BILL NUMBER: AB 2167	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 23, 2012

   An act to amend  Section 81428   Sections
81434 and 81435  of the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2167, as amended, Hill. Bay Area Water Supply and Conservation
Agency: financial matters.
   Under existing law, the City and County of San Francisco operates
the Hetch Hetchy Project as a regional water delivery system,
supplying water to persons and entities in San Francisco and the
Counties of Alameda, San Mateo, and Santa Clara. Existing law, the
Bay Area Water Supply and Conservation Agency Act, governs the
formation and operation of the Bay Area Water Supply and Conservation
Agency by 24 public entities that purchase water from San Francisco.
The act authorizes the agency to borrow money, incur indebtedness,
and issue notes and bonds, including revenue bonds, as specified.
 The act requires the agency to publish a notice in a
newspaper of general circulation at least 15 days before the meeting
at which issuance of revenue bonds is to be considered, as specified.
  The act authorizes the agency to make proceeds of
bonds authorized by the act available to other local public agencies
on mutually satisfactory terms and conditions to assist in the
construction, reconstruction, or improvement of works designed and
intended in whole or in part to furnish water to the members of the
agency, whether those works are carried out jointly by the agency and
other local public agencies, or solely by those other public
agencies. The act further authorizes the agency to impose reasonable
rates, fees, and charges on specified entities that are sufficient to
generate revenue to pay the principal and interest on any bonds
issued by the agency.  
   This bill would revise that provision relating to making bond
proceeds available to other local public agencies to require that the
bonds be for the purpose of assisting in the repayment of any
existing capital assets, or in the construction, reconstruction, or
improvement of works, if those assets were, or the works are,
designed and intended in whole or in part to furnish water to the
members of the agency, whether those assets were, or works are,
carried out jointly by the agency and other local public agencies, or
solely by those other public agencies. The bill, with regard to
rates, fees, and charges, would authorize the agency to impose them
as a surcharge collected by the City and County of San Francisco and
transferred to the agency.  
   This bill would change the requirement that the agency publish a
notice to instead require the agency to publish the notice at least
20 days before the meeting. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 81434 of the   Water
Code   is amended to read: 
   81434.  The agency may use proceeds of bonds authorized by this
division for the construction, reconstruction, or improvement of any
works carried out by the agency. The agency may also make proceeds of
bonds authorized by this division available to other local public
agencies on mutually satisfactory terms and conditions  to
assist   . The bonds shall be for the purpose of
assisting in the repayment of any existing capital assets, or 
in the construction, reconstruction, or improvement of works  ,
if those assets were, or the works are,  designed and intended
in whole or in part to furnish water to the members of the agency,
whether those  assets were, or  works are  , 
carried out jointly by the agency and other local public agencies, or
solely by those other public agencies.
   SEC. 2.    Section 81435 of the   Water Code
  is amended to read: 
   81435.  The agency may impose reasonable rates, fees, and charges
on Stanford University, the California Water Service Company, and the
agency's member public entities for any program or service provided
or work performed by the agency. The agency may also impose
reasonable rates, fees, and charges on any other public or private
entity that enters into a contract with the agency for use of any
program or service provided or work performed by the agency.  The
agency may impose those rates, fees, and charges as a surcharge
collected by the City and County of San Francisco and transferred to
the agency.  These rates, fees, and charges shall be at least
sufficient to generate revenue to pay the principal and interest on
any bonds issued by the agency  to carry out the work
  in accordance with this division  . The agency
shall be solely responsible for servicing the debt on any bonds it
issues and the State of California has no responsibility for those
bonds. 
  SECTION 1.    Section 81428 of the Water Code is
amended to read:
   81428.  (a) The agency may issue revenue bonds upon the adoption
of an ordinance by a two-thirds vote of all of the members of the
board present and voting which also represents at least 51 votes
determined pursuant to Section 81405. For the purposes of issuing
bonds pursuant to this subdivision, the agency need not conduct an
election or otherwise secure the approval of the voters within the
boundaries of the agency.
   (b) The agency shall publish a notice in a newspaper of general
circulation at least 20 days before the meeting at which issuance of
revenue bonds is to be considered and shall provide an opportunity
for public comments during that meeting and before the directors vote
on the issuance of those bonds.