BILL ANALYSIS
AB 746
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 746 (Blakeslee)
As Amended August 23, 2005
Majority vote
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|ASSEMBLY: |65-4 |(April 28, |SENATE: |23-14|(August 25, |
| | |2005) | | |2005) |
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Original Committee Reference: U. & C.
SUMMARY : Permits an electrical, gas, or water corporation to
charge a reasonable transaction fee when customers pay their
utility bills by credit card and debit card. In addition, this
bill requires the California Public Utilities Commission (PUC)
to determine how any associated costs or potential savings
resulting from these payment methods will be passed on to
customers.
The Senate amendments include gas and water corporations to be
permitted to charge a transaction fee to customers who pay by
credit card and debit card.
EXISTING LAW permits electrical corporations to accept payment
by credit or debit card; however, the Civil Code prohibits any
retailer or service provider from imposing a surcharge on a
cardholder who elects to use a credit card in lieu of payment by
cash, check, or similar means.
AS PASSED BY THE ASSEMBLY , this bill permitted an electrical
corporation to charge a reasonable transaction fee when
customers pay their utility bills by credit card and debit card.
In addition, it required PUC to determine the reasonableness of
any transaction fees, ensure that costs are not shifted to
customers who do not choose these payment options, and require
that any costs are offset by any savings to the electrical
corporations.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, the purpose of this bill is
to enable customers to pay their bills in a more convenient
method, and permit regulated utilities to recover fees imposed
by banks and credit card companies when customers use a credit
AB 746
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card or debit card to pay their bills. Current law permits
utility corporations to receive payment by credit or debit card,
however, they are prohibited from passing the fee charged by the
bank onto the customer through their rates. Utility
corporations' rates are regulated and cannot impose a service
charge for the credit card payment without affecting rates to
all ratepayers, regardless of payment method.
This bill is intended to compensate utilities for their costs
associated with the credit and debit card payments only.
According to the author, this bill is intended to be a
convenience for customers, not a revenue source for utilities.
Analysis Prepared by : Gina Mandy / U. & C. / (916) 319-2083
FN: 0012338