BILL NUMBER: AB 922	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013

INTRODUCED BY   Assembly Member Patterson

                        FEBRUARY 22, 2013

   An act to add Section 739.11 to the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 922, as amended, Patterson. Public utilities: rates: CARE
program: eligibility.
   (1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical and
gas corporations, as defined. The Public Utilities Act authorizes the
commission to fix the rates and charges for every public utility,
and requires that those rates and charges be just and reasonable.
Existing law requires the commission to designate a baseline quantity
of electricity and gas necessary for a significant portion of the
reasonable energy needs of the average residential customer, and
requires that electrical and gas corporations file rates and charges,
to be approved by the commission, providing baseline rates, and
requires the commission, in establishing baseline rates, to avoid
excessive rate increases for residential customers. The act requires
the commission to establish a program of assistance to low-income
electric and gas customers, referred to as the California Alternate
Rates for Energy or CARE program. A violation of the act is a crime.
   This bill would require the CARE application process to require an
applicant to submit proof of income when applying for enrollment.
The bill would require the applicant to submit the information under
the penalty of perjury. Because the bill would create a new crime,
the bill would impose a state-mandated local program. The bill would
require an electrical or gas corporation to conduct a random audit to
participants in the CARE program to ensure continued eligibility of
the participants. The bill would  impose specified penalties,
including a monetary penalty, on   require the removal
of  participants found to be ineligible and would require the
electrical or gas corporation to establish a procedure by which a
participant may challenge the finding of ineligibility. The bill
would specify the manner in which the monetary penalty is to be used.

   Because a violation of the above provision would be a crime, the
bill would impose a state-mandated local program.
   (2) 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.  Section 739.11 is added to the Public Utilities Code,
to read:
   739.11.  (a) The CARE application process developed pursuant to
paragraph (1) of subdivision (e) of Section 739.1 shall require both
of the following:
   (1) The submission of proof of income by the applicant when
applying for enrollment.
   (2) The information submitted with the application is submitted by
the applicant under the penalty of perjury.
   (b) An electrical or gas corporation shall perform a random audit
of participants in the CARE program to ensure continued eligibility
of the participants.
   (c) (1) Upon a finding of ineligibility pursuant to subdivision
(b), the electrical or gas corporation shall  do both of the
following:   remove the ineligible participant from the
CARE program.  
   (A) Remove the ineligible participant from the CARE program.
 
   (B) Assess a penalty in an amount that is three times the
difference between the CARE rates and the corresponding rates charged
to residential ratepayers not participating in the CARE program. The
penalty shall be added in the ineligible participant's future bill.

   (2) The electrical or gas corporation shall establish a procedure
by which a participant may challenge the finding of ineligibility.
   (3) Additional revenue collected by an electrical or gas
corporation resulting from the assessment of a penalty pursuant to
subparagraph (B) of paragraph (1) shall be used for both of the
following purposes:
   (A) To reimburse the corporation for the costs of administering
this section.
   (B) Until the corporation's next periodic general rate case review
of cost allocation and rate design, to be a credit toward reducing
the rates of residential ratepayers not participating in the CARE
program.
  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.