S380

An Act requiring public utilities to assume liability for certain work performed by third-party contractors and supplementing Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Complaint” means a concern, difficulty, or problem that a customer brings to the attention of a public utility, verbally or in writing, without the involvement of the New Jersey Board of Public Utilities.

“Customer” means a residential customer or commercial customer of the public utility.

“Public utility” means a public utility, as defined pursuant to R.S.48:2-13, that provides electric, gas, sewer, or water service to end users in the State.

“Third-party contractor” means an individual or company contracted by a public utility to install or upgrade equipment used to provide electric, gas, sewer, or water service to customers.

2. a. A public utility shall be responsible for responding to and resolving a customer’s complaint arising from non-elective work performed or services rendered by a third-party contractor.

b. Each public utility shall establish and implement an internal process for documenting the public utility’s response to and resolution of a customer’s complaint. At a minimum, the public utility shall document:

(1) the name and address of the customer who initiated the complaint and the date the customer filed the complaint;

(2) a description of the facts underlying the customer’s complaint, including the date of the alleged incident giving rise to the customer’s complaint;

(3) all communications between the public utility and the customer concerning the complaint; and

(4) the public utility’s final resolution of the customer’s complaint.

3. a. A public utility shall assume liability for any property damage caused by or arising from work performed or services rendered by a third-party contractor, unless a contract executed between the public utility and third-party contractor prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) expressly provides otherwise.

b. Nothing in this section shall be construed to prohibit a public utility from entering into an agreement with a third-party contractor regarding indemnification or contribution.

4. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to apply to complaints arising from elective work or services performed by a third-party contractor, which work or services were requested by a customer.

5. This act shall take effect immediately.

STATEMENT

Under this bill, a public utility is responsible for responding to and resolving a customer’s complaint arising from non-elective work performed or services rendered by a third-party contractor. The bill requires each public utility to establish and implement an internal process for documenting the public utility’s resolution of a customer’s complaint, as outlined in the bill.

Additionally, the bill requires a public utility to assume liability for any property damage caused by or arising from work performed or services rendered by a third-party contractor, unless a contract executed between the public utility and third-party contractor prior to the effective date of the bill expressly provides otherwise. The bill provides that the provisions of the bill are not to be construed to prohibit a public utility from entering into an agreement with a third-party contractor regarding indemnification or contribution.

Finally, the bill clarifies that the provisions of the bill do not apply to elective work performed or services rendered by a third-party contractor at the request of a customer.

Under the bill, “complaint” is defined as a concern, difficulty, or problem that a customer brings to the attention of a public utility, verbally or in writing, without the involvement of the New Jersey Board of Public Utilities. Additionally, the bill defines “third-party contractor” as an individual or company contracted by a public utility to install or upgrade equipment used to provide electric, gas, sewer, or water service to customers.