PRINTER'S NO. 596
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
520
Session of
2015
INTRODUCED BY STURLA, THOMAS, FREEMAN, PASHINSKI, V. BROWN,
FRANKEL, McNEILL, COHEN AND McCARTER, FEBRUARY 23, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 23, 2015
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in natural gas competition, further
providing for requirements for natural gas suppliers; and,
in restructuring of electric utility industry, further
providing for requirements for electric generation suppliers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 2208 and 2809 of Title 66 of the
Pennsylvania Consolidated Statutes are amended by adding
subsections to read:
ยง 2208. Requirements for natural gas suppliers.
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(i) Prohibitions.--The following shall apply:
(1) Natural gas suppliers are prohibited from charging,
levying and imposing on their 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
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soliciting customers for natural gas supply.
(2) Natural gas suppliers are prohibited from charging,
levying and imposing on their 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.
(j) 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
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conducted and an acceptance of civil liability for actions of
their employees, subcontractors, agents and representatives
while engaged in sales and marketing activity.
ยง 2809. Requirements for electric generation suppliers.
* * *
(h) Prohibitions.--The following shall apply:
(1) Electric generation suppliers are prohibited from
charging, levying and imposing on their 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 their 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.
(i) 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
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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
their employees, subcontractors, agents and representatives
while engaged in sales and marketing activity.
Section 2. This act shall take effect in 60 days.
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