Bill Text: CA SB1142 | 2023-2024 | Regular Session | Amended
Bill Title: Electrical and gas corporations: termination of services.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-28 - Referred to Com. on U. & E. [SB1142 Detail]
Download: California-2023-SB1142-Amended.html
|
Amended
IN
Senate
April 29, 2024 |
|
Amended
IN
Senate
March 18, 2024 |
| Introduced by Senator Menjivar |
February 14, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would provide that, for electrical or gas service, the reasonable time period for the amortization period is at minimum 24 months unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation. The bill would expressly prohibit the electrical or gas corporation from terminating service if the customer agrees to pay the unpaid balance of a delinquent account over the amortization period. The bill would prohibit an electrical or gas corporation from requiring a residential customer to pay more than 20% of the outstanding bill balance to retain service after serving the customer with the notice of termination. The bill would require the electrical or gas corporation, in determining the payment, to take into account the customer’s ability to pay. The bill
would prohibit an electrical or gas corporation from terminating service to a customer who fails to comply with an amortization agreement under specified circumstances, as provided.
Existing law requires the decision of an electrical, gas, heat, telephone, or water corporation to require a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnish service to be based solely on the credit worthiness of the applicant.
This bill would prohibit an electrical or gas corporation from requiring a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnishing service.
Under existing law, a violation of the Public Utilities Act is a crime.
Because the provisions of this bill would be a part of the act, a violation of which would be a crime, the bill would impose a state-mandated local program.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
(a)An electrical, gas, heat, or water corporation shall not terminate residential service for nonpayment of a delinquent account unless the corporation first gives notice of the delinquency and impending termination, as provided in Section 779.1.
(b)An
electrical, gas, heat, or water corporation shall not terminate residential service for nonpayment in any of the following situations:
(1)During the pendency of an investigation by the corporation of a customer or subscriber dispute or complaint.
(2)When a customer has been granted an extension of the period for payment of a bill.
(3)On the certification of a licensed physician and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortization agreement with the
corporation pursuant to subdivision (e) with respect to all charges that the customer is unable to pay before delinquency.
(4)For customers of electrical and gas corporations, the customer agrees to pay the unpaid balance of delinquent accounts over a minimum of 24 months unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation.
(c)A residential
customer who has initiated a complaint or requested an investigation within five days of receiving the disputed bill, or who has, before termination of service, made a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full within the normal period for payment, shall be given an opportunity for review of the complaint, investigation, or request by a review manager of the corporation. The review shall include consideration of whether the customer shall be permitted to amortize any unpaid balance of the delinquent account over a reasonable period of time, not to exceed 12
months for heat or water service, or a reasonable period of time that is at minimum 24 months for electrical or gas service unless a shorter amortization period is mutually agreed upon by the customer and the electrical or gas corporation, as appropriate. Termination of service shall not be effected for a customer complying with an amortization agreement, if the customer also keeps the account current as charges accrue in each subsequent billing period.
(d)A
customer whose complaint or request for an investigation pursuant to subdivision (c) has resulted in an adverse determination by the corporation may appeal the determination to the commission. Any subsequent appeal of the dispute or complaint to the commission is not subject to this section.
(e)A customer meeting the requirements of paragraph (3) of subdivision (b) shall, upon request, be permitted to amortize, over a period
specified in subdivision (c), the unpaid balance of any bill asserted to be beyond the means of the customer to pay within the normal period for payment.
(a)Every electrical, gas, heat, or water corporation shall allow every residential customer at least 19 days from the date of mailing its bill for services, postage prepaid, for payment of the charges demanded. A corporation subject to this section shall not terminate residential service for nonpayment of a delinquent account unless the corporation first gives notice of the delinquency and impending termination, at least 10 days before the proposed termination, by means of a notice mailed, postage prepaid, to the customer to whom the service is billed, not earlier than 19 days from the date of mailing the corporation’s bill for
services, and the 10-day period shall not commence until five days after the mailing of the notice.
(b)Every corporation shall make a reasonable attempt to contact an adult person residing at the premises of the customer by telephone or personal contact at least 24 hours before any termination of service, except that, whenever telephone or personal contact cannot be accomplished, the corporation shall give, either by mail or in person, a notice of termination of service at least 48 hours before termination.
(c)Every corporation shall make available to its residential customers who are 65 years of age or older, or who are dependent adults as defined in Section 15610.23 of the Welfare and Institutions Code, a third-party notification service, whereby the corporation will attempt to notify a person designated by the customer to receive notification when the customer’s account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third-party notification on a form provided by the corporation, and shall include the written consent of the designated third party. The third-party notification does not obligate the third party to pay the overdue charges, nor shall it prevent or delay termination of service.
(d)(1)Every notice of termination of service pursuant to subdivision (a) or (b) shall include all of the following information:
(A)The name and address of the customer whose account is delinquent.
(B)The amount of the delinquency.
(C)(i)The date by which payment or arrangements for payment is required to avoid termination.
(ii)For an electrical or gas corporation, the payment required to avoid termination shall take into account the customer’s ability to pay and other factors and shall not exceed 20 percent of the outstanding balance. The notice shall provide the customer with information, including information on the customer’s ability to pay and other relevant factors, required for setting up payments or arrangements for payments.
(D)The procedure by which the customer may initiate a complaint or request an investigation concerning service or charges.
(E)The procedure by which the customer may request amortization of the unpaid charges.
(F)The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable.
(G)The telephone number of a representative of the corporation who can provide additional information or institute arrangements for payment.
(H)The
telephone number of the commission to which inquiries by the customer may be directed.
(2)All written notices shall be in a clear and legible format.
(e)A residential customer whose complaint or request for an investigation has resulted in an adverse determination by the corporation may appeal the determination to the commission.
A subsequent appeal of the dispute or complaint to the commission is not subject to this section.
(f)(1)If a residential customer fails to comply with an amortization agreement, the corporation shall not terminate service without giving notice to the customer at least 48 hours
before
termination of the conditions the customer is required to meet to avoid termination, but this notice does not entitle the customer to further investigation by the corporation.
(2)An electrical or gas corporation shall not terminate service to a residential customer who fails to comply with an amortization agreement if the customer does both of the following:
(A)Makes a payment on the outstanding bill amount that takes into account the ability of the customer to pay and does not exceed 20 percent of the outstanding bill balance.
(B)Agrees to continuing payment of the unpaid balance subject to the amortization agreement.
(g)A
termination of service shall not be effected without compliance with this section. A service wrongfully terminated shall be restored without charge for the restoration of service, and a notation thereof shall be mailed to the customer at the customer’s billing address.
(a)The decision of a heat, telephone, or water corporation to require a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnishing service shall be based solely upon the credit worthiness of the applicant as
determined by the corporation.
(b)An electrical or gas corporation shall not require a new residential applicant to deposit a sum of money with the corporation before establishing an account and furnishing service.
SEC. 4.SECTION 1.
Section 779.6 is added to the Public Utilities Code, to read:779.6.
(a) An electrical or gas corporation shall restore service to a residential customer whose service was previously terminated for nonpayment of delinquent amounts upon the customer entering into an amortization agreement described in(b)An electrical or gas corporation shall not require payment of a reconnection fee before reconnecting a residential customer whose service was previously terminated for nonpayment of delinquent amounts.
(c)
(d)An electrical or gas corporation that fails to comply with this section is subject to a penalty of not less than five hundred dollars ($500), but not more than one hundred thousand dollars ($100,000), for each offense. Pursuant to Section 748.1, the electrical or gas shall not recover any penalty assessed from ratepayers.
