Mutual water companies: board members: training.

Assembly Member Connolly's proposal adds new documentation requirements for mutual water company board members who complete mandatory training on public water system operations and management. The measure would require board members to submit proof of completion to the State Water Resources Control Board within 30 days of finishing their required two-hour training course.

Under current law, board members of mutual water companies that operate public water systems must complete training within six months of taking office and every six years thereafter. The training covers directors' fiduciary duties, contractual conflict of interest requirements, drinking water compliance obligations under the federal Safe Drinking Water Act, and long-term system management. Qualified trainers include California State Bar members, those accredited by the International Association of Continuing Education and Training, and programs sponsored by the Rural Community Assistance Corporation or California Rural Water Association.

The bill maintains existing provisions regarding mutual water companies' liability for regulatory fines and penalties. Companies may levy assessments to pay these costs according to Corporations Code procedures. When outstanding regulatory obligations exceed 5 percent of a company's annual budget, the company must levy an assessment to cover the amount.