Existing law 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 water service for nonpayment until a payment by a customer has been delinquent for at least 60 days. Existing law requires an urban and community water system to have a written policy on discontinuation of residential service for nonpayment, including, among other things, specified options for addressing the nonpayment. Existing law requires an urban and community water system to provide notice of that policy to customers, as provided.
This bill would apply those provisions, on and after July 1, 2022, to a very small community water system, defined as a public water system that supplies water to 200 or fewer service connections used by year long residents. The bill would require the written policy on discontinuation of residential service for nonpayment to include an arrearage management plan, as specified, and, for those systems that provide water use audits or have the capacity to do so, to include a water use audit offered at no additional charge to low-income households.
The bill would require the State Water Resources Control Board to provide technical assistance to very small community water systems, as appropriate, to assist with compliance with these requirements and to establish a bridge loan program to assist very small community water systems that may suffer revenue loss or delayed collection while complying with these requirements. The bill would also require the board to develop a template for a written policy on discontinuation of residential service for nonpayment, on or before September 1, 2022, to aid very small community water systems in complying with the requirement to have a written policy on discontinuation of residential service for nonpayment.
Existing law prohibits an urban and community water system from discontinuing residential service for nonpayment if certain conditions are met, including that the customer or a tenant submits certification 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.
This bill would revise the conditions under which urban and community water systems and very small community water systems are prohibited from discontinuing residential service for nonpayment. The bill would prohibit these systems from discontinuing residential service for nonpayment during a state or local emergency when the area of the declared state or local emergency encompasses the customer's residence, unless the entity declaring the emergency finds that the emergency will not impact the customers' ability to pay for residential service. The bill would authorize a customer, or tenant of the customer, to submit in writing, under penalty of perjury, specified information that would prevent the discontinuation of water services. By expanding the scope of the crime of perjury, this bill would create a state-mandated local program. The bill would prohibit these systems from discontinuing residential water service for nonpayment until a payment by a customer has been delinquent for at least 90, rather than 60, days or the total amount of the delinquency, exclusive of late charges and interest, is at least $250. The bill would also prohibit these systems from discontinuing residential water service for nonpayment to a master-metered multifamily residence with at least 4 units or to a master-metered mobilehome park.
Existing law requires an urban and community water system to impose specified fees for reconnection of service for customers with a household income below 200% of the federal poverty line.
This bill would instead require an urban and community water system and very small community water system to waive fees for disconnection and reconnection of service for those customers, as specified.
The bill would require the Public Utilities Commission, by January 1, 2023, to consider whether to establish a pilot program for an arrearage management plan program to be offered by urban and community water systems regulated by the commission to eligible low-income customers who have been with the water system for at least 6 months and who have an arrearage of payment of their water service bill meeting a specified threshold. The bill would require that if the commission establishes a pilot program for an arrearage management plan, the commission provide an evaluation of the program by no later than 3 years after the commencement of the program and post that evaluation on its internet website. The bill would require the commission to terminate the pilot program by no later than 4 years after the commencement of the program if the evaluation of the program determines it is not in the interest of all ratepayers. The bill would require an urban and community water system not regulated by the commission to, by January 1, 2023, or during its next rate study, whichever comes first, determine whether it may offer an arrearage management plan to aid low-income residential customers with household income below 200% of the federal poverty line with high arrearages for water or wastewater service without using ratepayer funds from customers who are not enrolled in the arrearage management plan, and would authorize the urban and community water system to consider specified criteria in evaluating whether it may offer an arrearage management plan. The bill would also require the consideration of specified actions if an urban and community water system determines that it may not offer an arrearage management plan.
Existing law authorizes the Attorney General to enforce the requirements imposed on urban and community water systems in connection with discontinuing residential service for nonpayment by seeking an injunction, as specified.
This bill would additionally authorize the board to issue an order to an urban and community water system or very small community water system to enforce these requirements, or to seek an injunction, as specified.
Existing law requires an urban and community water system or very small community water system to report annually the number of discontinuations of residential service for inability to pay, as specified, on the water system's internet website, if an internet website exists, and to the State Water Resources Control Board.
This bill would require an urban and community water system to report certain information to the board during the reporting year that it completes a specified evaluation. The bill would require, by January 1, 2024, the board to complete a report to the Legislature on arrearage management plans that includes whether and to what extent urban and community water systems have offered arrearage management plans, any identified barriers, any identified alternatives, and all available information regarding reduction in shutoffs and revenue impacts.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.

Statutes affected:
SB223: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC
01/14/21 - Introduced: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC
04/05/21 - Amended Senate: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC
04/20/21 - Amended Senate: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC
05/03/21 - Amended Senate: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC
SB 223: 116902 HSC, 116904 HSC, 116906 HSC, 116908 HSC, 116910 HSC, 116912 HSC, 116914 HSC, 116916 HSC, 116918 HSC, 116920 HSC, 116922 HSC, 116926 HSC