Joint powers agreements: water corporations.

Assembly Member Blanca Rubio's legislation expands California's joint powers agreement framework to allow water corporations to participate in insurance and risk pooling arrangements when partnering with mutual water companies and public agencies. The measure modifies Government Code provisions to establish specific conditions for these partnerships while maintaining protections for public entities and water customers.

Under the new provisions, water corporations seeking to join a joint powers agreement must demonstrate to the Public Utilities Commission that the arrangement provides greater customer benefits than their existing insurance policies. The joint powers agency must maintain 100% reinsurance coverage with no joint and several liability or financial obligations for participating members. Water corporations must submit detailed cost information before joining and file annual reports documenting both achieved savings and how those savings benefit their customers through reduced rates or service improvements.

The legislation requires that any cost reductions or expanded insurance coverage obtained through these arrangements directly benefit California water customers. It restricts joint powers agencies that include water corporations from joining other agencies or exercising powers beyond those specifically authorized for insurance and risk pooling purposes. The measure maintains existing authorizations for public agencies and mutual water companies to form joint powers agreements while adding new oversight mechanisms for arrangements involving water corporations.