BILL ANALYSIS
Appropriations Committee Fiscal Summary
SB 1973 (Perata)
Hearing Date: 5/25/00 Amended: 5/9/00
As
proposed to be amended
Consultant: Bob Franzoia Policy Vote: E, U&C 6-4
A&W 7-1
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BILL SUMMARY: SB 1973 would require the Public Utilities
Commission (PUC) by 12/31/01, to establish guidelines on
the meaning of "fair compensation" for the conveyance of
water. The bill would authorize the PUC to adjudicate
complaints filed by water transferors of unfair
compensation set by public water agencies.
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02 2002-03
Fund
Develop guidelines $200 Special*
(contract) $250 one time
Petition review $360 $480; costs
may diminish in future years
* Public Utilities Commission Utilities Reimbursement Account
STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
The bill authorizes the PUC to adjudicate the complaint and
determine whether the agency's determination of fair
compensation is consistent with the commission's
guidelines. If the PUC finds that the amount of fair
compensation is not consistent with commission guidelines,
the bill requires the commission to remand the case back to
the agency for a redetermination, unless the commission
determines that the public interest would be impaired by a
delay. In that case, the PUC would be authorized to
determine the amount of fair compensation.
The PUC estimates that once the guidelines are established
25 to 1,000 petitions for review of fair compensation will
be filed annually for the first two or three years. Since
the Administrative Law Judge (ALJ) Division would handle
these petitions, costs would be high. The PUC estimates
the need for two ALJs and two support staff. Any number of
factors could reduce the anticipated workload and thus, the
cost.
The PUC estimates the need for additional staff to advise
the commissioners and staff on technical water issues,
conduct workshops, participate in settlement/stipulation
meetings, and testify at public hearings. A one-time
contract for a consultant to help in the determination of
costing methods used by water agencies would be needed.
As proposed to be amended, the bill would (1) clarify that
the state, regional, and local public agencies are subject
to the PUC's jurisdiction for purposes of these
determinations of fair compensation, (2) require that such
agencies must provide the commission with all requested
information necessary to make a determination of fair
compensation, and (3) add conservation to Water Code
Section 1811 (c) relating to fair compensation.