On October 10, 2025, Governor Newsom signed Senate Bill 394 (SB 394) into law. This legislation is designed to strengthen existing legal protections for utility service providers against utility theft, particularly water theft resulting from the unauthorized use or tampering of fire hydrants.

Under existing California law, a utility provider may bring a civil action for damages against any person who diverts, attempts to divert, or aids in utility theft. In certain cases, such as where a device was used to steal the utility, or when a meter is tampered with, there is a rebuttable presumption that the party who controls the premises or receives the direct benefit of the utility is liable for damages.

SB 394 authorizes a utility service provider to bring a cause of action for damages for the unauthorized diversion of water from fire hydrants and related facilities. SB 394 also creates a rebuttable presumption that a violation of statute occurs in cases where a party does so without authorization to obtain water and without paying the full lawful charge of the water.

Existing California law also authorizes a local agency that provides water services to adopt an ordinance that prohibits water theft (i.e., action to divert, tamper, or reconnect water utility services) with violations punishable by an administrative fine or penalty.  However, water agencies lacked statutory authority to impose fines or penalties against unauthorized connections to fire hydrants.   

SB 394, which adds Government Code section 53069.46, responds to this growing concern by authorizing local agencies that provide retail water services to adopt an ordinance that prohibits the unauthorized connection to a fire hydrant and imposes an administrative fine or penalty.  The fines and penalties set forth in Government Code section 53069.46 are significantly higher than those previously authorized by law for water theft of a utility.  For water theft from a fire hydrant, the fines may reach but shall not exceed: $2,500 for the first violation, $5,000 for the second violation, and $10,000 for the third and subsequent violations.

The changes resulting from SB 394 will allow local agencies that provide retail water services to better crack down on water theft through a fire hydrant. In addition to providing deterrence by administrative penalty, SB 349 also allows local agencies to seek to recoup damages for losses caused by water theft and resultant damage to infrastructure through civil actions.

Should you have any questions about crafting an ordinance under SB 394 or any other questions about the bill, feel free to contact the authors of this alert or your regular AALRR counsel.

Special thanks to our post-bar law clerk John Adamson for his assistance with this alert.

This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.
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