BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2903|
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THIRD READING
Bill No: AB 2903
Author: Committee on Utilities and Commerce
Introduced:3/3/16
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 6/13/16
AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,
Leyva, McGuire, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 79-0, 5/5/16 (Consent) - See last page for
vote
SUBJECT: Wharfingers: warehouseman: California Consumer
Power and Conservation Financing Authority: energy
crisis litigation
SOURCE: Author
DIGEST: This bill makes several technical, noncontroversial
changes to statute, including deletion of reference to a state
agency that no longer exists; explicitly directs the Attorney
General (AG) to succeed the no-longer-existing agency; and
deletes obsolete references to the authority of a wharfinger and
a warehouseman to condemn property.
ANALYSIS:
Existing law:
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1)Applies rights and obligations with respect to eminent domain
only to a corporation or a person that is a public utility.
(Public Utilities Code §§610 through 626).
2)Authorizes a wharfinger to condemn any property necessary for
the construction and maintenance of facilities for the receipt
or discharge of freight or passengers. (Public Utilities Code
§619)
3)Authorizes a warehouseman to condemn any property necessary
for the construction and maintenance of its facilities for
storing property. (Public Utilities Code §623)
4)Requires the AG to represent the Department of Finance to
succeed to, and may exercise, all rights, claims, powers, and
entitlements of the Electricity Oversight Board in any
litigation or settlement related to the 2000-02 energy crisis,
as specified. (Public Utilities Code §343)
5)Establishes the California Consumer Power and Conservation
Financing Authority (CPA) to provide the state with reliable,
affordable electrical power, to ensure sufficient power
reserves, to assure stability and rationality in California's
electricity market, to encourage energy efficiency and
conservation as well as the use of renewable energy resources,
and to protect the public health, welfare, and safety.
(Public Utilities Code §3300 et seq.)
6)Sunsets the CPA's authority to finance or approve any new
program, enterprise, or project on January 1, 2007.
This bill:
1)Repeals the California Consumer Power and Conservation
Financing Authority Act.
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2)Requires the AG to represent the Department of Finance and to
succeed all rights, claims, powers, and entitlements of the
CPA in any litigation or settlement relating to the 2000-02
energy crisis.
3)Deletes the authority for a warehouseman to condemn property
necessary for the construction and maintenance of facilities
for storing property.
4)Deletes the authority for a wharfinger to condemn property
necessary for the construction and maintenance of facilities
for the receipt or discharge of freight or passengers.
Background
CPA. The CPA was established in 2001 under SBX1 6 (Burton,
Chapter 10, Statutes of 2001-02 First Extraordinary Session).
The CPA was created to ensure the state had reliable, affordable
electrical power, establish sufficient power reserves, assure
stability and rationality in the state's electricity market,
encourage energy efficiency and conservation as well as the use
of renewable energy resources, and protect the public health,
welfare, and safety. The CPA was authorized to issue up to $5
billion in revenue bonds to finance such activities. The CPA's
authority to finance or approve any new program, enterprise, or
project sunset on January 1, 2007.
This bill repeals the CPA and its authorities from statute.
This bill also requires the AG to succeed to the CPA and
authorizes the AG to exercise all rights, claims, powers and
entitlements of the CPA. This requirement and authority mirrors
statutory requirements and authorities made of and given to the
AG in relation to the Energy Oversight Board, another defunct
state agency.
Word of the day: wharfinger. Once upon a time, state law
classified a warehouseman - the operator of a warehouse - and a
wharfinger - the operator of a wharf - as a public utility,
thus, each subject California Public Utilities Commission
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regulation. Alas, woe the warehouseman! Woe the wharfinger!
In the 1980s, the Legislature twice amended statute so that,
first the warehouseman, then the wharfinger, was no longer a
public utility. However, the Legislature left intact sections
of the Public Utilities Code granting warehousemen and
wharfingers the power to condemn property for purposes of
eminent domain. This bill deletes those obsolete statutory
references.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified6/29/16)
None received
OPPOSITION: (Verified6/29/16)
None received
ASSEMBLY FLOOR: 79-0, 5/5/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Beth Gaines
Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
AB 2903
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6/29/16 15:50:34
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