Amended in Assembly March 17, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1527

Introduced by Assembly Member Perea

January 17, 2014

An act to begin delete amend Section 116326 of the Health and Safety Code, and to amend Section 75125 of the Public Resources Code, end delete begin insert add Article 13 (commencing with Section 116756) to Chapter 4 of Part 12 of the Health and Safety Code, end insert relating to drinking water begin delete quality end delete .

LEGISLATIVE COUNSEL’S DIGEST

AB 1527, as amended, Perea. Public water systems: drinking water.

Existing law, known as the California Safe Drinking Water Act, requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, begin delete administer end delete 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 in instances where consolidation will help the affected agencies and the state to meet specified goals.

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This bill would authorize an assuming water system, as defined, to voluntarily consolidate with another water system. This bill would define “assuming water system” as a water system that will obtain legal ownership of another water system or systems, and that has a permit to operate from the department, and would define “subsumed water system” as the water system that will transfer legal ownership to the assuming water system. This bill would require the assuming water system to file a voluntary consolidation plan with the department that includes, but is not limited to, a list of current deficiencies in the subsumed water system, proposed remedies to those deficiencies, and a timeline for correcting the subsumed water system. This bill would require the department to approve the voluntary consolidation plan within 60 days, and if the department does not disapprove of the plan within those 60 days the plan will be deemed approved. This bill would also provide that an assuming water system that begins voluntary consolidation pursuant to an approved plan, is not liable for any good faith, reasonable effort to assume possession of, and to operate, the subsumed water system in compliance with the plan and other statutes and regulations. This bill would also require the department to adopt regulations relating to the required content of a voluntary consolidation plan and the process for approval.

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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 and requires the department to give funding priority to construction projects that involve the physical restricting of 2 or more community water systems, as specified, when it is shown that the consolidation would further specified goals.

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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.

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This bill also would make technical, conforming changes regarding a reporting duty of the Strategic Growth Council.

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

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

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begin insert SECTION 1. end insert   

end insert

begin insert Article 13 (commencing with Section 116756) is
added to Chapter 4 of Part 12 of Division 104 of the end insert begin insert Health and
Safety Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 13. end insert   Voluntary Consolidation

 

begin insert 116756. end insert   

For purposes of this article the following definitions
apply:

(a) “Assuming water system” means a public water system that
obtains legal ownership of another public water system or systems
pursuant to Section 116757 and has a permit to operate pursuant
to Section 116525.

(b) “Subsumed water system” means a public water system that
transfers legal ownership to an assuming water system.

begin insert 116757. end insert   

An assuming water system may voluntarily consolidate
with another water system. The assuming water system shall file
a written plan for voluntary consolidation with the department
that includes, but is not limited to, a list of the current deficiencies
in the subsumed water system, planned remedies to fix the current
deficiencies, and a timeline for correction of the subsumed water
system. The department shall have 60 days to approve the voluntary
consolidation plan. If the department does not disapprove the
voluntary consolidation plan within 60 days, the plan shall be
deemed approved. If an assuming water system begins voluntary
consolidation pursuant to an approved voluntary consolidation
plan, the assuming water system shall not be liable for any good
faith, reasonable effort to assume possession of and operate the
subsumed water system in compliance with the plan, this chapter
and other applicable laws and regulations.

begin insert 116758. end insert   

The department shall adopt regulations relating to
the required content of a voluntary consolidation plan and the
process for approval.

end insert

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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 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:

(1) Give priority to funding projects in disadvantaged
communities.

(2) Promote service delivery alternatives that improve efficiency
and afford ability 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 service delivery options
will help affected agencies, communities, and the state to meet all
of the following goals:

(A) Improvement in the quality of water delivered.

(B) Improvement in the reliability of water delivery.

(C) Reduction in the cost of drinking water for ratepayers.

(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 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 and the department may increase priority of the
application.

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, and 75129. 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, and
75129.

(e) (1) No later than July 1, of each year, 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.

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