of the  Interstate Commerce
Commission,   federal Surface Transportation Board
 or where such common carriers, though not in whole or in part
subject to the jurisdiction of this commission or of the 
Interstate Commerce Commission,   federal Surface
Transportation Board  are engaged in the business of
transporting passengers and freight by water between the United
States and foreign countries, and are permitted by  the
Interstate Commerce Act   federal law  to
interchange such free transportation with common carriers which are
subject to the jurisdiction  of the Interstate Commerce
Commission or to the jurisdiction  of the Public Utilities
Commission  or the federal Surface Transportation Board  .

  SEC. 28.  Section 530 of the Public Utilities Code is amended to
read:
   530.   (a)  Every common carrier subject to the
provisions of this part may transport, free or at reduced rates 
, as follows  :  
   (a)  
   (1)  Persons for the United States, state, county, or
municipal governments, or persons or property for charitable or
patriotic purposes, or to provide relief in cases of general
epidemic, pestilence, or calamity.  
   (b) Property to or from fairs or expositions for exhibit thereat.

   (c)  
   (2)  Contractors and their employees, material or supplies
for use or engaged in carrying out their contracts with such
carriers, for construction, operation, or maintenance work or work
incidental thereto on the line of the issuing carrier, to the extent
only that such free or reduced rate transportation is provided for in
the specifications upon which the contract is based and in the
contract itself.  
   Common  
   (b) Common  carriers may also enter into contracts with
telegraph and telephone corporations for an exchange of service.

   The commission may permit common carriers to transport property at
reduced rates for the United States, state, county, or municipal
governments, to such extent and subject to such conditions as it may
consider just and reasonable. Nothing herein shall prevent any common
carrier subject to the provisions of this part from transporting
property for the United States, state, county, or municipal
governments, at reduced rates no lower than rates which lawfully may
be assessed and charged by any other such common carrier or by
highway permit carriers as defined in the Highway Carriers' Act.

  SEC. 29.  Section 556 of the Public Utilities Code is amended to
read:
   556.   Every common carrier shall afford all reasonable, proper,
and equal facilities for the prompt and efficient interchange and
transfer of passengers  , tonnage, and cars, loaded or empty,
 between the lines owned, operated, controlled, or leased
by it and the lines of every other common carrier, and shall make
such interchange and transfer promptly without discrimination between
 shippers,  passengers  ,  or
carriers  either  as to compensation charged,
service rendered, or facilities afforded.
  SEC. 30.  Section 557 of the Public Utilities Code is repealed.

   557.  Every railroad corporation shall receive from every other
railroad corporation, at any point of connection, freight cars of
proper standard and in proper condition, and haul them to
destination, if the destination is upon a line owned, operated, or
controlled by it, or to the point of transfer according to the route
billed, if the destination is upon the line of some other railroad
corporation. 
  SEC. 31.  Section 559 of the Public Utilities Code is amended to
read:
   559.   (a)  Nothing in Sections 556 to 558, inclusive,
shall limit or modify the duty of a common carrier to establish joint
rates, fares, and charges for the transportation of passengers and
property over the lines owned, operated, controlled, or leased by it
and the lines of other common carriers, or the power of the
commission to require the establishment of such joint rates, fares,
and charges. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 32.  Section 703 of the Public Utilities Code is amended to
read:
   703.  The commission may investigate all existing or proposed
interstate rates, fares, tolls, charges, and classifications, and all
rules and practices in relation thereto, for or in relation to the
transportation of persons or property or the transmission of messages
for conversations, where any act in relation thereto takes place
within this  State   state  and when they
are, in the opinion of the commission, excessive or
discriminatory or  in violation of  the Interstate
Commerce Act, or any other act of Congress   federal law
 , or in conflict with the rulings, orders, or regulations of
the  Interstate Commerce Commission   a federal
agency  , the commission may apply for relief by petition or
otherwise to the  Interstate Commerce Commission 
 federal agency that has jurisdiction over the alleged violation
 or to any court of competent jurisdiction.
  SEC. 33.  Section 706 of the Public Utilities Code is repealed.

   706.  Every railroad corporation may connect at the state line
with railroads of other states.  Every railroad corporation may
intersect, connect with, or cross any other railroad and shall
receive and transport each the other's passengers, tonnage, and cars,
without delay or discrimination. 
  SEC. 34.  Section 707 of the Public Utilities Code is repealed.

   707.  (a) In any proceeding before the commission relating to the
rates charged by a railroad corporation for interurban railway
passenger services or to the extent of such services, the commission
shall take into consideration the availability of any public
subsidies or other forms of support for such services.
   (b) The Department of Transportation shall furnish to the
commission such information as the commission may request concerning
the availability of public subsidies or other forms of support for
interurban railway passenger services.
   (c) In any proceeding before the commission concerning the
interurban transportation of passengers, or any service related
thereto, by a railroad corporation, the commission shall give
consideration to those factors that would assure the commencement,
development, and continuation of such interurban passenger service.
   (d) In any proceeding before the commission concerning the
interurban transportation of passengers or any service related
thereto by a railroad corporation, the commission shall give
consideration to the establishment of intermodal facilities and order
the construction of those facilities pursuant to Section 762.  The
Department of Transportation shall furnish to the commission such
information as the commission may request. 
  SEC. 35.  Section 728.5 of the Public Utilities Code is amended to
read:
   728.5.   (a) The commission may establish rates or
charges for the transportation of passengers and freight by railroads
and other transportation companies, except motor carriers of
property, and no railroad or other transportation company under its
jurisdiction, except motor carriers of property, shall charge or
demand or collect or receive a greater or less or different
compensation for that transportation of passengers or freight, or for
any service in connection therewith, between the points named in any
tariff of rates established by the commission than the rates, fares
and charges which are specified in that tariff.  The commission may
examine books, records and papers of all railroad and other
transportation companies, except motor carriers of property; may hear
and determine complaints against railroad and other transportation
companies; and may issue subpoenas and all necessary process and send
for persons and papers.  The commission and each of the
commissioners may administer oaths, take testimony and punish for
contempt in the same manner and to the same extent as courts of
record.  The commission may prescribe a uniform system of accounts to
be kept by all railroad and other transportation companies, except
motor carriers of property. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 36.  Section 730 of the Public Utilities Code is amended to
read:
   730.   (a)  The commission shall, upon a hearing,
determine the kind and character of facilities and the extent of the
operation thereof, necessary reasonably and adequately to meet public
requirements for service furnished by common carriers between any
two or more points, and shall fix and determine the just, reasonable,
and sufficient rates for such service.  Whenever two or more common
carriers are furnishing service in competition with each other, the
commission may, after hearing, when necessary for the preservation of
adequate service and when public interest demands, prescribe uniform
rates, classifications, rules, and practices to be charged,
collected, and observed by all such common carriers. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 37.  Section 731 of the Public Utilities Code is repealed.

   731.  Whenever the commission, after a hearing, finds that any
rate or toll for the transportation of property is lower than a
reasonable or sufficient rate and that the rate is not justified by
actual competitive transportation rates of competing carriers, or the
cost of other means of transportation, the commission shall
prescribe such rates as will provide an equality of transportation
rates for the transportation of property between all such competing
agencies of transportation, except motor carriers of property.  When
in the judgment of the commission a differential is necessary to
preserve equality of competitive transportation conditions, a
reasonable differential between rates of common carriers by rail and
water for the transportation of property may be maintained by such
carriers, and the commission may by order require the establishment
of such rates. 
  SEC. 38.  Section 732 of the Public Utilities Code is amended to
read:
   732.   (a)  Whenever the commission, after a hearing
finds that the rates, fares, or charges in force over two or more
common carriers, between any two points in this  State
  state  , are unjust, unreasonable, or excessive,
or that no satisfactory through route or joint rate, fare, or charge
exists between such points, and that the public convenience and
necessity demand the establishment of such a through route and joint
rate, fare, or charge, the commission may order such common carriers
to establish such through route and may establish and fix a joint
rate, fare, or charge which will be fair, just, reasonable, and
sufficient, to be charged and collected in the future, and the terms
and conditions under which such through route shall be operated.  The
commission may order that freight moving between such points shall
be carried by the common carriers participating in such through route
and joint rate, without being transferred from the originating cars.

   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 39.  Section 733 of the Public Utilities Code is amended to
read:
   733.   In case   (a) If the common
carriers do not agree upon the division between them of the joint
rates, fares, or charges established by the commission over 
such  through routes, the commission shall, after hearing,
by supplemental order, establish  such  that
 division.  Where any railroad, or passenger stage corporation
 which   that  is made a party to a through
route has itself over its own line an equally satisfactory through
route between the termini of the through route established, 
such   that  railroad, or passenger stage
corporation may require as its division of the joint rate, fare, or
charge its local rate, fare, or charge over the portion of its line
comprised in  such 
         the  through route, and the commission may, in its
discretion, allow to  such   that  railroad
or passenger stage corporation, more than its local rate, fare, or
charge  whenever   if the commission determines
that  it will be equitable so to do.  The commission may
establish and fix through routes and joint rates, fares, or charges
over common carriers and stage or auto stage lines which may not be
otherwise subject to the provisions of this part, and may fix the
division of  such   those  joint rates,
fares, or charges. 
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 40.  Section 739.9 of the Public Utilities Code is repealed.

   739.9.  The commission shall extend special programs, for up to a
three-year period, requested by telephone corporations, and found by
the commission to be reasonable, to encourage telecommuting in the
area of the state where transportation systems have been damaged and
disrupted by the Northridge earthquake of 1994.  The commission shall
also initiate an investigation into the establishment of special
telecommunications programs to encourage telecommuting in the entire
state, and shall report to the Legislature its findings and
recommendations by December 1, 1995.
  SEC. 41.  Section 740.8 of the Public Utilities Code is amended to
read:
   740.8.  As used in  Sections   Section 
740.3  and 745.5  , "interests" of ratepayers,
short- or long-term, mean direct benefits that are specific to
ratepayers in the form of safer, more reliable, or less costly gas or
electrical service.
  SEC. 42.  Section 746 of the Public Utilities Code is repealed.

   746.  (a) On or before June 30, 1991, the commission, in
consultation with the State Energy Resources Conservation and
Development Commission, shall, to the extent feasible, adopt and
implement a pilot program of incentives to encourage utilities to
maintain and expand their energy efficiency programs and load
management programs that promote energy efficiency.
   (b) The commission's incentives program shall require utilities to
achieve reasonable minimum performance requirements as a condition
for receiving incentive benefits, and shall hold utilities
accountable for not achieving reasonable minimum performance
requirements through loss of incentive benefits and the imposition of
penalties.
   (c) The commission shall, to the extent feasible, require that
incentives are based on the participation levels and energy savings
from utility energy efficiency programs and load management programs
that promote energy efficiency.
   (d) The commission shall, as soon as practicable, report to the
Legislature on the results of its pilot program of incentives.  The
report shall indicate whether incentives are preferable to a
regulatory scheme which mandates utility energy efficiency programs
and load management programs that promote energy efficiency.

  SEC. 43.  Section 747 of the Public Utilities Code is repealed.

   747.  (a) In addition to the incentives program required by
Section 746, the commission shall require one or more electric
utilities to implement pilot projects to accomplish the following:
   (1) On or before June 30, 1991, begin to test separately from any
generation resource bidding system the ability of demand side bidding
to deliver benefits to utility customers.
   (2) At the earliest practicable time, test the feasibility of an
integrated bidding system that includes both generation resources and
demand side programs.
   (b) The commission shall establish a pilot program for gas
utilities which tests a program of competitive bidding auctions for
demand side services which deliver benefits to utility customers.
However, a pilot program shall not apply to customer classes for
which the gas utility is at risk for loss of sales or revenues due to
the lack of a sales adjustment mechanism.
   (c) At the earliest practicable time, the commission, in
consultation with the State Energy Resources Conservation and
Development Commission, shall report the results of the pilot
projects required by subdivisions (a) and (b) to the Legislature.
The report shall assess the feasibility and implications of
implementing the tested bidding systems and shall include
recommendations on whether or not the state should adopt either, or
both, of the following:
   (1) An integrated bidding system that allows demand side services
to compete with generation resources to fulfill future electric
utility resource needs, or a program of separate bidding auctions for
demand side services which deliver benefits to electric utility
customers.
   (2) A program of separate bidding auctions for demand side
services which deliver benefits to natural gas utility customers.

  SEC. 44.  Section 763 of the Public Utilities Code is amended to
read:
   763.   (a)  Whenever the commission, after a hearing,
finds that any railroad corporation or street railroad corporation
does not run a sufficient number of trains or cars, or possess or
operate sufficient motive power, reasonably to accommodate the
traffic, passenger or freight, transported by or offered for
transportation to it, or does not run its trains or cars with
sufficient frequency or at a reasonable or proper time having regard
to safety, or does not stop its trains or cars at proper places, or
does not run any train or car upon a reasonable time schedule for the
run, the commission may make an order directing such corporation to
increase the number of its trains or cars or its motive power or to
change the time for starting its trains or cars or to change the time
schedule for the run of any train or car, or to change the stopping
place or places thereof.  The commission may make any other order
that it determines to be reasonably necessary to accommodate and
transport the traffic, passenger or freight, transported or offered
for transportation.  
   (b) Subdivision (a) is not applicable to network railroad
transportation. 
  SEC. 45.  Section 763.1 of the Public Utilities Code is repealed.

   763.1.  Any transportation planning agency, any county
transportation commission, or any city or county may petition the
commission for the institution of new and additional rail passenger
services. 
  SEC. 46.  Section 764 of the Public Utilities Code is repealed.

   764.  Whenever the commission, after a hearing, finds that the
public convenience and necessity would be served by having
connections made between the tracks of any two or more railroad or
street railroad corporations, so that cars may readily be transferred
from one to the other at any of the points specified in this
section, the commission may order any two or more such corporations
owning, controlling, operating, or managing tracks of the same gauge
to make physical connections at any and all crossings, and at all
points where a railroad or street railroad begins or terminates or
runs near to any other railroad or street railroad.  After the
necessary franchise or permit has been secured from the city or city
and county, the commission may likewise order such physical
connection, within the city, or city and county, between two or more
railroads which enter the limits thereof.  The commission shall by
order direct whether the expense of such connections shall be borne
jointly or otherwise. 
  SEC. 47.  Section 765 of the Public Utilities Code is repealed.

   765.  Whenever the commission, after a hearing, finds that
application has been made to a railroad corporation for a connection
or spur by any corporation or person entitled thereto pursuant to
Section 560, and that the railroad corporation has refused to provide
such connection or spur, the commission shall make an order
requiring the providing of such connection or spur and the
maintenance and use thereof upon such reasonable terms as the
commission may prescribe.  Whenever any such connection or spur has
been so provided, any corporation or person may connect with the
private track or railroad thereby connected with the railroad of the
railroad corporation and may use the private track or railroad or the
spur upon payment to the party incurring the primary expense of such
private track or railroad, or the connection or spur, of a
reasonable proportion of the cost thereof to be determined by the
commission after notice to the interested parties and a hearing
thereon, if such connection and use can be made without unreasonable
interference with the rights of the party incurring such primary
expense.
   The commission may require one railroad corporation to switch to
private spurs and industrial tracks upon its own railroad the cars of
a connecting railroad corporation and may prescribe the terms and
compensation for such service. 
  SEC. 48.  Section 765.5 of the Public Utilities Code is amended to
read:
   765.5.  (a) The purpose of this section is to provide that the
commission takes all appropriate action necessary to ensure the safe
operation of railroads in this state.
   (b)  Not later than July 1, 1992, and annually thereafter,
the commission, consistent with Section 434 of Chapter 13 of Title
45 of the United States Code, shall identify track sections which it
determines pose local safety hazards, and report on those sites to
the Legislature.  The commission shall include in its report at least
all those sites which have inordinately high derailment rates, as
determined by the commission.
   (c) Not later than December 31, 1992, the commission shall propose
regulations it determines would establish a program to eliminate or
reduce the local safety hazards identified in the report prepared
pursuant to subdivision (b).  The regulations shall include
requirements relating to special equipment; operating, inspection,
and reporting standards; and recommended capital improvements at each
site.
   (d)  The commission shall dedicate sufficient resources
necessary to adequately carry out the State Participation Program for
the regulation of rail transportation of hazardous materials as
authorized by the Hazardous Material Transportation Uniform Safety
Act of 1990 (P.L. 101-615).  
   (e)  
   (c)  On or before July 1, 1992, the commission shall hire a
minimum of six additional rail inspectors who are or shall become
federally certified, consisting of three additional motive power and
equipment inspectors, two signal inspectors, and one operating
practices inspector, for the purpose of enforcing compliance by
railroads operating in this state with state and federal safety
regulations.  
   (f)  
   (d)  On or before July 1, 1992, the commission shall
establish, by regulation, a minimum inspection standard to ensure, at
the time of inspection, that railroad locomotives, equipment and
facilities located in Class I railroad yards in California will be
inspected not less frequently than every 180 days, and inspection of
all branch and main line track not less frequently than every 12
months.
  SEC. 49.  Section 769 of the Public Utilities Code is repealed.

   769.  The commission may provide by proper rules the time within
which all railroad corporations shall furnish, after demand therefor,
all cars, equipment, and facilities necessary for the handling of
freight in carload and less than carload lots, the time within which
consignors or persons ordering cars shall load the cars, and the time
within which consignees or persons to whom freight is consigned
shall unload and discharge the cars and receive freight from the
freight rooms, and may provide penalties to be paid for failure on
the part of the railroad corporations, consignors, and consignees to
conform to such rules.  Charges for demurrage shall be uniform so
that the same penalty shall be paid by both shipper or consignee and
railroad corporation for an equal number of cars for each day for
which demurrage is charged.
   The commission may provide the time within which express packages
shall be received, gathered, transported, and delivered at
destination, and the limits within which express packages shall be
gathered and distributed and telegraph and telephone messages
delivered without extra charge. 
  SEC. 50.  Section 769.5 of the Public Utilities Code is repealed.

   769.5.  No railroad corporation shall dispose of any passenger car
for scrap or otherwise without the approval of the commission.  The
commission shall approve such disposition only when it finds that
such equipment is not required by the railroad corporation in the
furnishing of passenger transportation service and that the
disposition thereof will not render the railroad corporation unable
to provide the level of service required by the commission to be
furnished with such equipment. 
  SEC. 51.  Section 788 of the Public Utilities Code is amended to
read:
   788.   (a) This section applies only to a telephone
corporation that is a provider of local exchange service.
   (b)  On or before March 1, 1992, and annually thereafter,
every telephone corporation  operating within a service area
  that is a provider of local exchange service 
shall issue to each of its residential subscribers  in the
service area  , in a manner and form approved by the
commission, a notice containing the following information: 
   (a)  
   (1)  An explanation of the responsibilities of the subscriber
and the  telephone corporation in relation to the customer'
s inside telephone wiring, as that term is defined by and pursuant to
Section 1941.4 of the Civil Code, including an explanation of lessor
and tenant obligations. 
   (b)  
   (2)  An explanation of the telephone corporation's procedures
and charges for determining and notifying the subscriber of whether
a malfunction in its telephone wire is located in the telephone
 corporation's telephone  network, or is located in
the subscriber's inside telephone wiring, including customer-provided
equipment.  
   (c)  
   (3)  If the telephone corporation offers any services to
maintain or repair a subscriber's inside telephone wiring, a full
description of the types of services offered, including the rates,
charges, and conditions for these services, and whether those
services are offered by nonutility providers.
  SEC. 52.  Section 853 of the Public Utilities Code is amended to
read:
   853.  (a) This article does not apply to any person or corporation
which transacts no business subject to regulation under this part,
except performing services or delivering commodities for or to public
utilities or municipal corporations or other public agencies
primarily for resale or use in serving the public or any portion
thereof, but shall apply to any public utility, and any subsidiary or
affiliate of, or corporation holding a controlling interest in, a
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) The commission may from time to time by order or rule, and
subject to those terms and conditions as may be prescribed therein,
exempt any public utility or class of public utility from  this
article if it finds that the application thereof with respect to the
public utility or class of public utility is not necessary in the
public interest.  The commission may establish rules or impose
requirements deemed necessary to protect the interest of the
customers or subscribers of the public utility or class of public
utility exempted under this subdivision.  These rules or requirements
may include, but are not limited to, notification of a proposed sale
or transfer of assets or stock and provision for refunds or credits
to customers or subscribers.  
   (c) The provisions of Sections 851 and 854 that prohibit any
assignment, acquisition, or change of control without advance
authorization from the commission, do not apply to the transfer of
the ownership interest in a water utility, with 10,000 or fewer
service connections, from a decedent to a member of the decedent's
family in the manner provided in Section 240 of the Probate Code or
by a will, trust, or other instrument. 
  SEC. 53.  Section 874 of the Public Utilities Code is amended to
read:
   874.  The lifeline telephone service rates and charges shall be as
follows:
   (a) In a residential subscriber's service area where measured
service is not available, the lifeline telephone service rates shall
not be more than 50 percent of the rates for basic flat rate service,
exclusive of federally mandated end user access charges, available
to the residential subscriber.
   (b) In a residential subscriber's service area where measured
service is available, the subscriber may elect either of the
following:
   (1) A lifeline telephone service measured rate of not more than 50
percent of the basic rate for measured service, exclusive of
federally mandated end user access charges, available to the
residential subscriber.
   (2) A lifeline flat rate of not more than 50 percent of the rates
for basic flat rate service, exclusive of federally mandated end user
access charges, available to the residential subscriber.
   (c) The lifeline telephone service installation or connection
charge, or both, shall not be more than 50 percent of the charge for
basic residential service installation or connection, or both.  The
commission may limit the number of installation and connection
charges, or both, that may be incurred at the reduced rate in any
given period.
   (d) There shall be no charge to the residential customer who has
filed a valid eligibility statement for changing out of lifeline
service.
   (e) The commission shall  assess whether there is a problem with
customers who fraudulently obtain lifeline telephone service.  If the
commission determines that there is a problem, it shall recommend
and promulgate appropriate solutions.   The results of this
assessment and the solutions determined by the commission shall be
reported to the Legislature on or before December 31, 1993. 
  This assessment and the solutions determined by the commission
shall not, in and of themselves, change the procedures developed
pursuant to Section 876.
  SEC. 54.  Section 882 of the Public Utilities Code is amended to
read:
   882.  (a) The Public Utilities Commission shall, as soon as
practicable, open a proceeding or proceedings to, or as part of
existing proceedings shall, consider ways to ensure that advanced
telecommunications services are made available as ubiquitously and
economically as possible, in a timely fashion, to California's
citizens, institutions, and businesses.  The proceeding or
proceedings should be completed within one year of commencement.
   (b) The proceeding or proceedings shall develop rules, procedures,
orders, or strategies, or all of these, that seek to achieve the
following goals:
   (1) To provide all citizens and businesses with access to the
widest possible array of advanced communications services.
   (2) To provide the state's educational and health care
institutions with access to advanced communications services.
   (3) To ensure cost-effective deployment of technology so as to
protect ratepayers' interests and the affordability of
telecommunications services.
   (c) In the proceeding or proceedings, the commission should also
consider, but need not limit its consideration to, all of the
following:
   (1) Whether the definition of universal service should be
broadened.
   (2) How to encourage the timely and economic development of an
advanced public communications infrastructure, which may include a
variety of competitive providers.  
   (d) The commission shall issue a report or order, or reports or
orders, providing for specific action in regard to the issues set
forth in this section.  It is the commission's goal to issue its
report or order, or reports or orders, on or before January 1, 1995.

  SEC. 55.  Section 1701.1 of the Public Utilities Code is amended to
read:
   1701.1.  (a) The commission, consistent with due process, public
policy, and statutory requirements, shall determine whether a
proceeding requires a hearing.  The commission shall determine
whether the matter requires a quasi-legislative, an adjudication, or
a ratesetting hearing.  The commission's decision as to the nature of
the proceeding shall be subject to a request for rehearing within 10
days of the date of that decision.  If that decision is not appealed
to the commission within that time period it shall not be
subsequently subject to judicial review.  Only those parties who have
requested a rehearing within that time period shall subsequently
have standing for judicial review and that review shall only be
available at the conclusion of the proceeding.   The commission shall
render its decision regarding the rehearing within 30 days.  The
commission shall establish regulations regarding ex parte
communication on case categorization issues.
   (b) The commission upon initiating a hearing shall assign one or
more commissioners to oversee the case and an administrative law
judge where appropriate.  The assigned commissioner shall schedule a
prehearing conference.  The assigned commissioner shall prepare and
issue by order or ruling a scoping memo that describes the issues to
be considered and the applicable timetable for resolution.
   (c) (1) Quasi-legislative cases, for purposes of this article, are
cases that establish policy, including, but not limited to,
rulemakings and investigations which may establish rules affecting an
entire industry.
   (2) Adjudication cases, for purposes of this article, are
enforcement cases and complaints except those challenging the
reasonableness of any rates or charges as specified in Section 1702.

   (3) Ratesetting cases, for purposes of this article, are cases in
which rates are established for a specific company, including, but
not limited to, general rate cases, performance-based ratemaking, and
other ratesetting mechanisms.
   (4) "Ex parte communication," for purposes of this article, means
any oral or written communication between a decisionmaker and a
person with an interest in a matter before the commission concerning
substantive, but not procedural issues, that does not occur in a
public hearing, workshop, or other public proceeding, or on the
official record of the proceeding on the matter.  "Person with an
interest," for purposes of this article, means any of the following:

   (A) Any applicant, an agent or an employee of the applicant, or a
person receiving consideration for representing the applicant, or a
participant in the proceeding on any matter before the commission.
   (B) Any person with a financial interest, as described in Article
1 (commencing with Section 87100) of Chapter 7 of Title 9 of the
Government Code, in a matter before the commission, or an agent or
employee of the person with a financial interest, or a person
receiving consideration for representing the person with a financial
interest.
   (C) A representative acting on behalf of any civic, environmental,
neighborhood, business, labor, trade, or similar organization who
intends to influence the decision of a commission member on a matter
before the commission.
   The commission shall by regulation adopt and publish a definition
of decisionmakers and persons for purposes of this section, along
with any requirements for written reporting of ex parte
communications and appropriate sanctions for noncompliance with any
rule proscribing ex parte communications.  The regulation shall
provide that reportable communications shall be reported by the
party, whether the communication was initiated by the party or the
decisionmaker.  Communications shall be reported within three working
days of the communication by filing  the original and 12
copies of  a "Notice of Ex Parte Communication" with the
commission  in accordance with the procedures established by the
commission for the service of that notice  .  The notice shall
include the following information:
   (i) The date, time, and location of the communication, and whether
it was oral, written, or a combination.
   (ii) The identity of the recipient and the person initiating the
communication, as well as the identity of any persons present during
the communication.
   (iii) A description of the party's, but not the decisionmaker's,
communication and its content, to which shall be attached a copy of
any written material or text used during the communication.
  SEC. 56.  Section 1823 of the Public Utilities Code is repealed.

   1823.  The commission shall periodically review and monitor the
development and use of any operations model used by any public
utility.  The commission or any party may use the output of these
operations models as evidence in a proceeding or hearing, without
introducing into evidence the full methodology used to generate this
output, if the commission has monitored that operations model
continuously for at least 12 months before the hearing or proceeding
and has reviewed and verified the operations model for accuracy no
more than three months before the hearing or proceeding.  However, no
party shall be prohibited from reasonably
                 cross-examining any witness who introduces this
evidence. 
  SEC. 57.  Section 1824 of the Public Utilities Code is repealed.

   1824.  The commission shall conduct studies to verify, validate,
and improve the production cost planning models and the financial
planning models of public utilities to facilitate their use by the
commission.  The commission shall complete the studies of the
respective models used and report the results thereof to the
Legislature on or before January 1, 1987. 
  SEC. 58.  Section 1904 of the Public Utilities Code is amended to
read:
   1904.  The commission shall also charge and collect the following
fees:
   (a) Except as otherwise provided in  Sections 1010 and
  Section  1036 for filing each application for a
certificate of public convenience and necessity, or for the mortgage,
lease, transfer, or assignment thereof, seventy-five dollars ($75).

   (b) For a certificate authorizing an issue of bonds, notes, or
other evidences of indebtedness, two dollars ($2) for each one
thousand dollars ($1,000) of the face value of the authorized issue
or fraction thereof up to one million dollars ($1,000,000), one
dollar ($1) for each one thousand dollars ($1,000) over one million
dollars ($1,000,000) and up to ten million dollars ($10,000,000), and
fifty cents ($0.50) for each one thousand dollars ($1,000) over ten
million dollars ($10,000,000), with a minimum fee in any case of
fifty dollars ($50).  No fee need be paid on such portion of any such
issue as may be used to guarantee, take over, refund, discharge, or
retire any stock, bond, note or other evidence of indebtedness on
which a fee has theretofore been paid to the commission.  If the
commission modified the amount of the issue requested in any case and
the applicant thereupon elects not to avail itself of the commission'
s authorization, no fee shall be paid, and if such fee is paid prior
to the issuance of such certificate by the commission, such fee shall
be returned.
  SEC. 59.  Chapter 4 (commencing with Section 2739) of Part 2 of
Division 1 of the Public Utilities Code is repealed.
  SEC. 60.  Section 2851 of the Public Utilities Code is repealed.

   2851.  (a) The commission shall investigate the feasibility of
alternative methods of providing low-interest, long-term financing of
solar energy systems for utility  customers, including, but not
limited to, direct financing by investor-owned utilities and
conventional financing through banks, savings and loan associations,
or other sources.
   (b) In conducting its investigation, the commission shall consider
the economic and financial impact of each alternative on the
investor-owned utilities, the relative costs and benefits of each
alternative to all utility customers, and the extent to which each
alternative would facilitate the implementation of cost-effective
solar energy systems.
   (c) The commission shall report its findings and recommendations
to the Legislature on or before January 1, 1980. 
  SEC. 61.  Section 2881 of the Public Utilities Code is amended to
read:
   2881.  (a) The commission shall design and implement a program
 whereby each telephone corporation shall   to
 provide a telecommunications device capable of serving the
needs of individuals who are deaf or hearing impaired, together with
a single party line, at no charge additional to the basic exchange
rate, to any subscriber who is certified as an individual who is deaf
or hearing impaired by a licensed physician and surgeon,
audiologist, or a qualified state or federal agency, as determined by
the commission, and to any subscriber that is an organization
representing individuals who are deaf or hearing impaired, as
determined and specified by the commission pursuant to subdivision
(e).  A licensed hearing aid dispenser may certify the need of an
individual to  participate in the program if that individual has been
previously fitted with an amplified device by the dispenser and the
dispenser has the individual's hearing records on file prior to
certification.
   (b) The commission shall also design and implement a program
 whereby each telephone corporation shall   to
 provide a dual-party relay system, using third-party
intervention to connect individuals who are deaf or hearing impaired
and offices of organizations representing individuals who are deaf or
hearing impaired, as determined and specified by the commission
pursuant to subdivision (e), with persons of normal hearing by way of
intercommunications devices for individuals who are deaf or hearing
impaired and the telephone system, making available reasonable access
of all phases of public telephone service to telephone subscribers
who are deaf or hearing impaired.  In order to make a dual-party
relay system that will meet the requirements of individuals who are
deaf or hearing impaired available at a reasonable cost, the
commission shall initiate an investigation, conduct public hearings
to determine the most cost-effective method of providing dual-party
relay service to the deaf or hearing impaired when using a
telecommunications device, and solicit the advice, counsel, and
physical assistance of statewide nonprofit consumer organizations of
the deaf, during the development and implementation of the system.
The commission shall phase in this program, on a geographical basis,
over a three-year period ending on January 1, 1987.  The commission
shall apply for certification of this program under rules adopted by
the Federal Communications Commission pursuant to Section 401 of the
Americans with Disabilities Act of 1990 (Public Law 101-336).
   (c) The commission shall also design and implement a program
whereby specialized or supplemental telephone communications
equipment may be provided to subscribers who are certified to be
disabled at no charge additional to the basic exchange rate.  The
certification, including a statement of medical need for specialized
telecommunications equipment, shall be provided by a licensed
physician and surgeon acting within the scope of practice of his or
her license, or by a qualified state or federal agency as determined
by the commission.  The commission shall, in this connection, study
the feasibility of, and implement, if determined to be feasible,
personal income criteria, in addition to the certification of
disability, for determining a subscriber's eligibility under this
subdivision.
   (d) The commission shall establish a rate recovery mechanism
through a surcharge not to exceed one-half of 1 percent uniformly
applied to a subscriber's intrastate telephone service, other than
one-way radio paging service and universal telephone service, both
within a service area and between service areas, to allow 
telephone corporations   providers of the equipment and
service specified in subdivisions (a), (b), and (c),  to recover
costs as they are incurred under this section.  The surcharge shall
be in effect until January 1, 2001.  The commission shall require
that the programs implemented under this section be identified on
subscribers' bills, and shall establish a fund and require separate
accounting for each of the programs implemented under this section.
   (e) The commission shall determine and specify those statewide
organizations representing the deaf or hearing impaired which shall
receive a telecommunications device pursuant to subdivision (a) or a
dual-party relay system pursuant to subdivision (b), or both, and in
which offices the equipment shall be installed in the case of an
organization having more than one office.   The 

   (f) The  commission  shall   may 
direct  the   any  telephone 
corporations   corporation  subject to its
jurisdiction to comply with its determinations and specifications
 in this regard   pursuant to this section 
.  
   (f)  
   (g)  The commission shall annually review the surcharge level
and the balances in the funds established pursuant to subdivision
(d).  Until January 1, 2001, the commission shall be authorized to
make, within the limits set by subdivision (d), any necessary
adjustments to the surcharge to ensure that the programs supported
thereby are adequately funded and that the fund balances are not
excessive.  A fund balance which is projected to exceed six months'
worth of projected expenses at the end of the fiscal year is
excessive.  
   (g)  
   (h)  The commission shall prepare and submit to the
Legislature, on or before December 31, 1988, and annually thereafter,
a report on the fiscal status of the programs established and funded
pursuant to this section and Sections 2881.1 and 2881.2.  The report
shall include a statement of the surcharge level established
pursuant to subdivision (d) and revenues produced by the surcharge,
an accounting of program expenses, and an evaluation of options for
controlling those expenses and increasing program efficiency,
including, but not limited to, all of the following proposals:
   (1) The establishment of a means test for persons to qualify for
program equipment or free or reduced charges for the use of
telecommunication services.
   (2) If and to the extent not prohibited under Section 401 of the
Americans with Disabilities Act of 1990 (Public Law 101-336), the
imposition of limits or other restrictions on maximum usage levels
for the relay service, which shall include the development of a
program to provide basic communications requirements to all relay
users at discounted rates, including discounted toll call rates, and,
for usage in excess of those basic requirements, at rates which
recover the full costs of service.
   (3) More efficient means for obtaining and distributing equipment
to qualified subscribers.
   (4) The establishment of quality standards for increasing the
efficiency of the relay system.  
   (h)  
   (i)  In order to continue to meet the access needs of
individuals with functional limitations of hearing, vision, movement,
manipulation, speech  ,  and interpretation of
information, the commission shall perform ongoing assessment of, and
if appropriate, expand the scope of the program to allow for
additional access capability consistent with evolving
telecommunications technology.
  SEC. 62.  Section 2881.1 of the Public Utilities Code is amended to
read:
   2881.1.  (a) In addition to the requirements of Section 2881, the
commission shall design and implement a program  whereby each
telephone corporation shall   to  provide a
telecommunications device capable of servicing the needs of the deaf
or severely hearing-impaired, together with a single party line, at
no charge additional to the basic exchange rate, to any subscriber
which is an agency of state government and which the commission
determines serves a significant portion of the deaf or severely
hearing-impaired population, and to an office located in the State
Capitol and selected by the Joint Rules Committee, for purposes of
access by the deaf or severely hearing-impaired to Members of the
Legislature.
   (b) The commission shall permit  telephone corporations
  providers of equipment and service specified in
subdivision (a)  to recover costs as they are incurred under
this section pursuant to subdivision  (c)   (d)
 of Section 2881. 
   (c) The commission may direct any telephone corporation subject to
its jurisdiction to comply with its determinations pursuant to this
section.
  SEC. 63.  Section 2882 of the Public Utilities Code is repealed.

   2882.  (a) The commission shall conduct an investigation and
hearings on the establishment of telephone rates with respect to
whether there should be no additional charge to subscribers for
tone-dialing service.  The commission shall, in this connection,
consider whether to redefine basic telephone service so that rates
for tone-dialing service shall be included in the charge for basic
telephone service, together with factors such as, but not limited to,
the following:
   (1) The extent to which tone-dialing capability already exists in
service areas.
   (2) The cost to the corporation for the purchase or modification
of equipment  to provide tone-dialing service to all subscribers.
   (3) Alternate methods to adjust user rates to recover costs which
would be incurred to provide tone-dialing service to all subscribers.

   (b) In establishing telephone rates, the commission shall take
into consideration any economies and savings to the corporation
realized through the complete conversion to tone-dialing capability.

  SEC. 64.  Section 2882.5 of the Public Utilities Code is repealed.

   2882.5.  (a) It is the intent of the Legislature to create a
billing standard for telephone corporations that accurately reflects
actual usage by the consumer.
   (b) The commission shall investigate the advantages and
disadvantages of requiring telephone corporations to bill in
increments shorter than one minute.  The investigation shall include
an opportunity for public comment.  The commission shall report to
the Legislature on its findings and recommendations not later than
December 31, 1995.
  SEC. 65.  Section 2889.8 of the Public Utilities Code is amended to
read:
   2889.8.  The commission  periodically  shall assess the
reliability of the public telecommunications network and, if
necessary, develop recommendations for improvement.  The assessment
shall include, but not be limited to, all of the following:
   (a) An analysis of those factors that pose a risk to network
reliability, including the adequacy of independent sources of reserve
power.
   (b) Consideration as to whether development of reliability
standards is appropriate.
   (c) Consideration as to whether procedures should be developed to
notify customers about accessing other telecommunications companies
in the event of a service disruption.  
   (d) The commission shall report its analysis, findings, and
recommendations to the Legislature by December 31, 1993.
  SEC. 66.  Section 3950 is added to the Public Utilities Code, to
read:
   3950.  It is a violation of law for any person or corporation to
operate, or cause to be operated, on the highways of this state, any
motor vehicle in the transportation of property or passengers for
compensation in interstate commerce without having first complied
with the requirements of this chapter.  That violation may be
prosecuted and punished as provided in Section 16560 of the Vehicle
Code.
  SEC. 67.  Section 4006 of the Public Utilities Code is amended to
read:
   4006.   (a)  A fee of  twenty-five
  thirty-five  dollars  ($25) 
 ($35) shall be paid to the commission for the filing of the
initial registration of private carriers of passengers, and an
annual renewal fee of  twenty   thirty 
dollars  ($20)   ($30)  shall also be paid
by private carriers of passengers.  The fees required to be paid by
carriers of passengers pursuant to this section shall be deposited in
the Public Utilities Commission Transportation Reimbursement Account
in the General Fund.  
   (b) Notwithstanding subdivision (a), the commission may increase
the amount of the initial registration fee to not more than
thirty-five dollars ($35) in the case of private carriers of
passengers, and the amount of the annual renewal fee to not more than
thirty dollars ($30) in the case of private carriers of passengers
if the commission finds and determines that to do so is necessary to
defray the costs of implementing Section 4022.  If the commission
increases the fee pursuant to this subdivision, it shall prepare and
transmit to the Joint Legislative Budget Committee, the Assembly
Committee on Utilities and Commerce, and the Senate Committee on
Energy and Public Utilities a report of the amount of the increase
instituted together with an audited statement of the receipts and
disbursements related to the administration of private carrier of
passengers registrations. 
  SEC. 68.  Section 4007 of the Public Utilities Code is amended to
read:
   4007.  (a) When the department issues a carrier identification
number pursuant to Section 34507.5 of the Vehicle Code to a private
carrier of passengers, it shall inform the carrier of the provisions
of this chapter and the requirement that the carrier register with
the Public Utilities Commission.
   (b) The department shall periodically, but not less frequently
than quarterly, transmit to the commission a list of the persons,
firms, and corporations  identified as private carriers of
passengers  to whom it has issued a carrier identification
number.  Upon receipt of the list, the commission shall notify the
private carriers of passengers of the registration requirements and
of the penalties for failure to register.
  SEC. 69.  Section 4021 of the Public Utilities Code is amended to
read:
   4021.  (a) Any person or corporation who violates any provision of
this chapter is guilty of  an infraction   a
misdemeanor  , and is punishable by a fine of not more than two
thousand five hundred dollars ($2,500), or by imprisonment in the
county jail for not more than three months, or both.
   (b)  This section shall become operative on June 30, 1991.
  A violation of this section is an infraction subject
to the procedures described in Sections 19.6 and 19.7 of the Penal
Code when the conditions specified in either paragraph (1) or (2) of
subdivision (d) of Section 17 of the Penal Code are met. 
  SEC. 70.  Section 4458 of the Public Utilities Code is amended to
read:
   4458.  (a) The commission shall establish a surcharge to be paid
by operators with distribution systems subject to this chapter on
propane purchased for distribution to their customers.  The surcharge
shall be designed to partially recover the commission's costs of the
propane safety inspection and enforcement program required by this
chapter, and to partially recover the commission's costs of
collecting and administering the surcharge. The commission shall
collect the surcharge from the operators and deposit it into the
Propane Safety Inspection and Enforcement Program Trust Fund, which
 shall be used, upon appropriation  , 
notwithstanding Section 13340 of the Government Code, is continuously
appropriated, without regard to fiscal years, to be used  for
the purposes of this chapter.  The surcharge shall be assessed on a
per space or lot basis, shall not exceed twenty-five cents ($0.25)
per month, and shall be collected by the commission on an annual
basis.
   (b) Notwithstanding any other provision of law or local ordinance,
rule, regulation, or initiative measure, the operator shall be
entitled to recover the surcharge collected pursuant to subdivision
(a) from its customers.  However, the charge to any customer, to
allow for the operator's recovery, shall not exceed the actual
surcharge.
  SEC. 71.  Section 5001.5 of the Public Utilities Code is amended to
read:
   5001.5.  In addition to those purposes specified in Sections 5001
and 5005, the commission may utilize the funds it collects pursuant
to this chapter for the following purposes:
   (a) The collection, aggregation, and analysis of data and
information on the economics of the  highway  
household goods  carrier industry.
   (b) The  enforcement of highway carrier certificate,
permit, entry and licensure requirements, including safety, financial
responsibility and insurance requirements.
   (c) The creation and enforcement of rates and charges systems for
highway carrier services prescribed by statute or commission rule.
   (d) The  implementation of statutory policies or other
legislative directives contained in law relating to the 
highway   household goods  carrier industry.
  SEC. 72.  Section 5002 of the Public Utilities Code is amended to
read:
   5002.  "Gross operating revenue" as used in this chapter includes
all revenue derived from the transportation of property having origin
and destination within this state,  except revenue derived
from the transportation of such property in interstate or foreign
commerce or from the transportation of vehicles by ferries 
 where the revenue is derived from transportation performed under
a permit issued by the commission  .
  SEC. 73.  Section 5003.2 of the Public Utilities Code is amended to
read:
   5003.2.  (a) Notwithstanding Section 5003.1, the commission shall
require every highway carrier otherwise subject to Section 5003.1 for
whom the commission does not establish minimum or maximum rates, or
require rates to be on file with the commission, to pay a fee equal
to 1/10 of 1 percent of the amount of gross operating revenue.
   (b)  When a household goods carrier pursuant to Section 5137
elects to transport under its household goods carrier permit used
office, store, and institution furniture and fixtures,
notwithstanding Section 5003.1, the fee on the gross operating
revenue derived from transporting those items shall be one-tenth of 1
percent.
   (c)  The commission may raise the fee imposed by Section
5003.1 upon those persons and corporations subject to that section
for whom the commission establishes minimum or maximum rates or
requires rates to be on file, up to a maximum of one-half of 1
percent of gross operating revenue, if the commission decides this
increase is necessary to maintain adequate financing for the
Transportation Rate Fund.
  SEC. 74.  Section 5009 of the Public Utilities Code is amended to
read:
   5009.  The employees, representatives, and inspectors of the
commission may, under its order or direction, inspect and examine any
books, accounts, records, memoranda, documents, papers, and
correspondence kept or required to be kept by any transportation
agency  referred to in this chapter  .  The provisions of
this section shall, to the extent deemed necessary by the commission,
apply to persons having direct or indirect control over, or
affiliated with any transportation agency.
  SEC. 75.  Section 5012 of the Public Utilities Code is amended to
read:
   5012.   Commencing with the 1993-94 fiscal year, and each
subsequent fiscal year, except as provided in subdivision (f) of
Section 421, the   The  Public Utilities Commission
shall conduct an audit of the expenditures of the funds received
pursuant to this chapter  each fiscal year  .  The results
of this audit shall be reported in writing,  commencing on or
before February 15, 1995, with respect to the audit for the 1993-94
fiscal year, and  on or before February 15th of each year
thereafter, with respect to the audit for the fiscal year ending on
the previous June 30th, to the appropriate policy and budget
committees of the respective houses of the Legislature.
  SEC. 76.  Section 5102 of the Public Utilities Code is amended to
read:
   5102.  The use of the public highways for the transportation of
used household goods and personal effects  , office, store,
and institution furniture and fixtures  for compensation is
a business affected with a public interest. It is the purpose of this
chapter to preserve for the public the full benefit and use of
public highways consistent with the needs of commerce without
unnecessary congestion or wear and tear upon such highways; to secure
to the people just, reasonable and nondiscriminatory rates for
transportation by carriers operating upon the highways; and to secure
full and unrestricted flow of traffic by motor carriers over the
highways which will adequately meet reasonable public demands by
providing for the regulation of rates of all carriers so that
adequate and dependable service by all necessary carriers shall be
maintained and the full use of the highways preserved to the public.

  SEC. 77.  Section 5109 of the Public Utilities Code is amended to
read:
   5109.  "Household goods carrier" includes every corporation or
person, their lessees, trustee, receivers or trustees appointed by
any court whatsoever, engaged in the transportation for compensation
or hire as a business by means of a motor vehicle or motor vehicles
being used in the transportation of used household goods and personal
effects  , office, store, and institution furniture and
fixtures  over any public highway in this state.
  SEC. 78.  Section 5112 of the Public Utilities Code is amended to
read:
   5112.  The regulation of the transportation of used household
goods and personal effects  , office, store, and institution
furniture and fixtures  in a motor vehicle or motor vehicles
over any public highway in this state shall be exclusively as
provided in this chapter.  Any provision of the Public Utilities Act
 or the Highway Carriers Act  in conflict with the
provisions of this chapter  is superseded and repealed
  does not apply to a household goods carrier  .
  SEC. 79.  Section 5113 of the Public Utilities Code is amended to
read:
   5113.  The transportation of used household goods  ,
  and  personal effects  , office, store,
and institution furniture and fixtures  in any truck or
trailer for compensation over any public highway in this 
State   state  is a highly specialized type of
truck transportation.  This chapter is enacted for the limited
purpose of providing necessary regulation for this specialized type
of truck transportation only, and is not to be construed for any
purpose as a precedent for the extension of such regulation to any
other type of truck transportation not presently so restricted.
  SEC. 80.  Section 5133 of the Public Utilities Code is amended to
read:
   5133.  No household goods carrier shall engage, or attempt to
engage, in the business of the transportation of used household goods
and personal effects,  office, store, and institution
furniture and fixtures for compensation,  by motor vehicle
over any public highway in this state, unless there is in force a
permit issued by the commission authorizing those operations.
  SEC. 81.  Section 5137 is added to the Public Utilities Code, to
read:
                                               5137.  (a)  A
household goods carrier, under its permit, may also transport used
office, store, and institution furniture and fixtures.  The
commission shall not regulate the service, routes, or prices charged
for the transportation of used office, store, and institution
furniture and fixtures by a household goods carrier.  The commission
shall do nothing under this section that is in conflict with federal
law as contained in Section 14501 of Title 49 of the United States
Code.
   (b) If a household goods carrier elects to transport used office,
store, and institution furniture and fixtures under its household
goods carrier permit all of the following apply:
   (1) A permit is not needed from the Department of Motor Vehicles
under the Motor Carriers of Property Permit Act in the Vehicle Code
to conduct that transportation.
   (2) The transportation is subject to the commission's safety and
insurance requirements, except that the cargo insurance requirements
of subdivision (c) of Section 5161 shall not apply.
   (3) The household goods carrier shall pay the fee specified in
subdivision (b) of Section 5003.2.
   (c) To exercise the election pursuant to this section, a household
goods carrier shall notify the commission of the election or the
revocation of that election by filing a notice with the commission in
the manner and on the form prescribed by the commission.  If a
household goods carrier does not elect to be subject to the
provisions of this section or revokes a prior election to do so, the
household goods carrier shall comply with the provisions of the Motor
Carriers of Property Permit Act when transporting used office,
store, and institution furniture and fixtures.
  SEC. 82.  Section 5191 of the Public Utilities Code is amended to
read:
   5191.   (a)  The commission shall establish or approve
just, reasonable, and nondiscriminatory maximum or minimum or maximum
and minimum rates to be charged by household goods carriers for the
transportation of  property subject to this chapter 
 used household goods and personal effects  and for
accessorial service performed in connection therewith.  
   In  
   (b) In  establishing or approving rates, the commission shall
account for the cost of all transportation service performed or to
be performed, for any accessorial service performed or to be
performed in connection therewith, the value of the commodity
transported, and the value of the equipment, facilities, and
personnel reasonably necessary to perform the service.  
   The  
   (c) The  commission shall establish or approve no minimum
rate for household goods carriers unless it finds that the rate is at
a sufficient level to allow safe operation upon the highways of the
state and accounts for the cost of trained drivers and other
reasonable expense of operation of household goods carriers.

   In  
   (d) In  establishing or approving any maximum rates for
household goods carriers, the commission shall , on or immediately
after January 1, 1996, adjust the current level of maximum rates by
application and use of the index number methodology relied upon by
the commission in 1992 to assist in the establishment of the current
level of maximum rates and make that adjustment for the time period
from the date that index was last relied upon to the latest date that
index data is available.  Thereafter, maximum rates shall be
adjusted at least once annually by use of the same index methodology,
or another index methodology found by the commission to be
appropriate for the adjustment of household goods carrier maximum
rates, less a reasonable percentage of any index increase to
encourage higher productivity and promote efficiency and economy of
operation by household goods carriers.  The commission may also
adjust maximum rates when deemed reasonable to allow for
extraordinary changes in household goods carrier costs.
  SEC. 83.  Section 5195 of the Public Utilities Code is repealed.

   5195.  If any household goods carrier desires to perform any
transportation or accessorial service at a lesser rate than the
minimum established rates, the commission shall, upon finding that
the proposed rate is reasonable and in conformity with Section 5191,
authorize the lesser rate for not more than one year. 
  SEC. 84.  Section 5259.5 of the Public Utilities Code is amended to
read:
   5259.5.  (a) Whenever the commission determines that any household
goods carrier or any officer, director, or agent of any household
goods carrier has abandoned, or is abandoning stored household goods
or property of any shippers under contract with the carrier or
carriers, it may commence a proceeding in superior court for the
purpose of having the court appoint either a receiver or commission
staff to identify the stored items of property, to take possession of
the property, and to arrange the return of the property to its
owners in accordance with the orders of the court and with regard for
the protection of all property rights involved.
   (b) The proceeding shall be brought in the superior court in and
for the county, or city and county, in which the cause or some part
thereof arose, or in which the person or corporation complained of
has its principal place of business, or in which the person
complained of resides.  The commission shall commence the proceeding
in the name of the people of the State of California, by petition to
the superior court, alleging the facts and circumstances involved and
praying for appropriate relief by way of mandamus, or injunction, or
the appointment of a receiver, and authorizing the commission to
arrange for the hiring of a receiver who shall be required to comply
with the requirements of Sections 566, 567, and 568 of the Code of
Civil Procedure.
   (c) The court may also appoint a receiver to manage the business
of the household goods carrier or carriers and return property to its
owner or owners upon a showing by the commission satisfactory to the
court that the abandonment or threatened abandonment by the carrier
jeopardizes property or funds of others in the custody or under the
control of the carrier.  The court may make any other order that it
finds appropriate to protect and preserve those funds or property.
  Service of the order of the court on a household goods carrier
may be accomplished by person delivery to the person to be served, or
by posting a copy of the order at the dwelling house, usual place of
abode, usual place of business, or usual residence of the person to
be served and thereafter mailing a copy of the order, by first-class
mail, postage prepaid, to the location where the order was posted.

   (d) In the event a receiver is appointed by the court and the
commission is responsible for contracting for a receiver to carry out
the duties authorized by this section, the commission may contract
on an emergency basis with a qualified person or corporation to serve
as receiver under the conditions and guidelines set by the court.
The contract for the receiver services may be executed by the
commission on an expedited basis and without compliance with the
requirements of Sections 11042 and 14615 of the Government Code and
Sections 10295 and 10318 of the Public Contract Code.  The receiver
shall be paid from the fees collected pursuant to Section 5003.2.
  SEC. 85.  Section 5326 of the Public Utilities Code is amended to
read:
   5326.  An adequate transportation system is essential to the
welfare of the state, and an important part of that system is service
rendered by  highway   household goods 
carriers.
  SEC. 86.  Section 5328 of the Public Utilities Code is amended to
read:
   5328.  (a) On and after the effective date of this article, there
is imposed upon every household goods carriers, and every person or
corporation, owning or operating motor vehicles in the transportation
of property for hire upon the public highways, under the
jurisdiction of the commission, a license fee equal to one-tenth of 1
percent of gross operating revenue, which shall be payable to the
commission in the manner and at the times provided for the payment of
the fee provided in Section 5003.1.  For purposes of this section,
"gross operating revenue" shall be the gross operating revenue
defined in Section 5002.
   (b) The license fee imposed by this section is in lieu of all city
or city and county excise or license taxes of any kind, character,
or description whatever, upon the intercity transportation business
of any  express corporation, freight forwarder, motor
transportation broker or   household goods carrier, and
every  person or corporation  ,  owning or
operating motor vehicles in the transportation of property for hire
upon the public highways, under the jurisdiction of the commission.
   (c) This section does not prohibit the imposition by any city, or
city and county, of any excise or license tax authorized under
Division 2 (commencing with Section 6001) of the Revenue and Taxation
Code.
  SEC. 87.  Section 5329 of the Public Utilities Code is amended to
read:
   5329.  On and after the effective date of this article, any person
or corporation, subject to the license fee imposed by Section
 4304   5328  , required to pay any excise
or license tax of any kind, character, or description whatever
imposed by any city, or city and county, other than an excise or
license tax authorized under Division 2 (commencing with Section
6001) of the Revenue and Taxation Code, for the privilege of doing
any transportation business therein on or after the effective date of
this article  , may credit the amount of the tax against the
  and on which it pays the license  fee imposed by
Section  4304   5328, may credit the amount of
the tax against the fee imposed by Section 5328  .
  SEC. 88.  Section 5331 of the Public Utilities Code is amended to
read:
   5331.  (a) If any person or corporation is in default in the
payment of the license fee prescribed by this chapter for a period of
30 days or more, the commission may suspend or revoke any 
certificate of public convenience and necessity,  permit
 ,  or license of the person or corporation, shall
estimate from all available information the gross operating revenue
of that person or corporation, shall compute the license fee required
by Section  4304   5328 , and shall impose
a penalty of 25 percent of the fee for failure, neglect, or refusal
to report.  In no event shall the amount of the penalty be less than
one dollar ($1).  Upon payment of the estimated license fee and the
penalty, the  certificate,  permit  ,
 or license of the agency suspended in accordance with the
provisions of this section shall be reinstated.
   (b) The commission may grant a reasonable extension of the 30-day
period to any person or corporation, upon written application of the
person or corporation and showing of the necessity for the extension.

   (c) Upon the revocation of any operating authority issued to any
person or corporation subject to this chapter, all fees provided for
by this chapter shall become due and payable immediately.
  SEC. 89.  Section 7531.5 of the Public Utilities Code is amended to
read:
   7531.5.  Upon receipt by it of an application, filed with either
the  Interstate Commerce Commission   federal
Surface Transportation Board  or the Public Utilities
Commission, to abandon a line of railroad, the Public Utilities
Commission shall forward a copy of the application to the 
State   Department of  Transportation 
Board within 10 days.
  SEC. 90.  Section 7532 of the Public Utilities Code is repealed.

   7532.  The commission may authorize the discontinuance of
operation in whole or in part of any line of railroad for such period
of time and upon such conditions as the commission determines,
without forfeiture of the right to operate the railroad. 
  SEC. 91.  Section 7532.5 of the Public Utilities Code is repealed.

   7532.5.  (a) Every railroad corporation that intends to abandon,
or discontinue service on, any spur, industrial, team, switching, or
side track providing intermodal service to any community or shipper
shall file an application with the commission and furnish notice of
its intent to the affected community and shippers at least 90 days
prior to the filing of the application.
   (b) If the abandonment of, or discontinuance of service on, any
spur, industrial, team, switching, or side track has been protested
in writing by any affected shipper or community, and the protest
makes a prima facie showing that the abandonment or discontinuance of
service will have a substantial adverse impact on the affected
community or on any affected shipper, the commission shall hold a
public hearing in the affected area prior to authorizing the
abandonment of, or discontinuance of service on, any spur,
industrial, team, switching, or side track used by a railroad
corporation to provide intermodal service.
   (c) Prior to authorizing the abandonment of, or discontinuance of
service on, any spur, industrial, team, switching, or side track used
by a railroad corporation to provide intermodal service, the
commission shall find all of the following:
   (1) The degree to which the facility in question is profitable.
   (2) Whether that abandonment or discontinuance will have an
adverse impact on the environment.
   (3) Whether that abandonment or discontinuance will have an
adverse impact on the affected community or shippers.  In making this
determination, the commission may take into account the availability
of alternative transportation services. 
  SEC. 92.  Section 7711 of the Public Utilities Code is amended to
read:
   7711.  On or before July 1, 1992, and on or before July 1 annually
thereafter, the commission shall report to the Legislature on sites
on railroad lines in the state it finds to be hazardous.  The report
shall include, but not be limited to, information on all of the
following:
   (a) A list, prepared pursuant to Section 59019 of the Health and
Safety Code, of all commodities transported on railroad lines in the
state that could pose a hazard to the public or the environment in
the event of a train derailment or other accident.
   (b) A description of the quantities of commodities identified in
subdivision (a) that are transported on railroad lines in the state.
The commission shall also describe the locations and routes at, and
on, which the commodities specified in subdivision (a) are
transported.  Railroad corporations shall provide to the commission
all information necessary to comply with this subdivision.
   (c) A list of all railroad derailment accident sites in the state
on which accidents have occurred within at least the previous five
years.  The list shall describe the nature and probable causes of the
accidents, if known  .
   (d) A list of all railroad sites in the state  , and
shall indicate whether the accidents occurred at or near sites 
that the commission  determines   , pursuant to
subdivision (d), has determined  pose a local safety hazard.

   (d) A list of all railroad sites in the state that the commission,
pursuant to Section 20106 of Title 49 of the United States Code,
determines pose a local safety hazard.  The commission may submit in
the annual report the list of railroad sites submitted in the
immediate prior year annual report, and may amend or revise that list
from the immediate prior year as necessary.   Factors that the
commission shall consider in determining a local safety hazard may
include, but need not be limited to, all of the following:
   (1) The severity of grade and curve of track.
   (2) The value of special skills of train operators in negotiating
the particular segment of railroad line.
   (3) The value of special railroad equipment in negotiating the
particular segment of railroad line.
   (4) The types of commodities  transported on or near the
particular segment of railroad line.
   (5) The hazard posed by the release of the commodity into the
environment.
   (6) The value of special railroad equipment in the process of
safely loading, transporting, storing, or unloading potentially
hazardous commodities.
   (7) The proximity of railroad activity to human activity or
sensitive environmental areas.
   (e) In determining which railroad sites pose a local safety hazard
pursuant to subdivision (d), the commission shall consider the
history of accidents at or near the sites.  The commission shall not
limit its determination to sites at which accidents have already
occurred, but shall identify potentially hazardous sites based on the
criteria enumerated in subdivision (d) and all other criteria that
the commission determines influence railroad safety.   The
commission shall also consider whether any local safety hazards at
railroad sites have been eliminated or sufficiently remediated to
warrant removal of the site from the list required under subdivision
(d). 
  SEC. 93.  Section 7902 of the Public Utilities Code is repealed.

   7902.  Any telegraph or telephone corporation may at any time,
with the consent of the persons holding two-thirds of the issued
stock of the corporation, sell, lease, assign, transfer, or convey
any rights, privileges, franchises, or property of the corporation,
except its corporate franchise. 
  SEC. 94.  Section 7902.5 of the Public Utilities Code is repealed.

   7902.5.  (a) Every telephone corporation shall submit to the
commission, on or before May 1, 1984, a report indicating those lines
of business in which it is currently engaged and in which it intends
to engage.  The telephone corporation shall include, in the report,
all of the following:
   (1) An explanation in general terms of how the provision of
telephone service is affected or will be affected by the telephone
corporation's current and anticipated business activities.
   (2) Proposals for suitable accounting and organizational
structures, and regulatory treatment, for each of the current and
anticipated business activities in which the telephone corporation
is, or will be, engaged.
   (b) It is the intent of the Legislature that any information
provided by telephone corporations pursuant to this section does not
bind the telephone corporation, as an implied contract, with
telephone service consumers or with the commission.
   (c) The commission shall review all reports submitted pursuant to
this section and shall submit to the Legislature, on or before August
1, 1984, an analysis of the reports, including recommendations for
future legislative action. 
  SEC. 95.  Section 9202 of the Public Utilities Code is amended to
read:
   9202.  (a) Commencing on or before March 1, 1985, the 
commission and the  State Energy Resources Conservation and
Development Commission shall participate in a meeting on an annual
basis which shall include representatives from all of the following:

   (1) San Diego Gas and Electric Company.
   (2) Pacific Gas and Electric Company.
   (3) Southern California Gas Company.
   (4) Southern California Edison Company.
   (b) Invitations for attendance at the meeting may also be issued
to the following:
   (1) Each municipal corporation, municipal utility district, public
utility district, and irrigation district which furnishes
electricity.
   (2) The Electric Power Research Institute.
   (3) The Gas Research Institute.
   (4) Representatives of consumer or ratepayer organizations as
determined by the commission.
   (c) The chairmanship of each meeting shall be on a rotating basis,
alternating among, and selected by, the participants from the San
Diego Gas and Electric Company, the Pacific Gas and Electric Company,
the Southern California Gas Company, and the Southern California
Edison Company.
   (d) The participants in the meeting shall participate without
compensation.
  SEC. 96.  Section 7232 of the Revenue and Taxation Code is amended
to read:
   7232.  (a) Every motor carrier of property shall annually pay a
permit fee to the Department of Motor Vehicles.  The fees contained
in this section are due and shall be paid by each carrier at the time
of application for an initial motor carrier permit, and upon annual
renewal, with the Department of Motor Vehicles, pursuant to the Motor
Carriers of Property Permit Act, as set forth in Division 14.85
(commencing with Section 34600) of the Vehicle Code.  The Department
of Motor Vehicles may, upon initial application for a motor carrier
permit, assign an expiration date not less than six months, nor more
than 18 months, from date of application, and may charge one-twelfth
of the annual fee for each month covered by the initial permit.  The
fee paid by each motor carrier of property shall be based on the
number of commercial motor vehicles operated in California by the
motor carrier of property.
   (b) As used in this chapter, "motor carrier of property" means any
person who operates any commercial motor vehicle as defined in
subdivision (d).  "Motor carrier of property" does not include  a
 household goods  carriers   carrier 
, as defined in Section 5109 of the Public Utilities Code,  a
household goods carrier transporting used office, store, and
institution furniture and fixtures under its household goods carrier
permits pursuant to Section 5137 of the Public Utilities Code, 
persons providing only transportation of passengers, or a passenger
stage corporation transporting baggage and express upon a passenger
vehicle incidental to the transportation of passengers.
   (c) As used in this chapter, "for-hire motor carrier of property"
means a motor carrier of property, as defined in subdivision (b), who
transports property for compensation.
   (d) As used in this chapter, "commercial motor vehicle" means any
self-propelled vehicle listed in subdivisions (a), (b), (f), (g), and
(k) of Section 34500 of the Vehicle Code, any motor truck of two or
more axles that is more than 10,000 pounds gross vehicle weight
rating, and any other motor vehicle used to transport property for
compensation.  "Commercial motor vehicle" does not include vehicles
operated by household goods carriers, as defined in Section 5109 of
the Public Utilities Code,  vehicles operated by household goods
carriers to transport used office, store, and institution furniture
and fixtures under their household goods carrier permit pursuant to
Section 5137 of the Public Utilities Code,  pickup trucks as
defined in Section 471, and two-axle daily rental trucks with gross
vehicle weight ratings less than 26,001 pounds when operated in
noncommercial use.
   (e) The "number of commercial motor vehicles operated by the motor
carrier of property" as used in this section means all of the
commercial motor vehicles owned, registered to, or leased by the
carrier.  For interstate and foreign motor carriers of property the
fees set forth in subdivision (a) shall be apportioned based on the
percentage of fleet miles traveled in California in intrastate
commerce.  In the absence of records to establish intrastate fleet
miles, the fees set forth in subdivision (a) shall be apportioned on
total fleet miles traveled in California.
   (f) For purposes of this chapter, "private carrier" means a motor
carrier of property, as defined in subdivision (b), who does not
transport any goods or property for compensation.
   (g) (1) Fees contained in this chapter shall not apply to a motor
carrier of property while engaged solely in interstate or foreign
transportation of property by motor vehicle.  No motor carrier of
property shall engage in any interstate or foreign transportation of
property for compensation by motor vehicle on any public highway in
this state without first having registered the operation with the
Department of Motor Vehicles or with the carrier's base registration
state, if other than California, as determined in accordance with
final regulations issued by the Interstate Commerce Commission
pursuant to the Intermodal Surface Efficiency Act of 1991 (49 U.S.C.
Sec. 11506).  To register with the Department of Motor Vehicles,
carriers specified in this subdivision shall comply with the
following:
   (A) When the operation requires authority from the Interstate
Commerce Commission under the Interstate Commerce Act, or authority
from another federal regulatory agency, a copy of that authority
shall be filed with the initial application for registration.  A copy
of any additions or amendments to the authority shall be filed with
the Department of Motor Vehicles.
   (B) If the operation does not require authority from the
Interstate Commerce Commission under the Interstate Commerce Act, or
authority from another federal regulatory agency, an affidavit of
that exempt status shall be filed with the application for
registration.
   (2) The Department of Motor Vehicles shall grant registration upon
the filing of the application pursuant to applicable law and the
payment of any applicable fees, subject to the carrier's compliance
with this chapter.
   (3) This subdivision does not apply to household goods carriers,
as defined in Section 5109 of the Public Utilities Code, and motor
carriers engaged in the transportation of passengers for
compensation.
  SEC. 97.  Section 34505.6 of the Vehicle Code is amended to read:
   34505.6.  (a) Upon determining that a motor carrier of property
who is operating any vehicle described in subdivision (a), (b), (e),
(f), (g), or (k) of Section 34500, or any motortruck of two or more
axles that is more than 10,000 pounds gross vehicle weight rating, on
a public highway, has done either of the following:  (1) failed to
maintain any vehicle of a type described above in a safe operating
condition or to comply with the Vehicle Code or with regulations
contained in Title 13 of the California Code of Regulations relative
to motor carrier safety, and, in the department's opinion, that
failure presents an imminent danger to public safety or constitutes a
consistent                                          failure so as to
justify a suspension or revocation of the motor carrier's motor
carrier permit or (2) failed to enroll all drivers in the pull notice
system as required by Section 1808.1, the department shall recommend
that the Department of Motor Vehicles suspend or revoke the carrier'
s motor carrier permit.  For interstate operators, the department
shall recommend to the federal Highway Administration Office of Motor
Carriers that appropriate administrative action be taken against the
carrier.  For purposes of this subdivision, two consecutive
unsatisfactory compliance ratings for an inspected terminal assigned
because the motor carrier failed to comply with the periodic report
requirements of Section 1808.1 or the cancellation of the carrier's
enrollment by the Department of Motor Vehicles for nonpayment of
required fees is a consistent failure.  The department shall retain a
record, by operator, of every recommendation made pursuant to this
section.
   (b) Upon determining that a household goods carrier  , or a
household goods carrier transporting used office, store, and
institution furniture and fixtures under its household goods carrier
permit pursuant to Section 5137 of the Public Utilities Code, 
operating any vehicle described in subdivision (a), (b), (e), (f),
(g), or (k) of Section 34500 on a public highway has done either of
the following:  (1) failed to maintain any vehicle used in
transportation for compensation in a safe operating condition or to
comply with the Vehicle Code or with regulations contained in Title
13 of the California Code of Regulations relative to motor carrier
safety, and, in the department's opinion, that failure presents an
imminent danger to public safety or constitutes a consistent failure
so as to justify a suspension, revocation, or denial of the motor
carrier's operating authority or (2) failed to enroll all drivers in
the pull notice system as required by Section 1808.1, the department
shall recommend that the Public Utilities Commission deny, suspend,
or revoke the carrier's operating authority.  For interstate
operators, the department shall recommend to the Federal Highway
Administration Office of Motor Carriers that appropriate
administrative action be taken against the carrier.  For purposes of
this subdivision, two consecutive unsatisfactory compliance ratings
for an inspected terminal assigned because the motor carrier failed
to comply with the periodic report requirements of Section 1808.1 or
the cancellation of the carrier's enrollment by the Department of
Motor Vehicles for the nonpayment of required fees is a consistent
failure.  The department shall retain a record, by operator, of every
recommendation made pursuant to this section.
   (c) Before transmitting a recommendation pursuant to subdivision
(a), the department shall notify the carrier in writing of all of the
following:
   (1) That the department has determined that the carrier's safety
record is unsatisfactory, furnishing a copy of any documentation or
summary of any other evidence supporting the determination.
   (2) That the determination may result in a suspension, revocation,
or denial of the carrier's motor carrier permit by the Department of
Motor Vehicles, suspension, revocation, of the motor carrier's
operating authority by the California Public Utilities Commission, or
administrative action by the federal Highway Administration Office
of Motor Carriers.
   (3) That the carrier may request a review of the determination by
the department within five days of its receipt of the notice required
under this subdivision.  If a review pursuant to this paragraph is
requested by the carrier, the department shall conduct and evaluate
that review prior to transmitting any notification pursuant to
subdivision (a) or (b).
   (d) Upon receipt of a written recommendation from the department
that a motor carrier permit or operating authority be suspended,
revoked, or denied, the Department of Motor Vehicles or Public
Utilities Commission, as appropriate, shall, pending a hearing in the
matter pursuant to Section 34623 or appropriate Public Utilities
Commission authority, suspend the motor carrier permit or operating
authority.  The written recommendation shall specifically indicate
compliance with subdivision (c).
  SEC. 98.  Section 34601 of the Vehicle Code is amended to read:
   34601.  (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include
 a  household goods  carriers   carrier
 , as defined in Section 5109 of the Public Utilities Code,
 a household goods carrier transporting used office, store, and
institution furniture and fixtures under its household goods carrier
permit pursuant to Section 5137 of the Public Utilities Code, 
persons providing only transportation of passengers, or a passenger
stage corporation transporting baggage and express upon a passenger
vehicle incidental to the transportation of passengers.
   (b) As used in this division, "for-hire motor carrier or property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.
   (c) (1) As used in this division, except as provided in paragraph
(2), a commercial motor vehicle is defined as any self-propelled
vehicle listed in subdivisions (a), (b), (f), (g), and (k) of Section
34500, any motor truck of two or more axles that is more than 10,000
pounds gross vehicle weight rating, and any other motor vehicle used
to transport property for compensation.
   (2) "Commercial motor vehicle" does not include vehicles operated
by household goods carriers, as defined in Section 5109 of the Public
Utilities Code  , vehicles operated by a household goods carrier
to transport used office, store, and institution furniture and
fixtures under its household goods carrier permit pursuant to Section
5137 of the Public Utilities Code,  or pickup trucks as defined
in Section 471 and two-axle daily rental trucks with gross vehicle
weight ratings less than 26,001 pounds when operated in noncommercial
use.
   (d) For purposes of this chapter, "private carrier" means a motor
carrier of property, as defined in subdivision (a), who does not
transport any goods or property for compensation.
  SEC. 99.  Section 34622 of the Vehicle Code is amended to read:
   34622.  This chapter does not apply to any of the following:
   (a) Vehicles that are exempt from vehicle registration fees.
   (b)  The transportation of   A household
goods carrier transporting used  office, store, and institution
furniture and fixtures  by a   under its 
household goods carrier  , as defined in  
permit pursuant to  Section  5109   5137
 of the Public Utilities Code.