Brief⁽¹⁾

Sub. for H.B. 2322 pertains to: (1) billing procedures for visually impaired or blind customers; (2) conditions governing the maintenance of certain existing railroad crossings; and (3) the repeal of K.S.A. 66-1213, which pertains to public utility loans or credit pledged to persons or companies having an affiliated interest in the company.

Billing Procedures. Sub. for H.B. 2322 would require any public or private utility, upon a visually impaired or blind customer's request, to provide the customer's bill in one of three formats specified in the bill and selected through an agreement between the customer and the utility. The customer requesting this service would not incur any additional costs for receipt of the service. The utility would not be required to comply until January 1, 2000.

Responsibility of Railroads. Upon a farm owner's request, railroads are currently required to maintain crossings that run through the owner's farm. However, that requirement does not apply to crossings constructed prior to 1911, the effective date of the enabling legislation. H.B. 2290 would apply that requirement to any existing farm railroad crossing regardless of its date of construction. Moreover, the bill would explicitly prohibit railroads from conditioning maintenance of any existing crossing upon the owner's payment of rental fees or purchase of liability insurance.

Repeal of K.S.A. 66-1213. This statute, recommended in this bill for repeal, requires a utility to apply to the Kansas Corporation Commission for approval before the utility may loan money or pledge its credit to its affiliate. Upon receipt of the application, the Commission has up to ten days to conduct an investigation, if deemed necessary, and either approve the application or schedule a hearing. The Commission must approve the application unless it finds the loan or pledge will substantially impair the utility's financial condition or its ability to maintain sufficient and efficient service.

The bill would take effect upon publication in the Kansas Register.

Background

H.B. 2322 was requested by Michael Byington, Director of Envision Governmental Affairs Office. According to Mr. Byington, many major utilities, but not all utilities, are providing this service. He observed that similar legislation was enacted in Missouri. The Americans with Disabilities Act (ADA) requires alternate formats for utility bills to accommodate the needs of disabled individuals. However, Mr. Byington expressed concern that, in the absence of supporting state law, ADA would be enforced through litigation. With respect to a potential need for Braille conversions, Mr. Byington informed the House Committee on Utilities that, based on a projection by Metrolina Association (a company specializing in Braille conversion services), only 94 Braille statements will be generated for a utility consumer population of one million.

The following conferees supported the introduced version of the bill or its intent, in some cases with proposed amendments: Whitney Damron, on behalf of Empire District Electric Company; Rob Hodges, President, Kansas Telecommunications Industry Association; Kim Gulley, Assistant General Counsel, League of Kansas Municipalities; and Eva Kurtz, Kansas Association for the Blind and Visually Impaired, Inc. Caroline Williams, Senior Director of Customer Service, Western Resources, described the services currently provided by Western Resources to respond to the informational needs of the visually impaired or blind.

The House Committee initially amended the bill to delete the requirement that information related to billing be furnished in another format. Another amendment required, as an option, that large print be 24-point type (also required in Missouri's law). Other amendments were clarifying in nature.

The amended bill was re-referred to the House Committee on Utilities and further amended by the Committee, resulting in a substitute bill. Amendments of the substitute bill version would: delete the text file on computer disk as a format option; provide that the customer could select the billing format; and specify that the act would take effect on and after January 1, 2000. (The earlier versions of the bill would have taken effect on July 1, 1999.)

The Senate Committee on Utilities amended the bill to: remove cable television service providers from the bill; replace the reference to telecommunications service with telephone service (telephony encompasses voice transmission only); and condition selection of a billing format on an agreement between the customer and utility (the House version of the bill conditions such selection exclusively upon the customer's choice of format).

The Senate Committee of the Whole added amendments to K.S.A. 66-301, pertaining to the responsibility of railroads to maintain railroad crossings. This amendment originated from a complaint filed with the Attorney General's office alleging that a railroad company had threatened to close a railroad crossing on a farm owner's property unless the owner agreed to sign a contract requiring payment of an annual license fee of $225 and a contract preparation and administration fee of $200. In addition, the contract requires the property owner to purchase commercial general liability insurance with coverage of, at a minimum, $3 million or substitute homeowners' insurance.

In a written response to the complaint, the Attorney General's office noted that the Kansas Supreme Court has consistently held that K.S.A. 66-301 applies only to tracks constructed after the statute was enacted in 1911. However, the track running through the complainant's farm was constructed in 1888. The Attorney General's office concluded that the railroad therefore would not be obligated to maintain the crossing.

In addition to amending K.S.A. 66-301, the Senate Committee of the Whole amended Sub. for H.B. 2322 to repeal K.S.A. 66-1213. This amendment reflects the House version of H.B. 2290. The introduced version of H.B. 2290 would have repealed K.S.A. 66-1214, in addition to K.S.A. 66-1213. K.S.A. 66-1214 explicitly authorizes the Commission to prohibit dividend payments that could impair a utility's financial health and operating condition.

A spokesperson for Utilicorp supported the introduced version of the bill. Kansas Corporation Commission staff supported repealing K.S.A. 66-1213, but not K.S.A. 66-1214. The Consumer Counsel for the Citizens' Utility Ratepayer Board opposed repealing both statutes. The House Committee on Utilities amended the bill, as recommended by the Commission, to repeal K.S.A. 66-1213 but not K.S.A. 66-1214.

Proponents for deleting K.S.A. 66-1213 cited the onerous burden placed on utilities and the Commission to comply with approval procedures. The Commission staff suggested it would be less cumbersome and equally effective to repeal the statute and examine any costs generated by pledges of credit in rate proceedings. Rate proceedings may allow costs associated with the utility's transaction to be passed on to consumers. However, if the Commission approves such a transaction under K.S.A. 66-1213, it is very unlikely that associated costs could be passed on to consumers.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html