BILL NUMBER: SB 120	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 1, 2009
	AMENDED IN ASSEMBLY  JUNE 16, 2009

INTRODUCED BY   Senator Lowenthal
   (Principal coauthor: Assembly Member Torrico)

                        FEBRUARY 2, 2009

   An act to add Section 1942.2 to the Civil Code, and to amend
Sections  777.1, 10009.1, 12822.1, and 16481.1 of, and to
repeal Sections 777, 10009, 12822, and 16481 of,   777,
777.1, 10009, 10009.1, 12822, 12822.1, 16481, and 16481.1 of 
the Public Utilities Code, relating to residential tenancies.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 120, as amended, Lowenthal. Residential  tenancies.
  : utility service. 
   (1) Existing law governs the obligations of tenants and landlords
under a lease or tenancy.
   This bill would authorize a tenant or occupant who has made a
payment to a public utility  or publicly owned utility  to
deduct the amount of the payment from the rent when due, as
specified.
   (2) The California Constitution establishes the Public Utilities
Commission  to fix rates and establish rules governing
utilities. The California Constitution also provides that private
corporations and persons who operate specified utilities are subject
to control by the Legislature. Existing statutory law regulates
public utilities. Among other things, a public utility must 
 (PUC), with jurisdiction over all public utilities, including
electrical, gas, heat, and water corporations, as defined. Existing
law authorizes the PUC to fix the rates and charges for every public
utility, and requires that those rates and charges be just and
reasonable. The existing Public Utilities Act requires every public
utility to  furnish and maintain adequate, efficient, just, and
reasonable service  , instrumentalities, equipment, and
facilities  as  are  necessary to promote 
public health and safety, as specified   the safety,
health, comfort, and convenience of its patrons, employees, and the
  public. Existing law provides for the furnishing of
utility services, including the furnishing of electricity, gas, heat,
and water, by publicly owned utilities, including municipal
corporations, municipal utility districts, and public utility
districts. Publicly owned utilities are not subject to the
jurisdiction and control of the PUC. A municipal corporations is
subject to control by its governing bodies, while a municipal utility
district and a public utility district is subject to control by its
board of directors  .
   Existing law provides that  whenever   if
 an electrical, gas, heat, or water corporation furnishes
individually metered residential service to residential occupants in
a multiunit residential structure, mobilehome park, or permanent
residential structures in a labor camp, as defined,  if
  and  the owner, manager, or operator is listed by
the corporation as the customer of record, the corporation is
required to make every good faith effort to inform the residential
occupants, by means of a specified notice, when the account is in
arrears, that service will be terminated at least 10 days prior to
termination. Existing law also provides for  a procedure
  procedures  by which those residential occupants
may become customers of the corporation  , one option being that
if one or more of the   residential occupants are willing
and able to assume responsibility for the entire account to the
satisfaction of the corporation, the electrical, gas, heat, or water
corporation is required to make service available to the residential
occupants  . Similar provisions exist for a  public
utility or a district   publicly owned utility 
that furnishes individually metered residential light, heat, water,
or power to residential occupants in a multiunit residential
structure, mobilehome park, or permanent residential structures in a
labor camp if the owner, manager, or operator is listed by the public
utility or district as the customer of record.
   This bill would  delete those provisions  
provide that if an electrical, gas, heat, or water corporation
furnishes individually metered residential service to residential
occupants in a single-family dwelling, multiunit residential
structure, mobilehome park, or permanent residential structure in a
labor camp, and the owner, manager, or operator is the customer of
record, the corp   oration is required to make every good
faith effort to inform   the residential occupants, by means
of a specified written notice, when the account is in arrears, that
service will be terminated at least 10 days prior to termination. The
bill would require that the notice be in English, Spanish, Chinese,
Tagalog, Vietnamese, and Korean. The bill would revise the
above-described option by which residential occupants may become
customers of the corporation, to provide that if one or more of the
residential occupants are willing and able to assume responsibility
for the subsequent charges to the account to the satisfaction of the
corporation, the electrical, gas, heat, or water corporation is
required to make service available to the residential occupants. The
bill would enact similar provisions for a publicly owned utility that
furnishes individually metered residential light, heat, water, or
power to a single-family residence or to residential occupants in a
multiunit residential structure, mobilehome park, or permanent
residential structure in a labor camp  .
   (3) Existing law provides that  whenever   if
 an electrical, gas, heat, or water corporation furnishes
residential service to residential occupants through a master meter
in a multiunit residential structure, mobilehome park, or permanent
residential  structures   structure  in a
labor camp, as defined,  if   and  the
owner, manager, or operator is listed by the corporation as the
customer of record, the corporation is required to make every good
faith effort to inform the residential occupants, by means of a
written notice posted on the door of each residential unit at least
15 days prior to termination, when the account is in arrears, that
service will be terminated on a date specified in the notice.
 Certain violations of this provision are misdemeanors.
 Existing law requires that the notice be in English
and, to the extent practical, in any other language that the
corporation determines is the primary language spoken by a
significant number of the residential occupants.  Similar
provisions exist for a  public utility or district 
 publicly owned utility  that furnishes light, heat, water,
or power to residential occupants through a master meter in a
multiunit residential structure, mobilehome park, or permanent
residential  structures   structure  in a
labor camp, as defined, if the owner, manager, or operator is listed
by the public utility or district as the customer of record.
   This bill would  instead require that whenever an
electrical, gas, heat, or water corporation furnishes residential
service to residential occupants in a residential structure,
mobilehome park, or permanent residential structures in a labor camp,
as defined, if the owner, manager, or operator is listed by the
corporation as the customer of record, the corporation would be
required to post a notice on the door of each residential unit and
mail a copy of the notice to all affected service addresses known to
the utility or available through reasonable and practical methods, as
specified, at least 10 days prior to termination, when the account
is in arrears, that service will be terminated on a date specified in
the notice. Because certain violations of this provision would be
misdemeanors, the bill would create new crimes, thereby imposing a
state-mandated local program   require that the notice
be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean
 . 
   The bill would similarly provide that whenever a public utility or
district furnishes light, heat, water, or power, as specified, to
residential occupants in a residential structure, mobilehome park, or
permanent residential structures in a labor camp, as defined, if the
owner, manager, or operator is listed by the public utility or
district as the customer of record, the public utility or district is
required to post a notice on the door of each residential unit and
mail a copy of the notice in the same manner, as specified. 

   (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   (4) Existing law makes any public utility that violates the Public
Utilities Act guilty of a crime.  
   Because certain of the provisions of this bill would be a part of
the act, the bill would impose a state-mandated local program by
expanding the definition of an existing crime.  
   (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1942.2 is added to the Civil Code, to read:
   1942.2.  A tenant who has made a payment to a utility pursuant to
Section  777.1, 10009.1, 12822.1,   777, 777.1,
  10009, 10009.1, 12822, 12822.1, 16481,  or 16481.1 of
the Public Utilities Code may deduct the payment from the rent as
provided in that section.
   SEC. 2.    Section 777 of the   Public
Utilities Code   is amended to read: 
   777.  (a)  Whenever   If  an electrical,
gas, heat, or water corporation furnishes individually metered
residential service to residential occupants  in 
 of a single-family dwelling,  a multiunit residential
structure, mobilehome park, or permanent residential 
structures   structure  in a labor camp, as defined
in Section 17008 of the Health and Safety Code,  where
  and  the owner, manager, or operator  of the
dwelling, structure, or park  is  listed by the
corporation as  the customer of record, the corporation
shall make every good faith effort to inform the residential
occupants, by means of  a   written 
notice, when the account is in arrears, that service will be
terminated at least 10 days prior to termination. The  written
 notice shall further inform the residential occupants that they
have the right to become customers, to whom the service will then be
billed, without being required to pay any amount which may be due on
the delinquent account.  The notice shall be in English and in
the languages listed in Section 1632 of the Civil Code. 
   (b) The corporation is not required to make service available to
the residential occupants unless each residential occupant agrees to
the terms and conditions of service and meets the requirements of law
and the corporation's rules and tariffs. However, if one or more of
the residential occupants are willing and able to assume
responsibility for the  entire   subsequent
charges to the  account to the satisfaction of the corporation,
or if there is a physical means, legally available to the
corporation, of selectively terminating service to those residential
occupants who have not met the requirements of the corporation's
rules and tariffs, the corporation shall make service available to
those residential occupants who have met those requirements.
   (c)  Where   If  prior service for a
period of time is a condition for establishing credit with the
corporation, residence and proof of prompt payment of rent or other
credit obligation acceptable to the corporation for that period of
time is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
corporation pursuant to this section whose periodic payments, such as
rental payments, include charges for residential electrical, gas,
heat, or water service, where those charges are not separately
stated, may deduct from the periodic payment each payment period all
reasonable charges paid to the corporation for those services during
the preceding payment period.
   SEC. 3.   Section 777.1 of the   Public
Utilities Code   is amended to read: 
   777.1.  (a)  Whenever   If  an
electrical, gas, heat, or water corporation furnishes residential
service to residential occupants through a master meter in a
multiunit residential structure, mobilehome park, or permanent
residential  structures   structure  in a
labor camp, as defined in Section 17008 of the Health and Safety
Code,  where   and  the owner, manager, or
operator  of the structure or park  is listed by the
corporation as the customer of record, the corporation shall make
every good faith effort to inform the residential occupants, by means
of a written notice posted on the door of each residential unit at
least 15 days prior to termination, when the account is in arrears,
that service will be terminated on a date specified in the notice. If
it is not reasonable or practicable to post the notice on the door
of each residential unit, the corporation shall post two copies of
the notice in each accessible common area and at each point of access
to the structure or structures. The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will then be billed, without being required to
pay any amount which may be due on the delinquent account. The notice
also shall specify, in plain language, what the residential
occupants are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
corporation who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and  , to the extent
practical, in any other language that the corporation determines is
the primary language spoken by a significant number of the
residential occupants   the languages listed in Section
1632 of the Civil Code  .
   (b) The corporation is not required to make service available to
the residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service and meets the requirements of law and the
corporation's rules and tariffs. However, if one or more of the
residential occupants or the representative of the residential
occupants are willing and able to assume responsibility for
subsequent charges to the account to the satisfaction of the
corporation, or if there is a physical means, legally available to
the corporation, of selectively terminating service to those
residential occupants who have not met the requirements of the
corporation's rules and tariffs or for whom the representative of the
residential occupants is not responsible, the corporation shall make
service available to those residential occupants who have met those
requirements or on whose behalf those requirements have been met.
   (c)  Where   If  prior service for a
period of time or other demonstration of credit worthiness is a
condition for establishing credit with the corporation, residence and
proof of prompt payment of rent or other credit obligation during
that period of time acceptable to the corporation is a satisfactory
equivalent.
   (d) Any residential occupant who becomes a customer of the
corporation pursuant to this section whose periodic payments, such as
rental payments, include charges for residential electrical, gas,
heat, or water service, where those charges are not separately
stated, may deduct from the periodic payment each payment period all
reasonable charges paid to the corporation for those services during
the preceding payment period.
   (e)  Whenever   If  a corporation
furnishes residential service subject to subdivision (a), the
corporation  may   shall  not terminate
that service in any of the following situations:
   (1) During the pendency of an investigation by the corporation of
a customer dispute or complaint.
   (2)  When   If    the customer
has been granted an extension of the period for payment of a bill.
   (3) For an indebtedness owed by the customer to any other person
or corporation or  when   if  the
obligation represented by the delinquent account or other
indebtedness was incurred with a person or corporation other than the
electrical, gas, heat, or water corporation demanding payment
therefor.
   (4)  When   If  a delinquent account
relates to another property owned, managed, or operated by the
customer.
   (5)  When   If  a public health or
building officer certifies that termination would result in a
significant threat to the health or safety of the residential
occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the residential occupant or the
representative of the residential occupants may commence an action
for the recovery of all of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the corporation, the
corporation shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants made a good faith effort to have the service continued
without interruption.
   (i) The commission shall adopt rules and orders necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the corporation has made every reasonable effort to continue service
to the residential occupants. The rules and orders shall include, but
are not limited to, reasonable penalties for a violation of this
section, guidelines for assistance to residents in the enforcement of
this section, and requirements for the notice prescribed by
subdivision (a), including, but not limited to, clear wording, large
and boldface type, and comprehensive instructions to ensure full
notice to the resident.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
   () For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.
   SEC. 4.    Section 10009 of the   Public
Utilities Code   is amended to read: 
   10009.  (a)  Whenever   If  a public
utility furnishes individually metered residential light, heat,
water, or power to residential occupants in  a single-family
dwelling,  a multiunit residential structure, mobilehome park,
or  a  permanent residential  structures 
 structure  in a labor camp, as defined in Section 17008 of
the Health and Safety Code,  where  if  the
owner, manager, or operator  of the dwelling, structure, or park
 is  listed by the public utility as  the
customer of record, the public utility shall make every good faith
effort to inform the residential occupants, by means of  a
  written  notice, when the account is in arrears,
that service will be terminated in 10 days. The  written 
notice shall further inform the residential occupants that they have
the right to become customers of the public utility without being
required to pay the amount due on the delinquent account. The
notice shall be in English and in the languages listed in Section
1632 of the Civil Code. 
   (b) The public utility is not required to make service available
to the residential occupants unless each residential occupant agrees
to the terms and conditions of service, and meets the requirements of
law and the public utility's rules. However, if one or more of the
residential occupants are willing and able to assume responsibility
for the  entire   subsequent charges to the
 account to the satisfaction of the public utility, or if there
is a physical means, legally available to the public utility, of
selectively terminating service to those residential occupants who
have not met the requirements of the public utility's rules, the
public utility shall make service available to the residential
occupants who have met those requirements.
   (c)  Where   If  prior service for a
period of time is a condition for establishing credit with the public
utility, residence and proof of prompt payment of rent or other
obligation acceptable to the public utility for that period of time
is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the public utility for those services during the preceding
payment period.
   SEC. 5.    Section 10009.1 of the   Public
Utilities Code   is amended to read: 
   10009.1.  (a)  Whenever   If  a public
utility furnishes light, heat, water, or power to residential
occupants through a master meter in a multiunit residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined in Section 17008 of the Health and Safety
Code,  where   and  the owner, manager, or
operator  of the structure or park  is listed by the public
utility as the customer of record, the public utility shall make
every good faith effort to inform the residential occupants, by means
of a written notice posted on the door of each residential unit at
least 15 days prior to termination, when the account is in arrears,
that service will be terminated on a date specified in the notice. If
it is not reasonable or practicable to post the notice on the door
of each residential unit, the public utility shall post two copies of
the notice in each accessible common area and at each point of
access to the structure or structures. The notice shall further
inform the residential occupants that they have the right to become
utility customers, to whom the service will then be billed, without
being required to pay the amount due on the delinquent account. The
notice also shall specify, in plain language, what the residential
occupants are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
public utility who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and  , to the extent
practical, in any other language that the public utility determines
is the primary language spoken by a significant number of the
residential occupants   the languages listed in Section
1632 of the Civil Code  .
   (b) The public utility is not required to make service available
to the residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
public utility's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the public utility, or if there is
a physical means, legally available to the public utility, of
selectively terminating service to those residential occupants who
have not met the requirements of the public utility's rules or for
whom the representative of the residential occupants is not
responsible, the public utility shall make service available to the
residential occupants who have met those requirements or on whose
behalf those requirements have been met.
   (c)  Where   If  prior service for a
period of time or other demonstration of credit worthiness is a
condition for establishing credit with the public utility, residence
and proof of prompt payment of rent or other credit obligation during
that period of time acceptable to the public utility is a
satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the public utility for those services during the preceding
payment period.
   (e)  Whenever   If  a public utility
furnishes residential service subject to subdivision (a), the public
utility may not terminate that service in any of the following
situations:
   (1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
   (2)  When   If  the customer has been
granted an extension of the period for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the public utility.
   (4)  When   If a delinquent account
relates to another property owned, managed, or operated by the
customer.
   (5)  When   If  a public health or
building officer certifies that termination would result in a
significant threat to the health or safety of the residential
occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the public utility, the
public utility shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants make a good faith effort to have the service continued
without interruption.
   (i) The public utility shall adopt rules and regulations necessary
to implement this section and shall liberally construe this section
to accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the public utility has made every reasonable effort to continue
service to the residential occupants. The rules and regulations shall
include, but are not limited to, guidelines for assistance to actual
users in the enforcement of this section and requirements for the
notice prescribed by subdivision (a), including, but not limited to,
clear wording, large and bold face type, and comprehensive
instructions to ensure full notice to the actual user.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to  to  January
1, 1989, to adopt an ordinance protecting a residential occupant from
the involuntary termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
   () For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.
   SEC. 6.    Section 12822 of the   Public
Utilities Code   is amended to read: 
   12822.  (a)  Whenever   If  a district
furnishes individually metered residential light, heat, water, or
power to residential occupants in a  single-family dwelling,
 multiunit residential structure, mobilehome park, or permanent
residential  structures   structure  in a
labor camp, as defined in Section 17008 of the Health and Safety
Code,  where   and  the owner, manager, or
operator  of the dwelling, structure, or park  is 
listed by the district as  the customer of record of the
service, the district shall make every good faith effort to inform
the residential occupants, by means of  a 
written  notice, when the account is in arrears, that service
will be terminated in 10 days. The  written  notice shall
further inform the residential occupants that they have the right to
become customers of the district without being required to pay the
amount due on the delinquent account.  The notice shall be in
English and in the languages listed in Section 1632 of the Civil
Code. 
   (b) The district is not required to make service available to the
residential occupants unless each residential occupant agrees to the
terms and conditions of service, and meets the requirements of the
district's rules. However, if one or more of the residential
occupants are willing and able to assume responsibility for the
 entire   subsequent charges to the 
account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules, the district shall make
service available to the residential occupants who have met those
requirements.
   (c)  Where   If  prior service for a
period of time is a condition for establishing credit with the
district, residence and proof of prompt payment of rent or other
credit obligation acceptable to the district for that period of time
is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
   SEC. 7.    Section 12822.1 of the   Public
Utilities Code   is amended to read: 
   12822.1.  (a)  Whenever   If  a district
furnishes residential light, heat, water, or power to residential
occupants through a master meter in a multiunit residential 
structure   structure  , mobilehome park, or
permanent residential structures in a labor camp, as defined in
Section 17008 of the Health and Safety Code,  where 
 and  the owner, manager, or operator  of the structure
or park  is listed by the district as the customer of record of
the service, the district shall make every good faith effort to
inform the residential occupants, by means of a written notice posted
on the door                                              of each
residential unit at least 15 days prior to termination, when the
account is in arrears, that service will be terminated on a date
specified in the notice. If it is not reasonable or practicable to
post the notice on the door of each residential unit, the district
shall post two copies of the notice in each accessible common area
and at each point of access to the structure or structures. The
notice shall further inform the residential occupants that they have
the right to become customers, to whom the service will then be
billed, of the district without being required to pay the amount due
on the delinquent account. The notice also shall specify, in plain
language, what the residential occupants are required to do in order
to prevent the termination or reestablish service; the estimated
monthly cost of service; the title, address, and telephone number of
a representative of the district who can assist the residential
occupants in continuing service; and the address and telephone number
of a legal services project, as defined in Section 6213 of the
Business and Professions Code, which has been recommended by the
local county bar association. The notice shall be in English and
 , to the extent practical, in any other language that the
district determines is the primary language spoken by a significant
number of the residential occupants   in the languages
listed in Section 1632 of the Civil Code  .
   (b) The district is not required to make service available to the
residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirement of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
   (c)  Where   If  prior service for a
period of time, or other demonstration of credit worthiness is a
condition for establishing credit with the district, residence and
proof of prompt payment of rent or other credit obligation during
that period of time acceptable to the district is a satisfactory
equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
   (e)  Whenever   If  a district furnishes
residential service subject to subdivision (a), the district may not
terminate that service in any of the following situations:
   (1) During the pendency of an investigation by the district of a
customer dispute or complaint.
   (2)  When   If  the customer has been
granted an extension of the period for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
   (4)  When   If  a delinquent account
relates to another property owned, managed, or operated by the
customer.
   (5)  When   If  a public health or
building officer certifies that termination would result in a
significant threat to the health or safety of the residential
occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
   (i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and bold face type, and comprehensive instructions to
ensure full notice to the actual user.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association.
   () For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.
   SEC. 8.    Section 16481 of the   Public
Utilities Code   is amended to read: 
   16481.  (a)  Whenever   If  a district
furnishes individually metered residential light, heat, water, or
power to residential occupants in a  single-family dwelling,
 multiunit residential structure, mobilehome park, or permanent
residential  structures   structure  in a
labor camp, as defined in Section 17008 of the Health and Safety
Code,  where   and  the owner, manager, or
operator is  listed by the district as  the customer
of record, the district shall make every good faith effort to inform
the residential occupants, by means of  a  
written  notice, when the account is in arrears, that service
will be terminated in 10 days. The  written  notice shall
further inform the residential occupants that they have the right to
become customers of the district without being required to pay the
amount due on the delinquent account.  The notice shall be in
English and in the languages listed in Section 1632 of the Civil
Code. 
   (b) The district is not required to make service available to the
residential occupants unless each residential occupant agrees to the
terms and conditions of service, and meets the requirements of the
district's rules. However, if one or more of the residential
occupants are willing and able to assume responsibility for the
 entire   subsequent charges to the 
account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules, the district shall make
service available to the residential occupants who have met those
requirements.
   (c)  Where  If  prior service for a
period of time is a condition for establishing credit with the
district, residence and proof of prompt payment of rent or other
credit obligation acceptable to the district for that period of time
is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
   SEC. 9.    Section 16481.1 of the   Public
Utilities Code   is amended to read: 
   16481.1.  (a)  Whenever   If  a district
furnishes residential light, heat, water, or power to residential
occupants through a master meter in a multiunit residential
structure, mobilehome park, or permanent residential 
structures   structure  in a labor camp, as defined
in Section 17008 of the Health and Safety Code,  where
  and  the owner, manager, or operator  of the
structure or park  is listed by the district as the customer of
record, the district shall make every good faith effort to inform the
residential occupants, by means of a written notice posted on the
door of each residential unit at least 15 days prior to termination,
when the account is in arrears, that service will be terminated on a
date specified in the notice. If it is not reasonable or practicable
to post the notice on the door of each residential unit, the district
shall post two copies of the notice in each common area and at each
point of access to the structure or structures. The notice shall
further inform the residential occupants that they have the right to
become customers, to whom the service will be billed, of the district
without being required to pay the amount due on the delinquent
account. The notice also shall specify, in plain language, what the
residential occupants are required to do in order to prevent the
termination or reestablish service; the estimated monthly cost of
service; the title, address, and telephone number of a representative
of the district who can assist the residential occupants in
continuing service; and the address and telephone number of a legal
services project, as defined in Section 6213 of the Business and
Professions Code, which has been recommended by the local county bar
association. The notice shall be in English and  , to the
extent practical, in any other language that the district determines
is the primary language spoken by a significant number of the
residential occupants   in the languages listed in
Section 1632 of the Civil Code  .
   (b) The district is not required to make service available to the
residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
   (c)  Where   If  prior service for a
period of time or other demonstration of credit worthiness is a
condition for establishing credit with the district, residence and
proof of prompt payment of rent or other credit obligation during
that period of time acceptable to the district is a satisfactory
equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the district for those services during the preceding payment
period.
   (e)  Whenever  If  a district furnishes
residential service subject to subdivision (a), the district may not
terminate that service in any of the following situations:
   (1) During the pendency of an investigation by the district of a
customer dispute or complaint.
   (2)  When   If  the customer has been
granted an extension of the period for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
   (4)  When   If  a delinquent account
relates to another property owned, managed, or operated by the
customer.
   (5)  When   If  a public health or
building officer certifies that termination would result in a
significant threat to the health or safety of the residential
occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
   (i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and bold face type, and comprehensive instructions to
ensure full notice to the actual users.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of public utility service or permitting
the recovery of costs associated with the formation, maintenance,
and termination of a tenant's association.
   () For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.
   SEC. 10.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SEC. 2.    Section 777 of the Public Utilities
Code is repealed.  
  SEC. 3.    Section 777.1 of the Public Utilities
Code is amended to read:
   777.1.  (a) Whenever an electrical, gas, heat, or water
corporation furnishes residential service to residential occupants in
a residential structure, mobilehome park, or permanent residential
structures in a labor camp, as defined in Section 17008 of the Health
and Safety Code, if the owner, manager, or operator is listed by the
corporation as the customer of record, the corporation shall do the
following:
   (1) Post a notice on the door of each residential unit at least 10
days prior to termination, when the account is in arrears, that
service will be terminated on a date specified in the notice. If it
is not reasonable or practicable to post the notice on the door of
each residential unit, the corporation shall post two copies of the
notice in each accessible common area and at each point of access to
the structure or structures. The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will then be billed, without being required to
pay any amount which may be due on the delinquent account. The notice
also shall specify, in plain language, what the residential
occupants are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
corporation who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and in the languages listed in
Section 1632 of the Civil Code.
   (2) Mail a copy of the notice described in paragraph (1) to all
affected service addresses known to the corporation, or available
through reasonable and practical methods, at least 10 days prior to
termination. The notice shall be addressed to "Any Person Renting
Property At:" followed by the address of the dwelling unit. The
outside of the envelope shall state, in English and in the languages
listed in Section 1632 of the Civil Code, in at least 12-point type:
"Utility service to this address may be cut off soon." Notice need
not be mailed if the service address is the same as the billing
address.
   (b) The corporation is not required to make service available to
the residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service and meets the requirements of law and the
corporation's rules and tariffs. However, if one or more of the
residential occupants or the representative of the residential
occupants are willing and able to assume responsibility for
subsequent charges to the account to the satisfaction of the
corporation, or if there is a physical means, legally available to
the corporation, of selectively terminating service to those
residential occupants who have not met the requirements of the
corporation's rules and tariffs or for whom the representative of the
residential occupants is not responsible, the corporation shall make
service available to those residential occupants who have met those
requirements or on whose behalf those requirements have been met.
   (c) If prior service for a period of time or other demonstration
of credit worthiness is a condition for establishing credit with the
corporation, residence and proof of prompt payment of rent or other
credit obligation during that period of time acceptable to the
corporation is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
corporation pursuant to this section whose periodic payments, such as
rental payments, include charges for residential electrical, gas,
heat, or water service, if those charges are not separately stated,
may deduct from the periodic payment each payment period all
reasonable charges paid to the corporation for those services during
the preceding payment period.
   (e) Whenever a corporation furnishes residential service subject
to subdivision (a), the corporation may not terminate that service in
any of the following situations:
   (1) During the pendency of an investigation by the corporation of
a customer dispute or complaint.
   (2) When the customer has been granted an extension of the period
for payment of a bill.
   (3) For an indebtedness owed by the customer to any other person
or corporation or when the obligation represented by the delinquent
account or other indebtedness was incurred with a person or
corporation other than the electrical, gas, heat, or water
corporation demanding payment therefor.
   (4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
   (5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the residential occupant or the
representative of the residential occupants may commence an action
for the recovery of all of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
              (3) Reasonable attorney's fees of the residential
occupants, the representative of the residential occupants, or each
of them, incurred in the enforcement of this section, including, but
not limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the corporation, the
corporation shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants made a good faith effort to have the service continued
without interruption.
   (i) The commission shall adopt rules and orders necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the corporation has made every reasonable effort to continue service
to the residential occupants. The rules and orders shall include, but
are not limited to, reasonable penalties for a violation of this
section, guidelines for assistance to residents in the enforcement of
this section, and requirements for the notice prescribed by
subdivision (a), including, but not limited to, clear wording, large
and boldface type, and comprehensive instructions to ensure full
notice to the resident.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association. 

  SEC. 4.    Section 10009 of the Public Utilities
Code is repealed.  
  SEC. 5.    Section 10009.1 of the Public Utilities
Code is amended to read:
   10009.1.  (a) Whenever a public utility furnishes light, heat,
water, or power to residential occupants in a residential structure,
mobilehome park, or permanent residential structures in a labor camp,
as defined in Section 17008 of the Health and Safety Code, if the
owner, manager, or operator is listed by the public utility as the
customer of record, the public utility shall do the following:
   (1) Post a notice on the door of each residential unit at least 10
days prior to termination, when the account is in arrears, that
service will be terminated on a date specified in the notice. If it
is not reasonable or practicable to post the notice on the door of
each residential unit, the public utility shall post two copies of
the notice in each accessible common area and at each point of access
to the structure or structures. The notice shall further inform the
residential occupants that they have the right to become utility
customers, to whom the service will then be billed, without being
required to pay the amount due on the delinquent account. The notice
also shall specify, in plain language, what the residential occupants
are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
public utility who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and in the languages listed in
Section 1632 of the Civil Code.
   (2) Mail a copy of the notice described in paragraph (1) to all
affected service addresses known to the corporation, or available
through reasonable and practical methods, at least 10 days prior to
termination. The notice shall be addressed to "Any Person Renting
Property At:" followed by the address of the dwelling unit. The
outside of the envelope shall state, in English and in the languages
listed in Section 1632 of the Civil Code, in at least 12-point type:
"Utility service to this address may be cut off soon." Notice need
not be mailed if the service address is the same as the billing
address.
   (b) The public utility is not required to make service available
to the residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
public utility's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the public utility, or if there is
a physical means, legally available to the public utility, of
selectively terminating service to those residential occupants who
have not met the requirements of the public utility's rules or for
whom the representative of the residential occupants is not
responsible, the public utility shall make service available to the
residential occupants who have met those requirements or on whose
behalf those requirements have been met.
   (c) If prior service for a period of time or other demonstration
of credit worthiness is a condition for establishing credit with the
public utility, residence and proof of prompt payment of rent or
other credit obligation during that period of time acceptable to the
public utility is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, if these charges are not separately stated, may deduct from
the periodic payment each payment period all reasonable charges paid
to the public utility for those services during the preceding
payment period.
   (e) Whenever a public utility furnishes residential service
subject to subdivision (a), the public utility may not terminate that
service in any of the following situations:
   (1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
   (2) When the customer has been granted an extension of the period
for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the public utility.
   (4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
   (5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the public utility, the
public utility shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants make a good faith effort to have the service continued
without interruption.
   (i) The public utility shall adopt rules and regulations necessary
to implement this section and shall liberally construe this section
to accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the public utility has made every reasonable effort to continue
service to the residential occupants. The rules and regulations shall
include, but are not limited to, guidelines for assistance to actual
users in the enforcement of this section and requirements for the
notice prescribed by subdivision (a), including, but not limited to,
clear wording, large and boldface type, and comprehensive
instructions to ensure full notice to the actual user.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association. 

  SEC. 6.    Section 12822 of the Public Utilities
Code is repealed.  
  SEC. 7.    Section 12822.1 of the Public Utilities
Code is amended to read:
   12822.1.  (a) Whenever a district furnishes residential light,
heat, water, or power to residential occupants in a residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, if the owner, manager, or operator is listed by the district as
the customer of record of the service, the district shall do the
following:
   (1) Post a notice on the door of each residential unit at least 10
days prior to termination, when the account is in arrears, that
service will be terminated on a date specified in the notice. If it
is not reasonable or practicable to post the notice on the door of
each residential unit, the district shall post two copies of the
notice in each accessible common area and at each point of access to
the structure or structures. The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will then be billed, of the district without
being required to pay the amount due on the delinquent account. The
notice also shall specify, in plain language, what the residential
occupants are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
district who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been recommended by the local county bar association.
The notice shall be in English and in the languages listed in
Section 1632 of the Civil Code.
   (2) Mail a copy of the notice described in paragraph (1) to all
affected service addresses known to the corporation, or available
through reasonable and practical methods, at least 10 days prior to
termination. The notice shall be addressed to "Any Person Renting
Property At:" followed by the address of the dwelling unit. The
outside of the envelope shall state, in English and in the languages
listed in Section 1632 of the Civil Code, in at least 12-point type:
"Utility service to this address may be cut off soon." Notice need
not be mailed if the service address is the same as the billing
address.
   (b) The district is not required to make service available to the
residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirement of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
   (c) If prior service for a period of time, or other demonstration
of credit worthiness is a condition for establishing credit with the
district, residence and proof of prompt payment of rent or other
credit obligation during that period of time acceptable to the
district is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, if these charges are not separately stated, may deduct from
the periodic payment each payment period all reasonable charges paid
to the district for those services during the preceding payment
period.
   (e) Whenever a district furnishes residential service subject to
subdivision (a), the district may not terminate that service in any
of the following situations:
   (1) During the pendency of an investigation by the district of a
customer dispute or complaint.
   (2) When the customer has been granted an extension of the period
for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
   (4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
   (5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
   (i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and boldface type, and comprehensive instructions to
ensure full notice to the actual user.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenant's association. 

  SEC. 8.    Section 16481 of the Public Utilities
Code is repealed.  
  SEC. 9.    Section 16481.1 of the Public Utilities
Code is amended to read:
   16481.1.  (a) Whenever a district furnishes residential light,
heat, water, or power to residential occupants in a residential
structure, mobilehome park, or permanent residential structures in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, if the owner, manager, or operator is listed by the district as
the customer of record, the district shall do the following:
   (1) Post a notice on the door of each residential unit at least 10
days prior to termination, when the account is in arrears, that
service will be terminated on a date specified in the notice. If it
is not reasonable or practicable to post the notice on the door of
each residential unit, the district shall post two copies of the
notice in each common area and at each point of access to the
structure or structures. The notice shall further inform the
residential occupants that they have the right to become customers,
to whom the service will be billed, of the district without being
required to pay the amount due on the delinquent account. The notice
also shall specify, in plain language, what the residential occupants
are required to do in order to prevent the termination or
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
district who can assist the residential occupants in continuing
service; and the address and telephone number of a legal services
project, as defined in Section 6213 of the Business and Professions
Code, which has been
recommended by the local county bar association. The notice shall be
in English and in the languages listed in Section 1632 of the Civil
Code.
   (2) Mail a copy of the notice described in paragraph (1) to all
affected service addresses known to the corporation, or available
through reasonable and practical methods, at least 10 days prior to
termination. The notice shall be addressed to "Any Person Renting
Property At:" followed by the address of the dwelling unit. The
outside of the envelope shall state, in English and in the languages
listed in Section 1632 of the Civil Code, in at least 12-point type:
"Utility service to this address may be cut off soon." Notice need
not be mailed if the service address is the same as the billing
address.
   (b) The district is not required to make service available to the
residential occupants unless a residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
district's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the district, or if there is a
physical means, legally available to the district, of selectively
terminating service to those residential occupants who have not met
the requirements of the district's rules or for whom the
representative of the residential occupants is not responsible, the
district shall make service available to the residential occupants
who have met those requirements or on whose behalf those requirements
have been met.
   (c) If prior service for a period of time or other demonstration
of credit worthiness is a condition for establishing credit with the
district, residence and proof of prompt payment of rent or other
credit obligation during that period of time acceptable to the
district is a satisfactory equivalent.
   (d) Any residential occupant who becomes a customer of the
district pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, if these charges are not separately stated, may deduct from
the periodic payment each payment period all reasonable charges paid
to the district for those services during the preceding payment
period.
   (e) Whenever a district furnishes residential service subject to
subdivision (a), the district may not terminate that service in any
of the following situations:
   (1) During the pendency of an investigation by the district of a
customer dispute or complaint.
   (2) When the customer has been granted an extension of the period
for payment of a bill.
   (3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the district.
   (4) When a delinquent account relates to another property owned,
managed, or operated by the customer.
   (5) When a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
   (f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, operator, or
manager, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
   (1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
   (2) Actual damages related to the termination of service.
   (3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
   (g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
   (1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
   (2) Reasonable costs incurred by the corporation related to the
restoration of service.
   (3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
   If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
   An abstract of any money judgment entered pursuant to subdivision
(f) or (g) shall be recorded pursuant to Section 697.310 of the Code
of Civil Procedure.
   (h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the district, the district
shall, in addition, be liable to the residential occupants or
customer for actual damages resulting from the termination and for
the costs of enforcement of this section, including, but not limited
to, reasonable attorney's fees, if the residential occupants or the
representative of the residential occupants make a good faith effort
to have the service continued without interruption.
   (i) The district shall adopt rules and regulations necessary to
implement this section and shall liberally construe this section to
accomplish its purpose of ensuring that service to the residential
occupants is not terminated due to nonpayment by the customer unless
the district has made every reasonable effort to continue service to
the residential occupants. The rules and regulations shall include,
but are not limited to, guidelines for assistance to actual users in
the enforcement of this section and requirements for the notice
prescribed by subdivision (a), including, but not limited to, clear
wording, large and boldface type, and comprehensive instructions to
ensure full notice to the actual users.
   (j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
   (k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of public utility service or permitting
the recovery of costs associated with the formation, maintenance,
and termination of a tenant's association.  
  SEC. 10.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.