SB 350 California Senate · 2025-2026 Regular Session

Water Rate Assistance Program.

Summary
Existing law requires the State Water Resources Control Board to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program. Existing law requires the plan to include, among other things, a description of the method for collecting moneys to support and implement the program and a description of the method for determining the amount of moneys that may need to be collected from water ratepayers to fund the program. This bill would establish the Water Rate Assistance Program. As part of the program, the bill would establish the Water Rate Assistance Fund in the State Treasury, available upon appropriation by the Legislature, to provide water affordability assistance, for both residential water and wastewater services, to low-income residential ratepayers, as specified. The bill would require the state board to take various actions in administering the fund, including, among other things, tracking and managing revenue in the fund separately from all other revenue. The bill would require the state board, in consultation with relevant agencies and after a public hearing, to adopt guidelines for implementation of the program and to adopt an annual report to be posted on the state board's internet website identifying how the fund has performed, as specified. The bill would require the guidelines to include minimum requirements for eligible systems, including the ability to confirm eligibility for enrollment through a request for self-certification of eligibility under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would require the state board to take various actions in administering the program, including, but not limited to, providing guidance, oversight, and funding for low-income rate assistance for residential ratepayers of eligible systems. The bill would authorize the Attorney General, at the request of the state board, to bring an action in state court to restrain the use of any method, act, or practice in violation of these provisions, except as provided. The bill would make the implementation of all of these provisions contingent upon an appropriation by the Legislature. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 12, 2025 Last action Feb 2, 2026
Maddy AI version diff · 5 comparisons

What changed between versions

04/24/25 - Amended Senate 05/07/25 - Amended Senate · 10 edits · May 7, 2025
MAJOR
The May 7 amendment to SB 350 makes several substantive changes to the Water Rate Assistance Program: it renumbers the chapter from 6.5 to 6.4, adds a new definition and section allowing water systems to maintain their own local rate assistance programs alongside the statewide program, expands data sharing to include customer names and addresses, gives water systems discretion over whether to use third-party providers, and changes the effective date trigger to when the Legislature appropriates funds rather than when the bill takes effect.
Scope change
The bill's scope expanded to explicitly accommodate existing local water rate assistance programs, allowing systems to maintain their own programs independently of the statewide program and potentially receive state funds allocated to those local programs. The effective date trigger was also changed so that all timelines depend on legislative appropriation rather than the bill's effective date.
SCOPE

The chapter was renumbered from 6.5 to 6.4, and all internal section references were updated accordingly (e.g., the appropriation section moved from 116941 to 116942).

A new section (116939) was added clarifying that eligible systems may administer local water rate assistance programs in addition to, on top of, or different from the statewide program. These local programs operate independently without state board oversight. Systems with existing local programs may request the state board allocate program funds to their local program via a memorandum of understanding describing parameters, eligibility criteria, and enrollment.

DEFINITION

The definition of 'effective date' was changed from the effective date of the chapter to the effective date of the appropriation described in Section 116942. This means all program timelines (270-day guideline deadline, 450-day implementation deadline) now start when the Legislature appropriates funding, not when the bill takes effect.

A new definition of 'local water rate assistance program' was added, defining it as a low-income water rate assistance program established, funded, and administered by a community water system. These local programs may use any available funding except fees or charges levied under Article XIII D of the California Constitution.

REQUIREMENT

The data sharing requirement in Section 116936 was expanded to explicitly include customer names and account addresses in the CARE enrollment data shared with the state board or third-party providers. The mechanism now also allows data to be shared directly with third-party providers rather than only through the state board.

The scope of work for third-party providers was expanded to include receipt of CARE enrollment data, receipt of information from eligible systems, creation of eligible customer lists, and provision of notices to customers about their enrollment and an opportunity to opt out of the program.

A new guideline requirement was added in Section 116934(b) requiring guidance to eligible systems regarding payment of reasonable administrative costs consistent with Article XIII D of the California Constitution (the proposition that limits local government fees and charges).

ELIGIBILITY

New guideline requirements were added giving eligible systems the sole discretion to elect whether and to what extent they will rely on third-party providers for services, or instead perform those services themselves. A corresponding requirement was added for systems to share information with third-party providers as necessary.

The automatic enrollment trigger in Section 116934(b)(1)(B) no longer includes enrollment in the Family Electric Rate Assistance program (Section 739.12 of the Public Utilities Code). Only CARE program enrollment now triggers automatic enrollment, though data on both programs is still collected under Section 116936.

ENFORCEMENT

The good faith effort exception in the enforcement section was updated to reference Sections 116938 and 116940 (renumbered from 116938 and 116939) to reflect the new section numbering.

Floor votes

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Full legislative history

Actions timeline

Total actions
18
Key actions
7
Committee
2
Amendments
6
May 23, 2025
Upper · Passed
May 23 hearing: Held in committee and under submission.
upper
May 7, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
upper
Apr 24, 2025
Upper · Passed
Read second time and amended. Re-referred to Com. on APPR.
upper
Apr 23, 2025
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 3. Page 810.) (April 21).
upper
Apr 10, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U & C.
upper
Mar 25, 2025
Upper · Passed
Read second time and amended. Re-referred to Com. on E., U & C.
upper
Mar 24, 2025
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on E., U & C. (Ayes 6. Noes 1. Page 422.) (March 19).
upper
Feb 19, 2025
Committee
Referred to Coms. on E.Q. and E., U & C.
upper
Feb 12, 2025
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 7 co-sponsors

Sponsors