BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1130|
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                                    THIRD READING


          Bill No:  SB 1130
          Author:   Roth (D)
          Amended:  4/21/14
          Vote:     27 - Urgency

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-0, 4/2/14
          AYES:  Hill, Gaines, Hancock, Jackson, Leno, Pavley
          NO VOTE RECORDED:  Fuller, Vacancy, Vacancy

           SENATE JUDICIARY COMMITTEE  :  7-0, 4/8/14
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Drinking water:  County Water Company of Riverside  
          water
                      system:  liability

           SOURCE  :     Eastern Municipal Water District
                      Elsinore Valley Municipal Water District


           DIGEST  :    This bill provides limited immunities from liability  
          relating to the reconstruction of a public water system in  
          Riverside County for the Eastern Municipal Water District  
          (EMWD), the Elsinore Valley Municipal Water District (EVMWD),  
          the Western Municipal Water District, and the Metropolitan Water  
          District of Southern California.  Those immunities only apply if  
          specific conditions are met, including that water provided to  
          the water system must meet or exceed federal and state drinking  
          water quality standards.
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           ANALYSIS  :    Existing law:

          1.Under the California Safe Drinking Water Act:

             A.   Requires the Department of Public Health (DPH) to  
               regulate drinking water and to enforce the federal Safe  
               Drinking Water Act and other related regulations.

             B.   Authorizes DPH to delegate regulatory authority for  
               small water systems (fewer than 200 service connections) to  
               local primacy agencies (counties). 

             C.   Establishes the Safe Drinking Water State Revolving Fund  
               and continuously appropriates the Fund to DPH to provide  
               grants or revolving fund loans for the design and  
               construction of projects for public water systems that will  
               enable suppliers to meet safe drinking water standards.

          1.Declares the established policy of the state that every human  
            being has the right to safe, clean, affordable, and accessible  
            water adequate for human consumption, cooking, and sanitary  
            purposes.  All relevant state agencies, shall consider this  
            state policy when revising, adopting, or establishing  
            policies, regulations, and grant criteria when those policies,  
            regulations, and criteria are pertinent to the uses of water,  
            as specified.

          2.Under the Municipal Water District Law of 1911, provides for  
            the formation of municipal water districts, grants to those  
            districts specified powers and  permits a district to acquire,  
            control, distribute, store, spread, sink, treat, purify,  
            recycle, recapture, and salvage any water for the beneficial  
            use of the district, its inhabitants, or the owners of rights  
            to water in the district.

          This bill:  

          1.Exempts the EVMWD, the EMWD, the Western Municipal Water  
            District, and the Metropolitan Water District of Southern  
            California from liability, as prescribed, for claims by past  
            or existing County Water Company of Riverside customers or  
            those who consumed water provided through the County Water  
            Company of Riverside water system prior to and during the  

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            interim operation period, as specified. 

          2.Prohibits the immunity from liability from being construed  
            either to relieve any water district, water wholesaler, or any  
            other entity from compliance with drinking water standards,  
            impair any cause of action or proceeding brought by specified  
            public entities, or impair claims alleging the taking of  
            property without compensation. 

          3.Requires the interim operation period to last until permanent  
            replacement facilities are accepted by the EVMWD and the EMWD  
            with the concurrence of DPH, or December 31, 2015, whichever  
            occurs first. 

          4.Requires DPH to extend the interim operation period for up to  
            three successive one-year periods at the request of the EVMWD  
            and the EMWD, as prescribed.

          5.Makes legislative findings and declarations as to the  
            necessity of a special statute with regard to the customers of  
            the County Water Company of Riverside.

           Background  

          The County Water Company of Riverside, a small privately owned,  
          non-mutual water company, currently owns a well which is the  
          sole water supply serving 140 homes in western Riverside County.  


          This well is operationally unreliable and fails to meet state  
          drinking water standards.  It is also functionally unable to  
          provide emergency life-saving fire flows if needed.  On several  
          occasions this well has been totally unable to pump water,  
          leaving residents without a supply of piped water for extended  
          periods of time.  Residents within the County Water Company  
          system have been placed in the situation wherein the water they  
          drink, cook, and bathe in comes from a roadside tanker or  
          bottles purchased from the store.

          Neighboring public water providers have stepped up to provide  
          customers of the County Water Company with emergency water  
          service until a long-term solution can be established.  However,  
          interim assistance and the development of temporary solutions  
          can open the existing public agencies up to liabilities stemming  

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          from past actions of the County Water Company. 

          Riverside County health officials have asked two adjacent local  
          water agencies for assistance in providing both short-term and  
          long-term solutions to the health and safety risks the residents  
          face as a result of this failing water system.  Such assistance  
          comes with the risk of liability and potential costs to the  
          existing ratepayers of the agencies offering assistance.

          In an effort to protect existing public water agency customers,  
          while working to secure the health and safety of the County  
          Water Company of Riverside residents, EMWD and EVMWD are seeking  
          to establish a narrowly crafted bill that will provide legal  
          protections that will allow the public agencies to move forward  
          with assisting those families in crisis.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  4/28/14)

          Eastern Municipal Water District (co-source) 
          Elsinore Valley Municipal Water District (co-source) 
          California Special Districts Association
          County of Riverside 
          Mesa Water District
          Metropolitan Water District of Southern California
          Western Municipal Water District

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill will allow the public agencies of EMWD and EVMWD to extend  
          water service and provide the necessary assistance to the 140  
          service connections currently being served by the County Water  
          Company of Riverside, without being held liable for past  
          administrative or operational deficiencies of the existing water  
          system, including litigation costs.


          RM:nl  4/28/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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