Code Section Group

CHAPTER 4.3. Sewer Service [13288 - 13289.5]

13288.

For purposes of this chapter, the following definitions apply:

(a) “Adequate sewer service” means a sanitary sewer service provided by a sewer service provider that is not an inadequate sewer service, as defined in subdivision (j).

(b) “Administrator” means a person whom the state board has determined is competent and willing to perform the administrative, technical, operational, legal, or managerial services required for purposes of this chapter, pursuant to criteria set forth in the handbook described in subdivision (i) of Section 13289.5. An administrator may be any qualified individual, firm, or another sewer service provider.

(c) “Affected residence” means a residence within a disadvantaged community that may be subject to provision of sewer service pursuant to this chapter.

(d) “Affected resident” means a resident or a property owner of an affected residence.

(e) “Annexation” has the same meaning as set forth in Section 56017 of the Government Code.

(f) “Designated sewer system” means a sewer service provider that serves a disadvantaged community that is either an inadequate sewer service or a sewer system that has a demonstrated failure to maintain technical, managerial, or financial capacity to prevent waste, fraud, and abuse.

(g) “Disadvantaged community” means a disadvantaged community, as defined in Section 79505.5, or a low-income community, as defined in Section 39713 of the Health and Safety Code.

(h) “Extension of service” has the same meaning as set forth in Section 56133 of the Government Code.

(i) “Inadequate onsite sewage treatment system” means an onsite sewage treatment system that has the reasonable potential to cause a violation of water quality objectives, to impair present or future beneficial uses of water, or to cause pollution, nuisance, or contamination of waters of the state.

(j) (1) “Inadequate sewer service” means a sewer service provider that serves a disadvantaged community, has a demonstrated history of failures to meet regulatory standards for proper wastewater collection, treatment, and disposal, and may exhibit deficiencies, such as infrastructure failure, insufficient capacity, or ineffective treatment of wastewater.

(2) A demonstrated history of failures to meet regulatory standards may include, but is not limited to, multiple violations, multiple instances of noncompliance with enforcement actions, or refusal to accept compliance assistance.

(k) (1) “Onsite sewage treatment system” means an onsite sewage treatment system, as defined in Section 13290, that is not operated by a local agency, as defined in Section 56054 of the Government Code, or a utility regulated by the Public Utilities Commission.

(2) “Onsite sewage treatment system” includes, but is not limited to, a septic tank, cesspool, leach field, and seepage pit.

(l) “Provision of sewer service” means the provision of sanitary sewer service, including the collection or treatment of sewage, to a disadvantaged community by any of the following processes:

(1) Annexation where the receiving sewer system is a special district.

(2) Extension of service where the receiving sewer system is a city, county, or special district.

(3) Additional sewer service provided within city, county, or special district boundaries.

(m) “Receiving sewer system” means the sewer system that provides service to a disadvantaged community pursuant to this chapter.

(n) “Sewer service provider” means any local agency that provides sanitary sewer service, which may include wastewater collection, treatment, disposal, or any combination thereof.

(o) “Special district” means a special district as defined in Section 56036 of the Government Code.

(Amended by Stats. 2024, Ch. 505, Sec. 2. (AB 805) Effective September 24, 2024.)

13289.

(a) (1) Except as provided in paragraph (4), where a disadvantaged community or residents of a disadvantaged community are served by one or more inadequate onsite sewage treatment systems, the regional board may order the provision of sewer service by a receiving sewer system to the disadvantaged community, or to all or a portion of the area within the disadvantaged community. The regional board may set timelines and performance measures to facilitate completion of the provision of sewer service.

(2) In issuing an order pursuant to paragraph (1), the regional board is not required to determine that all of the onsite sewage treatment systems in the disadvantaged community, or portion of the disadvantaged community, to be provided with sewer service are inadequate onsite sewage treatment systems.

(3) (A) The property owner of an affected residence may opt out of an order for the provision of sewer service for a maximum of five years for the residence from the date of the issuance of the order by demonstrating to the regional board that the affected residence is served by an onsite sewage treatment system that meets both of the following criteria:

(i) The onsite sewage treatment system was installed no more than 10 years prior to the issuance of the order.

(ii) The onsite sewage treatment system is not an inadequate onsite sewage treatment system.

(B) A property owner who opted out pursuant to subparagraph (A) shall be responsible for the payment of reasonable standby charges to the receiving sewer system.

(C) Subsequent property owners of an affected residence that has opted out pursuant to subparagraph (A) shall have the option of opting in to the provision of sewer service pursuant to the order upon gaining ownership of the affected residence. The subsequent property owners shall have access to all financial assistance made available under this section, including connection fees and infrastructure costs, if any, available to the affected residence.

(4) The regional board shall not require the provision of sewer service to a disadvantaged community by a receiving sewer system if the service territory of the receiving sewer system is more than three miles away from the disadvantaged community.

(b) (1) Before ordering the provision of sewer service as provided in this section, the regional board shall do all of the following:

(A) Encourage voluntary provision of sewer service, which may include voluntary annexation to a city.

(B) Consider other enforcement remedies specified in this division.

(C) Consult with, and consider input from, the relevant local agency formation commission regarding the sewer service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.

(D) Consult with the state board.

(E) Consult with, and fully consider input from, the local government with land use planning authority and environmental health oversight over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.

(F) (i) Notify the potential receiving sewer system and affected residents within the disadvantaged community, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potential receiving sewer system and the affected property owners to negotiate annexation, extension of service, or another means of providing an adequate sewage service.

(ii) During the period set forth in clause (i), the regional board shall provide technical assistance and work with the potential receiving sewer system and the affected residents to develop a financing package that benefits both the receiving sewer system and the affected residents by addressing the receiving sewer system’s planning and capital costs and the affected residents’ connection costs.

(iii) Upon a showing of good cause, the deadline set forth in clause (i) may be extended by the regional board at the request of the potential receiving sewer system, the affected residents, or the local agency formation commission with jurisdiction over the sewer system.

(G) Hold at least one public meeting at the initiation of the process established in this section in a place as close as feasible to the affected areas. The regional board shall make reasonable efforts to provide a 30-day notice of the meeting to the affected residents and all affected local government agencies and sewer service providers. The meeting shall provide representatives of the affected residents and the potential receiving sewer system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.

(H) Provide opportunity to submit comments by mail or electronic mail during the 30-day notice period and for at least one week after the public meeting.

(I) Consider whether existing programs or alternative methods are available and feasible.

(J) Consider the affordability of the provision of sewer service to the disadvantaged community.

(2) Upon expiration of the deadline set by the regional board pursuant to subparagraph (F) of paragraph (1), the regional board shall do the following:

(A) Consult with the potential receiving sewer system and the affected residents.

(B) Review comments received during the public meeting held, and comments received, pursuant to subparagraph (G) of paragraph (1).

(3) Before ordering the provision of sewer service, the regional board shall do both of the following:

(A) Find all of the following:

(i) One or more affected residences are served by an inadequate onsite sewage treatment system.

(ii) Reasonable efforts to negotiate voluntary provision of sewer service were made.

(iii) The provision of sewer service is appropriate and technically and economically feasible.

(iv) There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.

(v) The provision of sewer service is an effective and cost-effective means to address the inadequate onsite sewage treatment system.

(vi) The capacity of the proposed interconnection needed to accomplish the provision of sewer service designed to serve the disadvantaged community, as determined by the regional board.

(B) Hold a subsequent public meeting in a place as close as feasible to the affected areas if a period of six or more months has passed since the public meeting held pursuant to subparagraph (G) of paragraph (1). The regional board shall make reasonable effects to provide a 30-day written notice of the meeting to the affected residents and all affected local government agencies and sewer service providers. The meeting shall provide representatives of the affected residents and the potential receiving sewer system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.

(4) Upon the issuance of a regional board’s order requiring provision of sewer service, the state board shall do all of the following:

(A) As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving sewer system for the costs of completing the provision of sewer service, including, but not limited to, compensation for any capacity lost as a result of the provision of sewer service, by paying the receiving sewer system’s capacity connection fee at the rate it charges others, providing additional capacity needed as a result of the provision of sewer service, and paying legal fees. If capacity beyond what is needed for provision of sewer service is provided, the state board shall retain its rights to use the additional capacity without paying additional capacity charge fees for five years, unless it releases those rights in writing. Funding pursuant to this subparagraph is available for the general purpose of providing financial assistance for the water infrastructure needed for the provision of sewer service and does not need to be specific to each individual project. The state board shall provide appropriate financial assistance for the infrastructure needed for the provision of sewer service. The state board’s existing financial assistance guidelines and policies shall be the basis for the financial assistance.

(B) Ensure payment of standard local agency formation commission costs caused by the regional board’s order. Additional costs or fees related to provision of sewer service, including, but not limited to, other public works costs or upgrades, shall not be used to delay the provision of sewer service required by the order.

(C) Coordinate with the appropriate local agency formation commission and other relevant local agencies to document the change of organization or reorganization.

(c) The receiving sewer system shall not increase charges on existing customers of the receiving sewer system solely as a consequence of the provision of sewer service unless the customers receive a corresponding benefit.

(d) The receiving sewer system shall not charge rates to newly absorbed customers of the sewer system that are higher than those necessary to provide the sewage service.

(e) Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board or the regional board pursuant to this section.

(f) The state board may develop and adopt policy, through the adoption of a policy handbook that is not subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, that provides a process by which members of a disadvantaged community may petition the regional board for consideration of provision of sewer service pursuant to this chapter.

(g) Article 5 (commencing with Section 13280) of Chapter 4 does not apply to any action taken by the state board or a regional board pursuant to this chapter.

(Added by Stats. 2018, Ch. 982, Sec. 2. (SB 1215) Effective January 1, 2019.)

13289.5.

(a) Before implementing the actions authorized by this section, the state board shall, by resolution, make one or both of the following findings:

(1) A sewer service provider is an inadequate sewer service, as defined in Section 13288, and that it is in the best interest of the customers of the sewer service provider and the State of California that an administrator be appointed to assist a sewer service provider with making improvements necessary to develop an adequate sewer system. When these findings are made, the sewer service provider shall be referred to as a designated sewer system.

(2) A sewer service provider has demonstrated a history of continued failures to maintain technical, managerial, or financial capacity to prevent waste, fraud, or abuse. When this finding is made, the sewer service provider shall be referred to as a designated sewer system.

(b) Following adoption of a resolution based on the findings required by subdivision (a) for identifying a sewer service provider as a designated sewer system, the state board may do any of the following:

(1) (A) Require a designated sewer system to contract with an administrator designated or approved by the state board for administrative, technical, operational, legal, or managerial services, or any combination of those services, to assist the designated sewer system with the delivery of adequate sewer service.

(B) To fulfill the requirements of this section, a designated sewer system may contract with administrators. Where administrator services are comprehensive, the sewer service provider may contract with no more than one administrator at a time. Where administrator services are limited in scope, a sewer service provider may contract with more than one limited scope provider at a time, provided that in no instance will the scopes overlap. An administrator that is not designated or approved by the state board shall not be used for purposes of this section.

(C) An administrator may provide services to more than one designated sewer system.

(D) If a designated sewer system is also a water system that has been ordered to consolidate or has been ordered to accept assistance from an administrator, the state board shall consider designating the same administrator for the designated sewer system that was designated to the water system, and requiring that administrator to consult with the management of both the designated water and the designated sewer systems in carrying out their duties.

(2) Order a designated sewer system to accept administrative, technical, operational, legal, or managerial services, including full management and control of all aspects of the designated sewer system, from an administrator selected by the state board.

(3) Order a designated sewer system to accept administrative, technical, operational, legal, or managerial services from an administrator for full oversight of construction or development projects, including, but not limited to, accepting loans and grants issued by the state board and entering into contracts on behalf of the designated sewer system.

(c) The state board shall do all of the following before determining that a sewer service provider is a designated sewer system pursuant to subdivision (a).

(1) Provide the sewer service provider with notice and an opportunity to show that the sewer service provider has taken steps to timely address its failure to be an adequate sewer system or has taken steps to timely address its failure to maintain technical, managerial, and financial capacity.

(2) (A) Conduct a public meeting in a location as close as feasible to the affected community.

(B) The state board shall make reasonable efforts to provide a 30-day notice of the public meeting to affected ratepayers, renters, and property owners.

(C) The state board shall provide representatives of the sewer service provider, affected ratepayers, renters, and property owners with an opportunity to present oral and written comments at the public meeting.

(D) The state board shall provide an opportunity for public comment at the meeting.

(3) Provide the public with an opportunity to submit comments by mail or electronically during the 30-day notice period and for at least one week after the public meeting described in paragraph (2).

(4) Consider whether designating a sewer system and ordering a designated sewer system to contract with an administrator is feasible, and not in conflict with any federal or state laws, regulations, or permit requirements.

(d) The state board shall make financial assistance available to an administrator of a designated sewer system, as appropriate and to the extent that funding is available.

(e) The state board shall not identify a designated sewer system or make findings that a sewer service provider has an inadequate sewer service or require a sewer service provider to contract with an administrator pursuant to this section on or after January 1, 2029. All other authorizations and requirements pursuant to this section shall remain in effect until December 31, 2029.

(f) The authority granted to an administrator by the state board pursuant to subdivision (b) may include, but is not limited to, the authority to do all of the following:

(1) Expend available money for capital infrastructure improvements that the designated sewer system needs to provide adequate sewer service.

(2) Set and collect user sewer rates and fees. The provisions of this section are subject to all applicable constitutional requirements, including Article XIII D of the California Constitution.

(3) Expend available money for operation and maintenance costs of the designated sewer system, including conducting feasibility or planning studies, or addressing outstanding technical or legal issues.

(g) The state board shall work with the administrator of a designated sewer system and the communities served by that designated sewer system to develop, within the shortest practicable time, adequate technical, managerial, and financial capacity to deliver adequate sewer service so that the services of the administrator are no longer necessary.

(h) A designated sewer system shall not be responsible for any costs associated with an administrator that are higher than the costs necessary to maintain the designated sewer system and deliver adequate sewer service.

(i) Before ordering a designated sewer system to accept administrative, technical, operational, legal, or managerial services from an administrator pursuant to subdivision (b), the state board shall develop standards, terms, and procedures, to be incorporated in the handbook adopted pursuant to subdivision (g) of Section 116686 of the Health and Safety Code, consistent with the process provided in subdivision (a) of Section 116760.43 of the Health and Safety Code, for all of the following:

(1) The process and criteria for the state board to designate a sewer service provider as a designated sewer system, and the evidence required to support findings by the state board in a resolution pursuant to subdivision (a).

(2) Ensuring compliance with subdivision (h).

(3) Providing opportunity for public comment on the selection of an administrator and the services to be provided.

(4) Providing public access to budgets, ownership and financial information, and other documents and records related to the provision of sewer service to affected residences and to the management of the designated sewer system by the administrator.

(5) Providing regular public meetings, notifications, opportunities for public comment, and other forms of engagement with customers of the designated sewer system for significant decisions or actions made on behalf of the designated sewer system, including, but not limited to, establishing operating budgets, altering sewer rates, adopting system policies, entering into long-term contracts or financing commitments, and developing system projects or plans.

(6) Formal requests to the state board to reverse or modify a decision of an administrator or to request substitution of an administrator.

(7) Ensuring an administrator acts in the best interests of the community served.

(8) Development and approval of a post-administrator sewer service plan to ensure compliance with subdivision (g). Development of the plan shall include, but is not limited to, an evaluation of long-term public governance or community ownership options.

(9) The process for the state board to determine an administrator is no longer needed and to terminate the administrator’s responsibilities.

(j) An administrator appointed pursuant to this section for a designated sewer system shall not be liable for claims by past or current ratepayers, by those affected by the sewer service provided by the designated sewer system, or for enforcement actions taken by the state board in any of the following circumstances:

(1) If good faith, reasonable effort, and ordinary care were used by the administrator to assume possession of, or to operate, the sewer service provider.

(2) For any injury or damages that occurred before the commencement of the operation period.

(3) For injury, violations, or damages after the administrator has assumed control of the designated system until the necessary upgrades to the infrastructure or managerial responsibilities have been completed to become an adequate sewer system.

(k) This section does not limit or supersede any other law authorizing claims against the state board or providing a defense to liability, and shall not be construed to create any new or expanded basis for liability.

(l) Nothing in this section shall be construed to do any of the following:

(1) Relieve a designated sewer system or any other entity from complying with any provision of federal or state law, including those pertaining to water quality.

(2) Impair any cause of action by the Attorney General, a district attorney, a city attorney, or other public prosecutor, or impair any other action or proceeding brought by, or on behalf of, a regulatory agency against a designated sewer system.

(3) Impair any claim alleging the taking of property without compensation within the meaning of either the Fifth Amendment to the United States Constitution or Section 19 of Article I of the California Constitution.

(4) Relieve any person or entity from liability for action or inaction in bad faith, or without reasonable effort or ordinary care.

(m) Nothing in this section shall absolve, indemnify, or protect a prior operator, designated sewer system, or individual from liability based on an act or failure to act prior to the operation period.

(n) Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.

(o) This section does not apply to a charter city, charter county, or charter city and county.

(Added by Stats. 2024, Ch. 505, Sec. 3. (AB 805) Effective September 24, 2024.)