BILL NUMBER: AB 1527 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2014
AMENDED IN ASSEMBLY MARCH 17, 2014
INTRODUCED BY Assembly Member Perea
JANUARY 17, 2014
An act to add Article 13 (commencing with Section 116756)
to Chapter 4 of Part 12 of the Health and Safety Code, relating to
drinking water. An act to amend Section 116326 o
f the Health and Safety Code, and to amend Section 75125 of,
and to add Section 75129.5 to, the Public Resources Code, relating to
public water systems.
LEGISLATIVE COUNSEL'S DIGEST
AB 1527, as amended, 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, administering 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 if consolidation will help the
affected agencies and the state 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 projects that
involve the physical restructuring 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.
The Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, an initiative measure,
provides funding for safe drinking water, water quality and supply,
flood control, natural resource protection, and park improvements.
Existing law establishes the Strategic Growth Council and
appropriates $500,000 from the funding provided by the initiative to
support the council and its activities. Existing law requires the
council to manage and award grants and loans to support the planning
and development of sustainable communities, as specified.
This bill would require the council to manage and award financial
assistance to a city, county, local area formation commission,
special district, nonprofit organization, or entity, as specified,
for the preparation, planning, and implementation of a public water
system consolidation, merger, or extension of services project for
the purposes of promoting water conservation, and would require that
the financial assistance be provided from available moneys pursuant
to a specified provision of the bond act described above.
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, 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.
This bill would authorize an assuming water system, as defined,
to voluntarily consolidate with another water system. This bill would
define "assuming water system" as a water system that will obtain
legal ownership of another water system or systems, and that has a
permit to operate from the department, and would define "subsumed
water system" as the water system that will transfer legal ownership
to the assuming water system. This bill would require the assuming
water system to file a voluntary consolidation plan with the
department that includes, but is not limited to, a list of current
deficiencies in the subsumed water system, proposed remedies to those
deficiencies, and a timeline for correcting the subsumed water
system. This bill would require the department to approve the
voluntary consolidation plan within 60 days, and if the department
does not disapprove of the plan within those 60 days the plan will be
deemed approved. This bill would also provide that an assuming water
system that begins voluntary consolidation pursuant to an approved
plan, is not liable for any good faith, reasonable effort to assume
possession of, and to operate, the subsumed water system in
compliance with the plan and other statutes and regulations. This
bill would also require the department to adopt regulations relating
to the required content of a voluntary consolidation plan and the
process for approval.
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
(2) Promote service delivery
alternatives that improve efficiency and affordability 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 the 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 , and 75129.5 . 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 , and 75129.5 .
(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.
SEC. 4. Section 75129.5 is added to the
Public Resources Code , to read:
75129.5. To support the planning and development of sustainable
communities, the council shall manage and award financial assistance
to a city, county, local area formation commission, special district,
nonprofit organization, or entity formed pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, or a local agency formation commission formed
pursuant to Chapter 4 (commencing with Section 56425) of Part 2 of
Division 3 of Title 5 of the Government Code, if at least one of the
parties to the joint powers agreement qualifies as an eligible
applicant, for the preparation, planning, and implementation of a
public water system consolidation, merger, or extension of services
project for the purposes of promoting water conservation. The
financial assistance provided pursuant to this section shall be
funded from moneys made available pursuant to subdivision (c) of
Section 75065. The council shall give priority to funding projects
proposed by a disadvantaged community.
SECTION 1. Article 13 (commencing with Section
116756) is added to Chapter 4 of Part 12 of Division 104 of the
Health and Safety Code, to read:
Article 13. Voluntary Consolidation
116756. For purposes of this article the following definitions
apply:
(a) "Assuming water system" means a public water system that
obtains legal ownership of another public water system or systems
pursuant to Section 116757 and has a permit to operate pursuant to
Section 116525.
(b) "Subsumed water system" means a public water system that
transfers legal ownership to an assuming water system.
116757. An assuming water system may voluntarily consolidate with
another water system. The assuming water system shall file a written
plan for voluntary consolidation with the department that includes,
but is not limited to, a list of the current deficiencies in the
subsumed water system, planned remedies to fix the current
deficiencies, and a timeline for correction of the subsumed water
system. The department shall have 60 days to approve the voluntary
consolidation plan. If the department does not disapprove the
voluntary consolidation plan within 60 days, the plan shall be deemed
approved. If an assuming water system begins voluntary consolidation
pursuant to an approved voluntary consolidation plan, the assuming
water system shall not be liable for any good faith, reasonable
effort to assume possession of and operate the subsumed water system
in compliance with the plan, this chapter and other applicable laws
and regulations.
116758. The department shall adopt regulations relating to the
required content of a voluntary consolidation plan and the process
for approval.