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<ns0:Id>20250SB__129198AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-24</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Gonzalez</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Gonzalez</ns0:Name>
</ns0:Legislator>
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<ns0:Title> An act to amend Sections 14305, 14306, and 14307 of, and to add Section 14308 to, the Corporations Code, and to add Section 116351 to the Health and Safety Code, relating to water.</ns0:Title>
<ns0:RelatingClause>water</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Mutual water companies.</ns0:Subject>
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<ns0:DigestText>
<html:p>Under existing law, a mutual water company is defined as a corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for irrigation or domestic purposes that provides in its articles or bylaws that the water shall be sold, distributed, supplied, or delivered only to owners of its shares, as specified.</html:p>
<html:p>The Mutual Water Company Open Meeting Act requires a board of directors of a mutual water company that operates a public water system to allow an eligible person, as defined, to personally attend a meeting of the board, if the eligible person gave the board at least 24 hours’ advance written notice of their intent to personally attend the meeting. Existing law authorizes the board to allow an eligible person who
was denied attendance at a meeting for failure to provide this notice, or because the number of eligible persons having already provided notice of attendance exceeds the room capacity of the place of the meeting, to attend the meeting by teleconference. Existing law requires the board to provide to an eligible person attending a meeting by teleconference a copy of the documents to be discussed at the meeting, except as specified.</html:p>
<html:p>This bill would eliminate the 24-hour notice requirement for an eligible person to personally attend a meeting. The bill would authorize the board of directors of a mutual water company with less than 50 connections to use teleconferencing to provide any eligible person access to the meeting and would require a board of directors of a mutual water company with 50 or more connections to use teleconferencing to provide any eligible person access to the meeting.</html:p>
<html:p>Existing law requires the board of a
mutual water company that operates a public water system to adopt an annual budget, as specified, and also requires the board to contract with a public accountant, as specified, to conduct an annual review of the financial records and reports of the mutual water company. Existing law requires the minutes of a board meeting, as specified, the annual budget, the accounting report, and other specified documents to be provided to an eligible person upon request and upon reimbursement of the mutual water company’s costs for providing the document.</html:p>
<html:p>This bill would require those documents to be provided to an eligible person upon request in an electronic form or in a hard copy. The bill would authorize a mutual water company to require an eligible person who requests a hard copy of those documents to pay a fee for the direct costs of duplication, but would prohibit a mutual water company from charging a fee for providing those documents electronically. The bill would
require the mutual water company to display on the mutual water company’s internet website detailed information on how an eligible person can request those documents, as specified.</html:p>
<html:p>Existing law requires eligible persons to be given notice of the time and place of a meeting of the board of directors at least 4 days prior to the meeting, except as specified.</html:p>
<html:p>This bill would also require the notice of the meeting to be posted on the mutual water company’s internet website, as specified, and would require notice of the meeting and the agenda to be distributed by electronic means to specified eligible persons 4 days prior to the meeting.</html:p>
<html:p>Existing law defines eligible persons for purposes of these provisions to include various persons, including an elected official of a city or county who represents people who receive drinking water directly from the mutual water company on a retail
basis.</html:p>
<html:p>This bill would also include within that definition, a federal or state official who represents people who receive drinking water directly from the mutual water company on a retail basis, and would include a representative of any of those elected officials.</html:p>
<html:p>Existing law requires every public water system, as a condition of its operating permit, to annually prepare a consumer confidence report and mail or deliver a copy of that report to each customer, except as specified.</html:p>
<html:p>This bill would require a mutual water company to make a downloadable electronic copy of its consumer confidence report available to the public on its internet website. The bill would also require the mutual water company to make a good faith effort to notify a consumer who is served by the public water system, but who is not a bill-paying customer of the report using a mix of methods appropriate to the
particular public water system, as specified. The bill would require a mutual water company to annually send a summary to the State Water Resources Control Board summarizing its efforts to provide notice of the report to those consumers and would also require the mutual water company to post that summary on its internet website, as provided.</html:p>
<html:p>The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties relating to the regulation of drinking water to protect public health.</html:p>
<html:p>This bill would require the board to, on or before December 31, 2027, complete an assessment of mutual water companies that operate a public water system, with a focus on those serving disadvantaged and low-income communities. The bill would require the assessment to include, among other things, an assessment of compliance history with
state drinking water standards by a representative sample of mutual water companies serving disadvantaged and low-income communities. The bill would also require the board to, among other things, host public hearings in disadvantaged and low-income communities served by mutual water companies to receive community input to inform the assessment, as provided. The bill would require mutual water companies to cooperate with the board in completing the assessment and to reasonably attempt to furnish all information and feedback requested by the board, as provided. The bill would require the board to post the assessment on its internet website and to provide the assessment to the Legislature.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_135467F4-7D5C-4242-9B1C-F520E9E3517F">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 14305 of the
<ns0:DocName>Corporations Code</ns0:DocName>
is amended to read:
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<ns0:Num>14305.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section shall be known, and may be cited, as the Mutual Water Company Open Meeting Act.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section shall only apply to a mutual water company that operates a public water system.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A board of directors of a mutual
water company shall allow an eligible person to personally attend a meeting of the board.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notwithstanding any other law, the board of directors of a mutual water company with less than 50 connections may use teleconferencing to provide any eligible person access to the
meeting. A board of directors of a mutual water company with 50 or more connections shall use teleconferencing to provide any eligible person access to the meeting. A teleconferenced meeting or proceeding shall comply with this section and all other applicable provisions of law relating to a specific type of meeting or proceeding conducted by a mutual water company.
Upon request, the board shall provide to an eligible person attending a meeting by teleconference, before the meeting begins, an electronic copy or photocopy of all documents not related to an executive session to be discussed at the meeting. If the eligible person requests a photocopy of the documents, the board may require the eligible person to pay a fee to cover the direct costs of duplication. The board shall not charge a fee for providing an electronic copy of the documents. A board of directors of a mutual water company shall not prohibit an eligible person from attending a meeting of the board either in
person or by teleconference except as provided by paragraph (2).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For purposes of this subdivision, the term “teleconference” means, to the extent it is technologically feasible, any electronic means, that includes either audio or video or both, that allows an eligible person to hear a meeting and verbally interact with the board, including, but not limited to, a telephone, cellular telephone with speaker phone technology, or computer, or a device using internet-based video or audio conference technology.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A board of directors of a mutual water company shall only meet in executive session during a meeting. A
board may prohibit an eligible person from attending an executive session to consider pending or potential litigation, matters relating to the formation of contracts with third parties, including matters relating to the potential acquisition of real property or water rights, member or shareholder discipline, personnel matters, or to meet with a member or shareholder, upon the member or shareholder’s request, regarding the member or shareholder’s payment of assessments, as specified in Section 14303.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The board of directors of a mutual water company shall meet in executive session, if requested by a member or shareholder who may be subject to a fine, penalty, or other form of discipline, and the member shall be entitled to attend the executive session.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An eligible person shall be entitled to attend a teleconference meeting, as specified in paragraph (3) of subdivision (o),
or the portion of the teleconference meeting that is open to eligible
persons. The teleconference meeting or portion of the meeting that is open to eligible persons shall be audible to the eligible person in a location specified in the notice of the meeting.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any matter discussed in executive session shall be generally noted in the minutes of the meeting at which the executive session occurred.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any meeting of the board of directors of a mutual water company, conducted on or after January 1, 2014, other than an executive session, shall be available to eligible persons within 30 days of the meeting. The minutes, proposed minutes, or summary minutes shall be provided to any eligible person upon request
in an electronic form or in a hard copy pursuant to Section 14307.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The annual budget required in Section 14306 shall be available to eligible persons within 30 days of the meeting at which the budget was adopted. The budget shall be provided to any eligible person upon request in an electronic form or in a hard copy pursuant to Section 14307.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Unless the bylaws provide for a longer period of notice, eligible persons shall be given notice of the time and place of a meeting as defined in subdivision (o), except for an emergency meeting, at least four days prior to the meeting. Notice shall be given by posting the notice on the mutual water company’s internet website in a clear manner and in an easily navigable location, and by posting the notice in a prominent, publicly accessible place or places within the territory served by the mutual water
company. Notice shall also be given by mail or electronic means to any eligible person who had requested notification of board meetings, at the address or email address requested by the eligible person. The board may require eligible persons requesting notice by mail
to pay the direct costs of reproduction and mailing of the notice in advance. The board shall not charge a fee for providing the notice by electronic means. Notice may also be given by mail, by delivery of the notice to each unit served by the mutual water company, or, with the consent of the eligible person, by electronic means. The notice shall contain the agenda for the meeting.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Detailed information on how an eligible person can request to receive notification of board meetings and agendas prior to the meetings shall be displayed on the mutual water company’s internet website in a clear manner and in
an easily navigable location.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The notice and agenda described in paragraph (1) shall be distributed by electronic means to eligible persons defined in subparagraph (C) of paragraph (1) of subdivision (o), four days prior to the meeting.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
An emergency meeting of the board may be called by the chief executive officer of the mutual water company, or by any two members of the board of directors other than the chief executive officer, if there are circumstances that could not have been reasonably foreseen which require immediate attention and possible action by the board, and which of necessity make it impracticable to provide notice as required by this section.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The board of directors of a mutual water company shall permit any eligible person to speak at any meeting of the mutual water
company or the board of directors, except for any portion of a meeting that is held in executive session outside the presence of eligible persons. A reasonable time limit for all eligible persons to speak to the board of directors or before a meeting of the mutual water company shall be established by the board of directors.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as described in paragraphs (2) to (4), inclusive, the board of directors of the mutual water company shall not discuss or take action on any item at a nonemergency meeting unless the item was placed on the agenda included in the notice that was posted and distributed pursuant to subdivision (f). This subdivision does not prohibit an eligible person who is not a member of the board from speaking on issues not on the agenda.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), a member of the board of directors, mutual water company officers,
or a member of the staff of the mutual water company, may do any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Briefly respond to statements made or questions posed by a person speaking at a meeting as described in subdivision (h).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Ask a question for clarification, make an announcement, or make a brief report on his or her own activities, whether in response to questions posed by an eligible person or based upon his or her own initiative.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), the board of directors or a member of the board of directors, subject to rules or procedures of the board of directors, may do any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Provide a reference to, or provide other resources for factual information to, the mutual water company’s officers or staff.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Request the mutual water company’s officers or staff to report back to the board of directors at a subsequent meeting concerning any matter, or take action to direct the mutual water company’s officers or staff to place a matter of business on a future agenda.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Direct the mutual water company’s officers or staff to perform administrative tasks that are necessary to carry out this subdivision.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), the board of directors may take action on any item of business not appearing on the agenda posted and distributed pursuant to subdivision (f) under any of the following conditions:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Upon a determination made by a majority of the board of directors present at the meeting that an emergency situation
exists. An emergency situation exists if there are circumstances that could not have been reasonably foreseen by the board, that require immediate attention and possible action by the board, and that, of necessity, make it impracticable to provide notice.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Upon a determination made by the board by a vote of two-thirds of the members present at the meeting, or, if less than two-thirds of total membership of the board is present at the meeting, by a unanimous vote of the members present, that there is a need to take immediate action and that the need for action came to the attention of the board after the agenda was posted and distributed pursuant to subdivision (f).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The item appeared on an agenda that was posted and distributed pursuant to subdivision (f) for a prior meeting of the board of directors that occurred not more than 30 calendar days before the date that action
is taken on the item and, at the prior meeting, action on the item was continued to the meeting at which the action is taken.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Before discussing any item pursuant to this paragraph, the board of directors shall openly identify the item to the members in attendance at the meeting.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other law, the board of directors shall not take action on any item of business outside of a meeting.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Notwithstanding any other provision of law, the board of directors shall not conduct a meeting via a series of electronic transmissions, including, but not limited to, electronic mail, except as specified in subparagraph (B).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Electronic transmissions may be used as a method of conducting an
emergency meeting if all members of the board, individually or collectively, consent in writing to that action, and if the written consent or consents are filed with the minutes of the meeting of the board. These written consents may be transmitted electronically.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An eligible person may bring a civil action for declaratory or equitable relief for a violation of this section by a mutual water company for which they are
defined as an eligible person for a judicial determination that an action taken by the board is null and void under this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Prior to the commencement of an action pursuant to paragraph (1), the eligible person shall make a demand on the board to cure or correct the action alleged to be taken in violation of this section. The demand shall be in writing, and submitted within 90 days from the date the action was taken. The demand shall state the challenged action of the board and the nature of the alleged violation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Within 30 days of receipt of the demand, the board shall cure or correct the challenged action and inform the demanding party in writing of its actions to cure or correct, or inform the demanding party in writing of its decision not to cure or correct the challenged action.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Within 15 days of receipt of the written notice of the board’s decision to cure or correct or not to cure or correct, or within 15 days of the expiration of the 30-day period to cure or correct, whichever is earlier, the demanding party shall commence the action pursuant to paragraph (1). If the demanding party fails to commence the action pursuant to paragraph (1), that party shall be barred from commencing the action thereafter.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
A board action that is alleged to have been taken in violation of this section shall not be determined to be void if the action taken was in substantial compliance with this section.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
The fact that the board of directors of a mutual water company takes subsequent action to cure or correct an action taken pursuant to this section shall not be construed as, or admissible as evidence of, a violation of this section.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
An eligible person who prevails in a civil action to enforce
their rights pursuant to this section shall be entitled to reasonable attorney’s fees and court costs. A prevailing mutual water company shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or without foundation.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
As used in this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Eligible person” means a person who is any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A shareholder or member of the mutual water company.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A person who is an occupant, pursuant to a lease or a rental agreement, of commercial space or a dwelling unit to which the mutual water company sells, distributes, supplies, or delivers drinking water.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A
federal, state, county, or city elected official, or their representative, who represents people who receive drinking water directly from the mutual water company on a retail basis.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Any other person eligible to participate in the mutual water company’s meetings under provisions of the company’s articles or bylaws.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Item of business” means any action within the authority of the board, except those actions that the board has validly delegated to any other person or persons, officer of the mutual water company, or committee of the board comprising less than a majority of the directors.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Meeting” means either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A congregation of a majority of the members of the board at the same time and place to
hear, discuss, or deliberate upon any item of business that is within the authority of the board.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A teleconference in which a majority of the members of the board, in different locations, are connected by electronic means, through audio or video or both. A teleconference meeting shall be conducted in a manner that protects the rights of members of the mutual water company and otherwise complies with the requirements of this title. The notice of the teleconference meeting shall identify at least one physical location so that members of the mutual water company may attend and at least one member of the board of directors or a person designated by the board shall be present at that location. Participation by board members in a teleconference meeting constitutes presence at that meeting as long as all board members participating in the meeting are able to hear one another and members of the mutual water company speaking on matters before the
board.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Mutual water company” means a mutual water company, as defined in Section 14300, that operates a public water system, as defined in Section 14300.5.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 14306 of the
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is amended to read:
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<html:p>
(a)
<html:span class="EnSpace"/>
The board of a mutual water company that operates a public water system shall adopt, in an open meeting, an annual budget on or before the start of each fiscal year of the mutual water company.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The board of a mutual water company that operates a public water system shall contract with a certified public accountant or public accountant to conduct an annual review of the financial records and reports of the mutual water company. The review shall be subject to generally accepted accounting standards.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In
accordance with Section 14307, an eligible person may request an electronic copy or hard copy of the accounting report prepared pursuant to subdivision (b).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, the term “eligible person” has the same meaning as that term is defined in subdivision (o) of Section 14305.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 14307 of the
<ns0:DocName>Corporations Code</ns0:DocName>
is amended to read:
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<ns0:Num>14307.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Unless its governing documents impose more stringent standards, a mutual water company that operates a public water system shall make the following records promptly available upon written request to an eligible person in an electronic form or in a hard copy:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Agendas and minutes of board meetings conducted on or after January 1, 2014.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A copy of an annual budget adopted pursuant to subdivision (a) of Section
14306.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A copy of an accounting report prepared pursuant to subdivision (b) of Section 14306.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A copy of any records reporting the results of a water quality test.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A copy of an annual report that has been distributed to the mutual water company’s shareholder or members.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A copy of the complaint log maintained pursuant to subdivision (a) of Section 64470 of Title 22 of the California Code of Regulations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any request for records pursuant to this subdivision shall be limited to the three calendar years preceding the written request for the records.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A mutual water company may require an eligible person who requests a hard copy of the documents described in paragraph (1) to pay a fee to the mutual water company for the direct costs of duplication. A mutual water company shall not charge a fee for providing the documents electronically.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Detailed information on how an eligible person can request to receive a copy of the documents described in paragraph (1) shall be displayed on the mutual water company’s internet website in a clear manner and in an easily navigable location.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For the purposes of this section, “eligible person” means a person who is any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A stockholder or member of the mutual water company.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A person who is an occupant, pursuant to a lease or a rental agreement, of commercial space or a dwelling unit to which the mutual water company sells, distributes, supplies, or delivers drinking water.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A federal, state, county, or city elected official, or their representative who represents people who receive drinking water directly from the mutual water company on a retail basis.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Any other person eligible to obtain copies of the records listed in subdivision (a) under provisions of the mutual water company’s articles or bylaws.
</html:p>
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<ns0:BillSection id="id_37F612F1-C060-48B3-BD7A-910D92C1A147">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 14308 is added to the
<ns0:DocName>Corporations Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_391F0DC8-459E-44BC-8F05-88A5C0936144">
<ns0:Num>14308.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A mutual water company that operates a public water system shall make available on its internet website a downloadable electronic copy of the mutual water company’s annual consumer confidence report prepared pursuant to Section 116470 of the Health and Safety Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A mutual water company shall annually mail or directly deliver one copy of the consumer confidence report to each customer.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A mutual water company shall make a good faith effort to notify a consumer who is served by the public water system, but who is not a bill-paying customer, including renters or workers, of the report using a mix of methods appropriate to the particular public
water system. These methods may include, but are not limited to, any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Mailing the report to postal patrons in metropolitan areas.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Advertising the availability of the report in the news media.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Publishing the report in a local newspaper.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Posting the report in public places, including cafeterias or lunchrooms of public buildings.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Delivering multiple copies of the report for distribution by single-biller customers, including apartment buildings or large private employers.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Delivery of the report to community organizations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The mutual water company shall annually send a summary to the State Water Resources Control Board summarizing its efforts to provide notice of the report to consumers who are not bill-paying customers as required by paragraph (1). The mutual water company shall also post the summary on its internet website in a clear manner and in an easily navigable location.
</html:p>
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 116351 is added to the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_893B8C6B-8C08-4294-BF53-B1D8A03D67B8">
<ns0:Num>116351.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The board shall, on or before December 31, 2027, conduct an assessment of mutual water companies that operate a public water system, with a focus on those serving disadvantaged and low-income communities. The assessment shall generally review compliance with drinking water standards, governance, transparency, quality of service, affordability, and adherence to the human right to water as provided in Section 106.3 of the Water Code. The assessment shall include, but is not limited to, the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An assessment of compliance history with state drinking water standards by a representative sample of mutual water companies serving disadvantaged and low-income communities.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
After conferring or contracting with appropriate experts, an assessment of the effectiveness of the Mutual Water Company Open Meeting Act (Section 14305 of the Corporations Code) in allowing public water systems end users to engage with decisionmakers, stay informed about water quality, and voice concerns about water quality or affordability.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For a representative sample of mutual water companies serving disadvantaged and low-income communities, an assessment of the frequency that eligible persons, as defined in Section 14305 of the Corporations Code, use the provisions of the Mutual Water Company Open Meeting Act, and whether barriers exist within the act for eligible persons to engage with the mutual water company.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An assessment of whether eligible persons have successfully enforced the requirements of the Mutual Water Company Open Meeting Act pursuant to
paragraph (1) of subdivision (k) of Section 14305 of the Corporations Code. In assessing this enforcement mechanism, the board shall provide recommendations for alternative enforcement options that may be more effective for eligible persons.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
After conferring or contracting with appropriate experts, an assessment of the efficacy, frequency of communication, and oversight history of mutual water companies by local area formation commissions as authorized by existing law.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
For a representative sample of mutual water companies serving disadvantaged and low-income communities, an assessment of compliance with subdivision (b) of Section 14301.3 of the Corporations Code.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A comparative analysis of the effectiveness, transparency, and oversight of mutual water companies with other current
governance models operating public water systems, with an emphasis on those mutual water companies serving disadvantaged and low-income communities.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the board finds, through the comparative analysis pursuant to subparagraph (A), that public water systems operated by mutual water companies are not in the best long-term interests of the drinking water end users, the board shall provide recommendations for possible governance alternatives and recommendations on how to transition to a possible successor public water system.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The board may include an assessment of whether the technical, managerial, and financial standards pursuant to Section 116600 may address any issues identified in the comparative analysis pursuant to subparagraph (A).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In completing the assessment pursuant to subdivision (a), the board
shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Engage a diverse group of issue area experts and stakeholders that reflect the geographic and climate diversity of the state, including community-based organizations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Consult with mutual water companies and their member shareholders and statewide associations composed of mutual water companies.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Consult with, and survey, tenants, workers, and other end users who drink the water provided by mutual water companies serving disadvantaged and low-income communities.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Host at least three public hearings in disadvantaged and low-income communities served by mutual water companies, held at various times to accommodate different work schedules, to receive community input to inform the assessment.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Upon completing the assessment pursuant to subdivision (a), the board shall post the assessment on its internet website and shall provide the assessment to the Legislature. The assessment shall be submitted to the Legislature in compliance with Section 9795 of the Government Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Mutual water companies shall cooperate with the board in completing the assessment and shall reasonably attempt to furnish all information and feedback requested by the board to the extent permitted by law.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, “mutual water company” means a mutual water company, as defined in Section 14300 of the Corporations Code, that operates a public water system, as defined in Section 14300.5 of the Corporations Code.
</html:p>
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