BILL NUMBER: SB 1263	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Wieckowski and Pavley

                        FEBRUARY 18, 2016

   An act to amend Section 116540 of, and to add Section 116527 to,
the Health and Safety Code, relating to drinking water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1263, as introduced, Wieckowski. Public water system: permits.
   (1) Existing law, the California Safe Drinking Water Act, imposes
on the State Water Resources Control Board various responsibilities
and duties relating to providing a dependable, safe supply of
drinking water. The act prohibits a person from operating a public
water system unless he or she first submits an application, including
a technical report, to the state board and receives a permit, as
specified. The act requires the state board, upon determination that
the application is complete, to make a specified investigation, and
allows the state board to impose permit conditions, requirements for
system improvements, and time schedules as the state board deems
necessary to ensure an affordable, reliable, and adequate supply of
water at all times that is pure, wholesome, and potable. The act
prohibits a public water system that was not in existence on January
1, 1998, from being granted a permit unless the system demonstrates
that the water supplier possesses adequate financial, managerial, and
technical capability to ensure the delivery of pure, wholesome, and
potable drinking water, and requires that this prohibition apply to
any change of ownership of a public water system.
   This bill would, commencing January 1, 2017, prohibit an
application for a permit for a new public water system from being
deemed complete unless the applicant has submitted a preliminary
technical report to the state board, as specified, and would allow
the state board to impose technical, financial, or managerial
requirements on the permit. The bill would prohibit a public water
system not in existence on January 1, 1998, from being granted a
permit unless the public water system demonstrates that the water
supplier also possesses adequate water rights to ensure the delivery
of pure, wholesome, and potable drinking water, and would specify
that the prohibition applies to any change in ownership of the public
water system, including the consolidation of a public water system.
The bill would allow the state board to deny the permit if the state
board determines that the service area of the public water system can
be served by one or more currently permitted public water systems.
   (2) Existing law allows the state board to delegate primary
responsibility for the administration and enforcement of the act
within a county to a local health officer if certain criteria are
met. Existing law requires that the local primacy agency be empowered
with all of the authority granted to the state board over the
specified public water systems.
   This bill would prohibit a local primacy agency from issuing a
permit without the concurrence of the state board.
   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 116527 is added to the Health and Safety Code,
to read:
   116527.  (a) Commencing January 1, 2017, an application for a
permit for a new public water system under this chapter shall not be
deemed complete unless the applicant has complied with the
requirements of this section.
   (b) The applicant shall submit a preliminary technical report to
the state board six months before submission of an application for a
building permit for any improvement in the service area of a proposed
new public water system or six months before initiating construction
of any facility or component of a new public water system, whichever
is earliest. This report shall include all of the following:
   (1) The name of each public water system for which any service
area boundary is within three miles of any boundary of the applicant'
s proposed public water system's service area.
   (2) A discussion of the feasibility of each of the adjacent public
water systems annexing, connecting, or otherwise supplying domestic
water to the service area of the applicant's proposed public water
system.
   (3) All proposed sources of domestic water supply for the proposed
new public water system.
   (4) The estimated cost to construct, operate, and maintain the
proposed new public water system, including long-term operation and
maintenance costs and a proposed rate structure.
   (5) A comparison of the cost associated with the construction,
operation and maintenance, and long-term sustainability of the
proposed new public water system to costs associated with the
annexation, consolidation, or connection to an existing public water
system.
   (6) A discussion of all actions taken by the applicant to secure a
supply of domestic water from an existing public water system for
the service area of the proposed new public water system.
   (7) A discussion of all actions taken by the applicant to pursue a
contract for managerial or operational oversight from an existing
public water system.
   (c) Upon review of a preliminary technical report submitted
pursuant to this section, the state board may do all of the following
actions:
   (1) Direct the applicant to undertake additional discussion and
negotiation with any existing public water system the state board
determines has the technical, managerial, and financial capacity to
provide an adequate and reliable supply of domestic water to the
service area of the proposed new public water system.
   (2) Direct the applicant to report on the results of discussion
and negotiations conducted pursuant to paragraph (1) to the state
board.
   (3) Establish a time schedule for the applicant's performance of
directives issued pursuant to this subdivision.
   (d) An applicant shall comply with the state board's directives
before submitting an application for a permit under this chapter.
   (e) The state board's review of a preliminary technical report
pursuant to this section shall not be deemed approval of a project or
approval of any permit application submitted under this chapter.
  SEC. 2.  Section 116540 of the Health and Safety Code is amended to
read:
   116540.   (a)    Following completion of the
investigation and satisfaction of the requirements of 
subdivisions (a) and (b)  paragraphs (1) and (2)  ,
the  department   state board  shall issue
or deny the permit. The  department   state
board  may impose permit conditions, requirements for system
improvements,  technical, financial, or managerial requirements,
 and time schedules as it deems necessary to ensure a reliable
and adequate supply of water at all times that is pure, wholesome,
potable, and does not endanger the health of consumers. 
   (a) No 
    (1)     A  public water system that
was not in existence on January 1, 1998, shall  not  be
granted a permit unless the  public water  system
demonstrates to the  department  state board
 that the water supplier possesses adequate  water rights,
as well as  financial, managerial, and technical capability to
ensure the delivery of pure, wholesome, and potable drinking water.
This section shall also apply to any change of ownership of a public
water  system that occurs after January 1, 1998. 
 system, including the consolidation of a public water system.
 
   (b) No 
    (2)     A  permit under this chapter
shall  not  be issued to an association organized under
Title 3 (commencing with Section 18000) of the Corporations Code.
This section shall not apply to unincorporated associations 
that   that,  as of December 31, 1990, are holders
of a permit issued under this chapter. 
   (b) Notwithstanding Section 116330, a local primacy agency shall
not issue a permit under this chapter without the concurrence of the
state board.  
   (c) If the state board determines that the service area of the
public water system addressed by an application under this article
can be served by one or more currently permitted public water
systems, the state board may deny the permit.