Relating to the provision of water or sewer service by public entities operating jointly or concurrently.

Contracts

• Interlocal/Participation Agreements: Review all existing agreements regarding withdrawal. The statute overrides contract terms; you must now provide a 180-day notice (up from typical 90-day clauses) and obtain PUA resolution approval if your revenue secures debt.
• Bond Indentures: New issuances must reflect that Operation and Maintenance (O&M) expenses are now a statutory first lien against pledged revenue, taking priority over debt service. Adjust cash flow waterfalls accordingly.
• Collateral Resolutions: To use an existing facility to secure a *new* facility, you must now obtain a "Unanimous Resolution" from every participating public entity. Missing one signature invalidates the security structure.

Hiring/Training

• Billing & Customer Service: Staff must be trained to capture and validate ratepayer email addresses immediately. The law permits electronic rate change notices; failing to capture this data will result in significant postage and printing costs.
• Acquisition Teams: PUAs should designate a "Rapid Response" team. You now have priority to acquire failing utilities, but you must be prepared to file an application under Water Code 13.412(g) immediately upon notice of a system failure.

Reporting & Record-Keeping

• Rate Change Notices: The Board must send individual written notices to every appeal-eligible ratepayer within 60 days of a final rate decision. General website postings are no longer sufficient compliance.
• Asset Transfer Logs: Liability for facility management transfers strictly upon the date of ownership transfer. You must maintain precise closing records to demarcate liability for environmental or operational claims.

Fees & Costs

• Postage/Admin Costs: Budget for increased administrative costs associated with mandatory individual rate notices if digital contact data is incomplete.
• Debt Assumption: If a member entity withdraws, they are statutorily required to assume their prorated share of *all* outstanding debt existing at the time of withdrawal.