Bill Text: CA SB414 | 2019-2020 | Regular Session | Amended
Bill Title: Small System Water Authority Act of 2019.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-08-20 - August 20 hearing: Held in committee and under submission. [SB414 Detail]
Download: California-2019-SB414-Amended.html
Amended
IN
Assembly
June 25, 2019 |
Amended
IN
Senate
May 17, 2019 |
Amended
IN
Senate
April 04, 2019 |
Senate Bill | No. 414 |
Introduced by Senator Caballero |
February 20, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 56017.1 of the Government Code is amended to read:56017.1.
“Applicant” means a local agency or person or persons that submits an application, as defined by Section 56017.2, or the State Water Resources Control Board where an application is submitted by its appointed administrator pursuant to Section 78038 of the Water Code.SEC. 2.
Section 56017.2 of the Government Code is amended to read:56017.2.
“Application” means any of the following:SEC. 3.
Section 56069 of the Government Code is amended to read:56069.
“Proposal” means a desired change of organization or reorganization initiated by a petition, by resolution of application of a legislative body or school district, or by order of the State Water Resources Control Board in the case of an application including the formation of a small system water authority submitted pursuant to Section 78038 of the Water Code, for which a certificate of filing has been issued.SEC. 4.
Section 56653 of the Government Code, as amended by Section 1 of Chapter 43 of the Statutes of 2017, is amended to read:56653.
(a) If a proposal for a change of organization or reorganization is submitted pursuant to this part, the applicant shall submit a plan for providing services within the affected territory.SEC. 5.
Section 56658 of the Government Code is amended to read:56658.
(a) Any petitioner or legislative body desiring to initiate proceedings shall submit an application to the executive officer of the principal county.SEC. 6.
Section 56666.5 is added to the Government Code, to read:56666.5.
(a) This section applies only to a proposal that includes the formation of a small system water authority submitted pursuant to subdivision (a) of Section 78038 of the Water Code.SEC. 7.
Section 56895 of the Government Code is amended to read:56895.
(a) When a commission has adopted a resolution making determinations, any person or affected agency may file a written request with the executive officer requesting amendments to or reconsideration of the resolution. The request shall state the specific modification to the resolution being requested and shall state what new or different facts that could not have been presented previously are claimed to warrant the reconsideration. If the request is filed by a school district that received notification pursuant to Section 56658, the commission shall consider that request at a public hearing.SEC. 8.
Division 23 (commencing with Section 78000) is added to the Water Code, to read:DIVISION 23. Small System Water Authority Act of 2019
PART 1. Short Title
78000.
This division shall be known, and may be cited, as the Small System Water Authority Act of 2019.PART 2. Findings and Declarations
78001.
The Legislature finds and declares all of the following:PART 3. Definitions
78005.
Unless the context otherwise requires, the provisions of this part govern the construction of this division.78006.
“Affected county” means any county in which the land of a proposed authority is situated.78007.
“Authority” means a small system water authority formed pursuant to this division.78008.
“Board” means the board of directors of an authority.78009.
“Board of supervisors” means the board of supervisors of the principal county.78010.
“City” means any chartered or general law city.78011.
“County clerk” means the county clerk of the principal county.78012.
“Local agency formation commission” means a local agency formation commission of the principal county in which the proposed authority is located.78013.
“President” means the president of the board of directors of an authority.78014.
“Principal county” means the county in which the greater portion of the land of a proposed authority is situated.78015.
“Private corporation” means any private corporation organized under the laws of the United States or of this or any other state.78016.
“Public agency” means the state or any department or agency thereof, and a county, city, public corporation, or public district of the state, including an authority formed pursuant to this division.78017.
“Public water system” has the same meaning as defined in Section 116275 of the Health and Safety Code.78018.
“Secretary” means the secretary of an authority.78019.
“State board” means the State Water Resources Control Board.78020.
“Voter” means a voter as defined in Section 359 of the Elections Code.78021.
“Water” includes potable water and nonpotable water.78022.
“Water corporation” has the same meaning as defined in Section 241 of the Public Utilities Code.PART 4. Formation
CHAPTER 1. In General
78025.
The area proposed to be served by a proposed authority may consist of the service areas of one or more public agencies, private water companies, or mutual water companies that need not be contiguous. The area proposed to be served by a proposed authority may also include one or more parcels that need not be contiguous, either with each other or with the service areas of the public agencies, private water companies, or mutual water companies that will be served through the proposed authority.CHAPTER 2. Formation Proceedings
78030.
(a) No later than March 1, 2020, the state board shall provide written notice to cure to all public agencies, private water companies, or mutual water companies that meet both of the following criteria:78031.
An entity receiving a notice pursuant to subdivision (a) of Section 78030 shall respond to the state board and, if appropriate, the Public Utilities Commission, within 60 days of receiving the notice as to whether the violations of drinking water standards are remedied and the basis for that conclusion.78032.
(a) (1) If an entity receiving a notice pursuant to subdivision (a) of Section 78030 reports pursuant to Section 78031 that a violation of drinking water standards is continuing, the entity shall have 180 days from the date of the response filed with the state board pursuant to Section 78031 to prepare and submit a plan to the state board to permanently remedy a violation of drinking water standards within a reasonable time that is not later than January 1, 2025.78033.
(a) (1) No later than July 1, 2021, the state board shall provide written notice to each county, city, water district, private water company, or mutual water company located within a county where an entity receiving a notice under subdivision (a) of Section 78030 is located stating that the state board may consider the formation of an authority within that county and inviting other public water suppliers to consider a voluntary dissolution and subsequent inclusion into the authority that may be formed.(I)One thousand residents of the area served by the
public water system
(II)Ten percent of the service connections of the public water system.
(ii)If a petition is timely submitted under this subparagraph, the administrator shall deem that petition to be a request by the entity to be included within the authority. The administrator may deny the request if the administrator determines that including the entity would substantially increase the costs for other anticipated customers of the authority or if the administrator determines that the consolidation of the water systems cannot be accomplished in a successful manner in a reasonable period of time, taking into account economic, environmental, legal, social and technological factors.
78034.
(a) No later than 30 days after determining that an authority shall be formed pursuant to Section 78032, the state board shall notify a local agency formation commission of a county where the public water system that submitted the plan is located, and, if appropriate given the governance of the public water system, the Public Utilities Commission, that it has determined that the public water system shall be consolidated into an authority.78035.
(a) On or before March 1, 2022, the administrator, after consultation with the executive officer of the local agency formation commission, shall submit to the state board a conceptual formation plan that includes all of the following:78036.
(a) On or before March 1, 2021, the state board shall establish and publish a list of individuals who meet the qualifications in subdivision (e) to serve as administrators pursuant to this division.78037.
(a) (1) No later than 240 days after the state board issues a notice pursuant to paragraph (1) of subdivision (b) of Section 78034, the Public Utilities Commission shall order the dissolution of the public water system and the transfer of all assets of the water corporation subject to this paragraph to the authority formed by the local agency formation commission.78038.
(a) Within 180 days after the state board provides comments on the draft conceptual formation plan pursuant to subdivision (b) of Section 78035, the administrator shall submit an application for the dissolution and formation and proposed plan for service to the local agency formation commission for review and potential approval pursuant to Part 3 (commencing with Section 56650) of Division 3 of Title 5 of the Government Code. An application to form an authority shall include at least five public water systems, unless the administrator determines that the authority would be financially and operationally viable with fewer than five public water systems, and may include the following:78039.
Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to either of the following:78040.
(a) Annually for the first three years after the date of an authority’s formation by the local agency formation commission, an authority shall file a report with the local agency formation commission and state board as follows:78041.
(a) (1) Following the formation of the authorities, the Controller shall perform an audit of the fiscal and operational health of each authority. The Controller shall prepare and submit the results of the audits to the Legislature, no later than January 1, 2026, in the form of a report.78042.
(a) No later than January 1, 2026, the state board shall prepare and submit to the Legislature a report specifying the number of public water systems that, at any time between July 1, 2018, and January 1, 2025, were out of compliance with one or more state or federal primary drinking water standards on a running annual average. The report shall identify the public water systems that satisfy any of the following conditions:PART 5. Internal Organization
CHAPTER 1. Directors
78045.
(a) The initial board of an authority shall consist of an odd number of directors composed as follows:78046.
(a) A director shall be a resident of the area served by the authority. To the extent practicable, a director shall represent a division with equal population being served by the authority. If a director moves residence, as defined in Section 244 of the Government Code, outside of the area served by the authority, the director shall have 180 days after the move to reestablish a place of residence within the area served by the authority. If a director cannot establish a place of residence, it shall be presumed that a permanent change of residence has occurred and that a vacancy exists on the board of directors pursuant to Section 1770 of the Government Code.78047.
Notwithstanding Section 20201, a directorCHAPTER 2. The Board
78050.
(a) The board is the governing body of the authority.78051.
(a) The board shall exercise and perform all powers, privileges, and duties of an authority.78052.
Within 180 days of its initial meeting after formation, the board shall file a certificate with the Secretary of State that includes all of the following:CHAPTER 3. Officers and Employees
78055.
(a) At its first meeting, or as soon as practicable, the board shall appoint, by a majority vote, a secretary, treasurer, attorney, general manager, and auditor. The board, at any meeting, may appoint a deputy secretary and a deputy treasurer. The board shall define the duties of these officers and fix their compensation. Each officer shall serve at the pleasure of the board. A deputy director, deputy secretary, attorney, general manager, and auditor shall not be directors, but the secretary and treasurer may be directors.78056.
(a) The president and secretary, in addition to the duties imposed on them by law, shall perform any duties that may be imposed on them by the board.PART 6. Elections
78060.
Elections shall be conducted pursuant to the provisions of the Uniform District Election Law (Part 4 (commencing with Section 10500) of Division 10 of the Elections Code).PART 7. Powers and Purposes
CHAPTER 1. Powers Generally
78065.
An authority may exercise the powers that are expressly granted by this division or are necessarily implied.78066.
An authority may have perpetual succession. An authority may adopt a seal and alter it at pleasure.78067.
An authority may make contracts, employ labor, and do all acts necessary for the full exercise of its powers.78068.
(a) An authority may provide by ordinance for the pensioning of officers or employees, for the terms and conditions under which the pensions shall be awarded, and for the time and extent of service of officers or employees before the pensions shall be available to them.78069.
An authority may disseminate information concerning the rights, properties, and activities of the authority. The power shall not be construed as an exception to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).78070.
An authority may, by resolution, obtain membership in an association having for its purpose the furtherance of a subject relating to the powers and duties of the authority and for the interchange of information relating to those powers and duties. An authority may appropriate the funds necessary for these purposes.78071.
An authority may, by resolution of the board of directors spread on its minutes, change the name of the authority. Certified copies of the resolution changing the name of the authority shall be recorded in the office of the county recorder of every affected county and sent to the county clerk of every affected county and to the state board.78072.
Every person convicted of an infraction for a violation of any local ordinance or regulation adopted pursuant to this division shall be punished upon a first conviction by a fine not exceeding fifty dollars ($50) and for a second conviction within a period of one year by a fine of not exceeding one hundred dollars ($100) and for a third or any subsequent conviction within a period of one year by a fine of not exceeding two hundred fifty dollars ($250).78073.
(a) In order to enforce the provisions of any ordinance of the authority, including an ordinance fixing charges for the furnishing of commodities or services, the authority may correct any violation of an ordinance of the authority. The authority may also petition the superior court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate, restraining any person from the continued violation of any ordinance of the authority or for the issuance of an order stopping or disconnecting a service if the charges for that service are unpaid at the time specified in the ordinance.CHAPTER 2. Water
78075.
(a) An authority may acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water, including sewage and stormwater, for the beneficial use of the authority.78076.
(a) Pursuant to the notice, protest, and hearing requirements imposed by Section 53753 of the Government Code, an authority, by ordinance on or before the third Monday in August in each fiscal year, may fix a water standby assessment or availability charge in the authority or in any portion of the authority to which the authority makes water available, whether the water is actually used or not.78077.
(a) An authority may restrict the use of authority water during any emergency caused by drought, or other threatened or existing water shortage, and may prohibit the wastage of authority water or the use of authority water during periods for any purpose other than household uses or other restricted uses as the authority determines to be necessary. An authority may also prohibit use of authority water during these periods for specific uses that it finds to be nonessential.CHAPTER 3. Property
78080.
An authority may, within or without the authority, take real and personal property of every kind by grant, purchase, gift, device, or lease, and hold, use, enjoy, lease, or dispose of real and personal property of every kind.78081.
An authority may do all of the following:78082.
An authority may lease from any person, or public corporation or agency, with the privilege of purchasing or otherwise, all or any part of water storage, transportation, or distribution facilities, existing waterworks, or a waterworks system.78083.
An authority may exercise the right of eminent domain to take any property necessary to supply the authority or any portion of the authority with water. The authority, in exercising the power, shall, in addition to the damage for the taking, injury, or destruction of property, also pay the cost of removal, reconstruction, or relocation of any structure, railways, mains, pipes, conduits, wires, cables, or poles of any public utility that is required to be removed to a new location.78084.
An authority may construct works along and across any stream of water, watercourse, street, avenue, highway, canal, ditch, or flume, or across any railway that the route of the works may intersect or cross. The works shall be constructed in such a manner as to afford security for life and property, and the authority shall restore the crossings and intersections to their former state as near as may be, or in a manner so as not to have impaired unnecessarily their usefulness.CHAPTER 4. Contracts
78085.
Contracts mentioned in this chapter include those made with the United States under the Federal Reclamation Act of June 17, 1902, and all acts amendatory thereof or supplementary thereto, or any other act of Congress heretofore or hereafter enacted permitting cooperation.78086.
An authority may join with one or more public agencies, private corporations, or other persons for the purpose of carrying out any of the powers of the authority, and for that purpose may contract with any other public agencies, private corporations, or persons to finance acquisitions, construction, and operations.78087.
The contracts with other public agencies, private corporations, or persons may provide for contributions to be made by each party to the contract, for the division and apportionment of the expenses of the acquisitions and operations, and for the division and apportionment of the benefits, services, and products from the contract. The contracts may also provide for an agency to effect the acquisitions and to carry on the operations, and shall provide in the powers and methods of procedure for the agency the method by which the agency may contract. The contracts may contain other and further covenants and agreements as may be necessary or convenient to accomplish the purposes of the contract.CHAPTER 5. Controversies
78090.
An authority may sue and be sued, except as otherwise provided in this division or by law, in all actions and proceedings in all courts and tribunals of competent jurisdiction.78091.
An authority may commence, maintain, intervene in, and compromise, in the name of the authority, any action or proceeding involving or affecting the ownership or use of water or water rights within the authority, used or useful for any purpose of the authority, or a common benefit to lands within the authority or inhabitants of the authority.78092.
An action to determine the validity of any contract authorized by Chapter 4 (commencing with Section 78085) and any bonds, notes, or other evidences of indebtedness may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.78093.
All claims for money or damages against the authority are governed by Part 3 (commencing with Section 900) and Part 4 (commencing with Section 940) of Division 3.6 of Title 1 of the Government Code except as provided therein, or by other statutes or regulations expressly applicable to the authority.78094.
To carry out the purposes of this division, an authority shall have the power to commence, maintain, intervene in, defend, and compromise, in the name of the authority, or as a class representative of the inhabitants, property owners, taxpayers, water producers, or water users within the authority, or otherwise, and to assume the costs and expenses of any and all actions and proceedings now or hereafter begun to determine or adjudicate all or substantially all of the water rights of a basin or other hydrologic unit overlain, in whole or in part, by the authority, as between owners of or claimants to those rights, to prevent any interference with water or water rights used or useful to the lands, inhabitants, owners, operators, or producers within the authority, or to prevent the diminution of the quantity or quality of the water supply of the authority or the basin, or to prevent unlawful exportation of water from the authority or basin.78095.
An authority may employ counsel to defend any action brought against it or against any of its officers, agents, or employees on account of any claimed action or inaction involving any claimed injury, taking, damage, or destruction, and the fees and expenses involved in the defense shall be a lawful charge against the authority.78096.
If any officer, agent, or employee of the authority is held liable for any act or omission in their official capacity, except in case of actual fraud or actual malice, and any judgment is rendered, the authority shall pay the judgment without obligation for repayment by the officer, agent, or employee.PART 8. Financial Provisions
CHAPTER 1. Powers
78100.
Article 4 (commencing with Section 53500) and Article 4.5 (commencing with Section 53506) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code apply to an authority for the purpose of providing funds for the acquisition, construction, improving, or financing of any public improvement authorized by this division. For the purposes of Article 4 (commencing with Section 53500) and Article 4.5 (commencing with Section 53506) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, “property” shall refer to both land and improvements with the effect that ad valorem taxes or assessments levied by an authority to repay a general obligation bond may be levied upon both land and improvements if approved by the electorate.78101.
Any money belonging to an authority may be deposited or invested and drawn out as provided in Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, as that article may be amended. References in that article to “auditor” shall mean, for the purposes of an authority, the secretary of an authority.78102.
(a) An improvement district may be formed in an authority in the same manner as an improvement district is formed in an irrigation district pursuant to Part 7 (commencing with Section 23600) of Division 11. When formed, an improvement district shall be governed and have the same powers as an improvement district in an irrigation district pursuant to Part 7 (commencing with Section 23600) of Division 11.78103.
The authority may exercise the powers granted pursuant to Division 10 (commencing with Section 8500) of the Streets and Highways Code.CHAPTER 2. Financial Plan and Implementation
78110.
No later than one year after the date upon which an authority is formed, the administrator shall prepare and submit a capital improvement plan to the state board. The plan shall bring the authority into full compliance with drinking water standards within three years, which time may be extended by the state board for good cause.78111.
No later than 18 months after the date upon which an authority is formed, the authority shall levy an assessment, fee, charge, or special tax, in accordance with Articles XIII, XIII A, XIII C, and XIII D of the California Constitution, and any other applicable law, to fund the ongoing operations and maintenance of the public water system.CHAPTER 3. Fiscal Provisions
78115.
(a) Upon appropriation by the Legislature from the General Fund, or, to the extent funds are available from bond revenues or other sources, including federal, state, academic, or other public or private entities, the state board shall provide funding for an administrator pursuant to subdivision (d) of Section 78036, and for formation and startup costs of an authority for up to three fiscal years after formation of the authority, as follows:(b)
(c)