Small mutual water companies urge hold on SB 12 91, saying online and teleconference mandates create unfunded costs

Adan Ortega, representing the California Association of Mutual Water Companies, told the Senate Appropriations Committee that SB 12 91 would place significant and ongoing costs on small, nonprofit mutual water companies and the communities they serve and asked the committee to hold the bill unless amended. "The true fiscal impact is far greater than what is currently reflected in the analysis," Ortega said, arguing the bill duplicates costs the State Water Board and existing programs already address.

David Armstrong, general manager of South Base Water Company and vice president of CalMutuals, said the bill would require website posting and teleconferencing requirements in areas with unreliable Internet access, affecting as many as 30 percent of some communities. He told the committee that broadband shortfalls must be accounted for in the fiscal analysis.

Sandy McElhinney, president of Christian Mutual Water Company and a CalMutuals director, said she drove five hours to Sacramento to testify and called SB 12 91 a "hard compliance cliff at 50 service connections" that disproportionately affects the smallest systems with unfunded mandates. "How does the committee analysis account for this?" she asked.

Ortega and other witnesses urged the committee to consider amendments that would reduce duplication with programs such as SAFER and that would account for the practical costs of posting requirements or virtual meeting mandates in broadband deserts.

Chair then moved SB 12 91 to the suspense file without objection. No Department of Finance representative was present for fiscal comment.

Next steps: SB 12 91 was placed on the suspense file; witnesses asked the author and committee for amendments and more detailed fiscal analysis before the measure advances.