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