AB 428: Joint powers agreements: water corporations.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, if authorized by their governing bodies, by agreement to jointly exercise any power common to the contracting parties. Existing law authorizes 2 or more local public entities, or a mutual water company, as defined, and a public agency, to provide insurance, as specified, by a joint powers agreement. Existing law authorizes a mutual water company and a public agency to enter into a joint powers agreement for the purposes of risk pooling, as specified.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including water corporations.

This bill would authorize a water corporation, as defined, a mutual water company, and one or more public agencies to provide insurance, as specified, by a joint powers agreement. The bill would also authorize a water corporation, a mutual water company, and one or more public agencies to enter into a joint powers agreement for the purposes of risk pooling, as specified. The bill would prohibit the Public Utilities Commission from allowing a water corporation to join a joint powers agency for insurance coverage if there are no greater benefits to the customers of the water corporation than are provided by the water corporation’s current insurance policy. The bill would require the joint powers agency to be 100% reinsured with no joint and several liability, no assessments, and no financial liability attributable to the participating members, as provided. If a water corporation enters into a joint powers agreement for the purposes of risk pooling, the bill would require the water corporation to submit an annual information filing to the Public Utilities Commission and the joint powers agency, as specified.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 1, 2025Chaptered by Secretary of State - Chapter 151, Statutes of 2025.
2. October 1, 2025Approved by the Governor.
3. September 9, 2025Enrolled and presented to the Governor at 3 p.m.
4. September 3, 2025In Assembly. Ordered to Engrossing and Enrolling.
5. September 3, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 1. Page 2461.).
6. August 20, 2025Read second time. Ordered to third reading.
7. August 19, 2025From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
8. July 8, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (July 7). Re-referred to Com. on APPR.
9. June 18, 2025From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 7. Noes 0.) (June 18). Re-referred to Com. on E., U & C.
10. May 14, 2025Referred to Coms. on L. GOV. and E., U & C.
11. May 6, 2025In Senate. Read first time. To Com. on RLS. for assignment.
12. May 5, 2025Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1424.)