Bill Text: CA AB1250 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Water and sewer system corporations: consolidation of service.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2021-10-08 - Chaptered by Secretary of State - Chapter 713, Statutes of 2021. [AB1250 Detail]
Download: California-2021-AB1250-Amended.html
Bill Title: Water and sewer system corporations: consolidation of service.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2021-10-08 - Chaptered by Secretary of State - Chapter 713, Statutes of 2021. [AB1250 Detail]
Download: California-2021-AB1250-Amended.html
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Amended
IN
Senate
July 05, 2021 |
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Amended
IN
Assembly
May 24, 2021 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 1250
| Introduced by Assembly Member Calderon |
February 19, 2021 |
An act to add Chapter 2.7 (commencing with Section 2721) to Part 2 of Division 1 of the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1250, as amended, Calderon.
Water and sewer system corporations: consolidation of service.
The Public Utilities Act prohibits, with certain exemptions, any public utility from selling, leasing, assigning, mortgaging, or otherwise disposing of or encumbering specified property necessary or useful in the performance of the public utility’s duties to the public without first, for qualified transactions valued above $5,000,000, securing an order from the Public Utilities Commission authorizing it to do so or, for qualified transactions valued at $5,000,000 or less, filing an advice letter and obtaining approval from the commission.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems systems, which include small
community water systems, and imposes on the State Water Resources Control Board related regulatory responsibilities and duties. Existing law authorizes the state board to order consolidation of public water systems where a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water, as provided.
This bill, the Consolidation for Safe Drinking Water Act of 2021, would authorize a water or sewer system corporation to file an application and obtain approval from the commission through an order authorizing the water or sewer system corporation to consolidate with a public
small community water system or state small water system. system identified as failing or at risk of failing by the state board. The bill would require the commission to approve or deny the application within 8 12 months, except as provided. The bill would establish the Consolidation For Safe Drinking Water Fund, with all moneys available, upon appropriation, to the commission in order to process the applications and cover any associated regulatory costs. The bill would require a water or sewer system corporation to pay a fee of $10,000 when filing an application pursuant to the above provision
and would require the fee to be deposited into the fund.
For a consolidation valued at $5,000,000 or less, the bill would authorize a water or sewer system corporation to instead file an advice letter and obtain approval from the commission through a resolution authorizing the water or sewer system corporation to consolidate with a public small community water system or state small water system. system identified as failing or at risk of failing by the state board. The bill would authorize the executive director of the commission or the director of the division of the commission having
regulatory jurisdiction over the water or sewer system corporation to approve an uncontested advice letter, and would require the commission to approve or deny an advice letter within 120
180 days, except as provided.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) This act shall be known, and may be cited, as the Consolidation for Safe Drinking Water Act of 2021.(b) The Legislature finds and declares all of the following:
(1) Several public small community water systems and state small water systems in the state remain out of compliance with water quality standards established for various contaminants.
(2) Operation
of public small community water systems presents opportunities for scale economies that could be used to implement available technologies to comply with applicable water quality standards.
(3) Facilitating the consolidation of public small community water systems and state small water systems that consistently fail to provide an adequate supply of safe drinking water would help to achieve these scale economies to provide benefits to the residents of California.
(c) It is the intent of the Legislature to promote timely consolidation of water systems to provide an adequate supply of safe drinking water for all residents of California.
SEC. 2.
Chapter 2.7 (commencing with Section 2721) is added to Part 2 of Division 1 of the Public Utilities Code, to read:CHAPTER 2.7. Consolidation for Safe Drinking Water Act of 2021
2721.
(a) For purposes of this section, the following terms have the following meanings:(1) “Consolidate” means to join two or more public small community water systems, state small water systems, or affected residences not served by a public small community water system
or state small water system into a single public consolidated water system.
(2) “Public water system” “Small community water system” has the same meaning as set forth in Section 116275 of the Health and Safety Code.
(3) “State small water system” has the same meaning as set forth in Section 116275 of the Health and Safety Code.
(b) (1) A water or sewer system corporation may file an application and obtain approval from the commission through an order authorizing that water or sewer system corporation to consolidate with a public small community water system or state small water system. system identified as failing or at risk of failing by the State Water Resources Control Board.
(2) The commission shall approve or deny an application filed pursuant to paragraph (1) within eight
12 months of its filing, unless the commission makes a written determination that the deadline cannot be met, including findings as to the reason, and issues an order extending the deadline by up to four months. The commission may grant additional extensions of four months or less consistent with this paragraph.
(3) A water or sewer system corporation shall submit a fee of ten thousand dollars ($10,000) when filing an application for authority to complete a consolidation made pursuant to paragraph (1).
(4) All moneys collected pursuant to paragraph (3) shall be deposited into the Consolidation For Safe Drinking Water Fund, established pursuant to Section 2722.
(c) (1) (A) For a consolidation valued at five million dollars ($5,000,000) or less, a water or sewer system corporation may file an advice letter and obtain approval from the commission through a resolution authorizing that water or sewer system corporation to consolidate with a public
small community water system or state small water system. system identified as failing or at risk of failing by the State Water Resources Control Board.
(B) If an advice letter filed pursuant to this paragraph is uncontested, approval may be given by the executive director or the director of the division of the commission having regulatory jurisdiction over the water or sewer system corporation.
(C) Absent incomplete documentation, the commission shall approve or deny the advice letter within 120
180 days of its filing by the applicant water or sewer system corporation corporation, if the advice letter is not contested, unless the executive director makes a written determination that the deadline cannot be met, including findings as to the reason, and issues a response extending the deadline by up to 60 days. The executive director may grant additional extensions of 60 days or less consistent with this subparagraph.
(2) For a consolidation valued at five million dollars ($5,000,000) or less, the commission may designate a different procedure if it determines that the consolidation warrants a more comprehensive review than the
advice letter procedure described in paragraph (1) provides.
(d) For purposes of a consolidation pursuant to either subdivision (b) or (c), the commission shall prioritize cases in which a water or sewer system corporation consolidates with a public small community water system or state small water system that is subject to a citation issued pursuant to Section 116650 of the Health and Safety Code or a compliance order issued pursuant to Section 116655 of the Health and Safety Code for failure to meet primary or secondary drinking water standards, as defined in Section 116275 of the Health and Safety Code.
(e) A water or sewer system corporation seeking to consolidate with a public small community water system or state small water system pursuant to this section shall give adequate public notice and provide adequate opportunities for public participation, as determined by the commission.
(f) This section does not require a public small community water system or state small water system that is not subject to the jurisdiction, control, and regulation of the commission to obtain authorization from the commission
before consolidating with a public small community water system or state small water system.
