AB 2568: Water district directors: compensation.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-27
Current Status:
Passed
(2026-09-27: Chaptered by Secretary of State - Chapter 621, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
The bill allows water districts serving at least 90,000 people to pay board members for up to 15 days in a month instead of the usual 10, but only until January 1, 2032. If a district pays for more than 10 days, the board must yearly adopt a written policy explaining, with findings supported by substantial evidence (strong factual support), why the extra days are necessary. The bill also keeps a limit that pay above $100 per day cannot increase by more than 5 percent per year.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law authorizes a water district, as defined, to adopt an ordinance that provides compensation to members of the governing board, as specified. Existing law prohibits a water district from adopting an ordinance that compensates members of the governing board for more than a total of 10 days in any calendar month.
This bill would, until January 1, 2032, authorize a water district that has at least 90,000 residents within its jurisdiction to adopt an ordinance that compensates members of the governing board for up to a total of 15 days in any calendar month, but would require the members of the governing board of a water district that compensates its members for more than 10 days in a calendar month to annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
Existing law authorizes a water district, as defined, to adopt an ordinance that provides compensation to members of the governing board, as specified. Existing law prohibits a water district from adopting an ordinance that compensates members of the governing board for more than a total of 10 days in any calendar month.
This bill would, until January 1, 2032, authorize a water district that has at least 90,000 residents within its jurisdiction to adopt an ordinance that compensates members of the governing board for up to a total of 15 days in any calendar month, but would require the members of the governing board of a water district that compensates its members for more than 10 days in a calendar month to annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
Existing law authorizes a water district, as defined, to adopt an ordinance that provides compensation to members of the governing board, as specified. Existing law prohibits a water district from adopting an ordinance that compensates members of the governing board for more than a total of 10 days in any calendar month.
This bill would instead prohibit would, until January 1, 2032, authorize a water district from adopting that has at least 90,000 residents within its jurisdiction to adopt an ordinance that compensates members of the governing board for more than up to a total of 15 days in any calendar month. month, but would require the members of the governing board of a water district that compensates its members for more than 10 days in a calendar month to annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
Existing law authorizes a water district, as defined, to adopt an ordinance that provides compensation to members of the governing board, as specified. Existing law prohibits a water district from adopting an ordinance that compensates members of the governing board for more than a total of 10 days in any calendar month.
This bill would authorize instead prohibit a water district to adopt from adopting an ordinance that compensates members of the governing board for up to more than a total of 20 15 days in any calendar month.
Existing law authorizes a water district, as defined, to adopt an ordinance that provides compensation to members of the governing board, as specified. Existing law prohibits a water district from adopting an ordinance that compensates members of the governing board for more than a total of 10 days in any calendar month.
This bill would authorize a water district to adopt an ordinance that compensates members of the governing board for up to a total of 20 days in any calendar month.
(a)An ordinance, adopted pursuant to this chapter, to increase the amount of compensation that may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation that is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month, except as otherwise provided in subdivision (c).
(c)No ordinance adopted pursuant to this chapter by a water district that has at least 90,000 residents within its jurisdiction shall authorize compensation for more than a total of 15 days in any calendar month.
(d)If a water district compensates its members for more than 10 days in a calendar month pursuant to subdivision (c), the members of the governing board of the water district shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
(e)This section shall remain in effect only until January 1, 2032, and as of that date is repealed.
SEC. 2.Section 20202 is added to the Water Code, to read:20202.(a)In any ordinance adopted pursuant to this chapter to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day, the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month.
(c)This section shall become operative on January 1, 2032.
(a)An ordinance, adopted pursuant to this chapter, to increase the amount of compensation that may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation that is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month, except as otherwise provided in subdivision (c).
(c)No ordinance adopted pursuant to this chapter by a water district that has at least 90,000 residents within its jurisdiction shall authorize compensation for more than a total of 15 days in any calendar month.
(d)If a water district compensates its members for more than 10 days in a calendar month pursuant to subdivision (c), the members of the governing board of the water district shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
(e)This section shall remain in effect only until January 1, 2032, and as of that date is repealed.
SEC. 2.Section 20202 is added to the Water Code, to read:20202.(a)In any ordinance adopted pursuant to this chapter to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day, the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month.
(c)This section shall become operative on January 1, 2032.
(a)An ordinance, adopted pursuant to this chapter, to increase the amount of compensation that may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation that is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month, except as otherwise provided in subdivision (c).
(b)(c)No ordinance adopted pursuant to this chapter by a water district that has at least 90,000 residents within its jurisdiction shall authorize compensation for more than a total of 15 days in any calendar month.
(d)If a water district compensates its members for more than 10 days in a calendar month pursuant to subdivision (c), the members of the governing board of the water district shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
(e)This section shall remain in effect only until January 1, 2032, and as of that date is repealed.
SEC. 2.Section 20202 is added to the Water Code, to read:20202.(a)In any ordinance adopted pursuant to this chapter to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day, the increase may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month.
(c)This section shall become operative on January 1, 2032.
(a)An ordinance, adopted pursuant to this chapter, to increase the amount of compensation that may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation that is received when the ordinance is adopted.
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 20 15 days in any calendar month.
In any ordinance (a)An ordinance, adopted pursuant to this chapter chapter, to increase the amount of compensation which that may be received by members of the governing board of a water district above the amount of one hundred dollars ($100) per day, the increase day may not exceed an amount equal to 5 percent, for each calendar year following the operative date of the last adjustment, of the compensation which that is received when the ordinance is adopted.
No
(b)No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 20 days in any calendar month.
|
Date
|
Status
|
|---|---|
| Sep 27, 2026 | Chaptered by Secretary of State - Chapter 621, Statutes of 2026. |
| Sep 27, 2026 | Approved by the Governor. |
| Aug 28, 2026 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 24, 2026 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 24, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Jun 18, 2026 | Read second time. Ordered to third reading. |
| Jun 17, 2026 | From committee: Do pass. (Ayes 6. Noes 0.) (June 17). |
| May 20, 2026 | Referred to Com. on L. GOV. |
| May 12, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 11, 2026 | Read third time. Passed. Ordered to the Senate. |
| May 11, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0.) |
| May 11, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 4992.) |
| May 4, 2026 | Read second time. Ordered to third reading. |
| Apr 30, 2026 | Withdrawn from committee. |
| Apr 30, 2026 | Ordered to second reading. |
| Apr 28, 2026 | Re-referred to Com. on APPR. |
| Apr 27, 2026 | Read second time and amended. |
| Apr 23, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 22). |
| Mar 11, 2026 | Re-referred to Com. on L. GOV. |
| Mar 10, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 9, 2026 | Referred to Com. on L. GOV. |
| Feb 21, 2026 | From printer. May be heard in committee March 23. |
| Feb 20, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 24, 2026 | Assembly 3rd Reading AB2568 Johnson By Jones | Senate Floor |
Passed |
|
| Jun 17, 2026 | Do pass | Senate Standing Committee on Local Government |
Passed |
|
| May 11, 2026 | AB 2568 Johnson Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 22, 2026 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association of California Water Agencies (ACWA) | ** Support | |
| California Special Districts Association | ** Support | |
| Desert Water Agency | ** Support | |
| Water Replenishment District | ** Support | |
| Water Replenishment District Of Southern California | ** Support | |
| West Valley Water District | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2568 |
THIRD READING
Bill No: AB 2568
Author: Johnson (R)
Amended: 4/27/26 in Assembly
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE: 6-0, 6/17/26
AYES: Durazo, Choi, Arreguín, Cervantes, Laird, Seyarto
NO VOTE RECORDED: Ashby
ASSEMBLY FLOOR: 70-0, 5/11/26 - See last page for vote
SUBJECT: Water district directors: compensation
SOURCE: West Valley Water District
DIGEST:
Authorizes, until January 1, 2032, certain water districts to compensate board members for up to 15 days a month.
ANALYSIS:
Existing law:
- Specifies that, notwithstanding any other provision of law, the governing board of any water district may, by ordinance, provide compensation to members of the governing board, unless any compensation is prohibited by its principal act, in an amount not to exceed $100 per day for each day’s attendance at meetings of the board, or for each day’s service rendered as a member of the board by request of the board, and may, by ordinance, increase the compensation received by members of the governing board above the amount of $100 per day, as specified
- Provides that the determination of whether a director’s activities on any specific day are compensable shall be made pursuant to existing law
- Specifies that in any ordinance adopted to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of $100 per day, the increase may not exceed an amount equal to 5%, for each calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted. No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month
- Provides that any water district described in 5), below, is authorized to adopt ordinances pursuant to this chapter. No ordinance shall be adopted except following a public hearing. Notice of the hearing shall be published in a newspaper of general circulation, as specified
- Defines for the purposes of 1) through 4), above, “water district” to mean any district or other political subdivision, other than a city or county, a primary function of which is the irrigation, reclamation, or drainage of land or the diversion, storage, management, or distribution of water primarily for domestic, municipal, agricultural, industrial, recreation, fish and wildlife enhancement, flood control, or power production purposes. “Water districts” include, but are not limited to, irrigation districts, county water districts, California water districts, water storage districts, reclamation districts, county waterworks districts, drainage districts, water replenishment districts, levee districts, municipal water districts, water conservation districts, community services districts, water management districts, flood control districts, flood control and floodwater conservation districts, flood control and water conservation districts, water management agencies, water agencies, and specified public utility districts
This bill:
- Authorizes specified water districts that have at least 90,000 residents within their jurisdiction to allow for board members to be compensated for up to a total of 15 days in any calendar month.
- Provides that, if a water district compensates its members for more than 10 days in a calendar month, the members of the governing board of the water district shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
- Specifies that the above provisions shall remain in effect only until January 1, 2032, and as of that date are repealed.
Background
Board member meetings. A local agency may compensate members of its legislative body for attending specified events (AB 1234, Salinas, Chapter 700, Statutes of 2005):
- A meeting of the legislative body;
- A meeting of an advisory body;
- A conference or educational activity that complies with the Brown Act, including ethics training; and
- Other events, but only if the governing body has adopted a written policy specifying those other occasions.
Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. In addition, many, but not all, districts may also increase the daily rate for attending meetings by five percent per year by annually adopting an ordinance that provides for such an increase.
Many special districts can also reimburse the members of their legislative bodies for their actual and necessary expenses to attend meetings. Local officials must fill out expense reports and provide receipts to receive reimbursement. At their next regular meeting after the meeting for which reimbursement was provided, officials must also give brief reports about the meetings they attended at the agency's expense.
In 2018, the Legislature allowed one water district, Santa Clara Valley Water District (SCVWD), to compensate its board members up to 15 days per month until December 31, 2023 (AB 1889, Caballero, Chapter 251, Statutes of 2018). The Legislature later repealed the sunset date in 2023 to allow SCVWD to indefinitely compensate its members 15 meeting days a month (AB 939, Pellerin, Chapter 170, Statutes of 2023).
West Valley Water District. The West Valley Water District (WVWD) serves residents primarily in San Bernardino County with a small service area extending into Riverside County. First formed as the West San Bernardino County Water District in 1952, the district now operates five treatment plants, 360 miles of pipeline, 25 reservoirs, 17 wells, and serves roughly 20,000 service connections, providing drinking water to 100,000 residents. WVWD’s five-member board of directors governs the district, with voters electing directors to four-year terms. WVWD’s board approved a policy that allows for a variety of meetings, events, and conferences to be eligible for compensation. This includes regular board meetings, conferences, community meetings, and any other activity the board preapproves. Currently, WVWD board of directors receive compensation for up to 10 days per month like other water districts. Although state law sets the base stipend at $100 per meeting, the WVWD board has frequently exercised its ability to increase that rate by 5% annually, putting the current stipend amount at $227 per meeting, for a total of $27,240 per year.
Comments
According to the author, “AB 2568 updates the outdated statutory cap on water board member compensation to reflect the complex regulatory and operational realities modern water districts face. By providing permissive authority to increase the monthly meeting cap from 10 to 15 days, this bill ensures directors are fairly compensated for the actual time required for essential governance and regional coordination.”
Raise your glass. Local agencies compensate their board members for the time and expenses associated with serving on behalf of the district. This compensation generally takes the form of a per-meeting payment, up to a maximum number of meetings per year. Limiting the number of meetings for which a public agency can compensate its members with taxpayer funds builds in a safeguard by ensuring that board members don’t claim more compensation than they need to perform their duties. AB 2568 relaxes this limitation by increasing the number of meetings for which board members may be compensated, potentially eroding the public’s trust in the motivations of their elected officials. By expanding the number of days board members get compensated, it may create an incentive for board members to schedule meetings across different days in order to increase their compensation, regardless of whether those meetings are necessary. Although board compensation is intended to support effective governance and facilitate participation in district oversight, questions from the public may arise as to whether the proposed increased in compensated days is necessary to achieve those objectives.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 6/18/26)
West Valley Water District (Source)
Association of California Water Agencies (ACWA)
California Special Districts Association
Desert Water Agency
Water Replenishment District
OPPOSITION: (Verified 6/18/26)
None received
ASSEMBLY FLOOR: 70-0, 5/11/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Macedo, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Ramos, Ransom, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, DeMaio, Lee, Lowenthal, McKinnor, Quirk-Silva, Celeste Rodriguez, Michelle Rodriguez, Solache, Soria
Prepared by: Itzel Vargas / L. GOV. / (916) 651-4119
6/19/26 14:57:59
**** END ****
SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2025 - 2026 Regular
Bill No: | AB 2568 | Hearing Date: | 6/17/26 |
Author: | Johnson | Fiscal: | No |
Version: | 4/27/26 | Consultant: | Vargas |
Water district directors: compensation
Authorizes, until January 1, 2032, certain water districts to compensate board members for up to 15 days a month.
Background
Special district board member compensation is traditionally dictated by the enabling act of that type of special district. Due to the differing enabling acts, the amount that each type of special district can compensate its board members varies significantly. The most common compensation for special districts’ board members are stipends. Many districts pay stipends to their board members for attending a meeting or performing a day's work, following statutory schedules. Most types of special districts can compensate board members $100 or more per meeting, while others are prohibited from providing any compensation.
Board member meetings. A local agency may compensate members of its legislative body for attending specified events (AB 1234, Salinas, 2005):
- A meeting of the legislative body;
- A meeting of an advisory body;
- A conference or educational activity that complies with the Brown Act, including ethics training; and
- Other events, but only if the governing body has adopted a written policy specifying those other occasions.
Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month. In addition, many, but not all, districts may also increase the daily rate for attending meetings by five percent per year by annually adopting an ordinance that provides for such an increase.
Many special districts can also reimburse the members of their legislative bodies for their actual and necessary expenses to attend meetings. Local officials must fill out expense reports and provide receipts to receive reimbursement. At their next regular meeting after the meeting for which reimbursement was provided, officials must also give brief reports about the meetings they attended at the agency's expense.
In 2018, the Legislature allowed one water district, Santa Clara Valley Water District (SCVWD), to compensate its board members up to 15 days per month until December 31, 2023 (AB 1889, Caballero). The Legislature later repealed the sunset date in 2023 to allow SCVWD to indefinitely compensate its members 15 meeting days a month (AB 939, Pellerin).
West Valley Water District. The West Valley Water District serves residents primarily in San Bernardino County with a small service area extending into Riverside County. First formed as the West San Bernardino County Water District in 1952, the district now operates five treatment plants, 360 miles of pipeline, 25 reservoirs, 17 wells, and serves roughly 20,000 service connections, providing drinking water to 100,000 residents. WVWD’s five-member board of directors governs the district, with voters electing directors to four-year terms. WVWD’s board approved a policy that allows for a variety of meetings, events, and conferences to be eligible for compensation. This includes regular board meetings, conferences, community meetings, and any other activity the board preapproves. Currently, WVWD board of directors receive compensation for up to 10 days per month like other water districts. Although state law sets the base stipend at $100 per meeting, the WVWD board has frequently exercised its ability to increase that rate by 5% annually, putting the current stipend amount at $227 per meeting, for a total of $27,240 per year.
WVWD states its board members frequently reach the 10-day limit by the middle of the month by participating in a wide range of governance activities. WVWD wants the Legislature to increase the number of days the board can compensate its board members.
Proposed Law
Assembly Bill 2568, until January 1, 2032, allows a water district with at least 90,000 residents within its jurisdiction to compensate its board members for up to 15 days in any calendar month. If a water district compensates its board members for more than 10 days in a month, the governing board must annually adopt a written policy describing why providing additional compensation is necessary for the effective operation of the water district.
Comments
1. Purpose of the bill. According to the author, “AB 2568 updates the outdated statutory cap on water board member compensation to reflect the complex regulatory and operational realities modern water districts face. By providing permissive authority to increase the monthly meeting cap from 10 to 15 days, this bill ensures directors are fairly compensated for the actual time required for essential governance and regional coordination.”
2. Raise your glass. Local agencies compensate their board members for the time and expenses associated with serving on behalf of the district. This compensation generally takes the form of a per-meeting payment, up to a maximum number of meetings per year. Limiting the number of meetings for which a public agency can compensate its members with taxpayer funds builds in a safeguard by ensuring that board members don’t claim more compensation than they need to perform their duties. AB 2568 relaxes this limitation by increasing the number of meetings for which board members may be compensated, potentially eroding the public’s trust in the motivations of their elected officials. By expanding the number of days board members get compensated, it may create an incentive for board members to schedule meetings across different days in order to increase their compensation, regardless of whether those meetings are necessary. Although board compensation is intended to support effective governance and facilitate participation in district oversight, questions from the public may arise as to whether the proposed increased in compensated days is necessary to achieve those objectives.
Assembly Actions
Assembly Local Government Committee: 10-0
Assembly Floor: 70-0
Support and Opposition
(6/12/2026)
Support: West Valley Water District (Sponsor)
Association of California Water Agencies (ACWA)
California Special Districts Association
Desert Water Agency
Water Replenishment District
Opposition: None Submitted
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2568
Author:(Johnson)
As Amended Ver:April 27, 2026
Majority vote
SUMMARY
Authorizes specified water districts to compensate its board members for up to 15, instead of 10, days a month.
Major Provisions
- Authorizes specified water districts that have at least 90,000 residents within their jurisdiction to allow for board members to be compensated for up to a total of 15 days in any calendar month.
- Provides that, if a water district compensates its members for more than 10 days in a calendar month, the members of the governing board of the water district shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why providing compensation for more than 10 days per calendar month is necessary for the effective operation of the water district.
- Specifies that the above provisions shall remain in effect only until January 1, 2032, and as of that date are repealed.
COMMENTS
Water District Board Compensation. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. Due to the differing enabling acts, the amount that each type of special district can compensate its board members varies. The most common compensation for special districts' board members are stipends. Many districts pay stipends to their board members for attending a meeting or performing a day's work, following statutory schedules. Most types of special districts can compensate board members $100 or more per meeting, while others are prohibited from providing any compensation.
A local agency may generally compensate members of its legislative body for attending the following specified events [AB 1234 (Salinas), Chapter 700, Statutes of 2005]:
- A meeting of the legislative body.
- A meeting of an advisory body.
- A conference or educational activity that complies with the Ralph M. Brown Act, including ethics training.
- Other events, but only if the governing body has adopted a written policy specifying those other occasions.
Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month [AB 653 (Jones), Chapter 111, Statutes of 1989]. In addition, water districts may also increase the daily rate for attending meetings by 5% per year by annually adopting an ordinance that provides for such an increase.
Committee staff is aware of one water district, the Santa Clara Valley Water District (Valley Water), that can compensate its board members for up to 15 days per month [AB 1889 (Caballero), Chapter 251, Statutes of 2018, and AB 939 (Pellerin), Chapter 170, Statutes of 2023.]
According to the Author
According to the author, "AB 2568 updates the outdated statutory cap on water board member compensation to reflect the complex regulatory and operational realities modern water districts face. By providing permissive authority to increase the monthly meeting cap from 10 to 15 days, this bill ensures directors are fairly compensated for the actual time required for essential governance and regional coordination."
Arguments in Support
According to the West Valley Water District, the sponsors of this bill, "A statutory cap of 10 meeting days, originally established in the early 1980s, no longer reflects the operational realities and governance demands faced by modern water agencies. West Valley board members frequently reach the 10-day limit by the middle of the month, particularly during legislative sessions and periods of increased community engagement. "
"Although most water districts hold one or two regular board meetings per month, directors are expected to participate in a wide array of additional governance activities that are critical to the effective oversight of water systems. These responsibilities include, but are not limited to:
- Standing committees (e.g., finance, engineering, operations, personnel)
- Ad hoc or advisory committees (formed for specific projects or negotiations)
- Joint powers authorities (JPAs) or regional partnerships
- Intra and Interagency coordination (with cities, counties, or other special districts)
- Industry Conferences "
"These additional obligations can easily exceed the statutory cap on compensated meetings. As a result, board members often attend essential governance meetings without compensation, even when their participation is necessary for responsible oversight of district operations."
"Modern water districts also face increasingly complex regulatory, financial, and environmental challenges. Issues such as drought planning, recycled water development, groundwater sustainability under the Sustainable Groundwater Management Act (SGMA), emergency preparedness, and compliance with state and federal mandates require significant board engagement. Addressing these challenges frequently involves technical briefings, stakeholder consultations, coordination across multiple agencies, and special meetings during emergencies such as droughts, wildfires, or system failures."
"In addition, the current compensation structure may inadvertently limit who is able to serve on water district boards. A recent study from University of California, Davis found that women hold approximately 27% of water board positions, Latinos hold about 15%, and other people of color occupy roughly 5% of seats statewide. Allowing board members to receive compensation for additional meeting days is expected to lead to greater diversity, thereby improving community representation and broader participation in water governance."
Arguments in Opposition
None on file.
FISCAL COMMENTS
None.
VOTES
ASM LOCAL GOVERNMENT: 10-0-0
YES: Carrillo, Ta, Johnson, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
UPDATED
VERSION: April 27, 2026
CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0002460
Date of Hearing: April 22, 2026
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
ABPCA Bill Id:AB 2568 (
Author:Johnson) – As Amended Ver:March 10, 2026
SUBJECT: Water district directors: compensation.
SUMMARY: Authorizes specified water districts to be compensated for up to 15, instead of 10, days a month.
EXISTING LAW:
- Specifies that, notwithstanding any other provision of law, the governing board of any water district may, by ordinance, provide compensation to members of the governing board, unless any compensation is prohibited by its principal act, in an amount not to exceed $100 per day for each day’s attendance at meetings of the board, or for each day’s service rendered as a member of the board by request of the board, and may, by ordinance, increase the compensation received by members of the governing board above the amount of $100 per day, as specified [Water Code (WC) § 20201].
- Provides that the determination of whether a director’s activities on any specific day are compensable shall be made pursuant to existing law (WC § 20201).
- Specifies that in any ordinance adopted to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of $100 per day, the increase may not exceed an amount equal to 5%, for each calendar year following the operative date of the last adjustment, of the compensation which is received when the ordinance is adopted. No ordinance adopted pursuant to this chapter shall authorize compensation for more than a total of 10 days in any calendar month (WC § 20202).
- Provides that any water district described in 5), below, is authorized to adopt ordinances pursuant to this chapter. No ordinance shall be adopted except following a public hearing. Notice of the hearing shall be published in a newspaper of general circulation, as specified (WC § 20202).
- Defines for the purposes of 1) through 4), above, “water district” to mean any district or other political subdivision, other than a city or county, a primary function of which is the irrigation, reclamation, or drainage of land or the diversion, storage, management, or distribution of water primarily for domestic, municipal, agricultural, industrial, recreation, fish and wildlife enhancement, flood control, or power production purposes. “Water districts” include, but are not limited to, irrigation districts, county water districts, California water districts, water storage districts, reclamation districts, county waterworks districts, drainage districts, water replenishment districts, levee districts, municipal water districts, water conservation districts, community services districts, water management districts, flood control districts, flood control and floodwater conservation districts, flood control and water conservation districts, water management agencies, water agencies, and specified public utility districts (WC § 20200).
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
- Bill Summary and Author’s Statement. This bill allows specified water districts to be compensated for up to 15, instead of 10, days a month. The West Valley Water District is the sponsor of this bill.
According to the author, “AB 2568 updates the outdated statutory cap on water board member compensation to reflect the complex regulatory and operational realities modern water districts face. By providing permissive authority to increase the monthly meeting cap from 10 to 15 days, this bill ensures directors are fairly compensated for the actual time required for essential governance and regional coordination.”
- Water District Board Compensation. Board Member Meetings. Special district board member compensation is traditionally dictated by the enabling act of that type of special district. Due to the differing enabling acts, the amount that each type of special district can compensate its board members varies. The most common compensation for special districts' board members are stipends. Many districts pay stipends to their board members for attending a meeting or performing a day's work, following statutory schedules. Most types of special districts can compensate board members $100 or more per meeting, while others are prohibited from providing any compensation.
A local agency may generally compensate members of its legislative body for attending the following specified events [AB 1234 (Salinas), Chapter 700, Statutes of 2005]:
- A meeting of the legislative body.
- A meeting of an advisory body.
- A conference or educational activity that complies with the Ralph M. Brown Act, including ethics training.
- Other events, but only if the governing body has adopted a written policy specifying those other occasions.
- A meeting of the legislative body.
Districts that are allowed to provide compensation are usually limited to doing so for a maximum number of meetings per calendar month. Most special districts that perform some type of water service, whether it be flood control, drinking water, or irrigation, can compensate their board members up to $100 per day for a maximum of 10 days per calendar month [AB 653 (Jones), Chapter 111, Statutes of 1989]. In addition, water districts may also increase the daily rate for attending meetings by 5% per year by annually adopting an ordinance that provides for such an increase.
Committee staff is aware of one water district, the Santa Clara Valley Water District (Valley Water), that can compensate its board members up to 15 days per month [AB 1889 (Caballero), Chapter 251, Statutes of 2018, and AB 939 (Pellerin), Chapter 170, Statutes of 2023.]
- Policy Considerations. Having a low statutory cap on the number of meetings for which a public agency can compensate its members using taxpayer funds builds in a safeguard against inappropriate payments for unrelated activities. This bill allows many different types of water districts to increase their number of compensable days from 10 to 15 a month. However, not every water district may need to meet this often. The one water district that committee staff is aware of that can compensate its board members up to 15 days per month is Valley Water. Valley Water is a large district which serves more than 2 million people, manages 10 reservoirs and dams, 2 groundwater basins, 3 treatment plants, and flood risk reduction infrastructure. The size and complexity of water districts varies significantly. Not every water district’s board may need to spend the same amount of time governing its district as Valley Water’s governing board. Given these differences between the state’s water districts, to which this bill would apply, the Committee may wish to consider if additional safeguards need to be added.
- Committee Amendments. In response to the policy consideration above, the Committee may wish to consider the following amendments:
- Add a 5-year sunset date.
- Limit this bill to only apply to water districts that have at least 90,000 residents within their jurisdiction.
- Add the following language: Commencing January 1, 2027, if the water district compensates its members for more than 10 days in a calendar month, the board of trustees shall annually adopt a written policy describing, based on a finding supported by substantial evidence, why more than 10 days per calendar month are necessary for the effective operation of the water district.
- Arguments in Support. According to the West Valley Water District, the sponsors of this bill, “A statutory cap of 10 meeting days, originally established in the early 1980s, no longer reflects the operational realities and governance demands faced by modern water agencies. West Valley board members frequently reach the 10-day limit by the middle of the month, particularly during legislative sessions and periods of increased community engagement.
“Although most water districts hold one or two regular board meetings per month, directors are expected to participate in a wide array of additional governance activities that are critical to the effective oversight of water systems. These responsibilities include, but are not limited to:
- Standing committees (e.g., finance, engineering, operations, personnel)
- Ad hoc or advisory committees (formed for specific projects or negotiations)
- Joint powers authorities (JPAs) or regional partnerships
- Intra and Interagency coordination (with cities, counties, or other special districts)
- Industry Conferences
“These additional obligations can easily exceed the statutory cap on compensated meetings. As a result, board members often attend essential governance meetings without compensation, even when their participation is necessary for responsible oversight of district operations.
“Modern water districts also face increasingly complex regulatory, financial, and environmental challenges. Issues such as drought planning, recycled water development, groundwater sustainability under the Sustainable Groundwater Management Act (SGMA), emergency preparedness, and compliance with state and federal mandates require significant board engagement. Addressing these challenges frequently involves technical briefings, stakeholder consultations, coordination across multiple agencies, and special meetings during emergencies such as droughts, wildfires, or system failures.
“In addition, the current compensation structure may inadvertently limit who is able to serve on water district boards. A recent study from University of California, Davis found that women hold approximately 27% of water board positions, Latinos hold about 15%, and other people of color occupy roughly 5% of seats statewide. Allowing board members to receive compensation for additional meeting days is expected to lead to greater diversity, thereby improving community representation and broader participation in water governance.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
West Valley Water District [SPONSOR]
Association of California Water Agencies
California Special Districts Association
Desert Water Agency
Water Replenishment District of Southern California
Opposition
None on file
Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958
Discussed in Hearing
Senate Floor
Senate Standing Committee on Local Government
Assembly Floor
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):