BILL NUMBER: AB 1658 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 7, 1999
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, 394, 394.1, 394.2, 394.25,
394.3, 394.4, 394.5, 394.8, 396, 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, 5102, 5109, 5112, 5113, 5133, 5135,
5191, 5259.5, 5326, 5328, 5329, 5331, 5371.2, 7531.5, 7711, and
9202 of, to add Sections 224.8, 248, 3950, and 5137 to, and
218.3, 224.8, 248, 426, 3950, 5137, and 5363 to,
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 amend and repeal Section 311 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 amended, 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) 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 relating to electrical restructuring
requires each entity offering electrical service to residential and
small commercial customers, except as specified, to register with the
commission and to comply with certain other provisions relating to
consumer protection.
This bill would instead require each electric service provider, as
defined, to register with the commission and to comply with those
consumer protection provisions. The bill would additionally require
each electric service provider to furnish to the commission
fingerprints for specified persons associated with the electric
service provider, to be checked as prescribed.
(6) 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)
(7) 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)
(8) Existing law permits the commission to exempt certain
common carriers from California antitrust laws.
This bill would repeal that authority.
(8)
(9) 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)
(10) 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)
(11) 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)
(12) 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)
(13) 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)
(14) 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)
(15) Existing law provides regulatory jurisdiction of
household goods carriers , as defined, by the commission
, and defines that term . Existing law
establishes the requirement, and application procedures, for a
household goods carrier permit.
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. The bill would require the commission
to require a household goods carrier permit applicant to submit
fingerprints for specified persons, as a prerequisite to the issuance
of a permit, to be checked as specified.
(15)
(16) Under the Passenger Charter-Party Carriers' Act, the
furnishing of specified passenger transportation services by a
charter-party carrier of passengers, as defined, is subject to the
jurisdiction and control of the commission and is required to be
furnished pursuant to a certificate of public convenience and
necessity or a permit issued by the commission.
This bill would make inapplicable any provision of the Passenger
Charter-Party Carriers' Act or of the Public Utilities Act, relating
to charter bus transportation, as defined, that conflicts with the
federal Transportation Equity Act for the 21st Century, and would
make related changes to existing law.
(17) 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)
(18) 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 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 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.
SEC. 4. Section 218.3 is added to the Public Utilities Code,
to read:
218.3. "Electric service provider" means an entity that offers
electrical service to residential and small commercial customers, but
does not include an electrical corporation, as defined in Section
218, or a public agency that offers electrical service to residential
and small commercial customers within its jurisdiction, or within
the service territory of a local publicly owned electric utility.
"Electric service provider" includes the unregulated affiliates and
subsidiaries of an electrical corporation, as defined in Section 218.
SEC. 4.5. 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
Carrier Division of the commission who are designated by the
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. 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.
SEC. 8.3. Section 311 of the Public Utilities Code, as amended by
Section 2 of Chapter 886 of the Statutes of 1998, is amended to read:
311. (a) The commission, each commissioner, the executive
director, and the assistant executive directors may administer oaths,
certify to all official acts, and issue subpoenas for the attendance
of witnesses and the production of papers, waybills, books,
accounts, documents, and testimony in any inquiry, investigation,
hearing, or proceeding in any part of the state.
(b) The administrative law judges may administer oaths, examine
witnesses, issue subpoenas, and receive evidence, under rules that
the commission adopts.
(c) The evidence in any hearing shall be taken by the commissioner
or the administrative law judge designated for that purpose. The
commissioner or the administrative law judge may receive and exclude
evidence offered in the hearing in accordance with the rules of
practice and procedure of the commission.
(d) Consistent with the procedures contained in Sections 1701.1,
1701.2, 1701.3, and 1701.4, the assigned commissioner or the
administrative law judge shall prepare and file an opinion setting
forth recommendations, findings, and conclusions. The opinion of the
assigned commissioner or the administrative law judge is the
proposed decision and a part of the public record in the proceeding.
The proposed decision of the assigned commissioner or the
administrative law judge shall be filed with the commission and
served upon all parties to the action or proceeding without undue
delay, not later than 90 days after the matter has been submitted for
decision. The commission shall issue its decision not sooner than
30 days following filing and service of the proposed decision by the
assigned commissioner or the administrative law judge, except that
the 30-day period may be reduced or waived by the commission in an
unforeseen emergency situation or upon the stipulation of all parties
to the proceeding or as otherwise provided by law. The commission
may, in issuing its decision, adopt, modify, or set aside the
proposed decision or any part of the decision. Where the
modification is of a decision in an adjudicatory hearing it shall be
based upon the evidence in the record. Every finding, opinion, and
order made in the proposed decision and approved or confirmed by the
commission shall, upon that approval or confirmation, be the finding,
opinion, and order of the commission.
(e) Any item appearing on the commission's public agenda as an
alternate item to a proposed decision or to a decision subject to
subdivision (g) shall be served upon all parties to the proceeding
without undue delay and shall be subject to public review and comment
before it may be voted upon. For purposes of this subdivision
"alternate" means either a substantive revision to a proposed
decision that materially changes the resolution of a contested issue
or any substantive addition to the findings of fact, conclusions of
law, or ordering paragraphs. The commission shall adopt rules that
provide for the time and manner of review and comment and the
rescheduling of the item on a subsequent public agenda, except that
the item may not be rescheduled for consideration sooner than 10 days
following service of the alternative item upon all parties. The
commission's rules may provide that the time and manner of review and
comment on an alternate item may be reduced or waived by the
commission in an unforeseen emergency situation.
(f) The commission may specify that the administrative law judge
assigned to a proceeding involving an electrical, gas, telephone,
railroad, or water corporation, or a highway carrier, initiated by
customer or subscriber complaint need not prepare, file, and serve an
opinion, unless the commission finds that to do so is required in
the public interest in a particular case.
(g) (1) Prior to voting on any commission decision not subject to
subdivision (d), the decision shall be served on parties and subject
to at least 30 days public review and comment. Any alternate to any
commission decision shall be subject to the same requirements as
provided for alternate decisions under subdivision (e). For purposes
of this subdivision, "decision" also includes resolutions, including
resolutions on advice letter filings.
(2) The 30-day period may be reduced or waived in an unforeseen
emergency situation, upon the stipulation of all parties in the
proceeding, for an uncontested matter in which the decision grants
the relief requested, or for an order seeking temporary injunctive
relief.
(3) This subdivision does not apply to advice letter filings or to
uncontested matters, that pertain solely to water corporations, or
to orders instituting investigations or rulemakings, categorization
resolutions under Sections 1701.1 to 1701.4, inclusive, or orders
authorized by law to be considered in executive session. Consistent
with regulatory efficiency and the need for adequate prior notice and
comment on commission decisions, the commission may adopt rules,
after notice and comment, establishing additional categories of
decisions subject to waiver or reduction of the time period in this
section.
(h) Notwithstanding any other provision of law, amendments,
revisions, or modifications by the commission of its Rules of
Practice and Procedure after January 1, 1999, shall be submitted to
the Office of Administrative Law for prior review in accordance with
Sections 11349, 11349.3, 11349.4, 11349.5, 11349.6, and 11350.3 of,
and subdivisions (a) and (b) of Section 11349.1 of, the Government
Code. If the commission adopts an emergency revision to its Rules of
Practice and Procedure based upon a finding that the revision is
necessary for the preservation of the public peace, health and
safety, or general welfare, this emergency revision shall only be
reviewed by the Office of Administrative Law in accordance with
subdivisions (b) to (d), inclusive, of Section 11349.6 of the
Government Code. The emergency revision shall become effective upon
filing with the Secretary of State and shall remain in effect for no
more than 120 days. A petition for writ of review pursuant to
Section 1756 of a commission decision amending, revising, or
modifying its Rules of Practice and Procedure shall not be filed
until the regulation has been approved by the Office of
Administrative Law, the Governor, or a court pursuant to Section
11350.3 of the Government Code. If the period for filing the
petition for writ of review would otherwise have already commenced
under Section 1733 or 1756 at the time of that approval, then the
period for filing the petition for writ of review shall continue
until 30 days after the date of that approval. Nothing in this
subdivision shall require the commission to comply with Article 5
(commencing with Section 11346) of Chapter 3.5 of Part 1 of Division
3 of Title 2 of the Government Code. This subdivision is only
intended to provide for the Office of Administrative Law review of
procedural commission decisions relating to Commission Rules of
Practice and Procedure, and not General Orders, resolutions, or other
substantive regulations.
(i) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.
SEC. 8.5. Section 311 of the Public Utilities Code, as added by
Section 2.5 of Chapter 886 of the Statutes of 1998, is repealed.
311. (a) The commission, each commissioner, the executive
director, and the assistant executive directors may administer oaths,
certify to all official acts, and issue subpoenas for the attendance
of witnesses and the production of papers, waybills, books,
accounts, documents, and testimony in any inquiry, investigation,
hearing, or proceeding in any part of the state.
(b) The administrative law judges may administer oaths, examine
witnesses, issue subpoenas, and receive evidence, under rules that
the commission adopts.
(c) The evidence in any hearing shall be taken by the commissioner
or the administrative law judge designated for that purpose. The
commissioner or the administrative law judge may receive and exclude
evidence offered in the hearing in accordance with the rules of
practice and procedure of the commission.
(d) Consistent with the procedures contained in Sections 1701.1,
1701.2, 1701.3, and 1701.4, the assigned commissioner or the
administrative law judge shall prepare and file an opinion setting
forth recommendations, findings, and conclusions. The opinion of the
assigned commissioner or the administrative law judge is the
proposed decision and a part of the public record in the proceeding.
The proposed decision of the assigned commissioner or the
administrative law judge shall be filed with the commission and
served upon all parties to the action or proceeding without undue
delay, not later than 90 days after the matter has been submitted for
decision. The commission shall issue its decision not sooner than
30 days following filing and service of the proposed decision by the
assigned commissioner or the administrative law judge, except that
the 30-day period may be reduced or waived by the commission in an
unforeseen emergency situation or upon the stipulation of all parties
to the proceeding or as otherwise provided by law. The commission
may, in issuing its decision, adopt, modify, or set aside the
proposed decision or any part of the decision. Where the
modification is of a decision in an adjudicatory hearing it shall be
based upon the evidence in the record. Every finding, opinion, and
order made in the proposed decision and approved or confirmed by the
commission shall, upon that approval or confirmation, be the finding,
opinion, and order of the commission.
(e) Any item appearing on the commission's public agenda as an
alternate item to a proposed decision or to a decision subject to
subdivision (g) shall be served upon all parties to the proceeding
without undue delay and shall be subject to public review and comment
before it may be voted upon. For purposes of this subdivision
"alternate" means either a substantive revision to a proposed
decision that materially changes the resolution of a contested issue
or any substantive addition to findings of fact, conclusions of law,
or ordering paragraphs. The commission shall adopt rules that
provide for the time and manner of review and comment and the
rescheduling of the item on a subsequent public agenda, except that
the item may not be rescheduled for consideration sooner than 10 days
following service of the alternative item upon all parties. The
commission's rules may provide that the time and manner of review and
comment on an alternate item may be reduced or waived by the
commission in an unforeseen emergency situation.
(f) The commission may specify that the administrative law judge
assigned to a proceeding involving an electrical, gas, telephone,
railroad, or water corporation, or a highway carrier, initiated by
customer or subscriber complaint need not prepare, file, and serve an
opinion, unless the commission finds that to do so is required in
the public interest in a particular case.
(g) (1) Prior to voting on any commission decision not subject to
subdivision (d), the decision shall be served on parties and subject
to at least 30 days public review and comment. Any alternate to any
commission decision shall be subject to the same requirements as
provided for alternate decisions under subdivision (e). For purposes
of this subdivision, "decision" also includes resolutions, including
resolutions on advice letter filings.
(2) The 30-day period may be reduced or waived in an unforeseen
emergency situation, upon the stipulation of all parties in the
proceeding, for an uncontested matter in which the decision grants
the relief requested, or for an order seeking temporary injunctive
relief.
(3) This subdivision does not apply to orders instituting
investigations or rulemakings, categorization resolutions under
Sections 1701.1 to 1701.4, inclusive, or orders authorized by law to
be considered in executive session. Consistent with regulatory
efficiency and the need for adequate prior notice and comment on
commission decisions, the commission may adopt rules, after notice
and comment, establishing additional categories of decisions subject
to waiver or reduction of the time period in this section.
(h) Notwithstanding any other provision of law, amendments,
revisions, or modifications by the commission of its Rules of
Practice and Procedure after January 1, 1999, shall be submitted to
the Office of Administrative Law for prior review in accordance with
Sections 11349, 11349.3, 11349.4, 11349.5, 11349.6, and 11350.3 of,
and subdivisions (a) and (b) of Section 11349.1 of, the Government
Code. If the commission adopts an emergency revision to its Rules of
Practice and Procedure based upon a finding that the revision is
necessary for the preservation of the public peace, health and
safety, or general welfare, this emergency revision shall only be
reviewed by the Office of Administrative Law in accordance with
subdivisions (b) to (d), inclusive, of Section 11349.6 of the
Government Code. The emergency revision shall become effective upon
filing with the Secretary of State and shall remain in effect for no
more than 120 days. A petition for writ of review pursuant to
Section 1756 of a commission decision amending, revising, or
modifying its Rules of Practice and Procedure shall not be filed
until the regulation has been approved by the Office of
Administrative Law, the Governor, or a court pursuant to Section
11350.3 of the Government Code. If the period for filing the
petition for writ of review would otherwise have already commenced
under Section 1733 or 1756 at the time of that approval, then the
period for filing the petition for writ of review shall continue
until 30 days after the date of that approval. Nothing in this
subdivision shall require the commission to comply with Article 5
(commencing with Section 11346) of Chapter 3.5 of Part 1 of Division
3 of Title 2 of the Government Code. This subdivision is only
intended to provide for the Office of Administrative Law review of
procedural commission decisions relating to commission Rules of
Practice and Procedure, and not General Orders, resolutions, or other
substantive regulations.
(i) This section shall become operative on January 1, 2001.
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
(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 394 of the Public Utilities Code is amended
to read:
394. (a) Each entity offering electrical service to
residential and small commercial customers shall register with the
commission, unless
it is an electrical corporation as defined in Section 218, or a
public agency offering electrical service to residential and small
commercial customers within its own political jurisdiction, or within
the service territory of a local publicly owned electric utility.
For purposes of this section the term "entity" shall include the
unregulated affiliates and subsidiaries of an electrical corporation,
as defined in Section 218. As used in this section,
"electric service provider" means an entity that offers electrical
service to residential and small commercial customers, but does not
include an electrical corporation, as defined in Section 218, or a
public agency that offers electrical service to residential and small
commercial customers within its jurisdiction, or within the service
territory of a local publicly owned electric utility. "Electric
service provider" includes the unregulated affiliates and
subsidiaries of an electrical corporation, as defined in Section 218.
(b) Each electric service provider shall register with the
commission. As a precondition to registration, the
entity electric service provider shall provide,
under oath, declaration, or affidavit, all of the
following information to the commission:
(1) Legal name and any other names under which the entity
electric service provider is doing business in
California.
(2) Current telephone number.
(3) Current address.
(4) Agent for service of process.
(5) State and date of incorporation, if any.
(6) Number for a customer contact representative, or other
personnel for receiving customer inquiries.
(7) Brief description of the nature of the service being provided.
(8) Disclosure of any civil, criminal, or regulatory sanctions or
penalties imposed within the 10 years immediately prior to
registration, against the company or any owner, partner,
officer , or director of the company pursuant to any state
or federal consumer protection law or regulation, and of any felony
convictions of any kind against the company or any owner,
partner, officer , or director of the company.
In addition, each electric service provider shall furnish the
commission with fingerprints for each owner, partner, officer, and
director of the electric service provider. The commission shall
submit completed fingerprint cards to the Department of Justice.
Those fingerprints shall be available for use by the Department of
Justice and the Department of Justice may transmit the fingerprints
to the Federal Bureau of Investigation for a national criminal
history record check. The commission may use information obtained
from a national criminal history record check conducted pursuant to
this section to determine an electric service provider's eligibility
for registration.
(9) Proof of financial viability. The commission shall develop
uniform standards for determining financial viability and shall
publish those standards for public comment no later than March 31,
1998. In determining the financial viability of the entity
electric service provider , the commission shall
take into account the number of customers the potential registrant
expects to serve, the number of kilowatt hours of electricity it
expects to provide, and any other appropriate criteria in
order to ensure that residential and small commercial
customers have adequate recourse in the event of fraud or
nonperformance.
(10) Proof of technical and operational ability. The commission
shall develop uniform standards for determining technical and
operational capacity and shall publish those standards for public
comment no later than March 31, 1998.
(b) Any registration filing approved by the commission prior to
the effective date of this section which does not comply in all
respects with the requirements of subdivision (a) of Section 394
shall nevertheless continue in force and effect so long as within 90
days of the effective date of this section the registered
entity electric service provider undertakes to
supplement its registration filing to the satisfaction of the
commission. Any registration which that
is not supplemented by the required information within the time
set forth in this subdivision shall be suspended by the commission
and shall not be reinstated until the commission has found the
registration to be in full compliance with subdivision (a) of Section
394.
(c) Any public agency offering aggregation services as provided
for in Section 366 solely to retail electric customers within its
jurisdiction which that has registered
with the commission prior to the enactment of this section
shall have the right to may voluntarily withdraw
its registration to the extent that it is exempted from registration
under the provisions of this chapter.
(d) Before reentering the market, entities
electric service providers whose registration has been revoked
shall file a formal application with the commission which
that satisfies the requirements set forth in
Section 394.1 and demonstrates the entity's
fitness and ability of the electric service provider to
comply with all applicable rules of the commission.
(e) Registration with the commission is an exercise of the
licensing function of the commission, and does not constitute
regulation of the rates or terms and conditions of service offered by
registered entities electric service
providers . Nothing in this part authorizes the commission to
regulate the rates or terms and conditions of service offered by
registered entities electric service
providers .
SEC. 10.1. Section 394.1 of the Public Utilities Code is amended
to read:
394.1. (a) The registration shall be deemed approved and a
registration number issued no later than 45 days after the required
information has been submitted, unless the commission's executive
director finds, upon review of the information submitted by the
entity electric service provider or
available to the commission, that there is evidence to support a
finding that the entity electric service
provider has committed an act constituting grounds for denial
of registration as specifically set forth in the operative provisions
of this chapter, including, but not limited to, subdivision (c).
(b) Upon a finding by the commission's executive director that
there is evidence to support a finding that the entity
electric service provider has committed an act
constituting grounds for denial of registration as set forth in this
section, the commission shall notify the entity in writing, cause the
documents submitted by the entity electric
service provider to be filed as a formal application for
registration, and notice an expedited hearing on the entity'
s registration of the electric service provider
to be held within 30 days of the notification to the entity
electric service provider of the executive
director's finding of evidence to support denial of registration. The
commission shall, within 45 days after holding the hearing, issue a
decision on the registration request which shall be based on the
findings of fact and conclusions of law based on the evidence
presented at the hearing. The decision shall include the findings of
fact and the conclusions of law relied upon.
(c) (1) The commission may deny an application for
registration in accordance with the provisions of
subdivision (b) on the grounds that the entity
electric service provider or any officer or director of
the entity electric service provider
has one or more of the following:
(1)
(A) Been convicted of a crime as described in paragraph (8)
of subdivision (a) of Section 394.
(2)
(B) Failure to make a sufficient showing with respect to
paragraphs (1) to (10), inclusive, of subdivision (a) of Section 394.
(3)
(C) Knowingly made a false statement of fact in the
application for registration.
The
(2) The commission may deny registration pursuant to this
subdivision only if the crime or act is substantially related to the
qualifications, functions, or duties required to provide retail
electric service to end use customers of electricity or the false
statement is material to the registration application. For purposes
of this subdivision, conviction of a crime shall be established in
the same manner as that set forth in paragraph (1) of subdivision (a)
of Section 480 of the Business and Professions Code.
(d) The commission shall require entities
electric service providers registered under this section to
update their registration information set forth in paragraphs (1) to
(10), inclusive, of subdivision (a) of Section 394 within 60 days of
any material change in the information provided. Material changes to
any other information required pursuant to this article shall be
updated annually.
SEC. 10.2. Section 394.2 of the Public Utilities Code is amended
to read:
394.2. (a) The commission shall accept, compile, and attempt to
informally resolve consumer complaints regarding registered
entities electric service providers . Where the
commission reasonably suspects a pattern of customer abuses, the
commission may, on its own motion, initiate investigations into the
activities of entities electric service
providers offering electrical service. Consumer complaints
regarding service by a public agency offering electric service within
the political boundary of the public agency or service territory of
a local publicly owned electric utility shall continue to be resolved
by the public agency. Within the service territory of a local
publicly owned utility, consumer complaints arising from the
violation of direct access rules adopted by the governing body of the
local publicly owned utility shall be resolved through the local
publicly owned utility's consumer complaint procedures.
(b) Notwithstanding other provisions, residential and small
commercial customers shall have the option to proceed with a
complaint against a registered entity an
electric service provider either through an action filed in the
judicial court system or through a complaint filed with the
commission. A customer who elects either the judicial or commission
remedies may not raise the same claim in both forums. The commission
shall have the authority to accept, compile, and resolve
residential, and small commercial consumer complaints, including the
authority to award reparations. The commission's authority in these
complaint proceedings is limited to adjudication of complaints
regarding residential and small commercial electric service provided
by a registered entity an electric service
provider and shall not be expanded to include either an award
of any other damages or regulation of the rates or charges of the
registered entity. However, a person or entity which
electric service provider that takes a conflict
to the commission shall not be precluded from pursuing an appeal of
the decision through the courts as provided for in law.
(c) In connection with customer complaints or commission
investigations into customer abuses, registered entities
electric service providers shall provide the
commission access to their accounts, books, papers, and documents
related to California transactions as described in Sections 313 and
314, provided the information is relevant to the complaint or
investigation.
(d) No registered entity electric service
provider may discontinue service to a customer for a disputed
amount if that customer has filed a complaint that is pending with
the commission, and that customer has paid the disputed amount into
an escrow account.
SEC. 10.3. Section 394.25 of the Public Utilities Code is amended
to read:
394.25. (a) The commission may enforce the provisions of Sections
2102, 2103, 2104, 2105, 2107, 2108, and 2114 against registered
entities electric service providers as
if those entities electric service providers
were public utilities as defined in these code sections.
Notwithstanding the above, nothing in this section shall
grant grants the commission jurisdiction to
regulate registered entities electric service
providers other than as specifically set forth in this part.
Registered entities Electric service
providers shall continue to be subject to the provisions of
Sections 2111 and 2112. Upon a finding by the commission's executive
director that there is evidence to support a finding that the
entity electric service provider has
committed an act constituting grounds for suspension or revocation of
registration as set forth in subdivision (b) of Section 394.25, the
commission shall notify the entity electric
service provider in writing and notice an expedited hearing on
the suspension or revocation of the entity's
electric service provider's registration to be held within 30
days of the notification to the entity
electric service provider of the executive director's finding
of evidence to support suspension or revocation of registration. The
commission shall, within 45 days after holding the hearing, issue a
decision on the suspension or revocation of registration, which shall
be based on findings of fact and conclusions of law based on the
evidence presented at the hearing. The decision shall include the
findings of fact and the conclusions of law relied upon.
(b) A registered entity An electric
service provider may have its registration suspended or
revoked, immediately or prospectively, in whole or in part, for any
of the following acts:
(1) Making material misrepresentations in the course of soliciting
customers, entering into service agreements with those customers, or
administering those service agreements.
(2) Dishonesty, fraud, or deceit with the intent to substantially
benefit the registered entity electric
service provider or its employees, agents, or representatives,
or to disadvantage retail electric customers.
(3) Where the commission finds that there is evidence that the
entity electric service provider is not
financially or operationally capable of providing the offered
electric service.
(c) Pursuant to its authority to revoke or suspend registration,
the commission may suspend a registration for a specified period or
revoke the registration, or in lieu of suspension or revocation,
impose a moratorium on adding or soliciting additional customers.
Any suspension or revocation of a registration shall require the
entity electric service provider to
cease serving customers within the boundaries of investor-owned
electric corporations, and the affected customers shall be served by
the electrical corporation until such time as they may select service
from another service provider. Customers shall not be liable for
the payment of any early termination fees or other penalties to any
entity electric service provider under
the service agreement in the event if
the serving electric service provider's registration is suspended or
revoked.
SEC. 10.4. Section 394.3 of the Public Utilities Code is amended
to read:
394.3. In order to carry out essential elements of a sustainable
and effective consumer protection program in connection with
registered entities electric service providers
offering electrical service to residential and small commercial
customers as intended by the Legislature in this article, the
following shall apply:
(a) A registration fee of one hundred dollars ($100) shall be
collected from entities electric service
providers required to register under this article, and the fee
proceeds shall be deposited in the Public Utilities Reimbursement
Account established under Section 402.
(b) The commission shall annually determine the costs of
administering the registration program and other facets of consumer
protection directly related to the direct access transactions of
registered entities electric service
providers , including the cost for the duties imposed pursuant
to subdivision (c) of Section 392.1. The commission shall only
collect those costs not already being collected elsewhere.
Registrants who fail to submit to the commission required fees or
information upon which fees are calculated within 30 days of billing
shall be subject to a 15-percent penalty.
SEC. 10.5. Section 394.4 of the Public Utilities Code is amended
to read:
394.4. Rules that implement the following minimum standards shall
be adopted by the commission for registered entities
electric service providers offering electrical
services to residential and small commercial customers and the
governing body of a public agency offering electrical services to
residential and small commercial customers within its jurisdiction:
(a) Confidentiality: Customer information shall be confidential
unless the customer consents in writing. This shall encompass
confidentiality of customer specific billing, credit, or usage
information. This requirement shall not extend to disclosure of
generic information regarding the usage, load shape, or other general
characteristics of a group or rate classification, unless the
release of that information would reveal customer specific
information because of the size of the group, rate classification, or
nature of the information.
(b) Physical disconnects and reconnects: Only an electrical
corporation, or a publicly owned electric utility, that provides
physical delivery service to the affected customer shall have the
authority to physically disconnect or reconnect a customer from the
transmission or distribution grid. Physical disconnection by
electrical corporations subject to the commission's jurisdiction
shall occur only in accordance with protocols established by the
commission. Physical disconnection by publicly owned electric
utilities shall occur only in accordance with protocols established
by the governing board of the local publicly owned electric utility.
(c) Change in providers: Upon adequate notice supplied by a
registered entity electric service provider
to the electric corporation or local publicly owned electric
utility providing physical delivery service, customers who are
eligible for direct access may change their energy supplier. Energy
suppliers may charge for such a change, provided that any fee or
penalty charged by the supplier associated with early termination of
service, shall be disclosed in that contract or applicable tariff.
(d) Written notices: Notices describing the terms and conditions
of service as described in Section 394.5, service agreements, notices
of late payment, notices of discontinuance of service, and
disconnection notices addressed to residential and small commercial
customers shall be easily understandable, and shall be provided in
the language in which the entity electric
service provider offered the services.
(e) Billing: All bills shall have a standard bill format, as
determined by the commission or the governing body, and shall contain
sufficient detail for the customer to recalculate the bill for
accuracy. Any late fees shall be separately stated. Each
registered entity electric service provider
shall provide on all customer bills a phone number by which customers
may contact the entity electric service
provider to report and resolve billing inquiries and
complaints. A registered entity An electric
service provider contacted by a customer regarding a billing
dispute shall advise the customer at the time of the initial contact
that the customer may file a complaint with the commission if its
dispute is not satisfactorily resolved by the registered
entity electric service provider .
(f) Meter integrity: An electric customer shall have a reasonable
opportunity to have its meter tested to ensure the reasonable
accuracy of the meter. The commission or governing body shall
determine who is responsible for the cost of that testing.
(g) Customer deposits: Registered entities
Electric service providers may require customer deposits
before commencing service, but in no event shall the deposit be more
than the estimated bill for the customer for a three-month period.
(h) Additional protections: The commission or the governing body
may adopt additional residential and small commercial consumer
protection standards which that are in
the public interest.
SEC. 10.6. Section 394.5 of the Public Utilities Code is amended
to read:
394.5. (a) Except for an electrical corporation as defined in
Section 218, or a local publicly owned electric utility as defined in
subdivision (d) of Section 9604 offering electrical service to
residential and small commercial customers within its service
territory, each entity electric service
provider offering electrical service to residential and small
commercial customers shall, prior to the commencement of service,
provide the potential customer with a written notice of the service
describing the price, terms, and conditions of the service. The
notices shall include all of the following:
(1) A clear description of the price, terms, and conditions of
service, including:
(A) The price of electricity expressed in a format which makes it
possible for residential and small commercial customers to compare
and select among similar products and services on a standard basis.
The commission shall adopt rules to implement this subdivision. The
commission shall require disclosure of the total price of electricity
on a cents-per-kilowatthour basis, including the costs of all
electric services and charges regulated by the commission. The
commission shall also require estimates of the total monthly bill for
the electric service at varying consumption levels, including the
costs of all electric services and charges regulated by the
commission. In determining these rules, the commission may consider
alternatives to the cent-per-kilowatthour disclosure if other
information would provide the customer with sufficient information to
compare among alternatives on a standard basis.
(B) Separate disclosure of all recurring and nonrecurring charges
associated with the sale of electricity.
(C) If services other than electricity are offered, an itemization
of the services and the charge or charges associated with each.
(2) An explanation of the applicability and amount of the
competition transition charge, as determined pursuant to Sections 367
to 376, inclusive.
(3) A description of the potential customer's right to rescind the
contract without fee or penalty as described in Section 395.
(4) An explanation of the customer's financial obligations, as
well as the procedures regarding past due payments, discontinuance of
service, billing disputes, and service complaints.
(5) The entity's electric service provider'
s registration number, if applicable.
(6) The right to change service providers upon written notice,
including disclosure of any fees or penalties assessed by the
supplier for early termination of a contract.
(7) A description of the availability of low-income assistance
programs for qualified customers and how customers can apply for
these programs.
(b) The commission may assist registered entities
electric service providers in developing the
notice. The commission may suggest inclusion of additional
information it deems necessary for the consumer protection purposes
of this section. On at least a semiannual basis, registered
entities electric service providers shall
provide the commission with a copy of the form of notice included in
standard service plans made available to residential and small
commercial customers as described in subdivision (a) of Section
392.1.
(c) Any entity electric service provider
offering electric services who declines to provide those
services to a consumer shall, upon request of the consumer, disclose
to that consumer the reason for the denial in writing within 30 days.
At the time service is denied, the entity
electric service provider shall disclose to the consumer his or
her right to make such a request. Consumers shall have at least 30
days from the date service is denied to make such a request.
SEC. 10.7. Section 394.8 of the Public Utilities Code is amended
to read:
394.8. Notwithstanding any other provision of this article,
requirements placed on a registered entity an
electric service provider shall not apply to electrical
services provided by a local publicly owned electric utility to
customers within the jurisdiction or service territory of that local
publicly owned electric utility.
SEC. 10.8. Section 396 of the Public Utilities Code is amended to
read:
396. (a) A consumer damaged by a violation of this article by an
entity offering electrical service electric
service provider is entitled to recover all of the following:
(1) Actual damages.
(2) The consumer's reasonable attorney's fees and court costs.
(3) Exemplary damages, in the amount the court deems proper, for
intentional or willful violations.
(4) Equitable relief as the court deems proper.
(b) The rights, remedies, and penalties established by this
article are in addition to the rights, remedies, or penalties
established under any other law.
(c) Nothing in this article shall abrogate any authority of the
Attorney General to enforce existing law.
SEC. 10.9. 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 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 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 426 is added to the Public Utilities Code,
to read:
426. The commission shall use all moneys paid into the Public
Utilities Commission Transportation Reimbursement Account by
charter-party carriers in connection with charter bus transportation,
as defined in subdivision (b) of Section 5363, solely for the
following purposes:
(a) Safety regulation.
(b) The administration of financial responsibility requirements.
(c) Commission activities to ensure compliance with safety
regulation and financial responsibility requirements.
(d) Any other regulatory program permitted by Section 14501(a) of
Title 49 of the United States Code.
SEC. 11.5. Section 454 of the Public Utilities Code is
amended to read:
454. (a) Except as provided in 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 establish
a "zone of rate freedom" for any passenger stage transportation
service which is operating in competition with other passenger
transportation service from any means of transportation, if the
competition together with the authorized zone of rate freedom will
result in reasonable rates and charges 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 under its rules of practice and procedure.
SEC. 13. Section 454.5 of the Public Utilities Code is repealed.
SEC. 14. Section 457 of the Public Utilities Code is repealed.
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 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.
SEC. 18. Section 461 of the Public Utilities Code is repealed.
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.
(2) Upon application to the commission company may 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.
(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 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 federal regulation as
nearly as possible to the form of schedules prescribed by the
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. 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 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.
SEC. 26. Section 526 of the Public Utilities Code is repealed.
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 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 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 federal law to
interchange such free transportation with common carriers which are
subject 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:
(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.
(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.
(b) Common carriers may also enter into contracts with telegraph
and telephone corporations for an exchange of service.
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 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 passengers or carriers as to compensation
charged, service rendered, or facilities afforded.
SEC. 30. Section 557 of the Public Utilities Code is repealed.
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 and when they are, in the opinion of the
commission, in violation of federal law, or in conflict with the
rulings, orders, or regulations of the a federal agency, the
commission may apply for relief by petition or otherwise to the
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.
SEC. 34. Section 707 of the Public Utilities Code is repealed.
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.
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, 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. (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 through routes, the commission shall, after hearing,
by supplemental order, establish that division. Where any railroad,
or passenger stage corporation 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, 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 the through route, and the commission may, in its
discretion, allow to that railroad or passenger stage corporation,
more than its local rate, fare, or charge 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 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.
SEC. 41. Section 740.8 of the Public Utilities Code is amended to
read:
740.8. As used in Section 740.3, "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.
SEC. 43. Section 747 of the Public Utilities Code is repealed.
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.
SEC. 46. Section 764 of the Public Utilities Code is repealed.
SEC. 47. Section 765 of the Public Utilities Code is repealed.
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) 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).
(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.
(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.
SEC. 50. Section 769.5 of the Public Utilities Code is repealed.
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 that is a provider of local exchange service
shall issue to each of its residential subscribers, in a manner and
form approved by the commission, a notice containing the following
information:
(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.
(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
network, or is located in the subscriber's inside telephone wiring,
including customer-provided equipment.
(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. 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.
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 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.
SEC. 57. Section 1824 of the Public Utilities Code is repealed.
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 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.
SEC. 61. Section 2881 of the Public Utilities Code is amended to
read:
2881. (a) The commission shall design and implement a program 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 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 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.
(f) The commission may direct any telephone corporation subject to
its jurisdiction to comply with its determinations and
specifications pursuant to this section.
(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.
(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.
(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 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 providers of equipment and
service specified in subdivision (a) to recover costs as they are
incurred under this section pursuant to subdivision (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.
SEC. 64. Section 2882.5 of the Public Utilities Code is repealed.
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.
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 fee of thirty-five dollars ($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 thirty dollars
($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.
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 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) 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 ,
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 household goods carrier industry.
(b) The implementation of statutory policies or other legislative
directives contained in law relating to the 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, 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 one-tenth 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. 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,
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 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 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 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 in conflict
with the provisions of this chapter 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 in any truck or trailer for compensation over any public
highway in this 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, 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 5135 of the Public Utilities Code is amended
to read:
5135. (a) Before a permit is hereafter issued the
commission shall require the applicant to establish ability and
reasonable financial responsibility to initiate the proposed
operations. The commission shall require the applicant to establish
his or her knowledge and ability to engage in business as
a household goods carrier by examination. The examination may be
written or oral, or in the form of a demonstration of skill or any
combination of these, and any investigation of character, experience
and any tests of technical knowledge and manual skill which
that the commission deems are
determines to be appropriate may be employed. In any
examination the qualification of the applicant shall be determined by
an appraisal made by a member of the commission's staff. An
applicant who has been determined to be unqualified may thereafter
establish his or her qualifications through a subsequent
examination; but no subsequent examination shall be taken prior to
three (3) months 30 days from the date
when such applicant was found to be unqualified. When
If the staff member shall determine
determines that the applicant is not qualified,
then the matter shall be set for hearing and the qualification of the
applicant shall be determined by the commission on the basis of
evidence of qualifications presented at such
the hearing, which evidence may include consideration of any
written examination of the applicant. When
If the staff member shall determine
determines that the applicant is qualified, the commission
may issue a permit may issue without hearing
, unless the commission shall consider
determines that a hearing is desirable, in
which event the commission may set the application
may be set for hearing by the commission
.
An
(b) An applicant may qualify in one of the
following ways: (a) if
(1) If an individual, he or she may qualify by
personal examination or by examination of his responsible managing
employee ; (b) if
(2) If a copartnership or corporation, or any other type of
business organization, it may qualify by examination of the
responsible managing officer or member of the personnel
, employee who works at least 32 hours per week, or
partner of such applicant firm. If .
(c) If the individual qualified by examination ceases to be
connected with the permitholder, said the
permitholder shall notify the commission in writing within 30
days after such cessation. If notice is given the permit shall
remain in force a reasonable length of time in order that another
representative of applicant may be qualified before the
Public Utilities Commission commission . If the
permitholder fails to notify the commission of such cessation within
a 30-day period, at the end of that period the permit shall be
automatically suspended.
The
(d) The commission shall require each applicant for a permit to
submit fingerprints for each owner, partner, officer, and director as
a prerequisite to the issuance of a permit to operate as a household
goods carrier. The commission shall submit completed fingerprint
cards to the Department of Justice. Those fingerprints shall be
available for use by the Department of Justice and the Department of
Justice may transmit the fingerprints to the Federal Bureau of
Investigation for a national criminal history record check. The
commission may use any information obtained from the national
criminal history record check conducted pursuant to this section to
determine the applicant's qualification for permit.
(e) The commission may refuse to issue a permit if it
shall be is shown that an applicant or
an officer, director, partner or associate thereof has committed any
act constituting dishonesty or fraud; committed any act which,
committed by a permitholder would be grounds for a suspension or
revocation of the permit; misrepresented any material fact on his
application; or, committed a felony, or crime involving moral
turpitude.
The
(f) The commission shall issue a permit only to those
applicants who it finds have demonstrated that they possess
sufficient knowledge, ability, integrity and financial resources and
responsibility to perform the service within the scope of their
application.
No
(g) A permit shall may not be
issued unless it has been shown that applicant meets one of the
following residence requirements: If an individual, applicant
must shall have resided in the State of
California for not less than 90 days next preceding the filing of the
application. If a partnership, the partner having the largest
percentage interest in the partnership must
shall have resided in the State of California continuously for
not less than 90 days next preceding the filing of the application.
If a corporation, applicant must shall
be a domestic corporation or must shall
have qualified to transact business in the State of California as a
foreign corporation at the time of filing the application.
The
(h) The commission shall prescribe, amend, and repeal rules
in accordance with law for the administration of this section.
SEC. 81.5. 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 used household goods and personal effects and for
accessorial service performed in connection therewith.
(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.
(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.
(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.
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 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 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 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 and on which it pays the license
fee imposed by Section 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 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 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 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 5363 is added to the Public Utilities Code,
to read:
5363. (a) Any provision of the Public Utilities Act (Part 1
(commencing with Section 201) of Division 1) or of this chapter
applicable to charter bus transportation that conflicts with the
federal Transportation Equity Act for the 21st Century (P.L. 105-178)
does not apply to charter bus transportation to the extent of that
conflict. If any provision of the Public Utilities Act or of this
chapter applicable to charter bus transportation, or the application
thereof to any person or circumstance, is invalid as a result of
federal preemption, the remainder of the act, or the application of
the provision to other persons or circumstances, shall not be
affected thereby.
(b) (1) Except as specified in paragraph (2), as used in this
section, "charter bus transportation" means transportation, using a
vehicle designed, used, or maintained for carrying more than 10
persons, including the driver, of a group of persons who, pursuant to
a common purpose, under a single contract, at a fixed charge for the
motor vehicle, have acquired the exclusive use of the motor vehicle
to travel together.
(2) If a federal court or agency with the jurisdiction to construe
Section 14501(a)(1)(C) of Title 49 of the United States Code
determines that additional transportation falls within the meaning of
the term "charter bus transportation," as used in that section, the
federal construction of that term shall prevail.
SEC. 89.2. Section 5371.2 of the Public Utilities Code is amended
to read:
5371.2. (a) All holders of certificates issued under
this section shall operate from a service area to be determined by
the commission. In no case shall this area encompass more
than a radius of 125 air miles from
the home terminal. The home terminal shall be designated by the
applicant. This certificate shall be classified as a class B
certificate. This section shall not apply to certificates subject to
Section 5371.1.
(b) The restriction on a service area imposed by subdivision (a)
does not apply to the holder of a class B certificate if that person
is providing charter bus transportation as defined in subdivision (b)
of Section 5363.
SEC. 89.4. 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 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 Department
of Transportation within 10 days.
SEC. 90. Section 7532 of the Public Utilities Code is repealed.
SEC. 91. Section 7532.5 of the Public Utilities Code is repealed.
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, and shall indicate whether the accidents
occurred at or near sites that the commission, 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.
SEC. 94. Section 7902.5 of the Public Utilities Code is repealed.
SEC. 95. Section 9202 of the Public Utilities Code is amended to
read:
9202. (a) Commencing on or before March 1, 1985, 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 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 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) 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.