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<ns0:Id>20250AB__194599INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-13</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1945</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Hadwick</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthor: Senator Dahle)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Assembly Member Gallagher)</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Hadwick</ns0:Name>
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<ns0:Name>Dahle</ns0:Name>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Gallagher</ns0:Name>
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<ns0:Title> An act to amend Section 12823.1 of, and to add Section 12823.2 to, the Public Utilities Code, relating to municipal utility districts. </ns0:Title>
<ns0:RelatingClause>municipal utility districts</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Municipal utility districts: termination of service.</ns0:Subject>
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<ns0:DigestText>
<html:p>The Municipal Utility District Act establishes the formation of a municipal utility district for the provision of light, heat, water, or power within the district’s jurisdiction. The act prohibits a district furnishing light, heat, water, or power from terminating residential service on account of nonpayment of a delinquent account unless the district provides a notice of delinquency and an opportunity to cure, as provided.</html:p>
<html:p>This bill would authorize districts furnishing electrical service to less than 100,000 customers to offer customers the option of electronically receiving the required notice of delinquency, as specified. The bill would also authorize those districts to offer customers a prepay option for electrical service if certain conditions are met. The bill would specify that the notice requirement before termination of residential
service of a customer does not apply to customers participating in the prepay option.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 12823.1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>12823.1.</ns0:Num>
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(a)
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A district furnishing light, heat, water, or power shall not terminate residential service on account of nonpayment of a delinquent account unless the district first gives notice of the delinquency and impending termination, at least 10 days before the proposed termination, by means of a notice mailed, postage prepaid, to the customer to whom the service is billed not earlier than 19 days from the date of mailing the district’s bill for services, and the 10-day period shall not commence until five days after the mailing of the notice.
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(b)
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Every district shall
make a reasonable attempt to contact an adult person residing at the premises of the customer by telephone or personal contact, at least 24 hours before any termination of service, except that, whenever telephone or personal contact cannot be accomplished, the district shall give, by mail, in person, or by posting in a conspicuous location at the premises, a notice of termination of service, at least 48 hours prior to termination.
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(c)
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Every district shall make available to its residential customers who are 65 years of age or older, or who are dependent adults as defined in Section 15610.23 of the Welfare and Institutions Code, a third-party notification service, whereby the district will attempt to notify a person designated by the customer to
receive notification when the customer’s account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third-party notification on a form provided by the district, and shall include the written consent of the designated third party. The third-party notification does not obligate the third party to pay the overdue charges, nor shall it prevent or delay termination of service.
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<html:p>
(d)
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(1)
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Every notice of termination of service pursuant to subdivision (a) shall include all of the following information:
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(A)
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The name and address of the customer whose account is delinquent.
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(B)
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The amount of the delinquency.
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(C)
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The date by which payment or arrangements for payment is
required to avoid termination.
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<html:p>
(D)
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The procedure by which the customer may initiate a complaint or request an investigation concerning service or charges, except that, if the bill for service contains a description of that procedure, the notice pursuant to subdivision (a) is not required to contain that information.
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<html:p>
(E)
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The procedure by which the customer may request amortization of the unpaid charges.
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<html:p>
(F)
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The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable.
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<html:p>
(G)
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The telephone number of a representative of the district who
can provide additional information or institute arrangements for payment.
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<html:p>
(2)
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Every
notice of termination of service pursuant to subdivision (b) shall include the items of information specified in paragraph (1).
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(3)
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All written notices shall be in a clear and legible format.
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<html:p>
(e)
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If a residential customer fails to comply with an amortization agreement, the district shall not terminate service without giving notice to the customer at least 48 hours before termination of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the district.
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<html:p>
(f)
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A termination of service shall not be effected without compliance with this section. Any service wrongfully terminated shall be restored without charge for the restoration of service, and a notation
of the restoration shall be mailed to the customer at the customer’s billing address.
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<html:p>
(g)
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A district furnishing electrical service to less than 100,000 customers may offer customers the option of receiving electronic notices required by this section solely by electronic mail, text message, app-based notification, or other method as specified by the customer.
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<html:p>
(h)
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This section does not apply to a customer participating in a prepay program pursuant to Section 12823.2.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 12823.2 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>12823.2.</ns0:Num>
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<html:p>
(a)
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A district furnishing electrical service to less than 100,000 customers may offer customers a prepay option for electrical service if all of the following conditions are met:
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<html:p>
(1)
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The customer affirmatively opts into a district-approved prepay program with informed written consent.
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(2)
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The district provides electronic access to usage and account balance information.
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<html:p>
(3)
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The district issues automated low-balance alerts to the customer before service suspension.
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<html:p>
(4)
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The customer retains the right to exit the prepay option and return to standard billing
pursuant to the policy adopted by the board.
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<html:p>
(b)
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Section 12823.1 does not apply to the termination of service for nonpayment of a delinquent account for a customer participating in a prepay option pursuant to subdivision (a).
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