AB 656, as introduced, Cristina Garcia. Joint powers agreements: mutual water companies.
The Joint Exercise of Powers Act authorizes 2 or more public agencies, as defined, if authorized by their governing bodies, by agreement to jointly exercise any power common to the contracting parties, and specifically authorizes a mutual water company to enter into a joint powers agreement with a public agency for these purposes. Existing law authorizes local public entities, as defined, to enter into a joint powers agreement for the purposes of providing risk-pooling, as specified.
This bill would specifically authorize 2 or more mutual water companies, or 2 or more mutual water companies and one or more public agencies that operate a public water system, to participate in joint powers agreement for risk-pooling, technical support, and other similar services.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 990.8 of the Government Code is
2amended to read:
(a) Two or more local public entities,begin insert two or more
4mutual water companies, or two or more mutual water companies
5and one or more public agencies that operate a public water
6system, as authorized under subdivision (b) of Section 6525,end insert by a
7joint powers agreement made pursuant to Article 1 (commencing
8with Section 6500) of Chapter 5 of Division 7begin delete,end delete may provide
9insurance authorized by this part or for any other purpose by any
10one or more of the methods specified in Section 990.4. Where two
11or more hospital districts have joined together to pool their
12self-insurance claims or losses, any nonprofit
corporation created
13pursuant to subdivision (p) of Section 32121 of the Health and
14Safety Code, and affiliated with a hospital district which is a party
15to the pool may participate in the pool.
16(b) Two or more local public entities having the same governing
17boardbegin insert, two or more mutual water companies, or two or more
18mutual water companies and one or more public agencies that
19operate a public water system, as authorized under subdivision
20(b) of Section 6525,end insert may be coinsured under a master policy and
21the total premium may be prorated among those entities.
22(c) The pooling of self-insured claims or losses among entities
23as authorized in subdivision (a) of Section 990.4 shall not be
24considered insurance nor be subject to regulation under the
25Insurance Code.
26(d) Any liability or loss under a joint powers agreement for the
27pooling of self-insured claims or losses authorized by this part and
28provided pursuant to this section may, notwithstanding Section
29620 of the Insurance Code or any other provision of law, be
30reinsured to the same extent and the same manner as insurance
31provided by an insurer.
32(e) Where a joint powers agreement authorized by this part or
33authorized pursuant to Section 6516 provides for the pooling of
34self-insured claims or losses among entities, if any peril insured
35or covered under contract has existed, and the joint powers
36authority or other parties to the pool have been liable for any
37period, however short, the agreement may provide that the party
38insured or covered under contract is not entitled to the return of
P3 1premiums, contributions, payments, or advances so far as that
2particular risk is concerned.
3(f) For purposes of this section, “mutual water company” has
4the same meaning as the term does in Section 14300 of the
5Corporations Code.
Section 6525 of the Government Code is amended to
7read:
begin insert(a)end insertbegin insert end insert Notwithstanding any other provision of this chapter,
9a mutual water company may enter into a joint powers agreement
10with any public agency for the purpose of jointly exercising any
11power common to the contracting parties.
12(b) Notwithstanding any other provisions of this chapter, two
13or more mutual water companies, or two or more mutual water
14companies and one or more public agencies that operate a public
15water system may enter
into a joint powers agreement for
16risk-pooling and the provision of technical support, continuing
17education, safety engineering, operational and managerial advisory
18assistance to be provided to the members of that joint powers
19agency.
20(c) For purposes of this section, “mutual water company” has
21the same meaning as the term does in Section 14300 of the
22Corporations Code.
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