BILL NUMBER: SB 120 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 17, 2009
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, 777.1, 10009, 10009.1, 12822,
12822.1, 16481, and 16481.1 of , and to amend, repeal, and add
Section 777 of, the Public Utilities Code, relating to
residential tenancies.
LEGISLATIVE COUNSEL'S DIGEST
SB 120, as amended, Lowenthal. Residential: 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 (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 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 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, 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 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 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 provide that if an electrical, gas, heat, or water
corporation furnishes individually metered residential service to
residential occupants in a detached 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 corporation 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 , except as specified . 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 detached 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 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 structure in a
labor camp, as defined, 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. 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 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 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 require that the notice be in English, Spanish,
Chinese, Tagalog, Vietnamese, and Korean.
(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, 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) If an electrical, gas, heat, or water corporation
furnishes individually metered residential service to residential
occupants of a single-family dwelling, a multiunit residential
structure, mobilehome park, or permanent residential structure in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, and the owner, manager, or operator of the dwelling, structure,
or park is the customer of record, the corporation shall make every
good faith effort to inform the residential occupants, by means of
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 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) 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. 2. Section 777 of the Public
Utilities Code is amended to read:
777. (a) Whenever 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 in
Section 17008 of the Health and Safety Code, where the owner,
manager, or operator 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 notice, when the account is
in arrears, that service will be terminated at least 10 days prior to
termination. 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.
(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 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 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.
(e) This section shall remain in effect only until July 1, 2010,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2010, deletes or extends that date.
SEC. 2.5. Section 777 is added to the
Public Utilities Code , to read:
777. (a) If an electrical, gas, heat, or water corporation
furnishes individually metered residential service to residential
occupants of a detached single-family dwelling, a multiunit
residential structure, mobilehome park, or permanent residential
structure in a labor camp, as defined in Section 17008 of the Health
and Safety Code, and the owner, manager, or operator of the dwelling,
structure, or park is the customer of record, the corporation shall
make every good faith effort to inform the residential occupants, by
means of 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 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) 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.
(e) In the case of a detached single-family dwelling, the
corporation may do any of the following:
(1) Give notice of termination at least seven days prior to the
proposed termination, notwithstanding the notice period specified in
subdivision (a).
(2) In order for the amount due on the delinquent account to be
waived, require an occupant who becomes a customer to verify that the
delinquent account customer of record is or was the landlord,
manager, or agent of the dwelling. Verification may include, but is
not limited to, a lease or rental agreement, rent receipts, a
government document indicating that the occupant is renting the
property, or information disclosed pursuant to Section 1962 of the
Civil Code.
(f) This section shall become operative on July 1, 2010.
SEC. 3. Section 777.1 of the Public Utilities Code is amended to
read:
777.1. (a) 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 structure in a labor camp, as defined in
Section 17008 of the Health and Safety Code, 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 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) 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) If a corporation furnishes residential service subject to
subdivision (a), the corporation 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) 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 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) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) 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) If a public utility furnishes individually metered
residential light, heat, water, or power to residential occupants in
a detached single-family dwelling, a multiunit residential
structure, mobilehome park, or a permanent residential structure in
a labor camp, as defined in Section 17008 of the Health and Safety
Code, if the owner, manager, or operator of the dwelling, structure,
or park is the customer of record, the public utility shall make
every good faith effort to inform the residential occupants, by means
of 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 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) 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) 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, 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 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) 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) 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) 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) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) 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 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.
() 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) If a district furnishes individually metered
residential light, heat, water, or power to residential occupants in
a detached single-family dwelling, multiunit residential
structure, mobilehome park, or permanent residential structure in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, and the owner, manager, or operator of the dwelling, structure,
or park is the customer of record of the service, the district shall
make every good faith effort to inform the residential occupants, by
means of 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
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) 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) 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 in a labor camp, as defined in Section 17008
of the Health and Safety Code, 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 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) 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) 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) 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) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) 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 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.
() 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) If a district furnishes individually metered
residential light, heat, water, or power to residential occupants in
a detached single-family dwelling, multiunit residential
structure, mobilehome park, or permanent residential structure in a
labor camp, as defined in Section 17008 of the Health and Safety
Code, and the owner, manager, or operator is the customer of record,
the district shall make every good faith effort to inform the
residential occupants, by means of 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
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) 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) 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 structure in a labor camp, as defined in Section 17008 of
the Health and Safety Code, 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 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) 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) 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) 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) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) 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 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.
() 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.