Cal. Code Regs. tit. 20 § 3.6

Current through Register 2024 Notice Reg. No. 44, November 1, 2024

Section 3.6 - (Rule 3.6) Transfers and Acquisitions

Applications to sell, lease or encumber utility property or rights, to merge or consolidate facilities, to acquire stock of another utility, or to acquire or control a utility under Sections 851 through 854 of the Public Utilities Code shall be signed by all parties to the proposed transaction, except the lender, vendor under a conditional sales contract, or trustee under a deed of trust, unless such person is a public utility. In addition, they shall contain the following data:

(a) The character of business performed and the territory served by each applicant.

(b) A description of the property involved in the transaction, including any franchises, permits, or operative rights; and, if the transaction is a sale, lease, assignment, merger or consolidation, a statement of the book cost and the original cost, if known, of the property involved.

(c) Detailed reasons upon the part of each applicant for entering into the proposed transaction, and all facts warranting the same.

(d) The agreed purchase price and the terms for payment. If a merger or consolidation, the full terms and conditions thereof.

(e) In consolidation and merger proceedings, a financial statement as outlined in Rule 2.3. In other transfer proceedings, a balance sheet as of the latest available date, together with an income statement covering period from close of last year for which an annual report has been filed with the Commission to the date of the balance sheet attached to the application.

(f) Copy of proposed deed, bill of sale, lease, security agreement, mortgage, or other encumbrance document, and contract or agreement therefor, if any, and copy of each plan or agreement for purchase, merger or consolidation.

(g) If a merger or consolidation, a pro forma balance sheet giving effect thereto.

(h) Applications that involve a certificate or operative right as vessel common carrier or passenger stage corporation shall also state, as to the seller, whether it is a party to any through routes or joint rates or fares with any other carrier, and whether operation under the rights involved is presently being conducted. If there has been any suspension or discontinuance of service during the preceding three years, the application shall state those facts and circumstances.

Cal. Code Regs. Tit. 20, § 3.6

1. Renumbering of former sections 35, 36 and 37 to new section 3.6, including amendment of section heading, section and NOTE filed 9-13-2006; operative 9-13-2006 pursuant to Government Code section 11351(a) (Register 2006, No. 37).
2. Amendment of first paragraph filed 6-4-2009; operative 7-4-2009 (Register 2009, No. 23). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h).
3. Amendment of first paragraph filed 1-8-2014; operative 4-1-2014. Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2014, No. 2).
4. Repealer of subsection (i) and amendment of NOTE filed 3-15-2021; operative 5-1-2021 pursuant to Government Code section 11343.4(b)(3). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2021, No. 12).

Note: Authority cited: Article 12, Section 2, California Constitution; and Section 1701, Public Utilities Code. Reference: Sections 1007 and 1032, Public Utilities Code.

1. Renumbering of former sections 35, 36 and 37 to new section 3.6, including amendment of section heading, section and Note filed 9-13-2006; operative 9-13-2006 pursuant to Government Code section 11351(a) (Register 2006, No. 37).
2. Amendment of first paragraph filed 6-4-2009; operative 7-4-2009 (Register 2009, No. 23). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h).
3. Amendment of first paragraph filed 1-8-2014; operative 4-1-2014. Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2014, No. 2).
4. Repealer of subsection (i) and amendment of Note filed 3-15-2021; operative 5/1/2021 pursuant to Government Code section 11343.4(b)(3). Submitted to OAL for limited review pursuant to Government Code section 11351 and Public Utilities Code section 311(h) (Register 2021, No. 12).