BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 531| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 531 Author: Baca (D) Amended: 5/10/99 Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 7-0, 4/13/99 AYES: Bowen, Baca, Brulte, Hughes, Kelley, Mountjoy, Solis NOT VOTING: Alarcon, Peace, Speier, Vasconcellos SENATE JUDICIARY COMMITTEE : 8-0, 5/11/99 AYES: Burton, Escutia, Haynes, Morrow, O'Connell, Sher, Wright, Schiff NOT VOTING: Peace SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Public Utilities Commission: complaints SOURCE : GTE California DIGEST : This bill requires the Public Utilities Commission (PUC) to establish a procedure to permit filing of informal complaints via electronic means, including the Internet. The bill allows 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). ANALYSIS : Last session, SB 779 (Calderon) mandated sweeping reform of the Public Utilities Commission (PUC) CONTINUED SB 531 Page 2 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: 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: 1. 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. 2. Implement the new electronic dispute filing system by January 1, 2001. 3. Post a notice on the PUC Internet website regarding the availability of the electronic filing process. 4. 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 : According to the author, "Electronic filing is parallel to SB 531 Page 3 the Public Utilities Commission's 1999-2000 business plan for increased Internet use. This bill 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 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." This bill applies 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 provides the PUC with a staggered implementation timeline. 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. Related legislation : SB 779 (Calderon) 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 became Chapter 886 and its provisions go into effect January 1, 2001. SB 531 Page 4 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/25/99) GTE California (source) California State Council of Laborers California Alliance for Consumer Protection PUC Office of Ratepayer Advocates NC:jk 5/25/99 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****