BILL ANALYSIS
SENATE JUDICIARY COMMITTEE
Adam B. Schiff, Chairman
1999-2000 Regular Session
SB 531 S
Senator Baca B
As Amended April 20, 1999
Hearing Date: May 11, 1999 5
Public Utilities Code 3
DLM:cjt 1
SUBJECT
Public Utilities Commission: Informal Complaints:
Internet
DESCRIPTION
This bill would require the Public Utilities Commission
(PUC) to establish a procedure to permit filing of informal
complaints via electronic means, including the Internet.
The bill would allow for development of industry specific
forms. The electronic filing procedure would only be used
if the dollar amount in controversy does not exceed the
jurisdictional amount of small claims court (currently
$5,000).
(This analysis reflects author's amendments to be presented
in committee.)
BACKGROUND
Last session, SB 779 (Calderon) mandated sweeping reform of
the Public Utilities Commission (PUC) administrative
processes. The bill was a compromise carved out by public
interest groups, the Judicial Council, and the PUC itself.
Included in the reforms were a number of "open meeting"
type requirements. The PUC now must post the conduct of
its affairs upon the Internet, such as proposals to change
any aspect of its procedures or its rules, and its
rulemaking and adjudicative decisions.
CHANGES TO EXISTING LAW
(more)
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Existing law requires the PUC to publish specified
information on its Internet website, including but not
limited to, decisions and resolutions, general orders, the
Commission's Rules of Practice and Procedure, and rulings
in proceedings.
This bill would require the Public Utilities Commission
(PUC) to:
Establish a procedure for filing of informal complaints
via an on-line complaint form, if the dollar amount in
controversy does not exceed the jurisdictional amount of
small claims court, (currently $5,000), by July 1, 2000.
The commission must allow for development of industry
specific complaint forms where a customer can input
information for identifying the account, type of dispute,
comments and other related information.
Implement the new electronic dispute filing system by
January 1, 2001.
Post a notice on the PUC Internet website regarding the
availability of the electronic filing process.
Review the procedure and any related rules, and the
technology involved ensuring the continued effectiveness
of the program, and reporting back to the Legislature
annually beginning January 1, 2002.
COMMENT
1. Stated need
According to the author, "Electronic filing is
parallel to the Public Utilities Commission's 1999-2000
business plan for increased Internet use. SB 531 was
introduced to help simplify and streamline the complaint
process as it relates to small businesses and residential
customers, specifically cases with a monetary value of
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not more than $5,000. Having the ability to file
complaints via the Internet will save the complainant
time and resources, as there are only two major locations
in California that the complainant may travel to in order
to submit a complaint in person."
2. Author's amendments
The author will amend the bill to apply to informal
proceedings only. Typically, according to the sponsor,
the PUC handles these types of complaints as follows: an
initial consumer complaint is communicated over the
telephone; the PUC customer service staff will follow up
with a written confirmation to the consumer and a notice
to the company being complained of relating the
allegations. The PUC acts as an intermediary between the
two parties in obtaining an informal resolution. If this
informal dispute resolution process fails, the consumer
may then use the PUC formal complaint process.
The bill will also be amended to provide the PUC with a
staggered implementation timeline, detailed above. This
is to allow the commission time to develop its procedure
through the formal rulemaking process, thereby allowing
the public an opportunity to review and comment upon the
new mechanism prior to its being put into place.
3. Legislative role in creation of PUC hearing procedures
Article XII of the State Constitution establishes the
Public Utilities Commission for the purpose of fixing
rates, establishing rules, examining records, and
prescribing a uniform system of accounting for all public
utilities subject to its jurisdiction. To this end, the
commission institutes internal procedures governing its
decision-making process. Article XII, Sec. 2 provides
that "Subject to statute and due process, the commission
may establish its own procedures ...." Thus, the
Legislature may create different procedures through
statute for the commission to conduct its hearings.
4. Issues for the Committee and the PUC to consider
As the PUC creates the new policy to allow Internet
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filing of disputes, consideration should be given to the
following issues. First, the commission must maintain
the privacy of the participants. Any transmissions
should be secured, as complaints contain the consumer's
name, address and social security number. Secondly, how
will the commission be able to identify the actual person
filing a complaint online? With technology as it is, a
person can mask the true origin of a message sent via
e-mail. How will the commission ensure parties are who
they say they are online? Will this have a res judicata
effect upon participants in the process? Also, the
commission should make an allowance for lost
communications. Occasionally messages sent into
cyberspace never reach their destination. Will this be
an issue in a statute of limitations situation? How will
the person be able to prove they sent the electronic
message? Finally, will the electronic messages be part
of the formal record for review? If so, how will they be
stored? How can one be assured that a message once
downloaded is not altered?
5. Prior related legislation: SB 779 (Calderon)
SB 779 was a comprehensive overhaul of PUC administrative
procedures. Specifically, SB 779 (1) expanded and made
permanent the opportunity for public review and comment
on major PUC decisions prior to their adoption by the
Commission; (2) required the PUC to publish its decisions
and rules on the Internet by July 1, 1999; (3) required
the Office of Administrative Law to review changes to PUC
practice rules; and, (4) bring judicial review of PUC
decisions into line with judicial review standards for
other state administrative agencies. SB 779 was
chaptered and its provisions go into effect January 1,
2001.
6. Position of the PUC
The PUC has a "support if amended" position on the bill.
The amendment requested is that the bill be amended to
create a pilot program, so that the PUC would have time
to create the new dispute resolution process. However,
in conversation with committee staff, the PUC stated
support for a delayed implementation of the program,
instead of a limited pilot. The author has agreed to a
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delayed implementation schedule, discussed in detail
above.
Support: California State Council of Laborers; California
Alliance for Consumer Protection; PUC Office of
Ratepayer Advocates
Opposition: None Known
HISTORY
Source: GTE California
Related Pending Legislation: None Known
Prior Legislation: SB 779 (Calderon) Ch. 886, Stats of
1998
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