BILL NUMBER: AB 2443	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Rendon
   (Coauthor: Assembly Member Nestande)

                        FEBRUARY 21, 2014

   An act to amend Section 1506 of the Public Utilities Code,
relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2443, as introduced, Rendon. Duplication of service: mutual
water companies.
   Existing law states that the Legislature finds and declares that
whenever a political subdivision, as defined, constructs facilities
to provide or extend water service, or provides or extends water
service, to any service area of a private utility, as defined, with
the same type of service, this act constitutes a taking of the
property of the private utility for a public purpose to the extent
that the private utility is injured by reason of any of its property
employed in providing the water service being made inoperative,
reduced in value, or rendered useless to the private utility for the
purpose of providing water service to the service area. Existing law
requires that a political subdivision that makes such a taking of the
property of a private water utility pay just compensation for the
property taken for a public purpose. A mutual water company is a
private utility for these purposes to the extent that its property is
employed by the company in providing water service in or for a
territory that is actually being provided with water service when the
political subdivision constructs facilities to provide, or extends
water service to, the territory serviced by the mutual water company.
Existing law establishes an exception that is applicable only to Los
Angeles County with respect to the use of reclaimed water.
   This bill would make inapplicable the provision that a mutual
water company is a private utility entitled to just compensation for
a taking in a territory it services at the time of the taking when a
political subdivision constructs facilities to provide or extend
recycled water service to the territory of the mutual water company.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1506 of the Public Utilities Code is amended to
read:
   1506.  As used in this chapter, "private utility" includes a
mutual water company. In its application to mutual water companies,
this chapter affects and relates only to the property, or portion of
any property, of a mutual water company that is employed by the
company in providing water service in or for a territory that is
actually being provided with water service by the company when a
political subdivision constructs facilities to provide or extend
water service or provides or extends  such   the
 service to the territory, and that territory shall constitute
the "service area" of a mutual water company as used in Section 1502.
 This section does not apply to a political subdivision that
constructs facilities to provide or extend recycled water service to
the territory of the mutual water company.