BILL ANALYSIS
SB 1154
Page 1
SENATE THIRD READING
SB 1154 (Cedillo)
As Amended August 16, 2010
Majority vote
SENATE VOTE :35-0
UTILITIES & COMMERCE 13-2
APPROPRIATIONS 12-5
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|Ayes:|Bradford, Tom Berryhill, |Ayes:|Fuentes, Bradford, |
| |Buchanan, Carter, | |Huffman, Coto, Davis, De |
| |Fletcher, Fong, Fuentes, | |Leon, Gatto, Hall, |
| |Furutani, Huffman, Ma, | |Skinner, Solorio, |
| |Skinner, Swanson, | |Torlakson, Torrico |
| |Villines | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Fuller |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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SUMMARY : Requires the California Public Utilities Commission
(PUC) to ensure that all applications for PUC-administered
low-income programs include information about the applicant's
eligibility to qualify for the federal Earned Income Tax Credit
(Tax Credit). This bill sunsets after four years.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Administrative costs to PUC would be minor and absorbable.
2)Annual special fund cost to provide Tax Credit information to
Universal Lifeline Telephone Service (UTLS) participants would
be about $400,000, based on the cost of providing a two-sided
insert for $4 million new applicants and recertification
applicants annually. [Universal Lifeline Telephone Service
Fund]
3)Any costs to provide Tax Credit information to low-income
customers eligible for the California Alternative Rates for
Energy (CARE) program would be borne by natural gas and
electricity ratepayers.
SB 1154
Page 2
COMMENTS : The CARE program requires investor owned utilities to
provide a 20% discount on natural gas and electricity service to
specified low income customers. This program is managed by the
investor-owned utilities and paid through a subsidy from all
other utility ratepayers. The UTLS program provides a 50%
discount on basic landline phone service to qualifying
low-income households. This program is managed by an outside
contractor on behalf of the PUC and is supported by a surcharge
on intrastate phone calls.
The Tax Credit provides a refundable federal income tax credit
for low and moderate income working households. According to the
New American Foundation, about 800,000 California residents who
are eligible for the Tax Credit do not claim an estimated $1.2
billion in credits. This bill seeks to expand the number of
eligible Californians taking advantage of the Tax Credit by
making available information about the program to CARE and UTLS
applicants.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0005935