Article 12. Board Member Training of California Health And Safety Code >> Division 104. >> Part 12. >> Chapter 4. >> Article 12.
(a) Each board member of a mutual water company that
operates a public water system, as defined in Section 116275, shall,
within six months of taking office, or by December 31, 2012, if that
member was serving on the board on December 31, 2011, complete a
two-hour course offered by a qualified trainer regarding the duties
of board members of mutual water companies, including, but not
limited to, the duty of a corporate director to avoid contractual
conflicts of interest and fiduciary duties, the duties of public
water systems to provide clean drinking water that complies with the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
this chapter, and long-term management of a public water system. A
board member of a mutual water company that operates a public water
system shall repeat this training every six years. For the purposes
of this subdivision, a trainer may be qualified in any of the
following ways:
(1) Membership in the California State Bar.
(2) Accreditation by the International Association of Continuing
Education and Training (IACET) ANSI/IACET 1-2007.
(3) Sponsorship by either the Rural Community Assistance
Corporation or the California Rural Water Association.
(b) A mutual water company formed pursuant to Part 7 (commencing
with Section 14300) of Division 3 of Title 1 of the Corporations
Code, that operates a public water system, shall be liable for the
payment of any fines, penalties, costs, expenses, and other amounts
that may be imposed upon the mutual water company pursuant to this
chapter. The mutual water company may levy an assessment, pursuant to
Section 14303 of the Corporations Code, to pay these fines,
penalties, costs, expenses, and other amounts so imposed. If the
amount of outstanding fines, penalties, costs, expenses and other
amounts imposed pursuant to this chapter exceed 5 percent of the
annual budget of the mutual water company, then the mutual water
company shall levy an assessment, pursuant to Section 14303 of the
Corporations Code, to pay those fines, penalties, costs, expenses,
and other amounts so imposed.