Amended in Assembly June 14, 2013

Amended in Senate May 28, 2013

Amended in Senate May 8, 2013

Amended in Senate April 15, 2013

Senate BillNo. 611


Introduced by Senator Hill

February 22, 2013


An act to amendbegin delete Sections 101 and 110 of, and to add Section 203.5 to, the Business and Professions Code, and to amendend delete Sections 309.5,begin delete 402, 409,end delete 1731, 1756, and 5900 of the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL’S DIGEST

SB 611, as amended, Hill. Public Utilities Commission: Division of Ratepayer Advocates.

The California Constitution establishes the Public Utilities Commission, with jurisdiction over all public utilities, as defined. Existing law establishes the Division of Ratepayer Advocates within the commission to represent the interests of public utility customers and subscribers, with the goal of obtaining the lowest possible rate for service consistent with reliable and safe service levels. Existing law requires the Director of the Division of Ratepayer Advocates to submit an annual budget to the commission for final approval.begin insert Existing law authorizes the director of the division to appoint a lead attorney to represent the division and requires all attorneys assigned by the Public Utilities Commission to perform services for the division to report to and be directed by the lead attorney for the division.end insert

This bill would rename the Division of Ratepayer Advocates the Office of Ratepayer Advocates,begin delete would transfer the office to the Department of Consumer Affairs,end delete would authorize the office to seek rehearings and judicial review of commission decisions, and would require that the director of the office develop a budget for the office that would be submitted to the Department of Finance for final approval.begin insert The bill would require the lead attorney to obtain adequate legal personnel for the work to be conducted by the office from the Public Utilities Commission’s attorney and requires the Public Utilities Commission’s attorney to timely and appropriately fulfill all requests for legal personnel made by the lead attorney for the office, provided the office has sufficient moneys and positions in its budget for the services requested. The bill would make other conforming changes.end insert

begin delete

Existing law establishes the Public Utilities Commission Utilities Reimbursement Account and authorizes the commission to annually determine a fee to be paid by every public utility providing service directly to customers or subscribers and subject to the jurisdiction of the commission, except for a railroad corporation. The commission is required to establish the fee, with the approval of the Department of Finance, to produce a total amount equal to that amount established in the authorized commission budget for the same year, and an appropriate reserve to regulate public utilities, less specified sources of funding. Existing law provides for the Public Utilities Commission Ratepayer Advocate Account in the General Fund and requires that money from the Public Utilities Commission Utilities Reimbursement Account be transferred in the annual Budget Act to the Public Utilities Commission Ratepayer Advocate Account for performance of the duties of the division.

end delete
begin delete

This bill would require the commission to continue to collect moneys through Public Utilities Commission reimbursement fees for the support of the Office of Ratepayer Advocates in the amounts authorized by the Department of Finance. The bill would provide that moneys collected for the support of the Office of Ratepayer Advocates be paid into the Office of Ratepayer Advocates Special Fund Account, which the bill would create in the existing Consumer Affairs Fund. The bill would provide that moneys in the account would be available, upon appropriation by the Legislature, only for use by the Office of Ratepayer Advocates in performing its assigned functions and that moneys in the account are held in trust on behalf of the public utility ratepayers from whom the moneys were collected and may not be appropriated, or in any other manner transferred or otherwise diverted, to any other fund or entity.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin delete
P3    1

SECTION 1.  

Section 101 of the Business and Professions Code
2 is amended to read:

3

101.  

The department is comprised of:

4(a) The Dental Board of California.

5(b) The Medical Board of California.

6(c) The State Board of Optometry.

7(d) The California State Board of Pharmacy.

8(e) The Veterinary Medical Board.

9(f) The California Board of Accountancy.

10(g) The California Architects Board.

11(h) The Bureau of Barbering and Cosmetology.

12(i) The Board for Professional Engineers and Land Surveyors.

13(j) The Contractors’ State License Board.

14(k) The Bureau for Private Postsecondary Education.

15(l) The Bureau of Electronic and Appliance Repair, Home
16Furnishings, and Thermal Insulation.

17(m) The Board of Registered Nursing.

18(n) The Board of Behavioral Sciences.

19(o) The State Athletic Commission.

20(p) The Cemetery and Funeral Bureau.

21(q) The State Board of Guide Dogs for the Blind.

22(r) The Bureau of Security and Investigative Services.

23(s) The Court Reporters Board of California.

24(t) The Board of Vocational Nursing and Psychiatric
25Technicians.

26(u) The Landscape Architects Technical Committee.

27(v) The Division of Investigation.

28(w) The Bureau of Automotive Repair.

29(x) The Respiratory Care Board of California.

30(y) The Acupuncture Board.

31(z) The Board of Psychology.

32(aa) The California Board of Podiatric Medicine.

33(ab) The Physical Therapy Board of California.

P4    1(ac) The Arbitration Review Program.

2(ad) The Physician Assistant Committee.

3(ae) The Speech-Language Pathology and Audiology Board.

4(af) The California Board of Occupational Therapy.

5(ag) The Osteopathic Medical Board of California.

6(ah) The Naturopathic Medicine Committee.

7(ai) The Dental Hygiene Committee of California.

8(aj) The Professional Fiduciaries Bureau.

9(ak) The Office of Ratepayer Advocates.

10(al) Any other boards, offices, or officers subject to its
11jurisdiction by law.

12

SEC. 2.  

Section 110 of the Business and Professions Code is
13amended to read:

14

110.  

(a) Except as provided in subdivision (b), the department
15shall have possession and control of all records, books, papers,
16offices, equipment, supplies, funds, appropriations, land and other
17property--real or personal--now or hereafter held for the benefit
18or use of all of the bodies, offices or officers comprising the
19department. The title to all property held by any of these bodies,
20offices or officers for the use and benefit of the state, is vested in
21the State of California to be held in the possession of the
22department. Except as authorized by a board, the department shall
23not have the possession and control of examination questions prior
24to submission to applicants at scheduled examinations.

25(b) The Office of Ratepayer Advocates shall have possession
26and control of all records, books, papers, offices, equipment,
27supplies, funds, appropriations, land and other property, real or
28personal, now or hereafter held for the benefit or use of the office.
29The title to all property held by the Office of Ratepayer Advocates
30is vested in the State of California in trust on behalf of the
31ratepayers of the state’s public utilities, to be held in the possession
32of the office. The records of the Office of Ratepayer Advocates
33are subject to Section 583 of the Public Utilities Code.

34

SEC. 3.  

Section 203.5 is added to the Business and Professions
35Code
, to read:

36

203.5.  

Within the Consumer Affairs Fund there is hereby
37created the Office of Ratepayer Advocates Special Fund Account.
38Moneys in the account shall be available, upon appropriation by
39the Legislature, only for use by the Office of Ratepayer Advocates
40in performing its functions pursuant to Section 309.5 of the Public
P5    1Utilities Code. Moneys in the account are held in trust on behalf
2of the public utility ratepayers from whom the moneys were
3collected and may not be appropriated, or in any other manner
4transferred or otherwise diverted, to any other fund or entity.

5

SEC. 4.  

Section 309.5 of the Public Utilities Code is amended
6to read:

7

309.5.  

(a) There is, within the Department of Consumer
8Affairs, an Office of Ratepayer Advocates to represent and
9advocate on behalf of the interests of public utility customers and
10subscribers within the jurisdiction of the commission. The goal of
11the office shall be to obtain the lowest possible rate for service
12consistent with reliable and safe service levels. For revenue
13allocation and rate design matters, the office shall primarily
14consider the interests of residential and small commercial
15customers. The office may seek rehearing and judicial review of
16commission decisions pursuant to Article 2 (commencing with
17Section 1731) and Article 3 (commencing with Section 1756) of
18Chapter 9.

19(b) The director of the office shall be appointed by, and serve
20at the pleasure of, the Governor, subject to confirmation by the
21Senate.

22The director shall annually appear before the appropriate policy
23committees of the Assembly and the Senate to report on the
24activities of the office.

25(c) The director shall develop a budget for the office which shall
26be subject to final approval of the Department of Finance. As
27authorized in the approved budget, the office shall employ
28personnel and resources, including attorneys and other legal support
29staff at a level sufficient to ensure that customer and subscriber
30interests are effectively represented in all significant proceedings.
31The office may employ experts necessary to carry out its functions.
32The director may appoint a lead attorney who shall represent the
33office, and shall report to and serve at the pleasure of the director.
34All attorneys performing services for the office shall report to and
35be directed by the lead attorney appointed by the director.

36(d) The commission shall develop appropriate procedures to
37ensure that the existence of the office does not create a conflict of
38roles for any employee. The procedures shall include, but shall
39not be limited to, the development of a code of conduct and
40procedures for ensuring that advocates and their representatives
P6    1on a particular case or proceeding are not advising decisionmakers
2on the same case or proceeding.

3(e) The office may compel the production or disclosure of any
4information it deems necessary to perform its duties from any
5entity regulated by the commission, provided that any objections
6to any request for information shall be decided in writing by the
7assigned commissioner or by the commission, if there is no
8assigned commissioner.

9(f) The commission shall continue to collect moneys pursuant
10to Chapter 2.5 (commencing with Section 401) for the support of
11the Office of Ratepayer Advocates in the amounts authorized by
12the Department of Finance. Moneys from the Public Utilities
13Commission Utilities Reimbursement Account in the General Fund
14shall be transferred in the annual Budget Act to the Office of
15Ratepayer Advocates Special Fund Account in the Consumer
16Affairs Fund. The funds in the Office of Ratepayer Advocates
17Special Fund Account shall be utilized exclusively by the office
18in the performance of its duties as determined by the director. The
19director shall annually submit a staffing report to the Director of
20Finance containing a comparison of the staffing levels for each
21five-year period.

22(g) On or before January 10 of each year, the office shall provide
23to the chairperson of the fiscal committee of each house of the
24Legislature and to the Joint Legislative Budget Committee all of
25the following information:

26(1) The number of personnel years utilized during the prior year
27by the Office of Ratepayer Advocates.

28(2) The total dollars expended by the Office of Ratepayer
29Advocates in the prior year, the estimated total dollars expended
30in the current year, and the total dollars proposed for appropriation
31in the following budget year.

32(3) Workload standards and measures for the Office of
33Ratepayer Advocates.

34(h) The office shall meet and confer in an informal setting with
35a regulated entity prior to issuing a report or pleading to the
36commission regarding alleged misconduct, or a violation of a law
37or a commission rule or order, raised by the office in a complaint.
38The meet and confer process shall be utilized in good faith to reach
39agreement on issues raised by the office regarding any regulated
40entity in the complaint proceeding.

end delete
P7    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 309.5 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
2amended to read:end insert

3

309.5.  

(a) There is within the commissionbegin delete a Divisionend deletebegin insert an
4independent Officeend insert
of Ratepayer Advocates to represent and
5advocate on behalf of the interests of public utility customers and
6subscribers within the jurisdiction of the commission. The goal of
7thebegin delete divisionend deletebegin insert officeend insert shall be to obtain the lowest possible rate for
8service consistent with reliable and safe service levels. For revenue
9allocation and rate design matters, thebegin delete divisionend deletebegin insert officeend insert shall primarily
10consider the interests of residential and small commercial
11customers.begin insert The office may seek rehearing and judicial review of
12commission decisions pursuant to Article 2 (commencing with
13Section 1731) and Article 3 (commencing with Section 1756) of
14Chapter 9.end insert

15(b) The director of thebegin delete divisionend deletebegin insert officeend insert shall be appointed by, and
16serve at the pleasure of, the Governor, subject to confirmation by
17the Senate.

18The director shall annually appear before the appropriate policy
19committees of the Assembly and the Senate to report on the
20activities of thebegin delete division.end deletebegin insert office.end insert

21(c) The director shall develop a budget for thebegin delete division whichend delete
22begin insert office thatend insert shall be subject to final approval of thebegin delete commission. In
23accordance withend delete
begin insert Department of Finance. As authorized inend insert the
24approved budget, thebegin delete commission shall, by rule or order, provide
25for the assignment of personnel to, and the functioning of, the
26division. The division mayend delete
begin insert office shallend insert employbegin delete experts necessary
27to carry out its functions. Personnelend delete
begin insert personnelend insert and resources,
28including attorneys and other legalbegin delete support, shall be provided by
29the commission to the divisionend delete
begin insert support staff,end insert at a level sufficient
30to ensure that customer and subscriber interests are effectively
31represented in all significant proceedings. Thebegin insert office may employ
32experts necessary to carry out its functions. Theend insert
director may
33appoint a lead attorney who shall represent thebegin delete division,end deletebegin insert office,end insert
34 and shall report to and serve at the pleasure of the director.begin delete All
35attorneys assignedend delete
begin insert The lead attorney for the office shall obtain
36adequate legal personnel for the work to be conductedend insert
by the
37begin delete commissionend deletebegin insert office from the commission’s attorney appointed
38pursuantend insert
tobegin delete perform services for the divisionend deletebegin insert Section 307. The
39commission’s attorneyend insert
shallbegin delete report toend deletebegin insert timelyend insert andbegin delete be directedend delete
40begin insert appropriately fulfill all requests for legal personnel madeend insert by the
P8    1lead attorneybegin delete appointed byend deletebegin insert forend insert thebegin delete director.end deletebegin insert office, provided the
2office has sufficient moneys and positions in its budget for the
3services requested.end insert

4(d) The commission shall develop appropriate procedures to
5ensure that the existence of thebegin delete divisionend deletebegin insert officeend insert does not create a
6conflict of roles for any employee. The procedures shall include,
7but shall not be limited to, the development of a code of conduct
8and procedures for ensuring that advocates and their representatives
9on a particular case or proceeding are not advising decisionmakers
10on the same case or proceeding.

11(e) Thebegin delete divisionend deletebegin insert officeend insert may compel the production or disclosure
12of any information it deems necessary to perform its duties from
13any entity regulated by the commission, provided that any
14objections to any request for information shall be decided in writing
15by the assigned commissioner or by the president of the
16commission, if there is no assigned commissioner.

17(f) There is hereby created the Public Utilities Commission
18Ratepayer Advocate Account in the General Fund. Moneys from
19the Public Utilities Commission Utilities Reimbursement Account
20in the General Fund shall be transferred in the annual Budget Act
21to the Public Utilities Commission Ratepayer Advocate Account.
22The funds in the Public Utilities Commission Ratepayer Advocate
23Account shall bebegin insert a budgetary program fund administered andend insert
24 utilized exclusively by thebegin delete divisionend deletebegin insert officeend insert in the performance of
25its duties as determined by the director. The director shall annually
26submit a staffing report containing a comparison of the staffing
27levels for each five-year period.

28(g) On or before January 10 of each year, thebegin delete commissionend deletebegin insert officeend insert
29 shall provide to the chairperson of the fiscal committee of each
30house of the Legislature and to the Joint Legislative Budget
31Committee all of the following information:

32(1) The number of personnel yearsbegin delete assigned toend deletebegin insert utilized duringend insert
33 thebegin delete Divisionend deletebegin insert prior year by the Officeend insert of Ratepayer Advocates.

34(2) The total dollars expended by thebegin delete Divisionend deletebegin insert Officeend insert of
35Ratepayer Advocates in the prior year, the estimated total dollars
36expended in the current year, and the total dollars proposed for
37appropriation in the following budget year.

38(3) Workload standards and measures for thebegin delete Divisionend deletebegin insert Officeend insert
39 of Ratepayer Advocates.

P9    1(h) Thebegin delete divisionend deletebegin insert officeend insert shall meet and confer in an informal
2setting with a regulated entity prior to issuing a report or pleading
3to the commission regarding alleged misconduct, or a violation of
4a law or a commission rule or order, raised by thebegin delete divisionend deletebegin insert officeend insert
5 in a complaint. The meet and confer process shall be utilized in
6good faith to reach agreement on issues raised by thebegin delete divisionend delete
7begin insert officeend insert regarding any regulated entity in the complaint proceeding.

begin delete8

SEC. 5.  

Section 402 of the Public Utilities Code is amended
9to read:

10

402.  

The Public Utilities Commission Utilities Reimbursement
11Account is hereby continued in existence. All fees collected by
12the commission pursuant to Section 431 shall be transmitted to
13the Treasurer at least quarterly for deposit in the account or the
14Office of Ratepayer Advocates Special Fund Account within the
15Consumer Affairs Fund.

end delete
begin delete16

SEC. 6.  

Section 409 of the Public Utilities Code is amended
17to read:

18

409.  

(a) Notwithstanding any other provision of law, all fees
19and charges collected pursuant to this code by the commission
20from each public utility subject to Section 431, with the exception
21of any penalty collected pursuant to Section 405 or 406, shall be
22deposited in the Public Utilities Commission Utilities
23Reimbursement Account, in addition to the fee authorized by
24Section 431, or in the Office of Ratepayer Advocates Special Fund
25Account within the Consumer Affairs Fund.

26(b) A penalty collected pursuant to Section 405 or 406 shall be
27deposited in the General Fund.

end delete
28

begin deleteSEC. 7.end delete
29begin insertSEC. 2.end insert  

Section 1731 of the Public Utilities Code is amended
30to read:

31

1731.  

(a) The commission shall set an effective date when
32issuing an order or decision. The commission may set the effective
33date of an order or decision prior to the date of issuance of the
34order or decision.

35(b) (1) After any order or decision has been made by the
36commission, any party to the action or proceeding, including the
37Office of Ratepayer Advocates, or any stockholder or bondholder
38or other party pecuniarily interested in the public utility affected,
39may apply for a rehearing in respect to any matters determined in
40the action or proceeding and specified in the application for
P10   1rehearing. The commission may grant and hold a rehearing on
2those matters, if in its judgment sufficient reason is made to appear.
3No cause of action arising out of any order or decision of the
4commission shall accrue in any court to any corporation or person
5unless the corporation or person has filed an application to the
6commission for a rehearing within 30 days after the date of
7issuance or within 10 days after the date of issuance in the case of
8an order issued pursuant to either Article 5 (commencing with
9Section 816) or Article 6 (commencing with Section 851) of
10Chapter 4 relating to security transactions and the transfer or
11encumbrance of utility property.

12(2) The commission shall notify the parties of the issuance of
13an order or decision by either mail or electronic transmission.
14Notification of the parties may be accomplished by one of the
15following methods:

16(A) Mailing the order or decision to the parties to the action or
17proceeding.

18(B) If a party to an action or proceeding consents in advance to
19receive notice of any order or decision related to the action or
20proceeding by electronic mail address, notification of the party
21may be accomplished by transmitting an electronic copy of the
22official version of the order or decision to the party if the party
23has provided an electronic mail address to the commission.

24(C) If a party to an action or proceeding consents in advance to
25receive notice of any order or decision related to the action or
26proceeding by electronic mail address, notification of the party
27may be accomplished by transmitting a link to an Internet Web
28site where the official version of the order or decision is readily
29available to the party if the party has provided an electronic mail
30address to the commission.

31(3) For the purposes of this article, “date of issuance” means
32the mailing or electronic transmission date that is stamped on the
33official version of the order or decision.

34(c) No cause of action arising out of any order or decision of
35the commission construing, applying, or implementing the
36provisions of Chapter 4 of the Statutes of the 2001-02 First
37Extraordinary Session that (1) relates to the determination or
38implementation of the department’s revenue requirements, or the
39establishment or implementation of bond or power charges
40necessary to recover those revenue requirements, or (2) in the sole
P11   1determination of the Department of Water Resources, the expedited
2review of order or decision of the commission is necessary or
3desirable, for the maintenance of any credit ratings on any bonds
4or notes of the department issued pursuant to Division 27
5(commencing with Section 80000) of the Water Code or for the
6 department to meet its obligations with respect to any bonds or
7notes pursuant to that division, shall accrue in any court to any
8corporation or person unless the corporation or person has filed
9an application with the commission for a rehearing within 10 days
10after the date of issuance of the order or decision. The Department
11of Water Resources shall notify the commission of any
12determination pursuant to paragraph (2) of this subdivision prior
13to the issuance by the commission of any order or decision
14construing, applying, or implementing the provisions of Chapter
154 of the Statutes of the 2001-02 First Extraordinary Session. The
16commission shall issue its decision and order on rehearing within
1720 days after the filing of the application.

18

begin deleteSEC. 8.end delete
19begin insertSEC. 3.end insert  

Section 1756 of the Public Utilities Code is amended
20to read:

21

1756.  

(a) Within 30 days after the commission issues its
22decision denying the application for a rehearing, or, if the
23application was granted, then within 30 days after the commission
24issues its decision on rehearing, or at least 120 days after the
25application is granted if no decision on rehearing has been issued,
26any aggrieved party, including the Office of Ratepayer Advocates,
27may petition for a writ of review in the court of appeal or the
28Supreme Court for the purpose of having the lawfulness of the
29original order or decision or of the order or decision on rehearing
30inquired into and determined. If the writ issues, it shall be made
31returnable at a time and place specified by court order and shall
32direct the commission to certify its record in the case to the court
33within the time specified.

34(b) The petition for review shall be served upon the executive
35director and the general counsel of the commission either
36personally or by service at the office of the commission.

37(c) For purposes of this section, the issuance of a decision or
38the granting of an application shall be construed to have occurred
39on the date of issuance, as defined in paragraph (3) of subdivision
40(b) of Section 1731.

P12   1(d) The venue of a petition filed in the court of appeal pursuant
2to this section shall be in the judicial district in which the petitioner
3resides. If the petitioner is a business, venue shall be in the judicial
4district in which the petitioner has its principal place of business
5in California.

6(e) Any party may seek from the Supreme Court, pursuant to
7California Rules of Court, an order transferring related actions to
8a single appellate district.

9(f) For purposes of this section, review of decisions pertaining
10solely to water corporations shall only be by petition for writ of
11review in the Supreme Court, except that review of complaint or
12enforcement proceedings may be in the court of appeal or the
13Supreme Court.

14(g) No order or decision arising out of a commission proceeding
15under Section 854 shall be reviewable in the court of appeal
16pursuant to subdivision (a) if the application for commission
17authority to complete the merger or acquisition was filed on or
18before December 31, 1998, by two telecommunications-related
19corporations including at least one which provides local
20telecommunications service to over one million California
21customers. These orders or decisions shall be reviewed pursuant
22to the Public Utilities Code in existence on December 31, 1998.

23

begin deleteSEC. 9.end delete
24begin insertSEC. 4.end insert  

Section 5900 of the Public Utilities Code is amended
25to read:

26

5900.  

(a)  The holder of a state franchise shall comply with
27the provisions of Sections 53055, 53055.1, 53055.2, and 53088.2
28of the Government Code, and any other customer service standards
29pertaining to the provision of video service established by federal
30law or regulation or adopted by subsequent enactment of the
31Legislature. All customer service and consumer protection
32standards under this section shall be interpreted and applied to
33accommodate newer or different technologies while meeting or
34exceeding the goals of the standards.

35(b) The holder of a state franchise shall comply with provisions
36of Section 637.5 of the Penal Code and the privacy standards
37contained in Section 551 et seq. of Title 47 of the United States
38Code.

39(c) The local entity shall enforce all of the customer service and
40protection standards of this section with respect to complaints
P13   1received from residents within the local entity’s jurisdiction, but
2it may not adopt or seek to enforce any additional or different
3customer service or other performance standards under Section
453055.3 or subdivision (q), (r), or (s) of Section 53088.2 of the
5Government Code, or any other authority or provision of law.

6(d) The local entity shall, by ordinance or resolution, provide a
7schedule of penalties for any material breach by a holder of a state
8franchise of this section. No monetary penalties shall be assessed
9for a material breach if it is out of the reasonable control of the
10holder. Further, no monetary penalties may be imposed prior to
11January 1, 2007. Any schedule of monetary penalties adopted
12pursuant to this section shall in no event exceed five hundred
13dollars ($500) for each day of each material breach, not to exceed
14one thousand five hundred dollars ($1,500) for each occurrence
15of a material breach. However, if a material breach of this section
16has occurred, and the local entity has provided notice and a fine
17or penalty has been assessed, and if a subsequent material breach
18of the same nature occurs within 12 months, the penalties may be
19increased by the local entity to a maximum of one thousand dollars
20($1,000) for each day of each material breach, not to exceed three
21thousand dollars ($3,000) for each occurrence of the material
22breach. If a third or further material breach of the same nature
23occurs within those same 12 months, and the local entity has
24provided notice and a fine or penalty has been assessed, the
25penalties may be increased to a maximum of two thousand five
26hundred dollars ($2,500) for each day of each material breach, not
27to exceed seven thousand five hundred dollars ($7,500) for each
28occurrence of the material breach. With respect to video providers
29subject to a franchise or license, any monetary penalties assessed
30under this section shall be reduced dollar-for-dollar to the extent
31any liquidated damage or penalty provision of a current cable
32television ordinance, franchise contract, or license agreement
33imposes a monetary obligation upon a video provider for the same
34customer service failures, and no other monetary damages may be
35assessed.

36(e) The local entity shall give the video service provider written
37notice of any alleged material breach of the customer service
38standards of this division and allow the video provider at least 30
39days from receipt of the notice to remedy the specified material
40breach.

P14   1(f) A material breach for the purposes of assessing penalties
2shall be deemed to have occurred for each day within the
3jurisdiction of each local entity, following the expiration of the
4period specified in subdivision (e), that any material breach has
5not been remedied by the video service provider, irrespective of
6the number of customers or subscribers affected.

7(g) Any penalty assessed pursuant to this section shall be
8remitted to the local entity, which shall submit one-half of the
9penalty to the Digital Divide Account established in Section 280.5.

10(h) Any interested person may seek judicial review of a decision
11of the local entity in a court of appropriate jurisdiction. For this
12purpose, a court of law shall conduct a de novo review of any
13issues presented.

14(i) This section shall not preclude a party affected by this section
15from utilizing any judicial remedy available to that party without
16regard to this section. Actions taken by a local legislative body,
17including a local franchising entity, pursuant to this section shall
18not be binding upon a court of law. For this purpose, a court of
19law shall conduct de novo review of any issues presented.

20(j) For purposes of this section, “material breach” means any
21substantial and repeated failure of a video service provider to
22comply with service quality and other standards specified in
23subdivision (a).

24(k) The Office of Ratepayer Advocates shall have authority to
25advocate on behalf of video subscribers regarding renewal of a
26state-issued franchise and enforcement of this section, and Sections
275890 and 5950. For this purpose, the office shall have access to
28any information in the possession of the commission subject to all
29restrictions on disclosure of that information that are applicable
30to the commission.



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