BILL ANALYSIS �
AB 1527
Page 1
Date of Hearing: May 21, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1527 (Perea) - As Amended: April 9, 2014
Policy Committee: Local
GovernmentVote:6-2
Environmental Safety and Toxic Materials 5-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes new requirements for programs administered
by the Department of Public Health (DPH) to fund small community
and other specified water systems. This bill also establishes
new requirements for programs administered by the Strategic
Growth Council to fund water conservation and system
consolidations. Specifically, this bill:
1)Requires DPH to review and consider specified documents and
recommendations made by the affected local agency formation
commission (LAFCO). Requires DPH to meet with the executive
officer of the affected LAFCO.
2)Requires DPH to promote service delivery alternatives
including water system and agency consolidations and the
extension of services to disadvantaged communities as
specified.
3)Requires, rather than authorizes, funding for feasibility
studies performed prior to a construction project to include
studies of service delivery alternatives if at least one of
the potentially affected agencies serves a disadvantaged
community, unless DPH makes a written determination that the
service delivery alternatives are not feasible.
4)Requires DPH to fund construction projects that include the
alternative service delivery option, unless DPH makes a
written determination that if is not feasible. Deletes the
provision authorizing CDPH to give priority to funding
construction projects that involve the physical restructuring
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of two or more community water systems, if at least one is a
small community water system that serves a disadvantaged
community.
5)Provides that if an applicant submits an application that
includes a service delivery alternative that will improve
efficiency and affordability of infrastructure and service
delivery, the applicant need not be a small community water
system.
6)Requires the Strategic Growth Council (SGC) to manage and
award Proposition 84 financial assistance to a city, county,
LAFCO, special district, nonprofit organization, or entities
in a joint powers agreement 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. Requires the SGC to give priority to
funding projects proposed by a disadvantaged community.
7)Provides that it is the intent of the Legislature to encourage
LAFCOs to focus on the consolidation, merger, or extension of
public water systems, especially those located in
disadvantaged communities, by seeking financial assistance.
FISCAL EFFECT
1)Increased ongoing annual costs in the $300,000 to $350,000
range for DPH to perform the additional application review
activities. Currently, DPH only administers the Safe Drinking
Water State Revolving Fund. This bill applies to all funding
programs. To the extent additional programs are created,
there will be additional costs.
2)Increased ongoing annual costs of less than $150,000 for the
SGC to develop guidelines and monitor programs (Proposition 84
funds).
COMMENTS
1)Purpose. According to the author, one of the best ways to
provide clean affordable drinking water delivery to small,
disadvantaged communities is to consolidate water systems or
extend services from another district. This bill requires DPH
to review and consider LAFCO and other local agency
recommendations when determining how the state will fund
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projects.
2)Background. Existing law directs DPH to give priority to
funding projects that encourage the consolidation of small
community water systems that serve disadvantaged communities.
This bill instead directs DPH to prioritize funding to promote
service delivery alternatives that improve efficiency and
affordability of infrastructure and service delivery. This
bill also requires funding for feasibility studies performed
prior to construction to include studies of service delivery
alternatives.
The SCG is tasked with coordinating the activities of member
state agencies to provide, fund, and distribute data and
information to local governments and regional agencies that
will assist in developing and planning sustainable
communities. The SCG is required to manage and award grants
and loans to support the planning and development of
sustainable communities.
This bill requires the SGC to manage and award Proposition 84
financial assistance 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. This bill requires the SGC to give
priority to funding projects proposed by a disadvantaged
community.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081