Mutual water companies: assessments and water charges: notice

Shareholders, tenants, local officials, and nearby water agencies gain clearer access to proposed assessments and large water-rate increases. The law also gives affected people time to review and respond before new charges take effect.

What the law does ​

• Bars mutual water companies from billing shareholders’ tenants for water and delivery costs, except approved share or land lessees.
• Requires water-charge notices to go to the shareholder’s or applicable tenant’s last known address, or verified email address.
• Requires companies operating public water systems to give 45 days’ notice, publish a written explanation, and hold a public meeting before levying an assessment or raising shareholder water charges by more than 20%.
• Requires notices to eligible people, a local news outlet or county public-notice channel, and the company’s websites or social-media platforms.
• Requires board-meeting minutes to record each director’s vote and delays collection until at least 30 days after the public meeting adopting the charge.
• Expands access to company records and proposals, including free access when records are provided digitally.

Who it affects ​

• Mutual water companies that operate public water systems.
• Shareholders and qualifying tenants of mutual water companies.
• Residents and businesses receiving drinking water from those companies.
• City and county officials and chief administrative officers of nearby cities, counties, and government water agencies.