BILL NUMBER: SB 177	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 7, 1999
	AMENDED IN SENATE   MARCH 16, 1999

INTRODUCED BY   Senators Peace and Burton

                        JANUARY 12, 1999

   An act to add Section 625 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 177, as amended, Peace.  Public utilities:  eminent domain.
   (1) The Public Utilities Act authorizes certain public utilities
to condemn property, as prescribed.
   This bill would amend the act to prohibit a public utility that
offers competitive services from condemning any property for the
purpose of competing with another entity in the offering of those
competitive services  , unless the Public Utilities Commission
finds that such an action would serve the public interest.  The bill
would authorize the commission to make such a finding if, in the
determination of the commission, either of specified conditions is
met. The bill would require the commission to develop procedures to
facilitate access for affected property owners to eminent domain
proceedings pursuant to those provisions, and to facilitate the
participation of those owners in those proceedings  .  Because a
violation of the act is a crime, this bill would impose a
state-mandated local program by creating a new crime.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  Section 625 is added to the Public Utilities Code, to
read:
   625.   (a)  A public utility that offers competitive
services may not condemn any property for the purpose of competing
with  another entity in the offering of those competitive services
 , unless the commission finds that such an action would serve
the public interest.  The commission may make such a finding if, in
the determination of the commission, either of the following
conditions is met:
   (1) The public utility is providing services as a provider of last
resort that seeks to serve unserved areas.
   (2) The public utility is able to show all of the following with
regard to the proposed condemnation:
   (A) The public interest and necessity require the proposed
project.
   (B) The property to be condemned is necessary for the proposed
project.
   (C) That, if the commission does not permit the acquisition of the
property by eminent domain, the hardship to the public utility will
outweigh any hardship to the owners of the property.
   (D) The proposed project is located in a manner most compatible
with the greatest public good and least private injury.
   (b) The commission shall develop procedures to facilitate access
for affected property owners to eminent domain proceedings pursuant
to this section, and to facilitate the participation of those owners
in those proceedings  .
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.  
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.