SB 1291: Mutual water companies.

California’s mutual water companies scored an important legislative win on May 14 when the state Senate Appropriations Committee defeated Senate Bill 1291 (Gonzalez). The bill would have imposed costly new requirements on member systems that duplicated programs already being carried out by the State Water Resources Control Board (SWRCB). 

This significant victory would not have been possible without our members’ support. Seventy water company members signed our opposition letter. Several members travelled to Sacramento and provided testimony before the Appropriations Committee and the Environmental Quality Committee during the bill’s second hearing. These efforts and CalMutuals’ advocacy were able to hold it back in the Suspense File.

SB 1417: Mutual water companies: assessments and water charges: notice.

CalMutuals secured critical amendments to Senate Bill 1417 (Pérez) at the June 24 Assembly Utilities and Energy Committee hearing when the Committee recommended extensive changes to the bill. Initial versions of SB 1417 would have required mutual water companies to disclose member personal data in public-facing rate notices, jeopardizing the privacy rights of residents served by these systems.

The remaining bill is substantially narrower than what was initially introduced. For mutual water companies proposing to adopt an assessment or increase rates by more than 20%, the bill requires a written explanation of the increase to be provided to shareholders and others who receive water service from the company. A public meeting with at least a 45-day advance notice must be scheduled to discuss the proposed assessment or rate increase. The notice must also outline the shareholders’ rights under existing law. The meeting venue and public notice requirements were made more flexible and workable for small systems. 

CalMutuals and over 70 of our member companies signed on to oppose this bill. Our Small Water Systems Warriors activated shareholders statewide. CalMutuals engaged directly with the Assembly Utilities and Energy Committee Chair and committee consultants and Assemblymember Harabedian’s office to flag the bill’s privacy risks. Those efforts resulted in amendments that preserve meaningful transparency for shareholders and water users while protecting sensitive personal data.