Today's Law As Amended

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AB-2649 State Water Project: water supply contracts.(2017-2018)



SECTION 1.

 Section 147.5 of the Water Code is repealed.

147.5.
 At least 60 days prior to the final approval of the renewal or extension of a long-term water supply contract between the department and a state water project contractor, the department shall present at an informational hearing before the Legislature the details of the terms and conditions of the contract and how they serve as a template for the remaining long-term water supply contracts. This presentation shall be made to the Joint Legislative Budget Committee and relevant policy and fiscal committees of both houses, as determined by the Speaker of the Assembly and the Senate Committee on Rules. The department shall submit a copy of one long-term contract to the Joint Legislative Budget Committee no less than 30 days prior to the scheduled hearing.

SEC. 2.

 Section 147.5 is added to the Water Code, to read:

147.5.
 The department shall provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors.

SEC. 3.

 Section 147.6 is added to the Water Code, to read:

147.6.
 (a) Before the execution of an amendment to a long-term water supply contract described in subdivision (c) and not later than 60 days before final approval of such an amendment, the department shall submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature information regarding the terms and conditions of a proposed amendment of a long-term water supply contract.
(b) The department shall submit the following information in compliance with subdivision (a):
(1) A summary of the provisions of the proposed amendment.
(2) The estimated costs associated with the proposed amendment, along with an estimate of the allocation of the costs borne by each contractor.
(3) A copy of the long-term contract as it is proposed to be amended.
(c) (1) This section applies to a proposed amendment by the department to a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, and to a proposed contract amendment that would permanently transfer a contractual water amount between contractors.
(2) This section does not apply to an amendment for which a copy of the long-term water supply contract as it was proposed to be amended was submitted by the department to the Joint Legislative Budget Committee in May 2018.