Joint powers agreements: water corporations.

Plain English Breakdown

The official source material does not provide specific details about the structure and management of these agreements, leaving some aspects open to interpretation.

Water Corporations Can Join Insurance Groups

This law allows water companies to join with other groups for insurance purposes if it benefits customers and requires full reinsurance without shared liability.

What This Bill Does

• Allows water corporations, mutual water companies, and public agencies to form joint powers agreements for providing insurance.
• Permits these entities to enter into joint powers agreements specifically for risk pooling purposes.
• Requires the Public Utilities Commission not to allow a water corporation to join an insurance group if it doesn't benefit customers more than their current policy.
• Mandates that any joint powers agreement must be fully reinsured with no shared liability or financial burdens on participating members.
• Necessitates annual reports from water corporations joining such agreements to the Public Utilities Commission and the joint powers agency.

Who It Names or Affects

• Water corporations
• Mutual water companies
• Public agencies

Terms To Know

Joint Powers Agreement

An agreement between two or more public entities to work together on a specific task.

Risk Pooling

A system where multiple parties share risks and costs, often through insurance.

Limits and Unknowns

• The bill does not specify the exact details of how these agreements will be structured or managed.
• It is unclear what specific benefits must be shown for customers to justify joining an insurance group.
• There are no provisions mentioned about penalties if a water corporation fails to comply with reporting requirements.

Official Summary Text

AB 428, Blanca Rubio.
Joint powers agreements: water corporations.
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.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including water corporations.
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.

Current Bill Text

Download Bill PDF