2010 California Code
Public Utilities Code
Chapter 3.5. Existing Systems

100055.  Notwithstanding any other provision of this act, before the
district may establish any transit service or system which may at
any time divert, lessen, or compete for the patronage or revenues of
any existing system, the district shall give a written notice to the
public utility which is operating the existing system. The written
notice shall describe the transit service or system which the
district proposes to establish and shall state the time within which
the district proposes to establish such service or system.



100055.1.  The district shall not establish the proposed service or
system, or maintain and operate the service or system until it has
completed the purchase of the existing system or any part thereof.



100055.2.  Subject to Section 100351, the purchase price to be paid
for the existing system, or any portion thereof to be purchased,
shall be the reproduction cost new, including going concern value, at
the date upon which the district commences negotiations for the
purchase of the existing system, or the portion of the existing
system, less depreciation, including wear, tear and obsolescence, if
any.



100055.3.  The district and public utility operating the existing
system may agree upon the purchase price or they may agree that the
purchase price is to be established by arbitration and upon the
method of naming arbitrators and the method of conducting such
arbitration.



100055.4.  Section 851 does not apply to any contract for sale or
sale of an existing system, or any portion thereof, pursuant to this
chapter, and the Public Utilities Commission has no jurisdiction with
respect thereto.