BILL NUMBER: AB 401	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 9, 2015
	AMENDED IN ASSEMBLY  APRIL 8, 2015

INTRODUCED BY   Assembly Member Dodd

                        FEBRUARY 19, 2015

   An act to add Section 12092 to the Government Code, relating to
low-income water assistance.


	LEGISLATIVE COUNSEL'S DIGEST


   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 than  January   February
 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 1.  Section 12092 is added to the Government Code, to read:

   12092.  (a) This section shall be known, and may be cited, as the
Low-Income Water Rate Assistance Act.
   (b) No later than January 1, 2017, the department, in
collaboration with the board and relevant stakeholders, shall develop
a plan for the funding and implementation of the Low-Income Water
Rate Assistance Program, which shall include all of the following
elements:
   (1) A description of the method for collecting moneys to support
and implement the program, including a discussion of any
constitutional restrictions on public water agency ratesetting.
   (2) A description of the mechanism for providing funding
assistance under the program through either direct credits to
enrollees in the program or reimbursements to water service
providers, including a method for verifying income eligibility of
low-income  ratepayers.   ratepayers,
clarification of the role of the Public Utilities Commission and
water utilities in determining and verifying customer eligibility,
and recommendations regarding the structure of the program,
particularly whether it will be administered by the state or locally
administered. 
   (3) A description of the method to be used to determine the amount
of moneys that may need to be collected from water ratepayers to
fund the program.  The plan shall include a set of
recommendations and best practices of cost-savings measures to ensure
water utilities are demonstrating whether and how they are keeping
rates low.  This section does not authorize the imposition of a
state charge to fund the program.
   (c) No later than  January   February 
1, 2017, the department shall 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.
   (d) For purposes of this section, the following terms have the
following meanings:
   (1) "Board" means the State Board of Equalization.
   (2) "Department" means the Department of Community Services and
Development.
   (3) "Low-income" means a household with income that is equal to or
no greater than 200 percent of the federal poverty guideline level.
For one-person households, program eligibility shall be based on
two-person household guideline levels.
   (4) "Program" means the Low-Income Water Rate Assistance Program.