Assembly Bill 240 (“AB 240”) introduced by Assembly Member Anthony Rendon has been signed by Governor Brown and takes effect on January 1, 2014. AB 240 will significantly impact the way mutual water companies that operate public water systems conduct their business.
Many Californians receive their drinking water from mutual water companies. These are private water companies, many of which operate public water systems. The state or local department of health may require water quality reports; however, no other public agency oversees their operations. The intent of AB 240 is to force mutual water companies to