Public Utilities Code — Part 32 | PUC — United States — California law | Esheria

Public Utilities Code

Part 32 of 38 · provisions 6,201–6,400

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This part is named the Santa Clara Valley Transportation Authority Act and may be cited by that name. The Legislature states that the Santa Clara Valley Transportation Authority needs broader transportation measures to address traffic congestion and improve roads, highways, and other transportation facilities. The provision says a transit district needs to be established in Santa Clara County. The Santa Clara County Transit District is renamed the Santa Clara Valley Transportation Authority, and existing references to the old name are treated as references to the new name. A municipal corporation that provides broadband Internet access services must comply with the requirements of a specified Government Code article.

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Provisions of Public Utilities Code

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  1. 8386.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    Electrical corporations must run their lines and equipment to reduce catastrophic wildfire risk and submit wildfire mitigation plans on the required schedule.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386. (a) Each electrical corporation shall construct, maintain, and operate its electrical lines and equipment in a manner that will minimize the risk of catastrophic wildfire posed by those electrical lines and equipment, taking into account both the time required to implement the proposed mitigation and the amount of risk reduced for the cost and risk remaining. (b) Each electrical corporation shall submit a wildfire mitigation plan to the office for review at least once every four years. The office shall establish a schedule for the submission of subsequent comprehensive wildfire mitigation plans, which may allow for the staggering of evaluation and performance periods for each electrical corporation. (c) (1) Beginning January 1, 2027, each electrical corporation shall submit a preliminary wildfire mitigation plan to the office at the earliest date of one year before the filing of its general rate case application or concurrent with the filing of its Risk Assessment Mitigation Phase application with the commission. The wildfire mitigation plan shall cover the same period as the general rate case period. (2) Paragraph (1) does not apply to independent transmission owners. (d) The wildfire mitigation plan shall include all of the following: (1) An accounting of the responsibilities of persons responsible for executing the plan. (2) The objectives of the plan. (3) A description of the preventive strategies and programs to be adopted by the electrical corporation to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks. (4) A description of the metrics the electrical corporation plans to use to measure and track the implementation of the plan and the assumptions that underlie the use of those metrics. (5) A discussion of how the application of previously identified metrics to previous plan performances has informed the plan. (6) A description of the electrical corporation’s protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety. As part of these protocols, each electrical corporation shall include protocols related to mitigating the public safety impacts of disabling reclosers and deenergizing portions of the electrical distribution system that consider the impacts on all of the following: (A) Critical first responders. (B) Health and communication infrastructure. (C) Customers who receive medical baseline allowances pursuant to subdivision (c) of Section 739. The electrical corporation may deploy backup electrical resources or provide financial assistance for backup electrical resources to a customer receiving a medical baseline allowance for a customer who meets all of the following requirements: (i) The customer relies on life-support equipment that operates on electricity to sustain life. (ii) The customer demonstrates financial need, including through enrollment in the California Alternate Rates for Energy program continued pursuant to Section 739.1. (iii) The customer is not eligible for backup electrical resources provided through medical services, medical insurance, or community resources. (D) Subparagraph (C) does not prevent an electrical corporation from deploying backup electrical resources or providing financial assistance for backup electrical resources under any other authority. (7) A description of the electrical corporation’s appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines, including procedures for those customers receiving medical baseline allowances as described in paragraph (6). The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event. The procedures shall comply with any orders of the commission regarding notifications of deenergization events. (8) Identification of circuits that have frequently been deenergized pursuant to a deenergization event to mitigate the risk of wildfire and the measures taken, or planned to be taken, by the electrical corporation to reduce the need for, and impact of, future deenergization of those circuits, including, but not limited to, the estimated annual decline in circuit deenergization and deenergization impact on customers, and replacing, hardening, or undergrounding any portion of the circuit or of upstream transmission or distribution lines. (9) Plans for vegetation management. (10) Plans for inspections of the electrical corporation’s electrical infrastructure. (11) A description of the electrical corporation’s protocols for the deenergization of the electrical corporation’s transmission infrastructure, for instances when the deenergization may impact customers who, or entities that, are dependent upon the infrastructure. The protocols shall comply with any order of the commission regarding deenergization events. (12) A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the electrical corporation’s service territory, including all relevant wildfire risk and risk mitigation information that is required by the commission’s risk-based decisionmaking framework established in commission Application 15-05-002 or Rulemaking 20-07-013, or subsequent safety model assessment proceedings, and the Risk Assessment Mitigation Phase filings. The list shall include, but not be limited to, all of the following: (A) Risks and risk drivers associated with design, construction, operations, and maintenance of the electrical corporation’s equipment and facilities. (B) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the electrical corporation’s service territory. (C) Particular risks and risk drivers associated with the speed with which wildfire risk mitigation measures can and will be deployed by an electrical corporation within its service territory. (D) An estimate of cost-per-avoided ignition for each risk, or an explanation on why such a value could not be assigned to a particular risk. (13) A description of how the plan accounts for the wildfire risk identified in the electrical corporation’s Risk Assessment Mitigation Phase filing, if applicable. (14) A description of the actions the electrical corporation will take to ensure its system will achieve the highest level of safety, reliability, and resiliency, taking into account the cost and time required to achieve those benefits, and to ensure that its system is prepared for a major event, including hardening and modernizing its infrastructure with improved engineering, system design, standards, equipment, and facilities, such as undergrounding, insulating of distribution wires, and replacing poles. The electrical corporation shall present the cost-efficiency measures adopted by the commission, calculated consistently with the direction provided by the commission’s most recent risk-based decisionmaking framework proceeding, for at least two reasonable mitigation alternatives for a given identified wildfire risk. (15) A description of where and how the electrical corporation considered undergrounding electrical distribution lines within those areas of its service territory identified to have the highest wildfire risk in a commission fire threat map. (16) A showing that the electrical corporation has an adequately sized and trained workforce to promptly restore service after a major event, taking into account employees of other utilities pursuant to mutual aid agreements and employees of entities that have entered into contracts with the electrical corporation. (17) Identification of any geographic area in the electrical corporation’s service territory that is a higher wildfire threat than is currently identified in a commission fire threat map, and where the commission should consider expanding the high fire threat district based on new information or changes in the environment. (18) A methodology for identifying and presenting enterprisewide safety risk and wildfire-related risk that is consistent with the methodology used by other electrical corporations unless the commission determines otherwise. (19) A description of how the plan is consistent with the electrical corporation’s disaster and emergency preparedness plan prepared pursuant to Section 768.6, including both of the following: (A) Plans to prepare for, and to restore service after, a wildfire, including workforce mobilization and prepositioning equipment and employees. (B) Plans for community outreach and public awareness before, during, and after a wildfire, including language notification in English, Spanish, and the top three primary languages used in the state other than English or Spanish, as determined by the commission based on the United States Census data. (20) A statement of how the electrical corporation will restore service after a wildfire. (21) Protocols for compliance with requirements adopted by the commission regarding activities to support customers during and after a wildfire, outage reporting, support for low-income customers, billing adjustments, deposit waivers, extended payment plans, suspension of disconnection and nonpayment fees, repair processing and timing, access to electrical corporation representatives, and emergency communications. (22) A description of the processes and procedures the electrical corporation will use to do all of the following: (A) Monitor and audit the implementation of the plan. (B) Identify any deficiencies in the plan or the plan’s implementation and correct those deficiencies. (C) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, carried out under the plan and other applicable statutes and commission rules. (23) Any other information that the office may require. (e) The office shall post all wildfire mitigation plans submitted pursuant to this section on the office’s internet website beginning July 1, 2021, for no less than two months before the office’s decision regarding approval of the plan. The office shall accept comments on each plan from the public, other local and state agencies, and interested parties, and verify that the plan complies with all applicable rules, regulations, and standards, as appropriate. (Amended by Stats. 2025, Ch. 119, Sec. 53. (SB 254) Effective September 19, 2025.)
  2. 8386.1.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The commission may assess penalties against an electrical corporation that fails to comply with its plan.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.1. The commission may assess penalties on an electrical corporation that fails to comply with its plan. In determining an appropriate amount of the penalty, the commission shall consider all of the following: (a) The nature and severity of any noncompliance, including whether the noncompliance resulted in harm. (b) The extent to which the commission has found that the electrical corporation failed to comply with its plans in prior years. (c) Whether the electrical corporation self-reported the circumstances constituting noncompliance. (d) Whether the electrical corporation implemented corrective actions with respect to the noncompliance. (e) Whether the electrical corporation knew or in the exercise of reasonable care should have known of the circumstances constituting noncompliance. (f) Whether the electrical corporation had previously engaged in conduct of a similar nature that caused significant property damage or injury. (g) Any other factors established by the commission in an order assessing penalties for noncompliance, consistent with this chapter. (Amended by Stats. 2025, Ch. 119, Sec. 54. (SB 254) Effective September 19, 2025.)
  3. 8386.10.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The commission must not let a large electrical corporation count certain wildfire-mitigation costs in its equity rate base, but those costs may be financed through a financing order.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.10. (a) The commission shall not allow a large electrical corporation to include in its equity rate base its share, as determined pursuant to the Wildfire Fund allocation metric specified in Section 3280, of the six billion dollars ($6,000,000,000) that the large electrical corporations collectively first expend on fire risk mitigation capital expenditures approved by the commission on or after January 1, 2026. These amounts are in addition to the amounts the large electrical corporations shall not include in their equity rate base pursuant to subdivision (e) of Section 8386.3. An electrical corporation’s share of the fire risk mitigation capital expenditures and the debt financing costs of these fire risk mitigation capital expenditures may be financed through a financing order pursuant to Section 850.1, subject to the requirements of that financing order. (b) Subdivision (a) does not apply to an expenditure made after December 31, 2035. (Added by Stats. 2025, Ch. 119, Sec. 59. (SB 254) Effective September 19, 2025.)
  4. 8386.2.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The commission must require and schedule safety culture assessments of electrical corporations, and the office must conduct wildfire-focused assessments every two years. Electrical corporations may not seek reimbursement for assessment costs from ratepayers.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.2. (a) The commission shall require a safety culture assessment of each electrical corporation to be conducted by an independent third-party evaluator. The commission shall set the schedule for each assessment, including updates to the assessment at least every five years. The electrical corporation shall not seek reimbursement for the costs of the assessment from ratepayers. (b) The office shall conduct a wildfire-focused safety culture assessment of each electrical corporation at least once every two years. (Amended by Stats. 2025, Ch. 119, Sec. 55. (SB 254) Effective September 19, 2025.)
  5. 8386.3.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The office must review wildfire mitigation plans on time, and electrical corporations must file reports, use approved evaluators, reimburse costs, and keep wildfire mitigation revenues inside the approved plan.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.3. (a) (1) (A) The office shall approve or deny each wildfire mitigation plan within nine months of its submission. (B) Notwithstanding subparagraph (A), for an electrical corporation that is not an independent transmission owner, the wildfire mitigation plan is subject to approval pursuant to Section 8386.4. (2) The office shall consult with the Office of the State Fire Marshal on the review of each wildfire mitigation plan and update. In rendering its decision, the office shall consider comments submitted pursuant to subdivision(e) of Section 8386. Before approval, the office may require modifications of the plan. (3) The office may extend any deadlines established pursuant to this subdivision. The decision to extend deadlines shall be made in writing and include reasons supporting the determination that the deadline cannot be met. (4) An approval of a plan pursuant to this section is not a project as defined in Division 13 (commencing with Section 21000) of the Public Resources Code, provided that environmental review otherwise required by Division 13 (commencing with Section 21000) of the Public Resources Code occurs before any project approval that would authorize physical changes being made to the environment. (b) Following approval of a wildfire mitigation plan pursuant to subdivision (a) of this section or Section 8386.4, the office shall oversee the implementation of the plan consistent with all of the following: (1) On or before April 1, 2026, and on or before each April 1 thereafter, each electrical corporation shall file with the office a self-evaluation report addressing the electrical corporation’s implementation of its approved plan during the prior calendar year. (2) (A) On or before March 1, 2021, and on or before each March 1 thereafter, the office, in consultation with the Office of the State Fire Marshal, shall make available a list of qualified independent evaluators with experience in assessing the safe operation of electrical infrastructure. (B) (i) Each electrical corporation shall engage an independent evaluator listed pursuant to subparagraph (A) to review and assess the electrical corporation’s implementation of its approved plan. The engaged independent evaluator shall consult with, and operate under the direction of, the office. The independent evaluator shall issue a report on or before July 1 of each year in which a report required by paragraph (1) is filed. (ii) The office shall consider the independent evaluator’s findings, but the independent evaluator’s findings are not binding on the office. (3) The commission shall authorize the electrical corporation to recover in rates the costs of the independent evaluator. (4) The office shall complete its performance review of an electrical corporation’s implementation of its plan within 18 months after the submission of the electrical corporation’s self-evaluation report. (5) (A) Following the end of the performance period, the office may, consistent with its authority pursuant to paragraph (1) of subdivision(b) of Section 15475 of the Government Code, conduct audits of the vegetation management work performed by, or on behalf of, the electrical corporation. The initial audit shall identify deficiencies in the electrical corporation’s implementation of the vegetation management commitments in the wildfire mitigation plan. The office shall provide the initial audit report to the electrical corporation. The electrical corporation shall have a reasonable time, as determined by the office, to respond to and develop corrective actions for any deficiency specified in the initial audit report. (B) The office may engage its own independent auditor who shall be a certified arborist and shall have any other qualifications determined appropriate by the office, to conduct the audit specified in subparagraph (A). The independent auditor shall consult with, and operate under the direction of, the office. (C) Following the expiration of the time period for an electrical corporation to respond to and develop corrective actions for any deficiency identified in the initial audit, the office or the independent auditor shall issue an updated audit report to the electrical corporation identifying any outstanding deficiency in the electrical corporation’s implementation or planned corrective actions relative to its vegetation management commitments in the electrical corporation’s wildfire mitigation plan. The report shall be made publicly available. The office shall include, if available, the report in its performance review prepared pursuant to paragraph (4). (6) Each electrical corporation shall reimburse the office for the office’s costs to implement this section with respect to that electrical corporation. (c) (1) An electrical corporation shall not divert revenues authorized by the commission to implement the approved wildfire mitigation plan to any programs or activities outside of the plan approved pursuant to Section 8386.4. An electrical corporation shall notify the commission by advice letter of both of the following: (A) The date when the electrical corporation projects that it will have spent, or incurred obligations to spend, its entire annual revenue requirement for vegetation management in its wildfire mitigation plan not less than 30 days before that date. (B) A detailed summary of the electrical corporation’s workforce development efforts completed in compliance with the Office of Federal Contract Compliance Programs, including, but not limited to, all of the following: (i) A description of and data on the extent to which the electrical corporation advertises job openings to members of California Conservation Corps crews and members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code. (ii) A description of and data on the extent to which the electrical corporation, in seeking to develop potential members of its workforce, has links to or otherwise works with community-based or other organizations that work with current members of California Conservation Corps crews and current members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code, and formerly incarcerated conservation crew members. (iii) A description of the extent to which the electrical corporation supports skill-development efforts that would assist current and former members of California Conservation Corps crews, members of community conservation corps, as defined in Section 14507.5 of the Public Resources Code, formerly incarcerated conservation crew members, and others with similar skillsets in acquiring skills needed to complete work on or near electrical facilities. This clause does not alter the requirements imposed on an employer pursuant to Section 12952 of the Government Code. (2) An electrical corporation shall provide to the office a copy of the advice letter pursuant to paragraph (1) at the same time the advice letter is submitted to the commission. (d) This section does not impose any liability on the office regarding the performance of its duties. (e) The commission shall not allow a large electrical corporation to include in its equity rate base its share, as determined pursuant to the Wildfire Fund allocation metric specified in Section 3280, of the first five billion dollars ($5,000,000,000) expended in aggregate by large electrical corporations on fire risk mitigation capital expenditures included in the electrical corporations’ approved wildfire mitigation plans. An electrical corporation’s share of the fire risk mitigation capital expenditures and the debt financing costs of these fire risk mitigation capital expenditures may be financed through a financing order pursuant to Section 850.1 subject to the requirements of that financing order. (Amended by Stats. 2025, Ch. 119, Sec. 56. (SB 254) Effective September 19, 2025.)
  6. 8386.4.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    This section requires electrical corporations and regulators to file, review, certify, and approve wildfire mitigation plans and related costs in general rate cases.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.4. (a) (1) The commission shall consider the cost of implementing each electrical corporation’s plan in its general rate case proceeding and shall approve the costs for wildfire risk mitigation programs and activities it determines are just and reasonable. (2) In the commission’s discretion, each electrical corporation may establish a memorandum account to track costs incurred for wildfire risk mitigation that are unforeseen and incremental to the wildfire risk mitigation programs and activities authorized in the electrical corporation’s revenue requirements. The commission shall review the costs in the memorandum accounts and disallow recovery of those costs the commission deems unreasonable. (3) The chief executive officer of an electrical corporation shall certify in each general rate case application that the electrical corporation has not received authorization from the commission to recover the costs in a previous proceeding, including wildfire cost recovery applications. (b) For a general rate case application filed after January 1, 2027, all of the following apply: (1) The electrical corporation shall file its preliminary wildfire mitigation plan approved pursuant to subdivision (a) of Section 8386.3, or, if no plan has been approved by the office, the wildfire mitigation plan filed pursuant to subdivision (c) of Section 8386, and any applicable decision from the office, with the general rate case application and shall include testimony establishing the forecast of costs necessary to implement the programs and activities in the plan. (2) The commission shall consult with the office regarding the programs and activities in the plan in rendering its decision pursuant to paragraph (1) of subdivision (a). The commission’s decision shall constitute approval of the revenue requirement necessary to implement the electrical corporation’s wildfire mitigation plan. (3) Within 45 days of the commission’s decision rendered pursuant to paragraph (1) of subdivision (a) or any commission order modifying that decision, the electrical corporation shall submit a revised wildfire mitigation plan to the office that conforms to the commission’s revenue authorization. The office shall review and either approve or request modifications to the revised wildfire mitigation plan submitted in accordance with the revenue authorized pursuant to paragraph (1) of subdivision (a). The office shall approve the revised wildfire mitigation plan within two months of submission. After approval by the office, the electrical corporation shall file the approved revised wildfire mitigation plan as an information-only submittal with the commission. (c) Nothing in this section shall be interpreted as a restriction or limitation on Article 1 (commencing with Section 451) of Chapter 3 of Part 1 of Division 1. (Amended by Stats. 2025, Ch. 119, Sec. 57. (SB 254) Effective September 19, 2025.)
  7. 8386.5.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The commission, the office, and the Department of Forestry and Fire Protection must enter into an MOU and share fire-prevention related data.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.5. The commission, the office, and the Department of Forestry and Fire Protection shall enter into a memorandum of understanding to cooperatively develop consistent approaches and share data related to fire prevention, safety, vegetation management, and energy distribution systems. The commission, the office, and the department shall share results from various fire prevention activities, including relevant inspections and fire ignition data. (Amended by Stats. 2025, Ch. 119, Sec. 58. (SB 254) Effective September 19, 2025.)
  8. 8386.6.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    Tree trimmers working to meet wildfire-mitigation vegetation-management requirements must be qualified (or trainees under direct supervision), and qualified line clearance tree trimmers must be paid at least the prevailing wage for a first-period apprentice electrical utility lineman.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8386.6. (a) All electrical line clearance tree trimmers performing work to comply with the vegetation management requirements in an electrical corporation’s wildfire mitigation plan shall be qualified line clearance tree trimmers, or trainees under the direct supervision and instruction of qualified line clearance tree trimmers, as provided in the High-Voltage Electrical Safety Orders (Group 2 (commencing with Section 2700) of Subchapter 5 of Chapter 4 of Division 1 of Title 8 of the California Code of Regulations) of the Department of Industrial Relations. (b) All qualified line clearance tree trimmers shall be paid no less than the prevailing wage rate for a first period apprentice electrical utility lineman as determined by the Director of Industrial Relations. (Added by Stats. 2019, Ch. 406, Sec. 2. (SB 247) Effective January 1, 2020.)
  9. 8387.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    Local publicly owned electric utilities and electrical cooperatives must operate electrical lines and equipment to minimize wildfire risk, prepare wildfire mitigation plans, submit them on a recurring schedule after January 1, 2026, and follow public review and independent evaluation requirements.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8387. (a) Each local publicly owned electric utility and electrical cooperative shall construct, maintain, and operate its electrical lines and equipment in a manner that will minimize the risk of wildfire posed by those electrical lines and equipment. (b) (1) The local publicly owned electric utility or electrical cooperative shall, before January 1, 2020, prepare a wildfire mitigation plan. After January 1, 2026, a local publicly owned electric utility or electrical cooperative shall prepare a wildfire mitigation plan and shall submit the plan to the California Wildfire Safety Advisory Board at least once every four years on a schedule determined by the California Wildfire Safety Advisory Board. (2) The wildfire mitigation plan shall consider as necessary, at minimum, all of the following: (A) An accounting of the responsibilities of persons responsible for executing the plan. (B) The objectives of the wildfire mitigation plan. (C) A description of the preventive strategies and programs to be adopted by the local publicly owned electric utility or electrical cooperative to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks. (D) A description of the metrics the local publicly owned electric utility or electrical cooperative plans to use to measure and track the implementation of the plan and the assumptions that underlie the use of those metrics. (E) A discussion of how the application of previously identified metrics to previous wildfire mitigation plan performances has informed the wildfire mitigation plan. (F) Protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety, and protocols related to mitigating the public safety impacts of those protocols, including impacts on critical first responders and on health and communication infrastructure. (G) Appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines. The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event. (H) Plans for vegetation management. (I) Plans for inspections of the local publicly owned electric utility’s or electrical cooperative’s electrical infrastructure. (J) A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the local publicly owned electric utility’s or electrical cooperative’s service territory. The list shall include, but not be limited to, both of the following: (i) Risks and risk drivers associated with design, construction, operation, and maintenance of the local publicly owned electric utility’s or electrical cooperative’s equipment and facilities. (ii) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the local publicly owned electric utility’s or electrical cooperative’s service territory. (K) Identification of any geographic area in the local publicly owned electric utility’s or electrical cooperative’s service territory that is a higher wildfire threat than is identified in a commission fire threat map, and identification of where the commission should expand a high fire-threat district based on new information or changes to the environment. (L) A methodology for identifying and presenting enterprisewide safety risk and wildfire-related risk. (M) A statement of how the local publicly owned electric utility or electrical cooperative will restore service after a wildfire. (N) A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following: (i) Monitor and audit the implementation of the wildfire mitigation plan. (ii) Identify any deficiencies in the wildfire mitigation plan or its implementation, and correct those deficiencies. (iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, that are carried out under the plan, other applicable statutes, or commission rules. (3) In each year it is required to submit a plan, the local publicly owned electric utility or electrical cooperative shall present its wildfire mitigation plan in an appropriately noticed public meeting. The local publicly owned electric utility or electrical cooperative shall accept comments on its wildfire mitigation plan from the public, other local and state agencies, and interested parties, and shall verify that the wildfire mitigation plan complies with all applicable rules, regulations, and standards, as appropriate. (c) The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its wildfire mitigation plan. The independent evaluator shall issue a report that shall be made available on the internet website of the local publicly owned electric utility or electrical cooperative, and shall present the report at a public meeting of the local publicly owned electric utility’s or electrical cooperative’s governing board. (Amended by Stats. 2025, Ch. 119, Sec. 60. (SB 254) Effective September 19, 2025.)
  10. 8388.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    Certain electric utilities and aggregators with biomass power contracts expiring by December 31, 2028 must try to extend those contracts so the new expiration date is at least five years later, subject to listed nonattainment-area exceptions.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8388. (a) An electrical corporation, local publicly owned electric utility, or community choice aggregator with a contract to procure electricity generated from biomass pursuant to Section 399.20.3, commission Resolution E-4770 (March 17, 2016), or commission Resolution E-4805 (October 13, 2016), that expires on or before December 31, 2028, shall seek to amend the contract to include, or seek approval for a new contract that includes, an expiration date at least five years later than the expiration date in the contract that was operative in 2022 if the contract extension follows the feedstock requirement of subdivision (b) of Section 399.20.3. (b) (1) Except as provided in paragraph (2), subdivision (a) does not apply to a facility located in a federal severe or extreme nonattainment area for particulate matter or ozone. (2) Notwithstanding paragraph (1), subdivision (a) applies to a facility in an area that voluntarily opts for severe or extreme nonattainment status but the air district has determined that the continued operation of the facility does not impede the air district’s ability to meet its applicable attainment deadline. (3) A contract between an electrical corporation, local publicly owned electric utility, or community choice aggregator and a biomass generator that is located in the Sacramento federal ozone nonattainment area shall not be extended unless the biomass generator first obtains a letter or certificate from the air district with jurisdiction over the biomass generator that states that the Sacramento federal ozone nonattainment area voluntarily opted to be classified in one or more federal standards in a severe or extreme nonattainment zone and that the continued operation of the facility does not impede the air district’s ability to meet its applicable requirements. (Amended by Stats. 2024, Ch. 575, Sec. 2. (AB 2750) Effective January 1, 2025.)
  11. 8388.5.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The commission must create an expedited undergrounding program, and large electrical corporations that want to join must submit a detailed undergrounding plan to the office.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8388.5. (a) The commission shall establish an expedited utility distribution infrastructure undergrounding program consistent with this section. (b) Only a large electrical corporation may participate in the program. (c) In order to participate in the program, a large electrical corporation shall submit to the office a distribution infrastructure undergrounding plan that shall address or include, at minimum, all of the following components: (1) A 10-year plan for undergrounding distribution infrastructure. (2) Identification of the undergrounding projects that will be constructed as part of the program, including a means of prioritizing undergrounding projects based on wildfire risk reduction, public safety, cost efficiency, and reliability benefits. Only undergrounding projects located in tier 2 or 3 high fire-threat districts or rebuild areas may be considered and constructed as part of the program. (3) Timelines for the completion of identified and prioritized undergrounding projects, and unit cost targets and mileage completion targets for each year covered by the plan. (4) A comparison of undergrounding versus aboveground hardening of electrical infrastructure and wildfire mitigation for achieving comparable risk reduction, or any other alternative mitigation strategy, such as covered conductor and rapid earth fault current limiter devices, for those prioritized undergrounding projects, evaluating the scope, cost, extent, and risk reduction of each activity, separately and collectively, over the duration of the plan. The comparison shall emphasize risk reduction and include an analysis of the cost of each activity for reducing wildfire risk, separately and collectively, over the duration of the plan. (5) A plan for utility and contractor workforce development. (6) An evaluation of project costs, projected economic benefits over the life of the assets, and any cost containment assumptions, including the economies of scale necessary to reduce wildfire risk and mitigation costs and establish a sustainable supply chain. (d) Upon a large electrical corporation submitting a plan to the office, the office shall do both of the following: (1) Publish the plan for public comment. (2) Within nine months, review and approve or deny the plan. The office may only approve the plan if the large electrical corporation has shown that the plan will substantially increase electrical reliability by reducing the use of public safety power shut off, enhanced powerline safety settings, deenergization events, and any other outage programs, and substantially reduce the risk of wildfire. Before approving the plan, the office may require the large electrical corporation to modify the plan or to modify and resubmit the plan. (e) (1) Upon the office approving a plan pursuant to paragraph (2) of subdivision (d), the large electrical corporation shall, within 60 days, submit to the commission a copy of the plan and an application requesting review and conditional approval of the plan’s costs and including all of the following: (A) Any substantial improvements in safety risk and reduction in costs compared to other hardening and risk mitigation measures over the duration of the plan. (B) The cost targets, at a minimum, that result in feasible and attainable cost reductions as compared to the large electrical corporation’s historical undergrounding costs. (C) How the cost targets are expected to decline over time due to cost efficiencies and economies of scale. (D) A strategy for achieving cost reductions over time. (2) The assigned commissioner may waive the requirements of subdivisions (b), (d), (f), and (i) of Section 1701.3 for an application submitted to the commission pursuant to paragraph (1). (3) In reviewing an application submitted to the commission pursuant to paragraph (1), the commission shall consider not revisiting cost or mileage completion targets approved, or pending approval, in the electrical corporation’s general rate case or a commission-approved balancing account ratemaking mechanism for system hardening. (4) Upon the commission receiving an application pursuant to paragraph (1), the commission shall facilitate a public workshop for presentation of the plan and take public comment for at least 30 days. (5) On or before nine months, the commission shall review and approve or deny the application. Before approving the application, the commission may require the large electrical corporation to modify or modify and resubmit the application. (6) The commission shall consider continuing an existing commission-approved balancing account ratemaking mechanism for system hardening for the duration of a plan, as determined by the commission, and shall authorize recovery of recorded costs that are determined to be just and reasonable. (f) If the plan is approved by the office and commission, the large electrical corporation shall do all of the following: (1) Every six months, file a progress report with the office and the commission. The large electrical corporation and the office shall publish these progress reports on their internet websites. (2) Include ongoing work plans and progress in wildfire mitigation plan filings. (3) Hire an independent monitor, selected by the office, to review and assess the large electrical corporation’s adherence to its plan and submit a report with the office each December 1 over the course of the plan. (g) (1) In reviewing and assessing the large electrical corporation’s adherence to its plan pursuant to paragraph (3) of subdivision (f), the independent monitor shall assess whether the large electrical corporation’s progress on undergrounding work has been consistent with the objectives identified in its plan. The independent monitor’s report shall specify any failure, delays, or shortcomings of the large electrical corporation and provide recommendations for improvements to accomplish the objectives set forth in the plan. (2) The large electrical corporation shall have 180 days to correct and eliminate any deficiency specified in the independent monitor’s report. (3) On or before December 1 of each year the plan is in effect, the independent monitor shall submit the report to the office. (h) The office shall publish reports received pursuant to paragraph (3) of subdivision (g) on its internet website. (i) (1) The office shall consider the independent monitor’s report and whether the large electrical corporation has cured any deficiencies, and may provide an assessment to the commission for consideration. (2) The commission may assess penalties on a large electrical corporation that fails to comply with a commission decision approving its plan. (j) Each large electrical corporation participating in the program shall apply for available federal, state, and other nonratepayer moneys throughout the duration of its approved undergrounding plan, and any moneys received as a result of those applications shall be used to reduce the program’s costs on the large electrical corporation’s ratepayers. (k) An approval of a plan pursuant to this section is not a project as defined in Division 13 (commencing with Section 21000) of the Public Resources Code, provided that environmental review otherwise required by Division 13 (commencing with Section 21000) of the Public Resources Code occurs before any project approval that would authorize physical changes being made to the environment. (Amended by Stats. 2025, Ch. 119, Sec. 61. (SB 254) Effective September 19, 2025.)
  12. 8389.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. )

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    The office must issue a certificate to an electrical corporation that documents the listed wildfire-safety requirements, and the corporation must make quarterly filings and requests to keep the certificate current.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 6. Wildfire Mitigation [8385 - 8389] ( Chapter 6 added by Stats. 2016, Ch. 598, Sec. 1. ) ## 8389. (a) The Director of the Office of Energy Infrastructure Safety shall issue a certificate to an electrical corporation if the electrical corporation provides documentation of the following: (1) The electrical corporation has an approved wildfire mitigation plan pursuant to subdivision (a) of Section 8386.3. (2) The electrical corporation has agreed to implement the recommendations of its most recent safety culture assessments performed pursuant to Section 8386.2, if applicable. (3) The electrical corporation has established a safety committee of its board of directors composed of members with relevant safety experience. (4) The electrical corporation has established an executive incentive compensation structure approved by the office and structured to promote safety as a priority and to ensure public safety and utility financial stability with performance metrics, including incentive compensation based on meeting performance metrics that are measurable and enforceable, for all executive officers, as defined in Section 451.5. This may include tying 100 percent of incentive compensation to safety performance and denying all incentive compensation in the event the electrical corporation causes a catastrophic wildfire that results in one or more fatalities. (5) The electrical corporation has established board-of-director-level reporting to the commission and office on safety issues. (6) (A) The electrical corporation has established a compensation structure for any new or amended contracts, plans, or arrangements, whether written or unwritten, for executive officers, as defined in Section 451.5, that is based on the following principles: (i) (I) Strict limits on guaranteed cash compensation, with the primary portion of the executive officers’ compensation based on achievement of objective performance metrics. (II) No guaranteed monetary incentives in the compensation structure. (ii) It satisfies the compensation principles identified in paragraph (4). (iii) A long-term structure that provides a significant portion of compensation, which may take the form of grants of the electrical corporation’s stock, based on the electrical corporation’s long-term performance and value. This compensation shall be held or deferred for a period of at least three years. (iv) Minimization or elimination of indirect or ancillary compensation that is not aligned with shareholder and taxpayer interest in the electrical corporation. (B) The office shall approve the compensation structure of an electrical corporation if it determines the structure meets the principles set forth in subparagraph (A) and paragraph (4). (C) It is the intent of the Legislature, in enacting this paragraph and paragraph (4), that any approved bankruptcy reorganization plan of an electrical corporation should, in regards to compensation for executive officers of the electrical corporation, comply with the requirements of those paragraphs. (7) The electrical corporation is implementing the mitigation strategies in its approved wildfire mitigation plan. The electrical corporation shall file a notification of implementation of its wildfire mitigation plan with the office and an information-only submittal with the commission on a quarterly basis that details the implementation of both its approved wildfire mitigation plan and recommendations of the most recent safety culture assessments by the commission and office, and a statement of the recommendations of the board of directors safety committee meetings that occurred during the quarter. The notification and information-only submittal shall also summarize the implementation of the safety committee recommendations from the electrical corporation’s previous notification and submission. If the office has reason to doubt the veracity of the statements contained in the notification or information-only submittal, it shall perform an audit of the issue of concern. The electrical corporation shall provide a copy of the information-only submittal to the office. (b) (1) A certificate shall be valid for the 12 consecutive months following the issuance of the certificate. (2) (A) Before the expiration of a certificate, an electrical corporation shall submit to the office a request for a certificate for the following 12 months. The office shall issue a certificate within 90 days of a request if the electrical corporation has provided documentation that it has satisfied the requirements in subdivision (a). (B) The office may, for good cause, in writing, extend the 90-day period. (3) All documents submitted pursuant to this section shall be publicly available on the commission’s and the office’s internet websites. (4) (A) Notwithstanding paragraph (1), a certificate shall remain valid until the office acts on the electrical corporation’s pending request for a certificate. (B) The office may extend the expiration date of a certificate if the office or the commission has not yet acted on an element of the certificate request required pursuant to subdivision (a). (Amended by Stats. 2025, Ch. 119, Sec. 62. (SB 254) Effective September 19, 2025.)
  13. 8390.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 7. Designated Water System Administration [8390- 8390.] ( Chapter 7 added by Stats. 2019, Ch. 120, Sec. 10. )

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    A privately owned public utility may serve as an administrator for purposes of Health and Safety Code Section 116686.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 7. Designated Water System Administration [8390- 8390.] ( Chapter 7 added by Stats. 2019, Ch. 120, Sec. 10. ) ## 8390. A privately owned public utility may serve as an administrator for purposes of Section 116686 of the Health and Safety Code. (Added by Stats. 2019, Ch. 120, Sec. 10. (SB 200) Effective July 24, 2019.)
  14. 840.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    This section defines key terms for transition-cost financing and gives the bank power to authorize another entity to issue rate reduction bonds if specified conditions are met.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 840. For the purposes of this article, the following terms shall have the following meanings: (a) “Bank” means the California Infrastructure and Economic Development Bank. (b) “Financing entity” means the bank, any special purpose trust, as defined in Section 63010 of the Government Code, that is authorized by the bank to issue rate reduction bonds or acquire transition property, or any other entity authorized by the bank to issue rate reduction bonds or acquire transition property, or both. The bank may authorize an entity other than a special purpose trust, as defined in Section 63010 of the Government Code, to issue rate reduction bonds only if all of the following conditions are met: (1) The bank by resolution has determined that allowing another entity to issue rate reduction bonds would produce greater overall ratepayer savings, taking into account all relevant considerations including, but not limited to, the exclusion of interest on rate reduction bonds issued by the bank from investors’ gross income for California or federal income tax purposes, or both, earnings on funds collected and held by the electrical corporation prior to deposit in a fund or account for the benefit of holders of rate reduction bonds, and all costs of issuance and other transaction costs. (2) The bank submits to the Joint Legislative Budget Committee a certified copy of the bank’s resolution, together with a report setting forth the basis for the bank’s determination that a financing entity other than the bank or a special purpose trust will produce greater ratepayer savings and at least 30 days have elapsed from the date of submission. (c) “Financing order” shall mean an order of the commission adopted in accordance with this article, which shall include, without limitation, a procedure to require the expeditious approval by the commission of periodic adjustments to fixed transition amounts included therein to ensure recovery of all transition costs and the costs of capital associated with the proposed provision, recovery, financing, or refinancing thereof, including the costs of issuing, servicing, and retiring the rate reduction bonds contemplated by the financing order. These adjustments shall not impose fixed transition amounts upon classes of customers who were not subject to the fixed transition amounts in the pertinent financing order. (d) “Fixed transition amounts” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are authorized by the commission in a financing order to recover (1) transition costs, and (2) the costs of providing, recovering, financing, or refinancing the transition costs through a plan approved by the commission in the financing order, including the costs of issuing, servicing, and retiring rate reduction bonds. If requested by the electrical corporation in its application for a financing order, fixed transition amounts shall include nonbypassable rates and other charges to recover federal and state taxes whose recovery period is modified by the transactions approved in the financing order. (e) “Rate reduction bonds” means bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, the proceeds of which are used, directly or indirectly, to provide, recover, finance, or refinance transition costs, and that are directly or indirectly secured by, or payable from, transition property. (f) “Transition costs” means the costs, and categories of costs, of an electrical corporation for generation-related assets and obligations, consisting of generation facilities, generation-related regulatory assets, nuclear settlements, and power purchase contracts, including, but not limited to, voluntary restructuring, renegotiations, or terminations thereof approved by the commission, that were being collected in commission-approved rates on December 20, 1995, and that may become uneconomic as a result of a competitive generation market in that those costs may not be recoverable in market prices in a competitive market, and appropriate costs incurred after December 20, 1995, for capital additions to generating facilities existing as of December 20, 1995, that the commission determines are reasonable and should be recovered, provided that these costs are necessary to maintain the facilities through December 31, 2001. Transition costs shall also include the costs of refinancing or retiring of debt or equity capital of the electrical corporation, and associated federal and state tax liabilities. (g) (1) “Transition property” means the property right created pursuant to this article including, without limitation, the right, title, and interest of an electrical corporation or its transferee: (A) In and to the tariff established pursuant to a financing order, as adjusted from time to time in accordance with subdivision (c) of Section 841 and the financing order. (B) To be paid the amount that is determined in a financing order to be the amount that the electrical corporation or its transferee is lawfully entitled to receive pursuant to the provision of this article and the proceeds thereof, and in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the tariff or constituting fixed transition amounts that are the subject of a financing order including those nonbypassable rates and other charges referred to in subdivision (d). (C) In and to all rights to obtain adjustments to the tariff pursuant to the terms of subdivision (c) of Section 841 and the financing order. (2) “Transition property” shall constitute a current property right notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of a particular electrical corporation, the electrical corporation performing certain services. (3) For purposes of Sections 63010 and 63025.1 of the Government Code, “transition property” also shall mean certificates representing primarily interests in the property rights described in paragraphs (1) and (2). (Amended by Stats. 1997, Ch. 275, Sec. 27. Effective August 15, 1997.)
  15. 8400.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 9. Electrical, Gas, Sewer, and Water Service for New Housing Construction [8400 - 8401] ( Chapter 9 added by Stats. 2024, Ch. 787, Sec. 1. )

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    This section defines “utility” for this chapter.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 9. Electrical, Gas, Sewer, and Water Service for New Housing Construction [8400 - 8401] ( Chapter 9 added by Stats. 2024, Ch. 787, Sec. 1. ) ## 8400. As used in this chapter, “utility” means any of the following that furnish electrical, gas, water, or sewer service, or any combination thereof, where the service is performed for, or the commodity is delivered to, the public or any portion thereof: (a) An electrical corporation, as defined in Section 218. (b) A gas corporation, as defined in Section 222. (c) A sewer system corporation, as defined in Section 230.6. (d) A water corporation, as defined in Section 241. (e) A municipality or municipal corporation operating as a public utility pursuant to Division 5 (commencing with Section 10001). (f) A municipal utility district formed pursuant to the Municipal Utility District Act (Division 6 (commencing with Section 11501)). (g) A public utility district formed pursuant to The Public Utility District Act (Division 7 (commencing with Section 15501)). (h) An irrigation district formed pursuant to the Irrigation District Law (Division 11 (commencing with Section 20500) of the Water Code). (i) A joint powers authority that includes one or more of the entities described in subdivisions (e) to (h), inclusive, and that owns electrical, gas, water, or sewer facilities, or furnishes electrical, gas, water, or sewer service over its own or its member’s system. (Added by Stats. 2024, Ch. 787, Sec. 1. (SB 1210) Effective January 1, 2025.)
  16. 8401.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 9. Electrical, Gas, Sewer, and Water Service for New Housing Construction [8400 - 8401] ( Chapter 9 added by Stats. 2024, Ch. 787, Sec. 1. )

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    Each utility must post estimated service-connection fees and estimated completion timeframes on its website by January 1, 2026, for new housing construction, unless a stated exception applies.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 9. Electrical, Gas, Sewer, and Water Service for New Housing Construction [8400 - 8401] ( Chapter 9 added by Stats. 2024, Ch. 787, Sec. 1. ) ## 8401. (a) On or before January 1, 2026, for new housing construction, each utility shall publicly post both of the following on its internet website: (1) A schedule of estimated fees for typical service connections for each housing development type, including, but not limited to, accessory dwelling unit, multifamily, mixed-use, and single-family developments. This paragraph does not apply to a utility that continues to post a schedule of their fees with this information pursuant to Section 65940.1 of the Government Code. (2) The estimated timeframes for completing typical service connections needed for each housing development type, including, but not limited to, accessory dwelling unit, mixed-use, multifamily, and single-family developments. (b) (1) This section does not apply to a utility with fewer than 4,000 service connections that does not establish or maintain an internet website due to a hardship. (2) The utility may establish that a hardship exists by annually adopting a resolution that includes detailed findings based on evidence that is publicly noticed before the meeting and included in the meeting agenda that supports the determination that a hardship prevents the utility from establishing or maintaining an internet website. The findings may include, but shall not be limited to, inadequate access to broadband communications network facilities that enable high-speed internet access, significantly limited financial resources, or insufficient staff resources. (Added by Stats. 2024, Ch. 787, Sec. 1. (SB 1210) Effective January 1, 2025.)
  17. 841.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    Electrical corporations may seek commission approval to recover transition costs through fixed transition amounts, and the commission can issue financing orders and approve needed adjustments under specified conditions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 841. (a) An electrical corporation shall, by June 1, 1997, and may from time to time thereafter apply to the commission for a determination that certain transition costs may be recovered through fixed transition amounts, which would therefore constitute transition property under this article. An electrical corporation may request this determination by the commission in separate proceedings or in an order instituting investigation or order instituting rulemaking, or both. The electrical corporation shall in its application specify that the residential and small commercial customers as defined in subdivision (h) of Section 331 would benefit from reduced rates through the issuance of rate reduction bonds. The commission shall designate fixed transition amounts as recoverable in one or more financing orders if the commission determines, as part of its findings in connection with the financing order, that the designation of the fixed transition amounts, and issuance of rate reduction bonds in connection with some or all of the fixed transition amounts would reduce rates that residential and small commercial customers would have paid if the financing order were not adopted. These customers shall continue to pay fixed transition amounts after December 31, 2001, until the bonds are paid in full by the financing entity. No electrical corporation shall be found to have acted imprudently or unreasonably for failing to amend a power purchase contract where the amendment would modify or waive an existing requirement that the seller be a qualifying facility pursuant to federal law. (b) The commission may issue financing orders in accordance with this article to facilitate the provision, recovery, financing, or refinancing of transition costs. A financing order may be adopted only upon the application of an electrical corporation and shall become effective in accordance with its terms only after the electrical corporation files with the commission the electrical corporation’s written consent to all terms and conditions of the financing order. A financing order may specify how amounts collected from a customer shall be allocated between fixed transition amounts and other charges. (c) Notwithstanding Section 455.5, Section 1708, or any other provision of law, except as otherwise provided in this subdivision with respect to transition property that has been made the basis for the issuance of rate reduction bonds, the financing orders and the fixed transition amounts shall be irrevocable and the commission shall not have authority either by rescinding, altering, or amending the financing order or otherwise, to revalue or revise for ratemaking purposes the transition costs, or the costs of providing, recovering, financing, or refinancing the transition costs, determine that the fixed transition amounts or rates are unjust or unreasonable, or in any way reduce or impair the value of transition property either directly or indirectly by taking fixed transition amounts into account when setting other rates for the electrical corporation; nor shall the amount of revenues arising with respect thereto be subject to reduction, impairment, postponement, or termination. Except as otherwise provided in this subdivision, the State of California does hereby pledge and agree with the owners of transition property and holders of rate reduction bonds that the state shall neither limit nor alter the fixed transition amounts, transition property, financing orders, and all rights thereunder until the obligations, together with the interest thereon, are fully met and discharged, provided nothing contained in this section shall preclude the limitation or alteration if and when adequate provision shall be made by law for the protection of the owners and holders. The bank as agent for the state is authorized to include this pledge and undertaking for the state in these obligations. Notwithstanding any other provision of this section, the commission shall approve the adjustments to the fixed transition amounts as may be necessary to ensure timely recovery of all transition costs that are the subject of the pertinent financing order, and the costs of capital associated with the provision, recovery, financing, or refinancing thereof, including the costs of issuing, servicing, and retiring the rate reduction bonds contemplated by the financing order. The adjustments shall not impose fixed transition amounts upon classes of customers who were not subject to the fixed transition amounts in the pertinent financing order. (d) (1) Financing orders issued under this article do not constitute a debt or liability of the state or of any political subdivision thereof, other than the financing entity, and do not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, other than the financing entity, but are payable solely from the funds provided therefor under this article and shall be consistent with Sections 1 and 18 of Article XVI of the California Constitution. This subdivision shall in no way preclude bond guarantees or enhancements pursuant to this article. All the bonds shall contain on the face thereof a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of, or interest on, this bond.” (2) The issuance of bonds under this article shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation therefor or to make any appropriation for their payment. Nothing in this section shall prevent, or be construed to prevent, the financing entity from pledging the full faith and credit of the infrastructure bank fund to the payment of bonds or issuance of bonds authorized pursuant to this article. (e) The commission shall establish procedures for the expeditious processing of applications for financing orders, including the approval or disapproval thereof within 120 days of the electrical corporation’s making application therefor. The commission shall provide in any financing order for a procedure for the expeditious approval by the commission of periodic adjustments to the fixed transition amounts that are the subject of the pertinent financing order, as required by subdivision (c). The procedure shall require the commission to determine whether the adjustments are required on each anniversary of the issuance of the financing order, and at the additional intervals as may be provided for in the financing order, and for the adjustments, if required, to be approved within 90 days of each anniversary of the issuance of the financing order, or of each additional interval provided for in the financing order. (f) Fixed transition amounts shall constitute transition property when, and to the extent that, a financing order authorizing the fixed transition amounts has become effective in accordance with this article, and the transition property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of this article for the period and to the extent provided in the financing order, but in any event until the rate reduction bonds are paid in full, including all principal, interest, premium, costs, and arrearages thereon. (g) Any surplus fixed transition amounts in excess of the amounts necessary to pay principal, premium, if any, interest and expenses of the issuance of the rate reduction bonds shall be remitted to the financing entity and may be used to benefit residential and small commercial customers if this would not result in a recharacterization of the tax, accounting, and other intended characteristics of the financing, including, but not limited to, the following: (1) Avoiding the recognition of debt on the electrical corporation’s balance sheet for financial accounting and regulatory purposes. (2) Treating the rate reduction bonds as debt of the electrical corporation or its affiliates for federal income tax purposes. (3) Treating the transfer of the transition property by the electrical corporation as a true sale for bankruptcy purposes. (4) Avoiding any adverse impact of the financing on the electrical corporation’s credit rating. (Amended by Stats. 1997, Ch. 275, Sec. 28. Effective August 15, 1997.)
  18. 8410.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. )

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    This section defines “electrical corporation” and “local publicly owned electric utility” for this chapter.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. ) ## 8410. For purposes of this chapter, all of the following definitions apply: (a) “Electrical corporation” has the same meaning as defined in Section 218. (b) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3. (Added by Stats. 2025, Ch. 709, Sec. 1. (AB 777) Effective January 1, 2026.)
  19. 8411.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. )

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    The commission may set agreements for sharing aggregated outage data, and electrical corporations must provide certain outage data to the State Department of Social Services within seven calendar days after a request.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. ) ## 8411. (a) (1) The commission, as it deems necessary for the exchange of aggregated data, may establish any memoranda of understanding or other agreements necessary to direct electrical corporations to timely provide data to the State Department of Social Services to maximize the food assistance available pursuant to Section 18917.2 of the Welfare and Institutions Code. (2) The data provided pursuant to the memoranda of understanding or other agreements shall meet, at minimum, all of the following requirements and prohibitions: (A) The provided data shall be limited to only the aggregated customer outage data at the ZIP Code level that is necessary for the State Department of Social Services to maximize food assistance in an emergency, and shall not include any personally identifiable information. (B) The provided data shall not be used for any purposes other than those specified in this section and Section 18917.2 of the Welfare and Institutions Code. (C) The provided data shall be subject to all applicable privacy laws. (b) (1) Notwithstanding any other law, or the execution of any memoranda of understanding or other agreements, each electrical corporation shall, within seven calendar days, make a reasonable effort to provide aggregated customer outage data, for outages of four hours or longer, in response to a request for data by the State Department of Social Services in order to maximize the food assistance available pursuant to Section 18917.2 of the Welfare and Institutions Code. (2) Data provided to the State Department of Social Services shall meet, at minimum, all of the following requirements and prohibitions: (A) The provided data shall be limited to only the aggregated customer outage data at the ZIP Code level that is necessary for the State Department of Social Services to maximize food assistance in an emergency, and shall not include any personally identifiable information. (B) The provided data shall include, but not be limited to, the dates of power outages, duration in hours of power outages, the counties affected by power outages, the ZIP Codes affected by power outages, and, for each affected ZIP Code, the total number of residential customers in the ZIP Code and the total number of residential customers who lost electrical service during the power outages. (C) The provided data shall not be used for any purposes other than those specified in this section and Section 18917.2 of the Welfare and Institutions Code. (D) The provided data shall be subject to all applicable privacy laws. (c) Each electrical corporation shall have a dedicated point of contact for the State Department of Social Services necessary to provide the data requested pursuant to subdivisions (a) and (b). (d) The commission shall provide technical assistance to the State Department of Social Services, including, but not limited to, technical assistance to support the report described in Section 18917.2 of the Welfare and Institutions Code. (Added by Stats. 2025, Ch. 709, Sec. 1. (AB 777) Effective January 1, 2026.)
  20. 8412.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. )

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    Local publicly owned electric utilities must provide certain aggregated outage data to the State Department of Social Services, and their boards may create agreements to direct that sharing.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 10. Information Sharing [8410 - 8412] ( Chapter 10 added by Stats. 2025, Ch. 709, Sec. 1. ) ## 8412. (a) (1) The governing board of each local publicly owned electric utility, as it deems necessary for the exchange of aggregated data, may establish any memoranda of understanding or other agreements necessary to direct the local publicly owned electric utility to timely provide data to the State Department of Social Services to maximize the food assistance available pursuant to Section 18917.2 of the Welfare and Institutions Code. (2) The data provided pursuant to the memoranda of understanding or other agreements shall meet, at minimum, all of the following requirements and prohibitions: (A) The provided data shall be limited to only the aggregated customer outage data at the ZIP Code level that is necessary for the State Department of Social Services to maximize food assistance in an emergency, and shall not include any personally identifiable information. (B) The provided data shall not be used for any purposes other than those specified in this section and Section 18917.2 of the Welfare and Institutions Code. (C) The provided data shall be subject to all applicable privacy laws. (b) (1) Notwithstanding any other law or the execution of any memoranda of understanding or other agreements, each local publicly owned electric utility shall, within seven calendar days, make a reasonable effort to provide aggregated customer outage data, for outages of four hours or longer, in response to a request for data by the State Department of Social Services in order to maximize the food assistance available pursuant to Section 18917.2 of the Welfare and Institutions Code. (2) Data provided to the State Department of Social Services shall meet, at minimum, all of the following requirements and prohibitions: (A) The provided data shall be limited to only the aggregated customer outage data at the ZIP Code level that is necessary for the State Department of Social Services to maximize food assistance in an emergency, and shall not include any personally identifiable information. (B) The provided data shall include, but not be limited to, the dates of power outages, duration in hours of power outages, the counties affected by power outages, the ZIP Codes affected by power outages, and, for each affected ZIP Code, the total number of residential customers in the ZIP Code and the total number of residential customers who lost electrical service during power outages. (C) The provided data shall not be used for any purposes other than those specified in this section and Section 18917.2 of the Welfare and Institutions Code. (D) The provided data shall be subject to all applicable privacy laws. (c) Each local publicly owned electric utility shall designate a point of contact for the State Department of Social Services necessary to provide the data requested pursuant to subdivisions (a) and (b). (d) The State Department of Social Services shall notify each local publicly owned electric utility of any changes to the federal requirements in a timely manner. (Added by Stats. 2025, Ch. 709, Sec. 1. (AB 777) Effective January 1, 2026.)
  21. 842.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    This section lets financing entities issue rate reduction bonds if the commission approves, and lets electrical corporations and related parties transfer or pledge transition property under approved financing orders.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 842. (a) Financing entities may issue rate reduction bonds upon approval by the commission in the pertinent financing orders. Rate reduction bonds shall be nonrecourse to the credit or any assets of the electrical corporation, other than the transition property as specified in the pertinent financing order. (b) Electrical corporations may sell and assign all or portions of their interest in transition property to an affiliate. Electrical corporations or their affiliates may sell or assign their interests to one or more financing entities that make that property the basis for issuance of rate reduction bonds to the extent approved in the pertinent financing orders. Electrical corporations, their affiliates, or financing entities may pledge transition property as collateral, directly or indirectly, for rate reduction bonds to the extent approved in the pertinent financing orders providing for a security interest in the transition property, in the manner as set forth in Section 843. In addition transition property may be sold or assigned by (1) the financing entity or a trustee for the holders of rate reduction bonds in connection with the exercise of remedies upon a default, or (2) any person acquiring the transition property after a sale or assignment pursuant to this subdivision. (c) To the extent that any interest in transition property is so sold or assigned, or is so pledged as collateral, the commission shall authorize the electrical corporation to contract with the financing entity that it will continue to operate its system to provide service to its customers, will collect amounts in respect of the fixed transition amounts for the benefit and account of the financing entity, and will account for and remit these amounts to or for the account of the financing entity. Contracting with the financing entity in accordance with that authorization shall not impair or negate the characterization of the sale, assignment, or pledge as an absolute transfer, a true sale, or security interest, as applicable. (d) Notwithstanding Section 1708 or any other provision of law, any requirement under this article or a financing order that the commission take action with respect to the subject matter of a financing order shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exercising functions similar to the commission and the commission shall have no authority to rescind, alter, or amend that requirement in a financing order. The approval by the commission in a financing order of the issuance by an electrical corporation or a financing entity of rate reduction bonds shall include the approvals, if any, as may be required by Article 5 (commencing with Section 816) and Section 701.5. Nothing in Section 701.5 shall be construed to prohibit the issuance of rate reduction bonds upon the terms and conditions as may be approved by the commission in a financing order. Section 851 shall not be applicable to the transfer or pledge of transition property, the issuance of rate reduction bonds, or related transactions approved in a financing order. (Amended by Stats. 1997, Ch. 275, Sec. 29. Effective August 15, 1997.)
  22. 843.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    Section 843 sets rules for creating, perfecting, and enforcing security interests and statutory liens in transition property.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 843. (a) A security interest in transition property is valid, is enforceable against the pledgor and third parties, subject to the rights of any third parties holding security interests in the transition property perfected in the manner described in this section, and attaches when all of the following have taken place: (1) The commission has issued the financing order authorizing the fixed transition amounts included in the transition property. (2) Value has been given by the pledgees of the transition property. (3) The pledgor has signed a security agreement covering the transition property. (b) A valid and enforceable security interest in transition property is perfected when it has attached and when a financing statement has been filed in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the pledgor of the transition property as “debtor” and identifying the transition property. Any description of the transition property shall be sufficient if it refers to the financing order creating the transition property. A copy of the financing statement shall be filed with the commission by the electrical corporation that is the pledgor or transferor of the transition property, and the commission may require the electrical corporation to make other filings with respect to the security interest in accordance with procedures it may establish, provided that the filings shall not affect the perfection of the security interest. (c) A perfected security interest in transition property is a continuously perfected security interest in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Transition property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues and proceeds arising with respect thereto have accrued. (d) Subject to the terms of the security agreement covering the transition property and the rights of any third parties holding security interests in the transition property perfected in the manner described in this section, the validity and relative priority of a security interest created under this section is not defeated or adversely affected by the commingling of revenues arising with respect to the transition property with other funds of the electrical corporation that is the pledgor or transferor of the transition property, or by any security interest in a deposit account of that electrical corporation perfected under Division 9 (commencing with Section 9101) of the Commercial Code into which the revenues are deposited. Subject to the terms of the security agreement, upon compliance with the requirements of Section 9311 of the Commercial Code, the pledgees of the transition property shall have a perfected security interest in all cash and deposit accounts of the electrical corporation in which revenues arising with respect to the transition property have been commingled with other funds, but the perfected security interest shall be limited to an amount not greater than the amount of the revenues with respect to the transition property received by the electrical corporation within 12 months before (1) any default under the security agreement or (2) the institution of insolvency proceedings by or against the electrical corporation, less payments from the revenues to the pledgees during that 12-month period. (e) If an event of default occurs under the security agreement covering the transition property, the pledgees of the transition property, subject to the terms of the security agreement, shall have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and shall be entitled to foreclose or otherwise enforce their security interest in the transition property, subject to the rights of any third parties holding prior security interests in the transition property perfected in the manner provided in this section. In addition, the commission may require, in the financing order creating the transition property, that, in the event of default by the electrical corporation in payment of revenues arising with respect to the transition property, the commission and any successor thereto, upon the application by the pledgees or transferees, including transferees under Section 844, of the transition property, and without limiting any other remedies available to the pledgees or transferees by reason of the default, shall order the sequestration and payment to the pledgees or transferees of revenues arising with respect to the transition property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the transition property. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the rate reduction bonds, and other costs arising under the security agreement, shall be remitted to the debtor or to the pledgor or transferor. (f) Section 5451 of the Government Code shall not apply to any pledge of transition property by a financing entity. Sections 9204 and 9205 of the Commercial Code shall apply to a pledge of transition property by an electrical corporation, an affiliate of an electrical corporation, or a financing entity. (g) This section sets forth the terms by which a consensual security interest can be created and perfected in the transition property. Unless otherwise ordered by the commission with respect to any series of rate reduction bonds on or prior to the issuance of the series, there shall exist a statutory lien as provided in this subdivision. Upon the effective date of the financing order, there shall exist a first priority lien on all transition property then existing or thereafter arising pursuant to the terms of the financing order. This lien shall arise by operation of this section automatically without any action on the part of the electrical corporation, any affiliate thereof, the financing entity, or any other person. This lien shall secure all obligations, then existing or subsequently arising, to the holders of the rate reduction bonds issued pursuant to the financing order, the trustee or representative for the holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall, upon the occurrence of any defaults specified in the financing order, have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and shall be entitled to foreclose or otherwise enforce this statutory lien in the transition property. This lien shall attach to the transition property regardless of who shall own, or shall subsequently be determined to own, the transition property including any electrical corporation, any affiliate thereof, the financing entity, or any other person. This lien shall be valid, perfected, and enforceable against the owner of the transition property and all third parties upon the effectiveness of the financing order without any further public notice; provided, however, that any person may, but shall not be required to, file a financing statement in accordance with subdivision (b). Financing statements so filed may be “protective filings” and shall not be evidence of the ownership of the transition property. A perfected statutory lien in transition property is a continuously perfected lien in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting liens shall rank according to priority in time of perfection. Transition property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues and proceeds arising with respect thereto have accrued. In addition, the commission may require, in the financing order creating the transition property, that, in the event of default by the electrical corporation in payment of revenues arising with respect to transition property, the commission and any successor thereto, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of revenues arising with respect to the transition property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the transition property. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the rate reduction bonds, and other costs arising in connection with the documents governing the rate reduction bonds, shall be remitted to the debtor or to the pledgor or transferor. (Amended by Stats. 1999, Ch. 991, Sec. 55. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)
  23. 844.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    Transfers of transition property can be treated as true sales if they are expressly documented that way and approved in a financing order.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 844. (a) A transfer of transition property by an electrical corporation to an affiliate or to a financing entity, or by an affiliate of an electrical corporation or a financing entity to another financing entity, which the parties have in the governing documentation expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor’s right, title, and interest (as in a true sale), and not as a pledge or other financing, of the transition property, other than for federal and state income and franchise tax purposes. Granting to holders of rate reduction bonds a preferred right to revenues of the electrical corporation, or the provision by the company of other credit enhancement with respect to rate reduction bonds, shall not impair or negate the characterization of any transfer as a true sale, other than for federal and state income and franchise tax purposes. (b) A transfer of transition property shall be deemed perfected as against third persons when both of the following have taken place: (1) The commission has issued the financing order authorizing the fixed transition amounts included in the transition property. (2) An assignment of the transition property in writing has been executed and delivered to the transferee. (c) As between bona fide assignees of the same right for value without notice, the assignee first filing a financing statement in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the assignor of the transition property as debtor and identifying the transition property has priority. Any description of the transition property shall be sufficient if it refers to the financing order creating the transition property. A copy of the financing statement shall be filed by the assignee with the commission, and the commission may require the assignor or the assignee to make other filings with respect to the transfer in accordance with procedures it may establish, but these filings shall not affect the perfection of the transfer. (Amended by Stats. 1999, Ch. 991, Sec. 56. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)
  24. 845.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    A successor to an electrical corporation must carry out the corporation’s obligations under this article, including collecting and paying certain revenues.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 845. Any successor to the electrical corporation, whether pursuant to any bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the electrical corporation pursuant to this article in the same manner and to the same extent as the electrical corporation, including, but not limited to, collecting and paying to the holders of rate reduction bonds or their representatives or the applicable financing entity revenues arising with respect to the transition property sold to the applicable financing entity or pledged to secure rate reduction bonds. (Added by Stats. 1996, Ch. 854, Sec. 11. Effective September 24, 1996.)
  25. 846.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    The commission’s authority to issue financing orders under Section 841 expires on June 30, 2022.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 846. The authority of the commission to issue financing orders pursuant to Section 841 shall expire on June 30, 2022. The expiration of the authority shall have no effect upon financing orders adopted by the commission pursuant to this article or any transition property arising therefrom, or upon the charges authorized to be levied thereunder, or the rights, interests, and obligations of the electrical corporation or a financing entity or holders of transition bonds pursuant to the financing order, or the authority of the commission to monitor, supervise, or take further action with respect to the order in accordance with the terms of this article and of the order. (Amended by Stats. 2016, Ch. 842, Sec. 17. (SB 1222) Effective January 1, 2017.)
  26. 846.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

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    The commission may order a fair and reasonable credit to ratepayers of excess rate reduction bond proceeds for certain electrical corporations.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 846.2. (a) Notwithstanding subdivision (c) of Section 841, for any electrical corporation that ended its rate freeze period described in subdivision (a) of Section 368 prior to July 15, 1999, the commission may order a fair and reasonable credit to ratepayers of any excess rate reduction bond proceeds. (b) “Excess rate reduction bond proceeds,” as used in this section, means proceeds from the sale of rate reduction bonds authorized by commission financing orders issued pursuant to this article that are subsequently determined by the commission to be in excess of the amounts necessary to provide the 10-percent rate reduction during the period when the rates were frozen pursuant to subdivision (a) of Section 368. (Added by Stats. 1999, Ch. 683, Sec. 1. Effective January 1, 2000.)
  27. 847.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. )

    Verify source ↗

    Regulations adopted to implement this article are not subject to the Administrative Procedure Act.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.5. Financing of Transition Costs [840 - 847] ( Article 5.5 added by Stats. 1996, Ch. 854, Sec. 11. ) ## 847. Regulations adopted to implement this article shall not be subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 1996, Ch. 854, Sec. 11. Effective September 24, 1996.)
  28. 848.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

    Verify source ↗

    This section defines key terms used in Article 5.6 on financing utility recovery, including consumer, financing entity, financing order, recovery bonds, recovery costs, and recovery property.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848. For the purposes of this article, the following terms shall have the following meanings: (a) “Consumer” means any individual, governmental body, trust, business entity or nonprofit organization which consumes electricity that has been transmitted or distributed by means of electric transmission or distribution facilities, whether those electric transmission or distribution facilities are owned by the consumer, the recovery corporation, or any other party. (b) “Financing entity” means the recovery corporation or any subsidiary or affiliate of the recovery corporation that is authorized by the commission to issue recovery bonds or acquire recovery property, or both. (c) “Financing order” means an order of the commission adopted in accordance with this article, which shall include, without limitation, a procedure to require the expeditious approval by the commission of periodic adjustments to fixed recovery amounts and to any associated fixed recovery tax amounts included in that financing order to ensure recovery of all recovery costs and the costs associated with the proposed recovery, financing, or refinancing thereof, including the costs of servicing and retiring the recovery bonds contemplated by the financing order. (d) “Fixed recovery amounts” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are authorized by the commission in a financing order to recover (1) recovery costs specified in the financing order, and (2) the costs of recovering, financing, or refinancing those recovery costs through a plan approved by the commission in the financing order, including the costs of servicing and retiring recovery bonds. (e) “Fixed recovery tax amounts” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are needed to recover federal and State of California income and franchise taxes associated with fixed recovery amounts authorized by the commission in the financing order and that are not financed from proceeds of recovery bonds. (f) “Recovery bonds” means bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, the proceeds of which are used, directly or indirectly, to recover, finance, or refinance recovery costs, and that are directly or indirectly secured by, or payable from, recovery property. (g) “Recovery corporation” means Pacific Gas and Electric Company, the electrical corporation described in the commission’s Decision No. 03-12-035. (h) “Recovery costs” means (1) the unamortized balance of the regulatory asset arising and existing pursuant to the commission’s Decision No. 03-12-035, (2) federal and State of California income and franchise taxes associated with recovery of the unamortized balance of that regulatory asset, (3) costs of issuing recovery bonds, and (4) professional fees, consultant fees, redemption premiums, tender premiums and other costs incurred by the recovery corporation in using proceeds of recovery bonds to acquire outstanding securities of the recovery corporation. (i) (1) “Recovery property” means the property right created pursuant to this article, including, without limitation, the right, title, and interest of the recovery corporation or its transferee: (A) In and to the tariff established pursuant to a financing order, as adjusted from time to time in accordance with Section 848.1 and the financing order. (B) To be paid the amount that is determined in a financing order to be the amount that the recovery corporation or its transferee is lawfully entitled to receive pursuant to the provisions of this article and the proceeds thereof, and in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the tariff or constituting fixed recovery amounts that are the subject of a financing order including those nonbypassable rates and other charges referred to in subdivision (d). (C) In and to all rights to obtain adjustments to the tariff relating to fixed recovery amounts pursuant to the terms of Section 848.1 and the financing order. (2) “Recovery property” shall not include the right to be paid fixed recovery tax amounts. (3) “Recovery property” shall constitute a current property right notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of the recovery corporation, the recovery corporation performing certain services. (j) “Service territory” means the geographical area that the recovery corporation provided with electric distribution service as of December 19, 2003. (Amended by Stats. 2008, Ch. 558, Sec. 27. Effective January 1, 2009.)
  29. 848.1.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

    Verify source ↗

    The recovery corporation must apply to the commission for approval of recovery costs, and the commission sets financing orders and related recovery amounts under specified conditions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.1. (a) No later than 120 days after the effective date of this article, and from time to time thereafter, the recovery corporation shall apply to the commission for a determination that some or all of the recovery corporation’s recovery costs may be recovered through fixed recovery amounts, which would be recovery property under this article, and that any portion of the recovery corporation’s federal and State of California income and franchise taxes associated with those fixed recovery amounts and not financed from proceeds of recovery bonds be recovered through fixed recovery tax amounts. The recovery corporation may request this determination by the commission in a separate proceeding or in an existing proceeding, or both. The recovery corporation shall in its application specify that consumers within its service territory would benefit from reduced rates on a present value basis through the issuance of recovery bonds. The commission shall designate fixed recovery amounts and any associated fixed recovery tax amounts as recoverable in one or more financing orders if the commission determines, as part of its findings in connection with the financing order, that the designation of the fixed recovery amounts and any associated fixed recovery tax amounts, and the issuance of recovery bonds in connection with fixed recovery amounts, would reduce the rates on a present value basis that consumers within the recovery corporation’s service territory would pay if the financing order were not adopted. Fixed recovery amounts and any associated fixed recovery tax amounts shall only be imposed on existing and future consumers in the service territory. Consumers within the service territory shall continue to pay fixed recovery amounts and any associated fixed tax recovery amounts until the recovery bonds are paid in full by the financing entity. Once the recovery bonds have been paid in full, the payment by consumers of fixed recovery amounts and fixed recovery tax amounts shall terminate. (b) The commission shall establish an effective mechanism that ensures recovery of recovery costs through fixed recovery amounts and any associated fixed recovery tax amounts from existing and future consumers in the service territory, provided that the costs shall not be recoverable from any of the following: (1) New load or incremental load of an existing consumer of the recovery corporation where the load is being met through a direct transaction and the transaction does not require the use of transmission or distribution facilities owned by the recovery corporation. (2) Customer Generation departing load that is exempt from Department of Water Resources power charges pursuant to the commission’s Decision No. 03-04-030, as modified by Decision No. 03-04-041, and as clarified and affirmed by Decision No. 03-05-039, except that the load shall pay the costs as a component of and in proportion to any purchase of electricity delivered by the recovery corporation under standby or other service made following its departure. (3) The Department of Water Resources, with respect to the pumping, generation, and transmission facilities and operations of the State Water Resources Development System, except to the extent that system facilities receive electric service from the recovery corporation on or after December 19, 2003, under a commission approved tariff. (4) Retail electric load, continuously served by a local publicly owned electric utility from January 1, 2000, through the effective date of the act adding this section. (5) Load that thereafter comes to take electric service from a city where all the following conditions are met: (A) The new load is from locations that never received electric service from the recovery corporation. (B) The city owns and operates the local publicly owned electric utility. (C) The local publicly owned electric utility served more than 95 percent of the customers receiving electric service residing within the city limits prior to December 19, 2003. (D) The city annexed the territory in which the load is located on or after December 19, 2003. (E) Following annexation, the city provides all municipal services to the annexed territory that the city provides to other territory within the city limits, including electric service. (F) The total load exempt from paying fixed recovery amounts and associated fixed recovery tax amounts pursuant to subparagraphs (A) through (D), inclusive, does not exceed 50 megawatts, as determined by the commission, and any load above the 50 megawatt exemption amount shall be responsible for paying recovery amounts and associated fixed recovery tax amounts, except as provided in subdivision (c). (c) Except as provided in paragraphs (4) and (5) of subdivision (b), the commission shall determine the extent to which fixed recovery amounts and any associated fixed recovery tax amounts are recoverable from new municipal load, consistent with the commission’s determination in the limited rehearing granted in Decision 03-08-076. The determination of the commission shall be made on the earlier of the date it adopts a financing order or December 31, 2004. (d) Except as provided in paragraphs (4) and (5) of subdivision (b) and in subdivision (c), the obligation to pay fixed recovery amounts and any associated fixed recovery tax amounts cannot be avoided by the formation of a local publicly owned electric utility on or after December 19, 2003, or by annexation of any portion of the service territory of the recovery corporation by an existing local publicly owned electric utility. (e) Recovery bonds authorized by the commission’s financing orders may be issued in one or more series on or before December 31, 2006. (f) The commission may issue financing orders in accordance with this article to facilitate the recovery, financing, or refinancing of recovery costs. A financing order may be adopted only upon the application of the recovery corporation and shall become effective in accordance with its terms only after the recovery corporation files with the commission the recovery corporation’s written consent to all terms and conditions of the financing order. A financing order may specify how amounts collected from a consumer shall be allocated between fixed recovery amounts, any associated fixed recovery tax amounts, and other charges. (g) Notwithstanding Section 455.5 or 1708, or any other provision of law, except as otherwise provided in Section 848.7 or in this subdivision with respect to recovery property that has been made the basis for the issuance of recovery bonds and with respect to any associated fixed recovery tax amounts, the financing order, the fixed recovery amounts and any associated fixed recovery tax amounts shall be irrevocable, and the commission shall not have authority either by rescinding, altering, or amending the financing order or otherwise, to revalue or revise for ratemaking purposes, the recovery costs or the costs of recovering, financing, or refinancing the recovery costs, determine that the fixed recovery amounts, any associated fixed recovery tax amounts or rates are unjust or unreasonable, or in any way reduce or impair the value of recovery property or of the right to receive any associated fixed recovery tax amounts either directly or indirectly by taking fixed recovery amounts or any associated fixed recovery tax amounts into account when setting other rates for the recovery corporation or when setting charges for the Department of Water Resources; nor shall the amount of revenues arising with respect thereto be subject to reduction, impairment, postponement, or termination. Except as otherwise provided in this subdivision, the State of California does hereby pledge and agree with the recovery corporation, owners of recovery property, and holders of recovery bonds that the state shall neither limit nor alter the fixed recovery amounts, any associated fixed recovery tax amounts, recovery property, financing orders, or any rights thereunder until the recovery bonds, together with the interest thereon, are fully paid and discharged, and any associated fixed recovery tax amounts have been satisfied or, in the alternative, have been refinanced through an additional issue of recovery bonds; provided nothing contained in this section shall preclude the limitation or alteration if and when adequate provision shall be made by law for the protection of the recovery corporation, owners, and holders. The financing entity is authorized to include this pledge and undertaking for the state in these recovery bonds. Notwithstanding any other provision of this section, the commission shall approve adjustments to the fixed recovery amounts and any associated fixed recovery tax amounts as may be necessary to ensure timely recovery of all recovery costs that are the subject of the pertinent financing order, and the costs of capital associated with the recovery, financing, or refinancing thereof, including servicing and retiring the recovery bonds contemplated by the financing order. When setting other rates for the recovery corporation, nothing in this subdivision shall prevent the commission from taking into account either of the following: (1) Any collection of fixed recovery amounts in excess of amounts actually required to pay recovery costs financed or refinanced by recovery bonds. (2) Any collection of fixed recovery tax amounts in excess of amounts actually required to pay federal and State of California income and franchise taxes associated with fixed recovery amounts; provided that this would not result in a recharacterization of the tax, accounting, and other intended characteristics of the financing, including, but not limited to, either of the following: (A) Treating the recovery bonds as debt of the recovery corporation or its affiliates for federal income tax purposes. (B) Treating the transfer of the recovery property by the recovery corporation as a true sale for bankruptcy purposes. (h) (1) Financing orders issued under this article do not constitute a debt or liability of the state or of any political subdivision thereof, and do not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, but are payable solely from the funds provided therefor under this article and shall be consistent with Sections 1 and 18 of Article XVI of the California Constitution. This subdivision shall in no way preclude bond guarantees or enhancements pursuant to this article. All recovery bonds shall contain on the face thereof a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of, or interest on, this bond.” (2) The issuance of recovery bonds under this article shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation therefor or to make any appropriation for their payment. (i) The commission shall establish procedures for the expeditious processing of applications for financing orders, including the approval or disapproval thereof within 120 days of the recovery corporation making application therefor. The commission shall provide in any financing order for a procedure for the expeditious approval by the commission of periodic adjustments to the fixed recovery amounts and any associated fixed recovery tax amounts that are the subject of the pertinent financing order, as required by subdivision (g). The procedure shall require the commission to determine whether the adjustments are required on each anniversary of the issuance of the financing order, and at the additional intervals as may be provided for in the financing order, and for the adjustments, if required, to be approved within 90 days of each anniversary of the issuance of the financing order, or of each additional interval provided for in the financing order. (j) Fixed recovery amounts are recovery property when, and to the extent that, a financing order authorizing the fixed recovery amounts has become effective in accordance with this article, and the recovery property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of this article for the period and to the extent provided in the financing order, but in any event until the recovery bonds are paid in full, including all principal, interest, premium, costs, and arrearages thereon. (k) This article and any financing order made pursuant to this article do not amend, reduce, modify, or otherwise affect the right of the Department of Water Resources to recover its revenue requirements and to receive the charges that it is to recover and receive pursuant to Division 27 (commencing with Section 80000) of the Water Code, or pursuant to any agreement entered into by the commission and the Department of Water Resources pursuant to that division. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  30. 848.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

    Verify source ↗

    The financing entity may issue recovery bonds if the commission approves them, and the recovery corporation may sell, assign, or pledge recovery property within the limits approved in the financing order.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.2. (a) The financing entity may issue recovery bonds upon approval by the commission in the pertinent financing orders. Recovery bonds shall be nonrecourse to the credit or any assets of the recovery corporation, other than the recovery property as specified in the pertinent financing order. (b) The recovery corporation may sell and assign all or portions of its interest in recovery property to one or more financing entities that make that recovery property the basis for issuance of recovery bonds, to the extent approved in the financing order. The recovery corporation or financing entity may pledge recovery property as collateral, directly or indirectly, for recovery bonds to the extent approved in the pertinent financing orders providing for a security interest in the recovery property, in the manner set forth in Section 848.3. In addition, recovery property may be sold or assigned by (1) the financing entity or a trustee for the holders of recovery bonds in connection with the exercise of remedies upon a default, or (2) any person acquiring the recovery property after a sale or assignment pursuant to this subdivision. (c) To the extent that any interest in recovery property is so sold or assigned, or is so pledged as collateral, the commission shall authorize the recovery corporation to contract with the financing entity that it will continue to operate its system to provide service to consumers within its service territory, will collect amounts in respect of the fixed recovery amounts for the benefit and account of the financing entity, and will account for and remit these amounts to or for the account of the financing entity. Contracting with the financing entity in accordance with that authorization shall not impair or negate the characterization of the sale, assignment, or pledge as an absolute transfer, a true sale, or security interest, as applicable. (d) Notwithstanding Section 1708 or any other provision of law, any requirement under this article or a financing order that the commission take action with respect to the subject matter of a financing order shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exercising functions similar to the commission, and the commission shall have no authority to rescind, alter, or amend that requirement in a financing order. The approval by the commission in a financing order of the issuance by the recovery corporation or a financing entity of recovery bonds shall include the approvals, if any, as may be required by Article 5 (commencing with Section 816) and Section 701.5. Nothing in Section 701.5 shall be construed to prohibit the issuance of recovery bonds upon the terms and conditions as may be approved by the commission in a financing order. Section 851 is not applicable to the transfer or pledge of recovery property, the issuance of recovery bonds, or related transactions approved in a financing order. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  31. 848.3.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    This section says how a security interest or statutory lien in recovery property is created, perfected, and enforced.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.3. (a) A security interest in recovery property is valid, is enforceable against the pledgor and third parties, subject to the rights of any third parties holding security interests in the recovery property perfected in the manner described in this section, and attaches when all of the following have taken place: (1) The commission has issued the financing order authorizing the fixed recovery amounts included in the recovery property. (2) Value has been given by the pledgees of the recovery property. (3) The pledgor has signed a security agreement covering the recovery property. (b) A valid and enforceable security interest in recovery property is perfected when it has attached and when a financing statement has been filed in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the pledgor of the recovery property as “debtor” and identifying the recovery property. Any description of the recovery property shall be sufficient if it refers to the financing order creating the recovery property. A copy of the financing statement shall be filed with the commission by the recovery corporation that is the pledgor or transferor of the recovery property, and the commission may require the recovery corporation to make other filings with respect to the security interest in accordance with procedures it may establish, provided that the filings shall not affect the perfection of the security interest. (c) A perfected security interest in recovery property is a continuously perfected security interest in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Recovery property shall constitute property for all purposes, including for contracts securing recovery bonds, whether or not the revenues and proceeds arising with respect thereto have accrued. (d) Subject to the terms of the security agreement covering the recovery property and the rights of any third parties holding security interests in the recovery property perfected in the manner described in this section, the validity and relative priority of a security interest created under this section is not defeated or adversely affected by the commingling of revenues arising with respect to the recovery property with other funds of the recovery corporation that is the pledgor or transferor of the recovery property, or by any security interest in a deposit account of that recovery corporation perfected under Division 9 (commencing with Section 9101) of the Commercial Code into which the revenues are deposited. Subject to the terms of the security agreement, upon compliance with the requirements of paragraph (1) of subdivision (b) of Section 9312 of the Commercial Code, the pledgees of the recovery property shall have a perfected security interest in all cash and deposit accounts of the recovery corporation in which revenues arising with respect to the recovery property have been commingled with other funds, but the perfected security interest shall be limited to an amount not greater than the amount of the revenues with respect to the recovery property received by the recovery corporation within 12 months before (1) any default under the security agreement or (2) the institution of insolvency proceedings by or against the recovery corporation, less payments from the revenues to the pledgees during that 12-month period. (e) If an event of default occurs under the security agreement covering the recovery property, the pledgees of the recovery property, subject to the terms of the security agreement, shall have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and are entitled to foreclose or otherwise enforce their security interest in the recovery property, subject to the rights of any third parties holding prior security interests in the recovery property perfected in the manner provided in this section. In addition, the commission may require in the financing order creating the recovery property that, in the event of default by the recovery corporation in payment of revenues arising with respect to the recovery property, the commission and any successor thereto, upon the application by the pledgees or transferees, including transferees under Section 848.4, of the recovery property, and without limiting any other remedies available to the pledgees or transferees by reason of the default, shall order the sequestration and payment to the pledgees or transferees of revenues arising with respect to the recovery property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the recovery bonds, and other costs arising under the security agreement, shall be remitted to the debtor. (f) Sections 9204 and 9205 of the Commercial Code apply to a pledge of recovery property by the recovery corporation, an affiliate of the recovery corporation, or a financing entity. (g) This section sets forth the terms by which a consensual security interest can be created and perfected in the recovery property. Unless otherwise ordered by the commission with respect to any series of recovery bonds on or prior to the issuance of the series, there shall exist a statutory lien as provided in this subdivision. Upon the effective date of the financing order, there shall exist a first priority lien on all recovery property then existing or thereafter arising pursuant to the terms of the financing order. This lien shall arise by operation of this section automatically without any action on the part of the recovery corporation, any affiliate thereof, the financing entity, or any other person. This lien shall secure all obligations, then existing or subsequently arising, to the holders of the recovery bonds issued pursuant to the financing order, the trustee or representative for the holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall, upon the occurrence of any defaults specified in the financing order, have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and are entitled to foreclose or otherwise enforce this statutory lien in the recovery property. This lien attaches to the recovery property regardless of who owns, or is subsequently determined to own, the recovery property, including the recovery corporation, any affiliate thereof, the financing entity, or any other person. This lien shall be valid, perfected, and enforceable against the owner of the recovery property and all third parties upon the effectiveness of the financing order without any further public notice; provided, however, that any person may, but is not required to, file a financing statement in accordance with subdivision (b). Financing statements so filed may be “protective filings” and are not evidence of the ownership of the recovery property. A perfected statutory lien in recovery property is a continuously perfected lien in all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting liens shall rank according to priority in time of perfection. Recovery property shall constitute property for all purposes, including for contracts securing recovery bonds, whether or not the revenues and proceeds arising with respect thereto have accrued. In addition, the commission may require, in the financing order creating the recovery property, that, in the event of default by the recovery corporation in the payment of revenues arising with respect to recovery property, the commission and any successor thereto, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of revenues arising with respect to the recovery property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest, costs, and arrearages on the recovery bonds, and other costs arising in connection with the documents governing the recovery bonds, shall be remitted to the debtor. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  32. 848.4.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    The section says certain approved transfers of recovery property are treated as absolute sales, and it sets out when the transfer is perfected and who has priority.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.4. (a) A transfer of recovery property by the recovery corporation to an affiliate or to a financing entity, or by an affiliate of the recovery corporation or a financing entity to another financing entity, which the parties in the governing documentation have expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor’s right, title, and interest (as in a true sale), and not as a pledge or other financing, of the recovery property, other than for federal and state income and franchise tax purposes. The grant to holders of recovery bonds of a preferred right to revenues of the recovery corporation, or the provision by the company of other credit enhancement with respect to recovery bonds, shall not impair or negate the characterization of any transfer as a true sale, other than for federal and state income and franchise tax purposes. (b) A transfer of recovery property shall be deemed perfected as against third persons when both of the following have taken place: (1) The commission has issued the financing order authorizing the fixed recovery amounts included in the recovery property. (2) An assignment of the recovery property in writing has been executed and delivered to the transferee. (c) As between bona fide assignees of the same right for value without notice, the assignee first filing a financing statement in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the assignor of the recovery property as debtor and identifying the recovery property has priority. Any description of the recovery property is sufficient if it refers to the financing order creating the recovery property. A copy of the financing statement shall be filed by the assignee with the commission, and the commission may require the assignor or the assignee to make other filings with respect to the transfer in accordance with procedures it may establish, but these filings shall not affect the perfection of the transfer. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  33. 848.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    A successor to the recovery corporation must take over the corporation’s obligations under this article, and may receive any fixed recovery tax amounts payable to the corporation.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.5. Any successor to the recovery corporation, whether pursuant to any bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the recovery corporation pursuant to this article in the same manner and to the same extent as the recovery corporation, including, but not limited to, collecting and paying to the holders of recovery bonds, or their representatives, or the applicable financing entity revenues arising with respect to the recovery property sold to the applicable financing entity or pledged to secure recovery bonds. Any successor to the recovery corporation is entitled to receive any fixed recovery tax amounts otherwise payable to the recovery corporation. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  34. 848.6.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    The commission’s authority to issue financing orders under Section 848.1 expires on December 31, 2006.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.6. The authority of the commission to issue financing orders pursuant to Section 848.1 shall expire on December 31, 2006. The expiration of the authority shall have no effect upon financing orders adopted by the commission pursuant to this article or any recovery property arising therefrom, or upon the charges authorized to be levied thereunder, or the rights, interests, and obligations of the recovery corporation or a financing entity or holders of recovery bonds pursuant to the financing order, or the authority of the commission to monitor, supervise, or take further action with respect to the order in accordance with the terms of this article and of the order. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  35. 848.7.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    The commission must credit ratepayers with certain net after-tax amounts received by the recovery corporation.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.7. Notwithstanding subdivision (g) of Section 848.1, the commission shall credit ratepayers, in a manner to be determined by the commission, with the net after tax amount of any payments, offsets, or other credits the recovery corporation actually receives from generators of electricity or other energy suppliers that would have reduced the unamortized balance of the recovery corporation’s regulatory asset created under the commission’s Decision No. 03-12-035 but for the prior issuance of recovery bonds. (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  36. 848.8.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. )

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    Regulations adopted to implement this article are exempt from the Administrative Procedure Act rulemaking provisions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.6. Financing Utility Recovery [848 - 848.8] ( Article 5.6 added by Stats. 2004, Ch. 46, Sec. 5. ) ## 848.8. Notwithstanding any other law, regulations adopted to implement this article are not subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 2004, Ch. 46, Sec. 5. Effective June 7, 2004.)
  37. 849.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    This section defines terms used in the article, including financing costs, financing order, water rate relief bonds, and water supply property.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849. For purposes of this article, the following definitions shall apply: (a) “Ancillary agreement” means a bond insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other similar agreement or arrangement entered into in connection with the issuance of water rate relief bonds that is designed to promote the credit quality and marketability of the bonds or to mitigate the risk of an increase in interest rates. (b) “Customer” means an individual, governmental body, trust, business entity, or nonprofit organization that is a customer of the qualifying water utility, has responsibility for a service address provided water service by the utility, or consumes water that has been transmitted or distributed by means of distribution facilities. (c) “District” means the Monterey Peninsula Water Management District, or its successor or assignee. (d) “Financing costs” means the costs to issue, service, repay, or refinance water rate relief bonds, whether incurred or paid upon issuance of the bonds or over the life of the bonds, and approved for recovery by the commission in a financing order. “Financing costs” may include any of the following: (1) Principal, interest, and redemption premiums that are payable on water rate relief bonds. (2) A payment required under an ancillary agreement and an amount required to fund or replenish a reserve account or other account established under an indenture, ancillary agreement, or other financing document relating to the water rate relief bonds. (3) Costs of retiring or funding an existing debt and equity security of a qualifying water utility in connection with the issuance of water rate relief bonds to the extent the securities were issued for the purpose of financing water supply costs. (4) Costs incurred by, on behalf of, or allocated to, a qualifying water utility to obtain modifications of, or amendments to, an indenture, financing agreement, security agreement, or similar agreement or instrument relating to an existing secured or unsecured obligation of a qualifying water utility or an affiliate of a qualifying water utility, or any costs incurred by or allocated to a qualifying water utility to obtain the consent, release, waiver, or approval from the holder of the obligation, that are necessary to be incurred to permit a qualifying water utility to issue or cause the issuance of water rate relief bonds. (5) Taxes, franchise fees, or license fees imposed on water supply charges. (6) Costs related to issuing and servicing water rate relief bonds or the application for a financing order, including, without limitation, servicing fees and expenses, trustee fees and expenses, legal fees and expenses, accounting fees, administrative fees, underwriting and placement fees, financial advisory fees, capitalized interest, rating agency fees, and any other related costs that are approved for recovery in the financing order, including costs incurred by a public financing entity. (7) Other costs as specifically authorized by a financing order. (e) “Financing entity” means either or both of the following: (1) The qualifying water utility, or its subsidiary or affiliate, that is authorized by the commission to issue water rate relief bonds, or acquire water supply property, or both, pursuant to a financing order. (2) A public financing entity authorized to issue water rate relief bonds pursuant to a financing order. (f) “Financing order” means an order of the commission adopted in accordance with this article, which shall include a procedure for periodic true-up adjustments to water supply charges. (g) “Qualifying water utility” means California American Water, or any successor public utility described in Section 2701 of the Public Utilities Code that is engaged in the delivery of water to customers on the Monterey Peninsula. (h) “Public financing entity” means any of the following: (1) The district. (2) A joint exercise of powers authority in which the district is a member. (3) A public agency that is authorized to issue water rate relief bonds, or acquire water supply property, or both. (i) “Service territory” means the geographical area within or surrounding the Monterey Peninsula that the qualifying water utility provides water service to in accordance with its certificate of public convenience and necessity and within which water supply charges may be imposed and collected as further described in the financing order. (j) “True-up adjustment” means a formula-based adjustment to the water supply charges as they appear on customer bills that are necessary to correct for any overcollection or undercollection of the water supply charges authorized by a financing order and to otherwise ensure the timely and complete payment and recovery of water supply costs and financing costs over the authorized repayment term. (k) “Water rate relief bonds” means bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, the proceeds of which are used, directly or indirectly, to provide, recover, finance, or refinance water supply costs and financing costs, and that are directly or indirectly secured by, or payable from, water supply property. Water rate relief bonds may be issued simultaneously by two financing entities, but water rate relief bonds shall not be issued after the seventh anniversary of a financing order issued in connection with commission proceeding A.12-04-019. Water rate relief bonds may be issued for a term not to exceed 30 years. (l) “Water supply activity” means an activity or activities by or on behalf of a qualifying water utility in connection with the acquisition and construction of infrastructure directly related to a desalination facility and necessary equipment solely for that facility, including the pipes necessary for conveyance and tanks necessary for water storage, as authorized by the commission in proceeding A.12-04-019. (m) “Water supply charges” means those nonbypassable charges that are authorized by the commission in a financing order to recover water supply costs and all financing costs specified in a financing order. (n) “Water supply costs” means any reasonable and necessary costs, including capitalized interest costs relating to regulatory assets and capitalized costs associated with permitting, design, and engineering work, approved in a financing order, incurred or expected to be incurred by a qualifying water utility in undertaking water supply activities. Water supply costs include preliminary expenses and investments associated with water supply activities that are incurred before the issuance of a financing order and that are to be reimbursed from the proceeds of water rate relief bonds. (o) (1) “Water supply property” means the property right created pursuant to this article, including, without limitation, the right, title, and interest of the qualifying water utility or its transferee in all of the following: (A) In and to the water supply charges established pursuant to a financing order, including all rights to obtain adjustments to the water supply charges in accordance with Section 849.1 and the financing order. (B) To be paid the amount that is determined in a financing order to be the amount that the qualifying water utility or its transferee is lawfully entitled to receive pursuant to the provisions of this article and the proceeds thereof, and in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the water supply charges that are the subject of a financing order. (2) “Water supply property” shall constitute a current property right notwithstanding the fact that the value of the property right will depend on customers using water or, in those instances where customers are customers of the qualifying water utility, the qualifying water utility performing certain services. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  38. 849.1.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    The commission may issue financing orders for water supply costs, but must meet conditions, limit certain increases, and create charge-adjustment procedures.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.1. (a) (1) The commission may issue financing orders in accordance with this article to facilitate the recovery, financing, or refinancing of water supply costs. A financing order may be adopted only upon the application of the qualifying water utility and shall become effective in accordance with its terms. (2) Commencing January 1, 2015, the qualifying water utility may apply to the commission for a determination that no more than 50 percent of the qualifying water utility’s water supply costs may be recovered through water supply charges, which would be water supply property under this article. The commission shall not approve an increase in a financing order that exceeds a total amount of 5 percent of the water supply costs. (3) A public financing entity that proposes to issue water rate relief bonds pursuant to Article 8 of Chapter 3 of Part 5 of the Monterey Peninsula Water Management District Law, as added by Chapter 527 of the Statutes of 1977, or Section 6537 of the Government Code, shall provide information as requested by the commission in connection with the application and proceeding. (4) In its application the qualifying water utility shall specify how customers may benefit from reduced rates on a present value basis through the issuance of water rate relief bonds as compared to the use of traditional utility financing mechanisms. If a public financing entity proposes to issue water rate relief bonds, it shall provide evidence to the commission that the issuance of water rate relief bonds by the public financing entity, due to the availability of a federal or state income tax exemption, will provide savings to water customers on the Monterey Peninsula. (5) The commission shall establish procedures for the expeditious processing of financing order applications, including the approval or disapproval of the qualifying water utility’s application, within 180 days of the application submission. (b) The commission shall authorize the imposition and collection of water supply charges in one or more financing orders if the commission determines, as part of its findings in connection with the financing order, that each imposition and collection of the water supply charges, and the issuance of water rate relief bonds payable from those charges, would reduce the rates on a present value basis that customers within the qualifying water utility’s service territory would pay as compared to the use of traditional utility financing mechanisms, which shall be calculated using the qualifying water utility’s corporate debt and equity in the ratio approved by the commission at the time of the issuance of the financing order. The commission’s determination shall consider all customer payments including rates, surcharges, taxes, water supply charges, and any other payments made by customers for water supply activities. (c) The commission shall establish in a financing order an effective mechanism that ensures recovery of water supply costs and financing costs through nonbypassable water supply charges. Water supply charges shall be imposed only on existing and future customers of the qualifying water utility’s service territory, and those customers shall be required to pay those charges until the water rate relief bonds and all financing costs are paid in full by the financing entity, at which time those charges shall be terminated. Water supply charges shall be irrevocable, notwithstanding any true-up adjustment pursuant to subdivision (g). (d) A financing order may specify how amounts collected from a customer shall be allocated between water supply charges and other charges of the qualifying water utility, consistent with Section 779.2. (e) (1) Notwithstanding Section 455.5 or 1708, or any other provision of law, and except as otherwise provided in subdivision (g), water supply property that has been made the basis for the issuance of water rate relief bonds, the financing order, and the water supply charges shall be irrevocable. The commission shall not, either by rescinding, altering, or amending the financing order or otherwise, revalue or revise for ratemaking purposes the water supply costs or the financing costs, determine that the water supply charges are unjust or unreasonable, or in any way reduce or impair the value of water supply property either directly or indirectly by taking water supply charges into account when setting other rates for the qualifying water utility. The amount of revenues arising shall not be subject to reduction, impairment, postponement, or termination. (2) The State of California does hereby pledge and agree with the qualifying water utility, owners of water supply property, the financing entities, and owners of water rate relief bonds that the state shall neither limit nor alter, except as otherwise provided with respect to true-up adjustment of water supply charges pursuant to subdivision (g), the water supply charges, water supply property, financing orders, or any rights under a financing order until the water rate relief bonds, together with the interest on the bonds, and all related financing costs are fully paid and discharged, or, in the alternative, have been refinanced through an additional issue of water rate relief bonds, provided nothing contained in this section shall preclude the limitation or alteration if and when adequate provision shall be made by law for the protection of the qualifying water utility, financing entities, and owners. The financing entity is authorized to include this pledge and undertaking for the state in the water rate relief bonds. (f) (1) Neither financing orders nor water rate relief bonds issued under this article shall constitute a debt or liability of the state or of any political subdivision of the state except a public financing entity, nor shall they constitute a pledge of the full faith and credit of the state or any of its political subdivisions, but are payable solely from the funds provided therefor under this article and shall be consistent with Sections 1 and 18 of Article XVI of the California Constitution. This subdivision shall not preclude bond guarantees or enhancements pursuant to this article or pursuant to Article 8 of Chapter 3 of Part 5 of the Monterey Peninsula Water Management District Law, as added by Chapter 527 of the Statutes of 1977, or Section 6537 of the Government Code. A water rate relief bond shall contain on the face of the bond a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of, or interest on, this bond.” (2) The issuance of water rate relief bonds under this article shall not directly, indirectly, or contingently obligate the state or any political subdivision of the state to levy or to pledge any form of taxation therefor or to make any appropriation for their payment. Nothing in this paragraph shall prevent or be construed to prevent a public financing entity from pledging water supply property, or payments made on water rate relief bonds, together with any reserves or overcollateralization amounts approved in a financing order, to the payment of the water rate relief bonds. (g) Any water supply charge authorized by a financing order shall appear on customer bills as a stand-alone, line-item surcharge. The commission shall, in any financing order, provide for a periodic true-up adjustment to water supply charges, which shall be made at least annually and may be made more frequently. The qualifying water utility shall file an advice letter with the commission to implement any true-up adjustment. (h) Water supply charges are water supply property when, and to the extent that, a financing order authorizing the water supply charges has become effective in accordance with this article, and the water supply property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of this article for the period and to the extent provided in the financing order, but in any event until the water rate relief bonds, including all principal, premium, if any, and interest with respect to the bonds and all other financing costs are paid in full. A financing order may provide that the creation of water supply property shall be simultaneous with the sale of the water supply property to a transferee or assignee as provided in the application and the pledge of the water supply property to secure water rate relief bonds. (i) Any surplus water supply charges in excess of the necessary amounts to pay the principal premium, if any, and interest on the water rate relief bonds and all other financing costs shall be credited to customers through the adjustment mechanism described in subdivision (g) or used to prepay or defease water rate relief bonds, so long as this would not result in a recharacterization of the tax, accounting, and other intended characteristics of the financing, including, but not limited to, the following: (1) Avoiding the recognition of debt on the qualifying water utility’s balance sheet for financial accounting and regulatory purposes. (2) Treating the water rate relief bonds as debt of the qualifying water utility or its affiliates for federal income tax purposes. (3) Treating the transfer of the water supply property by the qualifying water utility as a true sale for bankruptcy purposes. (4) Avoiding any adverse impact of the financing on the qualifying water utility’s credit rating. (j) The commission shall, pursuant to its authority in Section 739.8, implement a program to exclude low-income water ratepayers participating in commission-approved, low-income rate assistance programs from the payment of any water supply charge imposed pursuant to this section, if it determines that the exclusion from the charge will have no significant impact on the ability of the financing entity to finance the water supply activity. The commission may also allow the adjustment of the amount of the charge, as necessary, to cover any costs associated with implementation of the exclusion. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  39. 849.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    A qualifying water utility with a financing order must keep bond proceeds in a separate account and may use them only for water supply costs and financing costs.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.2. (a) A qualifying water utility for which a financing order has been issued shall cause the proceeds of any water rate relief bonds issued pursuant to a financing order to be placed in a separate account. A qualifying water utility may use the proceeds of the issuance of water rate relief bonds for paying water supply costs and financing costs and for no other purpose. (b) A financing order may require the qualifying utility to file with the commission a periodic report showing the receipt and disbursement of proceeds of water rate relief bonds. A financing order may authorize the staff of the commission to review and audit the books and records of the qualifying water utility relating to the receipt and disbursement of proceeds of water rate relief bonds. The provisions of this subdivision shall not be construed to limit the authority of the commission to investigate the practices of the qualifying utility or to audit the books and records of the qualifying water utility. (c) A qualifying water utility for which a financing order has been issued shall annually provide to its customers a concise explanation of the water supply charges approved in a financing order, as modified by subsequent issuances of water rate relief bonds authorized under a financing order, if any, and by application of the true-up adjustment mechanism as provided in the financing order. These explanations shall be made after the annual true-up adjustment pursuant to subdivision (g) of Section 849.1 and prior to, or simultaneous with, the effective date of the adjustment, and may be made by bill inserts, Internet Web site information, or other appropriate means. If water rate relief bonds are issued by a public financing entity, the public financing entity, or its trustee or representative, shall provide the information to the qualifying water utility as reasonably requested in order to comply with its obligations under this section. (d) The failure of a qualifying water utility to apply the proceeds of water rate relief bonds in a reasonable, prudent, and appropriate manner or otherwise comply with any provision of this section shall not invalidate, impair, or affect any financing order, water supply property, water supply charges, or water rate relief bonds. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  40. 849.3.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    Financing entities may issue water rate relief bonds if the commission approves; qualifying water utilities may transfer or pledge water supply property under the financing-order terms.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.3. (a) Financing entities may issue water rate relief bonds upon approval by the commission in the financing order. Water rate relief bonds shall be nonrecourse to the credit or any assets of the qualifying water utility, other than the water supply property as specified in the financing order. (b) A qualifying water utility may sell and assign all or portions of its interest in water supply property to an affiliate. A qualifying water utility or its affiliates may sell or assign their interests to one or more financing entities authorized under this article that make that property the basis for issuance of water rate relief bonds to the extent approved in the financing order. A qualifying water utility, its affiliates, or financing entities may pledge and assign water supply property as collateral, directly or indirectly, to the extent approved in the financing order providing for a security interest in the water supply property, in the manner set forth in Section 849.4. In addition, water supply property may be sold or assigned by either of the following: (1) The financing entity or a trustee for the holders of water rate relief bonds or the holder of an ancillary agreement in connection with the exercise of remedies upon a default. (2) A person acquiring the water supply property after a sale or assignment made pursuant to this article. (c) To the extent that any interest in water supply property is sold, assigned, or pledged as collateral, the commission shall authorize the qualifying water utility to contract with the financing entity or entities that it will continue to operate its system to provide service to its customers, will collect water supply charges for the benefit and account of the financing entities and their pledgees, and will account for and remit these amounts to or for the account of the financing entities and their pledgees. Contracting with a financing entity in accordance with that authorization shall not impair or negate the characterization of the sale, assignment, or pledge as an absolute transfer, a true sale, or security interest, as applicable. (d) Water supply property that is specified in a financing order shall constitute an existing, present property right, notwithstanding the fact that the imposition and collection of water supply charges depend on the qualifying water utility continuing to provide water service or continuing to perform its servicing functions relating to the collection of water supply charges or on the level of future water consumption. Water supply property shall exist whether or not the water supply charges have been billed, have accrued, or have been collected and notwithstanding the fact that the value for a security interest in the water supply property, or amount of the water supply property, is dependent on the future provision of service to customers by the qualifying water utility. All water supply property specified in a financing order shall continue to exist until the water supply bonds issued pursuant to a financing order and all other financing costs are paid in full. (e) If a qualifying water utility defaults on any required payment of water supply charge revenues, a court, upon application by an interested party and without limiting any other remedies available to the applying party, shall order the sequestration and payment of the water supply charges, and the proceeds of the water supply charges, for the benefit of bondholders, any assignee and financing entities or their pledgees, and the counterparties to any ancillary agreement. The order shall remain in full force and effect notwithstanding bankruptcy, reorganization, or other insolvency proceedings with respect to the qualifying water utility or any affiliate of the qualifying water utility. (f) Water supply property, water supply charges, and the interests of an assignee, bondholder or financing entity, or any pledgee in water supply property and water supply charges are not subject to setoff, counterclaim, surcharge, or defense by the qualifying utility or any other person or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the qualifying water utility, any affiliate of the qualifying water utility, or any other entity. (g) Notwithstanding Section 1708 or any other provision of law, any requirement under this article, or a financing order, that the commission take action with respect to the subject matter of a financing order, shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exerting functions similar to the commission. The commission shall not have authority to rescind, alter, or amend that requirement in a financing order. The approval by the commission in a financing order of the issuance by the qualifying water utility or a financing entity of water rate relief bonds shall include the approvals, if any, required by Article 5 (commencing with Section 816) and Section 701.5. Section 701.5 shall not be construed to prohibit the issuance of water rate relief bonds upon the terms and conditions approved by the commission in a financing order. Section 851 is not applicable to the transfer or pledge of water supply property, the issuance of water rate relief bonds, or related transactions approved in a financing order. (h) A financing entity issuing water rate relief bonds shall include in its preliminary notice and final report for the water rate relief bonds submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the Government Code, a statement that the water rate relief bonds are being issued pursuant to this section. A financing entity issuing water rate relief bonds shall include in its final report for the water rate relief bonds submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the Government Code, the savings realized by issuing the water rate relief bonds rather than using traditional utility financing mechanisms. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  41. 849.4.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    This section creates and perfects security interests and a statutory lien in water supply property, and gives pledgees enforcement rights after default.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.4. (a) A security interest in water supply property is valid, is enforceable against the pledgor and third parties, is subject to the rights of any third party holding a security interest in the water supply property perfected in the manner described in this section, and attaches when all of the following occur: (1) The commission has issued the financing order authorizing the water supply charges included in the water supply property. (2) Value has been given by the pledgees of the water supply property. (3) The pledgor has signed a security agreement that includes an indenture or financing agreement relating to the issuance of the water rater relief bonds covering the water supply property. (b) A valid and enforceable security interest in water supply property is perfected when it has attached and when a financing statement has been filed in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code, naming the pledgor of the water supply property as “debtor” and identifying the water supply property. Any description of the water supply property shall be sufficient if it refers to the financing order creating the water supply property. A copy of the financing statement shall be filed with the commission by the qualifying water utility that is the pledgor or transferor of the water supply property, and the commission may require the qualifying water utility to make other filings with respect to the security interest in accordance with procedures it may establish, provided that the filings do not affect the perfection of the security interest. (c) A perfected security interest in water supply property is a continuously perfected security interest in all revenues and proceeds arising with respect to the water supply property, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Water supply property shall constitute property for all purposes, including for contracts securing water rate relief bonds, whether or not the revenues and proceeds arising with respect to the water supply property have accrued. (d) Subject to the terms of the security agreement covering the water supply property and the rights of any third party holding a security interest in the water supply property perfected in the manner described in this section, the validity and relative priority of a security interest created under this section is not defeated or adversely affected by the commingling of revenues arising with respect to the water supply property with other funds of the qualifying water utility that is the pledgor or transferor of the water supply property, or by any security interest in a deposit account of that qualifying water utility perfected under Division 9 (commencing with Section 9101) of the Commercial Code into which the revenues are deposited. Subject to the terms of the security agreement, upon compliance with the requirements of subdivision (b) of Section 9312 of the Commercial Code, the pledgees of the water supply property shall have a perfected security interest in all cash and deposit accounts of the qualifying water utility in which revenues arising with respect to the water supply property have been commingled with other funds, but the perfected security interest shall be limited to an amount not greater than the amount of the revenues with respect to the water supply property received by the qualifying water utility within 12 months before either of the following: (1) A default under the security agreement. (2) The institution of insolvency proceedings by or against the qualifying water utility, less payments from the revenues to the pledgees during that 12-month period. (e) If a default occurs under the security agreement covering the water supply property, the pledgees of the water supply property, subject to the terms of the security agreement, shall have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and shall be entitled to foreclose or otherwise enforce their security interest in the water supply property, subject to the rights of any third party holding a prior security interest in the water supply property perfected in the manner provided in this section. In addition, the commission may require, in the financing order creating the water supply property, that in the event of default by the qualifying water utility in payment of revenues arising with respect to the water supply property, the commission and any successor to the commission, upon the application by the pledgees or transferees, including transferees under Section 849.5, of the water supply property, and without limiting any other remedies available to the pledgees or transferees by reason of the default, shall order the sequestration and payment to the pledgees or transferees of revenues arising with respect to the water supply property. Any order shall remain in full force and effect notwithstanding bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the water supply property. Any surplus in excess of amounts necessary to pay principal, premium, if any, interest on the water rate relief bonds, and other financing costs arising under the security agreement, shall be remitted to the debtor or to the pledgor or transferor. (f) Sections 9204 and 9205 of the Commercial Code shall apply to a pledge of water supply property by a qualifying water utility, an affiliate of a qualifying water utility, or a financing entity, other than a public financing entity. (g) (1) This section sets forth the terms by which a consensual security interest shall be created and perfected in the water supply property. Unless otherwise ordered by the commission with respect to any series of water rate relief bonds on or before the issuance of the series, there shall exist a statutory lien as provided in this subdivision. (2) Upon the effective date of the financing order, there shall exist a first priority lien on all water supply property then existing or thereafter arising pursuant to the terms of the financing order. This lien shall automatically arise pursuant to this section without any action on the part of the qualifying water utility, any affiliate of the qualifying water utility, the issuing entity, or any other person. This lien shall secure all obligations, then existing and subsequently arising, to the holders of the water rate relief bonds issued pursuant to the financing order, the trustee or representative for the holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall, upon occurrence of any defaults specified in the financing order, have all rights and remedies of a secured party upon default under Chapter 1 (commencing with Section 9101) of Division 9 of the Commercial Code, and shall be entitled to foreclose or otherwise enforce this statutory lien in the water supply property. This lien shall attach to the water supply property regardless of who shall own, or shall subsequently be determined to own, the water supply property, including any qualifying water utility, affiliate of the qualifying water utility, financing entity, or any other person. This lien shall be valid, perfected, and enforceable against the owner of the water supply property and all third parties upon the effectiveness of the financing order without any further public notice, provided, however, that any person may, but shall not be required to, file a financing statement in accordance with subdivision (b). These financing statements may be protective filings and shall not be evidence of the ownership of the water supply property. (h) Notwithstanding any other provision of law, Section 5451 of the Government Code shall apply to any pledge by the public financing entity of water supply property or other security for any water rate relief bonds issued by a public financing entity. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  42. 849.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    This section says certain transfers of water supply property are treated as absolute transfers or true sales, and sets rules for perfection and priority.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.5. (a) A sale, assignment, or transfer of water supply property by a qualifying water utility to an affiliate or to a financing entity, or by an affiliate of a qualifying water utility or a financing entity to another financing entity, which the parties, in the governing documentation, have expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor’s right, title, and interest, as in a true sale, and not as a pledge or other financing order of the water supply property, other than for federal and state income and franchise tax purposes. (b) The characterization of the sale, assignment, or transfer as an absolute transfer and true sale and the corresponding characterization of the property interest of the purchaser shall not be affected or impaired by, among other things, the occurrence of any of the following: (1) Commingling of water supply charge revenues with other amounts. (2) The retention by the seller of either of the following: (A) A partial or residual interest, including an equity interest, in the water supply property, whether direct or indirect, subordinate or otherwise. (B) The right to recover costs associated with taxes, franchise fees, or license fees imposed on the collection of water supply charge revenues. (3) Any recourse that the purchaser may have against the seller. (4) Any indemnification rights, obligations, or repurchase rights made or provided by the seller. (5) The obligation of the seller to collect water supply charge revenues on behalf of an assignee. (6) The treatment of the sale, assignment, or transfer for tax, financial reporting, or other purposes. (7) Any true-up adjustment of the water supply charges as provided in the financing order. (c) A sale, assignment, or transfer of water supply property shall be deemed perfected against third persons when both of the following occur: (1) The commission issues the financing order authorizing the water supply charges included in the water supply property. (2) An assignment of the water supply property in writing has been executed and delivered to the transferee. (d) As between bona fide assignees of the same right for value without notice, the assignee first filing a financing statement in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the assignor of the water supply property as debtor and identifying the water supply property has priority. Any description of the water supply property shall be sufficient if it refers to the financing order creating the water supply property. A copy of the financing statement shall be filed by the assignee with the commission, and the commission may require the assignor or the assignee to make other filings with respect to the transfer in accordance with procedures it may establish, but these filings shall not affect the perfection of the transfer. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  43. 849.6.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. )

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    A successor to the qualified water utility must take over and carry out all obligations of the qualifying water utility under this article.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.7. Monterey Peninsula Water Supply Securitization Act [849 - 849.6] ( Article 5.7 added by Stats. 2014, Ch. 482, Sec. 6. ) ## 849.6. A successor to the qualified water utility, whether pursuant to bankruptcy, reorganization, or other insolvency proceeding, or pursuant to merger, sale, or transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the qualifying water utility pursuant to this article in the same manner and to the same extent as the qualified water utility, including, but not limited to, collecting and paying to the holders of water rate relief bonds or any financing entities or their pledgees revenues arising with respect to the water supply property sold to the applicable financing entity or pledged to secure water rate relief bonds. (Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.)
  44. 850.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    This section lets certain electrical corporations ask the commission for financing orders to recover specified wildfire-related and undercollection costs through fixed recovery charges, subject to stated conditions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850. (a) This article applies in any of the following circumstances: (1) If an electrical corporation applies to the commission for recovery of costs and expenses related to a catastrophic wildfire and the commission finds some or all of the costs and expenses to be reasonable pursuant to Section 451.1, or for the amount of costs and expenses determined pursuant to subdivision (c) of Section 451.2, then the electrical corporation may file an application requesting the commission to issue a financing order to authorize these costs and expenses to be recovered through fixed recovery charges pursuant to this article. (2) If an electrical corporation submits an application for recovery of costs and expenses related to catastrophic wildfires, including fire risk mitigation capital expenditures identified in subdivision (e) of Section 8386.3 or subdivision (a) of Section 8386.10, in a proceeding to recover costs and expenses in rates and the commission finds that some or all of the costs and expenses identified in the electrical corporation’s application are just and reasonable pursuant to Section 451, the electrical corporation may file an application requesting the commission to issue a financing order to authorize the recovery of those just and reasonable costs and expenses by means of a financing order, with those costs and expenses being recovered through a fixed charge pursuant to this article. This paragraph does not apply for costs and expenses incurred by the electrical corporation after December 31, 2035. (3) Notwithstanding paragraphs (1) and (2), for a catastrophic wildfire that was ignited between January 1, 2025, and the effective date of this paragraph, if a large electrical corporation has settled or finally adjudicated claims and the Wildfire Fund assets are exhausted, the electrical corporation, before filing an application for a just and reasonable determination pursuant to Section 451 or 451.1, may file an application requesting the commission to issue a financing order to authorize the costs and expenses of those settled and finally adjudicated claims that cannot be paid by the Wildfire Fund to be recovered through fixed recovery charges pursuant to this article. For purposes of this paragraph, “large electrical corporation” and “Wildfire Fund assets” have the same meanings as set forth in Section 3280. (4) (A) An electrical corporation may file an application requesting the commission to issue a financing order to authorize the recovery of verified incremental undercollection amounts for calendar year 2020 through fixed recovery charges pursuant to this article, if an electrical corporation’s annual true-up advice letter is accepted and either or both of the following incremental undercollection amounts are verified for calendar year 2020: (i) An incremental undercollection amount equal to the difference between the forecasted amount of billed revenues for that year, based on the authorized sales forecast, and the revenues actually billed by an electrical corporation with respect to all revenue balancing accounts, if the incremental amount as a percent of the forecasted amount of billed revenues for that year is at least 5 percent. (ii) An incremental undercollection amount equal to the residential and small business customer bad debt expense recorded for that year that exceeds the bad debt expense for that year that was adopted by the commission in the general rate case, if the incremental undercollection amount is otherwise eligible for recovery in rates. (B) The incremental undercollection amounts subject to a commission-approved financing order shall be prohibited from being recovered through any other cost recovery application, mechanism, or request by the electrical corporation. (C) The commission shall ensure any costs included in incremental undercollections described in this paragraph and subject to a financing order are just and reasonable consistent with the requirements of subdivision (a) of Section 850.1. (D) In resolving a request for the issuance of a financing order, the commission may assign cost recovery to each customer class based on their contribution to the incremental undercollection described in this paragraph. (b) For purposes of this article, the following terms shall have the following meanings: (1) “Ancillary agreement” means a bond insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other similar agreement or arrangement entered into in connection with the issuance of recovery bonds that is designed to promote the credit quality and marketability of the bonds or to mitigate the risk of an increase in interest rates. (2) “Catastrophic wildfire amounts” means the portion of costs and expenses the commission finds to be just and reasonable pursuant to Section 451.1 or the amount determined pursuant to subdivision (c) of Section 451.2. (3) “Consumer” means any individual, governmental body, trust, business entity, or nonprofit organization that consumes electricity that has been transmitted or distributed by means of electrical transmission or distribution facilities, whether those electrical transmission or distribution facilities are owned by the consumer, the electrical corporation, or any other party. (4) “Financing costs” means the costs to issue, service, repay, or refinance recovery bonds, whether incurred or paid upon issuance of the recovery bonds or over the life of the recovery bonds, if they are approved for recovery by the commission in a financing order. “Financing costs” may include any of the following: (A) Principal, interest, and redemption premiums that are payable on recovery bonds. (B) A payment required under an ancillary agreement. (C) An amount required to fund or replenish reserve accounts or other accounts established under an indenture, ancillary agreement, or other financing document relating to the recovery bonds. (D) Taxes, franchise fees, or license fees imposed on fixed recovery charges. (E) Costs related to issuing and servicing recovery bonds or the application for a financing order, including, without limitation, servicing fees and expenses, trustee fees and expenses, legal fees and expenses, accounting fees, administrative fees, underwriting and placement fees, financial advisory fees, original issue discount, capitalized interest, rating agency fees, and any other related costs that are approved for recovery in the financing order. (F) Other costs as specifically authorized by a financing order. (5) “Financing entity” means the electrical corporation or any subsidiary or affiliate of the electrical corporation that is authorized by the commission to issue recovery bonds or acquire recovery property, or both. (6) “Financing order” means an order of the commission adopted in accordance with this article, which shall include, without limitation, a procedure to require the expeditious approval by the commission of periodic adjustments to fixed recovery charges and to any associated fixed recovery tax amounts included in that financing order to ensure recovery of all recovery costs and the costs associated with the proposed recovery, financing, or refinancing thereof, including the costs of servicing and retiring the recovery bonds contemplated by the financing order. (7) “Fixed recovery charges” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are authorized by the commission in a financing order to recover both of the following: (A) Recovery costs specified in the financing order. (B) The costs of recovering, financing, or refinancing those recovery costs through a plan approved by the commission in the financing order, including the costs of servicing and retiring recovery bonds. (8) “Fixed recovery tax amounts” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are needed to recover federal and State of California income and franchise taxes associated with fixed recovery charges authorized by the commission in a financing order, but are not approved as financing costs financed from proceeds of recovery bonds. (9) “Recovery bonds” means bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, the proceeds of which are used, directly or indirectly, to recover, finance, or refinance recovery costs, and that are directly or indirectly secured by, or payable from, recovery property. (10) “Recovery costs” means any of the following: (A) The catastrophic wildfire amounts or costs pursuant to paragraph (2) of subdivision (a) authorized by the commission in a financing order for recovery. (B) The incremental undercollection amounts that the commission authorizes for recovery in a financing order pursuant to paragraph (3) of subdivision (a). (C) Federal and State of California income and franchise taxes associated with recovery of the amounts pursuant to subparagraph (A) or (B). (D) Financing costs. (E) Professional fees, consultant fees, redemption premiums, tender premiums, and other costs incurred by the electrical corporation in using proceeds of recovery bonds to acquire outstanding securities of the electrical corporation, as authorized by the commission in a financing order. (11) (A) “Recovery property” means the property right created pursuant to this article, including, without limitation, the right, title, and interest of the electrical corporation or its transferee: (i) In and to the fixed recovery charges established pursuant to a financing order, including all rights to obtain adjustments to the fixed recovery charges in accordance with Section 850.1 and the financing order. (ii) To be paid the amount that is determined in a financing order to be the amount that the electrical corporation or its transferee is lawfully entitled to receive pursuant to the provisions of this article and the proceeds thereof, and in and to all revenues, collections, claims, payments, moneys, or proceeds of or arising from the fixed recovery charges that are the subject of a financing order. (B) “Recovery property” shall not include a right to be paid fixed recovery tax amounts. (C) “Recovery property” shall constitute a current property right, notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of the electrical corporation, the electrical corporation performing certain services. (12) (A) “Revenue balancing account” means a balancing account reflecting the balance between the electrical corporation’s authorized revenue requirements relating to the volumetric sale of electricity and billed revenues associated with those sales. A revenue balancing account includes accounts reflecting the balance between the electrical corporation’s authorized distribution base revenue requirements and recorded billed revenues from authorized distribution rates, and accounts reflecting the difference between the amount of the discount provided to consumers enrolled in the California Alternative Rates for Energy (CARE) program and the CARE surcharge charged to non-CARE consumers. (B) “Revenue balancing account” shall not include amounts reflecting the balance between costs and expenses relating to fuel and purchased electricity by the electrical corporation. (13) “Service territory” means the geographical area that the electrical corporation provides with electrical distribution service. (14) “True-up adjustment” means a formulaic adjustment to the fixed recovery charges as they appear on customer bills that is necessary to correct for any overcollection or undercollection of the fixed recovery charges authorized by a financing order and to otherwise ensure the timely and complete payment and recovery of recovery costs over the authorized repayment term. (Amended by Stats. 2025, Ch. 119, Sec. 33. (SB 254) Effective September 19, 2025.)
  45. 850.1.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    The commission may issue financing orders to let an electrical corporation recover certain costs through fixed recovery charges and related tax amounts, subject to statutory conditions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.1. (a) If an electrical corporation files for recovery of recovery costs and the commission finds some or all of those costs and expenses to be just and reasonable pursuant to Section 451 or 451.1, as applicable, or the commission allocates to the ratepayers some or all of those costs and expenses pursuant to subdivision (c) of Section 451.2, the commission may issue a financing order to allow recovery through fixed recovery charges, which would therefore constitute recovery property under this article, and order that any portion of the electrical corporation’s federal and State of California income and franchise taxes associated with those fixed recovery charges and not financed from proceeds of recovery bonds may be recovered through fixed recovery tax amounts. (1) (A) (i) Except as provided in clause (ii), following application by an electrical corporation, the commission shall issue a financing order if the commission determines that both of the following conditions are satisfied: (I) The recovery cost to be reimbursed from the recovery bonds have been found to be just and reasonable pursuant to Section 451 or 451.1, as applicable, or are allocated to the ratepayers pursuant to subdivision (c) of Section 451.2. (II) The issuance of the recovery bonds, including all material terms and conditions of the recovery bonds, including, without limitation, interest rates, rating, amortization redemption, and maturity, and the imposition and collection of fixed recovery charges as set forth in an application satisfy all of the following conditions, as applicable: (ia) They are just and reasonable. (ib) They are consistent with the public interest. (ic) The recovery of recovery costs through the designation of the fixed recovery charges and any associated fixed recovery tax amounts, and the issuance of recovery bonds in connection with the fixed recovery charges, would reduce, to the maximum extent possible, the rates on a present value basis that consumers within the electrical corporation’s service territory would pay as compared to the use of traditional utility financing mechanisms, which shall be calculated using the electrical corporation’s corporate debt and equity in the ratio approved by the commission at the time of the financing order. (ii) (I) Notwithstanding clause (i), following application by an electrical corporation pursuant to paragraph (3) of subdivision (a) of Section 850, the commission shall issue a financing order if the commission makes a determination that the conditions set forth in subclause (II) of clause (i) are satisfied. The issuance of recovery bonds pursuant to this clause is deemed to be consistent with the public interest. However, the commission may authorize recovery through fixed recovery charges of less than the full amount sought in the application if the commission determines that the recovery of the full amount of costs and expenses through a financing order pursuant to this subclause would not be cost effective for ratepayers. (II) If the commission subsequently determines any costs or expenses included in the recovery bonds authorized by a financing order issued pursuant to subclause (i) are not just and reasonable pursuant to Section 451 or 451.1, the commission shall order the electrical corporation to credit ratepayers the disallowed costs and expenses plus any costs and expenses resulting from the inclusion of the disallowed costs and expenses in the recovery bonds with the credit provided over a period that matches the remaining duration of the bonds. (B) The electrical corporation may request the determination specified in subparagraph (A) by the commission in a separate proceeding or in an existing proceeding or both. If the commission makes the determination specified in subparagraph (A), the commission shall establish, as part of the financing order, a procedure for the electrical corporation to submit applications from time to time to request the issuance of additional financing orders designating fixed recovery charges and any associated fixed recovery tax amounts as recoverable. The electrical corporation may submit an application with respect to recovery costs that an electrical corporation (i) has paid, (ii) has an existing legal obligation to pay, or (iii) would be obligated to pay pursuant to an executed settlement agreement. The commission shall, within 180 days of the filing of that application, issue a financing order, which may take the form of a resolution, if the commission determines that the amounts identified in the application are recovery costs. (2) Fixed recovery charges and any associated fixed recovery tax amounts shall be imposed only on existing and future consumers in the service territory. Consumers within the service territory shall continue to pay fixed recovery charges and any associated fixed recovery tax amounts until the recovery bonds and associated financing costs are paid in full by the financing entity. (3) An electrical corporation may exercise the same rights and remedies under its tariff and applicable law and regulation based upon a consumer’s nonpayment of fixed recovery charges and any associated fixed recovery tax as it could for a consumer’s failure to pay any other charge payable to that electrical corporation. (b) The commission may establish in a financing order an effective mechanism that ensures recovery of recovery costs through nonbypassable fixed recovery charges and any associated fixed recovery tax amounts from existing and future consumers in the service territory, and those consumers shall be required to pay those charges until the recovery bonds and all associated financing costs are paid in full by the financing entity, at which time those charges shall be terminated. Fixed recovery charges shall be irrevocable, notwithstanding the true-up adjustment pursuant to subdivision (g). (c) Recovery bonds authorized by the commission’s financing orders may be issued in one or more series on or before December 31, 2035. (d) The commission shall issue financing orders in accordance with this article to facilitate the recovery, financing, or refinancing of recovery costs. A financing order may be adopted only upon the application of the electrical corporation and shall become effective in accordance with its terms only after the electrical corporation files with the commission the electrical corporation’s written consent to all terms and conditions of the financing order. A financing order may specify how amounts collected from a consumer shall be allocated between fixed recovery charges, any associated fixed recovery tax amounts, and other charges. (e) Notwithstanding Section 455.5 or 1708, or any other law, and except as otherwise provided in subdivision (g), with respect to recovery property that has been made the basis for the issuance of recovery bonds and with respect to any associated fixed recovery tax amounts, the financing order, the fixed recovery charges, and any associated fixed recovery tax amounts shall be irrevocable. The commission shall not, either by rescinding, altering, or amending the financing order or otherwise, revalue or revise for ratemaking purposes the recovery costs or the costs of recovering, financing, or refinancing the recovery costs, in any way reduce or impair the value of recovery property or of the right to receive any associated fixed recovery tax amounts either directly or indirectly by taking fixed recovery charges or any associated fixed recovery tax amounts into account when setting other rates for the electrical corporation or when setting charges for the Department of Water Resources. The amount of revenues shall not be subject to reduction, impairment, postponement, or termination. The State of California does hereby pledge and agree with the electrical corporation, owners of recovery property, financing entities, and holders of recovery bonds that the state shall neither limit nor alter, except as otherwise provided with respect to the true-up adjustment of the fixed recovery charges pursuant to subdivision (i), the fixed recovery charges, any associated fixed recovery tax amounts, recovery property, financing orders, or any rights under a financing order until the recovery bonds, together with the interest on the recovery bonds and associated financing costs, are fully paid and discharged, and any associated fixed recovery tax amounts have been satisfied or, in the alternative, have been refinanced through an additional issue of recovery bonds, provided that nothing contained in this section shall preclude the limitation or alteration if and when adequate provision shall be made by law for the protection of the electrical corporation and of owners and holders of the recovery bonds. The financing entity is authorized to include this pledge and undertaking for the state in these recovery bonds. When setting other rates for the electrical corporation, nothing in this subdivision shall prevent the commission from taking into account either of the following: (1) Any collection of fixed recovery charges in excess of amounts actually required to pay recovery costs financed or refinanced by recovery bonds. (2) Any collection of fixed recovery tax amounts in excess of amounts actually required to pay federal and State of California income and franchise taxes associated with fixed recovery charges, provided that this would not result in a recharacterization of the tax, accounting, and other intended characteristics of the financing, including, but not limited to, either of the following: (A) Treating the recovery bonds as debt of the electrical corporation or its affiliates for federal income tax purposes. (B) Treating the transfer of the recovery property by the electrical corporation as a true sale for bankruptcy purposes. (f) (1) Neither financing orders nor recovery bonds issued under this article shall constitute a debt or liability of the state or of any political subdivision thereof, nor shall they constitute a pledge of the full faith and credit of the state or any of its political subdivisions, but are payable solely from the funds provided therefor under this article and shall be consistent with Sections 1 and 18 of Article XVI of the California Constitution. All recovery bonds shall contain on the face thereof a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of, or interest on, this bond.” (2) The issuance of recovery bonds under this article shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation therefor or to make any appropriation for their payment. (g) The commission shall establish procedures for the expeditious processing of an application for a financing order, which shall provide for the approval or disapproval of the application within 120 days of the application. Any fixed recovery charge authorized by a financing order shall appear on consumer bills. The commission shall, in any financing order, provide for a procedure for periodic true-up adjustments to fixed recovery charges, which shall be made at least annually and may be made more frequently. The electrical corporation shall file an application with the commission to implement any true-up adjustment. (h) Fixed recovery charges are recovery property when, and to the extent that, a financing order authorizing the fixed recovery charges has become effective in accordance with this article, and the recovery property shall thereafter continuously exist as property for all purposes, and all of the rights and privileges relating to that property accorded by this article shall continuously exist for the period and to the extent provided in the financing order, but in any event until the recovery bonds are paid in full, including all principal, premiums, if any, and interest with respect to the recovery bonds, and all associated financing costs are paid in full. A financing order may provide that the creation of recovery property shall be simultaneous with the sale of the recovery property to a transferee or assignee as provided in the application of the pledge of the recovery property to secure the recovery bonds. (i) Recovery costs shall not be imposed upon customers participating in the California Alternative Rates for Energy or Family Electric Rate Assistance programs discount pursuant to Section 739.1. (j) Any successor to a financing entity shall be bound by the requirements of this article and shall perform and satisfy all obligations of, and have the same rights under a financing order as and to the same extent as, the financing entity, including the obligation to collect and pay energy transition revenues to persons entitled to receive the revenues. (k) This article and any financing order made pursuant to this article do not amend, reduce, modify, or otherwise affect the right of the Department of Water Resources to recover its revenue requirements and to receive the charges that it is to recover and receive pursuant to Division 27 (commencing with Section 80000) and Division 28 (commencing with Section 80500) of the Water Code, or pursuant to any agreement entered into by the commission and the Department of Water Resources pursuant to the applicable division. (Amended by Stats. 2025, Ch. 119, Sec. 34. (SB 254) Effective September 19, 2025.)
  46. 850.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    This section lets a financing entity issue recovery bonds if the commission approves a financing order, and it sets rules for selling, assigning, pledging, collecting, and remitting recovery property and fixed recovery charges.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.2. (a) The financing entity may issue recovery bonds upon approval by the commission in a financing order. Recovery bonds shall be nonrecourse to the credit or any assets of the electrical corporation, other than the recovery property as specified in that financing order. (b) The electrical corporation may sell and assign all or portions of its interest in recovery property to one or more financing entities that make that recovery property the basis for issuance of recovery bonds, to the extent approved in a financing order. The electrical corporation or financing entity may pledge recovery property as collateral, directly or indirectly, for recovery bonds to the extent approved in the pertinent financing orders providing for a security interest in the recovery property, in the manner set forth in Section 850.3. In addition, recovery property may be sold or assigned by either of the following: (1) the financing entity or a trustee for the holders of recovery bonds or the holders of an ancillary agreement in connection with the exercise of remedies upon a default, or (2) any person acquiring the recovery property after a sale or assignment pursuant to this article. (c) To the extent that any interest in recovery property is sold, assigned, or is pledged as collateral pursuant to subdivision (b), the commission shall authorize the electrical corporation to contract with the financing entity that it will continue to operate its system to provide service to consumers within its service territory, will collect amounts in respect of the fixed recovery charges for the benefit and account of the financing entity, and will account for and remit these amounts to or for the account of the financing entity. Contracting with the financing entity in accordance with that authorization shall not impair or negate the characterization of the sale, assignment, or pledge as an absolute transfer, a true sale, or a security interest, as applicable. To the extent that billing, collection, and other related services with respect to the provision of electric service are provided to a consumer by any person or entity other than the electrical corporation in whose service territory the consumer is located, that person or entity shall collect the fixed recovery charges and any associated fixed recovery tax amounts from the consumer for the benefit and account of the electrical corporation or financing entity with the associated revenues remitted solely for the benefit and repayment of the recovery bonds and associated financing costs as a condition to the provision of electric service to that consumer. Each financing order shall impose terms and conditions, consistent with the purposes and objectives of this article, on any person or entity responsible for billing, collection, and other related services, including, without limitation, collection of the fixed recovery charges and any associated fixed recovery tax amounts, that are the subject of the financing order. (d) Recovery property that is specified in a financing order shall constitute an existing, present property right, notwithstanding the fact that the imposition and collection of fixed recovery charges depend on the electrical corporation continuing to provide electricity service or continuing to perform its servicing functions relating to the collection of fixed recovery charges or on the level of future electricity consumption. Recovery property shall exist whether or not the fixed recovery charges have been billed, have accrued, or have been collected and notwithstanding the fact that the value for a security interest in the recovery property, or amount of the recovery property, is dependent on the future provision of service to consumers. All recovery property specified in a financing order shall continue to exist until the recovery bonds issued pursuant to a financing order and all associated financing costs are paid in full. (e) Recovery property, fixed recovery charges, and the interests of an assignee, bondholder or financing entity, or any pledgee in recovery property and fixed recovery charges are not subject to setoff, counterclaim, surcharge, recoupment, or defense by the electrical corporation or any other person or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the electrical corporation, any affiliate of the electrical corporation, or any other entity. (f) Notwithstanding Section 1708 or any other law, any requirement under this article or a financing order that the commission take action with respect to the subject matter of a financing order shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exercising functions similar to the commission, and the commission shall have no authority to rescind, alter, or amend that requirement in a financing order. The approval by the commission in a financing order of the issuance by the electrical corporation or a financing entity of recovery bonds shall include the approvals, if any, as may be required by Article 5 (commencing with Section 816) and Section 701.5. Nothing in Section 701.5 shall be construed to prohibit the issuance of recovery bonds upon the terms and conditions as may be approved by the commission in a financing order. Section 851 is not applicable to the transfer or pledge of recovery property, the issuance of recovery bonds, or related transactions approved in a financing order. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  47. 850.3.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    This section says when recovery-property security interests and statutory liens become valid, perfected, and enforceable, and what pledgees may do after default.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.3. (a) A security interest in recovery property is valid, is enforceable against the pledgor and third parties, is subject to the rights of any third parties holding security interests in the recovery property perfected in the manner described in this section, and attaches when all of the following have taken place: (1) The commission has issued a financing order authorizing the fixed recovery charges included in the recovery property. (2) Value has been given by the pledgees of the recovery property. (3) The pledgor has signed a security agreement covering the recovery property. (b) A valid and enforceable security interest in recovery property is perfected when it has attached and when a financing statement has been filed in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the pledgor of the recovery property as “debtor” and identifying the recovery property. Any description of the recovery property shall be sufficient if it refers to the financing order creating the recovery property. A copy of the financing statement shall be filed with the commission by the electrical corporation that is the pledgor or transferor of the recovery property, and the commission may require the electrical corporation to make other filings with respect to the security interest in accordance with procedures it may establish, provided that the filings shall not affect the perfection of the security interest. (c) A perfected security interest in recovery property is a continuously perfected security interest in all recovery property revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Recovery property shall constitute property for all purposes, including for contracts securing recovery bonds, whether or not the recovery property revenues and proceeds have accrued. (d) Subject to the terms of the security agreement covering the recovery property and the rights of any third parties holding security interests in the recovery property perfected in the manner described in this section, the validity and relative priority of a security interest created under this section is not defeated or adversely affected by the commingling of revenues arising with respect to the recovery property with other funds of the electrical corporation that is the pledgor or transferor of the recovery property, or by any security interest in a deposit account of that electrical corporation perfected under Division 9 (commencing with Section 9101) of the Commercial Code into which the revenues are deposited. Subject to the terms of the security agreement, upon compliance with the requirements of paragraph (1) of subdivision (b) of Section 9312 of the Commercial Code, the pledgees of the recovery property shall have a perfected security interest in all cash and deposit accounts of the electrical corporation in which recovery property revenues have been commingled with other funds, but the perfected security interest shall be limited to an amount not greater than the amount of the recovery property revenues received by the electrical corporation within 12 months before (1) any default under the security agreement or (2) the institution of insolvency proceedings by or against the electrical corporation, less payments from the revenues to the pledgees during that 12-month period. (e) If default occurs under the security agreement covering the recovery property, the pledgees of the recovery property, subject to the terms of the security agreement, shall have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and are entitled to foreclose or otherwise enforce their security interest in the recovery property, subject to the rights of any third parties holding prior security interests in the recovery property perfected in the manner provided in this section. In addition, the commission may require in the financing order creating the recovery property that, in the event of default by the electrical corporation in payment of recovery property revenues, the commission and any successor thereto, upon the application by the pledgees or transferees, including transferees under Section 850.4, of the recovery property, and without limiting any other remedies available to the pledgees or transferees by reason of the default, shall order the sequestration and payment to the pledgees or transferees of recovery property revenues. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the recovery property. Any surplus in excess of amounts necessary to pay principal, premiums, if any, interest, costs, and arrearages on the recovery bonds, and associated financing costs arising under the security agreement, shall be remitted to the debtor or to the pledgor or transferor. (f) Section 5451 of the Government Code shall not apply to any pledge of recovery property by a financing entity. Sections 9204 and 9205 of the Commercial Code apply to a pledge of recovery property by the electrical corporation, an affiliate of the electrical corporation, or a financing entity. (g) This section sets forth the terms by which a consensual security interest shall be created and perfected in the recovery property. Unless otherwise ordered by the commission with respect to any series of recovery bonds on or prior to the issuance of the series, there shall exist a statutory lien as provided in this subdivision. Upon the effective date of the financing order, there shall exist a first priority lien on all recovery property then existing or thereafter arising pursuant to the terms of the financing order. This lien shall arise by operation of this section automatically without any action on the part of the electrical corporation, any affiliate thereof, the financing entity, or any other person. This lien shall secure all obligations, then existing or subsequently arising, to the holders of the recovery bonds issued pursuant to the financing order, the trustee or representative for the holders, and any other entity specified in the financing order. The persons for whose benefit this lien is established shall, upon the occurrence of any defaults specified in the financing order, have all rights and remedies of a secured party upon default under Division 9 (commencing with Section 9101) of the Commercial Code, and are entitled to foreclose or otherwise enforce this statutory lien in the recovery property. This lien attaches to the recovery property regardless of who owns, or is subsequently determined to own, the recovery property, including the electrical corporation, any affiliate thereof, the financing entity, or any other person. This lien shall be valid, perfected, and enforceable against the owner of the recovery property and all third parties upon the effectiveness of the financing order without any further public notice; provided, however, that any person may, but is not required to, file a financing statement in accordance with subdivision (b). Financing statements so filed may be “protective filings” and are not evidence of the ownership of the recovery property. A perfected statutory lien in recovery property is a continuously perfected lien in all recovery property revenues and proceeds, whether or not the revenues or proceeds have accrued. Conflicting liens shall rank according to priority in time of perfection. Recovery property shall constitute property for all purposes, including for contracts securing recovery bonds, whether or not the recovery property revenues and proceeds have accrued. In addition, the commission may require, in the financing order creating the recovery property, that, in the event of default by the electrical corporation in the payment of recovery property revenues, the commission and any successor thereto, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of recovery property revenues. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor. Any surplus in excess of amounts necessary to pay principal, premiums, if any, interest, costs, and arrearages on the recovery bonds, and other costs arising in connection with the documents governing the recovery bonds, shall be remitted to the debtor. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  48. 850.4.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    This section treats certain approved transfers of recovery property as absolute transfers, not pledges or financing, and sets rules for perfection and priority.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.4. (a) A transfer of recovery property by the electrical corporation to an affiliate or to a financing entity, or by an affiliate of the electrical corporation or a financing entity to another financing entity, which the parties in the governing documentation have expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor’s right, title, and interest, as in a true sale, and not as a pledge or other financing, of the recovery property, other than for federal and state income and franchise tax purposes. (b) The characterization of the sale, assignment, or transfer as an absolute transfer and true sale and the corresponding characterization of the property interest of the purchaser shall not be affected or impaired by, among other things, the occurrence of any of the following: (1) Commingling of fixed recovery charge revenues with other amounts. (2) The retention by the seller of either of the following: (A) A partial or residual interest, including an equity interest, in the financing entity or the recovery property, whether direct or indirect, subordinate or otherwise. (B) The right to recover costs associated with taxes, franchise fees, or license fees imposed on the collection of fixed recovery charges. (3) Any recourse that the purchaser may have against the seller. (4) Any indemnification rights, obligations, or repurchase rights made or provided by the seller. (5) The obligation of the seller to collect fixed recovery charges on behalf of an assignee. (6) The treatment of the sale, assignment, or transfer for tax, financial reporting, or other purposes. (7) Any true-up adjustment of the fixed recovery charges as provided in the financing order. (c) A transfer of recovery property shall be deemed perfected against third persons when both of the following occur: (1) The commission issues the financing order authorizing the fixed recovery charges included in the recovery property. (2) An assignment of the recovery property in writing has been executed and delivered to the transferee. (d) As between bona fide assignees of the same right for value without notice, the assignee first filing a financing statement in accordance with Chapter 5 (commencing with Section 9501) of Division 9 of the Commercial Code naming the assignor of the recovery property as debtor and identifying the recovery property has priority. Any description of the recovery property shall be sufficient if it refers to the financing order creating the recovery property. A copy of the financing statement shall be filed by the assignee with the commission, and the commission may require the assignor or the assignee to make other filings with respect to the transfer in accordance with procedures it may establish, but these filings shall not affect the perfection of the transfer. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  49. 850.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    A successor to the electrical corporation must carry out the corporation’s obligations under this article and may receive fixed recovery tax amounts payable to the corporation.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.5. Any successor to the electrical corporation, whether pursuant to any bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or transfer, by operation of law, or otherwise, shall perform and satisfy all obligations of the electrical corporation pursuant to this article in the same manner and to the same extent as the electrical corporation, including, but not limited to, collecting and paying to the holders of recovery bonds, or their representatives, or the applicable financing entity revenues arising with respect to the recovery property sold to the applicable financing entity or pledged to secure recovery bonds. Any successor to the electrical corporation is entitled to receive any fixed recovery tax amounts otherwise payable to the electrical corporation. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  50. 850.6.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    The commission’s authority to issue financing orders under Section 850.1 expires on December 31, 2035.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.6. The authority of the commission to issue financing orders pursuant to Section 850.1 shall expire on December 31, 2035. The expiration of the authority shall have no effect upon financing orders adopted by the commission pursuant to this article or any recovery property arising therefrom, or upon the charges authorized to be levied thereunder, or the rights, interests, and obligations of the electrical corporation or a financing entity or holders of recovery bonds pursuant to the financing order, or the authority of the commission to monitor, supervise, or take further action with respect to the order in accordance with the terms of this article and of the order. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  51. 850.7.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    If an electrical corporation gets reimbursements after a financing order, it must credit customers with the net after-tax amounts, and the commission sets the method. The commission also may not change the listed wildfire financing amounts or related order terms, and no setoff or similar defense is allowed against the recovery interests in related insolvency proceedings.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.7. (a) Notwithstanding subdivision (e) of Section 850.1, if, subsequent to the issuance of a financing order, an electrical corporation receives additional insurance proceeds, tax benefits, or other amounts that reimburse the electrical corporation for costs associated with catastrophic wildfire amounts included in the recovery costs addressed in that financing order, the electrical corporation shall credit customers, in a manner to be determined by the commission, with the net after tax amounts of those reimbursements, but the commission may not adjust, amend, or modify the catastrophic wildfire amounts, fixed recovery charges, the fixed recovery tax amounts, the financing order, recovery costs, the recovery property, or the recovery bonds. (b) Nothing in this section shall be construed to permit setoff, counterclaim, surcharge, recoupment, or defense by the electrical corporation or any other person, or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the electrical corporation, any affiliate of the electrical corporation, or any other entity, against the recovery property, the fixed recovery charges, or the interests of an assignee, bondholder, or financing entity, or any pledgee in recovery property or fixed recovery charges. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  52. 850.8.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. )

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    This article does not affect any civil action or proceeding.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 5.8. Catastrophic Wildfire and Ratepayer Protection Financing [850 - 850.8] ( Heading of Article 5.8 amended by Stats. 2019, Ch. 79, Sec. 8. ) ## 850.8. This article shall not affect any civil action or proceeding. (Added by Stats. 2018, Ch. 626, Sec. 32. (SB 901) Effective January 1, 2019.)
  53. 851.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    A public utility generally needs commission authorization before transferring or encumbering utility property, and some transactions require an advice letter or order.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 851. (a) Except as provided in subdivision (c), a public utility, other than a common carrier by railroad subject to Part A of the Interstate Commerce Act (49 U.S.C. Sec. 10101 et seq.), shall not sell, lease, assign, mortgage, or otherwise dispose of, or encumber the whole or any part of, its railroad, street railroad, line, plant, system, or other property necessary or useful in the performance of its duties to the public, or any franchise or permit or any right thereunder, or by any means whatsoever, directly or indirectly, merge or consolidate its railroad, street railroad, line, plant, system, or other property, or franchises or permits or any part thereof, without first having either secured an order from the commission authorizing it to do so for qualified transactions valued above five million dollars ($5,000,000), or for qualified transactions valued at five million dollars ($5,000,000) or less, filed an advice letter and obtained approval from the commission authorizing it to do so. If the advice letter is uncontested, approval may be given by the executive director or the director of the division of the commission having regulatory jurisdiction over the utility. The commission shall determine the types of transactions valued at five million dollars ($5,000,000) or less, that qualify for advice letter handling. For a qualified transaction valued at five million dollars ($5,000,000) or less, the commission may designate a procedure different than the advice letter procedure if it determines that the transaction warrants a more comprehensive review. Absent protest or incomplete documentation, the commission shall approve or deny the advice letter within 120 days of its filing by the applicant public utility. The commission shall reject any advice letter that seeks to circumvent the five-million-dollar ($5,000,000) threshold by dividing a single asset with a value of more than five million dollars ($5,000,000) into component parts, each valued at less than five million dollars ($5,000,000). Every sale, lease, assignment, mortgage, disposition, encumbrance, merger, or consolidation made other than in accordance with the advice letter and approval from the commission authorizing it is void. The permission and approval of the commission to the exercise of a franchise or permit under Article 1 (commencing with Section 1001) of Chapter 5, or the sale, lease, assignment, mortgage, or other disposition or encumbrance of a franchise or permit under this article, shall not revive or validate any lapsed or invalid franchise or permit, or enlarge or add to the powers or privileges contained in the grant of any franchise or permit, or waive any forfeiture. (b) (1) Subdivision (a) shall apply to any transaction described in subparagraph (F) of paragraph (1) of subdivision (b) of Section 854.2. (2) For any transaction described in subparagraph (F) of paragraph (1) of subdivision (b) of Section 854.2, as part of its review under subdivision (a), the commission shall determine whether the transaction is fair and reasonable to affected public utility employees, including both union and nonunion employees. (c) (1) Subdivision (a) shall not apply to an easement, or a change to an easement, that has a ratepayer financial impact valued at one hundred thousand dollars ($100,000) or less if a public utility that is a party to the qualified transaction has gross annual California revenues of five hundred million dollars ($500,000,000) or more. (2) On January 1, 2030, and every five years thereafter, the threshold values specified in paragraph (1) shall be adjusted to reflect any increase in inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Bureau of Labor Statistics. (3) Each public utility shall annually file a Tier 1 advice letter with the commission by April 1, with a report of all transactions performed pursuant to paragraph (1), enumerated by date, value, location, and party. (d) This section does not prevent the sale, lease, encumbrance, or other disposition by any public utility of property that is not necessary or useful in the performance of its duties to the public, and any disposition of property by a public utility shall be conclusively presumed to be of property that is not useful or necessary in the performance of its duties to the public, as to any purchaser, lessee, or encumbrancer dealing with that property in good faith for value, provided that this section does not apply to the interchange of equipment in the regular course of transportation between connecting common carriers. (Amended by Stats. 2025, Ch. 150, Sec. 1. (AB 420) Effective January 1, 2026.)
  54. 852.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    Public utilities and related controlling entities may not buy or hold stock in another California public utility unless first authorized by the commission; some low-risk categories can be exempted by commission rule or order.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 852. No public utility, and no subsidiary or affiliate of, or corporation holding a controlling interest in, a public utility, shall purchase or acquire, take or hold, any part of the capital stock of any other public utility, organized or existing under or by virtue of the laws of this state, without having been first authorized to do so by the commission; provided, however, that the commission may establish by order or rule categories of stock acquisitions which it determines will not be harmful to the public interest, and purchases within those categories are exempt from this section. Every assignment, transfer, contract, or agreement for assignment or transfer of any stock by or through any person or corporation to any corporation or otherwise in violation of any of the provisions of this article is void and of no effect, and no such transfer shall be made on the books of any public utility. Nothing in this section prevents the holding of stock previously lawfully acquired. (Amended by Stats. 1989, Ch. 390, Sec. 1.)
  55. 853.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    This section limits when the article applies to utility-related persons and gives the commission power to exempt utilities and set protective conditions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 853. (a) This article does not apply to any person or corporation which transacts no business subject to regulation under this part, except performing services or delivering commodities for or to public utilities or municipal corporations or other public agencies primarily for resale or use in serving the public or any portion thereof, but shall apply to any public utility, and any subsidiary or affiliate of, or corporation holding a controlling interest in, a public utility, if the commission finds, in a proceeding to which the public utility is or may become a party, that the application of this article is required by the public interest. (b) The commission may from time to time by order or rule, and subject to those terms and conditions as may be prescribed therein, exempt any public utility or class of public utility from this article if it finds that the application thereof with respect to the public utility or class of public utility is not necessary in the public interest. The commission may establish rules or impose requirements deemed necessary to protect the interest of the customers or subscribers of the public utility or class of public utility exempted under this subdivision. These rules or requirements may include, but are not limited to, notification of a proposed sale or transfer of assets or stock and provision for refunds or credits to customers or subscribers. (c) The provisions of Sections 851 and 854 that prohibit any assignment, acquisition, or change of control without advance authorization from the commission, do not apply to the transfer of the ownership interest in a water utility, with 10,000 or fewer service connections, from a decedent to a member of the decedent’s family in the manner provided in Section 240 of the Probate Code or by a will, trust, or other instrument. (d) It is the intent of the Legislature that transactions with monetary values that materially impact a public utility’s rate base should not qualify for expedited advice letter treatment pursuant to this article. It is the further intent of the Legislature that the commission maintain all of its oversight and review responsibilities subject to the California Environmental Quality Act, and that public utility transactions that jurisdictionally require a review by the commission, as the lead agency, under the act should not qualify for expedited advice letter treatment pursuant to this article. An advice letter may be filed for transactions by the public utility if the lead agency has completed the appropriate review under the California Environmental Quality Act for the transaction, and the commission is the responsible agency under the act. The advice letter shall be subject to approval by resolution voted upon by the commission. (Amended by Stats. 2009, Ch. 370, Sec. 2. (AB 698) Effective January 1, 2010.)
  56. 853.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    Certain small water or sewer utility transactions need commission approval before closing.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 853.2. For a water or sewer system corporation or an entity merging with or acquiring control of a water or sewer system corporation with less than 2,000 service connections, the following shall apply to transactions valued at five million dollars ($5,000,000) or less, notwithstanding Sections 851 and 854: (a) (1) A water or sewer system corporation or an entity merging with or acquiring control of a water or sewer system corporation shall receive the commission’s approval before entering into a transaction that would otherwise be subject to Section 851 or 854. (2) If a water or sewer system corporation or an entity merging with or acquiring control of a water or sewer system corporation fails to receive the commission’s approval pursuant to paragraph (1), the transaction is voidable by the commission until the commission does either of the following: (A) Retroactively approves the transaction upon a determination that the transaction is in the best interests of both the corporation and its ratepayers. (B) Conditionally approves the transaction, subject to the fulfillment of specified conditions that would ensure that the transaction is in the best interests of both the corporation and its ratepayers. (b) The commission may delegate the authority to make the determinations described in subdivision (a) to the director of the division that investigates water and sewer system service quality issues and analyzes and processes utility rate change requests. (Added by Stats. 2016, Ch. 631, Sec. 1. (SB 1112) Effective September 25, 2016.)
  57. 854.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    A person or corporation may not merge, acquire, or control a California public utility without first getting commission authorization.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 854. (a) A person or corporation, whether or not organized under the laws of this state, shall not directly or indirectly merge, acquire, or control, including pursuant to a change in control as described in subparagraphs (D) or (E) of paragraph (1) of subdivision (b) of Section 854.2, any public utility organized and doing business in this state without first securing authorization to do so from the commission. The commission may establish, by order or rule, the definitions of what constitutes a merger, acquisition, or control activity that is subject to this section. Any merger, acquisition, or control without that prior authorization is void. A public utility organized and doing business under the laws of this state, and a subsidiary or affiliate of, or corporation holding a controlling interest in, a public utility, shall not aid or abet any violation of this section. (b) Before authorizing the merger, acquisition, or control of any electrical, gas, or telephone corporation organized and doing business in this state, if any utility that is a party to the proposed transaction has gross annual California revenues exceeding five hundred million dollars ($500,000,000), the commission shall find that the proposal does all of the following: (1) Provide short-term and long-term economic benefits to ratepayers. (2) Equitably allocate, where the commission has ratemaking authority, the total short-term and long-term forecasted economic benefits, as determined by the commission, of the proposed merger, acquisition, or control, between shareholders and ratepayers. Ratepayers shall receive not less than 50 percent of those benefits. (3) Not adversely affect competition. In making this finding, the commission shall request an advisory opinion from the Attorney General regarding whether competition will be adversely affected and what mitigation measures could be adopted to avoid this result. (4) For an electrical or gas corporation, ensure the corporation will have an adequate workforce to maintain the safe and reliable operation of the utility assets. (c) Before authorizing the merger, acquisition, or control of any electrical, gas, or telephone corporation organized and doing business in this state, if any entity that is a party to the proposed transaction has gross annual California revenues exceeding five hundred million dollars ($500,000,000), the commission shall consider each of the criteria listed in paragraphs (1) to (8), inclusive, and find, on balance, that the merger, acquisition, or control proposal is in the public interest. (1) Maintain or improve the financial condition of the resulting public utility doing business in the state. (2) Maintain or improve the quality of service to public utility ratepayers in the state. (3) Maintain or improve the quality of management of the resulting public utility doing business in the state. (4) Be fair and reasonable to affected public utility employees, including both union and nonunion employees. (5) Be fair and reasonable to the majority of all affected public utility shareholders. (6) Be beneficial on an overall basis to state and local economies and to the communities in the area served by the resulting public utility. (7) Preserve the jurisdiction of the commission and the capacity of the commission to effectively regulate and audit public utility operations in the state. (8) Provide mitigation measures to prevent significant adverse consequences that may result. (d) (1) Before authorizing the merger, acquisition, or change in control of any electrical or gas corporation organized and doing business in this state, if any entity that is a party to the proposed transaction has gross annual California revenues exceeding four hundred million dollars ($400,000,000), the commission shall consider the elements in subparagraphs (A) to (G), inclusive, and find, on balance, that the proposal is in the public interest. (A) A safety management system. (B) A comprehensive safety plan that includes a systemwide strategic approach for the safety of both employees and the public. (C) Plans to maintain or improve the records of the electrical corporation’s electric plant or gas corporation’s gas plant, including necessary audits to update incorrect or incomplete records of the electrical or gas corporation. For purposes of this subparagraph, “records” shall include, but not be limited to, locations, depth, age, maintenance and testing history, maps, surveys, patrols, and violation history of the electrical corporation’s electric plant or gas corporation’s gas plant. (D) Metrics to measure safety that are complete and drive appropriate behavior. (E) An appropriate evaluation of safety expertise in the list of qualifications used in selecting corporate leadership. (F) Active audits for safety controls. (G) A nonpunitive system for reporting potential safety incidents to the commission to facilitate the identification of accident precursors by persons familiar with the operations of the electrical or gas corporation, including, but not limited to, employees and contractors of the electrical or gas corporation, and the collection, analysis, and dissemination of unbiased safety information. An employee of, or the employee of a contractor performing work for, the electrical or gas corporation shall not be subject to demotion, discharge, or any other form of retaliation or discrimination for participating in the potential safety incident reporting system established pursuant to this subdivision. (2) The commission may delay the implementation of this subdivision until July 1, 2021, or until the commission adopts rules implementing the requirements of this subdivision, whichever is earlier. (e) When reviewing a merger, acquisition, or control proposal, the commission shall consider reasonable options to the proposal recommended by other parties, including no new merger, acquisition, or control, to determine whether comparable short-term and long-term economic savings can be achieved through other means while avoiding the possible adverse consequences of the proposal. (f) The person or corporation seeking acquisition or control of a public utility organized and doing business in this state shall have, before the commission, the burden of proving by a preponderance of the evidence that the requirements of subdivisions (b), (c), and (d) are met. (g) In determining whether an acquiring utility has gross annual revenues exceeding the amount specified in subdivisions (b) and (c), the revenues of an affiliate of that utility shall not be considered unless the affiliate was used to effect the merger, acquisition, or control. (h) Paragraphs (1) and (2) of subdivision (b) do not apply to the formation of a holding company. (i) For purposes of paragraphs (1) and (2) of subdivision (b), the Legislature does not intend to include acquisitions or changes in control that are mandated by either the commission or the Legislature as a result of, or in response to, any electric industry restructuring. However, the value of an acquisition or change in control may be used by the commission in determining the costs or benefits attributable to any electric industry restructuring and for allocating those costs or benefits for collection in rates. (Amended by Stats. 2021, Ch. 228, Sec. 2. (AB 242) Effective January 1, 2022.)
  58. 854.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    After a change of control, a successor employer must keep covered employees for 180 days, preserve their total compensation during that period, and avoid firing them without cause.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 854.2. (a) The Legislature finds and declares all of the following: (1) California’s electric and gas utilities provide essential services to California residents and businesses, which are necessary to maintaining the vitality of California’s economy. (2) Consistent with Sections 913.4, 961, and 977, an adequately sized workforce of experienced electric and gas utility employees with the appropriate training and skills, as well as the knowledge of an electric or gas utility’s facilities and equipment, is essential to the safe, efficient, and uninterrupted provision of electrical and gas services. Safe and reliable electric and gas utility service is vital to public health, public safety, air quality, and reducing emissions of greenhouse gases. (3) Changes in the ownership or control of an electrical corporation or gas corporation may create uncertainty regarding the safe, efficient, and continuous provision of safe and reliable electrical and gas service to California consumers, leading to economic instability. (4) Mass displacement of electrical corporation or gas corporation workers as a result of a change in the ownership or control of an electrical corporation or gas corporation causes excessive reliance on the unemployment insurance system, and public social services and health programs, increasing costs to these vital governmental programs and placing a significant burden on the state and California taxpayers. (5) The state has a compelling interest in ensuring that when there is a change in the ownership or control of an electrical corporation or gas corporation, the new employer maintains a qualified and knowledgeable workforce with the ability to ensure safe, efficient, reliable, and continuous service to California consumers and communities. (6) Because of destructive and deadly wildfires and gas pipeline explosions, the electric and gas industries are in an unprecedented state of instability. One combined electrical and gas corporation has sought bankruptcy protection. All the major electrical corporations have had their credit ratings lowered to junk bond status or are at risk of downgrades to junk bond status. This jeopardizes the ability of these corporations to provide safe and reliable electric and gas service, to reduce the risk of future catastrophes, to provide service at just and reasonable rates, to meet the state’s mandates to reduce carbon emissions, and to address the risks of climate change. (7) There is a nationwide shortage of the qualified utility line workers and qualified line clearance tree trimmers needed to prevent and respond to wildfires, storms, and other major events. Because this work is performed on and near high voltage lines and other energized electrical equipment, these jobs require substantial training and are highly dangerous. Current efforts to hire enough qualified people to perform these functions have fallen short even though exceptional compensation packages are being offered. Any reduction in the number or qualifications of these employees would increase the risk to employees and the risk of future catastrophic wildfires, and would increase the frequency and duration of outages, particularly as a result of more common and more severe major storms. It is in the interest of the state and its citizens that utilities have the qualified workforce necessary to minimize the risk of future wildfires, to minimize future outages, and to restore service as promptly as possible after storms. (8) For the reasons provided in this subdivision, the Legislature must take action to stabilize the utility workforce so as to preserve the ability of utilities to provide safe and reliable electric and gas service. This requires that the size of the workforce be preserved or increased, and workers not be lost to other utilities offering more stable employment or better compensation. (b) For purposes of this section, the following definitions shall apply: (1) “Change of control” means any of the following: (A) An event that triggers the application of Section 851 or 854. (B) A material change in ownership of the electric corporation or gas corporation, its parent company, or its holding company. (C) A filing seeking bankruptcy protection. (D) The sale of all or a material portion of the assets of the electrical corporation or gas corporation, its parent company, or its holding company, or any merger, consolidation, or acquisition of the electrical corporation or gas corporation, its parent company, or its holding company with, by, or into another corporation, entity, or person. (E) In the case of a combined electrical and gas corporation, the change in ownership of all or a substantial portion of either the gas or electric line of business of the combined corporation. (F) A voluntary or involuntary change in ownership of assets from an electrical or gas corporation to ownership by a public entity. (2) (A) “Covered employee” means an individual who has been employed by an electrical corporation or gas corporation for at least 90 days immediately before a change of control affecting that individual’s principal place of employment. A change of control affects a covered employee’s principal place of employment where the change of control results in the predecessor employer transferring control of the place of employment to the successor employer. (B) “Covered employee” does not include any of the following: (i) A managerial, supervisory, or confidential employee. (ii) A temporary employee. (iii) A part-time employee who has worked less than 20 hours per week for the predecessor employer for at least 90 days immediately before the change of control. (3) “Person” means a corporation as defined in Section 204, a person as defined in Section 205, any other individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign. (4) “Predecessor employer” means the person who controls the electric or gas utility before the change of control. (5) “Principal place of employment” of an employee means the office or other facility of the electrical corporation or gas corporation where the employee is principally assigned to work by the predecessor employer. (6) “Successor employer” means the person who controls the electrical corporation or gas corporation after the change of control. (7) “Total compensation” means the combined value of the covered employee’s wages and benefits immediately before the change of control. Total compensation may be paid entirely as wages or in any combination of wages and fringe benefits, to be determined by the successor employer. Total compensation includes, but is not necessarily limited to, both of the following amounts: (A) The covered employee’s hourly wage rate or the per diem value of the covered employee’s monthly salary. (B) Employer payments toward the covered employee’s health and welfare and pension benefits. Employer payments toward health and welfare and pension benefits shall include only those payments that are recognized as employer payments under paragraphs (1) and (2) of subdivision (b) of Section 1773.1 of the Labor Code. (8) “Transition period” means a period of 180 days immediately following the effective date of a change of control. (c) (1) Except as otherwise provided in this section, a successor employer shall retain all covered employees for at least the transition period following a change of control, unless the commission approves a reduction in the workforce pursuant to subdivision (i). During the transition period, the successor employer shall not reduce the total compensation of a covered employee. (2) During the transition period, a successor employer shall not terminate a covered employee without cause. (d) (1) No later than 15 days before the effective date of a change of control, the predecessor employer shall do both of the following: (A) Cause to be posted, in a conspicuous place in a manner that is readily viewed by covered employees, a public notice of the change of control at each principal place of employment of any covered employee. (B) Cause the notice to be sent to any labor organization that represents covered employees. (2) The notice shall include the name of the predecessor employer and its contact information, the name of the successor employer and its contact information, and the effective date of the change of control. The notice shall be posted in a conspicuous place in a manner that is readily viewed by covered employees. (e) This part shall not be construed to limit the right of covered employees to bring legal action for wrongful termination. (f) The rights and remedies provided pursuant to this section are in addition to, and are not intended to supplant, any existing rights or remedies. (g) No later than 15 days before the effective date of a change of control, a predecessor employer shall provide to the successor employer the name, address, date of hire, total compensation, and classification of each covered employee. (h) A successor employer shall retain the following written or electronic records for at least three years: (1) The list provided to the successor employer pursuant to subdivision (g). (2) Any offer of employment made to a covered employee. (3) Any termination of a covered employee during a transition period, including the reasons for the termination. (4) Any written evaluation of a covered employee. (i) For three years after the transition period and subject to the provisions of any existing collective bargaining agreement, a successor employer shall provide to employees who would have qualified as covered employees had they been employed during the 90-day period immediately before a change of control no less than the wages, hours, and other terms and conditions of employment provided before the change of control, including any previously negotiated increase in wages, and shall maintain no less than the total number of employees who would have qualified as covered employees had they been employed during the 90-day period immediately before a change of control. The successor employer may reduce the wages, hours, and other terms and conditions of employment or the total number of employees in a manner inconsistent with collective bargaining agreements only if authorized by the commission in a final, nonappealable decision. The commission shall not provide this authorization except on proof by a preponderance of the evidence in an application proceeding of all of the following: (1) Neither the nature nor scope of the work performed by those employees proposed to be eliminated is necessary to providing safe and reliable utility service. The electrical corporation or gas corporation shall provide an independent third-party study to support its position. Other parties to the proceeding shall be provided with an opportunity to conduct their own studies. (2) The proposed new wages, hours, and other terms and conditions of employment shall be consistent with wages, hours, and other terms for California electrical corporations and gas corporations. The electrical corporation or gas corporation shall provide an independent third-party study to support its position. Other parties to the proceeding shall be provided an opportunity to conduct their own studies. (3) There will be no reduction in the ability of employees of the electrical or gas corporation to prevent damage from or to respond to an emergency such as a wildfire, storm, flood, mudslide, or earthquake, or to gas leaks, electric outages, interconnection requests, work requested by others, locate and mark requests, or other utility services. (4) There will be no reduction in the ability of the electrical corporation or gas corporation to respond to mutual aid requests of other utilities. (j) A successor employer may terminate an employee with cause consistent with any applicable selective bargaining agreement during the period specified in subdivision (i). (k) A successor employer and a labor organization representing covered employees may, in a collective bargaining agreement, provide that the agreement supersedes the requirements of this section with respect to the represented employees. (l) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Amended by Stats. 2019, Ch. 396, Sec. 31. (AB 1513) Effective January 1, 2020.)
  59. 854.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    The commission cannot use non-shareholder money to create a nonstate entity, and it cannot contract with a nonstate entity if someone serves as an owner, director, or officer while serving as a commissioner.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 854.5. (a) For purposes of this section, a “nonstate entity” means a company, corporation, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit. (b) The commission, by order, decision, motion, settlement, or other action, shall not establish a nonstate entity with any moneys other than those moneys that would otherwise belong to the public utility’s shareholders. A nonstate entity to be created with moneys from a public utility’s shareholders shall be subject to a 30-day review by the Joint Legislative Budget Committee prior to creation. This subdivision does not limit the authority of the commission to form an advisory committee or other body whose budget is subject to oversight by the commission and the Department of Finance. (c) The commission shall not enter into a contract with a nonstate entity in which a person serves as an owner, director, or officer while serving as a commissioner. Any contract between the commission and a nonstate entity shall be void and cease to exist by operation of law, if a commissioner, who was a commissioner at the time the contract was awarded, entered into, or extended, becomes, on or after January 1, 2014, an owner, director, or officer of the nonstate entity while serving as a commissioner. (d) Beginning June 1, 2014, a commissioner who acts as an owner, director, or officer of a nonstate entity that was established as a result of an order, decision, motion, settlement, or other action by the commission in which the commissioner participated, neglects his or her duty pursuant to Section 1 of Article XII of the California Constitution, and as a result the commissioner may be removed pursuant to that section by the Legislature, two-thirds of the membership of each house concurring. (Amended by Stats. 2014, Ch. 546, Sec. 1. (SB 434) Effective January 1, 2015.)
  60. 8550.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 15. Customer Communications [8550- 8550.] ( Chapter 15 added by Stats. 2025, Ch. 396, Sec. 1. )

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    Utilities must automatically enroll customers in outage and update alerts, with limited opt-out rights and special fallback procedures for certain local publicly owned electric utilities.

    ## Public Utilities Code - PUC ## DIVISION 4.1. PROVISIONS APPLICABLE TO PRIVATELY OWNED AND PUBLICLY OWNED PUBLIC UTILITIES [8301 - 8550] ( Heading of Division 4.1 amended by Stats. 1988, Ch. 1560, Sec. 2. ) ## CHAPTER 15. Customer Communications [8550- 8550.] ( Chapter 15 added by Stats. 2025, Ch. 396, Sec. 1. ) ## 8550. (a) Except as provided in subdivision (b), each utility shall, on or before March 1, 2026, automatically enroll its customers in alerts for service outages and updates. (b) (1) A local publicly owned electric utility that does not have the necessary system to implement the requirements of subdivision (a) shall, on or before March 1, 2026, develop appropriate and feasible procedures to maximize the automatic enrollment of its customers in alerts for electrical service outages and updates. (2) (A) A local publicly owned electric utility that does not have the necessary system to implement the requirements of subdivision (a) shall, on or before March 1, 2028, develop a plan to update its system to automatically enroll its customers in alerts for electrical service outages and updates. (B) If the governing board of the local publicly owned electric utility determines the plan developed pursuant to subparagraph (A) is cost effective, the local publicly owned electric utility shall implement the plan during the next significant, planned upgrade of its system or by March 1, 2030, whichever is sooner. (c) Customers shall be provided with the opportunity to opt-out of alerts for service outages and updates that the customer does not wish to receive, except for required or essential notifications. (d) Each utility shall annually provide information on a customer’s bill on how to update the customer’s preferred contact method and shall allow a customer to update the customer’s contact information on the utility’s internet website or, if feasible, by telephone. (e) For purposes of this section, “utility” means an electrical corporation, as defined in Section 218, a local publicly owned electric utility, as defined in Section 224.3, a gas corporation, as defined in Section 222, or a water corporation, as defined in Section 241. (Added by Stats. 2025, Ch. 396, Sec. 1. (AB 1410) Effective January 1, 2026.)
  61. 856.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    Certain utility officers, agents, employees, and other persons covered by this article commit a misdemeanor if they violate or help violate the article.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 856. Every officer, agent, or employee of a public utility, or of a subsidiary or affiliate of, or a corporation holding a controlling interest in, a public utility, and every other person subject to the requirements of this article, who violates or fails to comply with, or procures, aids, or abets any violation of, this article is guilty of a misdemeanor. (Added by Stats. 1989, Ch. 390, Sec. 3.)
  62. 857.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. )

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    A qualifying public utility may lease certain right-of-way property to a governmental entity for a public park if it keeps using the right-of-way for utility purposes.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 6. Transfer or Encumbrance of Utility Property [851 - 857] ( Article 6 enacted by Stats. 1951, Ch. 764. ) ## 857. (a) A public utility that owns real property acquired for purposes of obtaining a utility right-of-way, may lease that property to a governmental entity for purposes of a public park, if the utility retains the use of the right-of-way for public utility purposes. (b) In determining whether a lease of real property to a governmental entity for park purposes is for fair value, the commission shall include the community benefits of parks and open space as a benefit to ratepayers. (c) As used in this section, “community benefits” include, but are not limited to, improving public health, protecting the environment, and increasing recreational assets. (Added by Stats. 2009, Ch. 448, Sec. 1. (AB 521) Effective January 1, 2010.)
  63. 861.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 7. Controversies Concerning Relocation of Utility Improvements [861- 861.] ( Article 7 added by Stats. 1975, Ch. 1240. )

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    If a special law water district must relocate a public utility improvement and the district and utility cannot agree on the new improvement’s character or location, the dispute is submitted to the Public Utilities Commission.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 7. Controversies Concerning Relocation of Utility Improvements [861- 861.] ( Article 7 added by Stats. 1975, Ch. 1240. ) ## 861. (a) As used in this section, “special law water district” means the Santa Clara Valley Water District and the Yuba-Bear River Basin Authority and, if created by an uncodified special law, any of the following: a county flood control district, a county flood control and water district, a county flood control and water conservation district, a county water conservation and flood control district, or a county water agency. (b) Whenever by court order or judgment in an eminent domain proceeding or by agreement a special law water district is required to relocate any improvements of a public utility, if the special law water district and the public utility fail to agree as to the character or location of the new improvements to be relocated by the special law water district, the character and location of such new improvements and any other controversy relating thereto shall be submitted to and determined by the Public Utilities Commission in the manner prescribed in Chapter 6 (commencing with Section 1201). (Added by Stats. 1975, Ch. 1240.)
  64. 871.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    This article is known as the Moore Universal Telephone Service Act and may be cited by that name.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 871. This article shall be known and may be cited as the Moore Universal Telephone Service Act. (Added by Stats. 1987, Ch. 163, Sec. 2. Effective July 16, 1987.)
  65. 871.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    This section says lifeline telephone service should be made affordable and accessible, and the commission and telephone corporations should work to inform qualified households and support the program fairly.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 871.5. The Legislature finds and declares all of the following: (a) The offering of high-quality basic telephone service at affordable rates to the greatest number of citizens has been a longstanding goal of the state. (b) The Moore Universal Telephone Service Act has been, and continues to be, an important means for achieving universal service by making basic telephone service affordable to low-income households through the creation of a lifeline class of service. (c) Every means should be employed by the commission and telephone corporations to ensure that every household qualified to receive lifeline telephone service is informed of and is afforded the opportunity to subscribe to that service. (d) The furnishing of lifeline telephone service is in the public interest and should be supported fairly and equitably by every telephone corporation, and the commission, in administering the lifeline telephone service program, should implement the program in a way that is equitable, nondiscriminatory, and without competitive consequences for the telecommunications industry in California. (Amended by Stats. 2010, Ch. 381, Sec. 2. (AB 2213) Effective January 1, 2011.)
  66. 871.7.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    This section states legislative findings about universal telephone service and says the commission should begin a proceeding to examine whether universal service can be redefined to include two-way voice, video, and data service.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 871.7. The Legislature finds and declares all of the following: (a) The Moore Universal Telephone Service Act, enacted in 1987, was intended to offer high quality basic telephone service at affordable rates to the greatest number of California residents, and has become an important means of achieving universal service by making residential service affordable to low-income citizens through the creation of a lifeline class of service. (b) Factors such as competition and technological innovation are resulting in the convergence of a variety of telecommunications technologies offering an expanded range of telecommunications services to users that incorporate voice, video, and data. These technologies have differing regulatory regimes and jurisdictions. (c) It is the intent of the Legislature that the commission initiate a proceeding investigating the feasibility of redefining universal telephone service by incorporating two-way voice, video, and data service as components of basic service. It is the Legislature’s further intent that, to the extent that the incorporation is feasible, that it promote equity of access to high-speed communications networks, the Internet, and other services to the extent that those services provide social benefits that include all of the following: (1) Improving the quality of life among the residents of California. (2) Expanding access to public and private resources for education, training, and commerce. (3) Increasing access to public resources enhancing public health and safety. (4) Assisting in bridging the “digital divide” through expanded access to new technologies by low-income, disabled, or otherwise disadvantaged Californians. (5) Shifting traffic patterns by enabling telecommuting, thereby helping to improve air quality in all areas of the state and mitigating the need for highway expansion. (d) For purposes of this section, the term “feasibility” means consistency with all of the following: (1) Technological and competitive neutrality. (2) Equitable distribution of the funding burden for redefined universal service as described in subdivision (c), among all affected consumers and industries, thereby ensuring that regulated utilities’ ratepayers do not bear a disproportionate share of funding responsibility. (3) Benefits that justify the costs. (Added by Stats. 2000, Ch. 943, Sec. 1. Effective January 1, 2001.)
  67. 873.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must annually designate lifeline service, set its rates and charges, develop eligibility criteria, and assess universal service achievement.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 873. (a) The commission shall annually do all of the following: (1) Designate a class of lifeline service necessary to meet minimum communications needs. (2) Set the rates and charges for that service. (3) Develop eligibility criteria for that service. (4) Assess the degree of achievement of universal service, including telephone penetration rates by income, ethnicity, and geography. (b) Minimum communications needs include, but are not limited to, the ability to originate and receive calls and the ability to access electronic information services. (Amended by Stats. 2016, Ch. 86, Sec. 265. (SB 1171) Effective January 1, 2017.)
  68. 874.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    Lifeline telephone service rates, charges, and certain customer fees are capped, and the commission must review fraud issues and may limit reduced-rate charges.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 874. The lifeline telephone service rates and charges shall be as follows: (a) In a residential subscriber’s service area where measured service is not available, the lifeline telephone service rates shall not be more than 50 percent of the rates for basic flat rate service, exclusive of federally mandated end user access charges, available to the residential subscriber. (b) In a residential subscriber’s service area where measured service is available, the subscriber may elect either of the following: (1) A lifeline telephone service measured rate of not more than 50 percent of the basic rate for measured service, exclusive of federally mandated end user access charges, available to the residential subscriber. (2) A lifeline flat rate of not more than 50 percent of the rates for basic flat rate service, exclusive of federally mandated end user access charges, available to the residential subscriber. (c) The lifeline telephone service installation or connection charge, or both, shall not be more than 50 percent of the charge for basic residential service installation or connection, or both. The commission may limit the number of installation and connection charges, or both, that may be incurred at the reduced rate in any given period. (d) There shall be no charge to the residential customer who has filed a valid eligibility statement for changing out of lifeline service. (e) The commission shall assess whether there is a problem with customers who fraudulently obtain lifeline telephone service. If the commission determines that there is a problem, it shall recommend and promulgate appropriate solutions. This assessment and the solutions determined by the commission shall not, in and of themselves, change the procedures developed pursuant to Section 876. (Amended by Stats. 1999, Ch. 1005, Sec. 53. Effective January 1, 2000.)
  69. 875.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    Lifeline telephone service subscribers must receive an allowance tied to federally mandated residential end user access charges, and the commission may set procedures to help the program qualify for federal funds.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 875. (a) In addition to Section 874, every lifeline telephone service subscriber shall be given an allowance, reduced by the amount of any credit or allowance authorized by the Federal Communications Commission, equal to the then current or announced federally mandated residential end user access charges. (b) The commission may, in a separate proceeding, establish procedures necessary to ensure that the lifeline telephone service program qualifies for any federal funds available for the support of those programs. (Amended by Stats. 1992, Ch. 354, Sec. 5. Effective January 1, 1993.)
  70. 876.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must require telephone corporations in a service area to file lifeline telephone service rates and charges, and those corporations must notify eligible subscribers and accept applications under commission procedures.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 876. The commission shall require every telephone corporation providing telephone service within a service area to file a schedule of rates and charges providing a class of lifeline telephone service. Every telephone corporation providing service within a service area shall inform all eligible subscribers of the availability of lifeline telephone service, and how they may qualify for and obtain service, and shall accept applications for lifeline telephone service according to procedures specified by the commission. (Amended by Stats. 1992, Ch. 354, Sec. 6. Effective January 1, 1993.)
  71. 876.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission, its staff, lifeline administrators, and lifeline service providers generally may not disclose applicant or subscriber information to governments or immigration authorities unless there is a court-ordered subpoena or valid judicial warrant.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 876.5. (a) The commission, its staff, the lifeline program’s third-party administrator, and lifeline service providers, and their contractors, agents, successors, or assignees, shall not share, disclose, or otherwise make accessible any information provided by an applicant or subscriber to the lifeline program, or a subprogram or pilot program of the lifeline program, to any agency of a local government, a state government, or the federal government, or to any immigration authority without a court-ordered subpoena or valid judicial warrant. (b) This section does not prohibit the furnishing of applications, records, and data to other public agencies to the extent required for verifying an applicant’s or subscriber’s eligibility for lifeline service. (c) This section does not prohibit the commission, its staff, the lifeline program’s third-party administrator, or lifeline service providers from using aggregated subscriber or applicant data for analysis, reporting, or program management if the aggregated subscriber or applicant data cannot be used to determine the identities of the persons to whom the data pertains, alone or in combination with other data. (d) The commission, its staff, the lifeline program’s third-party administrator, and lifeline service providers, and the providers’ agents, successors, or assignees, may request, but may not require, applicants and subscribers to provide social security numbers, in whole or in part, to apply to, or participate in, the lifeline program. (e) To the extent Section 1621 of Title 8 of the United States Code applies to this article, the Legislature finds and declares that this article is a state law that may provide assistance and services for individuals not lawfully present in the United States within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code. (f) For purposes of this section, both of the following definitions apply: (1) “Immigration authority” means any federal, state, or local officer, employee, or person performing immigration enforcement functions. (2) “Immigration enforcement” includes any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal civil immigration law, and also includes any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal criminal immigration law that penalizes a person’s presence in, entry, or reentry to, or employment in, the United States. (Added by Stats. 2025, Ch. 347, Sec. 1. (AB 1303) Effective January 1, 2026.)
  72. 877.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission may change rates established under Section 873, including through a general restructuring of telephone rates, charges, and classifications.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 877. Nothing in this article precludes the commission from changing any rate established pursuant to Section 873, either specifically or pursuant to any general restructuring of all telephone rates, charges, and classifications. (Added by Stats. 1987, Ch. 163, Sec. 2. Effective July 16, 1987.)
  73. 878.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    This section limits lifeline telephone service to one subscription at the subscriber’s principal residence, restricts applicants to one principal residence address in California, and allows multiple subscribers at the same address only if they are not in the same household.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 878. (a) A lifeline telephone service subscriber shall be provided with one lifeline subscription, as defined by the commission, at the subscriber’s principal place of residence, and no other member of that subscriber’s family or household who maintains residence at that place is eligible for lifeline telephone service. (b) An applicant for lifeline telephone service may report only one address in this state as the principal place of residence. (c) Multiple lifeline telephone service subscribers may maintain the same address if they are not members of the same household. (d) For purposes of this section, the following definitions apply: (1) “Adult” means any person 18 years of age or older. (2) “Economic unit” means all adult individuals contributing to and sharing in the income and expenses of a household. (3) “Household” means any group of individuals, including the subscriber, who are living together at the same address and as one economic unit. A household may include related and unrelated persons. If an adult has no, or minimal, income and lives with someone who provides financial support to that adult, both persons shall be part of the same household. A child under 18 years of age and living with a parent or guardian shall be part of the same household as the parent or guardian. (Amended by Stats. 2021, Ch. 765, Sec. 2. (SB 394) Effective January 1, 2022.)
  74. 878.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must adopt a portability freeze rule for the lifeline program by January 15, 2017, and consider several features for that rule.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 878.5. The commission shall adopt a portability freeze rule for the lifeline program by January 15, 2017. The commission shall consider including all of the following in the rule: (a) A 60-day duration of the portability freeze. (b) A period of time when a subscriber would be able to terminate lifeline service without penalty, similar to that established in Section 4.13.5 of commission Decision 14-01-036 (January 16, 2014), Decision Adopting Revisions to Modernize and Expand the California Lifeline Program. (c) A requirement that the administrator of the lifeline program provide a telephone corporation providing lifeline service with real-time information concerning whether a subscriber has enrolled with another telephone corporation during the period of the portability freeze adopted by the commission pursuant to this section and, if the subscriber enrolled during this period, the date of enrollment. (Amended by Stats. 2019, Ch. 497, Sec. 244. (AB 991) Effective January 1, 2020.)
  75. 878.6.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must update lifeline program rules to make recertification easier, allow online and phone recertification options, and publicly report participation and recertification rates.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 878.6. (a) (1) Before March 1, 2022, the commission shall, as part of an existing proceeding, adopt updated rules for the lifeline program establishing a modified recertification process that minimizes barriers to lifeline subscriber recertification and reduces the burden and cost of recertification on the lifeline program. (2) The updated rules adopted pursuant to paragraph (1) shall do all of the following: (A) Enable a lifeline subscriber to enroll in the lifeline program directly online using an electronic signature. (B) Enable a lifeline subscriber to complete the annual recertification of lifeline eligibility process directly online using an electronic signature, or by telephone using a telephonic signature. The lifeline program’s third-party administrator shall verify the lifeline subscriber’s identity using the personally identifiable information that the administrator has on file. The commission shall not require a lifeline subscriber to use a commission-issued personal identification number (PIN) for identity verification. (C) Provide an option for lifeline subscribers to receive communications regarding their lifeline subscription in an electronic format, including, but not limited to, email and short message service. (b) Before January 1, 2023, the commission shall, as part of an existing proceeding and in consultation with lifeline service providers, the Federal Communications Commission, and the Universal Service Administrative Company, adopt updated rules for the lifeline program with the goal of achieving recertification rates at least equivalent to those rates achieved by the Universal Services Administrative Company as the administrator for the federal lifeline program. (c) The commission shall annually publicly report on its internet website the participation and recertification rates of eligible lifeline subscribers. (Added by Stats. 2021, Ch. 410, Sec. 1. (AB 74) Effective January 1, 2022.)
  76. 879.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must annually start a proceeding to set lifeline telephone service rates, and telephone corporations that provide that service must file yearly proposed rates, revenue needs, and funding methods.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 879. (a) The commission shall, at least annually, initiate a proceeding to set rates for lifeline telephone service. All telephone corporations providing lifeline telephone service shall annually file, on a date set by the commission, proposed lifeline telephone service rates and a statement of projected revenue needs to meet the funding requirements to provide lifeline telephone service to qualified subscribers, together with proposed funding methods to provide the necessary funding. These funding methods shall include identification of those services whose rates shall be adjusted to provide the necessary funding. (b) The commission shall commence a proceeding within 30 days after the date set for the filings required in subdivision (a), giving interested parties an opportunity to comment on the proposed rates and funding requirements and the proposed funding methods. The commission may change the rates, funding requirements, and funding methods proposed by the telephone corporations in any manner necessary, including reasonably spreading the funding among the services offered by the telephone corporations, to meet the public interest. Within 60 days of the annual filing, the commission shall issue an order setting lifeline telephone service rates and funding methods for each telephone corporation making a filing as required in subdivision (a). The commission may establish a lifeline service pool composed of the rate adjustments and surcharges imposed by the commission pursuant to this section for the purpose of funding lifeline telephone service. (c) Any order issued by the commission pursuant to this section shall require telephone corporations providing lifeline telephone service to apply the funding requirement in the form of a surcharge to service rates which may be separately identified on the bills of customers using those services. The commission shall not allow any surcharge under this section on the rates charged by those telephone corporations for lifeline telephone service. (d) The commission shall permit telephone corporations operating between service areas to adjust the rates of any service which may be affected by any surcharge imposed by this section. (Amended by Stats. 1992, Ch. 354, Sec. 8. Effective January 1, 1993.)
  77. 879.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must issue an initial order adopting required rates and funding requirements by October 31, 1987, and may use an interim surcharge to fund lifeline telephone service before that order is issued.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 879.5. Notwithstanding Section 879, the commission shall issue its initial order adopting required rates and funding requirements not later than October 31, 1987, and prior to the issuance of that order, may fund lifeline telephone service through the use of an interim surcharge on service rates for telephone service provided by telephone corporations operating between service areas. The interim surcharge shall not exceed 4 percent of the service rates. (Amended by Stats. 1992, Ch. 354, Sec. 9. Effective January 1, 1993.)
  78. 880.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission may decide any question of fact when administering this article.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 880. The commission may determine any question of fact in its administration of this article. (Added by Stats. 1987, Ch. 163, Sec. 2. Effective July 16, 1987.)
  79. 882.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The Public Utilities Commission must open or use proceedings to plan how advanced telecommunications services will be made broadly, economically, and timely available in California.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 882. (a) The Public Utilities Commission shall, as soon as practicable, open a proceeding or proceedings to, or as part of existing proceedings shall, consider ways to ensure that advanced telecommunications services are made available as ubiquitously and economically as possible, in a timely fashion, to California’s citizens, institutions, and businesses. The proceeding or proceedings should be completed within one year of commencement. (b) The proceeding or proceedings shall develop rules, procedures, orders, or strategies, or all of these, that seek to achieve the following goals: (1) To provide all citizens and businesses with access to the widest possible array of advanced communications services. (2) To provide the state’s educational and health care institutions with access to advanced communications services. (3) To ensure cost-effective deployment of technology so as to protect ratepayers’ interests and the affordability of telecommunications services. (c) In the proceeding or proceedings, the commission should also consider, but need not limit its consideration to, all of the following: (1) Whether the definition of universal service should be broadened. (2) How to encourage the timely and economic development of an advanced public communications infrastructure, which may include a variety of competitive providers. (Amended by Stats. 1999, Ch. 1005, Sec. 54. Effective January 1, 2000.)
  80. 883.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission must open an investigation and proceeding on universal service, hold public hearings, and consider a broad range of stakeholders and policy principles.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 883. (a) The commission shall, on or before February 1, 2001, issue an order initiating an investigation and opening a proceeding to examine the current and future definitions of universal service. That proceeding shall include public hearings that encourage participation by a broad and diverse range of interests from all areas of the state, including, but not limited to, all of the following: (1) Consumer groups. (2) Communication service providers, including all providers of high-speed access services. (3) Facilities-based telephone providers. (4) Information service providers and Internet access providers. (5) Rural and urban users. (6) Public interest groups. (7) Representatives of small and large businesses and industry. (8) Local agencies. (9) State agencies, including, but not limited to, all of the following: (A) The Government Operations Agency. (B) The State Department of Education. (C) The State Department of Public Health. (D) The California State Library. (10) Colleges and universities. (b) The objectives of the proceeding set forth in subdivision (a) shall include all of the following: (1) To investigate the feasibility of redefining universal service in light of current trends toward accelerated convergence of voice, video, and data, with an emphasis on the role of basic telecommunications and Internet services in the workplace, in education and workforce training, access to health care, and increased public safety. (2) To evaluate the extent to which technological changes have reduced the relevance of existing regulatory regimes given their current segmentation based upon technology. (3) To receive broad-based input from a cross section of interested parties and make recommendations on whether video, data, and Internet service providers should be incorporated into an enhanced Universal Lifeline Service program, as specified, including relevant policy recommendations regarding regulatory and statutory changes and funding options that are consistent with the principles set forth in subdivision (c) of Section 871.7. (4) To reevaluate prior definitions of basic service in a manner that will, to the extent feasible, effectively incorporate the latest technologies to provide all California residents with all of the following: (A) Improved quality of life. (B) Expanded access to public and private resources for education, training, and commerce. (C) Increased access to public resources enhancing public health and safety. (D) Assistance in bridging the “digital divide” through expanded access to new technologies by low income, disabled, or otherwise disadvantaged Californians. (5) To assess projected costs of providing enhanced universal lifeline service in accordance with the intent of this article, and to delineate the subsidy support needed to maintain the redefined scope of universal service in a competitive market. (6) To design and recommend an equitable and broad-based subsidy support mechanism for universal service in competitive markets in a manner that conforms with subdivision (c) of Section 871.7. (7) To develop a process to periodically review and revise the definition of universal service to reflect new technologies and markets consistent with subdivision (c) of Section 871.7. (8) To consider whether similar regulatory treatment for the provision of similar services is appropriate and feasible. (c) In conducting its investigation, the commission shall take into account the role played by a number of diverse but convergent industries and providers, even though many of these entities are not subject to economic regulation by the commission or any other government entity. (d) The recommendations of the commission shall be consistent with state policies for telecommunications as set forth in Section 709, and with all of the following principles: (1) Universal service shall, to the extent feasible, be provided at affordable prices regardless of linguistic, cultural, ethnic, physical, financial, and geographic considerations. (2) Consumers shall be provided access to all information needed to allow timely and informed choices about telecommunications products and services that are part of the universal service program and how best to use them. (3) Education, health care, community, and government institutions shall be positioned as early recipients of new and emerging technologies so as to maximize the economic and social benefits of these services. (Amended by Stats. 2017, Ch. 425, Sec. 5. (SB 385) Effective January 1, 2018.)
  81. 884.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The Legislature says commission broadband discount programs for schools and libraries should also give comparable discounts to nonprofit community technology programs, and the commission may spend up to $2,000,000 for certain installation costs.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 884. (a) It is the intent of the Legislature that any program administered by the commission that addresses the inequality of access to high-speed broadband services by providing those services to schools and libraries at a discounted price, provide comparable discounts to a nonprofit community technology program. (b) Notwithstanding any other law or existing program of the commission, but consistent with the purposes for which those funds were appropriated from the California Teleconnect Fund Administrative Committee Fund in Item 8660-001-0493 of Section 2.00 of the Budget Act of 2003 (Chapter 157 of the Statutes of 2003), and reappropriated in Item 8660-491 of Section 2.00 of the Budget Act of 2006 (Chapter 47 of the Statutes of 2006), the commission may expend up to two million dollars ($2,000,000) of the unencumbered amount of those funds for the nonrecurring installation costs for high-speed broadband services for community organizations that are eligible for discounted rates pursuant to Section 280. (c) For the purpose of this section: (1) “High-speed broadband services” means a system for the digital transmission of information over the Internet at a speed of at least 384 kilobits per second. (2) “Nonprofit community technology program” means a community-based nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and engages in diffusing technology into local communities and training local communities that have no access to, or have limited access to, the Internet and advanced telecommunications technologies. (Amended by Stats. 2006, Ch. 870, Sec. 1. Effective January 1, 2007.)
  82. 884.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    The commission may require internet service providers to report information about certain advertised internet plans.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 884.2. The commission may require each internet service provider, as defined in Section 3100 of the Civil Code, to report the following information regarding each free, low-cost, income-qualified, or affordable internet service plan advertised by the provider: (a) The cost of the plan, including any fees and taxes. (b) The eligibility requirements for the plan. (c) The data limitations of the plan. (d) The number of California residents enrolled in the plan. (e) A description of the outreach efforts undertaken by the provider to eligible populations to increase awareness about the plan. (Added by Stats. 2021, Ch. 658, Sec. 4. (AB 14) Effective October 8, 2021.)
  83. 884.5.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. )

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    This section tells the commission how to apply E-rate and teleconnect discounts, including special treatment for certain school districts.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 8. Universal Telephone Service [871 - 884.5] ( Article 8 added by Stats. 1987, Ch. 163, Sec. 2. ) ## 884.5. (a) This section shall apply to all customers eligible to receive discounts for telecommunications services under the federal Universal Service E-rate program administered by the Schools and Libraries Division of the Universal Service Administrative Company that also apply for discounts on telecommunications services provided through the California Teleconnect Fund Administrative Committee Fund program pursuant to subdivision (a) of Section 280. (b) A teleconnect discount shall be applied after applying an E-rate discount. The commission shall first apply an E-rate discount, regardless of whether the customer has applied for an E-rate discount or has been approved, if the customer, in the determination of the commission, meets the eligibility requirements for an E-rate discount. (c) Notwithstanding subdivision (b), the teleconnect discount shall be applied without regard to an E-rate discount for a school district that meets the conditions specified for compensation pursuant to Article 4 (commencing with Section 42280) of Chapter 7 of Part 24 of Division 3 of Title 2 of the Education Code, unless that school district has applied for, and been approved to receive, the E-rate discount. (d) In establishing a discount under the California Teleconnect Fund Administrative Committee Fund program, the commission shall give priority to bridging the “digital divide” by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income, and disabled Californians. (e) As used in this section: (1) “E-rate discount” means an actual discount under the E-rate program, or a representative discount figure as determined by the commission. (2) “E-rate program” means the federal Universal Service E-rate program administered by the Schools and Libraries Division of the Universal Service Administrative Company. (3) “Teleconnect discount” means a discount on telecommunications services provided through the California Teleconnect Fund Administrative Committee Fund program set forth in subdivision (a) of Section 280. (Amended by Stats. 2008, Ch. 179, Sec. 195. Effective January 1, 2009.)
  84. 885.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. )

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    Entities that offer telephone prepaid debit card services must register under Section 1013 starting January 1, 1999, unless they are certificated by the commission to provide telephone service.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. ) ## 885. (a) Any entity offering the services of telephone prepaid debit cards is subject to the registration requirements of Section 1013, commencing January 1, 1999, unless that entity is certificated by the commission to provide telephone service. An entity subject to this requirement includes any of the following: (1) An entity that is an underlying interexchange carrier and offers and administers the services of telephone prepaid debit cards. (2) An entity that purchases bulk time from an underlying interexchange carrier and thereby offers and administers the services of telephone prepaid debit cards (that is, the entity repackages and resells the time as prepaid debit cards). (b) Resellers of telephone prepaid debit cards who do not engage in any of the activities described in subdivision (a) are not subject to the registration requirement imposed by subdivision (a). Resellers that are not subject to the registration requirement imposed by subdivision (a) include both of the following: (1) Retailers who only provide a marketing venue for telephone prepaid debit cards. (2) Entities that only print information on telephone prepaid debit cards. (c) Telephone prepaid debit cards offered in a promotional manner or gratis shall not subject the provider to the registration requirement imposed by subdivision (a), unless the cards are issued in conjunction with the sale of related goods or services. (d) The commission shall maintain a list of certificated interexchange carriers and shall supply that information upon request. (Added by Stats. 1998, Ch. 799, Sec. 1. Effective January 1, 1999.)
  85. 886.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. )

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    Certain unregistered or denied entities must not offer telephone prepaid debit card services, and violations may lead to commission-ordered fines or other sanctions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. ) ## 886. Entities that are required to register, but have failed to do so, or entities that are denied registration by the commission, shall not offer the services of telephone prepaid debit cards. Entities that are required to register, but have failed to do so, and entities denied registration that offer telephone prepaid debit cards shall be subject to fines or other sanctions that may be ordered by the commission. (Added by Stats. 1998, Ch. 799, Sec. 1. Effective January 1, 1999.)
  86. 887.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. )

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    The commission may enforce the standards and requirements in Section 17538.9 of the Business and Professions Code.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 9. Telephone Prepaid Debit Cards [885 - 887] ( Article 9 added by Stats. 1998, Ch. 799, Sec. 1. ) ## 887. The commission may enforce the standards and requirements of Section 17538.9 of the Business and Professions Code. (Added by Stats. 2008, Ch. 745, Sec. 1. Effective January 1, 2009.)
  87. 890.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    A natural gas surcharge must be imposed and administered by the commission, and gas utilities must collect it from covered customers.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 890. (a) On and after January 1, 2001, there shall be imposed a surcharge on all natural gas consumed in this state. The commission shall establish a surcharge to fund low-income assistance programs required by Sections 739.1, 739.2, and 2790 and cost-effective energy efficiency and conservation activities and public interest research and development authorized by Section 740 and not adequately provided by the competitive and regulated markets. Upon implementation of this article, funding for those programs shall be removed from the rates of gas utilities. (b) (1) Except as specified in Section 898, a public utility gas corporation, as defined in subdivision (b) of Section 891, shall collect the surcharge imposed pursuant to subdivision (a) from any person consuming natural gas in this state who receives gas service from the public utility gas corporation. (2) A public utility gas corporation is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the public utility gas corporation has previously paid the amount of the surcharge it may, under regulations prescribed by the State Board of Equalization, take as a deduction on its return the amount found to be worthless and charged off. If any accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after that collection. The commission may by regulation promulgate other rules with respect to uncollected or worthless accounts as it determines to be necessary to the fair and efficient administration of this part. (c) Except as specified in Section 898, all persons consuming natural gas in this state that has been transported by an interstate pipeline, as defined in subdivision (c) of Section 891, shall be liable for the surcharge imposed pursuant to subdivision (a). (d) The commission shall annually determine the amount of money required for the following year to administer this chapter and fund the natural gas related programs described in subdivision (a) for the service territory of each public utility gas corporation. (e) The commission shall annually establish a surcharge rate for each class of customer for the service territory of each public utility gas corporation. A customer of an interstate gas pipeline, as defined in Section 891, shall pay the same surcharge rate as the customer would pay if the customer received service from the public utility gas corporation in whose service territory the customer is located. The commission shall determine the total volume of retail natural gas transported within the service territory of a utility gas provider, that is not subject to exemption pursuant to Section 896, for the purpose of establishing the surcharge rate. (f) The commission shall allocate the surcharge for gas used by all customers, including those customers who were not subject to the surcharge prior to January 1, 2001. (g) The commission shall notify the State Board of Equalization of the surcharge rate for each class of customer served by an interstate pipeline in the service territory of a public utility gas corporation. (h) The State Board of Equalization shall notify each person who consumes natural gas delivered by an interstate pipeline of the surcharge rate for each class of customer within the service territory of a public utility gas corporation. (i) The surcharge imposed pursuant to subdivision (a) shall be in addition to any other charges for natural gas sold or transported for consumption in this state. Effective on July 1, 2001, the surcharge imposed pursuant to this article shall be identified as a separate line item on the bill of a customer of a public utility gas corporation. (j) Notwithstanding subdivision (a), public utility gas corporations shall continue to collect in rates those costs of programs described in subdivision (a) of Section 890 that are uncollected prior to the operative date of this article. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  88. 891.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    Gas utilities must notify the State Board of Equalization of their status, and people who consume natural gas delivered by an interstate pipeline must register annually. The Board may also require documentation needed to implement this article.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 891. (a) “Gas utility” means any public utility gas corporation or interstate pipeline as defined in this section. (b) “Public utility gas corporation” means a public utility gas corporation as defined in Section 216. (c) “Interstate pipeline” means any entity that owns or operates a natural gas pipeline delivering natural gas to consumers in the state and is subject to rate regulation by the Federal Energy Regulatory Commission. (d) Each gas utility shall notify the State Board of Equalization of its status under this section. Each person who consumes natural gas delivered by an interstate pipeline shall annually register with the State Board of Equalization. The State Board of Equalization may require any documentation that it determines to be necessary to implement this article. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  89. 892.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    Collected natural gas surcharge revenue must be remitted to the State Board of Equalization, which must forward the payments to the Treasurer for deposit into the Gas Consumption Surcharge Fund.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 892. The revenue from the surcharge imposed pursuant to this article and collected by a public utility gas corporation shall be paid to the State Board of Equalization in the form of remittances. Persons consuming natural gas delivered by an interstate pipeline shall pay the surcharge to the State Board of Equalization in the form of remittances. The board shall transmit the payments to the Treasurer who shall deposit the payments in the Gas Consumption Surcharge Fund, which is hereby created in the State Treasury. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  90. 892.1.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    Public utility gas corporations must treat the surcharges and related amounts as due quarterly, with payment due no later than the last day of the month after each calendar quarter.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 892.1. The surcharges imposed by this part and the amounts thereof required to be collected by public utility gas corporations are due quarterly on or before the last day of the month next succeeding each calendar quarter. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  91. 892.2.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    Certain gas-related taxpayers must file a quarterly return with the State Board of Equalization and sign it.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 892.2. On or before the last day of the month following each calendar quarter, a return for the preceding quarterly period shall be filed with the State Board of Equalization in such form as the board may prescribe. A return shall be filed by every public utility gas corporation, and by every person consuming, as defined in this article, natural gas transported by a provider other than the public utility gas corporation. The return shall be signed by the person required to file the return or by his or her duly authorized agent. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  92. 893.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    The State Board of Equalization must administer the surcharge under this article in line with the Fee Collection Procedures Law.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 893. The State Board of Equalization shall administer the surcharge imposed pursuant to this article in accordance with the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  93. 894.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    The State Board of Equalization may collect any unpaid surcharge imposed under this article.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 894. The State Board of Equalization may collect any unpaid surcharge imposed pursuant to this article. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  94. 895.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    Money in the Gas Consumption Surcharge Fund is continuously appropriated for the listed purposes, including funding the commission, a designated entity, and related costs.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 895. Notwithstanding Section 13340 of the Government Code, moneys in the Gas Consumption Surcharge Fund are continuously appropriated, without regard to fiscal years, as follows: (a) To the commission or an entity designated by the commission to fund programs described in subdivision (a) of Section 890. If the commission designates the Energy Commission to receive funds for public interest research and development, both of the following shall apply: (1) The Controller shall transfer the funds to a separate subaccount within the Public Interest Research, Development, and Demonstration Fund. Notwithstanding Section 384 of this code and Section 13340 of the Government Code, moneys in the subaccount are continuously appropriated, without regard to fiscal year, to pay the Energy Commission for its costs in carrying out its duties and responsibilities under this article. (2) The Energy Commission may administer the program pursuant to Chapter 7.1 (commencing with Section 25620) of Division 15 of the Public Resources Code. (b) To pay the commission for its costs in carrying out its duties and responsibilities under this article. (c) To pay the State Board of Equalization for its costs in administering this article. (Amended by Stats. 2021, Ch. 115, Sec. 76. (AB 148) Effective July 22, 2021.)
  95. 896.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    This section defines “consumption” as the use or employment of natural gas, and lists several exclusions.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 896. “Consumption” means the use or employment of natural gas. Consumption does not include the use or employment of natural gas to generate power for sale, the sale or purchase of natural gas for resale to end users, the sale or use of gas for enhanced oil recovery, natural gas utilized in cogeneration technology projects to produce electricity, or natural gas that is produced in California and transported on a proprietary pipeline. Consumption does not include the consumption of natural gas which this state is prohibited from taxing under the United States Constitution or the California Constitution. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  96. 897.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

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    This section says the article does not change the rights and obligations of parties to commission-approved contracts, using the interpretation in place on January 1, 1998.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 897. Nothing in this article impairs the rights and obligations of parties to contracts approved by the commission, as the rights and obligations were interpreted as of January 1, 1998. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  97. 898.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

    Verify source ↗

    Some local public entities do not have to collect this natural gas surcharge from customers in their own service territory, but they generally must collect it from customers they serve outside that territory unless the commission finds comparable services are offered.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 898. Notwithstanding Section 890, a municipality, district, or public agency that offers in published tariffs home weatherization services, rate assistance for low-income customers, or programs similar to those described in subdivision (a) of Section 890, shall not be required to collect a surcharge pursuant to this article from customers within its service territory. A municipality, district, or public agency shall be required to collect a surcharge pursuant to this article from customers served by the municipality, district, or public agency outside of its service territory unless the commission determines that the entity offers those customers services similar to those offered by gas utilities as described in subdivision (a) of Section 890. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  98. 899.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

    Verify source ↗

    Sections 890 and 892 do not apply to certain gas customers served by a municipality, district, or public agency exempted under Section 898 from collecting a surcharge.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 899. Sections 890 and 892 do not apply to any gas customer of a municipality, district, or public agency exempted by Section 898 from collecting a surcharge. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  99. 9.

    ## Public Utilities Code - PUC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 764. )

    Verify source ↗

    References to this code or any other state law include amendments and additions made before or after the reference.

    ## Public Utilities Code - PUC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 764. ) ## 9. Whenever reference is made to any portion of this code or of any other law of this State, the reference applies to all amendments and additions heretofore or hereafter made. (Enacted by Stats. 1951, Ch. 764.)
  100. 900.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. )

    Verify source ↗

    The commission must determine and implement the most efficient, cost-effective programs for specified sections, and it may conduct compliance and financial audits.

    ## Public Utilities Code - PUC ## DIVISION 1. REGULATION OF PUBLIC UTILITIES [201 - 3299.100] ( Division 1 enacted by Stats. 1951, Ch. 764. ) ## PART 1. PUBLIC UTILITIES ACT [201 - 2120] ( Part 1 enacted by Stats. 1951, Ch. 764. ) ## CHAPTER 4. Regulation of Public Utilities [701 - 940] ( Chapter 4 enacted by Stats. 1951, Ch. 764. ) ## ARTICLE 10. Natural Gas Surcharge [890 - 900] ( Article 10 added by Stats. 2000, Ch. 932, Sec. 2. ) ## 900. The commission shall determine the most efficient and cost-effective way to provide programs pursuant to Sections 739.1, 739.2, and 2790 in a consistent manner statewide by utility provider service territory. In determining the most cost-effective way to provide service that benefits persons eligible for low-income programs, the commission shall consider factors, including, but not limited to, outreach efforts to reach the targeted population and the types of discounts and services that should be provided by each utility. On or before July 1, 2001, the commission shall develop and implement efficient and cost-effective programs pursuant to Sections 739.1, 739.2, and 2790. The commission may conduct compliance audits to ensure compliance with any commission order or resolution relating to the implementation of programs pursuant to Sections 739.1, 739.2, and 2790, and may conduct financial audits. (Added by Stats. 2000, Ch. 932, Sec. 2. Effective January 1, 2001.)
  101. 90000.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This section says the part is to be known and cited as the “San Diego County Transit District Act of 1965.”

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90000. This part shall be known and cited as the “San Diego County Transit District Act of 1965.” (Added by Stats. 1965, Ch. 2039.)
  102. 90001.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This article governs how this part is to be construed unless the context requires otherwise.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90001. Unless the context otherwise requires, the provisions of this article govern the construction of this part. (Added by Stats. 1965, Ch. 2039.)
  103. 90002.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    “District” means the San Diego County Transit District.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90002. “District” means the San Diego County Transit District. (Added by Stats. 1965, Ch. 2039.)
  104. 90003.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    “Board” means the district’s board of directors.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90003. “Board” means the board of directors of the district. (Added by Stats. 1965, Ch. 2039.)
  105. 90004.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    “Voter” means an elector who is registered under the Elections Code.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90004. “Voter” means any elector who is registered under the Elections Code. (Added by Stats. 1965, Ch. 2039.)
  106. 90005.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This section defines “Transit” as passenger transportation with incidental baggage, excluding chartered buses, sightseeing buses, and similar non-fare-paying motor vehicles.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90005. “Transit” means the transportation of passengers only and their incidental baggage by means other than by chartered bus, sightseeing bus, or any other motor vehicle not on an individual passenger fare-paying basis. Nothing in this section shall be construed to prohibit the district from leasing its buses to public agencies or to private certified public carriers or to prohibit the district from providing schoolbus service for the transportation of pupils between their homes and schools. (Added by Stats. 1965, Ch. 2039.)
  107. 90006.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This section defines “transit works” or “transit facilities” as property, equipment, rights, or interests the district owns or will acquire for transit service.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Definitions [90000 - 90006] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90006. “Transit works” or “transit facilities” means all real and personal property, equipment, rights, or interests owned or to be acquired by the district for transit service. (Added by Stats. 1965, Ch. 2039.)
  108. 90020.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    California declares a policy of developing transit system districts in metropolitan areas, and says San Diego County needs a specially created district to operate effectively there.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90020. It is hereby declared to be the policy of the State of California to develop transit system districts in the various metropolitan areas within the state for the benefit of the people. A necessity exists within San Diego County for such a system. Because there is no general law under which this district could perform this distinct function, only a specially created district can operate effectively in the San Diego metropolitan area. Because of the unique problem presented by that metropolitan area, the adoption of a special act and the creation of a special district is required. (Added by Stats. 1965, Ch. 2039.)
  109. 90021.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The San Diego County Transit District may be created under this part and, once created, may exercise the powers granted here.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90021. The San Diego County Transit District may be created as provided in this part and when so created may exercise the powers herein granted. (Added by Stats. 1965, Ch. 2039.)
  110. 90022.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Elections under this part must be held and conducted, and the results determined and declared, as nearly as practicable in line with the state’s general elections laws, unless this part says otherwise.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90022. Except as otherwise provided in this part, elections shall be held and conducted and the result ascertained, determined, and declared in all respects as nearly as practicable in conformity with the general elections laws of the state. (Added by Stats. 1965, Ch. 2039.)
  111. 90023.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Ordinarily, required ordinances and notices must be published within the district under Government Code Section 6066.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90023. Except as otherwise provided in this part, all ordinances and notices which are required to be published shall be published within the district pursuant to Section 6066 of the Government Code. (Added by Stats. 1965, Ch. 2039.)
  112. 90024.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    When a covered district, board, or retirement-system signature is authorized or required under this part, it may be made using a facsimile-signature plate, except in the one instance in Section 90623.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90024. Whenever the signature of any officer or employee of a district or of any member of the retirement board or of any officer or employee of the retirement system is authorized or required under the provisions of this part, except in the single instance provided in Section 90623, the signature may be made by the use of a plate bearing facsimiles of such signatures. (Added by Stats. 1965, Ch. 2039.)
  113. 90025.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district is designated a rapid transit district, and its authorized transit facilities and services are designated a rapid transit system.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 1. General Provisions [90000 - 90025] ( Chapter 1 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. General Provisions [90020 - 90025] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90025. The district is hereby designated a rapid transit district and the transit facilities and services the district is authorized to acquire, own, operate, control, or use are designated a rapid transit system, for the purposes of Part 15 (commencing with Section 35001) and Part 16 (commencing with Section 36000) of Division 2 of the Revenue and Taxation Code. (Added by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  114. 90050.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. General Provisions [90050- 90050.] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This section defines which cities and nearby unincorporated territory are included in the San Diego County Transit District.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. General Provisions [90050- 90050.] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90050. The area to be embraced in the district shall include all of the corporate area of each of the Cities of San Diego, Chula Vista, Coronado, National City, La Mesa, El Cajon, and Imperial Beach which establish the district as provided in this act, and any unincorporated territory in the County of San Diego contiguous thereto and being served by the San Diego Transit System, which is included in the district by the board of supervisors of the county as provided in this part. This area shall be subdivided for the purpose of formation into two sections comprising (1) the City of San Diego and (2) the Cities of Coronado, Imperial Beach, Chula Vista, National City, El Cajon, and La Mesa and any unincorporated territories in the County of San Diego contiguous thereto and being served by the San Diego Transit System which is included in the district by the board of supervisors of the county as provided in this part. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  115. 90070.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The San Diego County Board of Supervisors must call an election on forming the district if the section’s filing conditions are met.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90070. The Board of Supervisors of San Diego County shall call an election in the area to be included within the district on the question of the formation of the district if either of the two conditions specified below is met: (a) A petition calling for the formation of the district is filed with the board of supervisors from each of the seven cities specified in Section 90050. Each of the petitions from the seven respective cities shall be signed by a number of signers equal to at least five percent (5%) of the voters registered for the last municipal election in each particular city. A petition may be on separate papers, but each paper shall contain the affidavit of the person who circulated it, certifying that each name signed thereto is a true signature of the person whose name it purports to be. (b) A resolution of consent calling for the formation of the district is filed with the board of supervisors from each of the city councils of the seven cities specified in Section 90050; provided, that the requirements of this section shall be deemed to have been met if a combination of petitions and resolutions of consent have been filed with the board of supervisors, so long as each of the seven cities specified in Section 90050, either through a petition or by a vote of the city council, has authorized the calling of an election for the formation of the district. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  116. 90071.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    A person signing a petition in a city must be a registered voter and a resident of that city.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90071. Each signer of a petition within a particular city shall be a registered voter and resident of that city. (Added by Stats. 1965, Ch. 2039.)
  117. 90072.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board of supervisors must schedule a hearing after receiving the required resolutions or petitions, and must publish a hearing notice with specified details.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90072. Upon receipt of the resolutions or petitions, or sufficient combination of both, the board of supervisors shall call a hearing thereon not less than 77 days nor more than 91 days following the receipt of all of the required resolutions or petitions, or both. The board of supervisors shall publish notice of said hearing in any newspaper of general circulation published within the proposed district in accordance with Section 6066 of the Government Code. The notice shall state the name and nature of the proposed district, that all petitions and resolutions may be inspected at the office of the clerk of said board of supervisors, that the proposed district shall include the seven cities specified in Section 90050, the boundaries of any unincorporated territory proposed for inclusion, the time and place for the hearing, and that all interested persons shall be given an opportunity to express their views. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  118. 90073.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board of supervisors may, and in some cases must, adopt a resolution of intention to include eligible unincorporated territory in the proposed transit district, and it must refer that resolution to the Local Agency Formation Commission.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90073. At any time within 30 days following the receipt by the board of supervisors of petitions or resolutions, or both, requiring the calling of an election pursuant to Section 90070, the board of supervisors may adopt a resolution of intention to include within the proposed San Diego County Transit District any unincorporated territory eligible for inclusion in the district as provided in Section 90050, and shall adopt such resolution of intention as to any such unincorporated territory upon receipt within such 30-day period of a petition signed by a number of signers equal to at least 5 percent of the voters registered for the last general election within any such territory requesting its inclusion in the proposed district and describing its boundaries. The board of supervisors by its resolution and registered voters by their petitions may propose the inclusion of such unincorporated territory in separate areas which are not themselves contiguous to each other. The board of supervisors shall, upon its adoption, refer such resolution of intention to the San Diego County Local Agency Formation Commission, which shall report to the board of supervisors within 30 days following receipt of the referral. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  119. 90074.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board of supervisors may exclude unincorporated territory from the proposed district, and landowners may ask in writing for exclusion of their property.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90074. At the hearing, the board of supervisors shall have the power to exclude any unincorporated territory which, in its determination, would not receive reasonable benefit from inclusion in the district. Any landowner within any unincorporated territory proposed for inclusion may by written application request that the board of supervisors consider the exclusion of his property as described in his application from the proposed district. At the conclusion of the hearing the board of supervisors shall determine the boundaries of any unincorporated territory to be included within the proposed district and shall adopt its order calling the election on the question of the forming of the proposed district, which election shall be consolidated with the next succeeding primary or general election occurring not sooner than 75 days following the conclusion of the hearing. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  120. 90075.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    This section says the district election must be run, as nearly as practicable, under the rules for municipal elections in general law cities.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90075. The election shall be called, noticed, held, and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted and returned, returns canvassed, results declared, oaths of office administered, and all other proceedings incidental to and connected with the election shall be regulated and done, as nearly as may be practicable, in accordance with the provisions of law regulating municipal elections in general law cities. For the purposes of the election, the terms “board of trustees” and “city clerk,” respectively, as used in the Elections Code provisions respecting the conduct of elections in general law cities, shall mean the county board of supervisors and the registrar of voters, respectively, for the purpose of the election held under this act. An election called pursuant to the provisions of this act may be consolidated with any other election pursuant to Part 3 (commencing with Section 10400) of Division 10 of the Elections Code. (Amended by Stats. 1994, Ch. 923, Sec. 203. Effective January 1, 1995.)
  121. 90076.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The election vote count must be conducted in two parts: one for votes cast in the City of San Diego, and one for votes cast in specified other cities and any included outside territory.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90076. The count of the votes of the election shall be conducted in two parts (see Section 90050). One part shall consist of the votes cast in the City of San Diego. The second part shall consist of the votes cast in the Cities of Coronado, Imperial Beach, Chula Vista, National City, El Cajon, and La Mesa and outside territory included by the county board of supervisors, if any, at the time of election. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  122. 90078.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    If the vote canvass shows the required majorities, the board of supervisors must record the finding, note the district boundaries, and issue an order declaring the district formed.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Election [90070 - 90078] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90078. If from the canvass it appears and the board of supervisors finds that a majority of the votes cast in the City of San Diego and a majority of the votes cast in the other section specified in Section 90050 were cast in favor of the formation of the district, it shall enter that fact upon its minutes together with a description of the boundaries of the district and enter its order declaring the district duly formed and existing in the county. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  123. 90100.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Establishment of the District [90100- 90100.] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    If the required majorities vote yes, the board of supervisors must file a certified copy of the election order with the Secretary of State, and the district’s establishment becomes complete after that filing.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Establishment of the District [90100- 90100.] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90100. If a majority of the electors voting on the proposition in the City of San Diego and a majority of the electors in the other section specified in Section 90050 vote in favor of the creation and establishment of the district, the board of supervisors shall cause a certified copy of the order declaring the result of the election to be filed in the office of the Secretary of State, from and after which the establishment of the district shall be deemed complete in the City of San Diego and the other section specified in Section 90050. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  124. 90120.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Contest of Incorporation [90120- 90120.] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Minor informalities in the incorporation process or election do not invalidate the district unless they substantially harm a citizen’s legal rights. Any challenge to incorporation validity must be started within three months after the election result order is filed with the Secretary of State.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 2. Formation of District [90050 - 90120] ( Chapter 2 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Contest of Incorporation [90120- 90120.] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90120. No informality in any proceeding or in the conduct of the election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the incorporation of the district. Any proceedings wherein the validity of incorporation is denied shall be commenced within three months from the date of filing the order declaring the result of the election with the Secretary of State, otherwise the incorporation and the legal existence of the district shall be held to be valid and in every respect legal and incontestable. (Added by Stats. 1965, Ch. 2039.)
  125. 90170.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Government [90170 - 90171] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district is governed by a board of directors, and this section sets how many directors are elected and by whom.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Government [90170 - 90171] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90170. The government of the district shall be vested in a board of directors elected concurrent with the district’s formation. If no unincorporated area of the county is included within the district, the City of San Diego shall elect seven directors at large. If any unincorporated area of the county is included within the district, the City of San Diego shall elect eight directors at large. Each of the incorporated cities within the remaining section as specified in Section 90050 and the unincorporated area of the county, if any, shall elect one director. In the event of a tie, the directors involved shall determine by lot which shall be seated. Whenever any additional member is elected to the board of directors as a result of any annexation to the district, the City of San Diego shall be entitled to seat an additional member on the board of directors. The City Council of the City of San Diego shall appoint any initial additional member to which the city becomes entitled and such member shall serve until a successor is elected at the next succeeding election of directors within the City of San Diego and qualifies. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  126. 90171.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Government [90170 - 90171] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Elected directors must live in the city they represent, and directors elected from an unincorporated area must live in that area, both when elected and during their term.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Government [90170 - 90171] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90171. The directors elected shall be residents of the respective city they represent at the time of their election and during the term of their office. Any director elected in the unincorporated area shall be a resident of that area at the time of his election and during the term of his office. (Added by Stats. 1965, Ch. 2039.)
  127. 90190.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Each director’s term is four years, unless this article provides otherwise.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90190. The term of each director shall be for four years, except as provided in this article. (Added by Stats. 1965, Ch. 2039.)
  128. 90191.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    If a board vacancy occurs, the board of directors must appoint someone to fill it within 60 days, and the appointment must be made within the jurisdiction where the vacancy happened.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90191. Any vacancy, including any caused by death or resignation of any member, shall be filled by appointment of the board of directors within 60 days of date of vacancy. Such appointment shall be made within the jurisdiction in which the vacancy occurred. (Added by Stats. 1965, Ch. 2039.)
  129. 90192.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    A person appointed to fill a board vacancy serves only temporarily, until the unexpired term ends or a successor is elected at the next election within that jurisdiction, whichever happens first.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90192. The person to fill any vacancy on the board shall serve temporarily to fill the unexpired term or until a successor is regularly elected at the next election within that jurisdiction whichever occurs first. (Added by Stats. 1965, Ch. 2039.)
  130. 90193.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The first directors must divide their initial terms by lot so that more than half serve four years and the rest serve two years; after that, each director serves a four-year term.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90193. The first members of the board of directors elected after the formation of the district shall so classify themselves by lot that one more than one-half of the directors shall serve for four years, and the remainder of the directors for two years. Thereafter the term of office of each director shall be four years. (Added by Stats. 1965, Ch. 2039.)
  131. 90194.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Each district director may be recalled by the district’s voters under the state’s general recall laws for county officers.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Terms of Office [90190 - 90194] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90194. Every director is subject to recall by voters of the district, in accordance with the recall provisions of the general laws of the state applicable to county officers. (Added by Stats. 1965, Ch. 2039.)
  132. 90210.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Directors must take, subscribe, and file their oath of office with the district secretary after election, and no later than 15 days after their term begins.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90210. The oath of office of directors shall be taken, subscribed, and filed with the secretary of the district at any time after the director has been elected, but not later than 15 days after the commencement of his term of office. No other filing is required. (Added by Stats. 1965, Ch. 2039.)
  133. 90211.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must choose a president and vice president from among its members and must set the time and place of meetings, which must be held at least monthly.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90211. The board shall choose one of its members president, and another vice president, who shall be authorized to act for the president during his absence or disability and shall provide for the time and place of holding its meetings, which shall be held at least once each month. (Added by Stats. 1965, Ch. 2039.)
  134. 90212.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board is the district’s legislative body and decides all policy questions.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90212. The board is the legislative body of the district and determines all questions of policy. (Added by Stats. 1965, Ch. 2039.)
  135. 90213.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must provide for necessary district administration matters that this act does not already cover.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90213. All matters and things necessary for the proper administration of the affairs of the district which are not provided for in this act shall be provided for by the board. (Added by Stats. 1965, Ch. 2039.)
  136. 90214.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must supervise and regulate district transit facilities and may set rates, rentals, charges, classifications, and operating rules.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90214. The board shall supervise and regulate every transit facility owned and operated by the district, including the fixing of rates, rentals, charges, and classifications, and the making and enforcement of rules, regulations, contracts, practices, and schedules, for or in connection with any transit facility owned or controlled by the district. (Added by Stats. 1965, Ch. 2039.)
  137. 90215.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board may adopt a personnel system, and it must set up positions and salaries by resolution; the general manager makes appointments unless another rule applies.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90215. The board may adopt a personnel system for the purpose of recruiting and maintaining an effective working force with good morale. The board shall by resolution determine and create such number and character of positions as are necessary properly to carry on the functions of the district and shall establish an appropriate salary, salary range, or wage for each position so created. The board may by resolution abolish any such position. Except as otherwise provided, appointments to such positions shall be made by the general manager. (Added by Stats. 1965, Ch. 2039.)
  138. 90216.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board may contract for or employ professional services when the district needs them or when regular employees cannot satisfactorily do the work.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90216. The board may from time to time contract for or employ any professional service required by the district or for the performance of work or service which cannot satisfactorily be performed by the regular employees of the district. (Added by Stats. 1965, Ch. 2039.)
  139. 90217.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must have an annual audit made of the district’s books and accounts by a certified public accountant or public accountant.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90217. The board shall have an annual audit made of all books and accounts of the district by a certified public accountant or public accountant. (Added by Stats. 1965, Ch. 2039.)
  140. 90218.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board may authorize payment of district demands by resolution without prior specific board approval if the expense was already approved, stays within the approved amount, and is approved by the general manager.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90218. The board may provide by resolution, under such terms and conditions as it sees fit, for the payment of demands against the district without prior specific approval thereof by the board if the demand is for a purpose for which an expenditure has been previously approved by the board and in an amount no greater than the amount so authorized, and if the demand is approved by the general manager. (Added by Stats. 1965, Ch. 2039.)
  141. 90219.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board may create and manage district funds, and fund disbursements must follow board rules and be reported to the board.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 3. Powers and Duties of Directors [90210 - 90219] ( Article 3 added by Stats. 1965, Ch. 2039. ) ## 90219. To facilitate the business of the district, the board may provide for the creation and administration of such funds as the needs of the district may require. The funds shall be disbursed in accordance with rules established by the board and all payments for any fund shall be reported to the board. (Added by Stats. 1965, Ch. 2039.)
  142. 90240.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Board meetings must be conducted in the manner required by the Ralph M. Brown Act.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90240. All meetings of the board shall be conducted in a manner prescribed by the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950), Part 1, Division 2, Title 5 of the Government Code. (Added by Stats. 1965, Ch. 2039.)
  143. 90241.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    A majority of the board is enough to form a quorum for conducting business.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90241. A majority of the board constitutes a quorum for the transaction of business. (Added by Stats. 1965, Ch. 2039.)
  144. 90242.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must establish rules for its proceedings, and it may set member compensation and expense payments by ordinance or resolution.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90242. The board shall establish rules for its proceedings and may provide by ordinance or resolution that each member shall receive for each attendance at the meetings of the board and for each day any member is engaged in authorized district business other than attendance at meetings of the board the sum of fifty dollars ($50) but not to exceed two hundred dollars ($200) in any calendar month and shall be allowed such necessary traveling and personal expenses incurred in the performance of his duties as authorized by the board. (Added by Stats. 1965, Ch. 2039.)
  145. 90243.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must express its acts by motion, resolution, or ordinance, and ordinances need a majority affirmative vote of the directors to be valid.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90243. The acts of the board shall be expressed by motion, resolution, or ordinance. No ordinance shall be passed by the board on the day of its introduction, nor within seven days thereafter, nor at any time other than a regular or adjourned regular meeting. No ordinance, resolution, or motion shall have any validity or effect unless passed by the affirmative votes of a majority of the directors. (Added by Stats. 1965, Ch. 2039.)
  146. 90244.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Ordinances must be published after passage.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90244. All ordinances shall be published after passage. (Added by Stats. 1965, Ch. 2039.)
  147. 90245.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Ordinances must use the stated enacting clause, and each ordinance must be signed by the board’s president or vice president and attested by the secretary.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Meetings and Legislation [90240 - 90245] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90245. The enacting clause of all ordinances shall be as follows: “Be it ordained by the Board of Directors of the San Diego County Transit District.” All ordinances shall be signed by the president or vice president of the board and attested by the secretary. (Added by Stats. 1965, Ch. 2039.)
  148. 90260.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must appoint a general manager and set the manager’s salary.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90260. The board shall appoint and fix the salary of a general manager, who shall have full charge of the acquisition, construction, maintenance and operation of the facilities of the district and also of the administration of the business affairs of the district. (Added by Stats. 1965, Ch. 2039.)
  149. 90261.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must appoint a general manager, and should choose someone with experience in constructing or managing transit facilities when other things are equal.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90261. All other things being equal, the board shall appoint as general manager some person who has had experience in the construction or management of transit facilities. (Added by Stats. 1965, Ch. 2039.)
  150. 90262.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The general manager does not have to be a resident of the state when appointed.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90262. The general manager need not be a resident of this state at the time of his appointment. (Added by Stats. 1965, Ch. 2039.)
  151. 90263.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The general manager serves an indefinite term, and the board can remove or suspend the general manager only under stated voting and hearing conditions.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90263. The general manager shall hold office for an indefinite term and may be removed by the board only upon the adoption of a resolution by the affirmative vote of not less than a majority of the board. Before the general manager may be removed, he shall, if he demands it, be given a written statement of the reasons alleged for his removal and he shall have the right to be publicly heard thereon at a meeting of the board prior to the final vote on the resolution providing for his removal, but pending and during such hearing the board may suspend him from office. The board may not reduce the salary of the general manager below the amount fixed at the time of his original appointment except upon the adoption of a resolution by a like vote and after a like opportunity to be heard. The action of the board in suspending or removing the general manager or reducing his salary, if approved by a majority of the membership of the board is final. (Added by Stats. 1965, Ch. 2039.)
  152. 90264.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board may appoint a general manager during the district’s first six months of transit service operation, but it is not required to do so.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90264. Notwithstanding this article, until such time as the district has operated, controlled, or used facilities or parts of facilities for providing the inhabitants within the boundaries of the district with transit service for a period of six months, the board may, but is not required to, appoint a general manager. A general manager appointed during such time holds office at the pleasure of the majority of the board. (Added by Stats. 1965, Ch. 2039.)
  153. 90265.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must appoint a secretary and an attorney.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90265. The board shall appoint a secretary and an attorney, who shall hold office during the pleasure of the board. (Added by Stats. 1965, Ch. 2039.)
  154. 90266.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district attorney must be admitted to practice law in the state Supreme Court and must have at least five years of recent practice experience before appointment.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90266. The attorney shall be admitted to practice law in the Supreme Court of the state, and shall have been actively engaged in the practice of his profession for not less than five years next preceding his appointment. (Added by Stats. 1965, Ch. 2039.)
  155. 90267.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The secretary, and assistants the board chooses, may administer oaths and affirmations required by this act, including the oath of office.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90267. The secretary and such assistants as the board may determine, and shall have the power to administer all oaths or affirmations required by this act, including the oath of office. (Added by Stats. 1965, Ch. 2039.)
  156. 90268.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

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    The board may combine any district offices into one person.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90268. The board may consolidate any of the district offices in one person. (Added by Stats. 1965, Ch. 2039.)
  157. 90269.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Appointive officers of the district must take, sign, and file their oath with the district secretary after notice of appointment, and no later than 15 days after starting their term.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90269. The oath of all appointive officers of the district shall be taken, subscribed, and filed with the secretary of the district at any time after the officer has notice of his appointment but not later than 15 days after the commencement of his term of office. No other filing is required. (Added by Stats. 1965, Ch. 2039.)
  158. 90270.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

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    Each appointive officer must give a bond in an amount the board requires.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90270. Each appointive officer shall give such bond and in such amount as the board may require. (Added by Stats. 1965, Ch. 2039.)
  159. 90271.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The general manager is responsible for running district operations and reporting to the board, subject to the board’s control.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90271. Subject to the control of the board, the powers and duties of the general manager are: (a) To have full charge of the acquisition, construction, maintenance, and operation of the facilities of the district. (b) To have full charge of the administration of the business affairs of the district. (c) To see that all ordinances of the district are enforced. (d) To administer the personnel system and collective bargaining agreements adopted by the board and except for officers appointed by the board to appoint, discipline or remove all officers and employees subject to the rules and regulations adopted by the board and the applicable provisions of this part or the terms and conditions contained in any applicable collective bargaining agreement. (e) To attend all meetings of the board and submit a general report of the affairs of the district. (f) To keep the board advised as to the needs of the district. (g) To prepare or cause to be prepared all plans and specifications for the construction of the works of the district. (h) To devote his entire time to the business of the district. (i) To perform such other and additional duties as the board may require. (Added by Stats. 1965, Ch. 2039.)
  160. 90272.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The general manager must publish a financial report within 90 days after each fiscal year ends.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90272. The general manager shall within 90 days from the end of each fiscal year cause to be published a financial report showing the result of the operations for the preceding fiscal year and the financial status of the district on the last day thereof. The publication shall be made in the manner provided in this division for the publication of ordinances and notices generally. (Added by Stats. 1965, Ch. 2039.)
  161. 90273.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district attorney must handle the district’s legal matters and provide written advice when the board asks.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90273. The attorney shall take charge of all suits and other legal matters to which the district is a party or in which it is legally interested. He shall give his advice or opinion in writing whenever required by the board. He shall be the legal advisor of the general manager and other district officers and shall prepare or approve the forms of all ordinances, resolutions, contracts, bonds, and other legal documents connected with the business of the district. He shall perform such other and additional services as the board may require. (Added by Stats. 1965, Ch. 2039.)
  162. 90274.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The general manager must safeguard district funds and keep accounts of all receipts and disbursements. District payments may be made only on duly signed warrants.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90274. The general manager shall provide for the custody of the funds of the district and the keeping of accounts of all receipts and disbursements. Payments shall be made only upon warrants duly and regularly signed by the president or vice president of the board, or other person authorized by the board so to do, and by the general manager or secretary. (Added by Stats. 1965, Ch. 2039.)
  163. 90275.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    With board consent, the general manager may authorize a bank trust department or trust company to hold district securities, and may place district securities there for safekeeping.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90275. With the consent of the board, the general manager may: (a) Authorize the trust department of any state or national bank in this state or a trust company authorized to act as such in this state, to receive as his agent deposits of any securities acquired by the district. (b) Place and maintain for safekeeping as a trust deposit with the trust department of any state or national banks in this state, or a trust company authorized to act as such in this state, any securities owned by the district. The bank or trust company selected shall have a total paid-in capital of at least one million dollars ($1,000,000). The general manager shall take from the trust department or trust company a receipt for the securities, and neither the general manager nor the district is responsible for the custody and safe return of the securities until they are withdrawn from the trust department or trust company by the general manager. Any trust department or trust company to which securities are delivered, either as agent or depository for the general manager, shall make such disposition of the securities as the general manager directs and is responsible only for strict compliance with written instructions given to it by the general manager. All such securities are at all times subject to the order of the general manager. (Added by Stats. 1965, Ch. 2039.)
  164. 90300.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Employees have labor rights, and the district must follow collective-bargaining, non-discrimination, deduction, and coverage rules tied to labor relations.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 3. Internal Organization of District [90170 - 90300] ( Chapter 3 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Other Officers [90260 - 90300] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90300. (a) Employees have the right to self-organize, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. It is declared to be in the public interest that the district not express any preference for one union over another. (1) (A) Notwithstanding any other provision of this act, if a majority of the employees employed by a district in a unit appropriate for collective bargaining indicate a desire to be represented by a labor organization, then the district, after determining pursuant to subdivision (f) that the labor organization represents the employees in the appropriate unit, shall enter into a written contract with the accredited representative of those employees governing wages, salaries, hours, and working conditions. (B) (i) If a dispute arises over wages, salaries, hours, or working conditions that is not resolved by negotiations conducted in good faith between the district and the labor organization, then upon the request of either party, the district and the labor organization may submit the dispute to an arbitration board. The decision of a majority of the arbitration board shall be final. (ii) The arbitration board shall be composed of two representatives of the district, two representatives of the labor organization, and a fifth member to be agreed upon by the representatives of the district and labor organization. (iii) If the representatives of the district and labor organization are unable to agree on the fifth member, then the names of five persons experienced in labor arbitration shall be obtained from the California State Mediation and Conciliation Service. The labor organization and the district shall, alternately, strike a name from the list supplied by the California State Mediation and Conciliation Service. The labor organization and the district shall determine by lot who shall first strike a name from the list. After the labor organization and the district have stricken four names, the name remaining shall be designated as the arbitrator. The decision of a majority of the arbitration board shall be final and binding upon the parties. (iv) The expenses of arbitration shall be borne equally by the parties. Each party shall bear the party’s own costs. (b) If the board and the representatives of the employees do not agree to submit the dispute to an arbitration board as provided in subdivision (a), either party may notify the California State Mediation and Conciliation Service that a dispute exists and that there is no agreement to arbitrate. The California State Mediation and Conciliation Service shall determine whether or not the dispute can be resolved by the parties and, if not, the issues that are the subject of the dispute. After making its determination, the service shall certify its findings to the Governor who shall, within 10 days of receipt of certification, appoint a factfinding commission consisting of three persons. The factfinding commission shall immediately convene and investigate the issues involved in the dispute. The commission shall report to the Governor within 30 days of the date of its creation. (c) After the creation of the commission and for 30 days after the date the commission made its report to the Governor, the parties to the controversy shall not make any change, except by mutual agreement, in the conditions out of which the dispute arose. Service to the public shall be provided during that time. (d) A contract or agreement shall not be made, or assumed, with any labor organization, association, group, or individual that denies membership to, or in any manner discriminates against, any employee on any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code. However, the organization may preclude from membership any individual who advocates the overthrow of the government by force or violence. (e) The district shall not discriminate with regard to employment against any person on any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code, except as otherwise provided in Section 12940 of the Government Code. (f) (1) Any questions regarding whether a labor organization represents a majority of employees or whether the proposed unit is or is not appropriate, shall be submitted to the California State Mediation and Conciliation Service for disposition. The California State Mediation and Conciliation Service shall promptly hold a public hearing after due notice to all interested parties to determine the unit appropriate for the purposes of collective bargaining. In making that determination and in establishing rules and regulations governing petitions and the conduct of hearings and elections, the California State Mediation and Conciliation Service shall be guided by relevant federal law and administrative practice, developed under the Labor-Management Relations Act of 1947 (29 U.S.C. Sec. 141 et seq.). (2) The California State Mediation and Conciliation Service shall provide for an election to determine the question of representation and shall certify the results to the parties. A certification of a labor organization to represent or act for the employees in any collective bargaining unit shall not be subject to challenge on the grounds that a new substantial question of representation within the collective bargaining unit exists until the lapse of one year from the date of certification or the expiration of any collective bargaining agreement, whichever is later. However, no collective bargaining agreement shall be construed to be a bar to representation proceedings for a period of more than two years. (g) If the district acquires existing facilities from a publicly or privately owned public utility, either in proceedings by eminent domain or otherwise, the district shall assume and observe all existing labor contracts. (1) To the extent necessary for operation of facilities, all of the employees of the acquired public utility whose duties pertain to the facilities acquired shall be appointed to comparable positions in the district without examination, subject to all the rights and benefits of this act. Those employees shall be given sick leave, seniority, vacation, and pension credits in accordance with the records and labor agreements of the acquired public utility. (2) Members and beneficiaries of any pension or retirement system, or other benefits established by the public utility, shall continue to have the rights, privileges, benefits, obligations, and status with respect to the established system. No employee of any acquired public utility may be subject to a reduction in wages, seniority, pension, vacation, or other benefits as a result of the acquisition. (3) The district may extend the benefits of this section to officers or supervisory employees of the acquired utility. (h) The district shall not do any of the following: (1) Acquire any existing system or part of an existing system, whether by purchase, lease, condemnation, or otherwise. (2) Dispose of or lease any transit system or part of the transit system. (3) Merge, consolidate, or coordinate any transit system or part of the transit system. (4) Reduce or limit the lines or service of any existing system or of the district’s system unless the district has first made adequate provision for any employees who are or may be displaced. The terms and conditions of that provision shall be a proper subject of collective bargaining. (i) Notwithstanding any provision of the Government Code, the district may make deductions from the wages and salaries of its employees who authorize the deductions for the following purposes: (1) Pursuant to a collective bargaining agreement with a duly designated or certified labor organization, for the payment of union dues, fees, or assessments. (2) For the payment of contributions pursuant to any health and welfare plan, or pension or retirement plan. (3) For any purpose for which employees of any private employer may authorize deductions. (j) (1) The obligation of the district to bargain in good faith with a duly designated or certified labor organization and to execute a written collective bargaining agreement with that labor organization covering the wages, hours, and working conditions of the employees represented by that labor organization in an appropriate unit, and to comply with the terms of the collective bargaining agreement, shall not be limited or restricted by any provision of law. The obligation of the district to bargain collectively shall extend to all subjects of collective bargaining that are or may be proper subjects of collective bargaining with a private employer, including retroactive provisions. (2) Notwithstanding any other provision of law, the district shall make deductions from the wages and salaries of its employees, upon receipt of authorization to make those deductions, for the payment of union dues, fees, or assessments, for the payment of contributions pursuant to any health and welfare plan or pension plan, or for any other purpose for which employees of any private employer may authorize deductions, where those deductions are pursuant to a collective bargaining agreement with a duly designated or certified labor organization. (k) The district may provide for a retirement system, provided that the adoption, terms, and conditions of any retirement system covering employees of the district represented by a labor organization in accordance with this section shall be pursuant to a collective bargaining agreement between the labor organization and the district. (l) The district shall take any steps that may be necessary to obtain coverage for the district and its employees under Title II of the Federal Social Security Act (42 U.S.C. Sec. 401 et seq.), and the related provisions of the Federal Insurance Contributions Act (26 U.S.C. Sec. 3101 et seq.). (m) The district shall take any steps that may be necessary to obtain coverage for the district and its employees under the workers’ compensation (Division 4 (commencing with Section 3200) and Division 4.5 (commencing with Section 6100) of the Labor Code), unemployment compensation disability (Part 2 (commencing with Section 2691) of Division 1 of the Unemployment Insurance Code), and unemployment insurance (Part 1 (commencing with Section 100) of Division 1 of the Unemployment Insurance Code) laws of the State of California. (Amended by Stats. 2012, Ch. 46, Sec. 127. (SB 1038) Effective June 27, 2012.)
  165. 90350.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 5. Retirement System [90350 - 90351] ( Chapter 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may contract with the State Employees’ Retirement System and may provide retirement and disability benefits for employees under that system, following its rules and regulations.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 5. Retirement System [90350 - 90351] ( Chapter 5 added by Stats. 1965, Ch. 2039. ) ## 90350. The district is empowered to contract with the State Employees’ Retirement System and may provide retirement and disability benefits for employees under the State Employees’ Retirement System pursuant to its rules and regulations. (Added by Stats. 1965, Ch. 2039.)
  166. 90351.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 5. Retirement System [90350 - 90351] ( Chapter 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    When the district acquires a utility’s facilities, existing pension-plan members and beneficiaries keep their rights and related status, and the board must factor the utility’s pension obligations into the purchase price negotiations.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 5. Retirement System [90350 - 90351] ( Chapter 5 added by Stats. 1965, Ch. 2039. ) ## 90351. Whenever the district acquires existing facilities from a publicly or privately owned public utility, either in proceedings in eminent domain or otherwise, that has a pension plan in operation, members and beneficiaries of such pension plan shall continue to have the rights, privileges, benefits, obligations and status with respect to such established system. Whenever any such facilities are acquired by the district, the board shall consider and take into account the outstanding obligations and liabilities of the publicly or privately owned public utility by reason of such pension plan and shall negotiate an allowance in the purchase price of such utility for the assumption of such obligations and liabilities when acquiring the facilities. (Added by Stats. 1965, Ch. 2039.)
  167. 90400.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district has perpetual succession and may adopt and change its seal at will.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90400. The district has perpetual succession and may adopt a seal and alter it at pleasure. (Added by Stats. 1965, Ch. 2039.)
  168. 90401.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may sue and be sued in competent courts and tribunals, unless another law provides otherwise.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90401. The district may sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction. (Added by Stats. 1965, Ch. 2039.)
  169. 90402.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may use eminent domain, but must pay relocation-related public utility costs and cannot take railroad property for such purposes unless the Public Utilities Commission makes the required findings after a hearing.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 1. Corporate Power [90400 - 90402] ( Article 1 added by Stats. 1965, Ch. 2039. ) ## 90402. The district may exercise the right of eminent domain to take any property necessary or convenient to the exercise of the powers granted in this act. The district, in exercising such power shall, in addition to the damage for the taking, injury, or destruction of property, also pay the cost of removal, reconstruction, or relocation of any structure, railways, mains, pipes, conduits, cables, or poles of any public utility which is required to be moved to a new location. No such taking or acquisition by the district which would involve the abandonment, removal, relocation or use of the property of a railroad corporation, as defined in Section 230 of this code, shall be permitted, unless the Public Utilities Commission, after hearing, shall find and determine that the public interest and necessity require the abandonment, removal, relocation or use of such property and that such taking or acquisition will not unreasonably impair the ability of the railroad corporation involved to provide safe, adequate, economical and efficient service. (Amended by Stats. 1975, Ch. 1176.)
  170. 90420.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may make contracts and stipulations, including to indemnify and save harmless, employ labor, and do acts needed to carry out its powers.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90420. The district may make contracts and enter into stipulations of any nature whatsoever, either in connection with eminent domain proceedings or otherwise, including, without limiting the generality of the foregoing, contracts and stipulations to indemnify and save harmless, to employ labor, and to do all acts necessary and convenient for the full exercise of the powers granted in this act. (Added by Stats. 1965, Ch. 2039.)
  171. 90420.5.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may furnish contractual service outside its boundaries.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90420.5. The district further shall be empowered to furnish contractual service outside of the district’s boundaries. (Added by Stats. 1965, Ch. 2039.)
  172. 90421.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district’s general manager and directors must not have a direct or indirect interest in district contracts or the profits from them.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 2. Contracts [90420 - 90421] ( Article 2 added by Stats. 1965, Ch. 2039. ) ## 90421. Neither the general manager nor any director of the district shall in any manner be interested, directly or indirectly, in any contract awarded or to be awarded by the board, or in the profits to be derived therefrom. Any violation of this provision is a misdemeanor, and conviction shall work a forfeiture of office. This section has no application to contracts awarded to corporations in which such officer owns less than 1 percent of the entire capital stock. (Added by Stats. 1965, Ch. 2039.)
  173. 90460.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Property [90460 - 90461] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may acquire, hold, and use property, and the board may lease, mortgage, sell, or otherwise dispose of property when it thinks doing so is in the district’s best interests.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Property [90460 - 90461] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90460. The district may take by grant, purchase, gift, devise, or lease, or condemn in proceedings under eminent domain, or otherwise acquire, and hold and enjoy, real and personal property of every kind within or without the district necessary to the full or convenient exercise of its powers. The board may lease, mortgage, sell, or otherwise dispose of any real or personal property within or without the district when in its judgment it is for the best interests of the district so to do. (Added by Stats. 1965, Ch. 2039.)
  174. 90461.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Property [90460 - 90461] ( Article 4 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    If the board decides by resolution that a record, map, book, or paper is no longer useful to the district, it may authorize sale, destruction, or another disposition of it.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 4. Property [90460 - 90461] ( Article 4 added by Stats. 1965, Ch. 2039. ) ## 90461. Whenever the board by resolution determines that any record, map, book or paper in the possession of the district or any officer or employee thereof is of no further value to the district, the board may authorize its sale, destruction, or other disposition. (Added by Stats. 1965, Ch. 2039.)
  175. 90480.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may build, own, operate, and use transit facilities and related structures, and may obtain interests for joint use; freeway installations need approval from the State Department of Public Works, and other state-highway installations must follow a specified Highway Code article.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90480. The district may acquire, construct, own, operate, control or use rights-of-way, rail lines, buslines, stations, platforms, switches, yards, terminals, and any and all such other facilities necessary or convenient for transit service within or partly without the district, underground, upon, or above the ground and under, upon, or over public streets or other public ways or waterways, together with all physical structures necessary or convenient for the access of persons and vehicles thereto, and may acquire any interest in or rights to the joint use of any or all of the foregoing; provided, that installations in state freeways shall be subject to the approval of the State Department of Public Works and installations in other state highways shall be subject to Article 2 (commencing with Section 670), Chapter 3, Division 1 of the Streets and Highways Code. (Added by Stats. 1965, Ch. 2039.)
  176. 90480.5.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may not negotiate a purchase price for acquired existing facilities that is higher than the fair market value of the tangible real and personal property acquired.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90480.5. The negotiated purchase price of any existing facilities which are acquired by the district shall not exceed the fair market value of the tangible real and personal property which is acquired. (Added by Stats. 1965, Ch. 2039.)
  177. 90481.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may accept contributions and enter into contracts or cooperation arrangements for transit facilities and related financing.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90481. The district may without limitation by any other provisions of this part requiring approval of indebtedness, accept contributions of money, rights-of-way, labor, materials, and any other property for the acquisition, construction, maintenance, and operation of transit facilities, and may without limitation by any other provisions of this part enter into any contracts and cooperation with and accept cooperation from the federal government, state, or any department, instrumentality, or agency thereof, or any public agency in the acquisition, construction, maintenance, and operation of, and in financing the acquisition, construction, maintenance, and operation of, any such transit facilities. (Added by Stats. 1965, Ch. 2039.)
  178. 90482.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may plan, build, finance, and operate rapid transit facilities and service, inside or outside its boundaries, and may make necessary contracts for that purpose.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90482. The district may plan for, establish, construct, finance and operate rapid transit facilities and service within or without the district’s boundaries, including making whatever contracts are necessary for the accomplishment of this purpose. (Added by Stats. 1965, Ch. 2039.)
  179. 90484.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may build, operate, or acquire works and facilities in specified locations, but it must not use any street or public highway in a way that unnecessarily impairs usefulness.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90484. The district may construct and operate or acquire and operate works and facilities in, under, upon, over, across, or along any street or public highway or any stream, bay or watercourse, or over any of the lands which are the property of the state, to the same extent that such rights and privileges appertaining thereto are granted to municipalities within the state. The district shall not use any street or public highway in a manner to unnecessarily impair its usefulness. (Added by Stats. 1965, Ch. 2039.)
  180. 90485.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may make agreements with cities, public agencies, or public utilities to share property or rights and to arrange transit coordination.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90485. The district may enter into agreements for the joint use of any property and rights by the district and any city, public agency or public utility operating transit facilities; may enter into agreements with any city, public agency or public utility operating any transit facilities, either wholly or partially within, or without, the district, for the joint use of any property of the district or of such city, public agency or public utility, or the establishment of through routes, joint fares, transfer of passengers or pooling arrangements. (Added by Stats. 1965, Ch. 2039.)
  181. 90486.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must fix the rates and charges for service under this act, and they must be reasonable.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90486. The rates and charges for service furnished pursuant to this act shall be fixed by the board and shall be reasonable. (Added by Stats. 1965, Ch. 2039.)
  182. 90487.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Some local government bodies may request a hearing about district rates, charges, or facility locations, and the request must be written and state the subject matter.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90487. The board of supervisors or the city council of a municipality having territory located within the district may file a request for a hearing before the district board as to the reasonableness of any rates or charges fixed by the district and as to any proposal for fixing the location of facilities by the district. The request shall be in writing and shall state the subject matter on which a hearing is desired. (Added by Stats. 1965, Ch. 2039.)
  183. 90488.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    After a hearing request is filed, the district board must set the hearing’s time and place, with the hearing date between 15 and 60 days from filing, and must give and publish notice.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90488. Upon the filing of a request for hearing as provided in Section 90487 the district board shall fix the time and place for hearing. The time fixed shall not be less than 15 days nor more than 60 days from the date such request is filed. Notice of such hearing shall be given to the county or city requesting such hearing and shall be published by the board. (Added by Stats. 1965, Ch. 2039.)
  184. 90489.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    At the time set for a hearing, an eligible board of supervisors or city council that was not part of the original hearing request may intervene and be heard, and may introduce evidence.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90489. At the time fixed for any hearing before the board any board of supervisors or city council eligible to file a request for hearing, not a party to the original request for hearing, may intervene and shall be entitled to be heard and to introduce evidence. (Added by Stats. 1965, Ch. 2039.)
  185. 90490.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The board must issue its decision within 30 days after the case is submitted, and that decision is final.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 5. Transit Facilities and Service [90480 - 90490] ( Article 5 added by Stats. 1965, Ch. 2039. ) ## 90490. Within 30 days after submission of the case, the board shall render its decision and its decision shall be final. (Added by Stats. 1965, Ch. 2039.)
  186. 90500.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    The district may borrow money, incur indebtedness, and issue bonds, but debt above its ordinary annual income and revenue needs approval from 60% of voting voters.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90500. The district may borrow money and incur indebtedness, and may issue bonds or other evidences of indebtedness. No indebtedness shall be incurred exceeding the ordinary annual income and revenue of the district without the approval of 60 percent of the voters voting on the proposition to incur such indebtedness, except that a further vote of the voters is not required for any indebtedness incurred within the purposes and not exceeding the available amount of any previously authorized bond issue, and as to such indebtedness the proceeds of any of the bonds unexpended in the treasury of the district, or the par value of any of the bonds which are unsold shall be deemed a part of the ordinary annual income and revenue of the district. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 102.)
  187. 90501.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district may borrow money before tax levy funds are received, within a stated cap, and may issue notes with interest capped at 6% per year.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90501. The district may borrow money for the purpose of defraying the expenses of the district lawfully incurred after the commencement of the fiscal year, but prior to the time moneys from the tax levy for the fiscal year are received by the district, in a sum which shall not exceed five cents ($0.05) on each one hundred dollars ($100) of assessed valuation of taxable property in the district at the time the moneys are borrowed, and may evidence such borrowing by notes bearing interest at a rate not to exceed six (6) percent per annum. The notes shall be payable from the tax levy from the then current fiscal year, which levy shall contain a sum sufficient to provide for the payment of the notes and the interest thereon. The form of said notes and the proceedings relating to their issuance and sale, will be governed by the applicable provisions contained in Article 7 (commencing with Section 53820) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code. (Added by Stats. 1965, Ch. 2039.)
  188. 90501.5.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district’s board may borrow money for initial expenses, but only within two years after the district is formed and up to a stated interest and amount cap.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90501.5. The board of directors of the district may, within a period of two years from and after the formation of the district, pursuant to a resolution adopted by it for the purpose, borrow money on certificates of indebtedness, promissory notes, or other evidences of indebtedness, in anticipation of the estimated tax revenue for the following fiscal year, to be repaid within four years from the date of borrowing with interest at a rate not to exceed 6 percent per annum, in order to enable the district to meet all of its necessary initial expenses of organization, construction, acquisition, maintenance, and operation. The total amount of money borrowed and indebtedness incurred under this section during this two-year period shall not exceed 50 percent of the total amount of estimated tax revenue as estimated by the county auditor of the county in which the district lies for the following fiscal year. The form of said notes and the proceedings relating to their issuance and sale, will be governed by the applicable provisions contained in Article 7 (commencing with Section 53820) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code. (Added by Stats. 1965, Ch. 2039.)
  189. 90502.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district may not incur public-works debt that is more than 15% of the assessed value of all real and personal property in the district.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90502. The district shall not incur an indebtedness for public works which in the aggregate exceeds 15 percent of the assessed value of all the real and personal property within the district. (Added by Stats. 1965, Ch. 2039.)
  190. 90503.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    Some transit-facility indebtedness is excluded from the district’s debt limit if the facilities’ revenue for the prior three years or more has been enough to cover bond interest and principal plus operation and maintenance costs.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90503. Indebtedness which has been incurred for the acquisition, construction, and operation of transit facilities, where the revenue from the transit facilities for three years or more next preceding has been sufficient to pay the interest and principal due on any bonds issued for its construction or acquisition, in addition to the cost of operation and maintenance, shall not be counted and included in ascertaining the limit of indebtedness. (Added by Stats. 1965, Ch. 2039.)
  191. 90504.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district may accept certain contributions or loans, make contracts, cooperate with government entities, and do necessary things to use aid for transit facilities.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90504. The district may accept, without limitation by any other provisions of this act requiring approval of indebtedness, contributions or loans from the United States, this state, or any department, instrumentality, or agency of either thereof, for the purpose of financing the acquisition, construction, maintenance, and operation of transit facilities, and may enter into contracts and cooperate with, and accept cooperation from, the United States, this state, or any department, instrumentality, or agency of either thereof, in the acquisition, construction, maintenance, and operation, and in financing the acquisition, construction, maintenance, and operation, of any such transit facilities in accordance with any legislation which Congress or the Legislature of the State of California may have heretofore adopted or may hereafter adopt, under which aid, assistance, and cooperation may be furnished by the United States or this state in the acquisition, construction, maintenance, and operation of any such transit facilities. The district may do any and all things necessary in order to avail itself of such aid, assistance, and cooperation under any federal or state legislation now or hereafter enacted. Any evidence of indebtedness issued under this section shall constitute a negotiable instrument. (Added by Stats. 1965, Ch. 2039.)
  192. 90505.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district may buy equipment, enter related financing documents, and sell equipment trust certificates. Certain payments must come only from transit revenues or from grants and loans under Section 90504, and title to the equipment does not pass to the district until the certificates are paid.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90505. The district may purchase equipment such as cars, trolley buses and motorbuses, and rolling equipment, and may execute agreements, leases and equipment trust certificates in the forms customarily used by private corporations engaged in the transit business appropriate to effect the purchase and leasing of rolling equipment and may dispose of the equipment trust certificates upon the terms and conditions as the board may deem appropriate. All money required to be paid by the district pursuant to the agreements, leases and equipment trust certificates provided for in this section shall be payable solely from the revenues or income to be derived from the transit facilities and from grants and loans as provided in Section 90504. Payment for equipment, or the rental of equipment, may be made in installments and the deferred installments may be evidenced by equipment trust certificates payable solely from revenue or income as provided in this section, and title to the equipment shall not vest in the district until the equipment trust certificates are paid. (Added by Stats. 1965, Ch. 2039.)
  193. 90506.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    An equipment purchase or lease agreement may direct how rolling equipment is assigned, held in trust, delivered, and later leased or purchased by the district.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90506. The agreement to purchase or lease may direct the vendor or lessor to sell and assign or lease the rolling equipment to a bank or trust company, duly authorized to transact business in the State of California, as trustee, for the benefit and security of the equipment trust certificates and may direct the trustee to deliver the rolling equipment to one or more designated officers of the district and may authorize the district to simultaneously execute and deliver an installment purchase agreement or a lease of the equipment to the district. (Added by Stats. 1965, Ch. 2039.)
  194. 90507.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

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    The district must authorize agreements, leases, and equipment trust certificates by resolution.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90507. The agreements and leases shall be duly acknowledged before a person authorized by law to take acknowledgments of deeds and in the form required for acknowledgment of deeds. The agreements, leases, and equipment trust certificates shall be authorized by resolution of the district and shall contain such covenants, conditions and provisions as may be deemed necessary or appropriate to insure the payment of the equipment trust certificates from the revenue or income to be derived from the transit system. (Added by Stats. 1965, Ch. 2039.)
  195. 90508.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. )

    Verify source ↗

    Agreements, leases, and equipment trust certificates for the district must not conflict with any trust agreement securing district bonds, notes, or certificates.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 6. Indebtedness [90500 - 90508] ( Article 6 added by Stats. 1965, Ch. 2039. ) ## 90508. The covenants, conditions and provisions of the agreements, leases, and equipment trust certificates shall not conflict with any of the provisions of any trust agreement securing the payment of bonds, notes or certificates of the district. (Added by Stats. 1965, Ch. 2039.)
  196. 90520.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. )

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    The district may invest surplus treasury money, including sinking fund money, in listed securities and obligations.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. ) ## 90520. The district may invest any surplus money in its treasury, including money in any sinking fund, in any of the following: (a) Its own bonds. (b) Treasury notes, certificates of indebtedness, bills, bonds of the United States, or any other evidence of indebtedness secured by the full faith and credit of the United States. (c) Obligations issued pursuant to the Federal Home Loan Bank Act (12 U.S.C. Sec. 1421) or the National Housing Act (12 U.S.C. Sec. 1701). (d) Treasury notes or bonds of this state, or of any public corporation, municipal corporation, public district, or political subdivision within this state which are legal as security for the deposit of public funds. (Added by Stats. 1965, Ch. 2039.)
  197. 90521.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. )

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    The district may invest by directly purchasing bonds, treasury notes, or obligations, either at original sale or later by purchase.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. ) ## 90521. Such investment may be made by direct purchase of any issue of such bonds, treasury notes, or obligations, or part thereof, at the original sale or by the subsequent purchase of the bonds, treasury notes, or obligations. (Added by Stats. 1965, Ch. 2039.)
  198. 90522.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. )

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    The district may sell investment bonds, treasury notes, or obligations and reinvest the proceeds in similar investments.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 7. Investments [90520 - 90522] ( Article 7 added by Stats. 1965, Ch. 2039. ) ## 90522. Any bonds, treasury notes, or obligations purchased and held as investments by the district may from time to time be sold and the proceeds reinvested in bonds, treasury notes, or obligations as provided in this article. (Added by Stats. 1965, Ch. 2039.)
  199. 90540.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 8. Taxation [90540 - 90552] ( Article 8 added by Stats. 1965, Ch. 2039. )

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    A district may levy and collect taxes, or have them collected, for any lawful purpose.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 8. Taxation [90540 - 90552] ( Article 8 added by Stats. 1965, Ch. 2039. ) ## 90540. A district may levy, and collect or cause to be collected, taxes for any lawful purpose. (Added by Stats. 1965, Ch. 2039.)
  200. 90541.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 8. Taxation [90540 - 90552] ( Article 8 added by Stats. 1965, Ch. 2039. )

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    If the board thinks revenues will not be enough for lawful purposes, it must levy a tax and set the amount needed.

    ## Public Utilities Code - PUC ## DIVISION 10. TRANSIT DISTRICTS [24501 - 107025] ( Division 10 repealed and added by Stats. 1955, Ch. 1036. ) ## PART 8. SAN DIEGO COUNTY TRANSIT DISTRICT [90000 - 93017] ( Part 8 added by Stats. 1965, Ch. 2039. ) ## CHAPTER 6. Powers and Functions of District [90400 - 90570] ( Chapter 6 added by Stats. 1965, Ch. 2039. ) ## ARTICLE 8. Taxation [90540 - 90552] ( Article 8 added by Stats. 1965, Ch. 2039. ) ## 90541. If, in the opinion of the board, the revenues will not be sufficient for any and all lawful purposes, the board shall levy a tax for such purpose or purposes and fix the amount of money necessary to be raised therefor by taxation. (Added by Stats. 1965, Ch. 2039.)

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