Bill Text: CA AB771 | 2009-2010 | Regular Session | Introduced
Bill Title: Public utilities: residential utility services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB771 Detail]
Download: California-2009-AB771-Introduced.html
BILL NUMBER: AB 771 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Torres and De Leon
FEBRUARY 26, 2009
An act to amend Sections 779, 779.2, 779.5, 10009.6, and 10010 of
the Public Utilities Code, relating to residential utility services.
LEGISLATIVE COUNSEL'S DIGEST
AB 771, as introduced, Torres. Public utilities: residential
utility services.
(1) Existing law prohibits a municipally owned or operated public
utility (publicly owned utility) furnishing light, water, power, or
heat, or an electrical, gas, heat, or water corporation,
(corporation) from terminating residential service for nonpayment of
a delinquent account in specified situations, including on the
certification of a licensed physician and surgeon that to do so will
be life threatening to the customer and the customer is financially
unable to pay for service within the normal payment period and
willing to enter into an amortization agreement with the publicly
owned utility or corporation with respect to all charges that the
customer is unable to pay prior to delinquency. Existing law permits
a customer meeting these requirements to amortize the unpaid balance
of a bill over a period not exceeding 12 months.
This bill would increase the maximum amortization period to 18
months.
(2) Existing law prohibits an electrical, gas, heat, telephone, or
water corporation from terminating residential service for
nonpayment of any delinquent account or other indebtedness owned by
the customer or subscriber to any other person or corporation or when
the obligation represented by the delinquent account or other
indebtedness was incurred with a person or corporation other than the
corporation demanding payment for it. The act exempts from this
prohibition a utility that collects sanitation or sewerage charges
for a public agency, as specified.
This bill would delete that exemption.
(3) Existing law requires a decision of an electrical, gas, heat,
telephone, or water corporation to require a new residential
applicant to deposit a sum of money with that corporation prior to
furnishing service to be based solely upon the creditworthiness of
the applicant, as determined by the corporation.
This bill would prohibit those corporations from seeking to
recover charges or penalties, in connection with furnishing services
to a tenant of the owner of the residential property to which
services were provided, from any subsequent tenant or the property
owner. The bill also would prohibit those corporations from demanding
or receiving a security deposit in an amount that is more than 2
times the estimated average periodic bill or 3 times the estimated
average monthly bill for the provision of services and would prohibit
those corporations from imposing a reconnection charge for
terminated service if the customer provides that security deposit.
(4) Existing law requires the decision of a publicly owned utility
to require a new residential applicant to deposit a sum of money
with the publicly owned utility prior to furnishing service to be
based solely upon the creditworthiness of the applicant, as
determined by the public utility. Existing law limits the amount of
money that a publicly owned utility may demand or receive from a
customer as security for the provision of services.
This bill would prohibit a publicly owned utility from demanding
or receiving a charge for reconnecting service terminated for
nonpayment if the customer posts that security.
By imposing new duties on publicly owned utilities, this bill
would impose a state-mandated local program.
(5) Under existing law, a violation of any provision of the Public
Utilities Act or of any rules or orders issued under the act, is a
crime.
By imposing new requirements under the act, the violation of which
is a crime, this bill would impose a state-mandated local program.
(6)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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so 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.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds all of the following:
(a) The United States and California are facing an unprecedented
economic crisis that includes an unemployment rate of 9.5 percent in
California, numerous home foreclosures, a credit crisis, and stagnant
or declining wages and incomes for California workers.
(b) The economic crisis, unemployment, and home foreclosures are
destabilizing communities across California. Preserving community
stability and avoiding homelessness are essential elements in
California's response to the economic crisis.
(c) Preserving essential services for California residents is an
important element in maintaining community stability and preventing
homelessness, family crisis, and resulting social ills.
(d) Temporary measures to assist distressed homeowners and renters
in paying their utility bills and preventing loss of services are
needed as an element of California's response to the economic crisis.
(e) Providers of essential services, such as electricity, gas,
water, and sewer services, have programs, procedures, and cash flows
that can be used to assist their customers in maintaining their
services.
(f) Providers of essential services, including both investor owned
utilities and publicly owned utilities, should have predictable
practices and procedures for assisting residential customers in
preserving their services, including augmenting their staffs to
assist customers with service difficulties and payment problems.
(g) Public and regulatory practices and policies should balance
customers' needs for assistance during the economic crisis with the
need to preserve the financial viability of utilities, as providers
of essential services to the public as a whole.
SEC. 2. The Legislature declares all of the following:
(a) It is the policy of the State of California that the essential
services of heat, light, electricity, water, and sewer services be
maintained on affordable terms for all residents of California during
the economic crisis.
(b) It is the intent of the Legislature that all providers of
electric, gas, water, and sewer service use all reasonable means to
preserve continuity of those services to their residential customers
and that they review their practices and procedures to determine how
best to achieve continuity of service. The review should include
practices and procedures relating to shutoffs, reconnection
procedures and charges, deposits and credit, management of
arrearages, late charges, and enrollment in the CARE Program and
other comparable programs.
(c) It is the intent of the Legislature that the substantive
measures contained in this act should be in effect for a limited
period to correspond to the duration of the economic crisis facing
California and the nation, not to exceed three years.
SEC. 3. Section 779 of the Public Utilities Code is amended to
read:
779. (a) No An electrical, gas,
heat, or water corporation may shall not
terminate residential service for nonpayment of a delinquent
account unless the corporation first gives notice of the delinquency
and impending termination, as provided in Section 779.1.
(b) No An electrical,
gas, heat, or water corporation may shall not
terminate residential service for nonpayment in any of the
following situations:
(1) During the pendency of an investigation by the corporation of
a customer or subscriber dispute or complaint.
(2) When a customer has been granted an extension of the period
for payment of a bill.
(3) On the certification of a licensed physician and surgeon that
to do so will be life threatening to the customer and the customer is
financially unable to pay for service within the normal payment
period and is willing to enter into an amortization agreement with
the corporation pursuant to subdivision (e) with respect to all
charges that the customer is unable to pay prior to delinquency.
(c) Any residential customer who has initiated a complaint or
requested an investigation within five days of receiving the disputed
bill, or who has, before termination of service, made a request for
extension of the payment period of a bill asserted to be beyond the
means of the customer to pay in full within the normal period for
payment, shall be given an opportunity for review of the complaint,
investigation, or request by a review manager of the corporation. The
review shall include consideration of whether the customer shall be
permitted to amortize any unpaid balance of the delinquent account
over a reasonable period of time, not to exceed 12 months. No
A termination of service shall not
be effected for any customer complying with an amortization
agreement, if the customer also keeps the account current as charges
accrue in each subsequent billing period.
(d) Any customer whose complaint or request for an investigation
pursuant to subdivision (c) has resulted in an adverse determination
by the corporation may appeal the determination to the commission.
Any subsequent appeal of the dispute or complaint to the commission
is not subject to this section.
(e) Any customer meeting the requirements of paragraph (3) of
subdivision (b) shall, upon request, be permitted to amortize, over a
period not to exceed 12 18 months, the
unpaid balance of any bill asserted to be beyond the means of the
customer to pay within the normal period for payment.
SEC. 4. Section 779.2 of the Public Utilities Code is amended to
read:
779.2. (a) No An electrical, gas,
heat, telephone, or water corporation may
shall not terminate residential service for nonpayment of any
delinquent account or other indebtedness owed by the customer or
subscriber to any other person or corporation or when the obligation
represented by the delinquent account or other indebtedness was
incurred with a person or corporation other than the electrical, gas,
heat, telephone, or water corporation demanding payment
therefor for that delinquent account or other
indebtedness .
(b) Subdivision (a) does not apply to a telephone corporation
operating within service areas which furnishes billing services to
the subscribers of a telephone corporation operating between service
areas pursuant to tariffs on file with the commission providing for
the furnishing of those billing services. The commission shall
require that these tariffs also provide for adequate subscriber
notice, review, and appeal procedures prior to any termination of
service for nonpayment of a delinquent account.
(c) Subdivision (a) does not apply to any privately owned or
publicly owned public utility which collects sanitation or sewerage
charges for a public agency pursuant to agreement under Section
54346.2 of the Government Code or Section 5472.5 of the Health and
Safety Code.
SEC. 5. Section 779.5 of the Public Utilities Code is amended to
read:
779.5. (a) The decision of an electrical,
gas, heat, telephone, or water corporation to require a new
residential applicant to deposit a sum of money with the corporation
prior to establishing an account and furnishing service shall be
based solely upon the credit worthiness of the applicant as
determined by the corporation.
(b) (1) An electrical, gas, heat, telephone, or water corporation
furnishing services for residential use to a tenant under an account
established by the tenant shall not seek to recover any charges or
penalties for the furnishing of services to, or for the tenant's
residential use from, any subsequent tenant or the property owner due
to nonpayment of charges by a previous tenant.
(2) For purposes of this subdivision, the term "subsequent tenant"
does not include any adult person who lived at the residence during
the period that the charges or penalties accrued.
(c) (1) A corporation subject to this section shall not demand or
receive security in an amount that exceeds twice the estimated
average periodic bill or three times the estimated average monthly
bill.
(2) A corporation subject to this section shall not demand or
receive a charge for reconnecting service terminated for nonpayment
if the customer posts a security identified in paragraph (1).
SEC. 6. Section 10009.6 of the Public Utilities Code is amended to
read:
10009.6. (a) The decision of a public utility to require a new
residential applicant to deposit a sum of money with the public
utility prior to establishing an account and furnishing service shall
be based solely upon the creditworthiness of the applicant as
determined by the public utility.
(b) No A municipal corporation
owning or operating a public utility furnishing services for
residential use to a tenant under an account established by the
tenant shall not seek to recover any charges or penalties
for the furnishing of services to, or for the tenant's residential
use from, any subsequent tenant or the property owner due to
nonpayment of charges by a previous tenant. For this purpose, the
term "subsequent tenant" shall not include any adult person who lived
at the residence during the period that the charges or penalties
accrued. The municipal corporation may collect a deposit from the
tenant service applicant prior to establishing an account for the
tenant. The municipal corporation may shall
not require that service to subsequent tenants be furnished on
the account of the landlord or property owner unless the property
owner voluntarily agrees to that requirement, nor may the municipal
corporation refuse to furnish services to a tenant in the tenant's
name based upon the nonpayment of charges by a previous tenant.
(c) (1) A public utility subject to this
section may shall not demand or receive
security in an amount that exceeds twice the estimated average
periodic bill or three times the estimated average monthly bill.
(2) A public utility subject to this section shall not demand or
receive a charge for reconnecting service terminated for nonpayment
if the customer posts the security identified in paragraph (1).
(d) In the event of tenant nonpayment of all or a portion of the
bill, the deposit shall be applied to the final bill issued when
service is terminated.
(e) This section shall not apply to master-metered apartment
buildings.
SEC. 7. Section 10010 of the Public Utilities Code is amended to
read:
10010. (a) No A public utility
furnishing light, water, power, or heat may
shall not terminate residential service for nonpayment of a
delinquent account unless the public utility first gives notice of
the delinquency and impending termination, as provided in Section
10010.1.
(b) No A public utility
shall not terminate residential service for nonpayment in
any of the following situations:
(1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
(2) When a customer has been granted an extension of the period
for payment of a bill.
(3) On the certification of a licensed physician and surgeon that
to do so will be life threatening to the customer and the customer is
financially unable to pay for service within the normal payment
period and is willing to enter into an amortization agreement with
the public utility pursuant to subdivision (e) with respect to all
charges that the customer is unable to pay prior to delinquency.
(c) Any residential customer who has initiated a complaint or
requested an investigation within five days of receiving the disputed
bill, or who has, within 13 days of mailing of the notice required
by subdivision (a), made a request for extension of the payment
period of a bill asserted to be beyond the means of the customer to
pay in full during the normal period for payment, shall be given an
opportunity for review of the complaint, investigation, or request by
a review manager of the public utility. The review shall include
consideration of whether the customer shall be permitted to amortize
the unpaid balance of the account over a reasonable period of time,
not to exceed 12 months. No A
termination of service shall not be effected for any
customer complying with the amortization agreement, if the customer
also keeps the account current as charges accrue in each subsequent
billing period.
(d) Any customer whose complaint or request for an investigation
pursuant to subdivision (c) has resulted in an adverse determination
by the public utility may appeal the determination to the governing
body of the municipal corporation. Any subsequent appeal of the
dispute or complaint to the governing body is not subject to this
section.
(e) Any customer meeting the requirements of paragraph (3) of
subdivision (b) shall, upon request, be permitted to amortize, over a
period not to exceed 12 18 months, the
unpaid balance of any bill asserted to be beyond the means of the
customer to pay within the normal period for payment.
SEC. 8. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other 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.
