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SB 1035

state department of corrections; appropriation

57th Legislature - Second Regular Session Introduced by Warren Petersen

Requires utilities to give advance third-party notice to municipalities, state legislators, and local officials before terminating electric/gas service for nonpayment in owner-held

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Bill Summary · SB 1035

SB 1035 — Electric and Gas Service — Termination — Third‑Party Notification

Status: First Reading, Senate Rules (Introduced Jan 31, 2025)
Sponsor: Senator A. Washington (Maryland)

Purpose / Intent

SB 1035 requires additional third‑party notice before a public service company (utility) may terminate electric or gas service for nonpayment when the account for a multifamily dwelling unit is held by the property owner or manager. The bill is intended to give local governments and elected officials advance notice of impending utility terminations affecting tenants in multifamily housing so they can respond or coordinate interventions.

Key provisions

  • Applicability: The new notification requirement applies only when:
    • Service (electric or gas) to a multifamily dwelling unit is being terminated for nonpayment; and
    • The utility account for that unit is in the name of the property owner or property manager (i.e., master‑meter or owner‑held accounts).
  • Required notices: Before terminating service for nonpayment in the circumstances above, the public service company must notify:
    1. The municipal corporation (if the unit lies within a municipality); and
    2. The State legislators (members of the General Assembly) and local elected officials whose districts include the multifamily dwelling unit.
  • Existing third‑party framework retained: Under current law utilities already may notify a property owner/manager if a customer has consented (and owners may require such consent by lease). SB 1035 supplements—not replaces—these procedures.
  • Implementation mechanics: Each public service company must maintain procedures for third‑party notification “in a manner best suited” to its circumstances. The Public Service Commission (PSC) may adopt regulations to implement the section.

Who is affected

  • Public service companies (gas and electric utilities) — will add recipients to termination notices in defined cases.
  • Property owners/managers holding utility accounts for multifamily buildings.
  • Tenants in multifamily units whose service is provided through owner/held accounts.
  • Municipalities, state legislators, and local elected officials who will receive advance notice and may be asked to respond.

Fiscal and operational impact

  • Fiscal Note (Department of Legislative Services): The Public Service Commission can administer the bill’s requirements with existing budgeted resources. No revenue impact; no material effect on local government finances; no small business impact identified.

Timing / Procedural notes

  • Introduced: January 31, 2025. (Bill was under First Reading in Senate Rules per available record.)
  • Bill text includes an effective date provision (the draft showed an October 1, 2025 effective date); confirm the enacted effective date if/when the bill is enrolled and signed.

Practical effects / considerations

  • Provides elected officials and municipal staff a heads‑up about potential large‑scale tenant disruptions from utility shutoffs, enabling outreach or emergency response.
  • Increases administrative notification obligations for utilities in the limited circumstance of owner‑held multifamily accounts; PSC guidance/regulations may clarify notice logistics, timing, and data privacy protections.

Compiled from official sources — confirm details with the bill’s official record.

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