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Item 8.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETINGDATE: JULY11, 2019
SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERSAND PROVIDE
DIRECTION ON PRIORITY LEGISLATION
SUBMITTED BY: INITIATING DEPARTMENT:
EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND
INTERGOVERNMENTAL RELATIONS INTERGOV REL
MANAGER
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ANN SASAKI, DEPUTY GENERAL MANAGER
ISSUE
In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to
staff on positions related to priority legislation.
BACKGROUND
Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special
significance to the Board, the General Manager will present information to the Board on priority legislation.
The Board may then provide direction as to Central San's position on the legislation.
Staff has reviewed pending legislation and worked with member associations to identify possible direct
impacts on Central San. The process to create and pass legislation is constantly in flux; the priority
legislation presented in this Position Paper represents the most confident analysis and due diligence
research at this time. As new information becomes available, it will be presented at future Board
meetings.
The attached Priority Legislative Tracking Sheet contains information on known matters through June 25,
2019, and other items of interest for the Board.
ALTERNATIVES/CONSIDERATIONS
The Board may choose from the following positions on each piece of legislation:
• Support
July 11, 2019 Special Board Meeting Agenda Packet- Page 148 of 241
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• Support if Amended
• Neutral
• Oppose Unless Amended
• Oppose
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
This matter was not reviewed by a Board Committee.
RECOMMENDED BOARD ACTION
If applicable, take one of the following actions on Priority Legislative Tracking Sheet or another legislative
matter:
1. Adopt staff recommended position(s)on the priority legislation; or
2. Adopt a different position on one or more pieces of the priority legislation; or
3. Take no action
Strategic Plan Tie-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Build external customer relationships and awareness
ATTACHMENTS:
1. Central San 2019 Priority Legislation Tracking Sheet
2. CSDA article on recent budget deal
3. General Election 2020 Eligible State Ballot Measures that Impact Central San
4. NACWA article re PFAS Package Passes Senate
July 11, 2019 Special Board Meeting Agenda Packet- Page 149 of 241
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Central San 2019 Priority Legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board Notes
State List/Position Staff Direction Decision
1 State Ting AB 68 Land Use: This bill reintroduces language from 2018 AB Oppose Unless Watch 03/07/19 Watch 7/3/19 Hearing set in Senate Environmental
D-San Francisco Accessory 2890 (Ting) regarding accessory dwelling Amended: ACWA, Quality Committee. 6/18/19 Hearing set for Senate
Dwelling Units units with prohibitions on local ordinances CSDA, CMUA, CASA Housing and Environmental Quality Committee.
from imposing some limitations on size and 5/29/19 Referred to Senate Committees on
location. This bill maintains a wastewater Housing and Environmental Quality and
utility's ability to collect a proportional Governance and Finance. 5/22/19 Read third time
connection fee, but prohibits capacity and and passed out of Assembly (61-10). 5/20/19
connection fees on ADUs or junior ADUs that Read Second time in Assembly. 5/16/19 Passed
are "substantially"within the existing space from Assembly Appropriations Committee (15-1).
of a single-family dwelling or accessory 4/24/19 On Suspense File in Assembly
structure, including reconstruction of an Appropriations. 4/10/19 Passed from Assembly
existing space with substantially the same Local Government Committee to Appropriations
physical dimensions as the existing Committee. 3/27/19 Amended and referred to
accessory structure. Committee on Housing and Community
Development.
2 State Ting AB 69 Land Use: This bill introduces language related to Watch: ACWA Watch 03/07/19 Watch 7/1/19 Hearing set in Senate Appropriations
D-San Francisco Accessory oversight by the state on local ordinances on Committee. 6/18/19 Hearing set for Senate
Dwelling Units size and location that would impact Housing and Environmental Quality Committee.
construction of accessory dwelling units. This 5/29/19 To Senate Housing Committee. 5/22/19
bill does not address utility connection fees at Read third time and passed out of Assembly (78-
this time. 0). 5/20/19 Read Second time in Assembly.
5/16/19 Passed from Assembly Appropriations
Committee (18-0). 4/24/19 On Suspense File in
Assembly Appropriations. 4/4/19 Referred to
Appropriations Committee. 3/27/19 Amended and
referred to Committee on Housing and Community
Development.
3 State Wiekowski SB 13 Accessory This bill is a spot bill regarding accessory CSDA: Oppose Watch 03/07/19 Watch 6/24/19 Re-referred to Local Governement
D-Fremont Dwelling Units dwelling units. In 2018 this author did Committee. 6/19/19 Hearing set for Assembly
introduce language that would eliminate the Housing and Community Development
utility connection fee for new construction of Committee. 6/6/19 To Assembly Committees on
an accessory dwelling unit. Housing and Community Development and Local
Government. 5/22/19 Read third time and passed
Senate (34-2). 5/20/19 Read second time again.
5/17/19 Read second time and amended in
Senate. 5/16/19 Passed from Senate
Appropriations Committee (6-0). 5/6/19 In Senate
Appropriations Committee in Suspense File.
4/23/19 Re-referred to Senate Appropriations
Committee. 4/10/19 Hearing set in Local Gov't
Committee. 4/1/19 Need clarification from author
on whether "impact fees" are inclusive of
"connection fees".
July 1 11
, 2019 Special Board +ting Agenda Pa et- Page 150 of 24
Page 4 of 11
Central San 2019 Priority Legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board Notes
State List/Position Staff Direction Decision
4 State Friedman AB 1180 Water: recycled This bill requires Title 22 for non-potable Sponsored by Support 03/07/19 Support b/24/19 In Senate Appropriations Suspense file.
D-Glendale water uses to be updated by the Water Board by WateReuse California, 6/5/19 Passed out of Senate Environmental
2023. It also requires that a change over Support: CASA, CSDA Quality Committee. 5/29/19 Assigned to Senate
device (such as swivel ell) be incorporated Environmental Quality Committee. 5/22/19 Passed
into the Title 17 update currently underway. A from Assembly (78-0). 5/20/19 Read second time
draft for the Title 17 changes will be released in Assembly. 5/16/19 Passed from Assembly
in late summer 2019. WRCA (a member of Appropriations Committee (18-0). 4/24/19 In
the Title 17 handbook committee) has Suspense File in Assembly Appropriations
requested that a change over device or Committee. 4/1/19 Sent back to Appropriations
swivel ell be included as part of this update. Committee. 3/27/19 Passed out to Appropriations
Committee. Support letter sent to Assembly
Environmental Safety and Toxic Materials on
3/19/19.
5 State Bloom AB 1672 Nonwoven This bill shall not allow an entity to label a Sponsored by CASA, Support 03/07/19 Support 5/16/19 Held on Suspense in Assembly
D-Santa Monica disposable covered product as safe to flush, safe for Support: CSDA Appropriations. This bill is dead for 2019 Session,
products sewer systems, or safe for septic systems, but will turn into a two-year bill in 2020. 5/16/19
unless the product is a flushable wipe. The Hearing set for Assembly Appropriations
entity must certify if their product is flushable Committee. 5/8/19 Assembly Appropriations
under compliance with the performance Committee put in Suspense File. 4/23/19 Testified
standards. Noncompliant products will be Central San's support at Assembly Judiciary
issued a notice of violation by the enforcing Committee and passed on 9-2 vote. 4/8/19
agency, providing 30 days for the products to Testified Central San's support at Assembly
be recalled and may be penalized for every Environmental Safety and Toxic Materials
day thereafter. Committee. 4/3/19 Letter of support sent. 3/28/19
Bill will be heard in the Asm. Environmental Safety
and Toxics Materials Committee on April 9th, and
again in the Assembly Judiciary Committee on
April 23rd. In print on 3/18/19. Will likely be triple
referred to committees.
July 11, 2019 Special Board Meeting Agenda Packet- Page 151 of 241
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Central San 2019 Priority legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board Notes
State List/Position Staff Direction Decision
6 State Hertzberg SB 332 Ocean Discharge This bill proposes a 50% reduction in ocean Opposed: CASA, CSDA, Oppose 03/07/19 Oppose 5/21/19 This bill is dead for 2019 Session. 5/16/19
D-Van Nuys & discharges by 2030, and a 95% reduction in ACWA. Oppose Unless Unless Held on Suspense in Senate Appropriations
Wiener ocean discharges by 2040. Amended: WateReuse. Amended Committee hearing. 4/23/19 Passed from Senate
D-San Francisco Support: Clean Water Judiciary Committee on 7-2 vote, now headed to
Action, Heal the Bay, Appropriations Committee. 4/8/19 Staff is currently
Sierra Club, Friends of assessing costs to Central San as per Board
the River, City of Los Member Pilecki's request. 4/8/19 Hearing video
Angeles sent to Board. 4/5/19 CASA requests no side
meetings or deals with author. Coalition formed
with WateReuse, ACWA, and others. 4/3/19 At
hearing - CASA testified. Many concerns from the
committee, but passed to Judiciary Committee.
Coalition formed to oppose bill. CASA developing
opposition letter, and will issue Call-to-Action
within two weeks. Main issues with the bill:
unfunded mandate, does not take into
consideration wet weather flows and storage
constraints, current permit restrictions on
discharges to streams, etc, potential State growth
that could increase discharge flows.
7 State Cooley AB 510 Local Government Existing law authorizes the head of a Sponsored by CSDA Support 03/07/19 Support 4/1/19 This bill is dead. Consumers Attorneys
D-Rancho Cordova Records: department of a county or city, or the head of asked author to pull the bill. Author complied.
destruction of a special district to destroy recordings of Letter of support sent 3/19/19.
records routine video monitoring maintained by that
county, city, or special district after one year
if that person receives approval from the
legislative body and the written consent of
the agency attorney and to destroy
recordings of telephone and radio
communications maintained by that county,
city, or special district after 100 days if that
person receives approval from the legislative
body and the written consent of the agency
attorney. This bill would exempt the head of a
department of a county or city, or the head of
a special district from these recording
retention requirements if the county, city, or
special district adopts a records retention
policy governing recordings of routine video
monitoring and recordings of telephone and
radio communications.
July 11, 2019 Special Board Meeting Agenda Packet- Page 152 of 241
Page 6 of 11
Central San 2019 Priority Legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board Notes
State List/Position Staff Direction Decision
8 State Rubio AB 405 Sales and use Would exempt from Sales and Use Tax the CASA: Support, CSDA: Support 03/07/19 Watch 5/16/19 This bill is dead for the 2019 Session.
D-Baldwin Park taxes: exemption: gross receipts from the sale in this state of, Watch 5/16/16 Held in Assembly Appropriations
water treatment and the storage, use, or other consumption in Committee. 5/6/19 passed out of Assembly
this state of, chemicals used to treat water, Revenue and Taxation Committee on 9-0 vote.
recycled water, or wastewater regardless of 4/25/19 Re-referred to Assembly Committee on
whether those chemicals or other agents Revenue and Taxation. Fact sheet provided to
become a component part thereof and Board on 3/21.
regardless of whether the treatment takes
place before or after the delivery to
consumers.
9 State Wiener SB 69 Ocean Resiliency This bill prescribes nutrient removal by Sponsored by Coast 6/20/19 03/21/19 6/20/19 7/2/19 Hearing set in Assembly Water, Parks and
D-San Francisco Act of 2019 denitrification without scientific basis and Keepers, Watch Board Watch Wildlife Committee. 6/18/19 Set for hearing at
without regard to ongoing collaborative Oppose: CASA Unless 3/21/19 Opposed 3/21/19 Assembly Water, Parks, and Wildlife Committee.
nutrients research efforts currently underway Amend to remove Oppose Oppose 6/6/19 To Assembly Committees on Water, Parks,
in the Bay Area. It also disregards the current denitrification section and and Wildlife and Natural Resources. 5/21/19 Bill
regulation of nutrients by the SF Bay address marine amendments printed and detitrification portion
Regional Water Board through the Nutrients managed area section was removed from bill. Board member McGill and
Watershed Permit (approved by EPA). This staffer Barnett met with Sen Wiener's staff- only
is an unfunded mandate that could cost up to minor mention of bill. 5/16/19 Set for hearing in
$12.413 in costs to Bay Area dischargers. Senate Appropriations. 4/29/19 Re-referred to
This bill does apply to both ocean and bay Senate Appropriations Committee. 4/11/19 Read
dischargers. second time in Senate, amended and re-referred
to Environmental Quality Committee. 4/9/19
Hearing set in Senate Natural Resources and
Water Committee. 4/1/19 Author provided
amendments which did not address any of the
impacts to the wastewater industry. Set for April 9
hearing in Senate Natural Resources and Water.
July 11, 2019 Special Board Meeting Agenda Packet- Page 153 of 241
Page 7 of 11
Central San 2019 Priority Legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board
State List/Position Staff Direction Decision
10 State Allen SB 54 (paired California Circular SB 54/AB 1080 establish a comprehensive Support: California Support 03/21/19 Support 6/24/19 Amended in Assembly Natural Resources
D-Santa Monica bill is AB 1080) Economy and framework to address the pollution and waste Product Stewardship Committee, amendments not yet in print. 6/6/19
Skinner Plastic Pollution crisis. Specifically, single-use plastic Council To Assembly Natural Resources Committee.
D-Berkeley Reduction Act packaging and products sold or distributed in 5/29/19 Passed out of Senate (28-8). 5/23/19
Stern California by must be reduced, recycled or Read Second time. 5/22/19 Read third time -
D-Canoga Park composted by 75 percent by 2030. All single- amended. 5/16/19 Read second time in Senate.
Wiener use packaging and products must be 5/16/19 Passed Senate Appropriations (4-2).
D-San Francisco recyclable or compostable on and after 2030. 5/7/19 amended in Senate Appropriations.3/25/19
As part of a shift towards a more circular Read second time in Appropriations Committee.
economy, the bills also instructs CalRecycle Attached fact sheet for March 21 st Board meeting.
to develop incentives and policies to
encourage in-state manufacturing using
recycled material generated in California.
CalRecycle will be given authority to adopt
regulations to meet these goals, including
developing criteria to determine which
packaging material qualifies as recyclable or
compostable.
11 State Ting AB 1486 Local agencies: This bill has been amended. It would only Oppose: CASA, Oppose 5/2/19 Watch, 5/2/19, 5/2/19 7/2/19 Hearing set in Senate Housing Committee.
D-San Francisco surplus land allow for first right of refusal for housing Unless Amend: CSDA 3/21/19 Oppose 3/21/19 Watch, 6/26/19 Hearing set in Senate Governance and
entities for land not used for an agency's 3/21/19 Finance Committee. 5/29/19 Read third time and
governmental operations. Some issues with Oppose Passed from Assembly (53-20). 5/16/19 Read
bill still exist. Working with author. This second time in Assembly. 5/16/19 Passed
would Fon,,, . 1 d,Etr!nt that would Assembly Appropriations Committee (12-4).
se,elease +ra.,s;for, „r ether GGRveyaRGe 5/15/16 Hearing set for Assembly Appropriations
their real property to fi-st E;eRd wFitteR RGt!Ge Committee. 5/2/19 Central San Board changed to
of availability for possible affordable hOUSiRg. Watch position. CSDA continues to work with
author. 4/25/19 In Assembly Coauthors revised.
4/11/19 Amended in Assembly and back to
Committee. 4/10/19 Passed heavily amended out
of Asm Housing and Community Development
Committee. 4/10/19 Hearing date set in Asm Local
Gov't Committee.
12 Federal Congressmember H.R. 1764 Permit term This bill would amend the Federal Water Support: CASA Support 03/21/19 Support 5/2/19 Letter of Support sent from Western
Garamendi extension Pollution Control Act to extend National Recycled Water Coalition to Congressmember
D-California 3rd Pollutant Discharge Elimination System Garamendi supporting bill. Central San listed as
District Permit (NPDES) for up to 10 years. supporter. 3/28/19 Interagency Letter of Support
led by Central San sent to DeSaulnier's office with
cc to CASA. Attached letter for 4/4/19 Board
meeting.
July 11, 2019 Special Board Meeting Agenda Packet- Page 154 of 241
Page 8 of 11
Central San 2019 Priority Legislative Tracking Sheet as of - Attachment 1
Federal/ Industry Position Date of Board
Author Legislation Also Known As Summary Organization(s) Priority Recommended by Board Notes
State List/Position Staff Direction Decision
13 State Stone AB 749 Settlement Prohibits a settlement agreement in an Oppose: CSDA Oppose 04/04/19 Oppose 6/25/19 Heard in Senate Judiciary Committee.
D-Monterey Bay agreements: employment dispute from containing a 5/8/19 Letter Opposing bill sent to Senators Glazer
restraints in trade provision prohibiting, preventing, or otherwise and Dodd.5/2/19 Bauer-Kahan supported the bill
restricting a settling party that is an aggrieved to pass out of Assembly. Grayson did not vote on
person from working for the employer against bill. 4/10/19 In Assembly for third reading. 4/9/19
which the aggrieved person has filed a claim. Hearing set in Assembly Judiciary Committee.
The result will be that all serious discipline 4/1/19 HR and Legal reviewed and requested this
matters and terminations will have to be tried be placed as priority legislation, position: Oppose.
to a verdict, increasing attorney's fees.
14 State Cooley ACR 89 Declaring Special Assembly Resolution that would declare Sponsor: CSDA Support 05/16/19 Support 6/24/19 Sent to Senate Rules Committee. 5/21/19
D-Rancho Cordova Districts Week September 22-28, 2019 as Special Districts Board Member McGill spoke to multiple Asm/Sen
Sept 22-28, 2019 Week. offices in support of ACR 89 for CSDA Legislative
Day's Conference. 5/16/19 To Assembly Rules
Committee. 5/6/19 Offically introduced. 5/3/19 In
print and number assigned. Request from CSDA
to support resolution.
15 State Mullin AB 1509 Lithium-Ion Establishes the Lithium Ion Battery Recycling Sponsor: California Support 06/20/19 Support 7/3/19 Hearing set in Senate Environmental
D-South San Battery Fire Program in the Department of Resources Product Stewardship Quality Committee. 6/10/19 David Wyatt - Central
Francisco Prevention Act Recycling and Recovery. Requires an entity Council (CPSC) San's HHW Supervisor reviewed legislation and
Berman by 2021 to provide an annual list of lithium- requested support position. 6/10/19 Requested
D-Palo Alto ion batteries sold seperately or sold with a Call to Action by CPSC to sign on to support bill.
product within the state. The bill would also
require a fee by the entitiy to the Department
to manage proper disposal options for lithium-
ion batteries. This is a producer responsibility
bill.
July 11, 2019 Special Board Meeting Agenda Packet- Page 155 of 241
Page 9 of 11
Attachment 2
California Special
Districts Association
CRAMlT! Districts Stronger Together 6/21/19
Governor Reaches Deal for First Budget
After months of negotiations, Governor Gavin Newsom and California
lawmakers reached a deal on the 2019-20 State Budget, which will take effect
in July 1 , following the Governor's signature. An extraordinary budget surplus
was used to expand healthcare and other programs, while also setting aside
billions of dollars in reserve funds in anticipation of an economic downturn.
The $214.8 billion budget deal, passed by both houses of the State Legislature
last Thursday, includes new spending on schools and homelessness, while
bringing the total in the "Rainy-Day" surplus fund to $19 billion.
Some aspects of the budget bill include:
• $98 million to let undocumented young adults under age 26 enroll in
Medi-Cal.
• An individual mandate penalty to fine people who don't buy health
insurance.
• Nearly $13 million for communities affected by the Camp Fire in Northern
California ($7 million of which will be going to the Paradise Irrigation
District, which lost almost all of their customer base in the fire, to help
cover one year of operations).
• Over $2 billion to address housing and homelessness, including $250
million to help cities and counties plan for new housing as well as an
additional $650 million for local government assistance to homeless
programs.
• Extension to paid family leave benefits from 6 weeks to 8 weeks
beginning July 1, 2020, and reduction of the reserve requirement for the
Disability Insurance Fund from 45 percent to 30 percent beginning July
1 , 2019.
• A plan to fund safe and affordable drinking water projects with a
statewide tax on water was abandoned, but the budget appropriates
$130 million per year (planned through 2030) from the Greenhouse Gas
Reduction Fund to clean up drinking water in some parts of the state.
A proposal to divert property tax dollars away from special districts, schools,
and other local agencies to fund new projects instead of paying down former
redevelopment agency debt was also defeated during budget negotiations.
July 11, 2019 Special Board Meeting Agenda Packet- Page 156 of 241
Page 10 of 11
Attachment 3
2020 General Election Qualifying Ballot Measure that Impact Central San
Requires Certain Commercial and Industrial Real Property to be Taxed Based on Fair-
Market Value. Dedicates Portion of Any Increased Revenue to Education and Local
Services. Initiative Constitutional Amendment.
Taxes certain commercial and industrial real property based on fair-market value—rather than,
under current law, the purchase price with limited inflation. Exempts agricultural property and
certain small businesses. Dedicates portion of any increased revenue to local services and to
supplement, not replace, state's minimum-funding guarantee to schools. Provides tax
exemption for$500,000 worth of tangible personal property used for business and all personal
property used for certain small businesses. Summary of estimate by Legislative Analyst and
Director of Finance of fiscal impact on state and local government: Net increase in annual
property tax revenues of$6.5 billion to $10.5 billion in most years, depending on the strength of
real estate markets. After paying for county administrative costs and backfilling state income tax
losses related to the measure, the remaining $6 billion to $10 billion would be allocated to
schools (40 percent) and other local governments (60 percent).
July 11, 2019 Special Board Meeting Agenda Packet- Page 157 of 241
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Attachment 4
NACWA16)),
THE VOICE FOR A CLEAN WATER FUTURE
PFAS Package Passes Senate
(July 3, 2019) -A major bipartisan effort to address PFAS chemicals advanced last week, as a
package of bills that had been passed by the Senate Environment and Public Works (EPW)
Committee was successfully attached to the Senate's National Defense Authorization Act. The
Defense bill passed the Senate on an 86-8 vote.
In attaching the PFAS bills to the Defense bill, Senate leaders believe they may have found the
quickest path to getting PFAS legislation through Congress and to President Trump's desk.
The bipartisan PFAS package has the support of EPW Chairman John Barrasso (R-WY) and
Ranking Member Tom Carper(D-DE). The bill is also supported by other Senate champions for
PFAS action, such as Sen. Shelley Moore Capito (D-WV), whose state has been acutely affected
by groundwater hotspot concerns.
The bill requires EPA to set a Maximum Contaminant Level for drinking water and provides
monitoring assistance for water systems, requires tracking of PFAS by the US Geological
Survey, and mandates reporting of PFAS discharges through Toxic Release Inventory reporting,
among other requirements.
The bill does not, however, direct EPA to designate PFAS as "hazardous substances"under the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). This is
an important win for NACWA member utilities and their strong advocacy on this issue.
However, the issue of CERCLA designation remains an area of interest in the Senate.
Accordingly,NACWA will remain engaged with Congress regarding the potential unintended
impact that a hazardous substance designation for all PFAS could have on the municipal clean
water community.
The focus on PFAS legislation is now anticipated to shift to the House of Representatives.
Numerous PFAS bills have been introduced in the House,but the House committees of
jurisdiction have not yet released a comprehensive legislative package. More work in the House
is anticipated throughout the summer.
July 11, 2019 Special Board Meeting Agenda Packet- Page 158 of 241