BILL ANALYSIS �
AB 2238
Page 1
Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2238 (Perea) - As Amended: May 1, 2012
Policy Committee: Local
GovernmentVote:6-3
ES&TM 6-3
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill places new requirements on local agency formation
commissions (LAFCOs) for drinking water and wastewater services,
and adds new requirements to the Department of Public Health
(DPH) for programs related to small community water systems.
Specifically, this bill:
1)Requires LAFCOs, in conducting a municipal service review
(MSR), to comprehensively assess various alternatives for
improving efficiency and affordability of infrastructure and
service delivery for drinking water and wastewater services.
2)Makes changes in DPH's administration of Safe Drinking Water
Act programs that fund improvements and expansions of small
community water systems. The cumulative effect is to direct
DPH to consider more carefully the possibility of
consolidation and assign a higher priority for funds for
consolidations and mergers, as specified.
3)Authorizes several local government entities, including
LAFCOs, to receive funds under the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006, (Proposition 84) for the
specified activities regarding public water system
consolidation, merger, or extension of services or water
conservation projects.
4)Specifies that reimbursement to local agencies shall be made
if the Commission on State Mandates determines that this bill
contains costs mandated by the state.
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FISCAL EFFECT
1)Reimbursable costs in the high hundreds of thousands to low
millions of dollars for mandates LAFCOs for additional
assessment and studies.
2)Minor absorbable costs for DPH.
3)Grants and loans will be from existing sources, including bond
act and federal grants.
COMMENTS
1)Purpose . According to the author, this bill sets up a
comprehensive approach to increase efficiency of service
delivery and access to clean and affordable water and
wastewater services in disadvantaged communities.
The bill requires DPH to promote the consolidation of small
water systems that serve disadvantaged communities and
prioritizes funding for projects involving consolidation to
promote safe and affordable drinking water. Two requirements
are directed at LAFCOs. First, the bill requires LAFCOs to
assess various alternatives for improving efficiency and
affordability of service delivery and compliance in specified
studies performed by LAFCOs. And second, the bill allows
LAFCOs to access existing grant funds that support the
planning and development of sustainable communities.
2)Support. According to the sponsor, the California Rural Legal
Assistance Foundation, and supporters, including PolicyLink,
Clean Water Action, and Community Water Center, there are
hundreds of thousands of Californians who live in
disadvantaged communities without the most basic features of a
safe and healthy environment such as clean and affordable
drinking water, adequate wastewater treatment or storm water
drainage.
3)LAFCO responsibilities. Current LAFCO law specifies various
ways that special districts and other agencies can be
reorganized and modified, including consolidation,
dissolution, merger or establishment of a subsidiary district.
MSRs are a comprehensive study designed to better inform
LAFCO, local agencies and the community about the provision of
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municipal services. The MSR is a prerequisite to a
determination of sphere of influence, which is a planning
boundary outside of an agency's legal boundary that designates
the agency's probable future boundary and service area.
4)Strategic Growth Council (SGC). The SCG awards grants and
loans to support the planning and development of sustainable
communities. This bill authorizes several local government
entities, including LAFCOs, to receive Proposition 84 funds
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.
5)Arguments in opposition. According to the California
Association of LAFCOs, nearly half of the thousands of MSRs
conducted by LAFCOs include water or wastewater agencies.
They note LAFCOs do not have the resources or expertise to
study reorganizations in all of these cases and this bill
would require hiring consultants and passing the attendant
costs to all counties, cities and special districts.
The Association of California Water Agencies (ACWA) argues the
bill adds a new unfunded mandate and that the state will
subject itself to millions of dollars in reimbursements.
6)Relevant legislation.
a) AB 2208 (Perea), authorizes the DPH, when implementing
the Proposition 84 bond act, to consolidate multiple
community projects to meet safe drinking water standards.
AB 2208 is on the Assembly floor.
b) AB 2334 (Fong), requires the Department of Water
Resources to analyze drinking water and wastewater services
affordability for low-income residents. AB 2334 is on this
committee's Suspense File.
c) AB 2529 (Wieckowski), authorizes the DPH to adopt
interim regulations and take other actions to expedite the
process of providing funds for drinking water projects,
especially to severely disadvantaged communities. AB 2529
is scheduled for hearing in this committee on May 16, 2012.
7)Previous legislation.
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a) SB 244 (Wolk), Chapter 513, Statutes of 2011 requires
LAFCOs, in determining the sphere of influence for local
agencies, to consider infrastructure needs related to
municipal and industrial water in disadvantaged
unincorporated communities. AB 244 also authorized LAFCOs
to assess alternatives for improving infrastructure and
service delivery, including the consolidation of
governmental agencies.
b) SB 732 (Steinberg), Chapter 729, Statutes of 2008,
created the SCG and required it to grants manage and award
grants and loans to support the planning and development of
sustainable communities.
c) AB 783 (Arambula), Chapter 614, Statutes of 2007,
requires DPH to prioritize funding of water projects in
disadvantaged communities and directs DPH to encourage,
provide funds for studies on, and prioritize funding for
projects which consolidate small public water systems in
certain situations.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081