Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2562

Introduced by Assembly Member Lowenthal

February 14, 2024

An act to amend Section 11643.3 of the Public Utilities Code, relating to municipal utility districts. An act to add Section 455.4 to the Public Utilities Code, relating to water corporations.


LEGISLATIVE COUNSEL'S DIGEST


AB 2562, as amended, Lowenthal. Municipal utility districts: arguments regarding district formation. Water corporations: rates: Santa Catalina Island.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including water corporations. 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. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
This bill would require rates charged by a water corporation for water service on Santa Catalina Island to be affordable. Because the provisions of the bill would be a part of the act and because a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

The Municipal Utility District Act governs the formation and governance of municipal utility districts. Existing law requires a board of supervisors, upon receiving a resolution or petition requesting it to call an election to determine whether a proposed district will be created, to call an election within the proposed district for that purpose and to elect the district’s first board of directors, as specified. Existing law authorizes the board of supervisors or any member or members of the board authorized by the board, or any individual voter or bona fide association of citizens entitled to vote on the district formation proposition, or any combination of those voters and associations of citizens, to file a written argument for or a written argument against the proposed district formation. If more than one argument for or more than one argument against the proposed district formation is filed with election officials, existing law requires those election officials to select one of the arguments for printing and distribution to the voters and specifies the order of preference and priority for selecting those arguments, as specified.

This bill would make nonsubstantive changes to the above-described provision involving selecting those arguments.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Section 455.4 is added to the Public Utilities Code, to read:

455.4.
 Rates charged by a water corporation for water service on Santa Catalina Island shall be affordable.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.Section 11643.3 of the Public Utilities Code is amended to read:
11643.3.

(a)If more than one argument for or more than one argument against the proposed district formation is filed with the election officials within the time prescribed, those election officials shall select one of the arguments for printing and distribution to the voters.

(b)In selecting the arguments, the election officials shall give preference and priority in the order named to the arguments of the following:

(1)The board of supervisors or a member or members of the board authorized by the board.

(2)Individual voters or bona fide associations of citizens or a combination of those voters and associations.