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<ns0:Id>20250SB__119698AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-23</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1196</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator McNerney</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>McNerney</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Section 66311.5 of the Government Code, and to amend Section 8400 of, to amend the heading of Chapter 9 (commencing with Section 8400) of Division 4.1 of, and to add Section 8402 to, the Public Utilities Code, relating to public utilities.</ns0:Title>
<ns0:RelatingClause>public utilities</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Accessory dwelling units and junior accessory dwelling units: utility service connections.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law, the Planning and Zoning Law, among other things, provides for the creation by ordinance, or by ministerial approval if the local agency has not adopted an ordinance, of an accessory dwelling unit (ADU) or a junior accessory dwelling unit (JADU) in accordance with specified standards and conditions. Existing law authorizes a local agency, special district, or water corporation to require a new or separate utility connection directly between the unit and the utility for certain ADUs, as provided.</html:p>
<html:p>This bill would require a local agency to post on its internet website or distribute in written form to an applicant a comprehensive list of requirements for utility service connections that may be required for an ADU or JADU and contact
information for each of the utilities that provide service in the jurisdiction.</html:p>
<html:p>By imposing new duties on local agencies, the bill would impose a state-mandated local program. </html:p>
<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, gas corporations, sewer system corporations, and water corporations, while local publicly owned utilities, including municipal utility districts, public utility districts, and irrigation districts, are under the direction of their governing boards. Existing law, for a new housing construction, requires those utilities to publicly post on their internet websites a schedule of estimated fees for typical service connections for each housing development type and the
estimated timeframes for completing typical service connections needed for each housing type, excepted as provided.</html:p>
<html:p>This bill would require each of the above-described utilities to post on its internet website a comprehensive checklist of items that an applicant is required to submit to the utility for an application for obtaining a service connection to an ADU or JADU to be deemed complete, to provide an option for the applicant to engage with staff for preapplication project review, and to provide upfront estimated costs for the applicant’s planning purposes, as provided. The bill would establish a process by which utilities are required to review the submission of an application to determine whether the application is deemed complete, as provided. For an electrical service connection, the bill would require the utility providing electrical service, within 15 business days of determining an application is complete, to make a load assessment for the ADU or JADU and
to inform the applicant whether a new electrical panel or electrical meter is required to provide the service connection, as specified, and would require the utility, within 10 business days of a notification that the new electrical panel or electrical meter has been installed, to verify that the installation is completed. The bill would require a utility, within 30 days of a notification that the construction of the ADU or JADU is complete, to complete the service connection to the dwelling unit, as specified. The bill would authorize an applicant to submit, in writing, a complaint to the commission if the utility has violated the requirements of the bill and would require the commission to assess civil penalties, as provided, for violations of the requirements of the bill.</html:p>
<html:p>Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because a violation of a
commission action implementing certain requirements of the bill would be a crime, this bill would impose a state-mandated local program.</html:p>
<html:p>The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for specified reasons.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_9D4ACA49-882F-44E3-8C5E-B295A76C44FE">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 66311.5 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Num>66311.5.</ns0:Num>
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<html:p>
(a)
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Fees charged for the construction of accessory dwelling units or junior accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An accessory dwelling unit or junior accessory dwelling unit shall not be considered by a local agency, special district, or water corporation to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the unit was constructed with a new single-family dwelling.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A local agency, special district, or water corporation shall not impose any impact fee
upon the development of an accessory dwelling unit that has 750 square feet of interior livable space or less or a junior accessory dwelling unit that has 500 square feet of interior livable space or less. Any impact fees charged for an accessory dwelling unit that has more than 750 square feet of interior livable space shall be charged proportionately in relation to the square footage of the primary dwelling unit.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000, except that it also includes fees specified in Section 66477. “Impact fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For the purposes of this section and Section 17620 of the Education Code, an accessory dwelling unit or junior accessory dwelling unit
that contains less than 500 square feet of interior livable space shall, for the purpose of subparagraph (C) of paragraph (1) of subdivision (a) of Section 17620 of the Education Code, be considered other residential construction that does not increase assessable space by 500 square feet.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For an accessory dwelling unit or a junior accessory dwelling unit described in paragraph (1) of subdivision (a) of Section 66323, a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the unit and the utility or impose a related connection fee or capacity charge, unless the unit was constructed with a new single-family dwelling, or upon separate conveyance of the accessory dwelling unit pursuant to Section 66342.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For an accessory dwelling unit that is not described in paragraph (1) of
subdivision (a) of Section 66323, a local agency, special district, or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A local agency shall post on its internet website or distribute in written form to an applicant a comprehensive list of requirements for utility
service connections that may be required for an accessory dwelling unit or junior accessory dwelling unit and contact information for each of the utilities that provide service in the jurisdiction.
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<ns0:Num>SEC. 2.</ns0:Num>
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The heading of Chapter 9 (commencing with Section 8400) of Division 4.1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawHeading id="id_F6B92A3D-F7BE-4858-A995-B7BE66B77C45" type="CHAPTER">
<ns0:Num>9.</ns0:Num>
<ns0:LawHeadingVersion id="id_A35BF9FA-2773-4F17-B413-74EE54478F76">
<ns0:LawHeadingText>Electrical, Gas, Sewer, and Water Service for Housing Construction</ns0:LawHeadingText>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 8400 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>8400.</ns0:Num>
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<html:p>As used in this chapter, all of the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Accessory dwelling unit” has the same meaning as set forth in Section 66313 of the Government Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Junior accessory dwelling unit” has the same meaning as set forth in Section 66313 of the Government Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Utility” means any of the following that furnish electrical, gas, water, or sewer service, or a combination of those services,
where the service is performed for, or the commodity is delivered to, the public or
a portion of the public:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An electrical corporation, as defined in Section 218.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A
gas corporation, as defined in Section 222.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A sewer system corporation, as defined in Section 230.6.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A water corporation, as defined in Section 241.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A municipality or municipal corporation operating as a public utility pursuant to Division 5 (commencing with Section 10001).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A municipal utility district formed pursuant to the Municipal Utility District Act (Division 6 (commencing with Section 11501)).
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A public utility district formed pursuant to The Public Utility District Act (Division 7 (commencing with Section 15501)).
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
An irrigation district formed pursuant to the Irrigation District Law (Division 11 (commencing with Section 20500) of the Water Code).
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
A joint powers authority that includes one or more
of the entities described in subdivisions (e) to (h), inclusive, and that owns electrical, gas, water, or sewer facilities, or furnishes electrical, gas, water, or sewer service over its own or its member’s system.
</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 8402 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>8402.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, both of the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Applicant” means a person or entity submitting an application.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Application” means an application for obtaining a service connection to an accessory dwelling unit or junior accessory dwelling units.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A utility shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Post on its internet website a comprehensive checklist of items that the applicant is required to submit to the utility for the application to be deemed complete.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Provide an option for the applicant to engage with staff for preapplication project review.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Provide upfront estimates of costs for the applicant’s planning purposes that include estimates of all related fees, charges, and potential upgrades to infrastructure or increases of electricity to the property that may be needed for energization, if applicable.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A utility shall allow an application to be submitted at the same time an applicant applies for a building permit for the local agency with jurisdiction over the accessory dwelling unit or junior accessory dwelling unit.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Not later than 15 business days after a utility received an application, the utility shall determine whether the application is complete and provide written notice of its determination to the
applicant.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the utility determines that the applicant is incomplete, the utility shall, as a part of the notice provided under paragraph (1), provide the applicant with a list of deficiencies that renders the application incomplete and a description of how the applicant can cure those deficiencies.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Upon the receipt of a notice that an application is incomplete, the applicant may remedy the deficiencies specified in the notice by submitting additional information.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Within 15 business days of receiving the additional information, the utility shall determine whether the submission has remedied the deficiencies specified in the notice and whether the application is complete. The utility shall not deem an application to be incomplete for any deficiency that was not specified in the
notice. If the utility determines that the submission is insufficient to remedy the deficiencies specified in the notice and that the application remains incomplete, the utility shall notify the applicant of its right to submit, in writing, a complaint pursuant to subdivision (h).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A utility shall not cancel an application without the applicant’s consent.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For an application for an electrical service connection, within 15 business days of determining an application is complete, the utility providing electrical service shall make a load assessment for the accessory dwelling unit or junior accessory dwelling unit and inform the applicant whether a new electrical panel or electrical meter is required to provide the electrical service connection. If a new electrical panel or electrical meter is required, the electrical corporation shall also provide to
the applicant comprehensive specifications for the new electrical panel or electrical meter.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Within 10 business days of a notification that the new electrical panel or electrical meter has been installed, the utility shall verify that the installation is completed.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Within 30 days of a notification that the construction of an accessory dwelling unit or junior accessory dwelling unit is complete, the utility shall complete the service connection to the accessory dwelling unit or junior accessory dwelling unit if the application has been deemed complete and, if applicable, the installation of the new electrical panel or electrical meter is verified to be completed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The 30-day period may be extended if the applicant requests a delay in completing the service connection and shall be
extended by the amount of time requested.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The 30-day period may be extended by the utility only if the accessory dwelling unit or junior accessory dwelling unit is not ready for the service connection.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
If a utility fails to comply with this section, an applicant may submit, in writing, to the commission, a complaint alleging a violation of this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The commission shall keep a record of all complaints filed pursuant to subdivision (h) and shall annually publish a report with that aggregated record.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The commission shall give notice to a utility of a complaint filed by an applicant pursuant to this section and give the utility an opportunity to address the complaint.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the commission determines a utility has violated this section, the commission shall assess a civil penalty of up to ten thousand dollars ($10,000) for each day that the violation occurred.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In addition to paragraph (1), the commission shall annually assess a civil penalty on a utility based on percentage of the number of complaints filed pursuant to subdivision (h) for which the commission finds that a violation of this section has occurred as compared to the total number of applications filed with the utility for that calendar year. A civil penalty in the amount of up to one million dollars ($1,000,000) shall be assessed if the percentage is between 5 and 10 percent. A civil penalty of up to two million dollars ($2,000,000) shall be assessed if the percentage is more than 10 percent.
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<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that Section 1 of this act amending Section 66311.5 of the Government Code addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act applies to all cities, including charter cities.</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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
<html:span class="ThinSpace"/>
B of the California Constitution.
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