BILL NUMBER: SB 177	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MAY 19, 1999
	AMENDED IN SENATE   APRIL 21, 1999
	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 Sections 625 and 626 to, and to repeal and add
Section 616 of, 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 telephone corporation
from condemning any property unless that  telephone
corporation provides   property is necessary to provide
 telecommunications services as a carrier of last resort seeking
to serve currently unserved areas.  The bill would amend the act to
prohibit  a public utility   specified public
utilities  that  offers   offer 
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, pursuant to a
petition or complaint filed by the public utility  and
  ,  an adjudication hearing in accordance with
specified provisions of the act governing hearings and judicial
review,  and a local public hearing, as prescribed,  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.   The
bill would prohibit a public utility from entering into any exclusive
access agreement with the owner or lessor of, or a person
controlling or managing, a property or premises served by the public
utility, or from committing or permitting any other act that would
limit the right of any other public utility to provide service to a
tenant or other occupant of the property or premises.  The
bill would specify matters relating to certain existing provisions of
the Code of Civil Procedure governing eminent domain proceedings.
 The bill would prohibit a public utility from entering into any
exclusive access agreement with the owner or lessor of, or a person
controlling or managing, a property or premises served by the public
utility, or from committing or permitting any other act, that would
limit the right of any other public utility to provide service to a
tenant or other occupant of the property or premises.   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 616 of the Public Utilities Code is repealed.

  SEC. 2.  Section 616 is added to the Public Utilities Code, to
read:
   616.  A telephone corporation may not condemn any 
property unless that telephone corporation provides
telecommunications services as a carrier of last resort seeking to
serve currently unserved areas.   property unless that
property is necessary for that telephone corporation to provide
telecommunications services as a carrier of last resort seeking to
serve unserved areas. 
  SEC. 3.  Section 625 is added to the Public Utilities Code, to
read:  
   625.  (a) For the purpose of this article, a public  

   625.  (a) (1) For the purpose of this article, except as specified
in paragraph (4), 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, pursuant to a petition or complaint
filed by the public utility  and   ,  an
adjudication hearing in accordance with Chapter 9 (commencing with
Section 1701) of this part , and a local public hearing in
accordance with paragraph (2)  , that such an action would serve
the  public interest.  The commission may make such a
finding   public interest.
   (2) Before making a finding pursuant to this subdivision, the
commission shall conduct a public hearing in the local area that
would be affected by the proposed condemnation within __ days of the
date that the petition or complaint is filed.  The commission shall
notify the local governmental entity and provide public notice of the
hearing pursuant to both the procedures of the commission and of the
local governmental entity.
   (3) The commission shall render a decision on making a finding in
accordance with this subdivision within __ days of the date of the
local public hearing.
   (4) This subdivision does not apply to a railroad corporation or a
water corporation.
   (b) The commission may make a finding pursuant to subdivision (a)
 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.  
   (1) The proposed condemnation is necessary to provide service as a
provider of last resort to an unserved area. 
   (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)  
   (c) A public utility may not condemn property and subsequently use
that property for any purpose other than a public utility purpose,
or sell that property, unless that property has been used by the
public utility for a public utility purpose for 50 years from the
date of condemnation.
   (d)  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.  
   (c)  
   (e)  Nothing in this section relieves a public utility from
complying with Section 1240.030 of the Code of Civil Procedure or any
other requirement imposed by law.  
   (d)  
   (f)  A public utility that does not comply with this section
may not exercise the power of eminent domain, including, but not
limited to, any authority provided by Title 7 (commencing with
Section 1230.010) of Part 3 of the Code of Civil Procedure.  

   (e)  
   (g)  The authority provided in this section supplements, and
does not replace or otherwise affect any other limitation in law on
the exercise of the power of eminent domain, including, but not
limited to, any authority provided by Title 7 (commencing with
Section 1230.010) of Part 3 of the Code of Civil Procedure.
  SEC. 4.  Section 626 is added to the Public Utilities Code, to
read:
   626.  On or after January 1, 2000, a public utility may not enter
into any exclusive access agreement with the owner or lessor of, or a
person controlling or managing, a property or premises served by the
public utility, or commit or permit any other act, that would limit
the right of any other public utility to provide service to a tenant
or other occupant of the property or premises.
  SEC. 5.  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.