AB-1945 • 2026

Municipal utility districts: termination of service.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hadwick
Last action: 2026-04-23
Official status: From committee: Do pass. To Consent Calendar. (Ayes 18. Noes 0.) (April 22).
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how districts will implement these new options.

Municipal Utility Districts: Rules for Stopping Service

This law allows smaller utility districts (those with fewer than 100,000 customers) to offer electronic notice of overdue bills and a prepay option for electricity service.

What This Bill Does

Allows smaller utility districts (those with fewer than 100,000 customers) to let people get notice of overdue bills by email instead of mail.
Lets these small districts give their customers the choice to pay for electricity before using it, called a prepay option.
Requires the district to tell customers how they can switch back to regular billing if they use the prepay plan.
Needs the district to send automatic alerts when a customer's account balance is low and might be cut off soon.

Who It Names or Affects

Customers of small utility districts who get electricity service.
Utility districts that serve fewer than 100,000 customers.

Terms To Know

Prepay option: A way for customers to pay for electricity before using it.
Notice of delinquency: A warning sent when someone hasn't paid their bill and is behind on payments.

Limits and Unknowns

The law only applies to utility districts with fewer than 100,000 customers.
It does not change the requirement for notice before stopping service for regular billing customers.
Details about how these new options will work are left up to each district.

Bill History

2026-04-23 California Legislative Information
From committee: Do pass. To Consent Calendar. (Ayes 18. Noes 0.) (April 22).
2026-04-20 California Legislative Information
Re-referred to Com. on U. & E.
2026-04-16 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2026-04-16 California Legislative Information
From committee: Do pass and re-refer to Com. on U. & E. (Ayes 10. Noes 0.) (April 15). Re-referred to Com. on U. & E.
2026-03-17 California Legislative Information
Re-referred to Com. on L. GOV.
2026-03-16 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
2026-03-02 California Legislative Information
Referred to Com. on L. GOV.
2026-02-14 California Legislative Information
From printer. May be heard in committee March 16.
2026-02-13 California Legislative Information
Read first time. To print.

Official Summary Text

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
furnishing electrical service to less than 100,000 customers
to offer customers the option of electronically receiving the required notice of delinquency, as specified. The bill would
also
authorize
those
districts
furnishing service to fewer than 100,000 customers
to offer customers a prepay
option
option, as defined,
for electrical service if certain conditions are
met.
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 notice requirement before termination of residential service of a
customer does not apply to customers participating in the prepay option.

Current Bill Text

Read the full stored bill text

Download Bill PDF