Bill Text: CA SB1383 | 2011-2012 | Regular Session | Amended
Bill Title: Local government: sales of specific water utility
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2012-08-16 - Referred to Com. on L. GOV. Joint Rule 62(a) file notice suspended. (Page 5974.) [SB1383 Detail]
Download: California-2011-SB1383-Amended.html
BILL NUMBER: SB 1383 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 20, 2012
INTRODUCED BY Senator Hernandez
FEBRUARY 24, 2012
An act to add and repeal Section 37420.5
37350.3 of the Government Code, relating to local government
water utilities, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1383, as amended, Hernandez. Local government: sales of
specific water utility property.
Existing law provides a procedure that is generally
applicable for a city to sell its real property that a
city may purchase, lease, receive, hold, and enjoy real and personal
property, and control and dispose of it for the common benefit
. Other existing law establishes specific procedures for sale of
public utility property owned by a municipal corporation, with
special provisions that are applicable to the sale of property of a
water utility.
This bill would, notwithstanding any other law,
until January 1, 2014, authorize the City of El Monte in the County
of Los Angeles, which owns and operates a public utility for
furnishing water service, to sell or transfer all or any part of the
utility pursuant to the procedures that are generally
applicable to a sale of real property by a city , as
prescribed, if certain requirements are met.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of El Monte.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 37420.5 is added to the
Government Code, to read:
37420.5. (a) Notwithstanding any other law, the City of El Monte
in the County of Los Angeles, which owns and operates a public
utility for furnishing water service, may sell or transfer all or any
part of the public utility pursuant to this article or Article 1
(commencing with Section 37350), subject to the following
requirements:
(1) The legislative body of the City of El Monte shall not sell
the water utility property for less than its fair market value,
determined in accordance with the Public Water System Investment and
Consolidation Act of 1997 (Chapter 2.5 (commencing with Section 2718)
of Part 2 of Division 1 of the Public Utilities Code).
(2) The entity acquiring the City of El Monte's water utility
property shall be a water corporation, as defined in Section 241 of
the Public Utilities Code, that, at the time of the sale or transfer,
is authorized by the Public Utilities Commission to provide water
service to at least 50 percent of the area within the corporate
limits of the city, and maintains its corporate headquarters within
the corporate limits of the city.
(3) Upon acquiring the City of El Monte's water system, the
acquiring water corporation assumes the obligation to provide water
service to all persons in the area formerly served through the water
system being sold by the city on the same terms and conditions that
the Public Utilities Commission has found to be just and reasonable
for the acquiring water corporation's other customers in the city and
that do not unlawfully discriminate against the previous customers
of the city's water system.
(b) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the date on which it is repealed.
SECTION 1. Section 37350.3 is added to the
Government Code , to read:
37350.3. (a) Notwithstanding Article 2 (commencing with Section
10051) of Chapter 1 of Division 5 of the Public Utilities Code, the
City of El Monte in the County of Los Angeles, which owns and
operates a public utility for furnishing water service, may sell or
transfer all or any part of the public utility pursuant to this
article, subject to the following requirements:
(1) The legislative body of the City of El Monte shall not sell
the water utility property for less than its fair market value,
determined in accordance with the Public Water System Investment and
Consolidation Act of 1997 (Chapter 2.5 (commencing with Section 2718)
of Part 2 of Division 1 of the Public Utilities Code).
(2) If the entity that acquires the City of El Monte's water
utility property is a water corporation, as defined in Section 241 of
the Public Utilities Code, that at the time of sale or transfer is
authorized by the Public Utilities Commission to provide water
service within the corporate limits of the city, the acquiring water
corporation must assume the obligation to provide water service to
all persons in the area formerly served through the water system
being sold by the city on the same terms and conditions that the
Public Utilities Commission has found to be just and reasonable for
the acquiring water corporation's other customers in the city and
that do not unlawfully discriminate against the previous customers of
the city's water system.
(b) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the date on which it is repealed.
SEC. 2. The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of unique circumstances applicable to the City of El Monte in
the County of Los Angeles, which owns a water utility that the city'
s legislative body finds is no longer in the public interest to own
and operate and desires to sell, but is unable to do so in a timely
manner because statutes authorizing the sale of city property appear
to conflict with one another, preventing the city from selling the
water utility without an election. In order to enable the city in
these special circumstances to timely complete a sale of property in
the public interest, a statute of general applicability cannot be
enacted within the meaning of subdivision (b) of Section 16 of
Article IV of the California Constitution, and therefore this special
statute is necessary.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to provide the City of El Monte in the County of Los
Angeles with the clear authority to sell a city-owned water utility
while financial conditions are favorable to the city and the sale is
in the public interest, it is necessary for this act to take effect
immediately.
