AB 2050 Summary

• Creates the Small System Water Authority Act of 2018, establishing a new category of public water agency to consolidate and operate chronically noncompliant small public water systems serving fewer than 10,000 people or having fewer than 3,000 service connections.

• Requires the State Water Resources Control Board to issue notices to cure by March 1, 2019, to water systems failing to meet drinking water standards for four consecutive quarters, with entities having 180 days to submit remediation plans due by January 1, 2024.

• Authorizes the state board to cause formation of small system water authorities by local agency formation commissions if remediation plans are rejected, with the state board appointing administrators to oversee formation and interim management.

• Provides for dissolution of noncompliant water corporations and mutual water companies, with compensation to owners/shareholders determined by distressed business valuations, and transfer of assets to the new authority.

• Authorizes state funding of up to $11.7 million for local agency formation commission implementation, $15 million for administrators, $13.3 million for authority startup assistance over three fiscal years, and $5.4 million for distressed business valuations.