CalMutuals is urging Senator Dianne Feinstein and Senator Kamala Harris to co-sponsor S. 1090, the Water and Agriculture Tax Reform Act of 2017 (the WATER Act).

Mutual Water Companies are member-owned water supply organizations categorized as 501(c)(12) not-for-profit entities. In order to maintain that not-for-profit status, current law requires that no less than 85 percent of the costs of water infrastructure projects are paid for by members themselves. This rule dis-incentivizes investment in the maintenance of existing infrastructure and the construction of new infrastructure.

If passed, the WATER Act would allow mutual water companies to use additional revenue from non-member sources to fund water infrastructure projects without jeopardizing the non-profit status. For instance, the bill would allow mutual water companies to generate additional revenue by selling excess land or leasing excess water rights and using the proceeds to improve service or invest in water-saving infrastructure improvements.

Please join our efforts by submitting this letter to Senator Feinstein and this letter to Senator Harris on your company’s letterhead.

For questions, please contact Susan@CalMutuals.org or call Susan at (714) 449-8403.