BILL NUMBER: AB 656	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2015

INTRODUCED BY   Assembly Member Cristina Garcia
    (   Coauthor:   Assembly Member  
Alejo   )

                        FEBRUARY 24, 2015

   An act to amend Sections 990.8 and 6525 of the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 656, as amended, Cristina Garcia. Joint powers agreements:
mutual water companies.
   The Joint Exercise of Powers Act authorizes 2 or more public
agencies, as defined, if authorized by their governing bodies, by
agreement to jointly exercise any power common to the contracting
parties, and specifically authorizes a mutual water company to enter
into a joint powers agreement with a public agency for these
purposes. Existing law authorizes local public entities, as defined,
to enter into a joint powers agreement for the purposes of providing
risk-pooling, as specified.
   This bill would specifically authorize  2 or more mutual
water companies, or 2 or more   a  mutual water
 companies   company  and  one or
more public agencies that operate a public water system, 
 a public agency  to participate in joint powers agreement
for  the provision of insurance and  risk-pooling, technical
support, and other similar services  for the purpose of reducing
risk liability  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 990.8 of the Government Code is amended to
read:
   990.8.  (a) Two or more local public entities,  two or
more mutual water companies, or two or more mutual water companies
and one or more public agencies that operate a public water system,
  or a mutual water company and a public agency, 
as authorized under subdivision (b) of Section 6525, by a joint
powers agreement made pursuant to Article 1 (commencing with Section
6500) of Chapter 5 of Division  7   7,  may
provide insurance authorized by this part or for any other purpose
by any one or more of the methods specified in Section 990.4. Where
two or more hospital districts have joined together to pool their
self-insurance claims or losses, any nonprofit corporation created
pursuant to subdivision (p) of Section 32121 of the Health and Safety
Code, and affiliated with a hospital district which is a party to
the pool may participate in the pool.
   (b) Two or more local public entities having the same governing
board,  two or more mutual water companies, or two or more
mutual water companies and one or more public agencies that operate a
public water system,   or a mutual water company and a
public agency,  as authorized under subdivision (b) of Section
6525, may be coinsured under a master policy and the total premium
may be prorated among those entities.
   (c) The pooling of self-insured claims or losses among entities as
authorized in subdivision (a) of Section 990.4 shall not be
considered insurance nor be subject to regulation under the Insurance
Code.
   (d) Any liability or loss under a joint powers agreement for the
pooling of self-insured claims or losses authorized by this part and
provided pursuant to this section may, notwithstanding Section 620 of
the Insurance Code or any other provision of law, be reinsured to
the same extent and the same manner as insurance provided by an
insurer.
   (e) Where a joint powers agreement authorized by this part or
authorized pursuant to Section 6516 provides for the pooling of
self-insured claims or losses among entities, if any peril insured or
covered under contract has existed, and the joint powers authority
or other parties to the pool have been liable for any period, however
short, the agreement may provide that the party insured or covered
under contract is not entitled to the return of premiums,
contributions, payments, or advances so far as that particular risk
is concerned.
   (f) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code.
  SEC. 2.  Section 6525 of the Government Code is amended to read:
   6525.  (a) Notwithstanding any other provision of this chapter, a
mutual water company may enter into a joint powers agreement with any
public agency for the purpose of jointly exercising any power common
to the contracting parties.
   (b) Notwithstanding any other provisions of this chapter, 
two or more mutual water companies, or two or more mutual water
companies and one or more public agencies that operate a public water
system may enter into a joint powers agreement for   a
mutual water company and a public agency may enter into a joint
powers agreement   for the purpose of  risk-pooling and
the provision of technical support, continuing education, safety
engineering, operational and managerial advisory assistance to be
provided to the members of that joint powers  agency.
  agency for the purpose of reducing risk liabilities.

   (c) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code.