Bill > AB428

This bill amends existing law to expand the ability of water corporations, mutual water companies, and public agencies to enter into joint powers agreements (JPAs) for insurance and risk pooling purposes. Specifically, the bill allows water corporations to join JPAs for insurance coverage, but only if a mutual water company is already part of the agreement and the JPA meets certain strict requirements, such as being 100% reinsured with no joint liability among members. The bill requires water corporations seeking to join a JPA to first submit an information filing to the Public Utilities Commission (PUC) detailing their historical insurance costs. The PUC must then evaluate whether the proposed JPA provides greater benefits to customers compared to the corporation's existing insurance policy. If a water corporation joins a JPA, it must ensure that any cost savings or expanded insurance coverage is used to reduce rates or improve service for California customers. Additionally, the water corporation must submit an annual report to the PUC and the JPA detailing the estimated savings and how those savings were used to benefit customers. The bill aims to provide more flexibility for water corporations in managing insurance and risk while maintaining consumer protections.

Budget and Finance, Business and Industry, Government Affairs, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB428