BILL NUMBER: SB 2166	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   AUGUST 6, 1998
	AMENDED IN ASSEMBLY   JULY 8, 1998
	AMENDED IN ASSEMBLY   JUNE 25, 1998
	AMENDED IN ASSEMBLY   JUNE 16, 1998
	AMENDED IN SENATE   MAY 4, 1998
	AMENDED IN SENATE   APRIL 20, 1998
	AMENDED IN SENATE   MARCH 31, 1998

INTRODUCED BY   Senator Costa
    (Coauthor:  Assembly Member Brewer) 

                        FEBRUARY 20, 1998

   An act to amend Sections 10009.6, 12811.1, and 12822.6 of, and to
repeal Sections 10016 and 12811.5 of, the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2166, as amended, Costa.   Public utilities:  services to
tenant.
   (1) Existing law provides for the furnishing of utility services,
including residential electrical, gas, heat, and water services, by
privately owned public utilities subject to the jurisdiction and
control of the Public Utilities Commission and similar services by
publicly owned public utilities, including municipal corporations
subject to their governing bodies and municipal utility districts and
public utility districts subject to their boards of directors.
Existing law requires the decision to require a new residential
applicant to deposit a sum of money, prior to establishing an account
and furnishing service, to be based solely upon the creditworthiness
of the applicant as determined by the entity.  Existing law
prohibits municipally owned utilities and municipal utility districts
from requiring that service to tenants subsequent to a tenant for
which there are unpaid charges or penalties be furnished on the
account of the landlord or property owner unless the property owner
consents through a written agreement.
   This bill would  delete the requirement that the owner's consent
be in writing.  The bill also would prohibit municipally owned
utilities and municipal utility districts from refusing to furnish
services to a tenant in the tenant's name based upon the nonpayment
of charges by a previous tenant.  The bill would make related
technical changes.
   Because this bill would create new duties for municipally owned
utilities and municipal utility districts, the bill would impose a
state-mandated local program.
   (2) Existing law provides that accounts of a municipal utility
district that are delinquent become a lien on the property to which
services were rendered, with the force, effect, and priority of a
judgment lien, when a certificate to this effect is filed for
recordation with the county recorder, but exempts from that provision
delinquent fees or charges for the furnishing of water service to
residential property.
   This bill would also exempt delinquent fees or charges for the
furnishing of sewer service to residential property, and would make
related technical changes.
  (3) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   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 10009.6 of the Public Utilities Code is amended
to read:
   10009.6.  (a) The decision of a public utility to require a new
residential applicant to deposit a sum of money with the public
utility prior to establishing an account and furnishing service shall
be based solely upon the creditworthiness of the applicant as
determined by the public utility.
   (b) No municipal corporation owning or operating a public utility
furnishing services for residential use to a tenant under an account
established by the tenant shall seek to recover any charges or
penalties for the furnishing of services to  ,  or for the
tenant's residential use from  ,  any subsequent tenant or
the property owner due to nonpayment of charges by a previous tenant.
  For this purpose, the term "subsequent tenant" shall not include
any adult person who lived at the residence during the period that
the charges or penalties accrued.  The municipal corporation may
collect a deposit from the tenant service applicant prior to
establishing an account for the tenant.  The municipal corporation
may not require that service to subsequent tenants be furnished on
the account of the landlord or property owner unless the property
owner voluntarily agrees to that requirement, nor may the municipal
corporation refuse to furnish services to a tenant in the tenant's
name based upon the nonpayment of charges by a previous tenant.
   (c) A public utility subject to this section may not demand or
receive security in an amount that exceeds twice the estimated
average periodic bill or three times the estimated average monthly
bill.
   (d) In the event of tenant nonpayment of all or a portion of the
bill, the deposit shall be applied to the final bill issued when
service is terminated.
   (e) This section shall not apply to master-metered apartment
buildings.
  SEC. 2.  Section 10016 of the Public Utilities Code is repealed.
  SEC. 3.  Section 12811.1 of the Public Utilities Code is amended to
read:
   12811.1.  (a) A district may, by resolution or ordinance, require
the owner of record of real property within the district to pay the
fees, tolls, rates, rentals, or other charges for services rendered
to a lessee, tenant, or subtenant  ,  and those fees, tolls,
rates, rentals, and other charges that have become delinquent,
together with interest and penalties thereon, are a lien on the
property when a certificate is filed in the office of the county
recorder pursuant to subdivision (b) and the lien has the force,
effect, and priority of a judgment lien.  No lien may be created
under this section on any publicly owned property.
   (b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
   (c) In filing any instrument for recordation under this section,
the district shall pay the fees specified in Sections 27361 and
27361.4 of the Government Code.
   (d) The remedies in this section are in addition to any other
remedy provided by law.
   (e) This section does not apply to delinquent fees or charges for
the furnishing of water or sewer service to residential property or
electrical service.
  SEC. 4.  Section 12811.5 of the Public Utilities Code is repealed.

  SEC. 5.  Section 12822.6 of the Public Utilities Code is amended to
read:
   12822.6.  (a) The decision of a district to require a new
residential applicant to deposit a sum of money with the district
prior to establishing an account and furnishing service shall be
based solely upon the creditworthiness of the applicant as determined
by the district.
   (b) No municipal utility district owning or operating a public
utility furnishing services for residential use to a tenant under an
account established by the tenant shall seek to recover any charges
or penalties for the furnishing of services to  ,  or for
the tenant's residential use from  ,  any subsequent tenant
or the property owner due to nonpayment of charges by a previous
tenant.  For this purpose, the term "subsequent tenant" shall not
include any adult person who lived at the residence during the period
that the charges or penalties accrued.  The district may collect a
deposit from the tenant service applicant prior to establishing an
account for the tenant.  The district may not require that service to
subsequent tenants be furnished on the account of the landlord or
property owner unless the property owner voluntarily agrees to that
requirement, nor may the district refuse to furnish services to a
tenant in the tenant's name based on the nonpayment of charges by a
previous tenant.
   (c) A district subject to this section may not demand or receive
security in an amount that exceeds twice the estimated average
periodic bill or three times the estimated average monthly bill.
   (d) In the event of tenant nonpayment of all or a portion of the
bill, the deposit shall be applied to the final bill issued when
service is terminated.
   (e) This section shall not apply to master-metered apartment
buildings.
  SEC. 6.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.