SB 414 Summary

• Creates the Small System Water Authority Act of 2019 to consolidate and improve small, noncompliant public water systems serving fewer than 3,000 connections or 10,000 people that fail to meet federal or state drinking water standards.

• Requires the State Water Resources Control Board to issue notices to noncompliant water systems by March 1, 2020, giving them 180 days to submit remediation plans due by January 1, 2025; if plans are rejected or not submitted, triggers formation of a small system water authority.

• Authorizes the State Water Resources Control Board to appoint an administrator to prepare formation plans and provide interim management; the Local Agency Formation Commission approves or denies authority formation and service plans.

• Establishes authority powers to acquire water systems, set rates, assess standby charges, restrict water use, and consolidate multiple systems; requires dissolution of water corporations and compensation to owners based on distressed business valuations.

• Appropriates up to $65,650,000 in state funding for administrator costs, authority startup expenses, distressed valuations, and dissolution of water systems; authorizes additional funding from Safe Drinking Water State Revolving Fund if needed.