Senate Bill 998 (SB 998) was adopted by the State of California in 2018, adding Chapter 6, commencing with Section 116900, of Part 12 of Division 104 of the California Health & Safety Code establishing rules governing the discontinuation of residential water service by water utilities, including the City of Garden Grove. SB 998 requires the City to adopt a policy setting forth the rules governing the discontinuation of residential water service, which policy is to be effective on and after February 1, 2020. 

SB 998 among other things requires:

• Water providers have a written policy on discontinuation of services;
• Prohibit discontinuance until accounts are at least 60 days delinquent;
• Notify customers seven business days  prior to discontinuing water service;

• Prohibit discontinuance under circumstance of posing a serious threat to the health and safety of a resident;
• Post the new shut-off policy to the City’s website (translated into five specific languages);
• Create multiple new forms, including new delinquent notice, and update phone notification script; and
• Annually report the number of shut-offs to the State Water Resources Control Board and on the City’s website. 

The proposed policy covers the following areas:

• Discontinuation of water service for nonpayment;
• Procedures to contest or appeal a bill;
• Extension and other alternative payment arrangements;
• Specific programs for low-income customers;
• Procedures for occupants or tenants to become customers of the City;
• Discontinuation of water service for other customer violations; and
• Fees and charges incurred.

The Water Fund is anticipated to incur additional expenses related to the implementation of SB 998 shut-off policy (i.e. translation to five languages, additional mailing, supplies, and postage). The impact to the water service revenue is unknown at this point.  Further review of the Water Fund budget will be conducted after the new policy is implemented.