BILL NUMBER: SB 177	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   JULY 8, 1999
	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 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 specified public utilities that 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, an adjudication hearing in
accordance with specified provisions of the act governing hearings
and judicial review, and a  local public hearing
 in the local jurisdiction that would be affected by the proposed
condemnation  , 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 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 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) (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 , 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.
   (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.   commission finds that such an
action would serve the public interest, pursuant to a petition or
complaint filed by the public utility and an adjudication hearing in
accordance with Chapter 9 (commencing with Section 1701), including
an opportunity for the public to participate.
   (2) (A) Before making a finding pursuant to this subdivision, the
commission shall conduct the hearing in the local jurisdiction that
would be affected by the proposed condemnation.  The hearing shall
commence within 45 days of the date that the petition or complaint is
filed, unless there is a need for discovery or the respondent
requests an extension.  The commission shall provide public notice of
the hearing pursuant to the procedures of the commission and shall
also notify the local jurisdiction.  In addition, the commission
shall provide the local jurisdiction with copies of the notice of
hearing in time for the local jurisdiction to mail that notice at
least seven days in advance of the hearing to all persons who have
requested copies of the local jurisdiction's agenda or agenda packet
pursuant to Section 54954.1 of the Government Code.
   (B) For purposes of subparagraph (A), "local jurisdiction" means
each city within whose boundaries property sought to be taken by
eminent domain is located, and if property sought to be taken is not
located within city boundaries, each county within whose boundaries
that property is located. However, where there is more than one local
jurisdiction with respect to a single complaint or petition, the
commission shall provide notice and copies of notices for mailing to
all local jurisdictions involved, but shall hold only a single
hearing in any one of those local jurisdictions.
   (3) (A) The assigned commissioner or administrative law judge
shall render a decision on making a finding in accordance with this
subdivision within 45 days of the conclusion of the hearing, unless
further briefing is ordered, in which event this period may be
extended by up to 30 additional days to allow for briefing.
   (B) If the rendering of a decision pursuant to this subdivision
requires review under the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code), then the time limits contained in subparagraph (A) of
paragraph (2) and subparagraph (A) of paragraph (3) shall be extended
as needed to accommodate that review. 
   (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 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.
   (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.
   (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.
   (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.
   (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.