BILL ANALYSIS
SB 120
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 120 (Lowenthal) - As Amended: August 17, 2009
Policy Committee: JudiciaryVote:
7-3
Utilities 10-4
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill allows residents of single-unit dwellings to take over
a utility service account in arrears by the owner and pending
termination, and requires the utility to provide notification of
service termination in specified languages. Specifically, this
bill:
1)Adds single-unit structures to the dwelling types whose
residential occupants must be notified of service termination
by a public utility district furnishing individually metered
residential utility service.
2)Allows residents of single-unit structures to take over
individually metered residential service accounts that were
the obligation of the owner, if certain conditions are met,
and then deduct their monthly utility charges from their rent.
3)Requires notice of service termination per (1) to be in
writing in the following languages: English, Spanish, Chinese,
Tagalog, Vietnamese, and Korean.
4)Clarifies that when a residential occupant takes over a
delinquent service account, they need only assume
responsibility for the subsequent charges to the account.
5)Establishes the same requirements as all of the above for
private utilities, with the following exceptions:
a) Allows the utility to provide the required notice within
7 days rather than 10 days.
SB 120
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b) Allows the utility to require the occupant of a
single-unit dwelling, in order for the amount due on a
delinquent account to be waived, to verify that the
delinquent account customer was the landlord.
c) Make all of the new requirements effective July 1, 2010.
FISCAL EFFECT
Minor absorbable costs to the PUC for enforcement of the bill's
requirements with regard to the investor-owned utilities.
COMMENTS
Purpose . Under current law, a residential occupant of a
multi-unit dwelling may assume responsibility for paying
individually metered service charges from a public utility,
corporation, or utility district and deduct those charges from
any rent owed if the services are included in the rent. This
bill extends the same right to residential occupants of
single-unit dwellings. According to the author, such an
expansion is needed because single-family homes and condominiums
are the types of rentals most often affected by foreclosure.
This bill also clarifies certain ambiguity in the law when a
residential occupant takes over a service contract. Under
current law, if one or more of the residential occupants are
willing and able to assume responsibility for the "entire
account," the provider must make service available to the
residential occupant if certain requirements are met. This bill
clarifies that the "entire account" refers to only the
subsequent charges to the account and not to charges in
delinquency.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081