Bill Text: CA SB3 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Discontinuation of residential water service: covered water system.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2023-10-13 - Chaptered by Secretary of State. Chapter 855, Statutes of 2023. [SB3 Detail]

Download: California-2023-SB3-Amended.html

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Amended  IN  Senate  May 23, 2023

Amended  IN  Senate  March 09, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 3

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Introduced by Senator Dodd
(Coauthors: Senators Blakespear, Gonzalez, and Skinner)
(Coauthors: Assembly Members Bennett, Connolly, Gipson, Grayson, Low, Ortega, Weber, and Wilson)

December 05, 2022

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An act to amend Sections 116766, 116902, 116906, 116908, 116910, 116912, 116914, 116916, 116918, 116920, 116922, and 116926 of, and to repeal and add Section 116904 of, the Health and Safety Code, relating to water.

LEGISLATIVE COUNSEL'S DIGEST

SB 3, as amended, Dodd. Discontinuation of residential water service: community water system.

(1) Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law authorizes the State Water Resources Control Board to provide for the deposit into the fund of certain moneys and continuously appropriates the moneys in the fund to the state board for grants, loans, contracts, or services to assist eligible recipients.

This bill would require the board to, upon appropriation by the Legislature, expend moneys to provide training statewide to community water systems with between 15 and 200 service connections to meet compliance with the Water Shutoff Protection Act.

Existing

(2) Existing law, the Water Shutoff Protection Act, prohibits an urban and community water system, defined as a public water system that supplies water to more than 200 service connections, from discontinuing residential service for nonpayment, as specified, and requires specified procedures before it can discontinue residential service for nonpayment. Existing law defines a community water system as a public water system that serves at least 15 service connections used by yearlong residents or regularly serves at least 25 yearlong residents of the area served by the system. Existing law requires an urban and community water system to have a written policy on discontinuation of residential service for nonpayment available in English, the specified languages in the Civil Code, and any other language spoken by at least 10% of the people residing in its service area.

This bill would expand the scope of the Water Shutoff Protection Act by requiring that it instead apply to a community water system, defined to have the same meaning as existing law. The bill would require a community water system that supplies water to 200 service connections or fewer to comply with the act’s provisions on and after August 1, 2024. The bill would instead apply the above-described language requirements for the written policy of discontinuation of residential service for nonpayment to a community water system that serves 200 or more service connections. The bill would require a community water system that serves fewer than 200 service connections to have a written policy on disconnection of residential service for nonpayment available in English, any language spoken by at least 10% of the people residing in its service area, and, upon request of a customer, the specified languages in the Civil Code.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 116766 of the Health and Safety Code is amended to read:

116766.

 (a) The Safe and Affordable Drinking Water Fund is hereby established in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Notwithstanding Section 13340 of the Government Code, all moneys deposited in the fund are continuously appropriated to the board to fund all of the following:

(1) Operation and maintenance costs to help deliver an adequate supply of safe drinking water in both the near and long terms.

(2) Consolidating water systems, or extending drinking water services to other public water systems, domestic wells, and state small water systems.

(3) The provision of replacement water, as needed, to ensure immediate protection of health and safety as a short-term solution.

(4) The provision of services under Section 116686 for purposes of helping the water systems become self-sufficient in the long term.

(5) The development, implementation, and sustainability of long-term drinking water solutions.

(6) Board costs associated with the implementation and administration of programs pursuant to this chapter.

(b) (1) Consistent with subdivision (a), the board shall expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

(2) Consistent with subdivision (a), the board, upon appropriation by the Legislature, shall expend moneys to provide training statewide to community water systems with between 15 and 200 service connections to meet compliance with the Water Shutoff Protection Act (Chapter 6 (commencing with Section 116900)).

(c) (1) Eligible recipients of funding under this chapter are public agencies, nonprofit organizations, public utilities, mutual water companies, federally recognized California Native American tribes, nonfederally recognized Native American tribes on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004, administrators, groundwater sustainability agencies, community water systems, and technical assistance providers.

(2) Any waiver of tribal sovereign immunity that is required by the board for a tribe that is an eligible recipient to access funding under this chapter shall be narrowly drafted to serve both the individual needs of the tribe and make the funding agreement enforceable. The waiver of sovereign immunity shall be negotiated with the direct involvement and assistance of the board’s tribal liaison or their designee or designees.

(3) In order to facilitate better coordination between the board and tribes that are eligible recipients, the board shall include its designated tribal liaison or their designee or designees in all discussions with eligible recipients, unless those eligible recipients give permission for the tribal liaison or their designee or designees to be absent.

(4) In expending moneys from the fund under this chapter, the board shall consider the extent that funds for safe drinking water projects from the programs administered by the board are distributed to eligible recipients to provide assistance to federally recognized California Native American tribes or nonfederally recognized Native American tribes on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004 and shall make diligent efforts to ensure the distribution of funds to those tribes. The board shall expend those funds, upon appropriation by the Legislature, for grants, loans, contracts, or services to assist those tribes.

(5) The board shall post on its internet website, and update annually, the number of inquiries for funding received from tribes, the number of applications for funding received from tribes, and the total amount of funding granted to tribes each year. If the board is not able to consistently approve funding applications from eligible tribes in a timely manner, the board shall identify barriers to the tribes receiving funding and propose possible solutions in the fund expenditure plan.

(6) To be eligible for funding under this chapter, grants, loans, contracts, or services provided to a public utility that is regulated by the Public Utilities Commission or a mutual water company shall have a clear and definite public purpose and shall benefit the customers of the water system and not the investors.

(7) For purposes of this subdivision, “tribal liaison” means an individual employed by the board as a tribal liaison, or if the tribal liaison is unavailable, a tribal coordinator, the board’s chair, the board’s executive director, or the board’s chief counsel acting in that capacity as a designee or the designees of the tribal liaison.

(d) On and after July 1, 2020, an expenditure from the fund shall be consistent with the fund expenditure plan.

(e) The board may expend moneys from the fund for reasonable costs associated with the administration of this chapter, not to exceed 5 percent of the annual deposits into the fund.

(f) In administering the fund, the board shall make reasonable efforts to ensure that funds are used to secure the long-term sustainability of drinking water service and infrastructure, including, but not limited to, requiring adequate technical, managerial, and financial capacity of eligible applicants as part of funding agreement outcomes.

(g) Beginning in the 2023–24 fiscal year, and each fiscal year thereafter until June 30, 2030, if the annual transfer to the fund pursuant to paragraph (3) of subdivision (b) of Section 39719 is less than one hundred thirty million dollars ($130,000,000), on an annual basis the Director of Finance shall calculate a sum equivalent to the difference, up to one hundred thirty million dollars ($130,000,000), and the Controller shall transfer that sum from the General Fund to the fund. This subdivision is operative only while a market-based compliance mechanism adopted pursuant to Section 38562 is operative.

(h) The board may authorize funding up to ten thousand dollars ($10,000) without a written agreement to address a drinking water emergency.

(i) Notwithstanding Section 11019 of the Government Code, the board may make advance payments, as necessary to implement the purposes of this chapter, except that an advance payment for construction shall not exceed 25 percent of the total amount of construction funding provided by the board for a project.

(j) Contracts pursuant to this section are exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and Section 4526 of the Government Code, and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.

SECTION 1.SEC. 2.

 Section 116902 of the Health and Safety Code is amended to read:

116902.

 For the purposes of this chapter, the following definitions apply:

(a) “Board” means the State Water Resources Control Board.

(b) “Community water system” has the same meaning as defined in Section 116275.

(c) “Public water system” has the same meaning as defined in Section 116275.

(d) “Residential service” means water service to a residential connection that includes single-family residences, multifamily residences, mobilehomes, including, but not limited to, mobilehomes in mobilehome parks, or farmworker housing.

SEC. 2.SEC. 3.

 Section 116904 of the Health and Safety Code is repealed.

SEC. 3.SEC. 4.

 Section 116904 is added to the Health and Safety Code, to read:

116904.

 A community water system that supplies water to 200 service connections or fewer shall comply with this chapter on and after August 1, 2024.

SEC. 4.SEC. 5.

 Section 116906 of the Health and Safety Code is amended to read:

116906.

 (a) A community water system that serves 200 or more service connections shall have a written policy on discontinuation of residential service for nonpayment available in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by at least 10 percent of the people residing in its service area. A community water system that serves fewer than 200 service connections shall have a written policy on disconnection of residential service for nonpayment available in English, any language spoken by at least 10 percent of the people residing in its service area, and, upon request of a customer, any of the languages listed in Section 1632 of the Civil Code. Nothing in this section shall be construed to prevent a community water system from making the policy available in any other language. The policy shall include all of the following:

(1) A plan for deferred or reduced payments.

(2) Alternative payment schedules.

(3) A formal mechanism for a customer to contest or appeal a bill.

(4) A telephone number for a customer to contact to discuss options for averting discontinuation of residential service for nonpayment.

(b) The policy shall be available on the community water system’s internet website, if an internet website exists. If an internet website does not exist, the community water system shall provide the policy to customers in writing, upon request.

(c) (1) The board may enforce the requirements of this section pursuant to Sections 116577, 116650, and 116655. The provisions of Section 116585 and Article 10 (commencing with Section 116700) of Chapter 4 apply to enforcement undertaken for a violation of this section.

(2) All moneys collected pursuant to this subdivision shall be deposited in the Safe Drinking Water Account established pursuant to Section 116590.

SEC. 5.SEC. 6.

 Section 116908 of the Health and Safety Code is amended to read:

116908.

 (a) (1) (A) A community water system shall not discontinue residential service for nonpayment until a payment by a customer has been delinquent for at least 60 days. No fewer than seven business days before discontinuation of residential service for nonpayment, a community water system shall contact the customer named on the account by telephone or written notice.

(B) When the community water system contacts the customer named on the account by telephone pursuant to subparagraph (A), it shall offer to provide in writing to the customer the community water system’s policy on discontinuation of residential service for nonpayment. A community water system shall offer to discuss options to avert discontinuation of residential service for nonpayment, including, but not limited to, alternative payment schedules, deferred payments, minimum payments, procedures for requesting amortization of the unpaid balance, and petition for bill review and appeal.

(C) When the community water system contacts the customer named on the account by written notice pursuant to subparagraph (A), the written notice of payment delinquency and impending discontinuation shall be mailed to the customer of the residence to which the residential service is provided. If the customer’s address is not the address of the property to which residential service is provided, the notice also shall be sent to the address of the property to which residential service is provided, addressed to “Occupant.” The notice shall include, but is not limited to, all of the following information in a clear and legible format:

(i) The customer’s name and address.

(ii) The amount of the delinquency.

(iii) The date by which payment or arrangement for payment is required in order to avoid discontinuation of residential service.

(iv) A description of the process to apply for an extension of time to pay the delinquent charges.

(v) A description of the procedure to petition for bill review and appeal.

(vi) A description of the procedure by which the customer may request a deferred, reduced, or alternative payment schedule, including an amortization of the delinquent residential service charges, consistent with the written policies provided pursuant to subdivision (a) of Section 116906.

(2) If the community water system is unable to make contact with the customer or an adult occupying the residence by telephone, and written notice is returned through the mail as undeliverable, the community water system shall make a good faith effort to visit the residence and leave, or make other arrangements for placement in a conspicuous place of, a notice of imminent discontinuation of residential service for nonpayment and the community water system’s policy for discontinuation of residential service for nonpayment.

(b) If an adult at the residence appeals the water bill to the community water system or any other administrative or legal body to which that appeal may be lawfully taken, the community water system shall not discontinue residential service while the appeal is pending.

SEC. 6.SEC. 7.

 Section 116910 of the Health and Safety Code is amended to read:

116910.

 (a) A community water system shall not discontinue residential service for nonpayment if all of the following conditions are met:

(1) The customer, or a tenant of the customer, submits to the community water system the certification of a primary care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of residential service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided.

(2) The customer demonstrates that they are financially unable to pay for residential service within the community water system’s normal billing cycle. The customer shall be deemed financially unable to pay for residential service within the community water system’s normal billing cycle if any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than 200 percent of the federal poverty level.

(3) The customer is willing to enter into an amortization agreement, alternative payment schedule, or a plan for deferred or reduced payment, consistent with the written policies provided pursuant to subdivision (a) of Section 116906, with respect to all delinquent charges.

(b) (1) If the conditions listed in subdivision (a) are met, the community water system shall offer the customer one or more of the following options:

(A) Amortization of the unpaid balance.

(B) Participation in an alternative payment schedule.

(C) A partial or full reduction of the unpaid balance financed without additional charges to other ratepayers.

(D) Temporary deferral of payment.

(2) The community water system may choose which of the payment options described in paragraph (1) the customer undertakes and may set the parameters of that payment option. Ordinarily, the repayment option offered should result in repayment of any remaining outstanding balance within 12 months. A community water system may grant a longer repayment period if it finds the longer period is necessary to avoid undue hardship to the customer based on the circumstances of the individual case.

(3) Residential service may be discontinued no sooner than five business days after the community water system posts a final notice of intent to disconnect service in a prominent and conspicuous location at the property under either of the following circumstances:

(A) The customer fails to comply with an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges for 60 days or more.

(B) While undertaking an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges, the customer does not pay their current residential service charges for 60 days or more.

SEC. 7.SEC. 8.

 Section 116912 of the Health and Safety Code is amended to read:

116912.

 A community water system that discontinues residential service for nonpayment shall provide the customer with information on how to restore residential service.

SEC. 8.SEC. 9.

 Section 116914 of the Health and Safety Code is amended to read:

116914.

 (a) For a residential customer who demonstrates to a community water system household income below 200 percent of the federal poverty line, the community water system shall do both of the following:

(1) Set a reconnection of service fee for reconnection during normal operating hours at fifty dollars ($50), but not to exceed the actual cost of reconnection if it is less. Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. For the reconnection of residential service during nonoperational hours, a community water system shall set a reconnection of service fee at one hundred fifty dollars ($150), but not to exceed the actual cost of reconnection if it is less. Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021.

(2) Waive interest charges on delinquent bills once every 12 months.

(b) A community water system shall deem a residential customer to have a household income below 200 percent of the federal poverty line if any member of the household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than 200 percent of the federal poverty level.

SEC. 9.SEC. 10.

 Section 116916 of the Health and Safety Code is amended to read:

116916.

 (a) This section applies if there is a landlord-tenant relationship between the residential occupants and the owner, manager, or operator of the dwelling.

(b) If a community water system furnishes individually metered residential service to residential occupants of a detached single-family dwelling, a multiunit residential structure, mobilehome park, or permanent residential structure in a labor camp as defined in Section 17008, and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the community water system shall make every good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least 10 days prior to the termination. The written notice shall further inform the residential occupants that they have the right to become customers, to whom the service will then be billed, without being required to pay any amount which may be due on the delinquent account.

(c) The community water system is not required to make service available to the residential occupants unless each residential occupant agrees to the terms and conditions of service and meets the requirements of law and the community water system’s rules and tariffs. However, if one or more of the residential occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the community water system, or if there is a physical means legally available to the community water system of selectively terminating service to those residential occupants who have not met the requirements of the community water system’s rules and tariffs, the community water system shall make service available to those residential occupants who have met those requirements.

(d) If prior service for a period of time is a condition for establishing credit with the community water system, residence and proof of prompt payment of rent or other credit obligation acceptable to the community water system for that period of time is a satisfactory equivalent.

(e) Any residential occupant who becomes a customer of the community water system pursuant to this section whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic payment each payment period all reasonable charges paid to the community water system for those services during the preceding payment period.

(f) In the case of a detached single-family dwelling, th community water system may do any of the following:

(1) Give notice of termination at least seven days prior to the proposed termination.

(2) In order for the amount due on the delinquent account to be waived, require an occupant who becomes a customer to verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code.

SEC. 10.SEC. 11.

 Section 116918 of the Health and Safety Code is amended to read:

116918.

 A community water system shall report the number of annual discontinuations of residential service for inability to pay on the community water system’s internet website, if an internet website exists, and to the board. The board shall post on its internet website the information reported.

SEC. 11.SEC. 12.

 Section 116920 of the Health and Safety Code is amended to read:

116920.

 (a) The Attorney General, at the request of the board or upon the Attorney General’s own motion, may bring an action in state court to restrain by temporary or permanent injunction the use of any method, act, or practice declared in this chapter to be unlawful.

(b) For a community water system regulated by the Public Utilities Commission, the commission may bring an action in state court to restrain by temporary or permanent injunction the use by a community water system regulated by the commission of any method, act, or practice declared in this chapter to be unlawful.

SEC. 12.SEC. 13.

 Section 116922 of the Health and Safety Code is amended to read:

116922.

 All written notices required under this chapter shall be provided in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by 10 percent or more of the customers in the community water system’s service area.

SEC. 13.SEC. 14.

 Section 116926 of the Health and Safety Code is amended to read:

116926.

 This chapter does not apply to the termination of a service connection by a community water system due to an unauthorized action of a customer.