AMENDED IN ASSEMBLY APRIL 4, 2024
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1827
Introduced by Assembly Member Papan
January 12, 2024
An act to add Section 53750.6 to the Go vernment Code, relating to local government finance.
legislative counsel’s digest
AB 1827, as amended, Papan. Local government: fees and charges:
water: higher-consumptive higher consumptive water parcels.
The California Constitution specifies v arious requirements with respect to the le vying of assessments and property-related fees and charges by a local agenc y, including requiring that the local agenc y provide public notice and a majority protest procedure in the case of assessments and submit property-related fees and charges for approval by property owners subject to the fee or charge or the electorate residing in the affected area following a public hearing.
Existing law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things, authorizes an agenc y pro viding w ater, w astewater, se wer, or refuse collection services to adopt a schedule of fees or char ges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances. Existing law defines, among other terms, the term “w ater” for these purposes to mean an y system of public improvements intended to provide for the production, storage, supply, treatment, or distribution of water from any source.
98 This bill would provide that the fees or charges for property-related water service imposed or increased, as specified, may include the incrementally higher costs of w ater service due to specified f actors, including the higher w ater usage demand of parcels. The bill w ould provide that the incrementally higher costs of water service associated with higher water usage demands, the maximum potential w ater use, or a projected peak w ater usage demand may be allocated using an y method that reasonably assesses the w ater service pro vider’s cost of serving those parcels that are increasing potential water usage demand, maximum potential w ater use, or project pr ojected peak w ater use demand. usa ge. The bill w ould declare that these pro visions are declaratory of existing law.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 53750.6 is added to the Government line 2 Code, to read:
line 3 53750.6. (a) The fees or char ges for property-related w ater line 4 service imposed or increased pursuant to Section 6 of Article XIII line 5 D of the California Constitution may include the incrementally line 6 higher costs of water service due to any of the following:
line 7 (1) The higher water usage demand of parcels.
line 8 (2) The maximum potential water use of parcels. use. line 9 (3) Projected peak water usage.
line 10 (4) Any combination of paragraphs (1) to (3), inclusive. line 11 (b) (1) The incr ementally higher costs of water service line 12 associated with higher w ater usage demands, the maximum line 13 potential water use, or a projected peak water usage demand may line 14 be allocated using any method that reasonably assesses the water line 15 service provider’s cost of serving those parcels that are increasing line 16 potential water usage demand, maximum potential w ater use, or line 17 project projected peak water use demand. usage. line 18 (2) In addition to an y other method consistent with Section 6 line 19 of Article XIII D of the California Constitution, the incrementally line 20 higher costs of water service associated with higher w ater usage line 21 demands, the demand, maximum potential water use, or a projected line 22 peak water usage demand cost may be allocated among customer line 23 classes, within customer classes, or both, based on meter size or 98 — 2 — AB 1827
line 1 peaking factors, as those are two methods that reasonably assess line 2 the water service pro vider’s cost of serving those parcels which line 3 are increasing demand or potential water use. parcels that increase line 4 water usage demand, maximum potential water use, or projected line 5 peak water usage.
line 6 (c) This section is declaratory of existing law.
O
98 AB 1827 — 3 —