AN ACT Relating to a citizens' utility board; adding a new chapter to Title 80 RCW; adding a new section to chapter 41.06 RCW; adding a new section to chapter 41.40 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that utility consumers need an effective advocate to assure that public policies affecting the quality and price of utility services reflect their needs and interests, that utility consumers have the right to form an organization which will represent their interests before legislative, administrative, and judicial bodies, and that utility consumers need a convenient manner of contributing to the funding of such an organization so that it can advocate forcefully and vigorously on their behalf concerning all matters of public policy affecting their health, welfare, and economic well-being.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context requires otherwise.

(1) "Board" means the citizens' utility board of governors.

(2) "Consumer" or "utility consumer" means any natural person eighteen years of age or older who is a resident of this state.

(3) "District" means an electoral district for members of the citizens' utility board of governors.

(4) "Member" means a member of the citizens' utility board.

(5) "Utility" means any utility regulated by the utilities and transportation commission that furnishes electric, telephone, gas, or heating service.

NEW SECTION. Sec. 3. (1) The citizens' utility board is created as an independent nonprofit public corporation and is authorized to carry out the provisions of this chapter.

(2) The citizens' utility board has perpetual succession and it may sue and be sued, and may in its own name purchase and dispose of any interest in real and personal property, and shall have such other powers as are granted to corporations. No part of its net earnings shall inure to the benefit of any individual or member of the citizens' utility board.

(3) The citizens' utility board has all rights and powers necessary to represent and protect the interests of utility consumers, including but not limited to the following powers:

(a) To conduct, fund, or contract for research, studies, plans, investigations, demonstration projects, and surveys;

(b) To represent the interests of utility consumers before legislative, administrative, and judicial bodies;

(d) To adopt and modify bylaws governing the activities of the citizens' utility board.

NEW SECTION. Sec. 4. The citizens' utility board of governors shall manage the affairs of the citizens' utility board. The board may delegate its authority to an executive committee composed of not fewer than five members of the board.

NEW SECTION. Sec. 5. (1) Within ninety days after the effective date of this act, an interim board of directors shall be appointed by the governor, subject to confirmation by the senate. One director shall be appointed by the governor; two directors each shall be appointed by the governor from each list of not more than five names per director position submitted individually by the president of the senate and the speaker of the house of representatives; one director each shall be appointed from each list of not more than five names submitted individually by the majority leader of the senate and the majority leader of the house and by the minority leader of the senate and the minority leader of the house.

(2) No person who is a director, employee, or agent of any public utility is eligible to be a director appointed under this section. While on the board, no interim director appointed under this section may hold elective public office, be a candidate for any elective public office, or be a state public official. No interim director may be a candidate in the first election under section 6 of this act. No person who owns or controls, either singly or in combination with any immediate family member, utility stocks or bonds of a total value in excess of three thousand dollars is eligible to serve as an appointed member of the citizens' utility board of governors.

(3) Within one hundred twenty days after the citizens' utility board has obtained five thousand members, with a minimum of one hundred members in each district, an election shall be held pursuant to section 6 of this act for selection of the citizens' utility board of governors.

(4) The board of directors appointed under subsection (1) of this section shall prescribe the procedure for election conducted by mail ballot for the first citizens' utility board of governors, and shall establish bylaws regarding campaign contributions and expenditures for election to the citizens' utility board of governors. In no case may such contributions or expenditures exceed one thousand dollars and in no case can a candidate accept more than two hundred fifty dollars in campaign contributions from any one contributor. In addition, no candidate may accept campaign contributions from a utility.

NEW SECTION. Sec. 6. (1) The citizens' utility board of governors shall be comprised of three persons elected from each congressional district in the state by a majority of the votes cast by members residing in that district. The election shall be conducted by mail ballot in such manner as the citizens' utility board of governors may prescribe.

(2) The term of office of a member of the citizens' utility board of governors is four years. No person may serve more than two consecutive terms on the board.

(3) Each candidate and each member of the citizens' utility board of governors must be a member of the citizens' utility board and must be a resident of the district from which the candidate seeks to be or is elected.

(4) At least forty-five days before an election, each candidate shall file with the citizens' utility board of governors a statement of financial interests, which shall contain the information in such form as the citizens' utility board of governors shall determine. Each candidate shall maintain a complete record of contributions received and expenditures made with regard to an election campaign. Each candidate shall make the records available for public inspection at such reasonable times as the citizens' utility board of governors considers appropriate.

(5) No member who is employed by a utility is eligible for appointment or election to the citizens' utility board of governors, and no member of the citizens' utility board of governors who obtains employment by a utility may maintain a position on the citizens' utility board of governors. While on the board, no director elected under this section may hold elective public office, be a candidate for any elective public office, or be a state public official. No person who owns or controls, either singly or in combination with any immediate family member, utility stocks or bonds of a total value in excess of three thousand dollars is eligible to serve as an elected member of the citizens' utility board of governors.

(6) The citizens' utility board of governors may disqualify any candidate or member of the citizens' utility board of governors for any violation of this chapter or of the bylaws of the citizens' utility board.

(7) Upon petition signed by twenty percent of the members in a district for the recall of a member of the citizens' utility board of governors elected from the district, the citizens' utility board of governors shall mail ballots to each member in the district, submitting the question whether the member of the board shall be recalled. If a majority of the members voting at the election vote in favor of the recall, then the member of the board shall be recalled. Elections and recall proceedings shall be conducted in a manner as the board may prescribe. Ballots for all election and recall proceedings shall be counted at a regular meeting of the board.

(8) The remaining members of the citizens' utility board of governors have the power to fill vacancies on the board.

NEW SECTION. Sec. 7. (1) Notwithstanding the term of office specified by section 6 of this act for members of the citizens' utility board of governors, of the members first elected from each district:

(a) One shall serve for a four-year term;

(b) One shall serve for a three-year term; and

(2) For the purpose of determining the length of a term of a member pursuant to subsection (1) of this section, the length of the term of each member from a district shall be based upon the number of votes received by the member, with the member who receives the most votes in each district serving for the longest term and the member who receives the fewest votes serving for the shortest term.

NEW SECTION. Sec. 8. All meetings of the board shall be open to the public as provided in chapter 42.30 RCW.

NEW SECTION. Sec. 9. (1) All consumers are eligible for membership in the citizens' utility board. A consumer shall become a member of the citizens' utility board upon contribution of at least five dollars but not more than one hundred dollars per year to the citizens' utility board. Each member shall be entitled to cast one vote for the election of the board. The board shall establish a method whereby economically disadvantaged individuals may become members of the citizens' utility board without full payment of the yearly contribution.

(2) Each year, the citizens' utility board shall cause to be prepared, by a certified public accountant authorized to do business in this state, an audit of its financial affairs. The audit is a public record subject to inspection in the manner provided in chapter 42.17 RCW.

NEW SECTION. Sec. 10. (1) Upon request by the citizens' utility board pursuant to this section, each utility shall include in billings to a utility consumer materials prepared and furnished by the citizens' utility board, not exceeding in folded size the dimensions of the envelope customarily used by such utility to send billings to its customers.

(2) The citizens' utility board shall not intentionally make any false material statement in any material submitted to a utility for inclusion with a billing. If the utility believes that the citizens' utility board has intentionally made false material statements in an enclosure, it may file a complaint with the utilities and transportation commission within five days of receipt. The commission must review the complaint within ten days. If the commission determines that the citizens' utility board has intentionally made false material statements, the commission shall give the citizens' utility board of governors written notification that specifies any false material statements made and the reasons why the commission determines the statements to be false.

(3) No utility may be required to enclose citizens' utility board material with a billing more than six times in any calendar year.

(4) The citizens' utility board shall notify a utility of its intention to include any material in any specified periodic billing or billings not fewer than thirty calendar days prior to the mailing of the periodic billings and shall supply the utility with the material not fewer than twenty calendar days prior to the mailing of the periodic billings.

(5) All material submitted by the citizens' utility board for inclusion in a utility billing must include the return address of the citizens' utility board. A utility is not required to deliver or forward to the citizens' utility board material intended for the citizens' utility board mistakenly sent to the utility. However, a utility shall retain such materials for a period of sixty days from the date of receipt. The utility shall notify the citizens' utility board that such materials have been received and make these materials available to the citizens' utility board on demand.

NEW SECTION. Sec. 11. (1) The citizens' utility board shall not be required to pay any postage charges for materials submitted by the citizens' utility board for inclusion in a utility billing if the materials weigh four-tenths of one ounce avoirdupois or less. If the materials submitted weigh over four-tenths of one ounce avoirdupois, then the citizens' utility board shall reimburse the utility for a portion of the postage costs which is equal to that portion of the citizens' utility board material over four-tenths of one ounce avoirdupois in proportion to the total weight of the billing. In addition to postage costs, the citizens' utility board shall reimburse such other reasonable costs, as determined by the utilities and transportation commission, incurred by a utility in complying with section 10 of this act.

(2) Reimbursement of a utility by the citizens' utility board shall be made within sixty days of the date the utility submits to the citizens' utility board an itemized statement of the costs incurred by the utility. The reimbursement shall not exceed the fair market value for the services provided by the utility.

NEW SECTION. Sec. 12. (1) No utility, nor any of its employees, officers, members of the board of directors, agents, contractors, or assignees, may in any manner interfere with, delay, alter, or otherwise discourage the distribution of any material or statement authorized by this chapter for inclusion in periodic utility billings, nor in any manner interfere with, hamper, hinder, or otherwise infringe upon a utility consumer's right to contribute to the citizens' utility board, nor in any manner hamper, hinder, harass, penalize, or retaliate against any utility consumer because of the consumer's contribution to, or participation in, activities of the citizens' utility board.

(2) No utility may change its mailing, accounting, or billing procedures if the change will hamper, hinder, or otherwise interfere with the ability of the citizens' utility board to distribute materials or statements authorized by this chapter.

NEW SECTION. Sec. 13. The citizens' utility board may submit to the appropriate agency any complaint it receives regarding a utility. Public agencies shall periodically inform the citizens' utility board of any action taken on complaints received pursuant to this section.

NEW SECTION. Sec. 14. (1) Whenever the board determines that any agency proceeding may affect the interests of utility consumers, the citizens' utility board may intervene as of right as an interested party or otherwise participate in the proceeding.

(2) The citizens' utility board has standing to obtain judicial or administrative review of any agency action and may intervene as of right as a party or otherwise participate in any proceeding which involves the review or enforcement of any action by an agency if the board determines that the action may affect the interests of utility consumers.

NEW SECTION. Sec. 15. (1) Any utility and any of its employees, officers, members of the board of directors, agents, contractors, or assignees which does, or causes or permits to be done, any matter, act, or other thing prohibited by this chapter, or omits to do any act, matter, or other thing required to be done by this chapter, is liable for any injury to the citizens' utility board and to any other person in the amount of damages sustained in consequence of such violation, together with reasonable attorneys' fees, to be fixed by the court in every case of recovery. The attorneys' fees shall be taxed and collected as part of the costs in the case.

(2) The citizens' utility board may obtain equitable relief, without bond, to enjoin any violation of this chapter.

(3) Any recovery or enforcement obtained under this section shall be in addition to any other recovery or enforcement under this section or under any statute or common law. Any recovery under this section shall be in addition to recovery by the state of the penalty or fine prescribed for such violation by this chapter. The rights and remedies provided by this chapter are in addition to all other rights and remedies available under law.

NEW SECTION. Sec. 16. Wilful violation of section 10 (1) or (5) or section 12 of this act is a misdemeanor.

NEW SECTION. Sec. 17. A new section is added to chapter 41.06 RCW to read as follows:

This chapter does not apply to employees of the citizens' utility board.

NEW SECTION. Sec. 18. A new section is added to chapter 41.40 RCW to read as follows:

This chapter does not apply to employees of the citizens' utility board.

NEW SECTION. Sec. 19. Sections 1 through 16 of this act shall constitute a new chapter in Title 80 RCW.

NEW SECTION. Sec. 20. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.