BILL ANALYSIS                                                                                                                                                                                                    



                                                             


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                       THIRD READING
                              

Bill No:  SB 60
Author:   Hayden (D)
Amended:  As introduced
Vote:     21

  
  SENATE AG. & WATER RESOURCES COMMITTEE  :  9-1, 3/2/99
AYES:  Costa, Kelley, Bowen, Johannessen, Monteith, Ortiz,  
  Peace, Perata, Poochigian
NOES:  Wright
NOT VOTING:  Speier

  SENATE LOCAL GOVERNMENT COMMITTEE  :  7-0, 4/7/99
AYES:  Baca, Johannessen, Monteith, Perata, Polanco,  
  Schiff, Rainey

  SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
 

  SUBJECT  :    Metropolitan Water District of Southern  
California

  SOURCE  :     Author

 
  DIGEST  :    This bill:

1.Prohibits the Metropolitan Water District of Southern  
  California from using public funds on contracts to  
  conduct political research on elected officials who vote  
  on the Metropolitan Water District of Southern California  
  policies, or on parties that may have matters pending  
  before the Board of Directors.

                                                 CONTINUED





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2.Requires the Metropolitan Water District of Southern  
  California to establish and operate an Office of Ethics,  
  as specified.

3.Requires the Metropolitan Water District of Southern  
  California to place increased emphasis on various  
  environmentally sound, cost-effective water conservation  
  programs, and requires the District to report to the  
  Legislature, on or before February 1, 2001, on the  
  progress of water conservation efforts.

  ANALYSIS  :    The Metropolitan Water District Act authorizes  
the creation of metropolitan water districts for the  
purpose of developing, storing, and distributing water for  
municipal and domestic purposes.  The only district  
organized under this act is the Metropolitan Water District  
of Southern California (MWD).  MWD wholesales water to 27  
member agencies and serves nearly 16 million people in  
Southern California.  The district's water sources include  
the Colorado River via the Colorado River Aqueduct, the  
north state via the California Aqueduct, the east side of  
the Sierra via the Los Angeles Aqueduct, supplies gained  
through water transfers, and local supplies resulting from  
conservation, recycling, and groundwater recovery.

In recent years, tensions within the MWD family and  
relations with its neighbors and the Legislature resulted  
in the appointment of a Senate Select Committee on Southern  
California Water Districts Expenditures and Governance.   
The committee is in its second year of operation, and is  
charged with examining allegations of ethical and fiscal  
abuse.

This bill:

1.Prohibits MWD from using public funds to conduct  
  political research.

2.Requires the establishment and operation of an Office of  
  Ethics charged to:

   A.   Regulate the behavior of its board members,  
     officers and employees.








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   B.   Protect the confidentiality of sources, the job  
     security of "whistle blowers," and the due process  
     rights of the accused.

   C.   Make publicly available the results of any  
     investigations.

   D.   Adopt rules relating to business relationships  
     between board members, contractors, vendors, and  
     public agency members.

   E.   Regulate the solicitation of campaign contributions  
     by board members, officers, employees, bidders, and  
     contractors

   F.   Prevent the use of coalitions as a means to advance  
     public opinion where use of aliases is likely to be  
     mislead the public as to the group's true identity or  
     funding source.

3.Mandates public notice and procedures for contracts of  
  $50,000 or more.

4.Requires the district to place increased emphasis on  
  various sustainable, environmentally sound,  
  cost-effective water conservation programs, and requires  
  an annual report on water conservation to incept February  
  1, 2001.

  Comments

  According to the author's office, this bill does not  
prevent MWD from conducting its public awareness campaigns  
or legitimate advocacy, but rather attempts to ban covert  
and misleading approaches that essentially use ratepayer  
money to misinform ratepayers and their public  
representatives.

With respect to water conservation, the author's office  
states that every year, one trillion gallons of Los Angeles  
regional storm water washes out to the sea, enough to meet  
the needs of three million families.  The potential for  
conservation is huge.  Conservation of water is a looming  
21st century issue, and California must set an example.   







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This bill attempts to move our water agencies towards this  
vision.  

Similar Legislation

  SB 1875 (Hayden - 1997-98 Session) passed the Senate Floor  
with a vote of 23-6 on Unfinished Business (NOES:  Hurtt,  
Knight, Leslie, Lewis, Mountjoy, and Wright).  The bill was  
vetoed by then Governor Wilson.  In his veto message, then  
Governor Wilson stated:

  "While I am not opposed to the provisions of the bill  
  dealing with the additional ethics procedures to be  
  imposed on MWD, I am concerned that the provisions  
  mandating a focus on sustainable water conservation  
  are unnecessary given the clear commitment MWD has  
  sustained over the past dozen years.

  "The State ought not to make it appear as though MWD  
  is doing nothing to address this enormously important  
  issue.  According to a recent Los Angeles Chamber of  
  Commerce study, for example, Southern California,  
  through MWD and its very aggressive member agencies,  
  have invested $8 billion in conservation, water  
  recycling and storage since 1982.  As a result of  
  these and other programs, the region uses less water  
  today than in 1977, despite a population growth of  
  five million residents.

  "The provisions of this bill dealing with ensuring  
  MWD's appropriate behavior in light of its public  
  trust ought not to be coupled with the author's desire  
  to micromanage the District's program and policy to  
  meet its core responsibility - for which it ought to  
  be praised and encouraged to continue."

  FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
Local:  Yes


  SUPPORT  :   (Verified  4/27/99)

Metropolitan Water District of Southern California
San Diego County Water Authority







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California Municipal Utilities Association

TSM:cm  4/28/99   Senate Floor Analyses 

               SUPPORT/OPPOSITION:  SEE ABOVE

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