BILL NUMBER: AB 656	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2015
	AMENDED IN ASSEMBLY  MAY 4, 2015

INTRODUCED BY   Assembly Member Cristina Garcia
   (Coauthor: Assembly Member Alejo)

                        FEBRUARY 24, 2015

   An act to amend Sections 990.8 and 6525 of the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 656, as amended, Cristina Garcia. Joint powers agreements:
mutual water companies.
   The Joint Exercise of Powers Act authorizes 2 or more public
agencies, as defined, if authorized by their governing bodies, by
agreement to jointly exercise any power common to the contracting
parties, and specifically authorizes a mutual water company to enter
into a joint powers agreement with a public agency for these
purposes. Existing law authorizes local public entities, as defined,
to enter into a joint powers agreement for the purposes of providing
risk-pooling, as specified.
   This bill would specifically authorize a mutual water company and
a public agency to participate in joint powers agreement for the
provision of insurance and risk-pooling, technical support, and other
similar services for the purpose of reducing risk 
liability.   liability, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 990.8 of the Government Code is amended to
read:
   990.8.  (a) Two or more local public entities, or a mutual water
company and a public agency, as authorized under subdivision (b) of
Section 6525, by a joint powers agreement made pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Division 7, may
provide insurance authorized by this part or for any other purpose by
any one or more of the methods specified in Section 990.4. Where two
or more hospital districts have joined together to pool their
self-insurance claims or losses, any nonprofit corporation created
pursuant to subdivision (p) of Section 32121 of the Health and Safety
Code, and affiliated with a hospital district which is a party to
the pool may participate in the pool.
   (b) Two or more local public entities having the same governing
board, or a mutual water company and a public agency, as authorized
under subdivision (b) of Section 6525, may be coinsured under a
master policy and the total premium may be prorated among those
entities.
   (c) The pooling of self-insured claims or losses among entities as
authorized in subdivision (a) of Section 990.4 shall not be
considered insurance nor be subject to regulation under the Insurance
Code.
   (d) Any liability or loss under a joint powers agreement for the
pooling of self-insured claims or losses authorized by this part and
provided pursuant to this section may, notwithstanding Section 620 of
the Insurance Code or any other provision of law, be reinsured to
the same extent and the same manner as insurance provided by an
insurer.
   (e) Where a joint powers agreement authorized by this part or
authorized pursuant to Section 6516 provides for the pooling of
self-insured claims or losses among entities, if any peril insured or
covered under contract has existed, and the joint powers authority
or other parties to the pool have been liable for any period, however
short, the agreement may provide that the party insured or covered
under contract is not entitled to the return of premiums,
contributions, payments, or advances so far as that particular risk
is concerned.
   (f) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code.
  SEC. 2.  Section 6525 of the Government Code is amended to read:
   6525.  (a) Notwithstanding any other provision of this chapter, a
mutual water company may enter into a joint powers agreement with any
public agency for the purpose of jointly exercising any power common
to the contracting parties.
   (b)  (1)    Notwithstanding any other provisions
of this chapter, a mutual water company and a public agency may
enter into a joint powers agreement for the purpose of risk-pooling
 and the provision of   technical 
 in accordance with Section 990.8, provided that the agreement
shall ensure that no participating public agency becomes responsible
for the underlying debts or liabilities of the joint powers agency,
and shall indemnify any participating public agency against those
debts and liabilities. 
    (2)     A joint powers agency established
pursuant to this subdivision shall solely utilize any revenues it
generates through the insurance provided to its members under this
section for its necessary operating expenses, and to provide
technical  support, continuing education, safety engineering,
operational and managerial advisory assistance  to be
provided to the members of that joint powers agency   to
its member   s  for the purpose of reducing risk
liabilities  and furthering the technical managerial and
financial capacity of those members  .
   (c) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code.