AB 404

Under current law, a municipal utility may collect arrearages for utility service

provided to lots or parcels of real estate by providing, on October 15, a written notice

of payment due to the owner or occupant of the real estate. The notice must specify

the amount of the arrearage and any penalty and must state the following: 1) that,

if payment is not received by November 1, an additional penalty will be assessed; and

2) that, if payment is not received by November 15, the arrearage amount and any

penalties will become a lien on the property that will be collected as a tax on the

property.

Also under current law, if a municipal utility provides electric or water service

to a rental dwelling unit, the municipal utility may use the arrearage collection

procedure described above only if the municipal utility follows certain additional

procedures for notifying both the owner and the tenant about any payments that are

past due. In addition, the municipal utility may use the arrearage collection

procedure only if the owner of the rental property provides the municipal utility with

written notification of the name and address of the owner, as well as of the tenant

who is responsible for paying for the service. Also, if requested by the municipal

utility, the owner must provide the municipal utility with a copy of the rental or lease

agreement in which the tenant assumes responsibility for payment of utility charges.

This bill prohibits a municipal utility that provides electric or water service to

a rental dwelling unit from using the arrearage collection procedure described above,

but only if the owner has provided the municipal utility with written notification of

the name and address of the owner, as well as of the tenant who is responsible for

paying for the service. A municipal utility may also request a copy of the rental or

lease agreement in which the tenant assumes responsibility for payment of utility

charges. However, after the owner has provided written notice of the owner's and

tenant's names and addresses, the municipal utility may not use the arrearage

collection procedure.