THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY STURLA, BISHOP, CALTAGIRONE, COHEN, D. COSTA, FABRIZIO, GEORGE, HORNAMAN, JOSEPHS, KAVULICH, MYERS, READSHAW AND STABACK, APRIL 5, 2011

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 5, 2011  

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, further providing for requirements for

natural gas suppliers and for requirements for electric

generation suppliers.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections of 2208 and 2809 of Title 66 of the

Pennsylvania Consolidated Statutes are amended by adding

subsections to read:

§ 2208.  Requirements for natural gas suppliers.

* * *

(h)  Prohibitions.--The following shall apply:

(1)  Natural gas suppliers are prohibited from charging,

levying and imposing on its affiliated subsidiaries,

employees, contractors, subcontractors, third-party marketers

or third-party sales agents a cost, expense or fee for the

purpose of engaging in direct or indirect marketing activity

on behalf of the natural gas suppliers for the purpose of

soliciting customers for natural gas supply.

(2)  Natural gas suppliers are prohibited from charging,

levying and imposing on its affiliated subsidiaries,

employees, contractors, subcontractors, third-party marketers

or third-party sales agents a cost, expense or fee for the

purchase of marketing materials, distributorships, binders of

sales and training materials and the creation of a marketing

Internet website.

(3)  Natural gas suppliers shall not compensate

distributors, employees, contractors, subcontractors, agents

or third parties to recruit other distributors, employees,

contractors, subcontractors, agents or third parties.

(i)  Customer protections.--The following shall apply:

(1)  Natural gas suppliers and their affiliated

subsidiaries engaged in door-to-door or multilevel marketing

activity shall post security of $1,000,000.

(2)  Natural gas suppliers and their affiliated

subsidiaries shall conduct criminal background investigations

of every employee, contractor, subcontractor, third-party

marketer or third-party sales agent engaged in the sale or

promotion of their energy supply service, including a check

of the Megan's Law registry, prior to the individual's

conducting door-to-door marketing or other sales activities.

(3)  Natural gas suppliers and their affiliated

subsidiaries, employees, contractors, subcontractors, third-

party marketers, or third-party sales agents engaged in

multilevel marketing and door-to-door marketing and sales

activities shall file annually with the commission a

certificate of liability. The certificate of liability shall

include a description of sales and marketing activity being

conducted and an acceptance of civil liability for actions of

its employees, subcontractors, agents and representatives

while engaged in sales and marketing activity.

§ 2809.  Requirements for electric generation suppliers.

* * *

(g)  Prohibitions.--The following shall apply:

(1)  Electric generation suppliers are prohibited from

charging, levying and imposing on its affiliated

subsidiaries, employees, contractors, subcontractors, third-

party marketers or third-party sales agents a cost, expense

or fee for the purpose of engaging in direct or indirect

marketing activity on behalf of the electric generation

suppliers for the purpose of soliciting customers for natural

gas supply.

(2)  Electric generation suppliers are prohibited from

charging, levying and imposing on its affiliated

subsidiaries, employees, contractors, subcontractors, third-

party marketers or third-party sales agents a cost, expense

or fee for the purchase of marketing materials,

distributorships, binders of sales and training materials and

the creation of a marketing Internet website.

(3)  Electric generation suppliers shall not compensate

distributors, employees, contractors, subcontractors, agents

or third parties to recruit other distributors, employees,

contractors, subcontractors, agents or third parties.

(h)  Customer protections.--The following shall apply:

(1)  Electric generation suppliers and their affiliated

subsidiaries engaged in door-to-door or multilevel marketing

activity shall post security of $1,000,000.

(2)  Electric generation suppliers and their affiliated

subsidiaries shall conduct criminal background investigations

of every employee, contractor, subcontractor, third-party

marketer or third-party sales agent engaged in the sale or

promotion of their energy supply service, including a check

of the Megan's Law registry, prior to the individual's

conducting door-to-door marketing or other sales activities.

(3)  Electric generation suppliers and their affiliated

subsidiaries, employees, contractors, subcontractors, third-

party marketers or third-party sales agents engaged in

multilevel marketing and door-to-door marketing and sales

activities shall file annually with the commission a

certificate of liability. The certificate of liability shall

include a description of sales and marketing activity being

conducted and an acceptance of civil liability for actions of

its employees, subcontractors, agents and representatives

while engaged in sales and marketing activity.

Section 2.  This act shall take effect in 60 days.