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AB-1145 Compensation of utilities for relocation costs.(2017-2018)

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Date Published: 04/17/2017 09:00 PM
AB1145:v98#DOCUMENT

Amended  IN  Assembly  April 17, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1145


Introduced by Assembly Member Quirk

February 17, 2017


An act to add Chapter 2 (commencing with Section 7010) to Division 3.5 of the Public Utilities Code, and to amend Sections 5896.2, 5896.9, 5896.10, and 5896.14 of, and to add Section 5896.12 to, the Streets and Highways Code, relating to utility relocation costs.


LEGISLATIVE COUNSEL'S DIGEST


AB 1145, as amended, Quirk. Compensation of utilities for relocation costs.
Existing law authorizes a relocation agreement between certain utilities, cable television corporations, or cable operators and the Santa Clara Valley Transportation Authority, entered into in connection with a transit or transportation capital improvement project.
This bill would, unless otherwise prohibited by law or expressly governed by a contract in force as of January 1, 2018, require and if the state or a local government to reimburse a utility for the reasonable relocation costs incurred by the utility to relocate its facilities as a result of with appropriate jurisdiction directs a utility to relocate its facilities from an easement or right-of-way granted by the state or local government, and the relocation is for a construction project financed from any voter-approved bond act of the state or local government, respectively. respectively, require the state or local government to reimburse the utility for the reasonable costs of that relocation. The bill would require the state or local government to make the reimbursement only if it determines after consultation and public hearings that the relocation is in the general public interest, and only if the utility has applied to recover those relocation costs through all other applicable regulatory processes and those applications have been denied. The bill would require a utility claiming reimbursement to submit a verified itemized claim to the state or a local government for reimbursement of relocation costs within 180 days after each calendar quarter in which the utility incurs the relocation costs. utility’s final application to recover those costs through any other applicable regulatory processes is denied. The bill would require the state or local government to review each verified itemized claim, to reimburse the utility for reasonably incurred relocation costs within 90 days after receipt of the verified itemized claim, and to reimburse verified itemized claims for reimbursement of relocation costs from all affected utilities in the order of receipt. By placing additional duties upon local governments, the bill would impose a state-mandated local program.
The Improvement Act of 1911 authorizes the initiation of special assessment proceedings for overhead electric and communication facilities conversion to underground locations upon a determination by the local legislative body that the local government or a public utility has voluntarily agreed to pay over 50% of all costs of conversion, excluding costs of users’ connections to underground electric or communications facilities.
This bill would additionally make these provisions applicable to cable television facilities and a cable operator and, where overhead electric or communications facilities that are to be converted to underground are owned by a city or municipal government, would require that the legislative body initiating the conversion proceeding reimburse the costs incurred by a cable operator for relocation.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 2 (commencing with Section 7010) is added to Division 3.5 of the Public Utilities Code, to read:
CHAPTER  2. Compensation for Utility Relocation Costs for Construction Projects

7010.
 (a) For purposes of this chapter, a “utility” shall mean all of the following:
(1) An electric corporation.
(2) A water corporation.
(3) A facilities-based telephone corporation.
(4) A telecommunications carrier, as defined in Section 153 of Title 47 of the United States Code.
(5) A gas corporation.
(6) A local publicly owned electric utility and a publicly owned gas utility.
(7) A special district that owns or operates utilities.
(b) This chapter shall also apply to the following entities which, for the limited purposes of this chapter, are deemed to be a utility:
(1) A cable television corporation.
(2) A cable operator, as defined in Section 5830.
(c) For purposes of this chapter, “local government” means a charter or general law city, county, or city and county, a special district, school district, political subdivision, or other local public agency, or a joint powers authority formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code), but shall not mean the state, any agency or department of the state other than an individual campus of the University of California or the California State University, the federal government, any federal department or agency, or another state.
(d) For purposes of this chapter, “relocation costs” means all costs of relocating a utility’s facilities that the utility incurs as a direct result of the construction and operation of a construction project. Relocation costs do not include profit, but may include a reasonable allocation of general overhead expenses.

7012.
 (a) (1) Unless otherwise prohibited by law or expressly governed by a contract in force as of January 1, 2018, if the state or a local government shall reimburse a utility for the reasonable relocation costs incurred by the utility to relocate its facilities as a result of with appropriate jurisdiction directs a utility to relocate its facilities from an easement or right-of-way granted by the state or local government, and the relocation is for a construction project financed from any voter-approved bond act of the state or local government, respectively. respectively, the state or local government shall reimburse the utility for the reasonable costs of that relocation.
(2) The state or local government shall make the reimbursement only if it determines, after consultation with the utility and holding public hearings on the subject, that the relocation is in the general public interest for at least one of the following reasons:
(A) The relocation avoids or eliminates an unusually heavy concentration of overhead electric or communication facilities.
(B) The existing right-of-way involves a street or road with a high volume of pedestrian or vehicular traffic.
(C) The relocation benefits a civic area, public recreation area, or area of unusual scenic interest.
(D) The relocation is necessary to accommodate a state or local capital infrastructure project.
(E) The relocation is necessary for public safety.
(F) The existing right-of-way involves a street or road that is considered an arterial street or major collector as described by the state Office of Planning and Research’s general plan guidelines adopted pursuant to Section 65040.2 of the Government Code.
(3) The state or local government shall make the reimbursement only if the utility has applied to recover those relocation costs through all other applicable regulatory processes and those applications have been denied.
(4) The state or local government shall not allocate more than 5 percent of the total amount of moneys from the voter-approved bond act that resulted in the relocation to relocation costs.
(b) If the utility has existing land rights, including a utility easement, for the facilities that are required to be relocated as a result of the construction project, the state or a local government shall provide the utility, at the state’s or local government’s expense, with equal land rights in the new location of the relocated facilities. If the utility’s existing facilities are located in the right-of-way under a permit, the state or local government shall provide the utility, at the state’s or local government’s expense, rights in the new location of the relocated facilities equivalent to the utility’s existing rights under the permit.
(c) A utility shall submit a verified itemized claim to the state or a local government for reimbursement of relocation costs pursuant to this chapter within 180 days after each calendar quarter in which the utility incurs the relocation costs. utility’s final application to recover those costs through any other applicable regulatory processes is denied, as described in paragraph (3) of subdivision (a).
(d) Upon receipt of a verified itemized claim for reimbursement of relocation costs, the state or a local government shall do all of the following:
(1) Review each verified itemized claim. The review may include an audit conducted pursuant to generally accepted accounting principles. Upon written request, the utility shall make its relevant books and records reasonably available to the state or local government to review for purposes of the audit.
(2) Reimburse the utility for the reasonably incurred relocation costs within 90 days after receipt of the verified itemized claim. This time period is tolled for any period during which the utility fails to make its relevant books and records reasonably available to the state or local government to review for purposes of an audit pursuant to paragraph (1).
(3) Reimburse verified itemized claims for reimbursement of relocation costs from all affected utilities in the order of receipt.

7014.
 This chapter does not prohibit the state or a local government from complying with other applicable law, or with an agreement, that requires the state or local government to reimburse a utility for relocation costs.

SEC. 2.

 Section 5896.2 of the Streets and Highways Code is amended to read:

5896.2.
 As used in this chapter, the following words and phrases, and any variants thereof, are defined as follows:
“Cable operator” has the same meaning as defined in Section 5830 of the Public Utilities Code.
“Cable television service” has the same meaning as “cable service” as defined in Section 5830 of the Public Utilities Code.
“Communication service” means the transmission of intelligence by electrical means, including, but not limited to, telephone, telegraph, messenger-call, clock, police, fire alarm, and traffic control circuits, and circuits for the transmission of television or radio signals.
“Convert” or “conversion” means the removal of all, or any part, of any existing overhead electric or communication facilities and the replacement thereof with underground electric or communication facilities constructed at the same or different locations.
“Electric service” means the distribution of electricity for heat, light, or power.
“Electric or communication facilities” means any works or improvements used or useful in providing electrical, cable television, or communication service, including, but not limited to, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, capacitors, meters, communication circuits, appliances, attachments, and appurtenances, other than those owned or used by, or provided for, any railroad or pipeline, and located upon or above the right-of-way of the railroad or pipeline. “Electric facilities” does not include any facilities used or intended to be used for the transmission of electric energy at nominal voltages in excess of 35,000 volts.
“Overhead electric or communication facilities” means electrical, cable television, or communication facilities located, in whole or in part, above the surface of the ground.
“Underground electric or communication facilities” means electrical, cable television, or communication facilities located, in whole or in part, beneath the surface of the ground.
“Public agency” means any city, county, district, or public corporation (other than the one conducting the proceedings) that provides electric or communication service to the public by means of electric or communication facilities.
“Public utility” means any person or corporation that provides electric or communication service to the public by means of electric or communication facilities.

SEC. 3.

 Section 5896.9 of the Streets and Highways Code is amended to read:

5896.9.
 (a) In a proceeding for a conversion, the city and any public utility, cable operator, or public agency supplying electric service, cable television service, or communication service within the city, by agreement, may provide that, upon confirmation of the assessment, the public utility, cable operator, or public agency shall have legal title to the electric or communication facilities, which shall thereafter constitute part of a system of the public utility or public agency and be used, operated, maintained, and managed by it as part of its system.
(b) Subject to any rules, regulations, or tariffs applicable to any public utility, cable operator, or public agency, the agreement also may provide, among other things, for any of the following: the supplying or approval by the public utility, cable operator, or public agency of plans and specifications; a contribution of labor, materials, or money by the public utility, cable operator, or public agency; the performance by the public utility, cable operator, or public agency of all, or any part, of the work or improvement; and payment to the public utility, cable operator, or public agency for any work or improvement performed or service rendered by it.
(c) Any agreement shall be made prior to the adoption of the resolution ordering the work. If the proceedings are abandoned, the agreement shall be given no further force or effect. To the extent that the agreement provides that all, or any part, of the work or improvement is to be performed by the public utility, cable operator, or public agency, the provisions of this division requiring competitive bidding and the award of the contract to the lowest responsible bidder shall be inapplicable.
(d) Nothing in this chapter precludes the city, cable operator, or the public utility, in the event of disagreement regarding any provision of the proposed agreement, from seeking review of the disagreement by the Public Utilities Commission.

SEC. 4.

 Section 5896.10 of the Streets and Highways Code is amended to read:

5896.10.
 If the work or improvement consists solely of a conversion, and the work or improvement is performed by a public utility, cable operator, or public agency, the resolution of intention shall provide that (a) the warrant, assessment assessment, and diagram or (b) any bonds issued or to be issued to represent unpaid assessments, or both (a) and (b), shall be sold as the legislative body directs. The purchaser, and any successors, shall have the same rights and liens as the contractor to collect and enforce the assessments and all bonds issued to represent unpaid assessments. If the work and improvement consists, in part, of a conversion and, in part, of other types of work or improvement under this division, the legislative body may provide, in the resolution of intention, that the costs and expenses of conversion is part of the incidental expenses to be advanced to the city by the contractor and to be included in the assessment. Any payments made upon assessments, any proceeds from the sale of the warrant, assessment, and diagram or bonds, and any incidental expenses so advanced to the city may be used by the city for the purpose of making payments to a public utility, cable operator, or public agency pursuant to an agreement made under Section 5896.9.

SEC. 5.

 Section 5896.12 is added to the Streets and Highways Code, to read:

5896.12.
 Notwithstanding Section 5896.11 or 5896.13, for a conversion of electric or communications facilities that are owned by a city or municipal utility, the legislative body initiating the conversion proceeding shall reimburse the costs incurred by a cable operator for relocation, consistent with Section 5896.5.

SEC. 6.

 Section 5896.14 of the Streets and Highways Code is amended to read:

5896.14.
 (a) Subject to applicable rules, regulations, tariffs tariffs, or ordinances, all electric or communication facilities, including connections to the owner’s premises, located upon any lot or parcel of land within the assessment district shall be constructed, reconstructed, relocated, or converted by the owner of such lot or parcel at his own expense. This work may be done by the contractor, or the public utility, cable operator, public agency, or city performing the conversion work, and the cost thereof included in the assessment to be levied upon the lot or parcel, provided that the owner shall execute a written request therefor and file it with the clerk. Any such request shall expressly authorize the contractor, public utility, cable operator, public agency, or city, and the respective officers, agents, and employees of each, to enter upon the lot or parcel for that purpose and shall waive any right of protest or objection in respect of the doing of that work and the inclusion of the cost thereof in said assessment.
(b) The provisions of this chapter shall not be deemed to diminish any right of an owner of a lot or parcel of land to contract any portion of work on his or her premises.

SEC. 7.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.