BILL NUMBER: AB 1180	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2016
	AMENDED IN ASSEMBLY  APRIL 9, 2015

INTRODUCED BY   Assembly Member Cristina Garcia

                        FEBRUARY 27, 2015

   An act to  amend Section 755   add and repeal
Section 755.5  of the Public Utilities Code, relating to
utility service.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1180, as amended, Cristina Garcia. Rates and charges for
 electric, gas, and  water service:  credit
or debit card payment.   payment transaction fees. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical, gas, and
water corporations. Existing law 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 authorizes an
electrical, gas, or water corporation to offer credit card and debit
card bill payment options, if approved by the commission, and, upon
approval, authorizes an electrical, gas, or water corporation to
 recover   recover, through an individual
customer transaction fee,  reasonable transaction costs incurred
by the electrical, gas, or water corporation from those customers
that choose  to pay by those payment options.  
those methods of payment.  Existing law includes statements of
legislative intent relative to electrical, gas, and water
corporations offering customers the option to pay by credit card or
debit card. 
   This bill would delete the express authorization for an
electrical, gas, or water corporation to offer credit card and debit
card bill payment options, if approved by the commission, and, upon
approval, recover reasonable transaction costs incurred by the
electrical, gas, or water corporation from those customers that
choose to pay by those payment options. The bill would revise the
statements of legislative intent to state the intent of the
Legislature that customers of electrical, gas, or water corporations
be allowed to pay their utility bills with forms of payment that are
generally accepted in the retail marketplace and that the commission
maintains its existing regulatory authority over the reasonableness
of expenses incurred by an electrical, gas, or water corporation for
providing customers the option of paying their bills by credit card
and debit card through existing regulatory mechanisms.  

   This bill would, until January 1, 2025, authorize a water
corporation with more than 10,000 connections to seek commission
approval to operate a pilot program designed to evaluate customer
interest in, and utilization of, bill payment options, including, but
not limited to, credit card and debit card bill payment options, for
their water bills and to assess the cost-effectiveness of, and
public interests served by, customer access to those bill payment
options. The bill would require the commission to allow a water
corporation to recover the reasonable expenses incurred by the water
corporation in providing its customers with these bill payment
options, and to allow water corporations to not impose a transaction
fee on its customers for using these bill payment options. The bill
would require the commission, by July 1, 2023, to submit a report
that includes data regarding customer utilization and the
cost-effectiveness of the bill payment options provided under the
pilot program. The bill would require the report, based on this data
and an assessment of the public interests served by these bill
payment options, to evaluate the usefulness of an individual customer
transaction fee and include a recommendation regarding individual
customer transaction fees for credit card and debit card bill
payments accepted by water corporations. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 755.5 is added to the 
 Public Utilities Code   , to read:  
   755.5.  (a) A water corporation with more than 10,000 service
connections may seek, through its general rate case application,
commission approval to operate a pilot program designed to evaluate
customer interest in, and utilization of, bill payment options,
including, but not limited to, credit card and debit card bill
payment options, for their water bills and to assess the
cost-effectiveness of, and public interests served by, customer
access to those bill payment options.
   (b) Notwithstanding Section 755, the commission shall allow a
water corporation to recover the reasonable expenses incurred by the
water corporation in providing to its customers bill payment options
pursuant to subdivision (a) and shall not require the water
corporation to impose a transaction fee on its customers.
   (c) The commission shall ensure that accepting bill payment
options pursuant to subdivision (a) neither increases nor decreases
the rate of return of the water corporation.
   (d) This section shall remain in effect only until January 1,
2025, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2025, deletes or extends
that date. 
   SEC. 2.    By July 1, 2023, the commission shall
submit to the Assembly Committee on Utilities and Commerce and the
Senate Committee on Energy, Utilities and Communications a report
that includes, on an aggregated basis, data regarding customer
utilization and the cost-effectiveness of the bill payment options
provided by the water corporations operating pilot programs pursuant
to Section 755.5 of the Public Utilities Code. Based on this data and
an assessment of the public interests served by providing these bill
payment options, the report shall evaluate the usefulness of the
individual customer transaction fee required by Section 755 of the
Public Utilities Code, and include a recommendation regarding
individual customer transaction fees for credit card and debit card
payments accepted by water corporations.  
       
  SECTION 1.    Section 755 of the Public Utilities
Code is amended to read:
   755.  It is the intent of the Legislature that:
   (a) Customers of electrical, gas, or water corporations be allowed
to pay their utility bills with forms of payment that are generally
accepted in the retail marketplace.
   (b) An electrical, gas, or water corporation that offers customers
credit card and debit card payment options, recover the reasonable
expenses incurred by the electrical, gas, or water corporation for
providing the customers the option of paying their bills by credit
card and debit card.
   (c) The acceptance of credit cards and debit cards neither
increases nor decreases the rate of return of the electrical, gas, or
water corporation.
   (d) The commission maintains its existing regulatory authority
over the reasonableness of expenses incurred by an electrical, gas,
or water corporation for providing customers the option of paying
their bills by credit card and debit card through existing regulatory
mechanisms.