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	<ns0:Description>
		<ns0:Id>20250AB__042896CHP</ns0:Id>
		<ns0:VersionNum>96</ns0:VersionNum>
		<ns0:History>
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				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-05</ns0:ActionDate>
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				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
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				<ns0:ActionText>FILED</ns0:ActionText>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
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			<ns0:MeasureType>AB</ns0:MeasureType>
			<ns0:MeasureNum>428</ns0:MeasureNum>
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			<ns0:ChapterNum>151</ns0:ChapterNum>
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Blanca Rubio</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Blanca Rubio</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to amend Sections 990.8 and 6525 of the Government Code, relating to water corporations.</ns0:Title>
		<ns0:RelatingClause>water corporations</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Joint powers agreements: water corporations.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, if authorized by their governing bodies, by agreement to jointly exercise any power common to the contracting parties. Existing law authorizes 2 or more local public entities, or a mutual water company, as defined, and a public agency, to provide insurance, as specified, by a joint powers agreement. Existing law authorizes a mutual water company and a public agency to enter into a joint powers agreement for the purposes of risk pooling, as specified.</html:p>
			<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including water corporations.</html:p>
			<html:p>This bill would authorize a water corporation, as defined, a mutual water company, and one or more public agencies to provide insurance, as
			 specified, by a joint powers agreement. The bill would also authorize a water corporation, a mutual water company, and one or more public agencies to enter into a joint powers agreement for the purposes of risk pooling, as specified. The bill would prohibit the Public Utilities Commission from allowing a water corporation to join a joint powers agency for insurance coverage if there are no greater benefits to the customers of the water corporation than are provided by the water corporation’s current insurance policy. The bill would require the joint powers agency to be 100% reinsured with no joint and several liability, no assessments, and no
			 financial liability attributable to the participating members, as provided. If a water corporation enters into a joint powers agreement for the purposes of risk pooling, the bill would require the water corporation to submit an annual information filing to the Public Utilities Commission and the joint powers agency, as specified.</html:p>
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		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_64FB52FB-BE63-4191-BC57-ACFE6C975617">
			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 990.8 of the 
				<ns0:DocName>Government Code</ns0:DocName>
				 is amended to read:
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				<ns0:LawSection id="id_4ABDD900-65D6-4778-9F87-119D6510CFAA">
					<ns0:Num>990.8.</ns0:Num>
					<ns0:LawSectionVersion id="id_BDE38822-A9CA-4769-87B7-0007123CDADD">
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Any of the following may provide insurance authorized by this part or for any other purpose by any one or more of the methods specified in Section 990.4 by a joint powers agreement made pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Two or more local public entities.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								A mutual water company and a public agency, as authorized under subdivision (b) of Section 6525.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								A water corporation, a mutual water company, and one or more public agencies, as authorized under subdivision (b) of Section
						6525.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								If two or more hospital districts have joined together to pool their self-insurance claims or losses, any nonprofit corporation created pursuant to subdivision (p) of Section 32121 of the Health and Safety Code, and affiliated with a hospital district that is a party to the pool may participate in the pool.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								Two or more local public entities having the same governing board, a mutual water company and a public agency, or a water corporation, a mutual water company, and one or more public agencies, as authorized under subdivision (b) of Section 6525, may be coinsured under a master policy and the total premium may be prorated among those entities.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								The pooling of self-insured claims or losses among
						entities as authorized in subdivision (a) of Section 990.4 shall not be considered insurance nor be subject to regulation under the Insurance Code.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								Any liability or loss under a joint powers agreement for the pooling of self-insured claims or losses authorized by this part and provided pursuant to this section may, notwithstanding Section 620 of the Insurance Code or any other provision of law, be reinsured to the same extent and the same manner as insurance provided by an insurer.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								If a joint powers agreement authorized by this part or authorized pursuant to Section 6516 provides for the pooling of self-insured claims or losses among entities, if any peril insured or covered under contract has existed, and the joint powers authority or other parties to the pool have been liable for any period, however short, the agreement may provide that the party insured or covered under contract is not entitled to the return of premiums, contributions, payments, or advances so far as that particular risk is concerned.
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								For purposes of this section:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Mutual water company” has the same meaning as defined in Section 14300 of the Corporations Code.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Water corporation” has the same meaning as defined in Section 241 of the Public Utilities Code.
							</html:p>
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			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 6525 of the 
				<ns0:DocName>Government Code</ns0:DocName>
				 is amended to read:
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					<ns0:Num>6525.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								Notwithstanding any other provision of this chapter, a mutual water company may enter into a joint powers agreement with any public agency for the purpose of jointly exercising any power common to the contracting parties.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Notwithstanding any other provisions of this chapter, a mutual water company and a public agency, or a water corporation, a mutual water company, and one or more public agencies, may enter into a joint powers agreement for the purpose of risk pooling in accordance with Section 990.8, provided that the agreement shall ensure that no participating public agency becomes responsible for the underlying debts or liabilities of the joint
						powers agency, and shall indemnify any participating public agency against those debts and liabilities.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A joint powers agency established pursuant to this subdivision shall solely utilize any revenues it generates through the insurance provided to its members under this section for its necessary operating expenses, and to provide technical support, continuing education, safety engineering, and operational and managerial advisory assistance to its members for the purpose of reducing risk liabilities and furthering the technical managerial and financial capacity of those members.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								A
						water corporation shall not enter into a joint powers agreement for the purpose of risk pooling in accordance with Section 990.8, unless a mutual water company is already a party to that agreement and the joint powers agency is eligible, pursuant to subparagraph (B).
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								An eligible joint powers agency shall be 100 percent reinsured with no joint and several liability, no assessments, and no financial liability attributable to the participating members irrespective of whether they are public, nonprofit, or for-profit agencies.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								A joint
						powers agency created pursuant to this subdivision that includes a water corporation shall not join any other joint powers agencies or public agencies or exercise any powers, except as described in this subdivision.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								Before a water corporation can enter into a joint powers
						agreement pursuant to this subdivision, the water corporation shall submit an information filing to the Public Utilities Commission that includes three years of historical insurance costs and current-year estimated insurance costs.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								The Public Utilities Commission shall not allow a water corporation to join a joint powers agency for insurance coverage if there are no greater benefits to the customers of the water corporation than are provided by the water corporation’s current insurance policy.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								If a water corporation enters into a joint powers agreement pursuant to this subdivision, the water corporation shall ensure any cost savings or expansion of insurance coverage
						attributable to its membership in the joint powers agency shall be used solely to reduce rates, improve service, or both, for California customers of the water corporation.
							</html:p>
							<html:p>
								(7)
								<html:span class="EnSpace"/>
								If a water corporation enters into a joint powers agreement pursuant to this subdivision, the water corporation shall submit an annual information filing to the Public Utilities Commission and the joint powers agency that reports both of the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								The estimated level of savings resulting
						from its membership in the joint powers agency, including three years of historical insurance costs, estimated current-year insurance costs resulting from membership in the joint powers agency, and estimated current-year costs for obtaining comparable coverage on the private insurance market, if available.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								How the savings described in subparagraph (A) was used to benefit customers of the water corporation.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								For purposes of this section:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Mutual water company” has the same meaning as defined in Section 14300 of the Corporations Code.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Water corporation” has the same meaning as defined in Section 241 of the Public Utilities Code.
							</html:p>
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