BILL ANALYSIS                                                                                                                                                                                                    






    SENATE COMMITTEE ON AGRICULTURE AND WATER RESOURCES
                    Jim Costa, Chairman

SB 855  (Haynes)
As Amended April 5, 1999
Hearing Date: April 6, 1999
Fiscal: Yes
Consultant: Brent Walthall
PURPOSE OF BILL: 

To allow a customer to request that their retail water supplier  
enter into an agreement to supply recycled water or adopt  
recycled water rates within a specified time. 

BACKGROUND:

The Water Recycling Act of 1991 (WRA) was amended by SB 2103  
during the 1998 legislative session.  Under the 1998 amendments,  
water retailers are required to enter into a contract to provide  
recycled water to a customer if, at the request of the customer,  
the water retailer determines that recycled water is available  
or can be made available to the customer.  The water retailer  
must provide a written offer to the customer within 120 days  
after receiving the customer request.  The offer must set out  
the terms and conditions on which recycled water can be made  
available to the customer.  

The WRA also requires the water retailer to set rates for  
recycled water service if no rate exists.  The WRA does not  
require the retail water supplier to set the rate within a  
specific time period.  If the retail water supplier does not set  
the rate in a timely manner, then either the customer or the  
retail water supplier may seek formal mediation.  If formal  
mediation fails, remedy is in the courts without a presumption  
in favor of the retail water supplier. 

PROPOSED LAW:

The proposed law would:

A.   Allow customers to request their retail water suppliers to  
     enter into an agreement, or to adopt recycled water rates  
     for delivery of recycled water to the customer.  The retail  
     water supplier would be required to submit an offer to the  
     customer for recycled water service within 90 days that  
     includes a price term. 










B.   Require a retail water supplier that has not previously  
     established recycled water rates to establish such rates  
     either by contract with the customer, or by ordinance or  
     resolution within 120 days from the date of the customer  
     request. 

COMMENTS:

1.   The Senate Rules Committee requests that any do pass motion  
     include a re-referral of this bill to the Senate Committee  
     on  Energy, Utilities and Commerce.


SUPPORT:

None received

OPPOSED:

None received