BILL NUMBER: SB 1630	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Maldonado

                        FEBRUARY 24, 2006

   An act to add Section 857 to the Public Utilities Code, relating
to water corporations, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1630, as introduced, Maldonado  Water corporations: sale: right
of first refusal.
   Existing law authorizes any municipal corporation to acquire,
construct, own, operate, or lease any public utility, as defined. The
existing Municipal Utility District Act authorizes any public
agency, as defined, together with unincorporated territory, or 2 or
more public agencies, to organize and incorporate as a municipal
utility district to provide inhabitants of the district with light,
water, power, heat, transportation, telephone service, garbage,
sewage and other specified utility works and service. The existing
Public Utility District Act authorizes the formation of public
utility districts and authorizes a district to acquire, construct,
own, operate, or control works for supplying its inhabitants with
light, water, power, heat, transportation, telephone service, or
other means of communication, or means for the disposition of
garbage, sewage, or refuse matter. The Municipal Water District Law
of 1911 authorizes the formation of a municipal water district.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including water corporations, as
defined. The existing Public Utilities Act requires a public utility
to obtain commission approval prior to selling, leasing, assigning,
mortgaging, or otherwise disposing of or encumbering any property, in
whole or in part, necessary or useful in the performance of its
duties to the public. The act additionally prohibits any person or
corporation from acquiring or controlling, directly or indirectly,
any public utility organized and doing business in this state,
without first securing authorization to do so from the commission.
   This bill would provide that a municipal corporation, municipal
utility district, public utility district, or municipal water
district organized to provide utility service in the County of
Monterey has a right of first refusal to acquire any water
corporation providing water service in the county, in any sale,
lease, assignment, or other disposition requiring approval by the
commission. The bill would require the commission to ensure that
reasonable notice is provided to the public in the county and to any
municipal corporation, municipal utility district, public utility
district, or municipal water district organized to provide utility
service in the county that requests notice, of a pending request to
approve the sale, lease, assignment, or other disposition of a water
corporation providing service in the county, prior to the commission'
s approval. The bill would provide that because of unique
circumstances applicable to water service in the County of Monterey,
a statute of general applicability cannot be enacted.
   The bill would declare that it is to take effect immediately as an
urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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


  SECTION 1.  Section 857 is added to the Public Utilities Code, to
read:
   857.  An entity organized to provide utility service in the County
of Monterey pursuant to Division 5 (commencing with Section 10001),
Division 6 (commencing with Section 11501), or Division 7 (commencing
with Section 15501), or organized pursuant to the Municipal Water
District Law of 1911 (Div. 20 (commencing with Sec. 71000), Wat.
C.), shall have a right of first refusal to acquire any water
corporation providing water service in the County of Monterey, in any
sale, lease, assignment, or other disposition required to be
approved by the commission pursuant to this article. The commission
shall ensure that reasonable notice is provided to the public in the
County of Monterey and to any entity requesting notice claiming to
have a right of first refusal pursuant to this section, of a pending
request to approve the sale, lease, assignment, or other disposition
of a water corporation providing service in Monterey County, prior to
the commission's approval pursuant to this article.
  SEC. 2.  The Legislature finds and declares that, because of unique
circumstances applicable to water service in the County of Monterey,
a statute of general applicability cannot be enacted within the
meaning of subdivision (b) of Section 16 of Article IV of the
California Constitution. Therefore, this special statue is necessary.

  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   Because of the impending sale of a water corporation in the County
of Monterey that would be subject to the right of first refusal
established by this act, it is necessary that this act take effect
immediately.