BILL NUMBER: SB 350	CHAPTERED  10/09/01

	CHAPTER  632
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2001
	APPROVED BY GOVERNOR  OCTOBER 8, 2001
	PASSED THE SENATE  SEPTEMBER 12, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2001
	AMENDED IN ASSEMBLY  AUGUST 27, 2001
	AMENDED IN ASSEMBLY  JUNE 30, 2001
	AMENDED IN SENATE  APRIL 26, 2001

INTRODUCED BY   Senator Alpert
   (Principal coauthor:  Senator Morrow)

                        FEBRUARY 20, 2001

   An act to add Section 125.5 to the Metropolitan Water District Act
(Chapter 209 of the Statutes of 1969), relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 350, Alpert.  Metropolitan water districts.
   (1) The Metropolitan Water District Act grants to a metropolitan
water district formed under the act various powers, including the
authority to invest surplus funds in accordance with prescribed
requirements.
   This bill would require, on or before June 30, 2002, the board of
directors of a district to adopt a resolution establishing
guidelines, as specified, governing the intended use of unreserved
fund balances.  The requirements imposed by this bill on a district
with regard to the development of guidelines governing unreserved
fund balances would impose a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 125.5 is added to the Metropolitan Water
District Act (Chapter 209 of the Statutes of 1969), to read:
  125.5.  On or before June 30, 2002, the board of directors of a
district shall adopt a resolution establishing guidelines for the
intended use of unreserved fund balances.  The guidelines shall
require that any disbursement of funds to member public agencies that
represents a refund of money paid for the purchase of water shall be
distributed based upon each member agency's purchase of water from
the district during the previous fiscal year.
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.