Amended IN Assembly March 11, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 591Introduced by Assembly Member Cristina GarciaFebruary 14, 2019 An act to amend Section 71267 71265 of the Water Code, relating to municipal water districts. LEGISLATIVE COUNSEL'S DIGESTAB 591, as amended, Cristina Garcia. Central Basin Municipal Water District: board of directors.Existing law, the Municipal Water District Law of 1911, provides for the formation of municipal water districts and grants to those districts specified powers. Existing law permits a district to acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district, its inhabitants, or the owners of rights to water in the district. Existing law requires the board of directors of the Central Basin Municipal Water District to be composed of 8 directors until the directors elected at the November 8, 2022, election take office, when the board would be composed of 7 directors, as prescribed. Existing law requires the 3 directors appointed by the water purveyors, as specified, to live or work within the district and requires the term of the director selected by all cities that are water purveyors of the district from the nominees of cities an appointed director to be terminated if the appointed director no longer is employed by or a representative of a city. the appointing entity.This bill would require a director appointed by all water purveyor cities to live within a city that is a water purveyor of the district and would additionally provide for the termination of the term of that director if they no longer live within a city that is a water purveyor of the district. define representative for these purposes to be a consultant or contractor of an entity, or a board member of an entity that is a mutual water company.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 71265 of the Water Code is amended to read:71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections.SECTION 1.Section 71267 of the Water Code is amended to read:71267.(a)The general manager of the district shall notify each water purveyor of the district and provide a 60-day period during which the district will accept nominations for appointment of individuals to the board of directors.(b)Individuals nominated for appointment to the board of directors shall demonstrate eligibility and relevant technical expertise.(c)(1)The three directors appointed by the water purveyors shall be selected by the water purveyors of the district every four years as follows:(A)One director shall be selected by all large water purveyors from the nominees of large water purveyors. Each large water purveyor shall have one vote.(B)One director shall be selected by all cities that are water purveyors of the district from the nominees of cities. Each city shall have one vote.(C)One director shall be selected by all of the water purveyors of the district from any nominee. The vote of each purveyor shall be weighted to reflect the number of service connections of that water purveyor within the district. If the selection of a director under this subparagraph would result in a violation of paragraph (2), the first eligible candidate receiving the next highest number of votes shall be selected.(2)The appointment of directors pursuant to paragraph (1) shall not result in any of the following:(A)The appointment of three directors that are all employed by or representatives of entities that are all large water purveyors.(B)The appointment of three directors that are all employed by or representatives of entities that are all cities.(C)The appointment of three directors that are all employed by or representatives of entities that are all small water purveyors.(3)Each nominee for director who receives the highest number of votes cast for each office described in paragraph (1) is appointed as a director to the board of directors and shall take office in accordance with Section 71512. The general manager shall collect the votes and report the results to the water purveyors. Votes for an appointed director are public records.(d)(1)Each appointed director shall live or work within the district.(2)In addition to the requirement of paragraph (1), a director appointed pursuant to subparagraph (B)of paragraph (1) of subdivision (c) shall live within a city that is a water purveyor of the district.(e)In order to ensure continuity of knowledge, the directors appointed at the first purveyor selection shall classify themselves by lot so that two of them shall hold office until the selection of their successors at the first succeeding purveyor selection and one of them shall hold office until the selection of their successor at the second succeeding purveyor selection.(f)(1)The term of a director appointed pursuant to subparagraph (A) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a large water purveyor.(2)The term of a director appointed pursuant to subparagraph (B) of paragraph (1) of subdivision (c) is terminated if either of the following occur:(A)The appointed director no longer is employed by or a representative of a city.(B)The appointed director no longer lives within a city that is a water purveyor of the district.(3)The term of a director appointed pursuant to subparagraph (C) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a water purveyor.(g)(1)An appointed director shall not do any of the following:(A)Hold an elected office.(B)Hold more than 0.5 percent ownership in a company regulated by the Public Utilities Commission.(C)Hold more than one consecutive term of office on the board.(2)An appointed director shall be subject to all applicable conflict-of-interest and ethics provisions and shall recuse himself or herself from participating in a decision that could have a direct material benefit on the financial interests of the director.(h)A vacancy in an office of appointed director shall be filled in accordance with the selection process described in subdivisions (a) to (c), inclusive.(i)(1)An appointed director shall be eligible for all of the following:(A)Reimbursement for travel and conference expenses pursuant to the Central Basin Municipal Water District Administrative Code.(B)Compensation for up to 10 meetings per month at the per meeting rate provided by the Central Basin Municipal Water District Administrative Code.(C)Health insurance benefits, if those benefits are not provided by the directors employer.(2)An appointed director shall not be eligible to receive communication or car allowances. For purposes of this paragraph, car allowances does not include travel expenses incurred as described in paragraph (1).(3)An appointed director may waive the reimbursement and compensation described in paragraph (1) and may be required to reimburse their employer for any compensation received. Amended IN Assembly March 11, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 591Introduced by Assembly Member Cristina GarciaFebruary 14, 2019 An act to amend Section 71267 71265 of the Water Code, relating to municipal water districts. LEGISLATIVE COUNSEL'S DIGESTAB 591, as amended, Cristina Garcia. Central Basin Municipal Water District: board of directors.Existing law, the Municipal Water District Law of 1911, provides for the formation of municipal water districts and grants to those districts specified powers. Existing law permits a district to acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district, its inhabitants, or the owners of rights to water in the district. Existing law requires the board of directors of the Central Basin Municipal Water District to be composed of 8 directors until the directors elected at the November 8, 2022, election take office, when the board would be composed of 7 directors, as prescribed. Existing law requires the 3 directors appointed by the water purveyors, as specified, to live or work within the district and requires the term of the director selected by all cities that are water purveyors of the district from the nominees of cities an appointed director to be terminated if the appointed director no longer is employed by or a representative of a city. the appointing entity.This bill would require a director appointed by all water purveyor cities to live within a city that is a water purveyor of the district and would additionally provide for the termination of the term of that director if they no longer live within a city that is a water purveyor of the district. define representative for these purposes to be a consultant or contractor of an entity, or a board member of an entity that is a mutual water company.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Amended IN Assembly March 11, 2019 Amended IN Assembly March 11, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 591 Introduced by Assembly Member Cristina GarciaFebruary 14, 2019 Introduced by Assembly Member Cristina Garcia February 14, 2019 An act to amend Section 71267 71265 of the Water Code, relating to municipal water districts. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 591, as amended, Cristina Garcia. Central Basin Municipal Water District: board of directors. Existing law, the Municipal Water District Law of 1911, provides for the formation of municipal water districts and grants to those districts specified powers. Existing law permits a district to acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district, its inhabitants, or the owners of rights to water in the district. Existing law requires the board of directors of the Central Basin Municipal Water District to be composed of 8 directors until the directors elected at the November 8, 2022, election take office, when the board would be composed of 7 directors, as prescribed. Existing law requires the 3 directors appointed by the water purveyors, as specified, to live or work within the district and requires the term of the director selected by all cities that are water purveyors of the district from the nominees of cities an appointed director to be terminated if the appointed director no longer is employed by or a representative of a city. the appointing entity.This bill would require a director appointed by all water purveyor cities to live within a city that is a water purveyor of the district and would additionally provide for the termination of the term of that director if they no longer live within a city that is a water purveyor of the district. define representative for these purposes to be a consultant or contractor of an entity, or a board member of an entity that is a mutual water company. Existing law, the Municipal Water District Law of 1911, provides for the formation of municipal water districts and grants to those districts specified powers. Existing law permits a district to acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district, its inhabitants, or the owners of rights to water in the district. Existing law requires the board of directors of the Central Basin Municipal Water District to be composed of 8 directors until the directors elected at the November 8, 2022, election take office, when the board would be composed of 7 directors, as prescribed. Existing law requires the 3 directors appointed by the water purveyors, as specified, to live or work within the district and requires the term of the director selected by all cities that are water purveyors of the district from the nominees of cities an appointed director to be terminated if the appointed director no longer is employed by or a representative of a city. the appointing entity. This bill would require a director appointed by all water purveyor cities to live within a city that is a water purveyor of the district and would additionally provide for the termination of the term of that director if they no longer live within a city that is a water purveyor of the district. define representative for these purposes to be a consultant or contractor of an entity, or a board member of an entity that is a mutual water company. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 71265 of the Water Code is amended to read:71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections.SECTION 1.Section 71267 of the Water Code is amended to read:71267.(a)The general manager of the district shall notify each water purveyor of the district and provide a 60-day period during which the district will accept nominations for appointment of individuals to the board of directors.(b)Individuals nominated for appointment to the board of directors shall demonstrate eligibility and relevant technical expertise.(c)(1)The three directors appointed by the water purveyors shall be selected by the water purveyors of the district every four years as follows:(A)One director shall be selected by all large water purveyors from the nominees of large water purveyors. Each large water purveyor shall have one vote.(B)One director shall be selected by all cities that are water purveyors of the district from the nominees of cities. Each city shall have one vote.(C)One director shall be selected by all of the water purveyors of the district from any nominee. The vote of each purveyor shall be weighted to reflect the number of service connections of that water purveyor within the district. If the selection of a director under this subparagraph would result in a violation of paragraph (2), the first eligible candidate receiving the next highest number of votes shall be selected.(2)The appointment of directors pursuant to paragraph (1) shall not result in any of the following:(A)The appointment of three directors that are all employed by or representatives of entities that are all large water purveyors.(B)The appointment of three directors that are all employed by or representatives of entities that are all cities.(C)The appointment of three directors that are all employed by or representatives of entities that are all small water purveyors.(3)Each nominee for director who receives the highest number of votes cast for each office described in paragraph (1) is appointed as a director to the board of directors and shall take office in accordance with Section 71512. The general manager shall collect the votes and report the results to the water purveyors. Votes for an appointed director are public records.(d)(1)Each appointed director shall live or work within the district.(2)In addition to the requirement of paragraph (1), a director appointed pursuant to subparagraph (B)of paragraph (1) of subdivision (c) shall live within a city that is a water purveyor of the district.(e)In order to ensure continuity of knowledge, the directors appointed at the first purveyor selection shall classify themselves by lot so that two of them shall hold office until the selection of their successors at the first succeeding purveyor selection and one of them shall hold office until the selection of their successor at the second succeeding purveyor selection.(f)(1)The term of a director appointed pursuant to subparagraph (A) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a large water purveyor.(2)The term of a director appointed pursuant to subparagraph (B) of paragraph (1) of subdivision (c) is terminated if either of the following occur:(A)The appointed director no longer is employed by or a representative of a city.(B)The appointed director no longer lives within a city that is a water purveyor of the district.(3)The term of a director appointed pursuant to subparagraph (C) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a water purveyor.(g)(1)An appointed director shall not do any of the following:(A)Hold an elected office.(B)Hold more than 0.5 percent ownership in a company regulated by the Public Utilities Commission.(C)Hold more than one consecutive term of office on the board.(2)An appointed director shall be subject to all applicable conflict-of-interest and ethics provisions and shall recuse himself or herself from participating in a decision that could have a direct material benefit on the financial interests of the director.(h)A vacancy in an office of appointed director shall be filled in accordance with the selection process described in subdivisions (a) to (c), inclusive.(i)(1)An appointed director shall be eligible for all of the following:(A)Reimbursement for travel and conference expenses pursuant to the Central Basin Municipal Water District Administrative Code.(B)Compensation for up to 10 meetings per month at the per meeting rate provided by the Central Basin Municipal Water District Administrative Code.(C)Health insurance benefits, if those benefits are not provided by the directors employer.(2)An appointed director shall not be eligible to receive communication or car allowances. For purposes of this paragraph, car allowances does not include travel expenses incurred as described in paragraph (1).(3)An appointed director may waive the reimbursement and compensation described in paragraph (1) and may be required to reimburse their employer for any compensation received. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 71265 of the Water Code is amended to read:71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections. SECTION 1. Section 71265 of the Water Code is amended to read: ### SECTION 1. 71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections. 71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections. 71265. For the purposes of this chapter:(a) District means the Central Basin Municipal Water District.(b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.(c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code.(d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system.(e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company.(e)(f) Small water purveyor means a public water system with less than 5,000 connections. 71265. For the purposes of this chapter: (a) District means the Central Basin Municipal Water District. (b) Large water purveyor means a public water system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years. (c) Public water system has the same meaning as in Section 116275 of the Health and Safety Code. (d) Relevant technical expertise means employment or consulting for a total period of at least five years, prior to the date of first appointment, in one or more positions materially responsible for performing services relating to the management, operations, engineering, construction, financing, contracting, regulation, or resource management of a public water system. (e) Representative means a consultant of an entity, a contractor of an entity, or a board member of an entity that is a mutual water company. (e) (f) Small water purveyor means a public water system with less than 5,000 connections. (a)The general manager of the district shall notify each water purveyor of the district and provide a 60-day period during which the district will accept nominations for appointment of individuals to the board of directors. (b)Individuals nominated for appointment to the board of directors shall demonstrate eligibility and relevant technical expertise. (c)(1)The three directors appointed by the water purveyors shall be selected by the water purveyors of the district every four years as follows: (A)One director shall be selected by all large water purveyors from the nominees of large water purveyors. Each large water purveyor shall have one vote. (B)One director shall be selected by all cities that are water purveyors of the district from the nominees of cities. Each city shall have one vote. (C)One director shall be selected by all of the water purveyors of the district from any nominee. The vote of each purveyor shall be weighted to reflect the number of service connections of that water purveyor within the district. If the selection of a director under this subparagraph would result in a violation of paragraph (2), the first eligible candidate receiving the next highest number of votes shall be selected. (2)The appointment of directors pursuant to paragraph (1) shall not result in any of the following: (A)The appointment of three directors that are all employed by or representatives of entities that are all large water purveyors. (B)The appointment of three directors that are all employed by or representatives of entities that are all cities. (C)The appointment of three directors that are all employed by or representatives of entities that are all small water purveyors. (3)Each nominee for director who receives the highest number of votes cast for each office described in paragraph (1) is appointed as a director to the board of directors and shall take office in accordance with Section 71512. The general manager shall collect the votes and report the results to the water purveyors. Votes for an appointed director are public records. (d)(1)Each appointed director shall live or work within the district. (2)In addition to the requirement of paragraph (1), a director appointed pursuant to subparagraph (B)of paragraph (1) of subdivision (c) shall live within a city that is a water purveyor of the district. (e)In order to ensure continuity of knowledge, the directors appointed at the first purveyor selection shall classify themselves by lot so that two of them shall hold office until the selection of their successors at the first succeeding purveyor selection and one of them shall hold office until the selection of their successor at the second succeeding purveyor selection. (f)(1)The term of a director appointed pursuant to subparagraph (A) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a large water purveyor. (2)The term of a director appointed pursuant to subparagraph (B) of paragraph (1) of subdivision (c) is terminated if either of the following occur: (A)The appointed director no longer is employed by or a representative of a city. (B)The appointed director no longer lives within a city that is a water purveyor of the district. (3)The term of a director appointed pursuant to subparagraph (C) of paragraph (1) of subdivision (c) is terminated if the appointed director no longer is employed by or a representative of a water purveyor. (g)(1)An appointed director shall not do any of the following: (A)Hold an elected office. (B)Hold more than 0.5 percent ownership in a company regulated by the Public Utilities Commission. (C)Hold more than one consecutive term of office on the board. (2)An appointed director shall be subject to all applicable conflict-of-interest and ethics provisions and shall recuse himself or herself from participating in a decision that could have a direct material benefit on the financial interests of the director. (h)A vacancy in an office of appointed director shall be filled in accordance with the selection process described in subdivisions (a) to (c), inclusive. (i)(1)An appointed director shall be eligible for all of the following: (A)Reimbursement for travel and conference expenses pursuant to the Central Basin Municipal Water District Administrative Code. (B)Compensation for up to 10 meetings per month at the per meeting rate provided by the Central Basin Municipal Water District Administrative Code. (C)Health insurance benefits, if those benefits are not provided by the directors employer. (2)An appointed director shall not be eligible to receive communication or car allowances. For purposes of this paragraph, car allowances does not include travel expenses incurred as described in paragraph (1). (3)An appointed director may waive the reimbursement and compensation described in paragraph (1) and may be required to reimburse their employer for any compensation received.