BILL NUMBER: AB 1527	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Perea

                        JANUARY 17, 2014

   An act to amend Section 116326 of the Health and Safety Code, and
to amend Section 75125 of the Public Resources Code, relating to
drinking water quality.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1527, as introduced, Perea. Public water systems: drinking
water.
   Existing law, known as the California Safe Drinking Water Act,
requires the State Department of Public Health to administer
provisions relating to the regulation of drinking water to protect
public health, including, but not limited to, administer programs to
fund improvements and expansion of small community water systems
using specified priorities. Existing law requires the department to
encourage the consolidation of small community water systems that
serve disadvantaged communities in instances where consolidation will
help the affected agencies and the state to meet specified goals.
   Existing law allows funding of studies regarding the feasibility
of consolidating 2 or more community water systems, at least one of
which is a small community water system that serves a disadvantaged
community and requires the department to give funding priority to
construction projects that involve the physical restricting of 2 or
more community water systems, as specified, when it is shown that the
consolidation would further specified goals.
   This bill would require the department, in administering programs
to fund improvements and expansions of small community water systems,
and other water systems, as specified, to promote service delivery
alternatives that improve efficiency and affordability of
infrastructure and service delivery, as specified.
   This bill also would make technical, conforming changes regarding
a reporting duty of the Strategic Growth Council.
   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.  It is the intent of the Legislature to encourage local
area formation commissions to focus on the consolidation, merger, or
extension of public water systems, especially those located in
disadvantaged communities, by seeking financial assistance in order
to perform the necessary service reviews and other appropriate
studies.
  SEC. 2.  Section 116326 of the Health and Safety Code is amended to
read:
   116326.   (a)    In administering programs to
fund improvements and expansions of small community water systems
 and, pursuant to subdivision (b), other water systems  ,
the department shall do all of the following: 
   (a) 
    (   1)  Give priority to funding projects in
disadvantaged communities. 
   (b) Encourage the consolidation of small community water systems
that serve disadvantaged communities in instances where consolidation
will help the affected agencies service 
    (2)     Promote service delivery
alternatives that improve efficiency and afford ability of
infrastructure and service delivery, including, but not limited to,
the consolidation of governmental agencies, consolidation of water
systems, and the extension of services, in and to disadvantaged
communities, where service delivery options will help affected
agencies, communities,  and the state to meet all of the
following goals: 
   (1) 
    (  A)  Improvement in the quality of water
delivered. 
   (2) 
    (   B)  Improvement in the reliability of water
delivery. 
   (3) 
    (   C)  Reduction in the cost of drinking water
for ratepayers. 
   (c) Pursuant to subdivision (b), allow funding for feasibility
studies performed prior to a construction project to include studies
of the feasibility of consolidating two or more community water
systems, at least one of which is a small community water system that
serves a disadvantaged community.  
   (d) In instances where it is shown that small community water
system consolidation will further the goals of subdivision (b), give
priority to funding construction projects that involve the physical
restructuring of two or more community water systems, at least one of
which is a small community water system that serves a disadvantaged
community, into a single, consolidated system.  
   (3) Pursuant to paragraph (2) of subdivision (a), require that
funding for feasibility studies performed prior to a construction
project include studies of service delivery alternatives that improve
efficiency and affordability of capital improvements and service
delivery, if at least one of the potentially affected agencies
serves, or would serve by way of an extraterritorial service
extension, a disadvantaged community, unless the department makes a
written determination that service delivery alternatives are not
feasible under the circumstances. In making this determination, the
department shall do all of the following:  
   (A) Review and consider the determinations and recommendations
made by the affected local agency formation commission within the
previous five calendar years in any of the following:  
   (i) A special study conducted pursuant to Section 56378 of the
Government Code.  
   (ii) A sphere of influence study conducted pursuant to Section
56425 of the Government Code.  
   (iii) A service review conducted pursuant to Section 56430 of the
Government Code.  
   (B) Consult with the executive officer of the affected local
agency formation commission to determine whether any circumstances
have changed since the studies and review conducted pursuant to
subparagraph (A) were completed or if there is any additional
information that would assist the department in its determination.
 
   (C) Review and consider the conclusions and recommendations of
other local and regional studies designed to develop and identify
regional solutions for drinking water delivery.  
   (4) If it is shown that an alternative service delivery option
will further the goals of paragraph (2) of subdivision (a), fund
construction projects that include the alternative service delivery
option, unless the department makes a written determination that the
alternative service delivery option is not feasible under the
circumstances.  
   (b) If an applicant submits an application that includes a service
delivery alternative that furthers the goals specified in paragraph
(2) of subdivision (a), the applicant need not be a small community
water system and the department may increase priority of the
application. 
  SEC. 3.  Section 75125 of the Public Resources Code is amended to
read:
   75125.  The council shall do all of the following:
   (a) Identify and review activities and funding programs of member
state agencies that may be coordinated to improve air and water
quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet the
goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), encourage sustainable land use planning, and revitalize
urban and community centers in a sustainable manner. At a minimum,
the council shall review and comment on the five-year infrastructure
plan developed pursuant to Article 2 (commencing with Section 13100)
of Chapter 2 of Part 3 of Division 3 of the Government Code and the
State Environmental Goals and Policy Report developed pursuant to
Section 65041 of the Government Code.
   (b) Recommend policies and investment strategies and priorities to
the Governor, the Legislature, and to appropriate state agencies to
encourage the development of sustainable communities, such as those
communities that promote equity, strengthen the economy, protect the
environment, and promote public health and safety, consistent with
subdivisions (a) and (c) of Section 75065.
   (c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing and
planning sustainable communities.
   (d) Manage and award grants and loans to support the planning and
development of sustainable communities, pursuant to Sections 75127,
75128, and 75129. To implement this subdivision, the council may do
all of the following:
   (1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
   (2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan to
an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.
   (3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned
by the Pooled Money Investment Board.
   (4) Provide for the time period for repaying a loan made pursuant
to this article.
   (5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the Controller to recover funds by any
available means.
   (6) Provide technical assistance for application preparation.
   (7) Designate a state agency or department to administer technical
and financial assistance programs for the disbursing of grants and
loans to support the planning and development of sustainable
communities, pursuant to Sections 75127, 75128, and 75129.
   (e)  (1)    No later than July 1,  2010,
and every   of each  year  thereafter
 , provide a report to the Legislature that shall include,
but is not limited to, all of the following: 
   (1) 
    (   A)  A list of applicants for financial
assistance. 
   (2) 
    (   B)  Identification of which applications
were approved. 
   (3) 
    (   C)  The amounts awarded for each approved
application. 
   (4) 
    (   D)  The remaining balance of available
funds. 
   (5) 
    (   E)  A report on the proposed or ongoing
management of each funded project. 
   (6) 
    (   F)  Any additional minimum requirements and
priorities for a project or plan proposed in a grant or loan
application developed and adopted by the council pursuant to
subdivision (c) of Section 75126. 
   (2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.