Existing law authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts certain acts, including, diverting or causing to be diverted, utility services by any means whatsoever. Existing law creates a rebuttable presumption that there is violation of these provisions if, on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, certain actions occur, including that there is an instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

This bill would add to the list of acts for which a utility may bring a civil cause of action under these circumstances to include tampering with a fire hydrant, fire hydrant meter, or fire detector check, or connecting to, diverting water from, or causing water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant, except as provided. The bill would also expand the rebuttable presumption for a violation of these provisions to include, among other things, if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.

Existing law authorizes the legislative body of a local agency, as defined, that provides water services to adopt an ordinance that prohibits water theft, as defined, and makes a violation of the ordinance subject to an administrative fine or penalty, as specified. Existing law sets forth a schedule of fines for a violation of an ordinance adopted pursuant to these provisions, including, if the violation is committed via meter tampering, a fine not exceeding $1,300 for a third or additional violation of the same ordinance within one year of the first violation, and for a violation of all other forms of water theft, a fine not exceeding $3,000 for a third or additional violation of the same ordinance within one year.

This bill would revise those fines to apply to the third or additional violation without regard to whether the violation occurred within one year of the first violation.

This bill would authorize a legislative body of a local agency, as defined, that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, as defined, subject to an administrative fine or penalty, as specified. The bill would set forth a schedule of fines for a violation of the ordinance. The bill would prohibit a local agency from imposing a fine for the same offense under both an ordinance adopted by a local agency pursuant to these provisions that prohibits unauthorized connection to a fire hydrant and an ordinance adopted by the local agency pursuant to the provisions described above that prohibits water theft.

Existing law authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts certain acts, including, diverting or causing to be diverted, utility services by any means whatsoever. Existing law creates a rebuttable presumption that there is violation of these provisions if, on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, certain actions occur, including that there is an instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

This bill would add to the list of acts for which a utility may bring a civil cause of action under these circumstances to include tampering with a fire hydrant, fire hydrant meter, or fire detector check, or connecting to, diverting water from, or causing water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant, except as provided. The bill would also expand the rebuttable presumption for a violation of these provisions to include, among other things, if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.

Existing law authorizes the legislative body of a local agency, as defined, that provides water services to adopt an ordinance that prohibits water theft, as defined, and makes a violation of the ordinance subject to an administrative fine or penalty, as specified. Existing law sets forth a schedule of fines for a violation of an ordinance adopted pursuant to these provisions, including, if the violation is committed via meter tampering, a fine not exceeding $1,300 for a third or additional violation of the same ordinance within one year of the first violation, and for a violation of all other forms of water theft, a fine not exceeding $3,000 for a third or additional violation of the same ordinance within one year.

This bill would revise those fines to apply to the third or additional violation without regard to whether the violation occurred within one year of the first violation.

This bill would authorize a legislative body of a local agency, as defined, that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, as defined, subject to an administrative fine or penalty, as specified. The bill would set forth a schedule of fines for a violation of the ordinance. The bill would prohibit a local agency from imposing a fine for the same offense under both an ordinance adopted by a local agency pursuant to these provisions that prohibits unauthorized connection to a fire hydrant and an ordinance adopted by the local agency pursuant to the provisions described above that prohibits water theft.

Existing law authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts certain acts, including, diverting or causing to be diverted, utility services by any means whatsoever. Existing law creates a rebuttable presumption that there is violation of these provisions if, on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, certain actions occur, including that there is an instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

This bill would add to the list of acts for which a utility may bring a civil cause of action under these circumstances to include tampering with a fire hydrant, fire hydrant meter, or fire detector check, or connecting to, diverting water from, or causing water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant. hydrant, except as provided. The bill would also expand the rebuttable presumption for a violation of these provisions to include, among other things, if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.

Existing law authorizes the legislative body of a local agency, as defined, that provides water services to adopt an ordinance that prohibits water theft, as defined, and makes a violation of the ordinance subject to an administrative fine or penalty, as specified. Existing law sets forth a schedule of fines for a violation of an ordinance adopted pursuant to these provisions, including, if the violation is committed via meter tampering, a fine not exceeding $1,300 for a third or additional violation of the same ordinance within one year of the first violation, and for a violation of all other forms of water theft, a fine not exceeding $3,000 for a third or additional violation of the same ordinance within one year.

This bill would revise those fines to apply to the third or additional violation without regard to whether the violation occurred within one year of the first violation.

This bill would authorize a legislative body of a local agency, as defined, that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, as defined, subject to an administrative fine or penalty, as specified. The bill would set forth a schedule of fines for a violation of the ordinance. The bill would prohibit a local agency from imposing a fine for the same offense under both an ordinance adopted by a local agency pursuant to these provisions that prohibits unauthorized connection to a fire hydrant and an ordinance adopted by the local agency pursuant to the provisions described above that prohibits water theft.

Existing law authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts certain acts, including, diverting or causing to be diverted, utility services by any means whatsoever. Existing law creates a rebuttable presumption that there is violation of these provisions if, on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, certain actions occur, including that there is an instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

This bill would add to the list of acts for which a utility may bring a civil cause of action under these circumstances to include tampering with a fire hydrant, fire hydrant meter, or fire detector check, or diverting water, or causing water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department. or connecting to, diverting water from, or causing water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant. The bill would also expand the rebuttable presumption for a violation of these provisions to include, among other things, if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.

Existing law authorizes the legislative body of a local agency, as defined, that provides water services to adopt an ordinance that prohibits water theft, as defined, and makes a violation of the ordinance subject to an administrative fine or penalty, as specified. Existing law sets forth a schedule of fines for a violation of an ordinance adopted pursuant to these provisions, including, if the violation is committed via meter tampering, a fine not exceeding $1,300 for a third or additional violation of the same ordinance within one year of the first violation, and for a violation of all other forms of water theft, a fine not exceeding $3,000 for a third or additional violation of the same ordinance within one year.

This bill would revise those fines to apply to the third or additional violation without regard to whether the violation occurred within one year of the first violation.

This bill would authorize a legislative body of a local agency, as defined, that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, as defined, subject to an administrative fine or penalty, as specified. The bill would set forth a schedule of fines for a violation of the ordinance. The bill would prohibit a local agency from imposing a fine for the same offense under both an ordinance adopted by a local agency pursuant to these provisions that prohibits unauthorized connection to a fire hydrant and an ordinance adopted by the local agency pursuant to the provisions described above that prohibits water theft.

Existing law authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts certain acts, including, diverting or causing to be diverted, utility services by any means whatsoever. Existing law creates a rebuttable presumption that there is violation of these provisions if, on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, certain actions occur, including that there is an instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

This bill would add to the list of acts for which a utility may bring a civil cause of action under these circumstances to include tampering with a fire hydrant, fire hydrant meter, or fire detector check, or diverting water, or causing water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department. The bill would also expand the rebuttable presumption for a violation of these provisions to include, among other things, if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.

Existing law authorizes the legislative body of a local agency, as defined, that provides water services to adopt an ordinance that prohibits water theft, as defined, subject to an administrative fine or penalty, as specified. Existing law sets forth a schedule of fines for a violation of an ordinance adopted pursuant to these provisions, including, if the violation is committed via meter tampering, a fine not exceeding $1,300 for a third or additional violation of the same ordinance within one year of the first violation, and for a violation of all other forms of water theft, a fine not exceeding $3,000 for a third or additional violation of the same ordinance within one year.

This bill would revise those fines to apply to the third or additional violation without regard to whether the violation occurred within one year of the first violation.

This bill would authorize a legislative body of a local agency, as defined, that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, as defined, subject to an administrative fine or penalty, as specified. The bill would set forth a schedule of fines for a violation of the ordinance. The bill would prohibit a local agency from imposing a fine for the same offense under both an ordinance adopted by a local agency pursuant to these provisions that prohibits unauthorized connection to a fire hydrant and an ordinance adopted by the local agency pursuant to the provisions described above that prohibits water theft.

 UNFINISHED BUSINESS  

Bill No: SB 394

Author: Allen (D), et al.

Amended: 7/3/25 in Assembly

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 7-0, 3/19/25

AYES: Durazo, Choi, Arreguín, Cabaldon, Laird, Seyarto, Wiener

SENATE JUDICIARY COMMITTEE: 13-0, 4/1/25

AYES: Umberg, Niello, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Valladares, Wahab, Weber Pierson, Wiener

SENATE FLOOR: 39-0, 5/27/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Reyes

ASSEMBLY FLOOR: 72-0, 7/10/25 (Consent) - See last page for vote

SUBJECT: Water theft: fire hydrants

SOURCE: Association of California Water Agencies and Las Virgenes Municipal Water District

DIGEST:

This bill (1) allows local agencies to establish ordinances specific to water theft from hydrants, (2) modifies penalties for other water theft ordinances, and (3) adds theft from fire hydrants to provisions of existing law related to civil suits for water theft.

Assembly Amendments

Made clarifying changes.

ANALYSIS:

Existing law:

1. Authorizes the legislative body of a local agency to make any violation of any ordinance enacted by the local agency subject to an administrative fine or penalty, and set forth by ordinance the administrative procedures that govern the imposition, enforcement, collection, and administrative review by the local agencies of those fines or penalties.
2. Authorizes a local agency that provides water services to adopt an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty.
3. Establishes penalties for violation of an ordinance prohibiting water theft as follows:
   1. Meter tampering is punishable by a fine not to exceed: $130 for a first violation; $700 for a second violation within one year of the first violation; and $1,300 for a third violation and each additional violation within one year of the first violation.
   2. Any other water theft is punishable by a fine not to exceed: $1,000 for a first violation; $2,000 for a second violation within one year of the first violation; and $3,000 for a third violation and each additional violation within one year of the first violation.
4. Defines a “local agency” as a county, city, whether general law or chartered, city and county, town, school district, municipal corporation, district, political subdivision, or any board, commission or agency thereof, or other local public agency.
5. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts:
   1. Diverts, or causes to be diverted, utility services by any means whatsoever;
   2. Makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility;
   3. Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   4. Tampers with any property owned or used by the utility to provide utility services; and
   5. Uses or receives the direct benefit of all, or a portion of, the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility.
6. Establishes a rebuttable presumption that there is a violation of 5), above, if on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, there is either, or both, of the following:
   1. Any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge therefor; and
   2. Any meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services.

This bill:

1. Authorizes a utility to bring a civil action for damages against any person who tampers with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant.
2. Considers a public agency having firefighting or emergency response responsibilities during a fire, or a qualified insurance resource, to have authorization from the utility during an active fire incident, as specified.
3. Provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of 1), above.
4. Revises the existing civil penalty for a third and each subsequent violation of a local ordinance against water theft to apply any time after a second violation, not just if the violation occurred within one year of the first violation.
5. Authorizes the legislative body of a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty, as provided.
6. Punishes a violation of an ordinance adopted under 4) is punishable as follows:
   • 1. A fine not exceeding $2,500 for a first violation;
     2. A fine not exceeding $5,000 for a second violation; and
     3. A fine not exceeding $10,000 for a third violation and each additional violation.
7. Requires the local agency to adopt an ordinance that sets forth the administrative procedures governing the imposition, enforcement, collection, and administrative review by the local agency of the fines or penalties.
8. Provides that an “unauthorized connection to a fire hydrant” includes the unauthorized use of a fire hydrant, fire hydrant meter, or fire detector check.
9. Prohibits a local agency from imposing fines under this bill and existing water theft law.

Background

Responding to concerns that some water agencies lacked sufficient authority to impose fines to deter water theft, the Legislature enacted SB 427 (Eggman, Chapter 137, Statutes of 2021). SB 427 allowed, notwithstanding any other law, any local agency that provides water services to enact an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty. SB 427 requires the local agency to establish procedures for the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft, and requires the local agency to establish a process for granting a hardship waiver to reduce the amount of the fine imposed for water theft upon a showing by the responsible party that payment of the full amount of the fine would impose an undue financial burden.

Water agencies note that water theft continues, despite the ability to adopt ordinances under SB 427. This water theft often occurs through unauthorized connections to fire hydrants, which can result in large water losses in short periods of time, damage water infrastructure, and contamination of water systems. They want the Legislature to increase the penalties that can be charged for water theft from fire hydrants, as well as other types of water theft.

Comments

Purpose of this bill. According to the author, “Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a “cost of doing business” for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.”

Stronger penalties needed? State law caps violations of most local ordinances at $500 per violation after the second violation. However, violations of local building and safety codes, which can pose a direct risk to people and property, are penalized at higher rates. The implicit public policy in this fine structure is that violations that have greater potential for harm merit higher financial penalties. Water theft fines already exceed the rates that are charged for other violations of local ordinances—even those that pose a direct risk to people and property. SB 394 goes further in two ways:

1. First, the existing fines for violations of building and safety codes reset after one year, so that a subsequent violation in the next year is fined at the lowest rate ($130), even if the same person has violated the law repeatedly in previous years. Existing water theft penalties follow this same pattern. SB 394 removes the requirement that the violations occurred in the same year for third and subsequent violations, so that those violations continue to be penalized at the highest rate.
2. Second, current law defines water theft broadly to include any unauthorized connection to property owned or used by the utility, which includes fire hydrants. Accordingly, utilities can already punish water theft from fire hydrants, but they are bound by the fine limits in existing water theft law. SB 394 establishes an even higher tier of fines for tampering with a fire hydrant that are more than double the amount of other water theft violations, topping out at $10,000 per violation for three or more violations. Additionally—unlike existing water theft ordinances—SB 394 does not require that the local agency adopt a process for granting hardship waivers to individuals that don’t have the ability to pay the fine.

These are undoubtedly significant harms to local agencies and the public at large, because ratepayers bear these costs. On the other hand, there are many violations of local ordinances that have the potential for serious consequences that are penalized at lower rates. For example, the 2016 Ghost Ship fire in Oakland resulted in the deaths of 36 people, but fines for code violations similar to those that led to the conflagration top out at $1,300—thousands of dollars less than the highest penalty for water theft from a hydrant. Given that the Legislature has not recently raised the fine amounts for code violations that endanger life safety, is an increase in the fines for water theft as proposed by this bill is justified?

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 7/12/25)

Association of California Water Agencies (Co-Source)

Las Virgenes Municipal Water District (Co-Source)

Aromas Water District

Beaumont-cherry Valley Water District

Bella Vista Water District

Burbank/Burbank Redevelopment Agency; City of

California Chamber of Commerce

California Contract Cities Association

California Fire Chiefs Association

California Municipal Utilities Association

California Special Districts Association

California Water Association

California-Nevada Section, American Water Works Association

Calleguas Municipal Water District

City of Agoura Hills

City of Fairfield

City of Hidden Hills

City of Norwalk

City of Roseville

City of Sacramento

City of Thousand Oaks

Coachella Valley Water District

Coastside County Water District

Community Water Systems Alliance

Crescenta Valley Water District

Crestline-lake Arrowhead Water Agency

Cucamonga Valley Water District

Desert Water Agency

East Bay Municipal Utility District

East Valley Water District

Eastern Municipal Water District

El Dorado Irrigation District

Elk Grove Water District

Elsinore Valley Municipal Water District

Fire Districts Association of California

Foothill Municipal Water District

Helix Water District

Inland Empire Utilities Agency

Irvine Ranch Water District

Kinneloa Irrigation District

Lakeside Water District

League of California Cities

Mendocino County Russian River Flood Control & Water Conservation

Mesa Water District

Metropolitan Water District of Southern California

Mid-peninsula Water District

Mission Springs Water District

Monte Vista Water District

Monterey Peninsula Water Management District

Orchard Dale Water District

Padre Dam Municipal Water District

Paradise Irrigation District

Pinyon Pines County Water District

Placer County Water Agency

Rancho California Water District

Rio Linda Elverta Community Water District

Rosamond Community Services District

Rural County Representatives of California

San Gabriel Valley Water Association

San Juan Water District

Santa Clarita Valley Water Agency

Santa Fe Irrigation District

Santa Margarita Water District

Scotts Valley Water District

Three Valleys Municipal Water District

Tuolumne Utilities District

Upper San Gabriel Valley Municipal Water District

Utica Water and Power Authority

Valley Center Municipal Water District

West Valley Water District

Western Canal Water District

Western Municipal Water District

OPPOSITION: (Verified 7/12/25)

None received

ASSEMBLY FLOOR: 72-0, 7/10/25

AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur

NO VOTE RECORDED: Alanis, Bauer-Kahan, Carrillo, Flora, Gallagher, Gipson, Rivas

Prepared by: Anton Favorini-Csorba / L. GOV. / (916) 651-4119

7/14/25 9:29:56

**** END ****

Date of Hearing: July 1, 2025

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

SBPCA Bill Id:SB 394

Author:(Allen) – As Amended Ver:June 9, 2025

Proposed consent (As Proposed to be Amended)

SENATE VOTE: 39-0

SUBJECT: Water theft: fire hydrants

KEY ISSUE: should public and private water utilities be authorized to file a civil action against a person who diverts water by tampering with a fire hydrant, fire hydrant meter, or fire detector check?

SYNOPSIS

California’s water resources are a scarce and precious commodity that must be conserved for use by all Californians. Unfortunately, as scarcity is driving up the cost of water service in this state, water theft is becoming a growing problem. Although water theft is a misdemeanor under existing law and potentially exposes the thief to fines imposed by local agencies, these fines can be as low as $130 per violation. The author and proponents of this measure contend that a fine that is less than the monthly water bill for an average single family home in California is hardly a deterrent.

This bill would combat water theft in two ways. First, the bill expands existing authority granted to utility providers to file a civil action related to theft of utility services to include the unauthorized diversion of water from a fire hydrant. Second, this bill authorizes a new statutory scheme for the local agencies operating a water utility to impose enhanced administrative penalties for water theft or diversion from a fire hydrant. These penalties are significantly higher than the $130 provided under existing law.

This non-controversial bill is co-sponsored by the Association of California Water Agencies and the Las Virgenes Municipal Water District and is supported by dozens of local governments and water utilities. The proponents highlight the need for greater deterrence against water theft. This measure has no known opposition and was previously heard and approved by the Committee on Local Government unanimously.

SUMMARY: Authorizes a utility to commence a civil action against a person who diverts water by tampering with a fire hydrant, fire hydrant meter, or fire detector check. Specifically, this bill:

1. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant.
2. Provides that notwithstanding 1), a public agency having firefighting or emergency response responsibilities during a fire, or a Qualified Insurance Resource, as defined, with approval from incident command or the authority having jurisdiction over the active fire incident, is deemed to have authorization from the utility that owns the fire hydrant during an active fire incident to divert water.
3. Adopts a rebuttable presumption that a violation of 1) has occurred if a person tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water.
4. Authorizes the legislative body of a local agency that provides retail water services, to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty.
5. Requires the ordinance adopted pursuant to 4) to establish the administrative procedures governing the imposition, enforcement, collection, and administrative review by the local agency of the administrative fines or penalties for water theft committed via the unauthorized connection to a fire hydrant.
6. Authorizes an ordinance established pursuant to 4) to impose the following penalties:
   1. A fine not exceeding two thousand five hundred dollars ($2,500) for a first violation;
   2. A fine not exceeding five thousand dollars ($5,000) for a second violation of the same ordinance; and
   3. A fine not exceeding ten thousand dollars ($10,000) for the third violation and each additional violation of the same ordinance.
7. Clarifies that an administrative penalties for water theft from a fire hydrant cannot be imposed in addition to penalties for water theft from another source.
8. Provides that notwithstanding 7), the penalties in this bill do not preclude any other remedies under law.
9. Adopts findings and declarations.

EXISTING LAW:

1. Authorizes a utility company to bring a cause of action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts:
   1. Diverts, or causes to be diverted, utility services by any means whatsoever;
   2. Makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility;
   3. Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   4. Tampers with any property owned or used by the utility to provide utility services; or
   5. Uses or receives the direct benefit of all, or a portion, of the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility. (Civil Code Section 1882.1.)
2. Adopts a rebuttable presumption that a violation of 1) occurred if on the premises controlled by the customer or by the person using or receiving the direct benefit of utility service, there is either, or both, of the following:
   1. Any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge therefor; or
   2. Any meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services. (Civil Code Section 1882.3.)
3. Authorizes a local agency that provides water service to adopt an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty, as specified. (Government Code Section 53069.45 (a).)
4. Authorizes fines ranging from $130 to $3,000 per violation for water theft depending on the number of violations committed. (Government Code Section 53069.45 (b).)
5. Defines “water theft” as an action to divert, tamper, or reconnect water utility services. (Government Code Section 53069.45 (d)(2).)
6. Defines “utility” as any electrical, gas, or water corporation as those terms are defined in the Public Utilities Code and includes any electrical, gas, or water system operated by any public agency. (Civil Code Section 1882 (f).)
7. Defines “qualified insurance resource” as personnel and equipment working for, or contracted by, an insurance company with a mission to mitigate risk to insured structures and operating in compliance with instruction and oversight of the incident management team of the authority having jurisdiction. (Labor Code Section 1139 (b)(1)(L).)

FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.

COMMENTS: Even when not experiencing a drought, water is a scarce resource in California that must be protected. Unfortunately, California’s water agencies note that water theft is a growing issue in the state. For example, the West Valley Water District reports losing nearly 45 to 60 million gallons of water due to theft each year. Not only does this represent the loss of critical resources, but the theft costs the agency $200,000 to $300,000 in lost revenue, costs which are then passed onto ratepayers. Despite the damage caused by water theft, existing law provides for relatively minor penalties, fines ranging from $130 to $3,000. The proponents of this bill argue new deterrents are needed to combat water theft. This bill would authorize a utility to file a civil action against a person who steals water by tampering with a fire hydrant, fire hydrant meter, or fire detector check. In support of this bill the author states:

Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a “cost of doing business” for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.

Existing law largely defers to local administrative penalties to police water theft. Municipal governments or special districts manage the utilities that provide water service to the majority of Californians. As local agencies, these utilities are authorized by existing law to establish ordinances and to impose fines and penalties for violation of those ordinances. Like all local administrative fine authority, local ordinances must adhere to the broad confines of state law. For the purpose of water theft, state law limits the amount of fines a local agency can impose to a range of $130 to $3,000 per violation, depending on the severity and frequency of the violation. Although the Penal Code, specifically Section 498, does make water theft a misdemeanor, for large water users with month bills in excess of $1,000 the low fines make water theft tempting.

This bill enhances the deterrence against water theft from fire hydrants in two critical ways. First, this bill expands utility provider’s existing authority to file a civil action related to the theft of utility services to include the ability to file suit against any person who tampers with, connects to, diverts water from, or causes water to be diverted from a fire hydrant without authorization from the utility that owns the fire hydrant. Second, this bill authorizes a new statutory scheme for the local agencies operating a water utility to impose enhanced administrative penalties for water theft or diversion from a fire hydrant. The new penalty authority permits a local agency to issue fines ranging from $2,500 to $10,000 for water theft from a fire hydrant. Much like existing statutes authorizing the administrative imposition of fines by local agencies, the bill requires the local agency to adopt a process governing the imposition, enforcement, collection, and administrative review of the fine process, thereby ensuring due process is provided to the accuse.

Proposed amendments ensure that firefighting efforts are not inadvertently targeted by this water conservation measure. This bill was previously heard in the Assembly Committee on Local Government where the author and proponents of the measure narrowed the bill to focus on water theft from fire hydrants. In doing so, however, the bill may have inadvertently opened firefighting operations to legal exposure, especially for firefighting agencies that are not part of the local government maintaining the water utility. Given that large fires frequently require mutual aid from non-local firefighting agencies and private firefighting operations, the author is proposing amendments to ensure that no firefighting operations are inadvertently impacted by this bill. Accordingly, the new subdivision (f) of Civil Code Section 1882.1 will now read:

(f) Tampers with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant. A public agency having firefighting or emergency response responsibilities during a fire, or a Qualified Insurance Resource, as defined in Labor Code Section 1139 with approval from incident command or the authority having jurisdiction over the active fire incident*, shall be considered to have authorization from the utility that owns the fire hydrant during an active fire incident.

Stakeholders indicate this language should ensure that this bill remains unopposed and does not result in any unintended consequences for first responders.

ARGUMENTS IN SUPPORT: This bill is jointly sponsored by the Association of California Water Agencies and the Las Virgenes Municipal Water District. The bill enjoys support from dozens of other water agencies and local governments. A coalition letter in support of the bill states:

Water theft takes many forms, the most egregious being water theft from fire hydrants for commercial uses. Illegal actors have been documented connecting to and filling water trucks from fire hydrants without the proper use of hydrant meters to avoid paying for water. These water trucks can hold up to 6,000 gallons of water, resulting in significant loss for water agencies. The stolen water is typically used or sold for profit for commercial purposes, such as by construction companies, landscaping companies, and water trucks selling the water to other users. Current fine amounts are not strong enough to deter this theft and may instead be seen as the cost of doing business for some bad actors.

Water theft from fire hydrants poses serious risks to public health and safety, water affordability, and water efficiency. During water theft from hydrants, contamination can occur when non-potable sources are illegally connected to a drinking water system and anti-backflow devices are not used. This cross-contamination between the water system and non-potable source connections poses a serious health risk to everyone in the system.

Further, unauthorized use of a hydrant can lead to water pressure in the system dropping which can jeopardize response to emergency situations such as fires. This potential issue is especially timely given the devastating fires in Southern California.

Illegal connections also often result in costly damage to the fire hydrant and system infrastructure that can impair the hydrant’s function. The revenue lost from water theft and the cost of damage to infrastructure as a result of theft is ultimately borne by law-abiding paying customers, having a negative impact on water affordability. Water theft also works against efforts by water districts to comply with State water use efficiency goals under the State’s newly adopted Making Conservation a California Way of Life framework.

The current penalties for water theft are an insufficient deterrent and fail to prevent this criminal activity from occurring. SB 394 recognizes and addresses these inefficiencies in existing penalties by authorizing local agencies that provide water services to adopt an ordinance with enhanced penalties specifically for water theft from a fire hydrant. The intent of this bill is to specifically deter commercial water theft, rather than residential water theft. Under SB 394, local agencies could adopt an ordinance allowing them to set fines not to exceed $2,500 for the first violation and up to $10,000 for the third and any additional violations.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of California Water Agencies (co-sponsor)

Las Virgenes Municipal Water District (co-sponsor)

Aromas Water District
Beaumont-Cherry Valley Water District
Bella Vista Water District
California Chamber of Commerce
California Contract Cities Association
California Fire Chiefs Association
California Municipal Utilities Association
California Special Districts Association
California Water Association
California-Nevada Section, American Water Works Association
Calleguas Municipal Water District
City of Agoura Hills

City of Burbank & the Burbank Redevelopment Agency
City of Fairfield
City of Hidden Hills
City of Norwalk
City of Roseville
City of Sacramento
City of Thousand Oaks
Coachella Valley Water District
Coastside County Water District
Community Water Systems Alliance
Crescenta Valley Water District
Crestline-Lake Arrowhead Water Agency
Cucamonga Valley Water District
Desert Water Agency
East Bay Municipal Utility District
East Valley Water District
Eastern Municipal Water District
El Dorado Irrigation District
Elk Grove Water District
Fire Districts Association of California
Foothill Municipal Water District
Helix Water District
Inland Empire Utilities Agency
Irvine Ranch Water District
Jurupa Community Services District
Kinneloa Irrigation District
Lakeside Water District
Las Virgenes - Triunfo Joint Powers Authority
League of California Cities
Mendocino County Russian River Flood Control & Water Conservation
Mesa Water District
Metropolitan Water District of Southern California
Mid-peninsula Water District
Mission Springs Water District
Monte Vista Water District
Monterey Peninsula Water Management District
Orchard Dale Water District
Padre Dam Municipal Water District
Paradise Irrigation District
Pinyon Pines County Water District
Placer County Water Agency
Rancho California Water District
Rio Linda Elverta Community Water District
Rosamond Community Services District
Rural County Representatives of California
San Diego County Water Authority
San Gabriel Valley Water Association
San Juan Water District
Santa Clarita Valley Water Agency
Santa Fe Irrigation District
Santa Margarita Water District
Scotts Valley Water District
Three Valleys Municipal Water District
Tuolumne Utilities District
Upper San Gabriel Valley Municipal Water District
Utica Water and Power Authority
Valley Center Municipal Water District
West Valley Water District
Western Canal Water District
Western Municipal Water District

Opposition

None on file

Analysis Prepared by: Nicholas Liedtke / JUD. / (916) 319-2334

Date of Hearing: June 18, 2025

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

SBPCA Bill Id:SB 394

Author:(Allen) – As Amended Ver:June 9, 2025

SENATE VOTE: 39-0

SUBJECT: Water theft: fire hydrants.

SUMMARY: Authorizes utilities to bring a civil action and local agencies to establish ordinances with enhanced administrative fines for water theft from a fire hydrant. Specifically, this bill:

1. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant.
2. Provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of 1), above.
3. Revises the existing civil penalty for a third and each additional violation of a local ordinance against water theft committed via meter tampering to apply any time after a second violation, not just if the violation occurred within one year of the first violation.
4. Revises the existing civil penalty for a third and each additional violation of a local ordinance against all other forms of water theft to apply any time after a second violation, not just if the violation occurred within one year of the first violation.
5. Authorizes the legislative body of a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty, as provided.
6. Requires the local agency to adopt an ordinance that sets forth the administrative procedures governing the imposition, enforcement, collection, and administrative review by the local agency of the fines or penalties for water theft committed via the unauthorized connection to a fire hydrant.
7. Provides that water theft committed via the unauthorized connection to a fire hydrant in violation of an ordinance adopted under 5) and 6), above, is punishable as follows:
8. A fine not exceeding $2,500 for a first violation;
9. A fine not exceeding $5,000 for a second violation; and,
10. A fine not exceeding $10,000 for a third violation and each additional violation of the same ordinance.
11. Provides that an “unauthorized connection to a fire hydrant” includes the unauthorized use of a fire hydrant, fire hydrant meter, or fire detector check.
12. Prohibits a local agency from imposing fines for the same offense under both 7), above, and existing law that establishes fines for water theft, as specified.
13. Makes related findings and declarations.

EXISTING LAW:

1. Authorizes the legislative body of a local agency to make any violation of any ordinance enacted by the local agency subject to an administrative fine or penalty, and set forth by ordinance the administrative procedures that govern the imposition, enforcement, collection, and administrative review by the local agencies of those fines or penalties. The administrative procedures must provide a reasonable period of time for a person to correct or remedy a violation prior to the imposition of fines or penalties, when the violation pertains to building, plumbing, electrical, or other similar structural or zoning issues that do not create an immediate danger to health or safety. (Government Code § 53069.4(a).)
2. Provides that any person who, with intent to obtain for himself or herself utility services without paying the full lawful charge thereof, or with intent to enable another person to do so, or with intent to deprive any utility of any part of the full lawful charge for utility services it provides, commits, authorizes, solicits, aids, or abets any of the following is guilty of a misdemeanor:
   1. Diverts or causes to be diverted utility services, by any means;
   2. Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   3. Tampers with any property owned by or used by the utility to provide utility services;
   4. Makes or causes to be made any connection with or reconnection with property owned or used by the utility to provide utility services without the authorization or consent of the utility; and,
   5. Uses or receives the direct benefit of all or a portion of utility services with knowledge or reason to believe that the diversion, tampering, or unauthorized connection existed at the time of that use, or that the use or receipt was otherwise without the authorization or consent of the utility. (Penal Code § 498 (b).)
3. Authorizes a local agency that provides water services to adopt an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty.
   1. Violation of an ordinance prohibiting water theft via meter tampering is punishable by a fine not to exceed: $130 for a first violation; $700 for a second violation within one year of the first violation; and $1,300 for a third violation and each additional violation within one year of the first violation;
   2. Violation of any other ordinance prohibiting water theft is punishable by a fine not to exceed: $1,000 for a first violation; $2,000 for a second violation within one year of the first violation; and $3,000 for a third violation and each additional violation within one year of the first violation. (Government Code § 53069.45)
4. Defines a “local agency” as a county, city, whether general law or chartered, city and county, town, school district, municipal corporation, district, political subdivision, or any board, commission or agency thereof, or other local public agency. (Government Code, § 54951.)
5. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts:
   1. Diverts, or causes to be diverted, utility services by any means whatsoever;
   2. Makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility;
   3. Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   4. Tampers with any property owned or used by the utility to provide utility services; and,
   5. Uses or receives the direct benefit of all, or a portion of, the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility. (Civil Code § 1882.1.)
6. Provides there is a rebuttable presumption that there is a violation of 5), above, if on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, there is either, or both, of the following:
7. Any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge therefor; and
8. Any meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services. (Civil Code § 1882.3.)
9. Defines “utility” for purposes of 5) and 6), above, as any electrical, gas, or water corporation as those terms are defined in the Public Utilities Code and includes any electrical, gas, or water system operated by any public agency. (Civil Code § 1882.)

FISCAL EFFECT: None.

COMMENTS:

1. Bill Summary. This bill provides enhanced civil penalties for water theft committed via the unauthorized connection to a fire hydrant in violation of an ordinance adopted by a local agency that provides retail water services. This bill authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or connects to, diverts water from, or causes water to be diverted from, a fire hydrant without authorization from the utility that owns the fire hydrant. The bill provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of existing law.

This bill is sponsored by the Association of California Water Agencies and the Las Virgenes Municipal Water District.

1. Author’s Statement. According to the author, “Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a ‘cost of doing business’ for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.”
2. Local Ordinances. Existing law provides local agencies the authority to establish ordinances and to impose fines and penalties for violation of those ordinances. A violation of a local ordinance is a misdemeanor unless, by ordinance, it is made an infraction. Existing law outlines the following fine structure for ordinance violations that are determined to be infractions, including those for building and safety code violations, which are higher:

For building and safety code violations that are infractions, the fine can be increased to $2,500 for each additional violation of the same ordinance within two years of the first violation, if the property is a commercial property that has an existing building at the time of the violation and the violation is due to failure by the owner to remove visible refuse or failure to prohibit unauthorized use of the property.

1. Administrative Alternative. As an alternative to the court process, a local agency can make any violation of any of its ordinances subject to an administrative fine or penalty. This provision was enacted in 1995 [SB 814 (Alquist), Chapter 898, Statutes of 1995], to relieve the courts of some of these cases and offer local governments a faster, easier, and less costly means of pursuing remedies for ordinance violations.

In order to make an ordinance violation subject to an administrative fine or penalty, the local agency must adopt an ordinance specifying the administrative procedures that govern the imposition, enforcement, collection, and administrative review of the fines or penalties. A person may appeal such fines or penalties in superior court within 20 days after service of a final administrative order or decision. Local agencies must pursue a civil court proceeding to collect fines and penalties that are not secured via the administrative process.

Current law requires these administrative procedures to grant a person responsible for a continuing violation a reasonable time to remedy the violation before the local agency may impose fines or penalties when the violation pertains to building, plumbing, electrical, or other similar structural and zoning issues that do not create an immediate danger to health or safety.

1. Water Theft. SB 2053 (Killea), Chapter 1010, Statues of 1994, established “water theft” as a misdemeanor. A person can be found guilty of water theft if they commit any of the following actions without paying for utility services:
2. Divert utility services, by any means;
3. Prevent any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function;
4. Tamper with any property owned by or used by the utility to provide utility services;
5. Connect with property owned or used by the utility to provide utility services without authorization; and
6. Use or receive the direct benefit of all or a portion of utility services with knowledge or reason to believe that the diversion, tampering, or unauthorized connection existed at the time of that use, or that the use or receipt was otherwise without the authorization or consent of the utility.

If the total value of all utility services stolen is more than $950, or if the defendant has previously been convicted of an offense under this section or other similarly defined sections, then the violation is punishable with up to one year of imprisonment.

A utility can bring a civil action for damages against any person who commits or attempts water theft. Existing law creates a rebuttable presumption that there is violation of these provisions if certain actions occur, including that there is, on premises owned by the customer, a device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

1. SB 427 (Eggman) of 2021. Responding to concerns that some water agencies lacked sufficient authority to impose fines to deter water theft, the Legislature enacted SB 427 (Eggman), Chapter 137, Statutes of 2021. SB 427 allowed any local agency that provides water services to enact an ordinance that prohibits water theft and made violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty. SB 427 required the local agency to establish procedures for the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft, and required the local agency to establish a process for granting a hardship waiver to reduce the amount of the fine imposed for water theft upon a showing by the responsible party that payment of the full amount of the fine would impose an undue financial burden.

SB 427 established two sets of limits on the fines that a local agency can impose for water theft. Specifically, if the water theft is committed via meter tampering, the fines must not exceed:

1. $130 for a first violation;
2. $700 for a second violation of the same ordinance within one year of the first violation; and
3. $1,300 for the third violation and each additional violation of the same ordinance within one year of the first violation.

All other forms of water theft in violation of an ordinance adopted under SB 427 are punishable by fines of up to:

1. $1,000 for a first violation;
2. $2,000 for a second violation of the same ordinance within one year; and
3. $3,000 for each additional violation of the same ordinance within one year.
4. Arguments in Support. According to the Association of California Water Agencies and the Las Virgenes Municipal Water District, co-sponsors of this bill, “Water theft takes many forms, the most egregious being water theft from fire hydrants for commercial uses. Illegal actors have been documented connecting to and filling water trucks from fire hydrants without the proper use of hydrant meters to avoid paying for water. These water trucks can hold up to 6,000 gallons of water, resulting in significant loss for water agencies. The stolen water is typically used or sold for profit for commercial purposes, such as by construction companies, landscaping companies, and water trucks selling the water to other users. Current fine amounts are not strong enough to deter this theft and may instead be seen as the cost of doing business for some bad actors…

“Water theft from fire hydrants poses serious risks to public health and safety, water affordability, and water efficiency. During water theft from hydrants, contamination can occur when non-potable sources are illegally connected to a drinking water system and anti-backflow devices are not used. This crosscontamination between the water system and non-potable source connections poses a serious health risk to everyone in the system. Further, unauthorized use of a hydrant can lead to water pressure in the system dropping which can jeopardize response to emergency situations such as fires. This potential issue is especially timely given the devastating fires in Southern California. Illegal connections also often result in costly damage to the fire hydrant and system infrastructure that can impair the hydrant’s function. The revenue lost from water theft and the cost of damage to infrastructure as a result of theft is ultimately borne by law-abiding paying customers, having a negative impact on water affordability. Water theft also works against efforts by water districts to comply with State water use efficiency goals under the State’s newly adopted Making Conservation a California Way of Life framework.

“The current penalties for water theft are an insufficient deterrent and fail to prevent this criminal activity from occurring…”

1. Arguments in Opposition. None on file.
2. Double-Referral. This bill is double-referred to the Judiciary Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of California Water Agencies (ACWA) (co-sponsor)

Las Virgenes Municipal Water District (co-sponsor)
Aromas Water District

Beaumont-cherry Valley Water District

Bella Vista Water District

Burbank/burbank Redevelopment Agency; City of

California Chamber of Commerce

California Contract Cities Association

California Fire Chiefs Association

California Municipal Utilities Association

California Special Districts Association

California Water Association

California-nevada Section, American Water Works Association

Calleguas Municipal Water District

City of Agoura Hills

City of Fairfield

City of Hidden Hills

City of Norwalk

City of Roseville

City of Thousand Oaks

Coachella Valley Water District

Coastside County Water District

Community Water Systems Alliance

Crescenta Valley Water District

Crestline-lake Arrowhead Water Agency

Cucamonga Valley Water District

Desert Water Agency

East Bay Municipal Utility District

East Valley Water District

Eastern Municipal Water District

El Dorado Irrigation District

Elk Grove Water District

Fire Districts Association of California

Foothill Municipal Water District

Helix Water District

Inland Empire Utilities Agency

Jurupa Community Services District

Kinneloa Irrigation District

Lakeside Water District

Las Virgenes - Triunfo Joint Powers Authority

League of California Cities

Mendocino County Russian River Flood Control & Water Conservation

Mesa Water District

Metropolitan Water District of Southern California

Mid-peninsula Water District

Mission Springs Water District

Monte Vista Water District

Monterey Peninsula Water Management District

Orchard Dale Water District

Padre Dam Municipal Water District

Paradise Irrigation District

Pinyon Pines County Water District

Placer County Water Agency

Rancho California Water District

Rio Linda Elverta Community Water District

Rosamond Community Services District

Rural County Representatives of California

San Diego County Water Authority

San Gabriel Valley Water Association

San Juan Water District

Santa Clarita Valley Water Agency

Santa Fe Irrigation District

Santa Margarita Water District

Scotts Valley Water District

Three Valleys Municipal Water District

Tuolumne Utilities District

Upper San Gabriel Valley Municipal Water District

Utica Water and Power Authority

Valley Center Municipal Water District

West Valley Water District

Western Canal Water District

Western Municipal Water District

Opposition

None on file

Analysis Prepared by: Julia Mouat / L. GOV. / (916) 319-3958

 THIRD READING  

Bill No: SB 394

Author: Allen (D)

Introduced: 2/14/25

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 7-0, 3/19/25

AYES: Durazo, Choi, Arreguín, Cabaldon, Laird, Seyarto, Wiener

SENATE JUDICIARY COMMITTEE: 13-0, 4/1/25

AYES: Umberg, Niello, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Valladares, Wahab, Weber Pierson, Wiener

SUBJECT: Water theft: fire hydrants

SOURCE: Association of California Water Agencies and Las Virgenes Municipal Water District

DIGEST:

This bill allows local agencies to establish ordinances specific to water theft from hydrants, modifies penalties for other water theft ordinances, and adds theft from fire hydrants to provisions of existing law related to civil suits for water theft.

ANALYSIS:

Existing law:

1. Authorizes the legislative body of a local agency to make any violation of any ordinance enacted by the local agency subject to an administrative fine or penalty, and set forth by ordinance the administrative procedures that govern the imposition, enforcement, collection, and administrative review by the local agencies of those fines or penalties.
2. Authorizes a local agency that provides water services to adopt an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty.
3. Establishes penalties for violation of an ordinance prohibiting water theft as follows:
   1. Meter tampering is punishable by a fine not to exceed: $130 for a first violation; $700 for a second violation within one year of the first violation; and $1,300 for a third violation and each additional violation within one year of the first violation.
   2. Any other water theft is punishable by a fine not to exceed: $1,000 for a first violation; $2,000 for a second violation within one year of the first violation; and $3,000 for a third violation and each additional violation within one year of the first violation.
4. Defines a “local agency” as a county, city, whether general law or chartered, city and county, town, school district, municipal corporation, district, political subdivision, or any board, commission or agency thereof, or other local public agency.
5. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts:
   1. Diverts, or causes to be diverted, utility services by any means whatsoever;
   2. Makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility;
   3. Prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   4. Tampers with any property owned or used by the utility to provide utility services; and
   5. Uses or receives the direct benefit of all, or a portion of, the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility.
6. Establishes a rebuttable presumption that there is a violation of 5), above, if on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, there is either, or both, of the following:
   1. Any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge therefor; and
   2. Any meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services.

This bill:

1. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or diverts water, or causes water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department.
2. Provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of 1), above.
3. Revises the existing civil penalty for a third and each subsequent violation of a local ordinance against water theft to apply any time after a second violation, not just if the violation occurred within one year of the first violation.
4. Authorizes the legislative body of a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty, as provided.
5. Punishes a violation of an ordinance adopted under 4) is punishable as follows:
   • 1. A fine not exceeding $2,500 for a first violation;
     2. A fine not exceeding $5,000 for a second violation; and
     3. A fine not exceeding $10,000 for a third violation and each additional violation.
6. Requires the local agency to adopt an ordinance that sets forth the administrative procedures governing the imposition, enforcement, collection, and administrative review by the local agency of the fines or penalties.
7. Provides that an “unauthorized connection to a fire hydrant” includes the unauthorized use of a fire hydrant, fire hydrant meter, or fire detector check.
8. Prohibits a local agency from imposing fines under this bill and existing water theft law.

Background

Responding to concerns that some water agencies lacked sufficient authority to impose fines to deter water theft, the Legislature enacted SB 427 (Eggman, Chapter 137, Statutes of 2021). SB 427 allowed, notwithstanding any other law, any local agency that provides water services to enact an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty. SB 427 requires the local agency to establish procedures for the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft, and requires the local agency to establish a process for granting a hardship waiver to reduce the amount of the fine imposed for water theft upon a showing by the responsible party that payment of the full amount of the fine would impose an undue financial burden.

Water agencies note that water theft continues, despite the ability to adopt ordinances under SB 427. This water theft often occurs through unauthorized connections to fire hydrants, which can result in large water losses in short periods of time, damage water infrastructure, and contamination of water systems. They want the Legislature to increase the penalties that can be charged for water theft from fire hydrants, as well as other types of water theft.

Comments

1. Purpose of the bill. According to the author, “Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a “cost of doing business” for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.”
2. Stronger penalties needed? State law caps violations of most local ordinances at $500 per violation after the second violation. However, violations of local building and safety codes, which can pose a direct risk to people and property, are penalized at higher rates. The implicit public policy in this fine structure is that violations that have greater potential for harm merit higher financial penalties. Water theft fines already exceed the rates that are charged for other violations of local ordinances—even those that pose a direct risk to people and property. SB 394 goes further in two ways:
3. First, the existing fines for violations of building and safety codes reset after one year, so that a subsequent violation in the next year is fined at the lowest rate ($130), even if the same person has violated the law repeatedly in previous years. Existing water theft penalties follow this same pattern. SB 394 removes the requirement that the violations occurred in the same year for third and subsequent violations, so that those violations continue to be penalized at the highest rate.
4. Second, current law defines water theft broadly to include any unauthorized connection to property owned or used by the utility, which includes fire hydrants. Accordingly, utilities can already punish water theft from fire hydrants, but they are bound by the fine limits in existing water theft law. SB 394 establishes an even higher tier of fines for tampering with a fire hydrant that are more than double the amount of other water theft violations, topping out at $10,000 per violation for three or more violations. Additionally—unlike existing water theft ordinances—SB 394 does not require that the local agency adopt a process for granting hardship waivers to individuals that don’t have the ability to pay the fine.

These are undoubtedly significant harms to local agencies and the public at large, because ratepayers bear these costs. On the other hand, there are many violations of local ordinances that have the potential for serious consequences that are penalized at lower rates. For example, the 2016 Ghost Ship fire in Oakland resulted in the deaths of 36 people, but fines for code violations similar to those that led to the conflagration top out at $1,300—thousands of dollars less than the highest penalty for water theft from a hydrant. Given that the Legislature has not recently raised the fine amounts for code violations that endanger life safety, is an increase in the fines for water theft as proposed by this bill is justified?

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 4/21/25)

Association of California Water Agencies (co-source)

Las Virgenes Municipal Water District (co-source)

Bella Vista Water District

Burbank/burbank Redevelopment Agency; City of

California Fire Chiefs Association

California Municipal Utilities Association

California Special Districts Association

California Water Association

Calleguas Municipal Water District

City of Fairfield

City of Roseville

Coachella Valley Water District

Community Water Systems Alliance

Crescenta Valley Water District

Crestline-lake Arrowhead Water Agency

Cucamonga Valley Water District

Desert Water Agency

East Bay Municipal Utility District

Eastern Municipal Water District

El Dorado Irrigation District

Elk Grove Water District

Fire Districts Association of California

Foothill Municipal Water District

Helix Water District

Kinneloa Irrigation District

Lakeside Water District

League of California Cities

Mendocino County Russian River Flood Control & Water Conservation

Mesa Water District

Metropolitan Water District of Southern California

Mid-peninsula Water District

Monte Vista Water District

Orchard Dale Water District

Padre Dam Municipal Water District

Paradise Irrigation District

Placer County Water Agency

Rancho California Water District

Rosamond Community Services District

Rural County Representatives of California

San Juan Water District

Santa Clarita Valley Water Agency

Santa Fe Irrigation District

Santa Margarita Water District

Scotts Valley Water District

Three Valleys Municipal Water District

Tuolumne Utilities District

Utica Water and Power Authority

Valley Center Municipal Water District

West Valley Water District

Western Municipal Water District

OPPOSITION: (Verified 4/21/25)

None received

Prepared by: Anton Favorini-Csorba / L. GOV. / (916) 651-4119

4/23/25 16:26:29

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2025-2026 Regular Session

Bill No: SB 394 (Author:Allen)

Version: February 14, 2025

Hearing Date: April 1, 2025

Fiscal: No

Urgency: No

Consultant: AM

SUBJECT

Water theft: fire hydrants

DIGEST

This bill authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or diverts water, or causes water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department. The bill provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of existing law. The bill also provides enhanced civil penalties for water theft committed via the unauthorized connection to a fire hydrant in violation of an ordinance adopted by a local agency that provides retail water services, as specified.

EXECUTIVE SUMMARY

The author and sponsors of the bill note that water theft threatens public health and safety, water affordability, and water efficiency. They argue that existing penalties for water theft are inadequate and not an effective deterrent providing various examples of water theft and the fiscal cost of that theft to water agencies and the public (see Comment 2 below). In order to safeguard this precious natural resource, the bill seeks to provide enhanced penalties for water agencies to deter water theft from fire hydrants. The bill passed the Senate Local Government Committee on a vote of 7 to 0. The bill is sponsored by the Association of California Water Agencies (ACWA) and the Las Virgenes Municipal Water District. The bill is supported by numerous water agencies and districts, some cities, and the League of California Cities. No timely opposition was received by the Committee.

PROPOSED CHANGES TO THE LAW

Existing law:

1. Authorizes the legislative body of a local agency to make any violation of any ordinance enacted by the local agency subject to an administrative fine or penalty, and set forth by ordinance the administrative procedures that govern the imposition, enforcement, collection, and administrative review by the local agencies of those fines or penalties. The administrative procedures must provide a reasonable period of time for a person to correct or remedy a violation prior to the imposition of fines or penalties, when the violation pertains to building, plumbing, electrical, or other similar structural or zoning issues that do not create an immediate danger to health or safety. (Gov. Code, § 53069.4(a).)
2. Authorizes a local agency that provides water services to adopt an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty.
   1. Violation of an ordinance prohibiting water theft via meter tampering is punishable by a fine not to exceed: $130 for a first violation; $700 for a second violation within one year of the first violation; and $1,300 for a third violation and each additional violation within one year of the first violation.
   2. Violation of any other ordinance prohibiting water theft is punishable by a fine not to exceed: $1,000 for a first violation; $2,000 for a second violation within one year of the first violation; and $3,000 for a third violation and each additional violation within one year of the first violation. (Gov. C. § 53069.45)
3. Defines a “local agency” as a county, city, whether general law or chartered, city and county, town, school district, municipal corporation, district, political subdivision, or any board, commission or agency thereof, or other local public agency. (Gov. Code, § 54951.)
4. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts any of the following acts:
   1. diverts, or causes to be diverted, utility services by any means whatsoever;
   2. makes, or causes to be made, any connection or reconnection with property owned or used by the utility to provide utility service without the authorization or consent of the utility;
   3. prevents any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function by tampering or by any other means;
   4. tampers with any property owned or used by the utility to provide utility services; and
   5. uses or receives the direct benefit of all, or a portion of, the utility service with knowledge of, or reason to believe that, the diversion, tampering, or unauthorized connection existed at the time of the use, or that the use or receipt, was without the authorization or consent of the utility. (Civ. C. § 1882.1.)
5. Provides there is a rebuttable presumption that there is a violation of 1), above, if on premises controlled by the customer or by the person using or receiving the direct benefit of utility service, there is either, or both, of the following:
   1. any instrument, apparatus, or device primarily designed to be used to obtain utility service without paying the full lawful charge therefor; and
   2. any meter that has been altered, tampered with, or bypassed so as to cause no measurement or inaccurate measurement of utility services. (Civ. C. § 1882.3.)
6. Defines “utility” for purposes of 4) and 5), above, as any electrical, gas, or water corporation as those terms are defined in the Public Utilities Code and includes any electrical, gas, or water system operated by any public agency. (Civ. C. § 1882.)

This bill:

1. Authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or diverts water, or causes water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department.
2. Provides that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain water and without paying the full lawful charge of the water is presumed to be in violation of 1), above.
3. Revises the existing civil penalty for a third and each subsequent violation of a local ordinance against water theft to apply any time after a second violation, not just if the violation occurred within one year of the first violation.
4. Authorizes the legislative body of a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty, as provided.
   1. A violation of an ordinance adopted under 4) is punishable as follows:
      1. a fine not exceeding $2,500 for a first violation;
      2. a fine not exceeding $5,000 for a second violation; and
      3. a fine not exceeding $10,000 for a third violation and each additional violation.
   2. Requires the local agency to adopt an ordinance that sets forth the administrative procedures governing the imposition, enforcement, collection, and administrative review by the local agency of the fines or penalties.
   3. Provides that an “unauthorized connection to a fire hydrant” includes the unauthorized use of a fire hydrant, fire hydrant meter, or fire detector check.
   4. Prohibits a local agency from imposing fines under this provision and Section 53069.45 of the Government Code.

COMMENTS

1. Stated need for the bill

The author writes:

Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a “cost of doing business” for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.

1. This bill seeks to provide enhanced penalties and remedies for water theft from fire hydrants

The ACWA reports water agencies incur financial costs for both the loss of revenue from stolen water and any actions that must be taken as a result of, and to prevent, water theft.^[1] For example, the West Valley Water District reports experiencing an estimated loss of 45 to 60 million gallons of water due to theft, which is roughly the equivalent of $200,000 to $300,000 in lost revenue.^[2] The Las Virgenes Municipal Water District, a sponsor of the bill, reports an estimated loss of 22 to 45 million gallons of water due to theft, which is roughly the equivalent of $150,000 to $300,000 in lost revenue.^[3] In order to prevent theft, the Contra Costa Water District has taken several actions that they report costs upwards of $250,000 in 2021 alone. These steps include “locking hydrants in coordination with their local first responders, communications to customers, installing signage and cameras, implementing patrols, installing pressure monitoring devices, and constructing fill stations and dedicated hydrants for paying customers.”^[4] An egregious example of the effect of water theft happened in the Coachella Valley Water District where a violator admitted to accessing a hydrant illegally two to three times a week, stealing an estimated 80,000 to 100,000 gallons of water and causing water levels a two different reservoirs to drop seven feet.^[5]

In order to strengthen existing penalties for water theft from fire hydrants this bill authorizes the legislative body of a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant. Under the bill, a violation of the adopted ordinance is punishable by a fine not to exceed $2,500 for a first violation, $5,000 for a second violation, and $10,000 for a third violation and any subsequent violation. A local agency that adopts such an ordinance must also adopt an ordinance setting forth the administrative procedures governing the imposition, enforcement, and collection of the fines or penalties, including a procedure for administrative review of the fines or penalty by the local agency. The bill also prohibits a local agency from imposing fines under these provision as well as those fines authorized for water theft under Section 53069.45 of the Government Code.

Additionally, the bill authorizes a utility to bring a civil action for damages against any person who commits, authorizes, solicits, aids, abets, or attempts to tamper with a fire hydrant, fire hydrant meter, or fire detector check, or diverts water, or causes water to be diverted, from a fire hydrant with knowledge of, or reason to believe, that the diversion or unauthorized connection existed at the time of use for nonfirefighting purposes or without authorization from the appropriate water system or fire department. The bill establishes a rebuttable presumption that a person who tampers with or uses a fire hydrant, fire hydrant meter, or fire detector check without authorization to obtain the water and without paying the full lawful charge of the water is civilly liable to a utility for damages. Lastly, the bill modifies the existing civil penalty for a third or any subsequent violation of a local ordinance against water theft under Government Code Section 53069.45 to apply any time after a second violation has occurred, not just if the third or subsequent violation occurred within one year of the first violation. This will allow water agencies to more effectively punish repeat offenders and hopefully act as a stronger deterrent against repeat violations.

1. Statements in support

The Las Virgenes Municipal Water District, a sponsor of the bill, writes in support stating:

[…] Under current law, the maximum penalty for water theft from a hydrant is $1,000 for a first offense. The penalty increases to $2,000 and $3,000 for a second and third offense, but the enhanced penalties only apply if the second and third offenses are committed within 12 months of the first offense. A theft committed more than twelve months later would be treated as a first offense. Experience has shown these penalties are failing to deter water haulers from stealing water from fire hydrants for profit.

In the case of LVMWD, thefts usually occur during periods of drought where property owners, seeking to circumvent outdoor watering restrictions, purchased water from haulers who illegally tapped into fire hydrants. LVMWD has no evidence that the property owners were aware of the theft, and no action has been taken them, but the water haulers are clearly aware of the illegal nature of their actions. They possess expensive, specialized tools needed to access the fire hydrants, and they have access to commercial water trucks, all of which indicates they have professional experience and know the legal requirements.

While the financial loss to LVMWD is an obvious concern, the public safety implications are far worse. If an improperly closed fire hydrant has an air gap, to give one example, a firetruck connecting to the hydrant in an emergency can be severely damaged and unable to fight a fire until it is repaired. […]

SUPPORT

Association of California Water Agencies (sponsor)

Las Virgenes Municipal Water District (sponsor)
Bella Vista Water District

California Municipal Utilities Association

California Special Districts Association

California Water Association

Calleguas Municipal Water District

City of Fairfield

City of Roseville

Coachella Valley Water District

Community Water Systems Alliance

Crescenta Valley Water District

Crestline-Lake Arrowhead Water Agency

Cucamonga Valley Water District

Desert Water Agency

East Bay Municipal Utility District

Eastern Municipal Water District

El Dorado Irrigation District

Elk Grove Water District

Foothill Municipal Water District

Helix Water District

Kinneloa Irrigation District

Lakeside Water District

Las Virgenes - Triunfo Joint Powers Authority

Las Virgenes Municipal Water District

League of California Cities

Mendocino County Russian River Flood Control & Water Conservation

Mesa Water District

Metropolitan Water District of Southern California

Mid-Peninsula Water District

Monte Vista Water District

Orchard Dale Water District

Padre Dam Municipal Water District

Paradise Irrigation District

Placer County Water Agency

Rancho California Water District

Rosamond Community Services District

Rural County Representatives of California

San Juan Water District

Santa Clarita Valley Water Agency

Santa Fe Irrigation District

Santa Margarita Water District

Scotts Valley Water District

Three Valleys Municipal Water District

Tuolumne Utilities District

Utica Water and Power Authority

Valley Center Municipal Water District

West Valley Water District

Western Municipal Water District

OPPOSITION

None received

RELATED LEGISLATION

Pending Legislation: None known.

Prior Legislation:

SB 427 (Eggman, Ch. 137, Stats. 2021) increased the civil penalty amounts for violation of an ordinance adopted by a local agency for water theft and required the local agency to adopt an ordinance that sets forth the administrative procedures governing the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft and to establish a process for granting a hardship waiver to reduce the amount of the fine, as specified.

PRIOR VOTES:

Senate Local Govenrment Committee (7 Ayes, 0 Noes)

**************

1. Association of California Water Agencies, SB 394 (Allen): Enhanced Penalties for Water Theft from Fire Hydrants, (Feb. 2025) available at https://www.acwa.com/wp-content/uploads/2025/02/Fire-Hydrant-Water-Theft-Fact-Sheet.pdf. ↑

2. Ibid. ↑

3. Ibid. ↑

4. Ibid. ↑

5. Ibid. ↑

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2025 - 2026 Regular

Water theft: fire hydrants

Allows local agencies to establish ordinances specific to water theft from hydrants, modifies penalties for other water theft ordinances, and adds theft from fire hydrants to provisions of existing law related to civil suits for water theft.

Background

Local ordinances. Local agencies can impose fines and penalties for violations of local ordinances. A violation of a local ordinance is a misdemeanor, unless by ordinance it is made an infraction. In general, an ordinance violation that a local agency makes an infraction is punishable by:

• A fine not more than $100 for a first violation.
• A fine not more than $200 for a second violation of the same ordinance within one year.
• A fine not more than $500 for each additional violation of the same ordinance within one year.

Higher fines apply for violations of building and safety codes:

• A fine not more than $130 for a first violation.
• A fine not more than $700 for a second violation of the same ordinance within one year.
• A fine not more than $1,300 for each additional violation of the same ordinance within one year.
• A fine not exceeding $2,500 for each additional violation of the same ordinance within two years of the first violation if the property is a commercial property that has an existing building at the time of the violation, and the violation is due to failure by the owner to remove visible refuse or failure to prohibit unauthorized use of the property.

Any local agency can make any violation of any of its ordinances subject to an administrative fine or penalty (SB 814, Alquist, 1995). Administrative fines and penalties are subject to the same maximum fine limits. The local agency must adopt an ordinance specifying the administrative procedures that govern the imposition, enforcement, collection, and administrative review of the fines or penalties.

Water theft. SB 2053 (Killea, 1994) established “water theft” as a misdemeanor. A person can be found guilty of water theft if they commit any of the following actions without paying for utility services:

• Divert utility services, by any means;
• Prevent any utility meter, or other device used in determining the charge for utility services, from accurately performing its measuring function;
• Tamper with any property owned by or used by the utility to provide utility services;
• Connect with property owned or used by the utility to provide utility services without authorization; and
• Use or receive the direct benefit of all or a portion of utility services with knowledge or reason to believe that the diversion, tampering, or unauthorized connection existed at the time of that use, or that the use or receipt was otherwise without the authorization or consent of the utility.

If the total value of all utility services stolen is more than $950, or if the defendant has previously been convicted of an offense under this section or other similarly defined sections, then the violation is punishable with up to one year of imprisonment.

A utility can bring a civil action for damages against any person who commits or attempts water theft. Existing law creates a rebuttable presumption that there is violation of these provisions if certain actions occur, including that there is, on premises owned by the customer, a device primarily designed to be used to obtain utility service without paying the full lawful charge for the utility.

Water theft ordinances. Responding to concerns that some water agencies lacked sufficient authority to impose fines to deter water theft, the Legislature enacted SB 427 (Eggman, 2021). SB 427 allowed, notwithstanding any other law, any local agency that provides water services to enact an ordinance that prohibits water theft and makes a violation of an ordinance enacted by the local agency regarding water theft subject to an administrative fine or penalty. SB 427 requires the local agency to establish procedures for the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft, and requires the local agency to establish a process for granting a hardship waiver to reduce the amount of the fine imposed for water theft upon a showing by the responsible party that payment of the full amount of the fine would impose an undue financial burden.

SB 427 established two sets of limits on the fines that a local agency can impose for water theft. Specifically, if the water theft is committed via meter tampering, the fines must not exceed:

• $130 for a first violation;
• $700 for a second violation of the same ordinance within one year of the first violation; and
• $1,300 for the third violation and each additional violation of the same ordinance within one year of the first violation.

All other forms of water theft in violation of an ordinance adopted under SB 427 are punishable by fines of up to:

• $1,000 for a first violation;
• $2,000 for a second violation of the same ordinance within one year; and
• $3,000 for each additional violation of the same ordinance within one year.

Water agencies note that water theft continues, despite the ability to adopt ordinances under SB 427. This water theft often occurs through unauthorized connections to fire hydrants, which can result in large water losses in short periods of time, damage water infrastructure, and contamination of water systems. They want the Legislature to increase the penalties that can be charged for water theft from fire hydrants, as well as other types of water theft.

Proposed Law

Senate Bill 394 allows local agencies to establish ordinances specific to water theft from hydrants, modifies penalties for other water theft ordinances, and adds theft from fire hydrants to provisions of existing law related to civil suits for water theft.

Water theft from hydrants. SB 394 allows a local agency that provides retail water services to adopt an ordinance that prohibits unauthorized connection to a fire hydrant, and makes a violation of an ordinance enacted by the local agency regarding water theft committed via the unauthorized connection to a fire hydrant subject to an administrative fine or penalty. Similar to existing law regarding water theft ordinances, SB 394 requires the local agency to establish procedures for the imposition, enforcement, collection, and administrative review of the administrative fines or penalties for water theft. Water theft via a hydrant in violation of an ordinance adopted under SB 394 is punishable by fines of up to:

• $2,500 for a first violation;
• $5,000 for a second violation of the same ordinance; and
• $10,000 for the third and subsequent violation of the same ordinance.

SB 394 prohibits levying fines for water theft under both a water theft ordinance established pursuant to this bill and an ordinance established pursuant to existing water theft law, but provides that it doesn’t preclude other civil or criminal remedies available under any other law.

Other water theft ordinances. The bill also allows local agencies that adopt a water theft ordinance for any type of water theft to continue to impose the highest penalties allowable under existing law for third or subsequent violations, even if those violations occur more than a year after the first violation.

Civil actions related to water theft. SB 394 adds tampering with a fire hydrant or specified similar activities related to fire hydrants to the list in existing law of actions that constitute water theft for which a utility may bring a civil action for damages. The bill also makes those actions, and the use of a vehicle to obtain utility services without paying, subject to a rebuttable presumption that there was water theft.

SB 394, makes other technical changes, defines its terms, and includes findings and declarations to support its purposes.

Comments

1. Purpose of the bill. According to the author, “Water is one of California’s most precious resources, especially as the state continues to face the challenges of drought and climate change. Unfortunately, the theft of water from fire hydrants has become a growing problem, costing local agencies millions of gallons of water and hundreds of thousands of dollars annually. Illegal actors use specialized tools to steal water from hydrants for commercial purposes, such as construction, landscaping, and farming. These costs are ultimately passed on to ratepayers, raising costs for paying customers. This activity not only undermines affordability but also jeopardizes public safety, conservation efforts, and the integrity of our water systems. Current penalties are insufficient deterrents to water theft and are a “cost of doing business” for the commercial entities responsible. SB 394 addresses this critical issue by enhancing penalties for water theft from fire hydrants and providing water agencies with the tools they need to hold perpetrators accountable.”

2. Stronger penalties needed? State law caps violations of most local ordinances at $500 per violation after the second violation. However, violations of local building and safety codes, which can pose a direct risk to people and property, are penalized at higher rates. The implicit public policy in this fine structure is that violations that have greater potential for harm merit higher financial penalties. Water theft fines already exceed the rates that are charged for other violations of local ordinances—even those that pose a direct risk to people and property. SB 394 goes even further in two ways:

• First, the existing fines for violations of building and safety codes reset after one year, so that a subsequent violation in the next year is fined at the lowest rate ($130), even if the same person has violated the law repeatedly in previous years. Existing water theft penalties follow this same pattern. SB 394 removes the requirement that the violations occurred in the same year for third and subsequent violations, so that those violations continue to be penalized at the highest rate.
• Second, current law defines water theft broadly to include any unauthorized connection to property owned or used by the utility, which includes fire hydrants. Accordingly, utilities can already punish water theft from fire hydrants, but they are bound by the fine limits in existing water theft law. SB 394 establishes an even higher tier of fines for tampering with a fire hydrant that are more than double the amount of other water theft violations, topping out at $10,000 per violation for three or more violations. Additionally—unlike existing water theft ordinances—SB 394 does not require that the local agency adopt a process for granting hardship waivers to individuals that don’t have the ability to pay the fine.

These are undoubtedly significant harms to local agencies and the public at large, because ratepayers bear these costs. On the other hand, there are many violations of local ordinances that have the potential for serious consequences that are penalized at lower rates. For example, the 2016 Ghost Ship fire in Oakland resulted in the deaths of 36 people, but fines for code violations similar to those that led to the conflagration top out at $1,300—thousands of dollars less than the highest penalty for water theft from a hydrant. Given that the Legislature has not recently raised the fine amounts for code violations that endanger life safety, the Committee may wish to consider whether an increase in the fines for water theft as proposed by this bill is justified.

3. Double-referred. The Senate Rules Committee has ordered a double referral of SB 394: first to the Senate Local Government Committee to hear issues of local agency authority, and second to the Senate Judiciary Committee.

Support and Opposition

(3/14/25)

Support: Association of California Water Agencies (ACWA) (Co-Sponsor)
Las Virgenes Municipal Water District (Co-Sponsor)
Bella Vista Water District
California Water Association
Calleguas Municipal Water District
City of Fairfield
City of Roseville
Coachella Valley Water District
Crescenta Valley Water District
Crestline-lake Arrowhead Water Agency
Cucamonga Valley Water District
Desert Water Agency
East Bay Municipal Utility District
Eastern Municipal Water District
Elk Grove Water District
Helix Water District
Kinneloa Irrigation District
Lakeside Water District
League of California Cities
Mendocino County Russian River Flood Control & Water Conservation
Mesa Water District
Mid-peninsula Water District
Monte Vista Water District
Orchard Dale Water District
Padre Dam Municipal Water District
Paradise Irrigation District
Placer County Water Agency
Rancho California Water District
Rosamond Community Services District
San Juan Water District
Santa Clarita Valley Water Agency
Santa Fe Irrigation District
Three Valleys Municipal Water District
Tuolumne Utilities District
Utica Water and Power Authority
Valley Center Municipal Water District
West Valley Water District
Western Municipal Water District

Opposition: None Submitted

-- END --