Amended in Assembly April 24, 2014

Amended in Assembly April 9, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1434


Introduced by Assembly Member Yamada

January 6, 2014


An act to add Section 12092 to the Government Code, relating to low-income water assistance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1434, as amended, Yamada. Low-Income Water Rate Assistance Program.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the Public Utilities Commission to consider, and authorizes the commission to implement, programs to provide rate relief for low-income ratepayers of a water corporation.

Existing law establishes the Department of Community Services and Development in state government and vests with the department various powers and authority regarding the implementation and administration of programs to assist low-income individuals in the state.

This bill would require the department, no later than January 1, 2016, in collaboration with the State Board of Equalizationbegin insert and relevant stakeholdersend insert, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistancebegin delete Program, includingend deletebegin insert Program, which includesend insert specified elements. The bill would require the department, no later than January 1, 2017,begin insert provided a funding source has been identified and the moneys have been appropriated,end insert to establish the program to require water service providers to provide water bill discounts and subsidiesbegin delete forend deletebegin insert toend insert eligible low-income residential water ratepayers who enroll in the program, in accordance with prescribed requirements. The bill would create the Low-Income Water Rate Assistance Fund in the State Treasury, and would authorize the department, upon appropriation by the Legislature, to expend moneys deposited in the fund for the purposes of the program. The bill would require the department, no later than January 1, 2016, to report to the Legislature on its findings regarding the feasibility and desired structure of the program to be implemented pursuant to the bill, including any recommendations for additional legislative action that may need to be taken to ensure the successful implementation of the program.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 12092 is added to the Government Code,
2to read:

3

12092.  

(a) This section shall be known, and may be cited, as
4the Low-Income Water Rate Assistance Act.

5(b) No later than January 1, 2016, the department, in
6collaboration with the boardbegin insert and relevant stakeholdersend insert, shall
7develop a plan for the funding and implementation of the
8Low-Income Water Rate Assistance Program, which shall include
9all of the following elements:

10(1) A description of the method for collectingbegin delete fundsend deletebegin insert moneysend insert to
11support and implement the program.

12(2) A description of the mechanism for providing funding
13assistance under the program through either direct credits to
14enrollees in the program or reimbursements to water service
15providers.

16(3) A description of the method to be used to determine the
17amount ofbegin delete fundsend deletebegin insert moneysend insert that may need to be collected from water
18ratepayers to fund the program. This section does not authorize
19the imposition of a state charge to fund the program.

20(c) (1) No later than January 1, 2017,begin insert and provided a funding
21source has been identified and the moneys have been appropriated,end insert

P3    1 the department shall establish the program, which shall require
2water service providers in the state to provide discounts or subsidies
3for eligible low-income residential water ratepayers who enroll in
4the program.

5(2) The department may require documentation, including tax
6documents, pay stubs, wage statements, or other documents
7providing proof of income, of an enrollee’s eligibility for the
8program.

9(d) The program required to be developed pursuant to this
10 section shall ensure all of the following:

11(1) A water discount or subsidy not exceeding 20 percent of an
12enrollee’s total water bill, or sixty dollars ($60) per month,
13whichever is less, shall be made available per billing period to an
14eligible enrollee in the program for residential water service
15provided by a water service provider.

16(2) A water ratepayer who is enrolled in the program may
17receive assistance in the form of a discount or credit based on water
18usage and the total amount of the enrollee’s most recent water bill.

19(e) The Low-Income Water Rate Assistance Fund is hereby
20created in the State Treasury. Moneys deposited in the fund may
21be expended by the department, upon appropriation by the
22Legislature, for the purposes of the program.

23(f) No later than January 1, 2016, the department shall report
24to the Legislature on its findings regarding the feasibility and
25desired structure of the program to be implemented pursuant to
26this section, including any recommendations for additional
27legislative action that may need to be taken to ensure the successful
28implementation of the program.

29(g) For purposes of this section, the following termsbegin delete shallend delete have
30the following meanings:

31(1) “Board” means the State Board of Equalization.

32(2) “Department” means the Department of Community Services
33and Development.

34(3) “Fund” means the Low-Income Water Rate Assistance Fund.

35(4) “Low-income” means a household with income that is equal
36to or no greater than 200 percent of the federal poverty guideline
37level. For one-person households, program eligibility shall be
38based on two-person household guideline levels.

39(5) “Program” means the Low-Income Water Rate Assistance
40Program.

P4    1(6) “Water service provider” means a water corporation, public
2utility district, or other entity that provides water service to
3residential water customers in the state.



O

    97