AB 401, as amended, Dodd. Low-Income Water Rate Assistance Program.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the Public Utilities Commission to consider, and authorizes the commission to implement, programs to provide rate relief for low-income ratepayers of a water corporation.
Existing law establishes the Department of Community Services and Development in state government and vests with the department various powers and authority regarding the implementation and administration of programs to assist low-income individuals in the state.
This bill would require the department, no later than
January 1, 2017, in collaboration with the State Board of Equalization and relevant stakeholders, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program, which would include specified elements. The bill would require the department, no later thanbegin delete Januaryend deletebegin insert Februaryend insert 1, 2017, to report to the Legislature on its findings regarding the feasibility, financial stability, and desired structure of the program, including any recommendations for legislative action that may need to be taken.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 12092 is added to the Government Code,
2to read:
(a) This section shall be known, and may be cited, as
4the Low-Income Water Rate Assistance Act.
5(b) No later than January 1, 2017, the department, in
6collaboration with the board and relevant stakeholders, shall
7develop a plan for the funding and implementation of the
8Low-Income Water Rate Assistance Program, which shall include
9all of the following elements:
10(1) A description of the method for collecting moneys to support
11and implement the program, including a discussion of any
12constitutional restrictions on public water agency ratesetting.
13(2) A
description of the mechanism for providing funding
14assistance under the program through either direct credits to
15enrollees in the program or reimbursements to water service
16providers, including a method for verifying income eligibility of
17low-incomebegin delete ratepayers.end deletebegin insert ratepayers, clarification of the role of the
18Public Utilities Commission and water utilities in determining and
19verifying customer eligibility, and recommendations regarding
20the structure of the program, particularly whether it will be
21administered by the state or locally administered.end insert
22(3) A description of the method to be used to determine the
23amount of moneys that may need to be collected from water
24ratepayers to fund the program.begin insert
The plan shall include a set of
25recommendations and best practices of cost-savings measures to
26ensure water utilities are demonstrating whether and how they
27are keeping rates low.end insert This section does not authorize the
28imposition of a state charge to fund the program.
29(c) No later thanbegin delete Januaryend deletebegin insert Februaryend insert 1, 2017, the department shall
30report to the Legislature on its findings regarding the feasibility,
31financial stability, and desired structure of the program, including
P3 1any recommendations for legislative action that may need to be
2taken.
3(d) For purposes of this section, the following terms have the
4following
meanings:
5(1) “Board” means the State Board of Equalization.
6(2) “Department” means the Department of Community Services
7and Development.
8(3) “Low-income” means a household with income that is equal
9to or no greater than 200 percent of the federal poverty guideline
10level. For one-person households, program eligibility shall be
11based on two-person household guideline levels.
12(4) “Program” means the Low-Income Water Rate Assistance
13Program.
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