BILL NUMBER: AB 1163 CHAPTERED 09/27/02 CHAPTER 941 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2002 APPROVED BY GOVERNOR SEPTEMBER 26, 2002 PASSED THE ASSEMBLY AUGUST 28, 2002 PASSED THE SENATE AUGUST 22, 2002 AMENDED IN SENATE AUGUST 21, 2002 AMENDED IN SENATE AUGUST 12, 2002 AMENDED IN SENATE AUGUST 5, 2002 AMENDED IN SENATE JUNE 28, 2002 AMENDED IN SENATE JUNE 19, 2002 AMENDED IN SENATE MAY 21, 2002 AMENDED IN ASSEMBLY MAY 7, 2001 AMENDED IN ASSEMBLY APRIL 3, 2001 INTRODUCED BY Assembly Member Calderon FEBRUARY 23, 2001 An act to amend Section 60233.5 of the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGEST AB 1163, Calderon. Water Replenishment District of Southern California. (1) Existing law, the Water Replenishment District Act, authorizes the formation of water replenishment districts for the replenishment of groundwater within a district. The act requires the State Auditor to perform an audit with regard to the operations and management of the Water Replenishment District of Southern California and to submit a related report to the Legislature. The act provides that these provisions will be repealed on January 1, 2003. This bill would require the State Auditor to submit its report to the Legislature not later than June 30, 2004. The bill would require the cost of the audit to be reimbursed by the district's ratepayers. (2) The act prohibits the district from incurring any indebtedness on or after January 1, 2001, authorizes the district to increase its annual water replenishment district assessment under certain circumstances, and requires the district to pay for any capital project undertaken by the district with existing reserves or with funds generated from the imposition of its annual water replenishment assessment. This bill would delete these provisions and would instead require the district to develop a 5-year capital improvement program in accordance with certain requirements. The bill would provide that these provisions will be repealed on January 1, 2005. This bill would impose a state-mandated local program by imposing new duties on the district. (3) The act requires the district to consult with a technical advisory committee for certain projects relating to water quality improvement. This bill would instead require that the Central Basin Water Association and the West Basin Water Association appoint 6 professionals with expertise relating to water to a technical advisory committee, and would require the district to consult with the technical advisory committee in evaluating projects proposed by the district, including capital improvement projects, making recommendations to the board of the district, and establishing criteria relating to the construction of projects for water quality improvement purposes. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The waters of the state are a limited and renewable resource subject to increasing demands. (b) Groundwater resources are of critical importance to meeting the water supply needs of the more than 4 million people that live and work on the Southern Coastal Plain of Los Angeles County. (c) The Central and West Coast Basins are adjudicated groundwater basins that currently supply almost 40 percent of the water supply used in the area. (d) The Water Replenishment District of Southern California (district) was established in 1959 for the purpose of replenishing the groundwater supplies of the Central and West Coast Basins. (e) The district's ratepayers, which include numerous cities, special districts, and retail water purveyors, have rights and interests in the Central and West Coast Basins. These ratepayers include many cities in western Los Angeles County, including the Cities of Cerritos, Commerce, Compton, Downey, Lakewood, Long Beach, Los Angeles, Manhattan Beach, Montebello, Pico Rivera, Santa Fe Springs, Torrance, and Whittier. These ratepayers are directly accountable to the public and are responsible for providing reliable, cost-effective potable water service to their communities. (f) The State Auditor, in its May 2002 report, found weaknesses in the district's current strategic plan or capital improvement program that identifies and prioritizes the implementation of its capital improvement projects. (g) Disputes have arisen between the district and its ratepayers regarding the development of a long-range plan for managing the resources of the Central and West Coast Basins, including, but not limited to, the components of a capital improvement program to accomplish the statutory purpose of the district. (h) The State Auditor also found that improved communications between the district and its ratepayers is essential to the district' s ability to successfully carry out its statutory purpose. (i) The Department of Water Resources serves as watermaster in both the Central and West Coast Basins and has requested that all interested parties work together in a facilitated process in an effort to develop a mutually agreeable long-range water management plan. (j) It is intent of the Legislature to assist the district's ratepayers in creating a long-term solution to managing the resources of the Central and West Coast Basins and to ensure accountability to, and collaboration with, the district's ratepayers. SEC. 2. Section 60233.5 of the Water Code is amended to read: 60233.5. (a) Notwithstanding any other provision of this division, this section applies to the Water Replenishment District of Southern California. (b) (1) The State Auditor shall perform an audit with regard to the operations and management of the district. (2) The audit shall include an evaluation of the extent to which the district has complied with the recommendations of the report prepared by the State Auditor, dated May 2002, relating to the district. (3) The State Auditor shall prepare and submit to the Legislature, not later than June 30, 2004, a report that includes its findings and recommendations resulting from the audit performed pursuant to this subdivision. (4) The cost for the audit shall be reimbursed by the district's ratepayers. (c) (1) The Central Basin Water Association and the West Basin Water Association shall appoint six professionals with expertise relating to water, to a technical advisory committee. (2) The district shall consult with the technical advisory committee for the purpose of evaluating projects proposed by the district, including, but not limited to, capital improvement programs, and any amendments thereto, undertaken pursuant to subdivision (d), making recommendations to the board of the district, and establishing criteria relating to the construction of projects for water quality improvement purposes. (3) The district shall maintain records consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) regarding all proposed projects, the recommendations of the technical advisory committee, and the final decisions made by the board of the district with regard to those projects. (d) (1) The district shall develop a five-year capital improvement program (CIP). (2) The district shall consult with the technical advisory committee for the purpose of implementing a procedure to periodically update its capital improvement plan, including the development of a standardized approach to identify technical, legal, and financial risks related to capital improvement projects. (e) Nothing in this section is intended to alter the district's ultimate decisionmaking authority with regard to capital improvement projects. (f) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.