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 Bill Text - AB-1945 Municipal utility districts: termination of service.

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 |Add To My Favorites |Track Bill | Version: 06/25/26 - Amended Senate
 04/16/26 - Amended Assembly
 03/16/26 - Amended Assembly
 02/13/26 - Introduced

 AB-1945 Municipal utility districts: termination of service.(2025-2026)

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 Date Published: 06/25/2026 09:00 PM

AB1945:v96#DOCUMENTBill Start

 Amended
 IN 
 Senate
 June 25, 2026

 Amended
 IN 
 Assembly
 April 16, 2026

 Amended
 IN 
 Assembly
 March 16, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1945

Introduced by Assembly Member Hadwick
(Principal coauthor: Senator Dahle)
(Coauthor: Assembly Member Gallagher)

February 13, 2026

An act to amend Section 12823.1 of, and to add Section 12823.2 to, the Public Utilities Code, relating to municipal utility districts.

LEGISLATIVE COUNSEL'S DIGEST

AB 1945, as amended, Hadwick.
 Municipal utility districts: termination of service.

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.

This bill would authorize districts to offer customers the option of electronically receiving the required notice of delinquency, as specified. The bill would authorize districts furnishing service to fewer than 100,000 customers to offer residential customers a prepay option, as defined, for electrical service if
 certain conditions are met, including, among other things, that the district provides the customer with information on returning to standard billing and issues automated low-balance alerts to the customer before suspending the customer’s electrical service, as provided. The bill would specify that the requirement to provide a notice requirement before termination of residential service of a customer delinquency does not apply to customers participating in the prepay option.

Digest Key

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

Bill Text

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

SECTION 1.

 Section 12823.1 of the Public Utilities Code is amended to read:

12823.1.

 (a) 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 5 days after the mailing of the notice.

(b) 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.

(c) 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.

(d) (1) Every notice of termination of service pursuant to subdivision (a) shall include all of the following information:

(A) The name and a