LP&L RMS Update Clint Gardner, Chief Customer Officer
Explore the requirements and exceptions for obtaining business licenses in Lubbock, Texas, covering issues such as defining electricity as a good, license requirements for various sales channels, exemptions for town hall events, licensing for pop-up promotions, consulting with property managers in multi-family settings, and exceptions for new business activities. Dive into the details to understand when a license is needed and when exemptions may apply.
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LP&L RMS Update Clint Gardner, Chief Customer Officer April 4, 2023
City of Lubbock Peddlers License 1. Does Lubbock interpret electricity to be a good? 2. Does the license requirement apply for any or all business to business sales channels? If so: a. Would this be applicable only for cold calling to smaller businesses? Phone call, no. In person, yes. b. Would this be applicable for any prearranged appointments? No. c. Would this be applicable for specialized sales agents calling on General Contractors or construction sites promoting non-residential electricity contracts? Phone call, no. Showing up on construction site, no specific answer given but I am guessing the same as a above. TBD
3. For the proposed Town Halls, will incoming REPs be required to apply for licenses? If the Town Hall meets 8.12.033 (2), then no. 8.12.033. Exceptions. This division shall not apply to any of the following: (1983 Code, sec. 20-16(c); Ordinance 8639, sec. 1, adopted 7/26/1984) (1) Commercial travelers; (2) Sales or exhibits at fairs, rodeos, conventions, or events sponsored by one or more city civic organizations, schools, churches, the Chamber of Commerce or the City of Lubbock; (3) Charitable solicitation; (4) Newspaper delivery persons; (5) Persons offering food or beverage samples in food stores; (6) Garage sales conducted by owners of private residences. 4. Will licenses be required for any pop-ups such as tables set up promoting/enrolling at businesses (Home Depot, grocery stores, trade show, etc)? It sounds like a yes in the ordinance, along with the requirement to obtain approval from Zoning and provide written permission of the business. 5. For multi-family agents meeting with apartment communities, will licenses be required to consult with property managers (i.e. CSA promotions where brochures may be left behind)? If initial contact with property managers is done in person, yes. If appointment set up via phone or mail, then no for meeting with property manager. We are not clear on the requirement if a meeting is setup involving residents as a group. (Not sure if it falls more under the issues with question 4.)
6. Regarding exceptions: 8.12.071. New business activity. In all cases where a person seeks to establish a new business activity, which activity is required to be licensed by the terms of this division, and intends to engage in such activity for more than thirty (30) consecutive days within the city, such person shall file with the city manager or his designated representative an application for exemption from the provisions of this division. (1983 Code, sec. 20-22; Ordinance 8639, sec. 1, adopted 7/26/1984 a. May any of the above teams, including the residential door- to-door sales teams, qualify for an exception to obtaining the licenses either at all, or on the specified cadence? Section 8.12.071 covers the application process for exemption through the City Manager s Office. The qualifications to apply includes having a business operating within Lubbock for 30 days with additional requirements b. We found in an article that indicated the permit requirement may not apply to entities with an office in Lubbock, but are not seeing that contemplated in the code. i. Is it true that is a REP has an office in Lubbock, the provision does not apply to it? No, it is not, refer to 8.12.071 for exemption. ii. If so, does that inapplicability extend to any agents, contractors or vendors of the REP? Refer to 8.12.071 for exemption.
c. Section 8.12.072 reads as if it encourages the filing for exemptions for someone selling for more than 30 days. 8.12.072. Application for exemption. (a) The application for exemption provided for in section 8.12.071 of this part shall be made by the person requesting such exemption upon forms available in the office of the city manager. Such application shall provide the following information which must be furnished by each applicant: (1) The name, address and proposed occupation of the applicant; (2) The social security number and birth date of the applicant; (3) A valid state driver s license or other positive identification issued to the applicant by a governmental agency; (4) A brief description of the type of business activity the applicant intends to engage in; (5) Any other relevant information which tends to show that the applicant will be engaged in such business activity for a period in excess of thirty (30) consecutive days within the city. By way of illustration only and not by way of exclusion, the following matters may be submitted for consideration by the city manager in determining whether the exemption should be granted: (A) Whether application has been made to have the applicant s permanent phone number listed in the Lubbock telephone directory; (B) Whether the applicant has policies of liability insurance which cover the applicant s activities within the City of Lubbock for a period of time in excess of thirty (30) consecutive days from the date of this application; (C) Whether the applicant has placed advertising with any of the following media: (i) Radio; (ii) TV; (iii) Newspaper; (iv) Other media; :1 (1983 Code, sec. 20-23; Ordinance 8639, sec. 1, adopted 7/26/1984) which advertising evidences an intent that the applicant will engage in business covered by this division for a period in excess of thirty (30) consecutive days from the date of their application; (D) Whether the applicant has policies of property insurance which policies insure the goods or wares offered to the public by the applicant within the City of Lubbock for a period of time in excess of thirty (30) consecutive days from the date of this application. (b) Each person making application for exemption from the provisions of this division shall swear or affirm that the information given on the application for exemption is true and correct. i. Is that accurate? Refer to 8.12.071 qualifications ii. Can a business request an exemption for each of the people that would be selling on its behalf (including employees, vendors, contractors, etc.)? It seems to read as if it would be for the company as a whole. Correct? d. Whether through an exception, or other process, can one obtain a permit that is applicable for 90 Days (or another period longer than 30 days)? (Whether that affects the fee or not.) If so, how? Prohibits permits being issued for longer than 30 days.
7. Is there any ability to gain permits at entity level? (For example, an entity could get a permit, and provide Lubbock with a list of all people that would be in the market selling under that permit. ) If so, could that cover, agents, vendors, consultants, etc.? No, permits are only issued to individuals and cannot be transferred. Is it possible for permit holders to use a company badge with a picture id rather than getting a picture id through the permit process? Badges are issued through Citibus currently. I did not see anything that would prevent us from authorizing the use of a different badge method, but wouldn t we need to be consistent to everyone, including peddlers not with an electric provider. Correct? Is it possible for Lubbock to accept an entity s background checks/drug tests for those that would be doing the selling, rather than individuals going through additional checks and tests? We do not require drug tests. We have applicants go to Identigo to be fingerprinted for a State run criminal history that is sent directly from the State to our agency for review. Wouldn t we need to be consistent to everyone, including peddlers not with an electric provider? I have concerns about the background check not being completed by fingerprints and that we would not know the process of the their check. 8. 9.
10. If there is not existing flexibility in the permit process to address some of the questions above, is it possible that since the door- to-door sales for electricity are tied to the city s initiative to allow customer choice in the market, that the city and REPs can work together to improve the process for this situation? We have made adjustments to the initially submitting of the application, which extends to all applicants, I would think that any additional modifications to the enforcement of the ordinance would need to be at the City Council level. For more information on the City of Lubbock Peddlers Permit, please call the Records Department at 806-775-2803 or 806-775-2809 or email lpdrecords@mylubbock.us.
Future Workshops and Civic Center Meeting Mid-July LP&L plans to host a Retail Electric Provider workshop. This will provide both Retailers and LP&L personnel to meet and discuss each other s processes and procedures and an exchange of information before we go into the time of signing up customers with retailers. When the timeline occurs when Retailers are able to signup customers, LP&L will be hosting several days of opportunities of our customers to meet with Retailers face-to-face at the Lubbock Civic Center. This will allow our customers to interact with each of you and ask the questions they need the answers to. This will be an important meeting for our customers, especially those not technically skilled with computers.
Market Operations Team Complete As of this week, the Market Operations Team will be complete with all team members hired. The team is comprised of Jamie Wood as Manager of Market Operations; 4 Retail Electric Providers Account Managers and 4 Market Specialist. This team has been actively participating in the Project since the beginning and is well versed in the procedures of our retail competition processes. This team will be actively participating in and with REP questions and processes. Please contact the team at marketops@mail.ci.Lubbock.tx.us. Toll Free number - 866.949.5862
Timeline for Chapter 5 and Rates, Discretionary Charges We have the following set up: April 10thEUB Special Meeting to approve and recommend City Council adoption of the FY2023- 24 System Delivery-Discretionary Rate schedule. April 11thCity Council - set on the agenda for a resolution to approve and adopt the FY2023-24 System Delivery-Discretionary Rate schedule. April 18thEUB regular Board meeting review and approve and recommend City Council adoption of the FY2023-24 Tariff. April 25thCity Council workshop to present and discuss the FY2023-24 Tariff. April 25thCity Council - set on the agenda for a resolution to approve and adopt the FY2023-24 Tariff.
Legislative Update HB 2663/2664 were passed favorably out of House State Affairs committee on Monday, March 27. They are waiting to be heard on the House floor. SB 1170/1171 are identical and they are waiting in Senate Business & Commerce Committee and will be combined with the House bills once they are voted out of the House.
