Article 1. General Provisions of California Public Utilities Code >> Division 3. >> Chapter 2. >> Article 1.
This chapter may be cited as the Franchise Act of 1937.
As used in this chapter, "industrial gas" means any
substance which is in a gaseous state at ambient conditions of
temperature and pressure used for commercial, industrial, or
scientific purposes, but does not include any gaseous hydrocarbon
used for light, heat, power, or feedstock.
As used in this chapter, municipality includes counties,
but no county shall grant a franchise pursuant to this chapter in any
The legislative body of any municipality may grant a
franchise to any person, firm, or corporation, whether operating
under an existing franchise or not, to use, or to construct and use,
poles, wires, conduits, and appurtenances for transmitting and
distributing electricity for all purposes, or to use, or to lay and
use, pipes and appurtenances for transmitting and distributing gas or
industrial gas for all purposes, or to use, or to lay and use, pipes
and appurtenances for transmitting and distributing oil or products
thereof for all purposes, or to lay and use pipes, ditches, flumes,
conduits, and appurtenances for transmitting and distributing water
for all purposes, under, along, across, or upon the public streets,
ways, alleys, and places within the municipality, upon the terms and
conditions provided in this chapter.
The legislative body may in such a franchise impose such
other and additional terms and conditions not in conflict with this
chapter, whether governmental or contractual in character, as in the
judgment of the legislative body are to the public interest.
This chapter provides a procedure, alternative to the
procedure provided in Article 1 of Chapter 1 of this division, for
the granting of franchises by municipalities. When any proceeding is
initiated under this chapter for the granting of a franchise, the
provisions of this chapter exclusively govern the granting of such
This chapter does not apply to any municipality having a
freeholders' charter adopted and ratified under the Constitution and
having in such charter provisions for the issuance of franchises by
the municipality, but nothing contained in this chapter shall
restrict the right of any such chartered municipality to avail itself
of the provisions of this chapter wherever it may lawfully do so.
The provisions of this chapter relating to the payment of a
percentage of gross receipts shall not be construed as a declaration
of legislative judgment as to the proper compensation to be paid a
chartered municipality for the right to exercise franchise privileges
(a) Notwithstanding Section 6205, all franchises, licenses,
permits, or other privileges granted to a public utility by any
city, county, or city and county holding a freeholder's charter
containing provisions for the issuance of franchises, to use, or to
construct or lay and use, under, along, across, or upon the public
streets, ways, alleys, and places within the municipality, facilities
which are part of a pipeline system transmitting oil or products
thereof, shall be granted upon the terms and conditions provided in,
and in accordance with, either this chapter or Chapter 1 (commencing
with Section 6001).
(b) On and after January 1, 1990, the compensation to be paid for
the franchises, licenses, permits, or other privileges granted by any
city, county, or city and county, including those holding a
freeholder's charter, shall be as provided in Section 6231.5.
(c) It is the intent of the Legislature, in enacting this section,
to preempt the ordinance of any chartered municipality insofar as
that ordinance governs the granting of franchises to construct
facilities which are part of a pipeline system transmitting oil or