BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 60| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 60 Page 2 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. SB 60 Page 3 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. SB 60 Page 4 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 SB 60 Page 5 California Municipal Utilities Association TSM:cm 4/28/99 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****