BILL ANALYSIS Ó SB 1130 Page 1 Date of Hearing: July 2, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 1130 (Roth) - As Amended: April 21, 2014 Policy Committee: JudiciaryVote:9-0 ES&TM 7-0 Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill: 1)Exempts the Elsinore Valley Municipal Water District (EVMWD), the Eastern Municipal Water District (EMWD), the Western Municipal Water District (WMWD), and the Metropolitan Water District of Southern California (MWDSC) from liability, as specified, for claims by past or existing County Water Company of Riverside customers or those who consumed water provided by the company prior to or during the interim operational period, as specified. 2)Specifies that the interim operational period shall last until permanent replacement facilities are accepted by EVMWD and EMWD with the concurrence of Department of Public Health (DPH), or December 31, 2015, whichever comes first, unless the interim period is extended by DPH for good cause. FISCAL EFFECT Negligible fiscal impact to the DPH. COMMENTS 1)Background . This bill grants limited immunity to public water districts that will, in response to a joint request of the County of Riverside and the State Department of Public Health (DPH), assume control of a failing and substandard private water system. The County Water Company (CWC) of Riverside, a private water company, purportedly serves about 140 households in western Riverside County, in an area that falls between the SB 1130 Page 2 service areas of two public water systems-the EVMWD and the EMWD. By all accounts, CWC's service has been substandard. Not only do high nitrate levels make the water undrinkable, the system fails to provide adequate water flow to meet minimum fire-fighting requirements. Failing infrastructure has left customers without any water for extended periods of time, and even when the water is running, the customers must buy bottled water for drinking and culinary purposes. EMWD and EVMWD have already provided a temporary water tank to the CWC customers for drinking and culinary purposes, and they are prepared to connect a temporary pipeline for potable water, reconstruct the CWC system, and eventually integrate CWC customers into one of the other districts. However, the districts want to ensure that, in doing this, they will not assume liability for damages attributable to the prior negligent actions or omissions of the CWC. 2)Purpose . This urgency measure grants limited and temporary immunity to EMWD and EVMWD, so they may begin the process of providing immediate relief and securing a long-term solution for the CWC customers. During an "interim operation period," the districts will first connect a temporary potable water pipeline into the CWC. The districts will then replace or repair existing facilities; once completed, the facilities will become part of the district systems with the concurrence of the DPH. Although EMWD and EVMWD will play the primary role in reconstructing CWC facilities and will eventually absorb the current CWC customers, two other public water districts "wholesalers" will also be involved and granted limited immunity. The WMWD and the MWDSC will provide supplemental water to CWC during the interim operation period. 3)Prior Legislation . This bill is similar to last year's SB 772 (Roth), which was held in the Senate Judiciary out of concern that the immunity granted in that version was too broad and might unintentionally shield the districts from injuries for which they are responsible. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081