BILL NUMBER: AB 2167	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 6, 2012
	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 23, 2012

   An act to  amend Sections 81434 and 81435  
add Article   2.5 (commencing with Section 81436) to Chapter
4 of Division 31  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  (BAWSCA)  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 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   authorize the agency to
prepay the unpaid principal balance relating to existing capital
assets as of June 30, 2009, on behalf of BAWSCA members, as defined,
as provided in a prescribed water supply agreement. This bill would
authorize the agency to acquire from the City and County of San
Francisco the right to receive all or a portion of the amounts
payable by BAWSCA   members under that water supply
agreement and authorize the City and County of San Francisco to sell
to the agency its right to receive these amounts. This bill would
authorize the agency to request that the City and County of San
Francisco continue to collect amounts in accordance with the water
supply agreement and to transfer these amounts to the agency on a
periodic basis. This bill would require the agency to use these
amounts to pay debt service on prescribed bonds issued by the agency
for specified uses authorized by this bill and to satisfy all other
obligations of the agency related to those bonds. This bill would
also authorize the agency to impose rates, fees, and charges as
prescribed to pay debt service or bonds issued for the specified uses
authorized by this bill and to satisfy all other obligations of the
agency related to those bonds. This bill would also authorize the
agency to impose rates, fees, and charges as prescribed to pay debt
service or bonds issued for the specified uses   authorized
by this bill and to satisfy all other obligations of the agency
related to   those bonds and would require that the City and
County of San Francisco collect any of those rates, fees, and
charges, as specified. This bill would also permit the agency to
distribute any of these amounts not needed for the purposes of those
bonds to BAWSCA members, as prescribed  .
   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.    Article 2.5 (commencing with Section
81436) is added to Chapter 4 of Division 31 of the   Water
Code   , to read:  

      Article 2.5.  Additional Financing Authority


   81436.  For the purposes of this article, the following
definitions shall apply:
   (a) "BAWSCA members" means Stanford University, the California
Water Service Company, and eligible public entities as defined by
Section 81305.
   (b) "July 2009 Water Supply Agreement" means the water supply
agreement by and between the City and County of San Francisco and the
BAWSCA members, as amended or supplemented.
   81436.5.  The agency may prepay all or a portion of any unpaid
principal balance relating to the existing capital assets as of June
30, 2009, on behalf of BAWSCA members, as provided in the July 2009
Water Supply Agreement.
   81437.  (a) (1) The agency may acquire from the City and County of
San Francisco the right to receive all or a portion of the amounts
payable to BAWSCA members under the July 2009 Water Supply Agreement.

   (2) The City and County of San Francisco may sell to the agency
its right to receive amounts payable by BAWSCA members under the July
2009 Water Supply Agreement.
   (b) (1) If the agency acquires, and the City and County of San
Francisco sells, the right to receive amounts payable pursuant to
subdivision (a), if requested by the agency, the City and County of
San Francisco shall continue to collect amounts payable by BAWSCA
members under the July 2009 Water Supply Agreement in accordance with
the terms of that agreement and the City and County of San Francisco
shall transfer amounts so collected to the agency on a monthly basis
or on a periodic basis agreed to by the agency and the City and
County of San Francisco.
   (2) The agency shall apply amounts received pursuant to this
subdivision to pay debt service on any bonds issued by the agency for
a use authorized by Section 81437.5 and to satisfy all other
obligations of the agency related to these bonds.
   (3) The agency may distribute any amounts received pursuant to
this subdivision not needed for the purposes of this subdivision to
BAWSCA members. The agency may condition any distribution pursuant to
this paragraph upon BAWSCA members' agreement to waive any right of
prepayment respecting any amounts purchased that the member may have
under the July 2009 Water Supply Agreement.
   81437.5.  In addition to the uses authorized in Section 81434, the
agency may use proceeds of bonds issued pursuant to this division as
follows:
   (a) For the construction, reconstruction, or improvement of any
works carried out by the agency on behalf of a BAWSCA member.
   (b) For the purpose of assisting in the repayment of any existing
capital assets, if those assets were designed and intended in whole
or in part to furnish water to BAWSCA members, whether those assets
were carried out jointly by the agency and other local public
agencies, or solely by those other public agencies.
   (c) To make a prepayment, as described in Section 81436.5, or an
acquisition, as described in Section 81437.
   (d) To pay the costs of issuance of the bonds and to fund reserve
funds securing the bonds.
   81438.  (a) In addition to the authority granted in Section 81435,
the agency may do all of the following:
   (1) Impose reasonable rates, fees, and charges on BAWSCA members
for any program or service provided or work performed by the agency.
   (2) Impose rates, fees, and charges on BAWSCA members and any
entity that subsequently serves a BAWSCA member's service area in an
amount as shall be necessary, together with other available sources
of funds, to pay debt service on any bonds issued by the agency for a
use authorized by Section 81437.5 and to satisfy all other
obligations of the agency related to these bonds, including, but not
limited to, funding and maintaining reserve funds and complying with
financial covenants.
   (3) Distribute any amounts collected that are not needed for the
purposes of this article to BAWSCA members.
   (b) The City and County of San Francisco shall collect any rates,
fees, and charges imposed by the agency pursuant to this section as a
surcharge under the July 2009 Water Supply Agreement.  

  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. 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 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.