Frequently Asked Questions about the California Constitution Article XII

How many sections does Article 12 have? This article contains nine sections.

What does Article 12 relate to? It relates to public utilities.

Who composes the Public Utilities Commission? Section 1 provides for the Public Utilities Commission that consists of 5 members appointed by the Governor and approved by the Senate for staggered 6-year terms.

Can Commissioners be removed? Section 1 also provides that the Legislature may remove a member for incompetence, neglect of duty, or corruption, two thirds of the membership of each house concurring.

Who establishes the Commission’s rules? Section 2 states that, subject to statute and due process, the Commission may establish its own procedures.

What are public utilities? Section 3 provides that private corporations and persons that own, operate, control, or manage a line, plant, or system for the transportation of people or property, the transmission of telephone and telegraph messages, or the production, generation, transmission, or furnishing of heat, light, water, power, storage, or wharfage directly or indirectly to or for the public, and common carriers, are public utilities subject to control by the Legislature.

Can the definition of public utilities be expanded? Section 3 also provides that the Legislature may prescribe additional classes of private corporations or other persons are public utilities.

How does the Commission regulate transportation companies? Section 4 provides that the Commission may fix rates and establish rules for the transportation of passengers and property by transportation companies, prohibit discrimination, and award reparation for the exaction of unreasonable, excessive, or discriminatory charges.

Are there limits on rate charges by transportation companies? Section 4 specifies that a transportation company may not raise a rate or incidental charge, except after a showing to and a decision by the Commission that the increase is justified, and this decision is not subject to judicial review, except as to whether confiscation of property will result.

Who determines the scope of the Commission’s authority? Section 5 states that the Legislature has plenary power, unlimited by the other provisions of the state Constitution but consistent with this article, to confer additional authority and jurisdiction upon the Commission, to establish the manner and scope of review of commission action in a court of record, and to enable it to fix just compensation for utility property taken by eminent domain.

How does the Commission regulate public utilities? Section 6 provides that the Commission may fix rates, establish rules, examine records, issue subpoenas, administer oaths, take testimony, punish for contempt, and prescribe a uniform system of accounts for all public utilities subject to its jurisdiction.

What are transportation companies prohibited from doing? Section 7 states that a transportation company may not grant free passes or discounts to anyone holding an office in this State and that the acceptance of a pass or discount by a public officer, other than a Public Utilities Commissioner, will cause a forfeiture of that office.

Are there prohibitions for Commissioners? Section 7 provides that a Public Utilities Commissioner may not hold an official relation to nor have a financial interest in a person or corporation subject to regulation by the Commission.

May local governments regulate in a similar manner to the Commission? Section 8 specifies that a city, county, or other public body may not regulate matters over which the Legislature grants regulatory power to the Commission.