BILL NUMBER: AB 401	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 1, 2015
	AMENDED IN SENATE  JULY 9, 2015
	AMENDED IN ASSEMBLY  APRIL 8, 2015

INTRODUCED BY   Assembly Member Dodd
    (   Coauthor:   Senator   McGuire
  ) 

                        FEBRUARY 19, 2015

   An act to add Section  12092   189.5  to
the  Government   Water  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. 

   Existing law establishes the State Water Resources Control Board
and the 9 California regional water quality control boards as the
principal state agencies with authority over matters relating to
water quality. Existing law requires the state board to formulate and
adopt state policy for water quality control. 
   This bill would require the  department,  
state board,  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 permit the board to consider existing
rate assistance programs authorized by the commission in developing
the plan and would authorize the plan to include recommendations for
other cost-effective methods of offering assistance to low-income
water customers.  The bill would require the 
department,   state board,  no later than 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.  
   SECTION 1.    Section 189.5 is added to the 
 Water Code   , to read: 
    189.5.   (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,
  board,  in collaboration with the  board
  State Board of Equalization  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, 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) In developing the plan required in subdivision (b), the board
may consider the existing rate assistance programs authorized by the
Public Utilities Commission for investor-owned water utilities
pursuant to Section 739.8 of the Public Utilities Code.  
   (d) The plan may also include recommendations for other
cost-effective methods of offering assistance to low-income water
customers besides rate assistance, including billing alternatives,
installation of water conservation devices, and leak repair. In
considering other methods, the board may consider the Public
Utilities Commission's "Assessment of Water Utility Low-Income
Assistance Programs."  
   (c) 
    (e)  No later than February 1, 2017, the 
department   board  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) 
    (f)  For purposes of this section, the following terms
have the following meanings:
   (1) "Board" means the State  Board of Equalization.
  Water Resources Control Board.  
   (2) "Department" means the Department of Community Services and
Development.  
   (3)
    (2)  "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) 
    (3)  "Program" means the Low-Income Water Rate
Assistance Program.