Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1142

Introduced by Senator Menjivar

February 14, 2024

An act to amend Section 886 of the Public Utilities Code, relating to telecommunications. An act to amend Sections 779, 779.1, and 779.5 of, and to add Section 779.6 to, the Public Utilities Code, relating to public utilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 1142, as amended, Menjivar. Telecommunications: telephone cards. Electrical and gas corporations: establishment and termination of services.
Existing law prohibits an electrical or gas corporation from terminating residential service for nonpayment of a delinquent account unless the corporation first gives notice of the delinquency and impending termination, as provided. Existing law requires the notice to include information on procedures by which the affected residential customer may initiate a complaint, request an investigation concerning the service or charges, and request amortization of the unpaid charges. Existing law requires that a residential customer who initiated a complaint, requested an investigation, or requested an extension of the payment period be given an opportunity for review of the complaint, investigation, or request by a review manager of the corporation. Existing law requires the review to include a consideration of whether the customer is to be permitted to amortize the unpaid balance of the delinquent account over a reasonable time period, not to exceed 12 months.
This bill would provide that, for electrical or gas service, the reasonable time period for the amortization period is at minimum 24 months unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation. The bill would expressly prohibit the electrical or gas corporation from terminating service if the customer agrees to pay the unpaid balance of a delinquent account over the amortization period. The bill would prohibit an electrical or gas corporation from requiring a residential customer to pay more than 20% of the outstanding bill balance to retain service after serving the customer with the notice of termination. The bill would require the electrical or gas corporation, in determining the payment, to take into account the customer’s ability to pay. The bill would prohibit an electrical or gas corporation from terminating service to a customer who fails to comply with an amortization agreement under specified circumstances, as provided.
This bill would require an electrical or gas corporation to restore service to a residential customer whose service is previously terminated for nonpayment of delinquent amount if the customer has entered into an amortization agreement. The bill would prohibit the electrical or gas corporation from charging a reconnection fee before reconnecting those residential customers and would require the reconnection to occur within 24 hours of the payment.
Existing law requires 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 before establishing an account and furnish service to be based solely on the credit worthiness of the applicant.
This bill would prohibit an electrical or gas corporation from requiring a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnishing service.
Under existing law, a violation of the Public Utilities Act is a crime.
Because the provisions of this bill would be a part of the act, a violation of which would be a crime, the bill would impose a state-mandated local program.
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 no reimbursement is required by this act for a specified reason.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law requires entities offering the services of telephone prepaid debit cards that are not certificated by the commission to provide telephone service to register with the commission, as specified. Existing law prohibits entities that have failed to register, or that are denied registration, from offering telephone prepaid debit cards, and subjects entities that have failed to register, or that are denied registration, that offer telephone prepaid debit cards to fines or other sanctions, as specified.

This bill would make nonsubstantive changes to that prohibition.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 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 before delinquency.
(4) For customers of electrical and gas corporations, the customer agrees to pay the unpaid balance of delinquent accounts over a minimum of 24 months unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation.
(c) Any A 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 termination months for heat or water service, or a reasonable period of time that is at minimum 24 months for electrical or gas service unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation, as appropriate. Termination of service shall not be effected for any a customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period.
(d) Any A 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 A customer meeting the requirements of paragraph (3) of subdivision (b) shall, upon request, be permitted to amortize, over a period not to exceed 12 months, specified in subdivision (c), the unpaid balance of any bill asserted to be beyond the means of the customer to pay within the normal period for payment.

SEC. 2.

 Section 779.1 of the Public Utilities Code is amended to read:

779.1.
 (a) Every electrical, gas, heat, or water corporation shall allow every residential customer at least 19 days from the date of mailing its bill for services, postage prepaid, for payment of the charges demanded. A corporation subject to this section shall not terminate residential service for nonpayment of a delinquent account unless the corporation first gives notice of the delinquency and impending termination, at least 10 days prior to before the proposed termination, by means of a notice mailed, postage prepaid, to the customer to whom the service is billed, not earlier than 19 days from the date of mailing the corporation’s bill for services, and the 10-day period shall not commence until five days after the mailing of the notice.
(b) Every corporation shall make a reasonable attempt to contact an adult person residing at the premises of the customer by telephone or personal contact at least 24 hours prior to before any termination of service, except that, whenever telephone or personal contact cannot be accomplished, the corporation shall give, either by mail or in person, a notice of termination of service at least 48 hours prior to before termination.
(c) Every corporation shall make available to its residential customers who are 65 years of age or older, or who are dependent adults as defined in Section 15610.23 of the Welfare and Institutions Code, a third-party notification service, whereby the corporation will attempt to notify a person designated by the customer to receive notification when the customer’s account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third-party notification on a form provided by the corporation, and shall include the written consent of the designated third party. The third-party notification does not obligate the third party to pay the overdue charges, nor shall it prevent or delay termination of service.
(d) (1) Every notice of termination of service pursuant to subdivision (a) or (b) shall include all of the following information:

(1)

(A) The name and address of the customer whose account is delinquent.

(2)

(B) The amount of the delinquency.

(3)

(C) (i) The date by which payment or arrangements for payment is required in order to avoid termination.
(ii) For an electrical or gas corporation, the payment required to avoid termination shall take into account the customer’s ability to pay and other factors and shall not exceed 20 percent of the outstanding balance. The notice shall provide the customer with information, including information on the customer’s ability to pay and other relevant factors, required for setting up payments or arrangements for payments.

(4)

(D) The procedure by which the customer may initiate a complaint or request an investigation concerning service or charges.

(5)

(E) The procedure by which the customer may request amortization of the unpaid charges.

(6)

(F) The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable.

(7)

(G) The telephone number of a representative of the corporation who can provide additional information or institute arrangements for payment.

(8)

(H) The telephone number of the commission to which inquiries by the customer may be directed.

All

(2) All written notices shall be in a clear and legible format.
(e) Any A residential customer whose complaint or request for an investigation has resulted in an adverse determination by the corporation may appeal the determination to the commission. Any A subsequent appeal of the dispute or complaint to the commission is not subject to this section.
(f) (1) If a residential customer fails to comply with an amortization agreement, the corporation shall not terminate service without giving notice to the customer at least 48 hours prior to before termination of the conditions the customer is required to meet to avoid termination, but this notice does not entitle the customer to further investigation by the corporation.
(2) An electrical or gas corporation shall not terminate service to a residential customer who fails to comply with an amortization agreement if the customer does both of the following:
(A) Makes a payment on the outstanding bill amount that takes into account the ability of the customer to pay and does not exceed 20 percent of the outstanding bill balance.
(B) Agrees to continuing payment of the unpaid balance subject to the amortization agreement.
(g) A termination of service shall not be effected without compliance with this section. Any A service wrongfully terminated shall be restored without charge for the restoration of service, and a notation thereof shall be mailed to the customer at the customer’s billing address.

SEC. 3.

 Section 779.5 of the Public Utilities Code is amended to read:

779.5.
 (a) The decision of an electrical, gas, a heat, telephone, or water corporation to require a new residential applicant to deposit a sum of money with the corporation prior to before establishing an account and furnishing service shall be based solely upon the credit worthiness of the applicant as determined by the corporation.
(b) An electrical or gas corporation shall not require a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnishing service.

SEC. 4.

 Section 779.6 is added to the Public Utilities Code, to read:

779.6.
 (a) An electrical or gas corporation shall restore service to a residential customer whose service was previously terminated for nonpayment of delinquent amounts upon the customer entering into an amortization agreement described in paragraph (4) of subdivision (b) of Section 779.
(b) An electrical or gas corporation shall not require payment of a reconnection fee before reconnecting a residential customer whose service was previously terminated for nonpayment of delinquent amounts.
(c) The reconnection shall occur within 24 hours of the payment of a portion of the outstanding bill balance that takes into account the customer’s ability to pay, not to exceed 20 percent of the outstanding bill balance.
(d) An electrical or gas corporation that fails to comply with this section is subject to a penalty of not less than five hundred dollars ($500), but not more than one hundred thousand dollars ($100,000), for each offense. Pursuant to Section 748.1, the electrical or gas shall not recover any penalty assessed from ratepayers.

SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because 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.
SECTION 1.Section 886 of the Public Utilities Code is amended to read:
886.

Entities that are required to register, but have failed to register, or entities that are denied registration by the commission, shall not offer the services of telephone prepaid debit cards. Entities that are required to register, but have failed to register, and entities denied registration that offer telephone prepaid debit cards shall be subject to fines or other sanctions that may be ordered by the commission.