BILL NUMBER: SB 1384	CHAPTERED
	BILL TEXT

	CHAPTER  969
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2002
	PASSED THE SENATE  AUGUST 31, 2002
	PASSED THE ASSEMBLY  AUGUST 29, 2002
	AMENDED IN ASSEMBLY  AUGUST 28, 2002
	AMENDED IN ASSEMBLY  JULY 10, 2002
	AMENDED IN ASSEMBLY  JULY 2, 2002
	AMENDED IN ASSEMBLY  JUNE 20, 2002

INTRODUCED BY   Senator Costa

                        FEBRUARY 12, 2002

   An act to amend Section 56831 of the Government Code, and to amend
Section 10631 of the Water Code, relating to governance, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1384, Costa.  Governance.
   (1) Existing law prescribes the apportionment for the net
operating expenses of a local agency formation commission among the
county and the cities and special districts within the county.
   This bill would revise the method of calculating independent
special district revenues in order to determine independent special
districts' apportionments of the net operating expenses of a
commission, and would provide that no independent special district
shall be apportioned a share of more than 50% of the total
independent special districts' share of the commission's operational
costs without the consent of the district.  The bill would provide,
with respect to a district formed under the Local Health Care
District Law that operates a hospital, that the district may not be
apportioned any share until the fiscal year following positive net
revenue, as defined, or, if the district has filed for and is
operating under federal bankruptcy, until the fiscal year after its
discharge from bankruptcy.
   (2) The Urban Water Management Planning Act requires urban water
suppliers to prepare and adopt urban water management plans for
submission to the Department of Water Resources.  The act requires
those plans to include specified information, including demand
factors affecting the supplier's water management planning, existing
and planned sources of water available to the supplier in 5-year
increments to 20 years or as far as data is available, a description
of the reliability of the water supply and vulnerability to seasonal
or climatic shortage, and an urban water shortage contingency
analysis.
   This bill would require urban water suppliers that rely upon a
wholesale agency for a source of water, to provide the wholesale
agency with water use projections from that agency for that source of
water in 5-year increments to 20 years or as far as data is
available.  The wholesale agency would be required to provide
information to the urban water supplier for inclusion in the urban
water supplier's plan that identifies and quantifies, to the extent
practicable, existing and planned sources of water available from the
wholesale agency to the urban water supplier over the same 5-year
increments, and during various water-year types.
   (3) The California Safe Drinking Water Bond Law of 1988 permits
bond proceeds in the California Safe Drinking Water Fund to be used
for a grant program to public agency supplies, subject to specific
approval of the Legislature.
   This bill would make an appropriation by authorizing the
Department of Water Resources to make grants from the fund to 5
specified school districts in specified amounts for the purposes of
financing domestic water system improvement projects to meet state
and federal drinking water standards.
   (4) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  This act shall be known and may be cited as The Water
Omnibus Act of 2002.
  SEC. 2.  The Legislature finds and declares the following:
   (a) Whereas, water is fundamental to the future growth and the
quality of life in California.
   (b) Whereas, it is critical that a unified program of research,
education, and policy be directed at the complex water-related issues
facing the state now and into the future.
   (c) Whereas, the California Water Institute, located at California
State University, Fresno, is positioned to be the lead institution
in this effort.
   (d) Whereas, the institutions involved is a consortia of
California State University campuses working in the areas of water
quality, water quantity, and water allocation.
   (e) Whereas, the consortium includes the following campuses and
their associated water programs:
   (1) California State University, Fresno (California Water
Institute).
   (2) California State University, San Bernardino (Water Resources
Institute).
   (3) California State University, Monterey Bay (The Watershed
Institute).
   (4) California State University, Humboldt (Institute for Forestry
and Watershed Management).
   (f) Whereas, each of these sister campuses has ongoing programs
targeting key California water issues.
   (g) Whereas, the research activities of these California State
University programs are fully consistent with the mission of the
California Water Institute, which is to address critical policy and
research needs of agriculture, urban, and environmental water use in
the State of California.
   Therefore, the Legislature recognizes California State University
and the California Water Institute consortium for their leadership
and contribution in addressing California water and environmental
issues.
  SEC. 3.  Section 56381 of the Government Code is amended to read:
   56381.  (a) The commission shall adopt annually, following noticed
public hearings, a proposed budget by May 1 and final budget by June
15.  At a minimum, the proposed and final budget shall be equal to
the budget adopted for the previous fiscal year unless the commission
finds that reduced staffing or program costs will nevertheless allow
the commission to fulfill the purposes and programs of this chapter.
  The commission shall transmit its proposed and final budgets to the
board of supervisors; to each city; to the clerk and chair of the
city selection committee, if any, established in each county pursuant
to Article 11 (commencing with Section 50270) of Chapter 1 of Part 1
of Division 1; to each independent special district; and to the
clerk and chair of the independent special district selection
committee, if any, established pursuant to Section 56332.
   (b) After public hearings, consideration of comments, and adoption
of a final budget by the commission pursuant to subdivision (a), the
auditor shall apportion the net operating expenses of a commission
in the following manner:
   (1) (A) In counties in which there is city and independent special
district representation on the commission, the county, cities, and
independent special districts shall each provide a one-third share of
the commission's operational costs.
   (B) The cities' share shall be apportioned in proportion to each
city's total revenues, as reported in the most recent edition of the
Cities Annual Report published by the Controller, as a percentage of
the combined city revenues within a county, or by an alternative
method approved by a majority of cities representing the majority of
the combined cities' populations.
   (C) The independent special districts' share shall be apportioned
in proportion to each district's total revenues as a percentage of
the combined total district revenues within a county.  Except as
provided in subparagraph (D), an independent special district's total
revenue shall be calculated for nonenterprise activities as total
revenues for general purpose transactions less revenue category aid
from other governmental agencies and for enterprise activities as
total operating and nonoperating revenues less revenue category other
governmental agencies, as reported in the most recent edition of the
"Special Districts Annual Report" published by the Controller, or by
an alternative method approved by a majority of the agencies,
representing a majority of their combined populations.  For the
purposes of fulfilling the requirement of this section, a multicounty
independent special district shall be required to pay its
apportionment in its principal county.  It is the intent of the
Legislature that no single district or class or type of district
shall bear a disproportionate amount of the district share of costs.

   (D) (i) For purposes of apportioning costs to a health care
district formed pursuant to Division 23 (commencing with Section
32000) of the Health and Safety Code that operates a hospital, a
health care district's share, except as provided in clauses (ii) and
(iii), shall be apportioned in proportion to each district's net
revenue from operations as reported in the most recent edition of the
hospital financial disclosure report form published by the Office of
Statewide Health Planning and Development, as a percentage of the
combined independent special districts' net operating revenues within
a county.
   (ii) A health care district for which net revenue from operations
is a negative number may not be apportioned any share of the
commission's operational costs until the fiscal year following
positive net revenue from operations, as reported in the most recent
edition of the hospital financial disclosure report form published by
the Office of Statewide Health Planning and Development.
   (iii) A health care district that has filed and is operating under
public entity bankruptcy pursuant to federal bankruptcy law, shall
not be apportioned any share of the commission's operational costs
until the fiscal year following its discharge from bankruptcy.
   (E) Notwithstanding the requirements of subparagraph (C), the
independent special districts' share may be apportioned by an
alternative method approved by a majority of the districts,
representing a majority of the combined populations.  However, in no
event shall an individual district's apportionment exceed the amount
that would be calculated pursuant to subparagraphs (C) and (D), or in
excess of 50 percent of the total independent special districts'
share, without the consent of that district.
   (F) Notwithstanding the requirements of subparagraph (C), no
independent special district shall be apportioned a share of more
than 50 percent of the total independent special districts' share of
the commission's operational costs, without the consent of the
district as otherwise provided in this section.  In those counties in
which a district's share is limited to 50 percent of the total
independent special districts' share of the commission's operational
costs, the share of the remaining districts shall be increased on a
proportional basis so that the total amount for all districts equals
the share apportioned by the auditor to independent special
districts.
   (2) In counties in which there is no independent special district
representation on the commission, the county and its cities shall
each provide a one-half share of the commission's operational costs.
The cities' share shall be apportioned in the manner described in
paragraph (1).
   (3) In counties in which there are no cities, the county and its
special districts shall each provide a one-half share of the
commission's operational costs.  The independent special districts'
share shall be apportioned in the manner described for cities'
apportionment in paragraph (1).  If there is no independent special
district representation on the commission, the county shall pay all
of the commission's operational costs.
   (4) Instead of determining apportionment pursuant to paragraph
(1), (2), or (3), any alternative method of apportionment of the net
operating expenses of the commission may be used if approved by a
majority vote of each of the following:  the board of supervisors; a
majority of the cities representing a majority of the total
population of cities in the county; and the independent special
districts representing a majority of the combined total population of
independent special districts in the county.  However, in no event
shall an individual district's apportionment exceed the amount that
would be calculated pursuant to subparagraphs (C) and (D) of
paragraph (1), or in excess of 50 percent of the total independent
special districts' share, without the consent of that district.
   (c) After apportioning the costs as required in subdivision (b),
the auditor shall request payment from the board of supervisors and
from each city and each independent special district no later than
July 1 of each year for the amount that entity owes and the actual
administrative costs incurred by the auditor in apportioning costs
and requesting payment from each entity.  If the county, a city, or
an independent special district does not remit its required payment
within 60 days, the commission may determine an appropriate method of
collecting the required payment, including a request to the auditor
to collect an equivalent amount from the property tax, or any fee or
eligible revenue owed to the county, city, or district.  The auditor
shall provide written notice to the county, city, or district prior
to appropriating a share of the property tax or other revenue to the
commission for the payment due the commission pursuant to this
section.  Any expenses incurred by the commission or the auditor in
collecting late payments or successfully challenging nonpayment shall
be added to the payment owed to the commission.  Between the
beginning of the fiscal year and the time the auditor receives
payment from each affected city and district, the board of
supervisors shall transmit funds to the commission sufficient to
cover the first two months of the commission's operating expenses as
specified by the commission.  When the city and district payments are
received by the commission, the county's portion of the commission's
annual operating expenses shall be credited with funds already
received from the county.  If, at the end of the fiscal year, the
commission has funds in excess of what it needs, the commission may
retain those funds and calculate them into the following fiscal year'
s budget.  If, during the fiscal year, the commission is without
adequate funds to operate, the board of supervisors may loan the
commission funds and recover those funds in the commission's budget
for the following fiscal year.
  SEC. 4.  Section 10631 of the Water Code is amended to read:
   10631.  A plan shall be adopted in accordance with this chapter
and shall do all of the following:
   (a) Describe the service area of the supplier, including current
and projected population, climate, and other demographic factors
affecting the supplier's water management planning.  The projected
population estimates shall be based upon data from the state,
regional, or local service agency population projections within the
service area of the urban water supplier and shall be in five-year
increments to 20 years or as far as data is available.
   (b) Identify and quantify, to the extent practicable, the existing
and planned sources of water available to the supplier over the same
five-year increments described in subdivision (a).  If groundwater
is identified as an existing or planned source of water available to
the supplier, all of the following information shall be included in
the plan:
   (1) A copy of any groundwater management plan adopted by the urban
water supplier, including plans adopted pursuant to Part 2.75
(commencing with Section 10750), or any other specific authorization
for groundwater management.
   (2) A description of any groundwater basin or basins from which
the urban water supplier pumps groundwater.  For those basins for
which a court or the board has adjudicated the rights to pump
groundwater, a copy of the order or decree adopted by the court or
the board and a description of the amount of groundwater the urban
water supplier has the legal right to pump under the order or decree.
  For basins that have not been adjudicated, information as to
whether the department has identified the basin or basins as
overdrafted or has projected that the basin will become overdrafted
if present management conditions continue, in the most current
official departmental bulletin that characterizes the condition of
the groundwater basin, and a detailed description of the efforts
being undertaken by the urban water supplier to eliminate the
long-term overdraft condition.
   (3) A detailed description and analysis of the location, amount,
and sufficiency of groundwater pumped by the urban water supplier for
the past five years.  The description and analysis shall be based on
information that is reasonably available, including, but not limited
to, historic use records.
   (4) A detailed description and analysis of the amount and location
of groundwater that is projected to be pumped by the urban water
supplier.  The description and analysis shall be based on information
that is reasonably available, including, but not limited to,
historic use records.
   (c) Describe the reliability of the water supply and vulnerability
to seasonal or climatic shortage, to the extent practicable, and
provide data for each of the following:
   (1) An average water year.
   (2) A single dry water year.
   (3) Multiple dry water years.
   For any water source that may not be available at a consistent
level of use, given specific legal, environmental, water quality, or
climatic factors, describe plans to supplement or replace that source
with alternative sources or water demand management measures, to the
extent practicable.
   (d) Describe the opportunities for exchanges or transfers of water
on a short-term or long-term basis.
   (e) (1) Quantify, to the extent records are available, past and
current water use, over the same five-year increments described in
subdivision (a), and projected water use, identifying the uses among
water use sectors including, but not necessarily limited to, all of
the following uses:
   (A) Single-family residential.
   (B) Multifamily.
   (C) Commercial.
   (D) Industrial.
   (E) Institutional and governmental.
   (F) Landscape.
   (G) Sales to other agencies.
   (H) Saline water intrusion barriers, groundwater recharge, or
conjunctive use, or any combination thereof.
   (I) Agricultural.
   (2) The water use projections shall be in the same five-year
increments described in subdivision (a).
   (f) Provide a description of the supplier's water demand
management measures.  This description shall include all of the
following:
   (1) A description of each water demand management measure that is
currently being implemented, or scheduled for implementation,
including the steps necessary to implement any proposed measures,
including, but not limited to, all of the following:
   (A) Water survey programs for single-family residential and
multifamily residential customers.
   (B) Residential plumbing retrofit.
   (C) System water audits, leak detection, and repair.
   (D) Metering with commodity rates for all new connections and
retrofit of existing connections.
   (E) Large landscape conservation programs and incentives.
   (F) High-efficiency washing machine rebate programs.
   (G) Public information programs.
   (H) School education programs.
   (I) Conservation programs for commercial, industrial, and
institutional accounts.
   (J) Wholesale agency programs.
   (K) Conservation pricing.
   (L) Water conservation coordinator.
   (M) Water waste prohibition.
   (N) Residential ultra-low-flush toilet replacement programs.
   (2) A schedule of implementation for all water demand management
measures proposed or described in the plan.
   (3) A description of the methods, if any, that the supplier will
use to evaluate the effectiveness of water demand management measures
implemented or described under the plan.
   (4) An estimate, if available, of existing conservation savings on
water use within the supplier's service area, and the effect of the
savings on the supplier's ability to further reduce demand.
   (g) An evaluation of each water demand management measure listed
in paragraph (1) of subdivision (f) that is not currently being
implemented or scheduled for implementation.  In the course of the
evaluation, first consideration shall be given to water demand
management measures, or combination of measures, that offer lower
incremental costs than expanded or additional water supplies.  This
evaluation shall do all of the following:
   (1) Take into account economic and noneconomic factors, including
environmental, social, health, customer impact, and technological
factors.
   (2) Include a cost-benefit analysis, identifying total benefits
and total costs.
   (3) Include a description of funding available to implement any
planned water supply project that would provide water at a higher
unit cost.
   (4) Include a description of the water supplier's legal authority
to implement the measure and efforts to work with other relevant
agencies to ensure the implementation of the measure and to share the
cost of implementation.
   (h) Include a description of all water supply projects and water
supply programs that may be undertaken by the urban water supplier to
meet the total projected water use as established pursuant to
subdivision (a) of Section 10635.  The urban water supplier shall
include a detailed description of expected future projects and
programs, other than the demand management programs identified
pursuant to paragraph (1) of subdivision (f), that the urban water
supplier may implement to increase the amount of the water supply
available to the urban water supplier in average, single-dry, and
multiple-dry water years.  The description shall identify specific
projects and include a description of the increase in water supply
that is expected to be available from each project.  The description
shall include an estimate with regard to the implementation timeline
for each project or program.
   (i) Urban water suppliers that are members of the California Urban
Water Conservation Council and submit annual reports to that council
in accordance with the "Memorandum of Understanding Regarding Urban
Water Conservation in California," dated September 1991, may submit
the annual reports identifying water demand management measures
currently being implemented, or scheduled for implementation, to
satisfy the requirements of subdivisions (f) and (g).
   (j) Urban water suppliers that rely upon a wholesale agency for a
source of water, shall provide the wholesale agency with water use
projections from that agency for that source of water in five-year
increments to 20 years or as far as data is available.  The wholesale
agency shall provide information to the urban water supplier for
inclusion in the urban water supplier's plan that identifies and
quantifies, to the extent practicable, the existing and planned
sources of water as required by subdivision (b), available from the
wholesale agency to the urban water supplier over the same five-year
increments, and during various water-year types in accordance with
subdivision (c).  An urban water supplier may rely upon water supply
information provided by the wholesale agency in fulfilling the plan
informational requirements of subdivisions (b) and (c).
  SEC. 5.  (a) Pursuant to Sections 14011 and 14012 of the Water
Code, the Department of Water Resources may make grants from the
California Safe Drinking Water Fund in accordance with the California
Safe Drinking Water Bond Law of 1988 (Chapter 16 (commencing with
Section 14000) of Division 7 of the Water Code) to the following
entities in the following accounts for the purpose of financing
domestic water system improvement projects to meet state and federal
drinking water standards:
   (1) The Weaver Union School District in Merced County in the
amount of sixty-five thousand dollars ($65,000).
   (2) The La Honda Elementary School District in San Mateo County in
the amount of three hundred sixty thousand dollars ($360,000).
   (3) The Spring Valley School District in Butte County in the
amount of four hundred thousand dollars ($400,000).
   (4) The Mountain Union School District in Shasta County in the
amount of three hundred seventy thousand dollars ($370,000).
   (5) The Delta View Joint Union Elementary School District in Kings
County in the amount of forty-five thousand dollars ($45,000).
   (b) The Department of Water Resources shall determine eligibility
for any grant authorized in subdivision (a) in accordance with the
California Safe Drinking Water Bond Law of 1988 (Chapter 16
(commencing with Section 14000) of Division 7 of the Water Code), and
may make those grants in accordance with that bond law.
  SEC. 6.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to remedy critical water and special district funding
problems, thereby protecting the public health and safety, it is
necessary that this act take effect immediately.