BILL NUMBER: AB 2511	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2008

INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 21, 2008

   An act to add Article 10 (commencing with Section 640) to Chapter
3 of Part 1 of Division 1 of the Public Utilities Code, relating to
public utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2511, as amended, Salas. Public utilities: bill payment.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law authorizes the
commission to establish rules for all public utilities, subject to
control by the Legislature.
   The existing California Deferred Deposit Transaction Law provides
for regulation of persons engaged in the business of making or
negotiating deferred deposit transactions, which are transactions in
which the lender defers depositing a consumer's personal check until
a specific date pursuant to a written agreement. The California
Deferred Deposit Transaction law provides for the licensing of those
persons by the Commissioner of Corporations, imposes various duties
on a person engaged in the business of making or negotiating deferred
deposit transactions, and specifies the rights of a consumer in that
regard.
   This bill would  require the commission to adopt rules that
would  prohibit a public utility from  authorizing
  approving  a licensee under the California
Deferred Deposit Transaction Law to be an additional authorized
payment location, as defined, and would require the commission to
ensure compliance with this requirement. The bill would require
 any  a  public utility that, prior to
January 1, 2009,  authorized   approves  a
licensee to be an authorized payment location to actively search for
alternative  authorized payment  locations  for
  customers to pay billings from the utility  , and to
discontinue  utilizing   using  a licensee
as an authorized payment location when an adequate alternative has
been obtained.  The bill would require a public utility to
require a licensee that it uses as an authorized payment location to
provide a utility customer that makes a utility payment with
information, prepared by the utility and approved by   the
commission, about payment options and assistance available through
the utility.  The bill would prohibit a public utility from
having a licensee as an authorized payment location on or after
January 1, 2011  , unless the commission finds that the utility
has been unable to locate alternative payment locations, as
specified. In which case, the commission shall grant the public
utility a one-year extension in order to comply with these provisions
or to demonstrate the need for another one-year extension. A public
utility would be required to make reasonable attempts to work with
community-   based organizations to locate suitable
alternatives to the licensee or licensees it has approved to be
locations for customers to pay billings before seeking a waiver from
the commission  .
   Existing law makes any public utility, as defined, and any
corporation other than a public utility, that violates the Public
Utilities Act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the commission
guilty of a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.

   AB 2511, as amended, Salas. Public utilities: bill payment.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law authorizes the
commission to establish rules for all public utilities, subject to
control by the Legislature.
   The existing California Deferred Deposit Transaction Law provides
for regulation of persons engaged in the business of making or
negotiating deferred deposit transactions, which are transactions in
which the lender defers depositing a consumer's personal check until
a specific date pursuant to a written agreement. The California
Deferred Deposit Transaction law provides for the licensing of those
persons by the Commissioner of Corporations, imposes various duties
on a person engaged in the business of making or negotiating deferred
deposit transactions, and specifies the rights of a consumer in that
regard.
   This bill would  require the commission to adopt rules that
would  prohibit a public utility from  authorizing
  approving  a licensee under the California
Deferred Deposit Transaction Law to be an additional authorized
payment location, as defined, and would require the commission to
ensure compliance with this requirement. The bill would require
 any  a  public utility that, prior to
January 1, 2009,  authorized   approves  a
licensee to be an authorized payment location to actively search for
alternative  authorized payment  locations  for
  customers to pay billings from the utility  , and to
discontinue  utilizing   using  a licensee
as an authorized payment location when an adequate alternative has
been obtained.  The bill would require a public utility to
require a licensee that it uses as an authorized payment location to
provide a utility customer that makes a utility payment with
information, prepared by the utility and approved by   the
commission, about payment options and assistance available through
the utility.  The bill would prohibit a public utility from
having a licensee as an authorized payment location on or after
January 1, 2011  , unless the commission finds that the utility
has been unable to locate alternative payment locations, as
specified. In which case, the commission shall grant the public
utility a one-year extension in order to comply with these provisions
or to demonstrate the need for another one-year extension. A public
utility would be required to make reasonable attempts to work with
community-   based organizations to locate suitable
alternatives to the licensee or licensees it has approved to be
locations for customers to pay billings before seeking a waiver from
the commission  .
   Existing law makes any public utility, as defined, and any
corporation other than a public utility, that violates the Public
Utilities Act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the commission
guilty of a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   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.
   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.  Article 10 (commencing with Section 640) is added to
Chapter 3 of Part 1 of Division 1 of the Public Utilities Code, to
read:

      Article 10.  Utility Bill Payment


   640.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Authorized payment location" means a location approved by a
public utility for customers to pay billings from the utility.
   (b) "Licensee" means a licensee pursuant to the California
Deferred Deposit Transaction Law, as defined in Section 23001 of the
Financial Code.
   641.  (a)  No   Pursuant to subdivision (b)
of Section 382, the Legislature has recognized that all residents of
the state should be able to afford essential electricity and gas
supplies and has directed the commission to ensure that low-income
ratepayers are not jeopardized or overburdened by monthly energy
expenditures. It is the intent of the Legislature to promote
affordable utility services, including customer use of no-cost
utility financing options such as payment plans, when customers are
temporarily overburdened by monthly energy expenditures.  
   (b) It is the policy of the State of California that public
utilities should not authorize licensees to be authorized payment
locations for their customers. 
    (c)     In furtherance of this policy, the
commis   sion shall adopt rules providing that  no
public utility shall, after January 1, 2009,  authorize
  approve  a licensee to be an authorized payment
location. 
   (b) 
    (d)  The commission shall ensure that no public utility
 authorizes   approves  a licensee to be an
authorized payment location. 
   (c) 
    (e)  The commission shall require  each
  a  public utility that, prior to January 1, 2009,
authorized a licensee to be an authorized payment location to
actively search for alternative authorized payment locations, and to
discontinue  utilizing   using  a licensee
as an authorized payment location when an adequate alternative has
been obtained.  The public utility shall require a licensee that
is an authorized alternative payment location to provide a utility
customer that makes a utility payment with information, prepared by
the utility and approved by the commission, about payment options and
assistance available through the utility. The information shall be
provided in the appropriate language or languages for customers
served at that location and be accessible to persons with
disabilities.  
   (d) 
    (f)  Each public utility that has a licensee as an
authorized payment location prior to January 1, 2009, shall report to
the commission on June 30, 2009, December 31, 2009, June 30, 2010,
and December 31, 2010, on the number of licensee that are an
authorized payment locations. The commission may require the public
utility to report information relative to efforts taken pursuant to
subdivision (c) to obtain alternative authorized payment locations.
The commission shall relieve the public utility of making further
reports pursuant to this subdivision upon the public utility having
obtained replacement authorized payment locations and discontinuing
the use of any licensee as an authorized payment location. 
   (e) 
    (g)  No public utility shall have any licensee as an
authorized payment location on or after January 1, 2011  , unless
the commission finds that the utility has been unable to locate
alternative authorized payment locations that provide customers with
a generally comparable level of service and convenience. In which
case, the commission shall grant the public utility a one-year
extension in order to comply with this subdivision or to demonstrate
the need for another one-year extension. 
    (h)     Consistent with Section 381.5,
which proclaims the Legislature's intent to protect and strengthen
the current network of community service provides, a public utility
shall make reasonable attempts to work with community-based
organizations to locate suitable alternatives to the licensee or
  licensees it has approved to be locations for customers to
pay billings from the utility before seeking a waiver from the
commission pursuant to subdivision (g). The commission, when
reviewing a request by a utility to be able to continue using one or
more licensees as authorized payment locations, shall consider, among
other things, whether the utility has made reasonable attempts to
work with community-based organizations to locate suitable
alternatives to the licensee or licensees it has approved to be
locations for customers to pay billings from the utility  .
  SEC. 2.  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.  Article 10 (commencing with Section 640) is added to
Chapter 3 of Part 1 of Division 1 of the Public Utilities Code, to
read:

      Article 10.  Utility Bill Payment


   640.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Authorized payment location" means a location approved by a
public utility for customers to pay billings from the utility.
   (b) "Licensee" means a licensee pursuant to the California
Deferred Deposit Transaction Law, as defined in Section 23001 of the
Financial Code.
   641.  (a)  No   Pursuant to subdivision (b)
of Section 382, the Legislature has recognized that all residents of
the state should be able to afford essential electricity and gas
supplies and has directed the commission to ensure that low-income
ratepayers are not jeopardized or overburdened by monthly energy
expenditures. It is the intent of the Legislature to promote
affordable utility services, including customer use of no-cost
utility financing options such as payment plans, when customers are
temporarily overburdened by monthly energy expenditures.  
   (b) It is the policy of the State of California that public
utilities should not authorize licensees to be authorized payment
locations for their customers. 
    (c)     In furtherance of this policy, the
commis   sion shall adopt rules providing that no 
public utility shall, after January 1, 2009,  authorize
  approve  a licensee to be an authorized payment
location. 
   (b) 
    (d)  The commission shall ensure that no public utility
 authorizes   approves  a licensee to be an
authorized payment location. 
   (c) 
    (e)  The commission shall require  each
  a  public utility that, prior to January 1, 2009,
authorized a licensee to be an authorized payment location to
actively search for alternative authorized payment locations, and to
discontinue  utilizing   using  a licensee
as an authorized payment location when an adequate alternative has
been obtained.  The public utility shall require a licensee that
is an authorized alternative payment location to provide a utility
customer that makes a utility payment with information, prepared by
the utility and approved by the commission, about payment options and
assistance available through the utility. The information shall be
provided in the appropriate language or languages for customers
served at that location and be   accessible to persons with
disabilities.  
   (d) 
    (f)  Each public utility that has a licensee as an
authorized payment location prior to January 1, 2009, shall report to
the commission on June 30, 2009, December 31, 2009, June 30, 2010,
and December 31, 2010, on the number of licensee that are an
authorized payment locations. The commission may require the public
utility to report information relative to efforts taken pursuant to
subdivision (c) to obtain alternative authorized payment locations.
The commission shall relieve the public utility of making further
reports pursuant to this subdivision upon the public utility having
obtained replacement authorized payment locations and discontinuing
the use of any licensee as an authorized payment location. 
   (e) 
    (g)  No public utility shall have any licensee as an
authorized payment location on or after January 1, 2011  , unless
the commission finds that the utility has been unable to locate
alternative authorized payment locations that provide customers with
a generally comparable level of service and convenience. In which
case, the commission shall grant the public utility a one-year
extension in order to comply with this subdivision or to demonstrate
the need for another   one-year extension. 
    (h)     Consistent with Section 381.5,
which proclaims the Legislature's intent to protect and strengthen
the current network of community service provides, a public utility
shall make reasonable attempts to work with community-based
organizations to locate suitable alternatives to the licensee or
licensees it has approved to be locations for customers to pay
billings from the utility before seeking a waiver from the commission
pursuant to subdivision (g). The commission, when reviewing a
request by a utility to be able to continue using one or more
licensees as authorized payment locations, shall consider, among
other things, whether the utility has made reasonable attempts to
work with community-based organizations to locate suitable
alternatives to the licensee or licensees it has approved to be
locations for customers   to pay billings from the utility
.
  SEC. 2.  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.