BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 188|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 188
Author: Hancock (D), et al.
Amended: 4/14/15
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/8/15
AYES: Hertzberg, Nguyen, Bates, Beall, Hernandez, Lara, Pavley
SENATE JUDICIARY COMMITTEE: 6-1, 4/21/15
AYES: Jackson, Moorlach, Hertzberg, Leno, Monning, Wieckowski
NOES: Anderson
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/4/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Municipal utility district: utility charges:
delinquencies
SOURCE: Author
DIGEST: This bill repeals the January 1, 2016 sunset date in
the statute that allows Municipal Utility Districts to impose
liens on properties for delinquent water and wastewater service
charges, and to collect delinquent charges through county
property tax rolls.
ANALYSIS:
Existing law:
SB 188
Page 2
1)Authorizes Municipal Utility Districts (MUDs) to collect
delinquent residential water and sewer service charges through
a lien or the local property tax roll, in the case of
master-metered multi-family residential buildings in which the
utility account is in the landlord's name.
2)Prohibits public utilities from recovering unpaid charges from
a property owner if the charges are for residential utility
service provided to a tenant under an account established by
the tenant.
3)Prohibits MUDs from attaching a lien to publicly owned
property.
4)Requires a MUD to do the following before collect delinquent
charges through a lien or the property tax roll:
a) Adopt a relevant resolution or ordinance.
b) Prepare a report.
c) Provide notice.
d) Conduct a public hearing.
e) File a final report with the county auditor; and
f) Record a certificate in the office of the county
recorder.
5)Provides that, as of January 1, 2016, a MUD's lien authority
shall not apply to delinquent fees or charges for the
SB 188
Page 3
furnishing of water or sewer service to a residential
property.
This bill:
1)Repeals the sunset date in the statute that allows MUDs to
impose liens on properties for delinquent water and wastewater
service charges, and to collect delinquent charges through
county property tax rolls, extending MUDs' authority to
continue its lien program indefinitely, extending MUD's lien
authority indefinitely.
2)Makes an uncodified statement of the Legislature's intent not
to change existing law regarding the protection provided to a
property owner pursuant to Section 12822.6 of the Public
Utilities Code, which prohibits a MUD from collecting
delinquent charges or penalties from a property owner accrued
by a residential tenant in a nonmaster-metered building.
Comments
1)Purpose of the bill. The East Bay Municipal Utility District
(EBMUD) provides drinking water for 1.3 million customers in
Alameda and Contra Costa counties, and wastewater services for
650,000 customers in the East Bay. The lien authority granted
by SB 1035 (Hancock, Chapter 485, Statutes of 2010) has given
EBMUD an alternative to shutting off tenants' water when their
landlords fail to pay the bill. SB 188 allows EBMUD to
continue its lien program, granting MUDs the same statutory
lien authority that other special districts have under
California law.
2)Property owners' concerns. Since 1996, state law has
prohibited MUDs from seeking to recover, from a property
owner, unpaid charges or penalties for residential services
provided to a tenant under an account established by the
SB 188
Page 4
tenant (AB 1770, Brewer). Some property owners are concerned
that, under a narrow reading of state law, MUDs could at some
point use liens and property tax rolls to recover past due
water and sewer charges from landlords when tenants fail to
pay their utility bills.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee, there is no
state fiscal impact. Any costs incurred by county officials
related to the recording of liens and collection of delinquent
service charges through the tax roll must be paid by the utility
district, and are not reimbursable from the state.
SUPPORT: (Verified5/5/15)
Alameda County
Association of California Water Agencies
California Special Districts Association
East Bay Municipal Utility District
OPPOSITION: (Verified5/13/15)
None received
Prepared by:Toren Lewis / GOV. & F. / (916) 651-4119
5/15/15 10:29:51
**** END ****
SB 188
Page 5