HOUSE BILL REPORT
HB 1034
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Technology, Energy & Communications
Title: An act relating to paying utility bills electronically.
Brief Description: Allowing the electronic payment of utility bills.
Sponsors: Representatives Morris, Hudgins, Wallace, Moeller, Linville, B. Sullivan, Chase and Ormsby.
Brief History:
Technology, Energy & Communications: 1/16/07, 1/30/07 [DPS].
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON TECHNOLOGY, ENERGY & COMMUNICATIONS
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives Morris, Chair; McCoy, Vice Chair; Crouse, Ranking Minority Member; Hankins, Hudgins, Hurst, Takko and VanDeWege.
Minority Report: Do not pass. Signed by 2 members: Representatives McCune, Assistant Ranking Minority Member and Eddy.
Staff: Scott Richards (786-7156).
Background:
Current law does not require or prohibit electronic payment options that electric, natural gas,
water, sewer, or telecommunications customers may use for payment of bills for services
provided. The rules of the Washington Utilities and Transportation Commission in the
Washington Administrative Code do provide authorization for telephone companies to
provide electronic bills if the bills meet certain content requirements. These rules do not
address electronic payment options.
Summary of Substitute Bill:
Electronic Bill Payment
When a city, town, county, public utility district, district, or company providing or operating
electric, natural gas, water, sewer or telecommunication services substantially upgrades or
replaces their billing system, the resulting system must be capable of accepting electronic
payment from residential customers. Additional fees or costs charged to the customer may
not exceed the actual cost of providing an electronic payment option. The terms and
conditions of service are not affected by allowing residential customers to make electronic
payment.
Substantially means a redesign or upgrade of more than 25 percent of the code or database
structures of the billing system.
Electronic payment means an internet-based method of payment that allows a customer, at
the time of payment, to access an internet web page and transmit text or data controlling the
amount of the payment, the date of the payment, and the account from which the payment
will be made.
Substitute Bill Compared to Original Bill:
Appropriation: None.
Fiscal Note: Available.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) This bill is a "Welcome to the 21st Century" bill. Many utilities are not allowing
for the electronic payment of bills. The private sector has been moving toward electronic
processing for years. However, many local government entities are not providing for
electronic payment systems when they plan for billing system upgrades and purchases. Last
session, a similar bill passed out of the House of Representatives that mandated electronic
payment systems. This bill requires that when upgrades or purchases are made, the utility
would provide electronic billing services.
The Washington Independent Telephone Association appreciates the exemption for service
providers serving less than 5,000 retail customer exemption. Each company which develops
these billing systems often accept debit or credit cards. With these billing systems, there is
no way to post-date electronic payments which could be interpreted from how the bill is
currently written.
(With concerns) There is confusion about the term electronic payment. If the intent is that a
customer goes to their own bank website account and sets up an electronic payment, then that
does not pose a problem and meets the intent of the bill. However, there is some ambiguity
in the definition of electronic payment that makes it unclear whether the utility must set up all
these options on their own web sites.
(Opposed) None.
Persons Testifying: (In support) Representative Morris, prime sponsor; and Terrence
Stapleton, Washington Independent Telephone Association.
(With concerns) Dave Arbaugh, Chelan and Snohomish Public Utility Districts.