BILL NUMBER: AB 2238 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2012
AMENDED IN ASSEMBLY MAY 25, 2012
AMENDED IN ASSEMBLY MAY 1, 2012
AMENDED IN ASSEMBLY APRIL 11, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Perea
FEBRUARY 24, 2012
An act to amend Section 56430 of the Government Code,
to amend Section 116326 of the Health and Safety Code, and
to amend Section 75125 of, and to add Section 75129.5 to, the Public
Resources Code, relating to public water systems.
LEGISLATIVE COUNSEL'S DIGEST
AB 2238, as amended, Perea. Public water systems: drinking water.
Existing law requires the State Department of Public Health to
administer programs to fund improvements and expansion of small
community water systems using specified priorities. Existing law
requires the department to encourage the consolidation of small
community water systems that serve disadvantaged communities if
consolidation will help the affected agencies and the state meet
specified goals. Existing law allows funding of studies regarding the
feasibility of consolidating 2 or more community water systems, at
least one of which is a small community water system that serves a
disadvantaged community. Existing law requires the department to give
funding priority to projects involving physical restructuring of 2
or more community water systems into a single, consolidated system
when it is shown that the consolidation would further specified
goals.
This bill would require the department to promote the
consolidation of small community water systems that serve
disadvantaged communities, as specified , and
would require the studies performed prior to a construction project
to include the feasibility of consolidating public water systems,
unless the department makes a determination that consolidation is not
feasible. This bill, if the local agency formation commission
(LAFCO) conducted a study or service review of the consolidation
within the previous 5 calendar years and found that consolidation was
feasible, would require the department to consider the LAFCO's
findings during the department's assessment of feasibility. This bill
would also require the department to give priority to funding
projects involving consolidation of 2 or more community water systems
when the consolidation would further specified goals.
Existing law requires LAFCOs to conduct a service review of the
municipal services provided in the county, as specified, and to
review all of the agencies that provide the service within a
designated geographic area. Existing law permits LAFCOs to assess
various alternatives for improving efficiency and affordability of
infrastructure and service delivery, as specified.
This bill would authorize LAFCOs to also assess various
alternatives for improving efficiency and affordability of
infrastructure and service delivery for drinking water and wastewater
services.
This bill would require the department, in administering programs
to fund improvements and expansions of small community water systems
and other water systems, as specified, to promote service delivery
alternatives that improve efficiency and affordability of
infrastructure and service delivery, as specified.
The Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, an initiative measure,
provides funding for safe drinking water, water quality and supply,
flood control, natural resource protection, and park improvements.
Existing law establishes the Strategic Growth Council and
appropriates $500,000 from the funding provided by the initiative to
support the council and its activities. Existing law requires the
council to manage and award grants and loans to support the planning
and development of sustainable communities, as specified.
This bill would provide that LAFCOs intending to fund
consolidation, merger, or extension of services projects for the
purposes of promoting water conservation, and to support the planning
and development of sustainable communities, are eligible for funding
under the Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006.
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. It is the intent of the Legislature to encourage local
area formation commissions to focus on the consolidation, merger, or
extension of public water systems, especially those located in
disadvantaged communities, by seeking financial assistance in order
to perform the necessary service reviews and other appropriate
studies.
SEC. 2. Section 56430 of the Government Code is
amended to read:
56430. (a) In order to prepare and to update spheres of influence
in accordance with Section 56425, the commission shall conduct a
service review of the municipal services provided in the county or
other appropriate area designated by the commission. The commission
shall include in the area designated for service review the county,
the region, the subregion, or any other geographic area as is
appropriate for an analysis of the service or services to be
reviewed, and shall prepare a written statement of its determinations
with respect to each of the following:
(1) Growth and population projections for the affected area.
(2) The location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere of
influence.
(3) Present and planned capacity of public facilities, adequacy of
public services, and infrastructure needs or deficiencies including
needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere of
influence.
(4) Financial ability of agencies to provide services.
(5) Status of, and opportunities for, shared facilities.
(6) Accountability for community service needs, including
governmental structure and operational efficiencies.
(7) Any other matter related to effective or efficient service
delivery, as required by commission policy.
(b) In conducting a service review, the commission shall
comprehensively review all of the agencies that provide the
identified service or services within the designated geographic area.
The commission may assess various alternatives for improving
efficiency and affordability of infrastructure and service delivery
within and contiguous to the sphere of influence, including, but not
limited to, the consolidation of governmental agencies. The
commission may comprehensively assess various alternatives for
improving efficiency and affordability of infrastructure and service
delivery for drinking water and wastewater services.
(c) In conducting a service review, the commission may include a
review of whether the agencies under review, including any public
water system as defined in Section 116275, are in compliance with the
California Safe Drinking Water Act (Chapter 4 (commencing with
Section 116270) of Part 12 of Division 104 of the Health and Safety
Code). A public water system may satisfy any request for information
as to compliance with that act by submission of the consumer
confidence or water quality report prepared by the public water
system as provided by Section 116470 of the Health and Safety Code.
(d) The commission may request information, as part of a service
review under this section, from identified public or private entities
that provide wholesale or retail supply of drinking water, including
mutual water companies formed pursuant to Part 7 (commencing with
Section 14300) of Division 3 of Title 1 of the Corporations Code, and
private utilities, as defined in Section 1502 of the Public
Utilities Code.
(e) The commission shall conduct a service review before, or in
conjunction with, but no later than the time it is considering an
action to establish a sphere of influence in accordance with Section
56425 or 56426.5 or to update a sphere of influence pursuant to
Section 56425.
SEC. 3. SEC. 2. Section 116326 of
the Health and Safety Code is amended to read:
116326. (a) In administering programs to
fund improvements and expansions of small community water systems
and, pursuant to subdivision (b), other water systems ,
the department shall do all of the following:
(a)
(1) Give priority to funding projects in disadvantaged
communities.
(b)
(2) Promote the consolidation of small
community water systems that serve disadvantaged communities in
instances where consolidation will help at least one of the affected
agencies service delivery alternatives that improve
efficiency and affordability of infrastructure and service delivery,
including, but not limited to, the consolidation of governmental
agencies, consolidation of water systems, and the
extension of services, in and to disadvantaged communities, where
such service delivery options will help affected agencies,
communities, and the state to meet all of the following goals:
(1)
(A) Improvement in the quality of water delivered.
(2)
(B) Improvement in the reliability of water delivery.
(3)
(C) Reduction in the cost of drinking water for
ratepayers.
(c)
Pursuant to subdivision (b), require that feasibility studies
performed prior to a construction project include studies of the
feasibility of consolidating public water systems, if at least one of
the water systems serves a disadvantaged community, unless the
department makes a written determination that consolidation is not
feasible. If, within the previous five calendar years, the local
agency formation commission conducted a study, pursuant to Section
56378 of the Government Code, or conducted a service review, pursuant
to Section 56430 of the Government Code, which found the
consolidation of the public water systems feasible, the department
shall consider those findings during its assessment of feasibility.
(d) If it is shown that small community water system consolidation
will further the goals of subdivision (b), give priority to funding
construction projects that involve consolidation of two or more
community water systems, at least one of which is a small community
water system that serves a disadvantaged community, into a single,
consolidated system.
(3) Pursuant to paragraph (2) of subdivision (a), require that
funding for feasibility studies performed prior to a construction
project include studies of service delivery alternatives that improve
efficiency and affordability of capital improvements and service
delivery, if at least one of the potentially affected agencies
serves, or would serve by way of an extraterritorial service
extension, a disadvantaged community, unless the department makes a
written determination that such service delivery alternatives are not
feasible under the circumstances. In making this determination, the
department shall do all of the following:
(A) Review and consider the determinations and recommendations
made by the affected local agency formation commission within the
previous five calendar years in any of the following:
(i) A special study conducted pursuant to Section 56378 of the
Government Code.
(ii) A sphere of influence study conducted pursuant to Section
56425 of the Government Code.
(iii) A service review conducted pursuant to Section 56430 of the
Government Code.
(B) Consult with the executive officer of the affected local
agency formation commission to determine whether any circumstances
have changed since the studies and review conducted pursuant to
subparagraph (A) were completed or if there is any additional
information that would assist the department in its determination.
(C) Review and consider the conclusions and recommendations of
other local and regional studies designed to develop and identify
regional solutions for drinking water delivery.
(4) If it is shown that an alternative service delivery option
will further the goals of paragraph (2) of subdivision (a), fund
construction projects that include the alternative service delivery
option, unless the department makes a written determination that the
alternative service delivery option is not feasible under the
circumstances.
(b) If an applicant submits an application that includes a
service delivery alternative that furthers the goals specified in
paragraph (2) of subdivision (a), the applicant need not be a small
community water system.
SEC. 4. SEC. 3. Section 75125 of the
Public Resources Code is amended to read:
75125. The council shall do all of the following:
(a) Identify and review activities and funding programs of member
state agencies that may be coordinated to improve air and water
quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet the
goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), encourage sustainable land use planning, and revitalize
urban and community centers in a sustainable manner. At a minimum,
the council shall review and comment on the five-year infrastructure
plan developed pursuant to Article 2 (commencing with Section 13100)
of Chapter 2 of Part 3 of Division 3 of the Government Code and the
State Environmental Goals and Policy Report developed pursuant to
Section 65041 of the Government Code.
(b) Recommend policies and investment strategies and priorities to
the Governor, the Legislature, and to appropriate state agencies to
encourage the development of sustainable communities, such as those
communities that promote equity, strengthen the economy, protect the
environment, and promote public health and safety, consistent with
subdivisions (a) and (c) of Section 75065.
(c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing and
planning sustainable communities.
(d) Manage and award grants and loans to support the planning and
development of sustainable communities, pursuant to Sections 75127,
75128, 75129, and 75129.5. To implement this subdivision, the council
may do all of the following:
(1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
(2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan to
an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.
(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned
by the Pooled Money Investment Board.
(4) Provide for the time period for repaying a loan made pursuant
to this article.
(5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the Controller to recover funds by any
available means.
(6) Provide technical assistance for application preparation.
(7) Designate a state agency or department to administer technical
and financial assistance programs for the disbursing of grants and
loans to support the planning and development of sustainable
communities, pursuant to Sections 75127, 75128, 75129, and 75129.5.
(e) (1) No later than July 1, 2010, and every
of each year thereafter , provide a
report to the Legislature that shall include, but is not limited to,
all of the following:
(A) A list of applicants for financial assistance.
(B) Identification of which applications were approved.
(C) The amounts awarded for each approved application.
(D) The remaining balance of available funds.
(E) A report on the proposed or ongoing management of each funded
project.
(F) Any additional minimum requirements and priorities for a
project or plan proposed in a grant or loan application developed and
adopted by the council pursuant to subdivision (c) of Section 75126.
(2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
SEC. 5. SEC. 4. Section 75129.5 is
added to the Public Resources Code, to read:
75129.5. To support the planning and development of sustainable
communities, the council shall manage and award financial assistance
to a city, county, local area formation commission, special district,
nonprofit organization, or entity formed pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, or a local agency formation commission formed
pursuant to Chapter 4 (commencing with Section 56425) of Division 7
of Title 1 of the Government Code, if at least one of the parties to
the joint powers agreement qualifies as an eligible applicant, for
the preparation, planning, and implementation of a public water
system consolidation, merger, or extension of services project for
the purposes of promoting water conservation. The financial
assistance provided pursuant to this section shall be funded from
moneys made available pursuant to subdivision (c) of Section 75065.
The council shall give priority to funding projects proposed by a
disadvantaged community.