BILL NUMBER: AB 2511	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 21, 2008

   An act to add Article 10 (commencing with Section 640) to Chapter
3 of Part 1 of Division 1 of the Public Utilities Code, relating to
public utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2511, as introduced, Salas. Public utilities: bill payment.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law authorizes the
commission to establish rules for all public utilities, subject to
control by the Legislature.
   The existing California Deferred Deposit Transaction Law provides
for regulation of persons engaged in the business of making or
negotiating deferred deposit transactions, which are transactions in
which the lender defers depositing a consumer's personal check until
a specific date pursuant to a written agreement. The California
Deferred Deposit Transaction law provides for the licensing of those
persons by the Commissioner of Corporations, imposes various duties
on a person engaged in the business of making or negotiating deferred
deposit transactions, and specifies the rights of a consumer in that
regard.
   This bill would prohibit a public utility from authorizing a
licensee under the California Deferred Deposit Transaction Law to be
an additional authorized payment location, as defined, and would
require the commission to ensure compliance with this requirement.
The bill would require any public utility that, prior to January 1,
2009, authorized a licensee to be an authorized payment location to
actively search for alternative authorized payment locations, and to
discontinue utilizing a licensee as an authorized payment location
when an adequate alternative has been obtained. The bill would
prohibit a public utility from having a licensee as an authorized
payment location on or after January 1, 2011.
   Existing law makes any public utility, as defined, and any
corporation other than a public utility, that violates the Public
Utilities Act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the commission
guilty of a crime.
   Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
   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.  Article 10 (commencing with Section 640) is added to
Chapter 3 of Part 1 of Division 1 of the Public Utilities Code, to
read:

      Article 10.  Utility Bill Payment


   640.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Authorized payment location" means a location approved by a
public utility for customers to pay billings from the utility.
   (b) "Licensee" means a licensee pursuant to the California
Deferred Deposit Transaction Law, as defined in Section 23001 of the
Financial Code.
   641.  (a) No public utility shall, after January 1, 2009,
authorize a licensee to be an authorized payment location.
   (b) The commission shall ensure that no public utility authorizes
a licensee to be an authorized payment location.
   (c) The commission shall require each public utility that, prior
to January 1, 2009, authorized a licensee to be an authorized payment
location to actively search for alternative authorized payment
locations, and to discontinue utilizing a licensee as an authorized
payment location when an adequate alternative has been obtained.
   (d) Each public utility that has a licensee as an authorized
payment location prior to January 1, 2009, shall report to the
commission on June 30, 2009, December 31, 2009, June 30, 2010, and
December 31, 2010, on the number of licensee that are an authorized
payment locations. The commission may require the public utility to
report information relative to efforts taken pursuant to subdivision
(c) to obtain alternative authorized payment locations. The
commission shall relieve the public utility of making further reports
pursuant to this subdivision upon the public utility having obtained
replacement authorized payment locations and discontinuing the use
of any licensee as an authorized payment location.
   (e) No public utility shall have any licensee as an authorized
payment location on or after January 1, 2011.
  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.