BILL NUMBER: SB 96	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Peace

                        DECEMBER 8, 1998

   An act to add Sections 344 and 354 to, and to repeal Section 340
of, the Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 96, as introduced, Peace.  Electrical restructuring:
Independent System Operator:  Power Exchange.
   Existing law requires the Oversight Board to take the steps that
are necessary to ensure the earliest possible incorporation of the
Independent System Operator and the Power Exchange as separately
incorporated public benefit, nonprofit corporations under the
Corporations Code.
   This bill would repeal that provision and, instead, create the
Independent System Operator and the Power Exchange as state agencies,
with powers as prescribed.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  Section 340 of the Public Utilities Code is repealed.

   340.  The Oversight Board shall take the steps that are necessary
to ensure the earliest possible incorporation of the Independent
System Operator and the Power Exchange as separately incorporated
public benefit, nonprofit corporations under the Corporations Code.

  SEC. 2.  Section 344 is added immediately following the article
heading of Article 3 (commencing with Section 345) of Chapter 2.3 of
Division 1 of the Public Utilities Code, to read:
   344.  (a) The Independent System Operator is a state agency.  The
Independent System Operator has perpetual succession and it may sue
and be sued.  The Independent System Operator, to carry into effect
and promote its objectives, may do all of the following:
   (1) Make contracts.
   (2) Borrow money, contract debts, issue bonds, notes, and
debentures, and secure the payment of performance of its obligations.

   (3) Own, hold, use, manage, and deal in and with real and personal
property.
   (4) Construct, alter, maintain, and repair buildings and other
improvements to real property.
   (5) Purchase, lease, obtain options upon, or acquire by gift,
bequest, devise or otherwise, any real or personal property or any
interest therein.
   (6) Sell, lease, exchange, convey, transfer, assign, encumber,
pledge, or dispose of any of its real or personal property or any
interest therein, including without limitation all or any portion of
its income or revenues from membership fees paid or payable by
members.
   (7) Do all other acts incidental to the foregoing or necessary or
expedient for the administration of its affairs and the attainment of
its purposes.
   (b) Pursuant to those powers enumerated in paragraphs (1) to (7),
inclusive, of subdivision (a), the Independent System Operator may
raise revenue by any lawful means.
   (c) No law of this state restricting, or prescribing a mode of
procedure for the exercise of powers of state public bodies or state
agencies, or classes thereof, including, but not limited to, Division
3 (commencing with Section 11000), Division 4 (commencing with
Section 16100), and Part 1 (commencing with Section 18000) and Part 2
(commencing with Section 18500) of Division 5, of Title 2 of the
Government Code, is applicable to the Independent System Operator.
  SEC. 3.  Section 344 is added immediately following the article
heading of Article 4 (commencing with Section 355) of Chapter 2.3 of
Division 1 of the Public Utilities Code, to read:
   344.  (a) The Power Exchange is a state agency.  The Power
Exchange has perpetual succession and it may sue and be sued.  The
Power Exchange, to carry into effect and promote its objectives, may
do all of the following:
   (1) Make contracts.
   (2) Borrow money, contract debts, issue bonds, notes, and
debentures, and secure the payment of performance of its obligations.

   (3) Own, hold, use, manage, and deal in and with real and personal
property.
   (4) Construct, alter, maintain, and repair buildings and other
improvements to real property.
   (5) Purchase, lease, obtain options upon, or acquire by gift,
bequest, devise or otherwise, any real or personal property or any
interest therein.
   (6) Sell, lease, exchange, convey, transfer, assign, encumber,
pledge, or dispose of any of its real or personal property or any
interest therein, including without limitation all or any portion of
its income or revenues from membership fees paid or payable by
members.
   (7) Do all other acts incidental to the foregoing or necessary or
expedient for the administration of its affairs and the attainment of
its purposes.
   (b) Pursuant to those powers enumerated in paragraphs (1) to (7),
inclusive, of subdivision (a), the Power Exchange may raise revenue
by any lawful means.
   (c) No law of this state restricting, or prescribing a mode of
procedure for the exercise of powers of state public bodies or state
agencies, or classes thereof, including, but not limited to, Division
3 (commencing with Section 11000), Division 4 (commencing with
Section 16100), and Part 1 (commencing with Section 18000) and Part 2
(commencing with Section 18500) of Division 5, of Title 2 of the
Government Code, is applicable to the Power Exchange.