BILL NUMBER: AB 1527 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2014
AMENDED IN ASSEMBLY APRIL 9, 2014
AMENDED IN ASSEMBLY MARCH 17, 2014
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, 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
agency formation commission, special district, nonprofit
organization, or entity, as specified, or
joint powers authority or joint powers agency 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.
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 agency formation commissions to
focus on the consolidation, merger, or extension of public water
systems as appropriate , 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:
(1) Give priority to funding projects in disadvantaged
communities.
(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 two or more of the following goals:
(A) Improvement in the quality of water delivered.
(B) Improvement in the reliability of water delivery.
(C) Reduction in the cost of drinking water for ratepayers.
(3) Pursuant to paragraph (2) of subdivision (a), for a
project to be considered for funding, 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, 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, 75129, and 75129.5.
(e) (1) No later than July 1, of each year, provide a report to
the Legislature that shall include, but is not limited to, all of the
following:
(A) A list of applicants for financial assistance.
(B) Identification of which applications were approved.
(C) The amounts awarded for each approved application.
(D) The remaining balance of available funds.
(E) A report on the proposed or ongoing management of each funded
project.
(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 agency
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, or joint powers authority or
joint powers agency, 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.