BILL NUMBER: AB 1434 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2014
INTRODUCED BY Assembly Member Yamada
JANUARY 6, 2014
An act to amend Section 739.8 of the Public Utilities
Code add Section 12092 to the Government Code ,
relating to low-income water corporations
assistance .
LEGISLATIVE COUNSEL'S DIGEST
AB 1434, as amended, Yamada. Water corporations:
low-income relief programs. Low-Income Water Rate
Assistance Program.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including water corporations, as
defined. Existing law authorizes the commission to fix the rates and
charges for every public utility, and requires that those rates and
charges be just and reasonable. Existing law requires the Public
Utilities Commission to consider, and authorizes the commission to
implement, programs to provide rate relief for low-income ratepayers
of a water corporation.
Existing law establishes the Department of Community Services and
Development in state government and vests with the department various
powers and authority regarding the implementation and administration
of programs to assist low-income individuals in the state.
This bill would instead require the commission to
implement a program to provide rate relief for low-income ratepayers
of a water corporation, as specified. require the
department, no later than January 1, 2016, in collaboration with the
State Board of Equalization, to develop a plan for the funding and
implementation of the Low-Income Water Rate Assistance Program,
including specified elements. The bill would require the dep
artment, no later than January 1, 2017, to establish the program
to require water service providers to provide water bill discounts
and subsidies for eligible low-income residential water ratepayers
who enroll in the program, in accordance with prescribed
requirements. The bill would create the Low-Income Water Rate
Assistance Fund in the State Treasury, and would authorize the
department, upon appropriation by the Legislature, to expend
moneys deposited in the fund for the purposes of the program. The
bill would require the department, no later than January 1, 2016, to
report to the Legislature on its findings regarding the feasibility
and desired structure of the program to be implemented pursuant to
the bill, including any recommendations for additional legislative
action that may need to be taken to ensure the successful
implementation of the program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12092 is added to the
Government Code , to read:
12092. (a) This section shall be known, and may be cited, as the
Low-Income Water Rate Assistance Act.
(b) No later than January 1, 2016, the department, in
collaboration with the board, shall develop a plan for the funding
and implementation of the Low-Income Water Rate Assistance Program,
which shall include all of the following elements:
(1) A description of the method for collecting funds to support
and implement the program.
(2) A description of the mechanism for providing funding
assistance under the program through either direct credits to
enrollees in the program or reimbursements to water service
providers.
(3) A description of the method to be used to determine the amount
of funds that may need to be collected from water ratepayers to fund
the program. This section does not authorize the imposition of a
state charge to fund the program.
(c) (1) No later than January 1, 2017, the department shall
establish the program, which shall require water service providers in
the state to provide discounts or subsidies for eligible low-income
residential water ratepayers who enroll in the program.
(2) The department may require documentation, including tax
documents, pay stubs, wage statements, or other documents providing
proof of income, of an enrollee's eligibility for the program.
(d) The program required to be developed pursuant to this section
shall ensure all of the following:
(1) A water discount or subsidy not exceeding 20 percent of an
enrollee's total water bill, or sixty dollars ($60) per month,
whichever is less, shall be made available per billing period to an
eligible enrollee in the program for residential water service
provided by a water service provider.
(2) A water ratepayer who is enrolled in the program may receive
assistance in the form of a discount or credit based on water usage
and the total amount of the enrollee's most recent water bill.
(e) The Low-Income Water Rate Assistance Fund is hereby created in
the State Treasury. Moneys deposited in the fund may be expended by
the department, upon appropriation by the Legislature, for the
purposes of the program.
(f) No later than January 1, 2016, the department shall report to
the Legislature on its findings regarding the feasibility and desired
structure of the program to be implemented pursuant to this section,
including any recommendations for additional legislative action that
may need to be taken to ensure the successful implementation of the
program.
(g) For purposes of this section, the following terms shall have
the following meanings:
(1) "Board" means the State Board of Equalization.
(2) "Department" means the Department of Community Services and
Development.
(3) "Fund" means the Low-Income Water Rate Assistance Fund.
(4) "Low-income" means a household with income that is equal to or
no greater than 200 percent of the federal poverty guideline level.
For one-person households, program eligibility shall be based on
two-person household guideline levels.
(5) "Program" means the Low-Income Water Rate Assistance Program.
(6) "Water service provider" means a water corporation, public
utility district, or other entity that provides water service to
residential water customers in the state.
SECTION 1. Section 739.8 of the Public
Utilities Code is amended to read:
739.8. (a) Access to an adequate supply of healthful water is a
basic necessity of human life, and shall be made available to all
residents of California at an affordable cost.
(b) (1) The commission shall implement programs to provide rate
relief for low-income ratepayers.
(2) A program pursuant to paragraph (1) shall include a discount
of not less than 20 percent of the low-income ratepayer's total bill
amount.
(3) The rate relief shall be made available to all eligible
low-income ratepayers obtaining service from a water corporation
serving water at retail within the area in which the low-income
ratepayer is located.
(c) The commission shall consider and may implement programs to
assist low-income ratepayers in order to provide appropriate
incentives and capabilities to achieve water conservation goals.
(d) In establishing the feasibility of rate relief and
conservation incentives for low-income ratepayers, the commission may
take into account variations in water needs caused by geography,
climate and the ability of communities to support these programs.
(e) For purposes of this section, "low-income" means a household
with income that is equal or no greater than 200 percent of the
federal poverty guideline level. For one-person households, program
eligibility shall be based on two-person household guideline levels.