Water Rate Assistance Program.

The bill header changed from listing amendment dates (August 19, August 13, June 9, May 14, March 25) and coauthors to showing 'Passed the Senate August 26, 2026' and 'Passed the Assembly August 25, 2026' with a blank governor's receipt date field.

The legislative counsel's digest title changed from 'SB 1125, as amended, Menjivar' to 'SB 1125, Menjivar', removing the 'as amended' qualifier now that the bill is in its final enrolled form.

All line numbers (e.g., 'line 1', 'line 2') were removed from the statutory text, and page headers/footers were reformatted to match the enrolled bill layout.

The administrative cost cap (10 percent of average annual budget) now takes effect at exactly three years from the effective date, rather than 450 days after three years as in the prior version.

The requirement that at least 80 percent of fund expenditures be directly applied to residential ratepayer accounts now takes effect at exactly four years from the effective date, rather than 730 days (two years) after four years. This is a two-year acceleration.

The deadline for the state board to adopt program guidelines was shortened from 365 days after two years (effectively three years) to exactly two years from the effective date.

The definition of 'effective date' was simplified to mean only the date the state board gives public notice under Section 116932(c)(2), removing the alternative reference to the effective date of the appropriation described in Section 116942.

The reporting requirement was changed from an annual report posted on the state board's website to a single report submitted to the Legislature four years from the effective date, with subsequent reports every three years posted on the website. The fiscal-year-specific expenditure reporting language was also generalized.

A provision requiring guidelines to include a process for determining how funding and implementation would be prioritized among eligible systems when full funding is not immediately available was removed, along with the related clause that systems not selected through prioritization would not be required to comply.

Data-sharing agreements under Section 116936(b) were expanded to include state entities administering federal programs (such as CalWORKs, CalFresh, Medi-Cal), in addition to municipal utility districts and irrigation districts. The purpose of these agreements was also broadened to include supporting the report required by Section 116935.

The report content requirement for anticipated funding needs was changed from 'for the next fiscal year' to 'for statewide implementation of the program,' reflecting a longer-term planning perspective rather than an annual budget outlook.

New partial implementation framework: if the fund contains a minimum implementation amount but not enough for statewide coverage, the state board solicits applications from eligible systems and selects a representative sample based on geography, number of connections, and service to disadvantaged communities. Participation is voluntary during this phase.

Minimum requirements for eligible systems (mandatory participation, enrollment processes, self-certification under penalty of perjury) now explicitly apply only once the Legislature appropriates enough for statewide implementation, not during the partial phase.

New definition of 'minimum implementation amount' - an amount sufficient for at least three years of ratepayer assistance for selected systems, including all administrative costs.

Definition of 'effective date' expanded to include the date the state board gives public notice that a minimum implementation amount has been appropriated, not just the appropriation effective date itself.

Administrative cost cap (10 percent limit) delayed from 365 days after the effective date to 450 days after three years from the effective date. The 80 percent direct-to-ratepayer expenditure requirement delayed from 450 days to 730 days after four years from the effective date.

Guidelines adoption deadline changed from 270 days after the effective date to 365 days after two years from the effective date. PUC data sharing mechanism deadline extended from 365 days to 450 days.

New requirement that the state board begin distributing ratepayer assistance within three years of the effective date, and provide public notice within 30 days of determining a minimum implementation amount or statewide funding level has been appropriated.

Reporting structure changed from annual reports to an initial report submitted to the Legislature under Government Code Section 9795, followed by subsequent reports every three years. New report elements include recommendations for future implementation and progress toward performance metrics.

State board must develop baseline and measurable metrics to evaluate program performance and success, with progress reported in subsequent reports.

Enrollment eligibility expanded to include Tribal Temporary Assistance for Needy Families and Cash Assistance Program for Immigrants alongside existing programs like CalWORKs, CalFresh, Medi-Cal, SSI, and WIC.

New provision exempting the state board from California Department of Technology procurement pathway when procuring data systems to receive customer enrollment information from the PUC and other entities.

Added language 'to the extent federally allowable' before the process for enrolling households based on participation in other assistance programs, acknowledging potential federal constraints on data use.

Audit provisions expanded: eligible systems must repay disallowed moneys (except amounts already applied to customer accounts) and preserve all records pertaining to fund receipt and distribution for three years after receipt.

The deadline for administrative costs to be capped at 10 percent of average annual fund deposits was extended from 365 days to 450 days after the effective date (Section 116932(c)(2)).

The deadline requiring at least 80 percent of total fund expenditures to be directly applied to residential ratepayer accounts was extended from 450 days to 730 days after the effective date (Section 116932(c)(3)).

The deadline for the state board to adopt program implementation guidelines was extended from 270 days to 365 days after the effective date (Section 116934(a)).

The deadline for the Public Utilities Commission to establish a data-sharing mechanism with electrical and gas corporations was extended from 365 days to 450 days after the effective date (Section 116936(a)).

The deadline for all nontribal community water systems to begin providing water rate assistance was extended from 450 days to 730 days after the effective date (Section 116940(a)).

The purpose of third-party provider contracts was narrowed. Previously the state board could contract with third-party providers broadly 'to the extent authorized by Section 19130 of the Government Code.' Now the contracts are limited specifically 'for the purpose of providing assistance to eligible systems with customer enrollment and disenrollment' (Section 116933(d)(3)).

Assembly Members Calderon and Schiavo were added as coauthors of the bill.

A provision allowing the state board, in consultation with the Public Utilities Commission, to authorize up to 5 percent of program funding for pilot projects that improve residential water or wastewater affordability through water efficiency measures or assistance programs in mobilehome parks, multifamily housing, or other households that do not directly pay a residential water bill was removed (former Section 116937(d)).

The prioritization provision for when full funding is not immediately available was clarified to cover 'funding and implementation' rather than just 'implementation,' making explicit that funding allocation is part of the prioritization process (Section 116934(b)(11)(A)).

The entire amendment to Section 116772 of the Health and Safety Code was removed. This provision would have required the state board to develop a drinking water needs assessment by May 1, 2027 (and annually thereafter), including an analysis of funds necessary to make water service affordable for community water systems with fewer than 3,000 service connections, updated at least every 3 years.

The state-mandated local program designation was changed to 'yes,' formally acknowledging that the bill imposes obligations on local water systems. The prior version showed a correction from 'no' to 'yes' but the new version states it cleanly as 'yes.'

A new paragraph (12) was added to Section 116934(b) requiring the state board to provide an eligible system with no fewer than 180 days' notice before the first day the system will be required to provide water rate assistance under this chapter.

Section 116937(b)(2) was expanded so that before receiving an advance payment, eligible systems must now also estimate anticipated administrative costs (in addition to enrollment numbers and expected bill credits). New language was added prohibiting the state board from requiring a system to provide a bill credit in advance of the state board providing the system funds to cover the portion of the water bill the credit is designed to cover.

Entirely new Chapter 6.2 (Sections 116930-116942) added to the Health and Safety Code establishing a statewide Water Rate Assistance Program for low-income residential ratepayers served by community water systems and participating tribal water systems.

Up to 5 percent of program funding may be used for pilot projects improving water or wastewater affordability through water efficiency measures or assistance programs in mobilehome parks, multifamily housing, or other households that do not directly pay a residential water bill.

The original Section 116772 amendment (drinking water needs assessment with aquifer mapping and water quality data requirements) is retained but renumbered as Section 2 of the bill, making it secondary to the new program.

Water Rate Assistance Fund established in the State Treasury, available upon legislative appropriation. Administrative costs capped at 10 percent of average annual deposits. Minimum 80 percent of total expenditures must go directly to residential ratepayer accounts starting 450 days after the effective date.

Low-income defined as household income no greater than 200 percent of the federal poverty guideline, consistent with CARE program guidelines. Automatic enrollment for households already enrolled in CARE; separate enrollment process for recipients of CalWORKs, CalFresh, general assistance, Medi-Cal, SSI/SSP, or WIC.

Eligible systems must provide a flat bill credit of at least $20 per month (updated annually by CPI) or 20 percent of total water charges for a volume similar to Section 10609.4 of the Water Code if that amount is higher. Systems must allow self-certification of eligibility under penalty of perjury.

State board must adopt implementation guidelines within 270 days of the effective date after a public hearing and at least three statewide public workshops with 45 days for public comment. All nontribal community water systems must begin providing assistance within 450 days of the effective date (or as prioritized if full funding is not immediately available).

Public Utilities Commission must establish a data-sharing mechanism within 365 days for electrical and gas corporations to share CARE enrollment data (customer names and account addresses) with third-party providers. Agreements with publicly owned utilities also permitted.

Fiscal note changed: state-mandated local program designation changed from 'no' to 'yes' due to the perjury self-certification requirement expanding the crime of perjury.

Attorney General may bring an action in state court at the state board's request to restrain unlawful practices, including nonparticipation by a public water system. A good-faith effort exception applies, as does an exemption for systems notified they do not need to comply due to prioritization.