BILL NUMBER: SB 1939	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN SENATE   MAY 18, 2000
	AMENDED IN SENATE   MAY 15, 2000
	AMENDED IN SENATE   MAY 3, 2000
	AMENDED IN SENATE   APRIL 13, 2000
	AMENDED IN SENATE   APRIL 5, 2000
	AMENDED IN SENATE   MARCH 28, 2000

INTRODUCED BY   Senators Alarcon, Hughes, Murray, Polanco, and Solis

                        FEBRUARY 24, 2000

   An act to amend Section 385 of  , and to add Section 9607 to,
 the Public Utilities Code, and to amend Section 21100 of, and
to add Section 21100.7 to, the Water Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1939, as amended, Alarcon.  Public utilities:  electric power:
irrigation districts.
   (1) Existing law requires each local publicly owned utility to
establish a nonbypassable usage based charge to fund investments in
specified public purpose programs, including providing services for
low-income electricity customers.  The charge is required to be not
less than the lowest expenditure of the 3 largest electrical
corporations in California based on a percentage of revenue.
   This bill would require a  specified percentage of charge
revenues to be invested in   local publicly owned
electric utility that has not implemented  programs servicing
low-income electricity customers  to perform a needs assessment,
and establish low-income services, as prescribed .  Because a
violation of this provision would be a crime, this bill would impose
a state-mandated local program by creating a new crime.
   (2) The Irrigation District Law generally requires a member of the
board of directors of an irrigation district to be a voter and a
freeholder of the district and a resident of the division that the
director represents at the time of nomination or appointment and
during the director's entire term.   That law authorizes an
irrigation district that is governed under that law to sell, dispose
of, and distribute electric power for use outside its boundaries.

   This bill would remove that requirement that a director be a
freeholder of the district, and would make a related change.  The
bill would also provide that the board of directors of an irrigation
district may adopt a resolution that authorizes a resident and
nonresident person holding title to real property within the
district, or his or her legal representative to vote.  The bill would
also provide that any eligible voter, as defined, may be a member of
the board of directors.  The bill would provide that those
provisions regarding titleholders are operation as long as the
district does not provide certain services for domestic purposes and
would require the district to notify the Secretary of State 30 days
prior to commencing to provide any of those services.   
   The bill would require the Public Utilities Commission to certify
a district to sell electricity in the service territory of specified
entities, as prescribed.  Because this bill would increase the duties
of local entities by requiring them to obtain commission
certification in order to sell electricity, it would impose a
state-mandated local program. 
  (3)  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.    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,
including the creation of a State Mandates Claims Fund to pay the
costs of mandates that do not exceed $1,000,000 statewide and other
procedures for claims whose statewide costs exceed $1,000,000.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above. 
   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 385 of the Public Utilities Code is amended to
read:
   385.  (a) Each local publicly owned electric utility shall
establish a nonbypassable, usage based charge on local distribution
service of not less than the lowest expenditure level of the three
largest electrical corporations in California on a percent of revenue
basis, calculated from each utility's total revenue requirement for
the year ended December 31, 1994, and each utility's total annual
expenditure under paragraphs (1), (2), and (3) of subdivision (c) of
Section 381 and Section 382, to fund investments by the utility and
other parties  in the low-income programs described in
subdivision (b), and  in any or all of the following:
   (1) Cost-effective demand-side management services to promote
energy efficiency and energy conservation.
   (2) New investment in renewable energy resources and technologies
consistent with existing statutes and regulations which promote those
resources and technologies.
   (3) Research, development and demonstration programs for the
public interest to advance science or technology which is not
adequately provided by competitive and regulated markets. 
   (4) Services provided for low-income electricity customers,
including, but not limited to, energy efficiency services, education,
weatherization, and rate discounts. 
   (b) Each local publicly owned electric utility  shall
establish and fund programs servicing low-income electricity
customers comparable to those established under Section 382.  Those
programs shall include, but are not limited to, targeted energy
efficiency services, outreach and education, and rate discounts.  The
percentage of the charge established under subdivision (a) allocated
to low-income programs shall be based on an assessment of customer
need, with a rate discount of no less than 15 percent offered to
those who qualify.  Unless a local publicly owned electric utility is
providing a rate discount of 15 percent or more for low-income
customers on or before January 1, 2001, that local publicly owned
electric utility shall conduct a needs assessment on or before
December 31, 2001.
  SEC. 2.    that has not implemented programs for
low-income electricity customers including targeted energy efficiency
services and rate discounts based upon the income level of the
customer, or completed an assessment of need for those programs, on
or before December 31, 2000, shall perform a needs assessment for the
programs described in paragraph (4) of subdivision (a) and shall
hold one or more public meetings, after notice, to review the
findings of the needs assessment.  Following the public meetings, the
governing body of the local publicly owned electric utility shall
determine the amount of the total funds collected pursuant to this
section to be allocated to low-income programs, including, but not
limited to, targeted energy efficiency services, education,
weatherization, and rate discounts.  In making its decision on the
need for the programs, the governing body shall consider all of the
following:
   (1) The number and income level of low-income customers that
reside in the service area of the utility.
   (2) The number and income level of low-income residents in the
utility's service area.
   (3) The availability of home weatherization services to low-income
customers pursuant to Section 2790.
   (4) The availability of in-home energy efficiency education in the
utility's service area.
   (5) Other factors that may indicate a need for low-income
services.
   (c) If the local publicly owned utility determines pursuant to
paragraph (2) of subdivision (b) that low-income customers reside in
the utility's service area, rate discounts shall be established for
those customers living below 125 percent of the federal poverty
level.  The governing body shall determine the percentage of rate
discount.
   (d) Following a determination pursuant to subdivision (b) that
low-income services are needed, the local publicly owned utility
shall promptly implement or expand those programs.  The local
publicly owned electric utility shall work with existing
weatherization providers to implement energy efficiency, education,
and weatherization programs.
   (e) In addition to complying with subdivisions (b) to (d),
inclusive, an irrigation district that is a local publicly owned
electric utility collecting funds under subdivision (a) shall do both
of the following:
   (1) Allocate not less than 10 percent of its public benefit
surcharge revenue to non-rate assistance low-income energy programs,
including, but not limited to, low-income weatherization programs,
energy efficiency programs, education, and outreach.  Irrigation
districts shall work with existing weatherization providers to ensure
efforts are implemented.
   (2) If the irrigation district has insufficient low-income
customers to fully utilize the benefits offered under these programs,
the irrigation district shall provide the programs, or supplement
energy efficiency work, to qualifying low-income residents located in
or adjacent to the area in which the irrigation district is
providing electric service.
  SEC. 2.  Section 9607 is added to the Public Utilities Code, to
read:
   9607.  (a) Notwithstanding Section 9604, for purposes of this
section, "district" means an irrigation district furnishing electric
services formed pursuant to the Irrigation District Law as set forth
in Division 11 (commencing with Section 20500) of the Water Code.
   (b) Notwithstanding any other provision of law, a district may, to
the extent consistent with subdivision (b) of Section 9605,
construct, lease, acquire, or operate facilities for the purpose of
serving retail electric customers located in the service territory of
an electrical corporation providing electric distribution services
as that territory existed on January 1, 2000, or in the service
territory of a local publicly owned electric utility providing
electric distribution services as of January 1, 2000, if the district
has obtained certification, as described in subdivision (c), that
its public purpose, universal service, and consumer protection
programs are at a minimum comparable to those of the current
distribution service providers.
   (c) The district shall request certification from the commission
to serve retail customers located in the service territory of an
electrical corporation and from the local regulatory body of the
local publicly owned electric utility's service territory before it
expands its service to retail customers located in the service
territory of an electrical corporation. The commission, upon notice
and with opportunity to be heard as provided in Article 1 (commencing
with Section 1701) of Chapter 9 of Part 1, shall issue a decision or
resolution certifying the district's programs, if it determines all
of the following:
   (1) The district has established and funded public purpose and
low-income programs in accordance with Section 385.
   (2) The district will provide universal service to all retail
customers who request service within reasonable physical proximity to
the district's distribution or transmission wires and poles allowing
for line extensions and service, at published tariff rates and on a
just, reasonable, and nondiscriminatory basis, comparable to that
provided by the current distribution service provider.
   (3) The district will provide consumer protection and direct
transaction provisions comparable to those established for the
current distribution service provider and the district has
established environmental policies to foster environmental justice
and minimize or eliminate the duplication of electric transmission or
distribution facilities and other economic waste.
  SEC. 3.   Section 21100 of the Water Code is amended to read:

   21100.  Each director, except as otherwise provided in this
division, shall be a voter of the district and a resident of the
division that he or she represents at the time of his or her
nomination or appointment and during his or her entire term, except
in the case of a director elected at a formation election, he or she
shall be a resident in the proposed district at the time of his or
her nomination and a resident of the division that he or she
represents during his or her entire term.   
  SEC. 3.   
  SEC. 4.   Section 21100.7 is added to the Water Code, to read:

   21100.7.  (a) Notwithstanding Section 21100 or any other provision
of law, the board of directors of an irrigation district may adopt a
resolution that authorizes a person holding title to real property
within the district, or his or her legal representative, to vote, in
addition to other authorized voters.  Holders of title need not be
residents of the district in order to qualify as voters.  Each
eligible voter shall be entitled to cast only one vote.
   (b) The last equalized county assessment roll is conclusive
evidence of ownership of the real property.
   (c) Notwithstanding Section 21100, any eligible voter, as
specified in this section, may be a member of a district's board of
directors.
   (d) As used in this section, "eligible voter" means a person who
meets the requirements of Section 20527 or a person who is a holder
of title to real property within the district.
   (e) (1) This section shall be operative as long as the district
does not provide water, drainage services, electricity, flood control
services, or sewage disposal services for domestic purposes for
residents of the district, excepting for incidental domestic water
provided.
   (2) (A) This section shall become inoperative if the district
commences to provide any of the services described in paragraph (1).

   (B) Each district shall notify the Secretary of State 30 days
prior to commencing to provide any of the services described in
paragraph (1).  The notice required by this subparagraph shall state
that it is being made pursuant to this section.  
  SEC. 4.  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.  

  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs  that may be incurred by a local agency or school district
because in that regard 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.
   However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.