BILL NUMBER: AB 152 CHAPTERED 10/13/01 CHAPTER 810 FILED WITH SECRETARY OF STATE OCTOBER 13, 2001 APPROVED BY GOVERNOR OCTOBER 12, 2001 PASSED THE ASSEMBLY AUGUST 27, 2001 PASSED THE SENATE AUGUST 23, 2001 AMENDED IN SENATE AUGUST 20, 2001 AMENDED IN SENATE MAY 14, 2001 AMENDED IN SENATE MAY 3, 2001 AMENDED IN ASSEMBLY APRIL 23, 2001 AMENDED IN ASSEMBLY APRIL 16, 2001 INTRODUCED BY Assembly Member Calderon (Coauthors: Assembly Members Chavez, Daucher, and Robert Pacheco) (Coauthor: Senator Margett) JANUARY 29, 2001 An act to amend Sections 508 and 511 of, and to add Section 401.1 to, the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), relating to the San Gabriel Basin Water Quality Authority, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 152, Calderon. San Gabriel Water Quality Authority: board members. (1) The San Gabriel Water Quality Authority Act requires the board of the San Gabriel Water Quality Authority to be composed of 7 members, 3 of whom are water district members, 2 of whom are city members, and 2 of whom are producer members. The act requires city members and their alternates to be elected and to be city council members. The act requires water district members and their alternates to be appointed and to be members of the board of a water district. The act defines a producer member to mean a member who, pursuant to a specified court judgment, is a designee of a producer other than a water district or a city that is a holder of at least 5% of the prescriptive pumping rights in the Main San Gabriel Basin. The act generally requires all actions of the board to be approved by an affirmative vote of a majority of all of the board members and, in addition, for certain actions, including the adoption of the authority's budget, requires that that vote include at least one city member, one producer member, and one water district member. Existing law prohibits the board members of a district, as defined, from being financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. This bill would authorize the authority to contract with any producer, defined to include a producer under the specified court judgment and a business entity that is a majority owner or corporate affiliate of that producer if no producer member, or his or her alternate, votes on the contract. The bill would provide that the financial interest of any producer member in a contract between a producer and the authority, or the fact that a producer member may have an ownership interest in, or hold the position of, a shareholder, director, officer, agent, or employee of that producer, does not constitute a violation of the above-described conflict-of-interest provision, if specified requirements are met. The bill would require a contract with a producer, or a successor in interest to a producer, to be approved by the affirmative vote of a majority of all of the board members, other than producer members. The bill would delete the requirement that the adoption of the authority's budget be approved by at least one city member, one producer member, and one water district member. The bill would provide that if a city member or alternate city member ceases to be a city council member, the office occupied by that member on the board of the authority shall be deemed vacant. The bill would provide that if a water district member or alternate water district member ceases to be a member of a water district, the office occupied by that member on the board of the authority shall be deemed vacant. (2) This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares that the adoption of this act is necessary to ensure that the mission of the San Gabriel Basin Water Quality Authority to coordinate, and provide funding for, the remediation of the largest Superfund site in the country is promptly, efficiently, and thoroughly pursued. (b) The Legislature further finds and declares that the adoption of this act is necessary to enable the San Gabriel Basin Water Quality Authority to continue to enter into contracts with private water producers and other public agencies for the purposes of carrying out the mission of the authority described in subdivision (a). SEC. 2. Section 401.1 is added to the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), to read: 401.1. (a) (1) The authority may contract with any producer or a successor in interest to a producer if no producer member, or alternate appointed to the board pursuant to Section 503.1, votes on the contract. (2) A contract described in paragraph (1) shall be approved by an affirmative vote of a majority of all of the members, other than producer members. (b) The financial or other interest of any producer member in any contract between a producer or a successor in interest to a producer and the authority, or the fact that a producer member may have an ownership interest in, or hold the position of, a shareholder, director, officer, agent, or employee of that producer or successor in interest to that producer, does not constitute a violation of Section 1090 of the Government Code, nor shall that interest or fact render the contract void or make it voidable under Section 1092 of the Government Code if both of the following occur: (1) The interest and the status as shareholder, possessor of other ownership interest, director, officer, agent, or employee, as applicable, is disclosed to the board of the authority and recorded in its official records. (2) The producer member with the interest or the status described in paragraph (1) does not participate in a board vote to approve the contract. (c) For the purposes of this section, a producer means, in addition to a producer under the judgment, any business entity that is a majority owner or corporate affiliate of a producer. (d) The members of the board are subject to the Political Reform Act (Title 9 (commencing with Section 81000) of the Government Code). SEC. 3. Section 508 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992) is amended to read: Sec. 508. Any vacancy in the office of a member shall be filled as follows: (a) (1) A vacancy in the office of a member or alternate who was appointed by a water district shall be filled by the appointing water district by a resolution adopted by a majority vote of the district governing board. The person appointed to fill the vacancy shall meet the qualifications applicable to the vacant office and shall serve for the remaining term of the vacant office. (2) If a water district member or alternate water district member ceases to be a member of the board of directors of a water district, the office on the board occupied by that member shall be deemed vacant. (b) (1) A vacancy in the office of a member or alternate who was elected by cities shall be filled by a special election called by the authority. Only those cities which elected the member or alternate to the office in which the vacancy has occurred are eligible to vote. Nominations and balloting shall be conducted in the same manner as a regular election, except that the date of the election and time periods shall be as prescribed by the authority. The member or alternate elected to fill a vacancy shall meet the qualifications applicable to the vacant office and shall serve for the remaining term of the vacant office. (2) If a city member or alternate city member ceases to be a city council member, the office on the board occupied by that member shall be deemed vacant. (c) A vacancy in the office of a producer member or alternate who was appointed by the board of directors of the Water Association shall be filled pursuant to Section 503.1. SEC. 3.5. Section 511 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992) is amended to read: Sec. 511. (a) Except as otherwise provided, all actions of the board shall be approved by an affirmative vote of a majority of all of the members. (b) Notwithstanding subdivision (a), an affirmative vote of a majority of all of the members shall include one city member, one producer member, and one water district member to take any of the following actions: (1) Pursue legal action pursuant to subdivision (c) of Section 407. (2) Impose an annual pumping right assessment pursuant to Section 605 or to continue an assessment pursuant to Section 614. (3) Make a determination pursuant to subdivision (a) or (d) of Section 707. SEC. 4. The Legislature finds and declares that the amendments to Section 508 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992) made by Section 3 of this act are declaratory of, and do not constitute a change in, existing law. SEC. 5. 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 remove statutory impediments that prevent the San Gabriel Basin Water Quality Authority from contracting for and implementing the immediate cleanup of contaminated groundwater necessary to restore safe and reliable water supplies for drinking water, public health and sanitation, and fire suppression purposes for approximately one million people in the San Gabriel Valley who rely upon the groundwater for their water supply, and to clarify provisions relating to board members and alternate members who are appointed by water districts or elected by cities, as soon as possible, it is necessary that this act take effect immediately.