BILL NUMBER: SB 697	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 27, 2015

   An act to amend Section 1904 of, and to repeal Section 1906 of,
the Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 697, as introduced, Hertzberg. Public utilities: certificates
of public convenience and necessity: fees.
   The Public Utilities Act prohibits any street railroad
corporation, gas corporation, electrical corporation, telegraph
corporation, telephone corporation, water corporation, or sewer
system corporation from beginning the construction of, among other
things, a line, plant, or system, or of any extension thereof,
without having first obtained from the Public Utilities Commission a
certificate that the present or future public convenience and
necessity require or will require that construction (certificate of
public convenience and necessity). Existing law provides that each
application for a certificate of public convenience and necessity be
accompanied by a fee of $500, unless the applicant is already
operating in the immediate vicinity under the jurisdiction of the
commission. Other existing law requires the commission to charge and
collect a fee of $75 for each application for a certificate of public
convenience and necessity, or for the mortgage, lease, transfer, or
assignment thereof, except for those applications for a certificate
that are required to be accompanied by a fee of $500.
   This bill would require the commission to charge and collect a fee
of $500 for each application for a certificate of public convenience
and necessity, or for the mortgage, lease, transfer, or assignment
thereof.
   Existing law establishes the Public Utilities Commission Utilities
Reimbursement Account in the General Fund and generally provides
that all fees and charges collected under the Public Utilities Code,
except penalties, from each public utility be paid into the fund.
    Other existing law provides that specified fees, including the
fee for filing each application for a certificate of public
convenience and necessity, or for the mortgage, lease, transfer, or
assignment of a certificate, and fees charged for preparation of
certain official documents, are required to be paid at least once
each month into the State Treasury to the credit of the General Fund.

   This bill would repeal the provision that requires certain fees to
be paid at least once each month into the State Treasury to the
credit of the General Fund.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 1904 of the Public Utilities Code is amended to
read:
   1904.  The commission shall also charge and collect the following
fees:
   (a) Except as otherwise provided in Section 1036 for filing each
application for a certificate of public convenience and necessity, or
for the mortgage, lease, transfer, or assignment thereof, 
seventy-five dollars ($75).   five hundred dollars
($500). The commission may adjust this fee based on the Consumer
Price Index. The fee charged and collected pursuant to this
subdivision shall not exceed the reasonable costs to process the
application. 
   (b) For a certificate authorizing an issue of bonds, notes, or
other evidences of indebtedness, two dollars ($2) for each one
thousand dollars ($1,000) of the face value of the authorized issue
or fraction thereof up to one million dollars ($1,000,000), one
dollar ($1) for each one thousand dollars ($1,000) over one million
dollars ($1,000,000) and up to ten million dollars ($10,000,000), and
fifty cents ($0.50) for each one thousand dollars ($1,000) over ten
million dollars ($10,000,000), with a minimum fee in any case of
fifty dollars ($50). No fee need be paid on such portion of any such
issue as may be used to guarantee, take over, refund, discharge, or
retire any stock, bond, note or other evidence of indebtedness on
which a fee has theretofore been paid to the commission. If the
commission modified the amount of the issue requested in any case and
the applicant thereupon elects not to avail itself of the commission'
s authorization, no fee shall be paid, and if such fee is paid prior
to the issuance of such certificate by the commission, such fee shall
be returned.
  SEC. 2.  Section 1906 of the Public Utilities Code is repealed.

   1906.  All fees collected under this chapter shall be paid, except
as provided in Chapter 6 (commencing with Section 5001) of Division
2, at least once each month into the State Treasury to the credit of
the General Fund.