BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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|SENATE RULES COMMITTEE            |                   SB 531|
|Office of Senate Floor Analyses   |                         |
|1020 N Street, Suite 524          |                         |
|(916) 445-6614         Fax: (916) |                         |
|327-4478                          |                         |
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                       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





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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  







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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.







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  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

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