ALTADENA, Calif., May 14, 2026 — A coalition representing shareholders of California mutual water companies has launched a statewide grassroots campaign urging shareholders to oppose SB 1417 (Pérez), legislation they describe as a dangerous threat to the privacy and security of residents who own shares in community water systems.
This week, Small Water System Warriors distributed an urgent action alert to shareholders of Altadena’s three mutual water companies, as well as shareholders in mutual water companies throughout California, calling on residents to immediately contact legislators and oppose the measure before it advances further in the Legislature.
The group warns that SB 1417 would dismantle longstanding protections under California law that currently safeguard shareholder information held by mutual water companies. As drafted, the legislation would require companies to disclose shareholder contact and other private information in digital form upon request to a broad range of individuals and government officials, while providing no meaningful safeguards limiting how that information may later be used, distributed or exploited.
“Shareholders are deeply alarmed that this bill would force disclosure of personal information without adequate protections against misuse,” said Sandi McElhenney, member of the Disaster Information Task Force of the California Association of Mutual Water Companies and shareholder president of Krista Mutual Water Company in Tehachapi, California. “This legislation creates serious risks involving privacy violations, political targeting, commercial exploitation and fraud at a time when many Altadena residents are still recovering from disaster. It will discourage shareholders from participating in the governance of their non-profit water company.”
Mutual water companies are nonprofit, community-owned water cooperatives that collectively serve an estimated 1.5 million Californians. In Altadena, most residents receive water service through mutual water companies and are shareholders with direct ownership stakes in their local systems.
According to the shareholder alert, SB 1417 would:
— Require mutual water companies to provide shareholder contact information in digital form upon request
— Expand access to shareholder records beyond existing law
— Eliminate current statutory protections against disclosure of shareholder information
— Provide no clear restrictions on political, commercial or secondary use of disclosed information
— Create heightened risks involving privacy violations, misuse of personal data and fraud
The legislation has already passed the Senate Energy, Utilities and Communications Committee and is moving quickly through the Legislature.
The shareholder group is encouraging residents to contact bill authors and local legislators immediately and urge them to vote no on SB 1417.
Advocates say the stakes are particularly high in Altadena, where residents rebuilding after the Eaton Fire remain vulnerable to outside political and commercial pressures.
“What happens in Altadena will establish precedent for how mutual water company shareholders are treated throughout California,” Armstrong said. “Residents rebuilding their homes and their water systems should not be forced to surrender their privacy rights in the process.”
Small Water System Warriors is a California shareholder rights initiative focused on protecting community-owned water systems and ensuring shareholders understand their rights under California law.
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