SB 500 (Torlakson) Utilities and Cable Television: service and repair: times.

As amended 1/7/02

Recommendation: Support

Summary: This bill:

(1) Requires retailers, including utilities and cable television companies, to provide a consumer with a 4 hour period of time in which delivery of merchandise, or service or repair of merchandise, is commenced at the time the retailer receives the call from the consumer.


(2) Allows the consumer to bring an action in small claims court against a retailer for lost wages, expenses actually incurred, or other actual damages not exceeding five hundred dollars ($500) if the merchandise is not delivered, or service or repair are not commenced, within the specified four-hour period.

Analysis: Existing law requires that utilities and cable television companies inform subscribers of their right to service connection or repair within a 4-hour period by offering the 4-hour period when the subscriber calls for service connection or repair, or by notifying their subscribers by mail three times a year of this service. Existing law further requires that when a subscriber contracts with utilities and cable television companies for a service connection or repair at a later date, and the parties agree that the presence of the subscriber is required, the utilities and cable television companies shall specify, prior to the date of service connection or repair, the time the 4-hour period for the service connection or repair begins, if the subscriber so requests.

The bill would delete the option of notification of subscribers by mail thereby requiring utilities and cable television companies to inform subscribers of their right to service connection or repair within a 4-hour period, under the circumstances described above, when the subscriber

calls for service connection or repair. This bill would also require utilities and cable television companies to specify the 4-hour period for the service connection or repair under the circumstance described above, regardless of whether the subscriber requests it.

Comments:

This bill has relatively little impact on the telecommunications or other divisions of the CPUC, but based solely on its impact on ratepayers, we support its implementation and signing into law in its current form.

Contact:

Bill Julian, Director bj2@cpuc.ca.gov

Maria Bondonno bon@cpuc.ca.gov

CPUC- OGA (916) 327-3277

Date: March 8, 2002

Departments That May Be Affected
New / Increased Fee			Governor's Appointment				Legislative Appointment
State Mandate		Urgency Clause			Regulations Required				Legislative Report
Board Position				Agency Secretary Position				Governor Office Use Only ________ Position Approved ________ Position Disapproved ________ Position Noted ________ No Position
S O SA OUA N NP NA	Defer to:			S O SA OUA N NP NA		Defer to:
Director Date				Agency Secretary Date				By Date

BILL LANGUAGE

BILL NUMBER: SB 500 AMENDED

BILL TEXT

AMENDED IN SENATE JANUARY 7, 2002

AMENDED IN SENATE MARCH 26, 2001

INTRODUCED BY Senators Torlakson, Machado, and Perata

(Coauthor: Assembly Member Aroner)

FEBRUARY 22, 2001

An act to add Section 743.2 to the Public Utilities Code,

relating to public amend Section 1722 of the Civil

Code, relating to utilities.

LEGISLATIVE COUNSEL'S DIGEST

SB 500, as amended, Torlakson. Public utilities: rates:

involuntary electric service interruptions Utilities

and cable television: service and repair: times .

Existing law requires that utilities and cable television

companies inform subscribers of their right to service connection or

repair within a 4-hour period, as specified, by offering the 4-hour

period when the subscriber calls for service connection or repair, or

by notifying their subscribers by mail three times a year of this

service. Existing law further requires that when a subscriber

contracts with utilities and cable television companies for a service

connection or repair at a later date, and the parties agree that the

presence of the subscriber is required, the utilities and cable

television companies shall specify, prior to the date of service

connection or repair, the time the 4-hour period for the service

connection or repair begins, if the subscriber so requests.

The bill would delete the option of notification of subscribers by

mail thereby requiring utilities and cable television companies to

inform subscribers of their right to service connection or repair

within a 4-hour period, under the circumstances described above, when

the subscriber calls for service connection or repair. This bill

would also require utilities and cable television companies to

specify the 4-hour period for the service connection or repair under

the circumstance described above, regardless of whether the

subscriber requests it.

The Public Utilities Act requires the creation and operation of an

Independent System Operator to ensure efficient use and reliable

operation of the state's electricity transmission grid consistent

with achievement of specified planning and operating reserve

criteria. A violation of the act is a crime.

This bill would require that a consumer of electricity located

within close proximity, as defined, of an electric power generation

facility receive a discount of 20% on electricity rates and be exempt

from involuntary electric service interruptions during any state of

emergency declared by the Independent Service Operator, if the

facility (1) was licensed by the State Energy Resources Conservation

and Development Commission on or after January 1, 1999, and (2) is

capable of producing 50 megawatts or more.

Since a violation of the bill's prohibition would be a crime under

existing law, this bill would impose a state-mandated local program

by changing the definition of a 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 no . State-mandated local program:

yes no .

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 743.2 is added to the Public Utilities Code, to

read:

743.2. A consumer of electricity located within close proximity

of an electric power generation facility shall receive a discount of

20 percent on electricity rates and shall be exempt from involuntary

electric service interruptions during any state of emergency declared

by the Independent Service Operator, if the facility meets the

criteria set forth in subdivisions (a) and (b). For the purposes of

this section, "close proximity" means a circle with a circumference

of 20 miles with the facility at its center.

(a) The facility was licensed by the State Energy Resources

Conservation and Development Commission on or after January 1, 1999.

(b) The facility is capable of producing 50 megawatts or more.

SEC. 2. No reimbursement is required by this act pursuant to

Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

SECTION 1. Section 1722 of the Civil Code is amended to read:

1722. (a) (1) Whenever a contract is entered into between a

consumer and a retailer with 25 or more employees relating to the

sale of merchandise which is to be delivered by the retailer or the

retailer's agent to the consumer at a later date, and the parties

have agreed that the presence of the consumer is required at the time

of delivery, the retailer shall specify either at the time of the

sale or at a later date prior to the delivery date, a four-hour time

period within which any delivery shall be made. Whenever a contract

is entered into between a consumer and a retailer with 25 or more

employees for service or repair of merchandise, whether or not the

merchandise was sold by the retailer to the consumer, and the parties

have agreed that the presence of the consumer is required at the

time of service or repair, upon receipt of a request for service or

repair under the contract, the retailer shall specify, prior to the

date of service or repair, a four-hour period within which the

service or repair shall be commenced. Once a delivery, service, or

repair time is established, the retailer or the retailer's agent

shall deliver the merchandise to the consumer, or commence service or

repair of the merchandise, within that four-hour period.

(2) If the merchandise is not delivered, or service or repair are

not commenced, within the specified four-hour period, except for

delays caused by unforeseen or unavoidable occurrences beyond the

control of the retailer, the consumer may bring an action in small

claims court against the retailer for lost wages, expenses actually

incurred, or other actual damages not exceeding a total of five

hundred dollars ($500).

(3) No action shall be considered valid if the consumer was not

present at the time, within the specified period, when the retailer

or the retailer's agent attempted to make the delivery, service, or

repairs or made a diligent attempt to notify the consumer of its

inability to do so because of unforeseen or unavoidable occurrences

beyond its control.

(4) In any small claims action, logs and other business records

maintained by the retailer or the retailer's agent in the ordinary

course of business shall be prima facie evidence of the time period

specified for the delivery, service, or repairs and of the time when

the merchandise was delivered, or of a diligent attempt by the

retailer or the retailer's agent to notify the consumer of delay

caused by unforeseen or unavoidable occurrences.

(5) It shall be a defense to the action if a diligent attempt was

made to notify the consumer of the delay caused by unforeseen or

unavoidable occurrences beyond the control of the retailer or the

retailer's agent, or the retailer or the retailer's agent was unable

to notify the consumer of the delay because of the consumer's absence

or unavailability during the four-hour period, and, in either

instance, the retailer or the retailer's agent makes the delivery,

service, or repairs within two hours of a newly agreed upon time or,

if the consumer unreasonably declines to arrange a new time for the

delivery, service, or repairs.

(b) (1) Cable television companies shall inform their subscribers

of their right to service connection or repair within a four-hour

period, if the presence of the subscriber is required, by offering

the four-hour period at the time the subscriber calls for service

connection or repair , or by notifying their subscribers by

mail three times a year of this service . Whenever a

subscriber contracts with a cable television company for a service

connection or repair which is to take place at a later date, and the

parties have agreed that the presence of the subscriber is required,

the cable company shall specify, prior to the date of service

connection or repair, the time for the commencement of the four-hour

period for the service connection or repair if the

subscriber requests .

(2) If the service connection or repair is not commenced within

the specified four-hour period, except for delays caused by

unforeseen or unavoidable occurrences beyond the control of the

company, the subscriber may bring an action in small claims court

against the company for lost wages, expenses actually incurred or

other actual damages not exceeding a total of five hundred dollars

($500).

(3) No action shall be considered valid if the subscriber was not

present at the time, within the specified period, that the company

attempted to make the service connection or repair.

(4) In any small claims action, logs and other business records

maintained by the company or its agents in the ordinary course of

business shall be prima facie evidence of the time period specified

for the commencement of the service connection or repair and the time

that the company or its agents attempted to make the service

connection or repair, or of a diligent attempt by the company to

notify the subscriber of a delay caused by unforeseen or unavoidable

occurrences.

(5) It shall be a defense to the action if a diligent attempt was

made to notify the subscriber of delay caused by unforeseen or

unavoidable occurrences beyond the control of the company or its

agents, or the company or its agents were unable to notify the

subscriber because of the subscriber's absence or unavailability

during the four-hour period, and, in either instance, the cable

television company commenced service or repairs within a newly agreed

upon two-hour period.

(6) No action shall be considered valid against a cable television

company pursuant to this section when the franchise or any local

ordinance provides the subscriber with a remedy for a delay in

commencement of a service connection or repair and the subscriber has

elected to pursue that remedy. If a subscriber elects to pursue his

or her remedies against a cable television company under this

section, the franchising or state or local licensing authority shall

be barred from imposing any fine, penalty, or other sanction against

the company, arising out of the same incident.

(c) (1) Utilities shall inform their subscribers of their right to

service connection or repair within a four-hour period, if the

presence of the subscriber is required, by offering the four-hour

period at the time the subscriber calls for service connection or

repair , or by notifying the subscriber by mail three times

a year of this service . Whenever a subscriber contracts

with the utility for a service connection or repair, and the parties

have agreed that the presence of the subscriber is required, the

utility shall specify, prior to the date of service connection or

repair, the time for the commencement of the four-hour period for the

service connection or repair if the subscriber requests

.

(2) If the service connection or repair is not commenced within

the specified four-hour period, except for delays caused by

unforeseen or unavoidable circumstances beyond the control of the

utility, the subscriber may bring an action in small claims court

against the utility for lost wages, expenses actually incurred, or

other actual damages not exceeding a total of five hundred dollars

($500).

(3) No action shall be considered valid if the subscriber was not

present at the time, within the specified period, that the utility

attempted to make the service connection or repair.

(4) In any small claims action, logs and other business records

maintained by the utility or its agents in the ordinary course of

business shall be prima facie evidence of the time period specified

for the commencement of the service connection or repair and of the

time that the utility attempted to make the service connection or

repair, or of a diligent attempt by a utility to notify the

subscriber of delay caused by unforeseen or unavoidable occurrences.

(5) It shall be a defense to the action if a diligent attempt was

made by the utility to notify the subscriber of delay caused by

unforeseen or unavoidable occurrences beyond the control of the

utility, and the utility commenced service within a newly agreed upon

two-hour period.

(d) Any provision of a delivery, service, or repair contract in

which the consumer or subscriber agrees to modify or waive any of the

rights afforded by this section shall be void as contrary to public

policy.