BILL NUMBER: AB 1747	CHAPTERED
	BILL TEXT

	CHAPTER  240
	FILED WITH SECRETARY OF STATE  AUGUST 13, 2003
	APPROVED BY GOVERNOR  AUGUST 13, 2003
	PASSED THE ASSEMBLY  JULY 29, 2003
	PASSED THE SENATE  JULY 27, 2003
	AMENDED IN SENATE  JULY 27, 2003
	AMENDED IN SENATE  JULY 27, 2003
	AMENDED IN SENATE  JULY 24, 2003
	AMENDED IN SENATE  JUNE 24, 2003
	AMENDED IN ASSEMBLY  MAY 29, 2003
	AMENDED IN ASSEMBLY  APRIL 28, 2003

INTRODUCED BY   Committee on Budget (Oropeza (Chair), Bermudez, Chan,
Chu, Diaz, Dutra, Dymally, Goldberg, Hancock, Jackson, Liu,
Montanez, Nakano, Pavley, Reyes, Simitian, and Wolk)

                        MARCH 11, 2003

   An act to amend Section 11361 of the Government Code, to amend
Section 713 of the Fish and Game Code, to Sections 2699.5, 2705,
2705.5, 2706, 2709.1, 3109, 3110, 3111, 3236.5, 3343, 3358, 3719,
3724.6, 3754.5, 3770, 3776, 5006.1, 5627, 6217, and 34000 of, and to
add Sections 2200.5 and 5015.6 to, the Public Resources Code, to add
Sections 79505.5, 79505.6, 79506.7, 79522, 79532, 79534, 79540.1,
79547, 79547.2, 79555, 79560.5, 79561.5, 79562.5, 79564.1, and 79590
to, and to add Chapter 10.5 (commencing with Section 79575) to
Division 26.5 of, the Water Code, relating to public resources, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1747, Committee on Budget.  Public resources.
   (1) Under existing law, the changes in the Implicit Price Deflator
for State and Local Government Purchases of Goods and Services is
used as the index to determine an annual rate of increase or decrease
in the fees for hunting and fishing licenses, stamps, permits, and
tags.
   This bill would include other entitlements in that index.
   (2) Under existing law, money in the Seismic Hazards
Identification Fund, a special fund in the State Treasury, is
continuously appropriated to the Division of Mines and Geology for
mapping of seismic hazards in the state.
   This bill would rename that fund the Strong-Motion Instrumentation
and Seismic Hazards Mapping Fund.  The bill would require that
moneys in the fund, upon appropriation by the Legislature, be
expended for seismic hazards mapping and for the strong-motion
instrumentation program.
   Under existing law, money in the Strong-Motion Instrumentation
Special Fund in the State Treasury is continuously appropriated to
the Division of Mines and Geology for the strong-motion
instrumentation program.
   This bill would eliminate the Strong-Motion Instrumentation
Special Fund in the State Treasury and transfer money in that fund to
the Strong-Motion Instrumentation and Seismic Hazards Mapping Fund.

   The bill would make these provisions operative on July 1, 2004.
   (3) Existing law requires cities and counties to collect a
specified fee from each applicant for a building permit.  The funds
collected, less a certain portion of the funds that may be retained
by cities and counties for specified purposes related to seismic
events, are deposited in the Seismic Hazards Identification Fund or
the Strong-Motion Instrumentation Special Fund according to a
specified formula.
   This bill instead would require that those funds, less those funds
retained by a city or county, as specified, be deposited in the
Strong-Motion Instrumentation and Seismic Hazards Mapping Fund for
seismic hazards mapping and for the strong-motion instrumentation
program.
   The bill would make these provisions operative on July 1, 2004.
   (4) Existing law requires that all money paid to the Treasurer
pursuant to the provisions regulating the conservation of oil and gas
be deposited in the General Fund.
   This bill would establish the Oil, Gas, and Geothermal
Administrative Fund in the State Treasury and would require that
certain revenues collected under those provisions be deposited in the
fund.
   (5) Existing law requires the Department of Parks and Recreation
to hold a public hearing within the county in which a proposed state
park project is located, prior to submitting a proposal for an
appropriation to acquire real property for the project through a
purchase agreement, if the real property is more than $5,000,000 in
value.  Existing law requires the department to provide written
notice of its intent to acquire the real property to the city or
county, or both, having jurisdiction over the property, as early as
possible in the acquisition process, but not less than 90 days from
the date of acquisition.  If the acquisition is between $500,000 and
$5,000,000, existing law authorizes a member of the city council or
board of supervisors to request that the department hold a public
hearing regarding the acquisition of the property.  Existing law
imposes similar requirements for property that is not proposed to be
acquired through a purchase agreement.
   This bill would require the department to additionally provide
written notice of its intent to acquire the real property through a
purchase agreement to the chair and vice chair of the joint
legislative budget committee, the chairs of the budget subcommittees
having jurisdiction over resources, the chairs of the appropriate
legislative policy committees, and to the legislators within whose
districts the property proposed for acquisition is located, as early
as possible in the acquisition process, but not less than 90 days
from the date of acquisition.  Within 30 days of receiving written
notice of the proposed acquisition, the bill would authorize a Member
of the Legislature who has been notified, to request that the
department hold a public hearing regarding the acquisition of the
property.
   (6) The existing Roberti-Z'berg-Harris Urban Open-Space and
Recreation Program Act (urban open-space act) provides for grants to
cities, counties, and districts, as defined, for purposes related to
parks and recreation.  The urban open-space act generally requires
cities, counties, and districts receiving grants to provide matching
money, as specified.
   The California Clean Water, Clean Air, Safe Neighborhood Parks,
and Coastal Protection Act of 2002 authorizes bond funds from that
act to be appropriated to the Department of Parks and Recreation for
grants in accordance with the urban open-space act.
   This bill would provide that notwithstanding the urban open-space
act's requirement of matching money, funds from the California Clean
Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act
of 2002 that are or have been appropriated on or before June 30,
2004, for the purposes of the urban open-space act do not require
local matching money.
   (7) Existing law requires the State Lands Commission to deposit in
the General Fund all revenue, money, and remittances received by the
commission, except as to revenue from school lands and other
specified sources.  Existing law requires that money to be used for
specified purposes, including refunds, commission expenses, and
payments to cities and counties.  Under existing law, those
provisions become operative on July 1, 2003.
   This bill would, instead, make those provisions operative on July
1, 2006.
   (8) Existing law, the Surface Mining and Reclamation Act of 1975,
governs surface mining operations and reclamation of mined lands, and
provides, among other things, for the submission of reclamation
plans to, and issuance of permits by, lead agencies to persons
engaging in surface mining operations.  Existing law authorizes the
lead agency to impose a fee upon each mining operation to cover the
reasonable costs incurred in implementing certain reporting
requirements of that act.
   This bill would define the term "lead agency" for purposes of
those reporting requirements.
   (9) Existing law authorizes the money deposited in the Bosco-Keene
Renewable Resources Investment Fund to be encumbered, pursuant to
appropriation by the Legislature, for specified purposes relating to
natural resources.
   This bill would additionally allow those funds to be encumbered to
regulate and oversee surface mining activities.
   (10) The Water Security, Clean Drinking Water, Coastal and Beach
Protection Act of 2002 was an initiative measure approved by the
voters at the November 5, 2002, statewide general election as
Proposition 50.  Proposition 50, among other things, provides bond
funds for acquisition of land related to protection of water
supplies, coastal watersheds, and beaches.
   The bill, with a certain exception, would require state agencies
disbursing grants or loans pursuant to Proposition 50 to develop
project solicitation and evaluation guidelines for the purposes of
implementing Proposition 50.  The bill would require each state
agency, prior to finalizing the guidelines, to conduct 2 public
meetings to consider public comments.
   The bill would generally authorize state agencies to include in
those guidelines a requirement for matching funds, as defined, except
that the bill would require certain state agencies to impose
matching fund requirements in accordance with certain provisions of
Proposition 50, but would otherwise prohibit the imposition of
matching fund requirements for the purposes of awarding a grant to
assist a disadvantaged community, as defined.  The bill would require
state agencies that are authorized to award loans or grants financed
by Proposition 50 to provide technical assistance with regard to the
preparation of the applications for those loans or grants.
   The bill would require the State Department of Health Services to
award certain grant money available to southern California water
agencies on a competitive basis for eligible projects to reduce
Colorado River water use, including projects undertaken by one or
more southern California water agencies and other entities.
   The bill would require funds made available by Proposition 50 for
the purposes of a public drinking water system security program to be
appropriated to the State Department of Health Services.
   The bill would require each state agency expending funds pursuant
to Proposition 50 for projects, grants, or loans to report annually
to the Legislature on the recipient and amount of each project,
grant, or loan awarded during the previous fiscal year and the total
amount awarded, categorized by project, grant, or loan, the
geographic distribution of projects, grants or loans awarded, and the
intended public and environmental benefit that the awards provide.
   Proposition 50 also provides bond funds for competitive grants for
projects to protect communities from drought, protect and improve
water quality, and improve local water security by reducing
dependence on imported water.  Under the act, those projects may
include groundwater recharge and management projects.
   This bill would require the Department of Water Resources to
allocate, of the funds appropriated to the department for those
purposes, the sum of not less than $20,000,000 to competitive grants
for groundwater management and recharge projects.  The bill would
require that not more than 50% of the grants be for projects in
northern California.  The bill would require the department, for
projects in southern California, to give preference to projects
outside the service area of the Metropolitan Water District of
Southern California that are infill projects within one mile of
established residential and commercial development.
   The bill would establish various other requirements relating to
the implementation of Proposition 50.
   (11) Existing law requires state agencies to adopt regulations in
accordance with prescribed procedures and requirements and requires
the Office of Administrative Law to review adopted regulations and to
make certain determinations.
   This bill would exempt the adoption or revision of regulations,
guidelines, or criteria that implement Proposition 50 and the
California Clean Water, Clean Air, Safe Neighborhood Parks, and
Coastal Protection Act of 2002 (Proposition 40) from those
provisions, but would require the adoption or revision of
regulations, guidelines, or criteria to be accomplished by means of a
public process.
   (12) This bill would designate Sugar Pine Point State Park as Ed Z'
berg Sugar Pine Point State Park.
   (13) 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.  The Legislature finds and declares the following:
   In order to protect the intent of the voters in approving the
Water Security, Clean Drinking Water, Coastal and Beach Protection
Act of 2002 (Division 26.5 (commencing with Section 79500) of the
Water Code), it is necessary and desirable that, to the maximum
extent possible, the following principles apply to the implementation
of that act:
   (a) Guidelines developed for grant and loan programs pursuant to
that act shall encourage integrated, multiple-benefit projects.
   (b) Preference shall be given to funding safe drinking water and
water quality projects that serve disadvantaged communities.
   (c) Programs shall support projects that improve local and
regional water supply reliability.
   (d) For projects that affect water quality, preference shall be
given to those projects that contribute expeditiously and measurably
to the long-term attainment and maintenance of water quality
standards.
   (e) For projects that affect water quality, preference shall be
given to funding projects that will eliminate or significantly reduce
pollution into impaired waters and sensitive habitat areas,
including areas of special biological significance.
   (f) Projects that affect water quality shall include a monitoring
component that allows the integration of data into statewide
monitoring efforts, including, but not limited to, the surface water
ambient monitoring program carried out by the State Water Resources
Control Board.
   (g) Groundwater projects and projects that affect groundwater
shall include groundwater monitoring requirements consistent with the
Groundwater Quality Monitoring Act of 2001 (Part 2.76 (commencing
with Section 10780) of Division 6 of the Water Code).
  SEC. 2.  Section 11361 of the Government Code is amended to read:
   11361.  This chapter does not apply to the adoption or revision of
regulations, guidelines, or criteria to implement the Safe
Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection
Bond Act of 2000 (the Villaraigosa-Keeley Act) (Chapter 1.692
(commencing with Section 5096.300) of Division 5 of the Public
Resources Code), the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of 2002 (Chapter 1.696
(commencing with Section 5096.600) of Division 5 of the Public
Resources Code), or the Water Security, Clean Drinking Water, Coastal
and Beach Protection Act of 2002 (Division 26.5 (commencing with
Section 79500) of the Water Code).  The adoption or revision of
regulations, guidelines, or criteria, if necessary to implement those
respective acts, shall instead be accomplished by means of a public
process reasonably calculated to give those persons interested in
their adoption or revision an opportunity to be heard.
  SEC. 3.  Section 713 of the Fish and Game Code is amended to read:

   713.  (a) The changes in the Implicit Price Deflator for State and
Local Government Purchases of Goods and Services, as published by
the United States Department of Commerce, shall be used as the index
to determine an annual rate of increase or decrease in the fees for
licenses, stamps, permits, tags, or other entitlements issued by the
department.
   (b) The department shall determine the change in the Implicit
Price Deflator for State and Local Government Purchases of Goods and
Services, as published by the United States Department of Commerce,
for the quarter ending March 31 of the current year compared to the
quarter ending March 31 of the previous year.  The relative amount of
the change shall be multiplied by the current fee for each license,
stamp, permit, tag, or other entitlement issued by the department.
   The product shall be rounded to the nearest twenty-five cents
($0.25), and the resulting amount shall be added to the fee for the
current year.  The resulting amount shall be the fee for the license
year beginning on or after January 1 of the next succeeding calendar
year for the license, stamp, permit, tag, or other entitlement that
is adjusted under this section.
   (c) Notwithstanding any other provision of law, the department may
recalculate the current fees charged for each license, stamp,
permit, tag, or other entitlement issued by the department, to
determine that all appropriate indexing has been included in the
current fees.  This section shall apply to all licenses, stamps,
permits, tags, or other entitlements, that have not been increased
each year since the base year of the 1985-86 fiscal year.
   (d) The calculations provided for in this section shall be
reported to the Legislature with the Governor's Budget Bill.
   (e) The Legislature finds that all revenues generated by fees for
licenses, stamps, permits, tags, and other entitlements, computed
under this section and used for the purposes for which they were
imposed, are not subject to Article XIII B of the California
Constitution.
   (f) The department shall, at least every five years, analyze all
fees for licenses, stamps, permits, tags, and other entitlements
issued by it to ensure the appropriate fee amount is charged.  Where
appropriate, the department shall recommend to the Legislature or the
commission that fees established by the commission or the
Legislature be adjusted to ensure that those fees are appropriate.
  SEC. 4.  Section 2200.5 is added to the Public Resources Code, to
read:
   2200.5.  For the purposes of this chapter, "lead agency" means the
city, county, San Francisco Bay Conservation and Development
Commission, or the board that has the principal responsibility for
approving a surface mining operation or reclamation plan pursuant to
Chapter 9 (commencing with Section 2710).
  SEC. 5.  Section 2699.5 of the Public Resources Code is amended to
read:
   2699.5.  (a) There is hereby created the Seismic Hazards
Identification Fund, as a special fund in the State Treasury.
   (b) Upon appropriation by the Legislature, the moneys in the
Strong-Motion Instrumentation and Seismic Hazards Mapping Fund shall
be allocated to the division for purposes of this chapter and Chapter
8 (commencing with Section 2700).
   (c) On and after July 1, 2004, the Seismic Hazards Identification
Fund shall be known as the Strong-Motion Instrumentation and Seismic
Hazards Mapping Fund.
  SEC. 6.  Section 2705 of the Public Resources Code is amended to
read:
   2705.  (a) Counties and cities shall collect a fee from each
applicant for a building permit.  Each fee shall be equal to a
specific amount of the proposed building construction for which the
building permit is issued as determined by the local building
officials.  The fee amount shall be assessed in the following way:
   (1) Group R occupancies, as defined in the 1985 Uniform Building
Code and adopted in Part 2 (commencing with Section 2-101) of Title
24 of the California Code of Regulations, one to three stories in
height, except hotels and motels, shall be assessed at the rate of
ten dollars ($10) per one hundred thousand dollars ($100,000), with
appropriate fractions thereof.
   (2) All other buildings shall be assessed at the rate of
twenty-one dollars ($21) per one hundred thousand dollars ($100,000),
with appropriate fractions thereof.
   (3) The fee shall be the amount assessed under paragraph (1) or
(2), depending on building type, or fifty cents ($0.50), whichever is
the higher.
   (b) (1) In lieu of the requirements of subdivision (a), a county
or city may elect to include a rate of ten dollars ($10) per one
hundred thousand dollars ($100,000), with appropriate fractions
thereof, in its basic building permit fee for any Group R occupancy
defined in paragraph (1) of subdivision (a), and a rate of twenty-one
dollars ($21) per one hundred thousand dollars ($100,000), with
appropriate fractions thereof, for all other building types.  A
county or city electing to collect the fee pursuant to this
subdivision need not segregate the fees in a fund separate from any
fund into which basic building permit fees are deposited.
   (2) "Building," for the purpose of this chapter, is any structure
built for the support, shelter, or enclosure of persons, animals,
chattels, or property of any kind.
   (c) (1) A city or county may retain up to 5 percent of the total
amount it collects under subdivision (a) or (b) for data utilization,
for seismic education incorporating data interpretations from data
of the strong-motion instrumentation program and the seismic hazards
mapping program, and, in accordance with paragraph (2), for improving
the preparation for damage assessment after strong seismic motion
events.
   (2) A city or county may use any funds retained pursuant to this
subdivision to improve the preparation for damage assessment in its
jurisdiction only after it provides the Department of Conservation
with information indicating to the department that data utilization
and seismic education activities have been adequately funded.
   (d) Funds collected pursuant to subdivision (a) and (b), less the
amount retained pursuant to subdivision (c), shall be deposited in
the Strong-Motion Instrumentation and Seismic Hazards Mapping Fund,
as created by Section 2699.5.
  SEC. 7.  Section 2705.5 of the Public Resources Code is amended to
read:
   2705.5.  The Division of Mines and Geology shall advise counties
and cities as to that portion of the total fees allocated to the
Strong-Motion Instrumentation and Seismic Hazards Mapping Fund, so
that this information may be provided to building permit applicants.

  SEC. 8.  Section 2706 of the Public Resources Code is amended to
read:
   2706.  Funds collected pursuant to subdivision (a) and (b) of
Section 2705, less the amount retained pursuant to subdivision (c) of
Section 2705, shall be deposited in the State Treasury in the
Strong-Motion Instrumentation and Seismic Hazards Mapping Fund, as
created by Section 2699.5, to be used exclusively for the purposes of
this chapter and Chapter 7.8 (commencing with Section 2690).
  SEC. 9.  Section 2709.1 of the Public Resources Code is amended to
read:
   2709.1.  (a) No strong-motion instrumentation shall be installed
pursuant to this chapter in the structural types identified in
subdivision (b) unless funds proportionate to the construction value
as called for under Section 2705 are received from organizations or
entities representing these structural types, or the instrumentation
is specifically called for by the Seismic Safety Commission in
urgency situations.
   (b) The structural types subject to this section include all of
the following:
   (1) Hospitals.
   (2) Dams.
   (3) Bridges.
   (4) Schools.
   (5) Powerplants.
   (c) The Strong-Motion Instrumentation and Seismic Hazards Mapping
Fund may accept funds from sources other than the permit fees
identified in this chapter.  The priority of installations performed
under this chapter shall be determined by the Seismic Safety
Commission.
  SEC. 10.  Section 3109 of the Public Resources Code is amended to
read:
   3109.  The supervisor may publish any publications, reports, maps,
or other printed matter relating to oil and gas, for which there may
be public demand.  If these publications, reports, maps, or other
printed matter are sold, they shall be sold at cost, and the proceeds
shall be deposited to the credit of the Oil, Gas, and Geothermal
Administrative Fund.
  SEC. 11.  Section 3110 of the Public Resources Code is amended to
read:
   3110.  All money paid to the Treasurer pursuant to Article 7
(commencing with Section 3400) shall be deposited to the credit of
the Oil, Gas, and Geothermal Administrative Fund, which is hereby
established in the State Treasury, for expenditure as provided in
Section 3401.
  SEC. 12.  Section 3111 of the Public Resources Code is amended to
read:
   3111.  (a) All money received in repayment of repair work done as
provided in this chapter shall be returned and credited to the Oil,
Gas, and Geothermal Administrative Fund for expenditure as provided
in Section 3401.
   (b) All miscellaneous revenues from oil and gas wells and from
real and personal property acquired by the supervisor in the course
of carrying out this chapter shall be credited to the Oil, Gas, and
Geothermal Administrative Fund for expenditure as provided in Section
3401.
  SEC. 13.  Section 3236.5 of the Public Resources Code is amended to
read:
   3236.5.  (a) Any person who violates this chapter or any
regulation implementing this chapter is subject to a civil penalty
not to exceed five thousand dollars ($5,000) for each violation.
Acts of God, and acts of vandalism beyond the reasonable control of
the operator, shall not be considered a violation.  The civil penalty
shall be imposed by an order of the supervisor upon a determination
that a violation has been committed by the person charged, following
notice to the person and an opportunity to be heard.  The notice
shall be served by personal service or certified mail, and shall
inform the alleged violator of the date, time, and place of the
hearing, the activity that is alleged to be a violation, the statute
or regulation violated, and the hearing and judicial review
procedures.  The notice shall be provided at least 30 days before the
hearing.  The hearing shall be held before the supervisor or the
supervisor's designee in Sacramento or in the district in which the
violation occurred.  The hearing is not required to be conducted
pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.  The imposition of a
civil penalty under this section shall be in addition to any other
penalty provided by law for the violation.  When establishing the
amount of the civil penalty pursuant to this section, the supervisor
shall consider, in addition to other relevant circumstances, (1) the
extent of harm caused by the violation, (2) the persistence of the
violation, (3) the pervasiveness of the violation, and (4) the number
of prior violations by the same violator.
   (b) Notwithstanding this chapter, an order of the supervisor
imposing a civil penalty shall not be reviewable pursuant to Article
6 (commencing with Section 3350).  A person upon whom a civil penalty
is imposed by a final order of the supervisor may obtain judicial
review of that final order by seeking a writ of mandate pursuant to
Section 1094.5 of the Code of Civil Procedure within 30 days of the
date of that final order.  When the order of the supervisor has
become final, and the penalty has not been paid, the supervisor may
apply to the appropriate superior court for an order directing
payment of the civil penalty.  The supervisor may also seek from the
court an order directing that production from the well operations
that are the subject of the civil penalty order is discontinued until
the violation has been remedied to the satisfaction of the
supervisor, and the civil penalty has been paid.
   (c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
  SEC. 14.  Section 3343 of the Public Resources Code is amended to
read:
   3343.  (a) Any person who willfully violates any provision of this
article or any rule, regulation or order of the supervisor, shall be
subject to a penalty of one thousand dollars ($1,000) for each act
of violation and for each day that the violation continues.
   (b) The penalty provided in this section shall be recoverable by
suit filed by the Attorney General in the name and on behalf of the
supervisor in the superior court of the State of California for the
county in which the defendant resides, or in which any defendant
resides, if there is more than one defendant, or in the superior
court of any county in which the violation occurred.  The payment of
the penalty shall not operate to relieve a person on whom the penalty
is imposed from liability to any other person for damages arising
out of the violation.  The penalty, when recovered, shall be paid to
the State Treasurer and shall be deposited to the credit of the Oil,
Gas, and Geothermal Administrative Fund.
   (c) Any person knowingly aiding or abetting any other person in
the violation of any provision of this article, or any rule,
regulation or order of the supervisor shall be subject to the same
penalty as that prescribed by this section for the violation by the
other person.
  SEC. 15.  Section 3358 of the Public Resources Code is amended to
read:
   3358.  Witnesses shall be entitled to receive the fees and mileage
fixed by law in civil causes, payable from the Oil, Gas, and
Geothermal Administrative Fund.
  SEC. 16.  Section 3719 of the Public Resources Code is amended to
read:
   3719.  The supervisor shall publish any publications, reports,
maps, statistical data or other printed matter relating to geothermal
resources, for which there may be public demand.  If these
publications, reports, maps, statistical data or other printed matter
are sold, they shall be sold at cost, and the proceeds shall be
deposited in the Oil, Gas, and Geothermal Administrative Fund.
  SEC. 17.  Section 3724.6 of the Public Resources Code is amended to
read:
   3724.6.  The permit application fees established in Sections 3724
and 3724.1 shall be made payable by the operator to the Department of
Conservation, and the annual well fee established in accordance with
Section 3724.5 shall be made payable to the Treasurer.  The proceeds
from the permit applications and the annual well fees shall be
deposited in the Oil, Gas, and Geothermal Administrative Fund, and
shall be available for appropriation exclusively for the supervision
of geothermal resource wells.
  SEC. 18.  Section 3754.5 of the Public Resources Code is amended to
read:
   3754.5.  (a) Any person who violates this chapter or any
regulation implementing this chapter is subject to a civil penalty
not to exceed five thousand dollars ($5,000) for each violation.
Acts of God, and acts of vandalism beyond the reasonable control of
the operator, shall not be considered a violation.  The civil penalty
shall be imposed by an order of the supervisor upon a determination
that a violation has been committed by the person charged, following
notice to the person and an opportunity to be heard.  The imposition
of a civil penalty under this section shall be in addition to any
other penalty provided by law for the violation.  When establishing
the amount of civil liability pursuant to this section, the
supervisor shall consider, in addition to other relevant
circumstances, (1) the extent of harm caused by the violation, (2)
the persistence of the violation, and (3) the number of prior
violations by the same violator.
   (b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Sections 3762 to 3771, inclusive.  When the
order of the supervisor has become final or has been upheld following
exhaustion of the applicable review procedures, the supervisor may
apply to the appropriate superior court for an order directing
payment of the civil penalty.
   (c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
  SEC. 19.  Section 3770 of the Public Resources Code is amended to
read:
   3770.  Witnesses shall be entitled to receive the fees and mileage
fixed by law in civil causes, payable from the Oil, Gas, and
Geothermal Administrative Fund.
  SEC. 20.  Section 3776 of the Public Resources Code is amended to
read:
   3776.  Payment of the penalties and charges, or the amount of the
judgment recovered in the action, shall be made to the State
Treasurer, and shall be returned and credited to the Oil, Gas, and
Geothermal Administrative Fund.
  SEC. 21.  Section 5006.1 of the Public Resources Code is amended to
read:
   5006.1.  (a) (1) Prior to submitting a proposal pursuant to
subdivision (f) of Section 5006, for an appropriation for the
acquisition of real property in excess of five million dollars
($5,000,000) in value for any state park system project, the
department shall hold a public hearing within the county in which the
proposed project is located at which interested members of the
public may comment on the proposed project.  Notice of the hearing
shall be published at least twice in a newspaper of general
circulation within that county.
   (2) (A) The department shall provide written notice of its intent
to acquire the real property to the city or county, or both, having
jurisdiction over the property, to the members of the Legislature who
are the chair and vice chair of the joint legislative budget
committee, the chair of the budget subcommittee in each house having
jurisdiction over resources, the chair in each house of the
appropriate legislative policy committee, and the legislators within
whose district the property proposed for acquisition is located, as
early as possible in the acquisition process, but not less than 90
days from the date of acquisition.  Within 30 days of receiving
written notice of the proposed acquisition, a member of the city
council or board of supervisors of the respective city or county, or
a Member of the Legislature who has been notified pursuant to this
subparagraph, may request that the department hold a public hearing
regarding the acquisition of the property, if the acquisition is
between five hundred thousand dollars ($500,000) and five million
dollars ($5,000,000).
   (B) The written notice of intent shall describe any potential
impact that the acquisition may have on the department's efforts to
provide park and recreational opportunities.
   (b) With respect to real property in excess of five million
dollars ($5,000,000) that is not proposed to be acquired pursuant to
subdivision (f) of Section 5006, the department shall hold a public
hearing within the county in which the real property is located, at
which interested members of the public may comment on the proposed
acquisition.  Notice of the hearing shall be published at least twice
in a newspaper of general circulation within the county.  The
department shall provide written notice of its intent to acquire the
real property to the city or county, or both, having jurisdiction
over the property, as early as possible in the acquisition process.
   (c) This section does not apply to any real property to be
acquired by grant, gift, devise, or bequest.
  SEC. 22.  Section 5015.6 is added to the Public Resources Code, to
read:
   5015.6.  In recognition of the late Ed Z'berg's many contributions
to the growth and improvement of the state park system, Sugar Pine
Point State Park is hereby designated and shall be known as the Ed Z'
berg Sugar Pine Point State Park.
  SEC. 23.  Section 5627 of the Public Resources Code is amended to
read:
   5627.  (a) Grant moneys received pursuant to this chapter shall be
expended for high priority projects that satisfy the most urgent
park and recreation needs, with emphasis on unmet needs in the most
heavily populated and most economically disadvantaged areas within
each jurisdiction.
   (b) Grants received pursuant to this chapter shall be expended
only for acquisition, development, or both, except that not more than
30 percent of the amount received by a city, county, or district in
an annual period may be utilized for special major maintenance
projects, provided the projects are related to land acquired or
developed, or both, in whole or in part, with state moneys under this
chapter, or for innovative recreation programs, or for both.
   (c) Grants to cities, counties, and districts pursuant to this
chapter shall be on the basis of 70 percent state money and 30
percent local matching money, not less than one-third of which shall
be from private or nonstate sources of funds, for the project.
Grants for acquisition shall be matched only by money or property
donated to be part of the acquisition project.  Grants for
development may be matched by monetary contributions or, if
nonmonetary contributions, as provided in regulations and standards
which shall be established by the director after a public hearing.
The component of local matching money consisting of funds from
private or nonstate sources may, at the option of the grant
recipient, be calculated as a percentage of the total amount granted
in that fiscal year to a grant recipient, rather than on a
project-by-project basis.
   (d) The component of local matching money from private or nonstate
sources required by subdivision (c) may be in the form of and
include, but is not limited to, the following:  cash donations, gifts
of real property, equipment, and consumable supplies, volunteer
services, free or reduced-cost use of lands, facilities, or
equipment, and bequests and earnings from wills, estates, and trusts.
  Funds from nonstate sources that qualify for the purposes of
subdivision (c) are funds from the federal government and local
public agencies other than the grant recipient.  Real property, cash,
or other assets required to be transferred to a public agency
pursuant to Section 66477 of the Government Code or any other
provision of law may not qualify as funds from a private or nonstate
source; however, they shall qualify as the monetary or nonmonetary
contribution required to be furnished by the grant recipient pursuant
to subdivision (c).
   (e) The grant recipient shall certify to the department that there
is available, or will become available prior to the encumbrance of
any state funds for any work on the project for which application for
a grant has been made, matching money from private or nonstate
sources.  Certification of the source and amount of nonstate funds
shall be set forth in the application for a grant submitted to the
department.  However, in recognition of the fact that raising private
funds frequently requires an initial evidence of matching public
funds, the certification of the source and amount of the private
funds shall be made by the applicant at least 30 days prior to actual
release of state funds.
   (f) Local matching money may not be required with respect to an
applicant that has urgent unmet needs for recreational lands or
facilities, and lacks the financial resources to acquire or develop
recreational lands or facilities, as determined pursuant to a formula
set forth in regulations adopted by the director after a public
hearing.  In addition, with respect to applications for grants
submitted for areas where private financial resources are of limited
availability or submitted for projects or programs that are not of a
type likely to attract private funds, the director shall, if the
project conforms to regulations adopted by the department, waive the
requirement that at least one-third of local matching money be from
private sources.  The regulations
      shall establish criteria and procedures for the waiver.  These
criteria may provide for consideration of the average per capita
income, unemployment rate, crime rate, and recent history of plant or
business closures in the area of the applicant's jurisdiction where
the grant will be expended.
   (g) Notwithstanding subdivisions (c), (d), (e), and (f), funds
from the California Clean Water, Clean Air, Safe Neighborhood Parks,
and Coastal Protection Act of 2002 (Chapter 1.696 (commencing with
Section 5096.600)) that are or have been appropriated on or before
June 30, 2004, for the purposes of this chapter do not require local
matching money.
  SEC. 24.  Section 6217 of the Public Resources Code, as amended by
Section 18 of Chapter 876 of the Statutes of 1998, is amended to
read:
   6217.  (a) With the exception of revenue derived from state school
lands and from sources described in Sections 6217.6, 6301.5, 6301.6,
6855, and Sections 8551 to 8558, inclusive, and Section 6404
(insofar as the proceeds are from property that has been distributed
or escheated to the state in connection with unclaimed estates of
deceased persons), the commission shall deposit all revenue, money,
and remittances received by the commission under this division, and
under Chapter 138 of the Statutes of 1964, First Extraordinary
Session, in the General Fund.  Out of those funds deposited in the
General Fund, sufficient moneys shall be made available each fiscal
year for the following purposes:
   (1) Payment of refunds, authorized by the commission, out of
appropriations made for that purpose.
   (2) Payment of expenditures of the commission as provided in the
annual Budget Act.
   (3) Payments to cities and counties of the amounts specified in
Section 6817 for the purposes specified in that section, out of
appropriations made for that purpose.
   (4) Payments to cities and counties of the amounts agreed to
pursuant to Section 6875, out of appropriations made for that
purpose.
   (b) This section shall become operative on July 1, 2006.
  SEC. 25.  Section 34000 of the Public Resources Code is amended to
read:
   34000.  Money deposited in the Bosco-Keene Renewable Resources
Investment Fund created by former Section 7150.6 of the Fish and Game
Code may be encumbered, pursuant to appropriation by the
Legislature, only for the following purposes:
   (a) Salmon and steelhead hatchery expansion and fish habitat
improvement.
   (b) Forest resource improvement projects pursuant to the
California Forest Improvement Act of 1978.
   (c) Urban forestry projects pursuant to the California Urban
Forestry Act of 1978.
   (d) Agricultural soil drainage programs which will retard
desertification and protect agricultural productivity.
   (e) Support of technical assistance programs which will prevent
soil erosion.
   (f) Agricultural, industrial, and urban water conservation
programs.
   (g) Wildland fire prevention programs pursuant to the Wildland
Fire Protection and Resources Management Act of 1978, Article 1
(commencing with Section 4461) and Article 2 (commencing with Section
4475) of Chapter 7 of Part 2 of Division 4.
   (h) Coastal resource enhancement projects pursuant to Chapter 6
(commencing with Section 31251) of Division 21.
   (i) Regulation and oversight of surface mining activities pursuant
to the Surface Mining and Reclamation Act of 1975 (Chapter 9
(commencing with Section 2710) of Division 2).
  SEC. 26.  Section 79505.5 is added to the Water Code, to read:
   79505.5.  As used in this division, the following terms shall have
the following meanings:
   (a) "Disadvantaged community" means a community with an annual
median household income that is less than 80 percent of the statewide
annual median household income.
   (b) "Matching funds" means funds made available by nonstate
sources, which may include, but are not limited to, donated services
from nonstate sources.
  SEC. 27.  Section 79505.6 is added to the Water Code, to read:
   79505.6.  (a) (1) By March 15, 2004, each state agency disbursing
grants or loans pursuant to this division shall develop project
solicitation and evaluation guidelines.  The guidelines may include a
limitation on the size of grants or loans to be awarded.
   (2) Prior to disbursing grants, each state agency shall conduct
two public meetings to consider public comments prior to finalizing
the guidelines.  Each state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings.  One meeting shall be
conducted at a location in northern California and one meeting shall
be conducted at a location in southern California.  Upon adoption,
each state agency shall transmit copies of the guidelines to the
fiscal committees and the appropriate policy committees of the
Legislature.  To the extent feasible, each state agency shall provide
outreach to disadvantaged communities to promote access and
participation in those meetings.
   (3) (A) Subject to subparagraph (B), the guidelines may include a
requirement for matching funds.
   (B) A state agency may not require matching funds for the purposes
of awarding a grant financed by this division to assist a
disadvantaged community, except as follows:
   (i) For the purposes of awarding a grant pursuant to subdivision
(a) of Section 79545, the department shall impose matching fund
requirements in accordance with subdivision (a) of Section 79545.
   (ii) For the purposes of awarding a grant subject to Section
79564, the board shall impose matching fund requirements in
accordance with subdivision (b) of Section 79564.
   (b) Notwithstanding subdivision (a), a state agency, in lieu of
adopting guidelines pursuant to subdivision (a), may use guidelines
existing on January 1, 2004, to the extent those guidelines conform
to the applicable requirements of this division.
  SEC. 28.  Section 79506.7 is added to the Water Code, to read:
   79506.7.  State agencies that are authorized to award loans or
grants financed by this division shall provide technical assistance
with regard to the preparation of the applications for those loans or
grants in a manner that, among other things, addresses the needs of
economically disadvantaged communities.
  SEC. 29.  Section 79522 is added to the Water Code, to read:
   79522.  (a) Funds made available pursuant to Section 79520 shall
be appropriated to the State Department of Health Services to carry
out this chapter consistent with the requirements and for the
purposes specified in Section 79520.
   (b) In the development of priorities for expenditure of the funds
appropriated for the purposes of this section, the State Department
of Health Services shall consult with the Office of Emergency
Services, the state Office of Homeland Security and local water
agencies to develop criteria for the department's programs.
   (c) Funds allocated pursuant to this section shall not be
available for grants that reimburse project costs incurred prior to
the adoption of criteria for the grants provided in this section.
   (d) No grant funds may be awarded to supplant funding for the
routine responsibilities or obligations of any state, local, or
regional drinking water system.
  SEC. 30.  Section 79532 is added to the Water Code, to read:
   79532.  (a) Funds made available pursuant to subdivision (b) of
Section 79530 shall be administered in accordance with this section.

   (b) (1) Grant funds appropriated for the purposes of subdivision
(b) of Section 79530 shall be awarded on a competitive basis.
   (2) The department shall consolidate the application process
required to implement the grant program described in this section.
   (c) For the purposes of this chapter, "Southern California water
agencies" means water agencies whose service area is entirely or
partly in one or more of the following counties:  San Diego,
Imperial, Riverside, Orange, Los Angeles, San Bernardino, Santa
Barbara, or Ventura.
   (d) Grants may be awarded to Southern California water agencies
for eligible projects undertaken by one or more Southern California
water agencies and other entities.
   (e) A project funded by a grant made pursuant to subdivision (b)
of Section 79530 shall meet both of the following requirements:
   (1) The project will assist the grantee to meet safe drinking
water standards.
   (2) The project will assist in meeting the state's commitment to
reduce Colorado River water use to 4.4 million acre-feet per year.
   (f) In the development of criteria for the grants awarded pursuant
to this section, the State Department of Health Services shall
consult with the Office of Environmental Health Hazard Assessment for
the purposes of developing a program that gives priority to projects
that reduce public and environmental exposure to contaminants that
pose the most significant health risks, and that will bring water
systems into compliance with safe drinking water standards.  These
include, but are not limited to, projects that address public
exposure to contaminants for which safe drinking water standards have
been established, including arsenic, disinfection byproducts and
uranium.  Projects to address emerging contaminants, including
perchlorate, chromium 6, and endocrine disrupters shall also be given
priority.
  SEC. 31.  Section 79534 is added to the Water Code, to read:
   79534.  (a) Funds made available pursuant to paragraph (1), (2),
(3), (4), or (5) of subdivision (a) of Section 79530, and not for the
purposes of subdivision (b) of that section, shall be administered
in accordance with this section.
   (b) (1) Grants shall be awarded in accordance with subdivision (a)
of Section 79530 on a statewide competitive basis.
   (2) A project that is eligible for funding for the purposes of
subdivision (b) of Section 79530 is not eligible for a grant subject
to this section.
   (c) For the purposes of this chapter, "small community" means a
municipality with a population of 3,300 persons or fewer, or 1,000
connections or fewer.
   (d) The State Department of Health Services shall consolidate the
application process required to implement the grant program described
in this section.
   (e) In the development of criteria for the grants awarded under
this section, the State Department of Health Services shall consult
with the Office of Environmental Health Hazard Assessment for the
purpose of developing a program that gives priority to projects that
pose the most significant health risks, and that will bring water
systems into compliance with safe drinking water standards.  These
include, but are not limited to, projects that address public
exposure to contaminants for which safe drinking water standards have
been established, including arsenic, disinfection byproducts and
uranium.  Projects to address emerging contaminants, including
perchlorate, chromium 6, and endocrine disrupters shall also be given
priority.
   (f) Grants awarded pursuant to this section may not exceed ten
million dollars ($10,000,000) for any one project.
  SEC. 32.  Section 79540.1 is added to the Water Code, to read:
   79540.1.  (a) Grants shall be awarded in accordance with Section
79540 on a statewide competitive basis.
   (b) To the extent funds appropriated pursuant to Section 79540 are
expended for the purposes of programs established under Division
20.4 (commencing with Section 30901) of the Public Resources Code,
those funds shall comply with the requirements of that division.
  SEC. 33.  Section 79547 is added to the Water Code, to read:
   79547.  (a) Funds made available pursuant to Section 79545 shall
be administered in accordance with this section.
   (b) Grants shall be awarded in accordance with Section 79545 on a
statewide competitive basis.
  SEC. 34.  Section 79547.2 is added to the Water Code, to read:
   79547.2.  (a)  For the purposes of implementing subdivision (a) of
Section 79545, eligible projects shall be selected based on
demonstrated need for new or alternative water supplies, project
readiness, and the degree to which the project avoids or mitigates
adverse environmental impacts.  Preference shall be given to eligible
projects that incorporate ecosystem restoration and water quality
benefits.
   (b) A grant made pursuant to subdivision (a) of Section 79545 may
not exceed five million dollars ($5,000,000).
   (c) For the purposes of this section, "desalination project"
includes construction, planning, engineering, design, environmental
assessments, or related work necessary for the construction of a
desalination facility, or the construction of a pilot or
demonstration facility.
  SEC. 35.  Section 79555 is added to the Water Code, to read:
   79555.  (a) For the 2004-05 fiscal year, and each fiscal year
thereafter, not less than 50 percent of the funds made available
pursuant to subdivision (d) of Section 79550 for acquisition of water
for the CALFED environmental water account shall be expended for
long-term water purchase contracts, permanent water rights, and
associated costs.
   (b) The California Bay-Delta Authority shall report annually to
the Legislature on the state's efforts in acquiring long-term
purchase contracts and permanent water rights in accordance with this
section.
  SEC. 36.  Section 79560.5 is added to the Water Code, to read:
   79560.5.  For the purposes of carrying out this chapter, the
department and the board shall jointly develop project solicitation
and evaluation guidelines.  Before developing the solicitation and
evaluation guidelines, the department and the board shall jointly
conduct a public meeting to receive public comments on the scope,
procedures, and content of the guidelines.  Considering the public
comments, the department and the board shall jointly develop
solicitation and evaluation guidelines that are consistent with law
and state programs and policies.  The department and the board shall
post the solicitation and evaluation guidelines on their respective
Internet Web sites.
  SEC. 37.  Section 79561.5 is added to the Water Code, to read:
   79561.5.  (a) Notwithstanding any other provision of law, of the
funds appropriated to the department for the purposes of Section
79560 and 79560.1, the department shall allocate the sum of not less
than twenty million dollars ($20,000,000) to competitive grants for
groundwater management and recharge projects.  The department shall
not allocate funds pursuant to this section unless it determines that
the allocation is consistent with this division, as approved by the
voters at the November 5, 2002, statewide general election.
   (b) It is the intent of the Legislature that these funds be used
to enhance water supply in rapidly growing areas of this state with
limited access to imported water supplies.
   (c) Not more than 50 percent of the grants pursuant to this
section shall be for projects in northern California.  For projects
in southern California, the department shall give preference to
projects outside the service area of the Metropolitan Water District
of Southern California that are infill projects within one mile of
established residential and commercial development.
   (d) As used in this section, the term "rapidly growing areas"
means counties located in southern California where the county
population increased by 2.4 percent or more between January 1, 2002,
and January 1, 2003.
  SEC. 38.  Section 79562.5 is added to the Water Code, to read:
   79562.5.  (a) For the purposes of carrying out Section 79560, the
department shall award grants to eligible projects consistent with an
adopted integrated regional water management plan.
   (b) For purposes of subdivision (a), the department shall
establish standards for integrated regional water management plans.
At a minimum, these plans shall address the major water related
objectives and conflicts of the watersheds in the region covered by
the plan, including water supply, groundwater management, ecosystem
restoration, and water quality elements, and may include other
elements consistent with this chapter.
   (c) The department may waive the requirement for consistency with
an adopted integrated regional water management plan until January 1,
2007, if the applicant is engaged in the development of an
integrated regional water management plan and indicates, within its
grant application, how the project fits into achieving the integrated
regional water management plan objectives.
   (d) The department may waive the matching fund requirement for
disadvantaged communities.
   (e) For groundwater management and recharge projects and for
projects with potential groundwater impacts, the board and the
department shall give preference to eligible projects in areas
subject to a groundwater management plan that meets the requirements
of Section 10753.7, or that includes the development of a groundwater
management plan as a project component.
   (f) The maximum award for any single grant pursuant to this
section may not exceed fifty million dollars ($50,000,000).
   (g) The department shall require that eligible projects include a
nonstate contribution.
   (h) For the purposes of implementing Section 79563, and to the
extent funds are expended for the purposes of Section 30947 of the
Public Resources Code, those funds shall comply with the requirements
of that section.
  SEC. 39.  Section 79564.1 is added to the Water Code, to read:
   79564.1.  (a) Of the funds made available by Section 79560, not
less than 40 percent shall be available for eligible projects in
northern California and not less than 40 percent be available for
eligible projects in southern California, subject to a determination
by the administering agency that each project meets all of the
requirements of this chapter.
   (b) For the purposes of this section, "southern California" means
the Counties of San Diego, Imperial, Riverside, Orange, Los Angeles,
Santa Barbara, San Bernardino, and Ventura.
   (c) For the purposes of this section, "northern California" means
all California counties except those identified in subdivision (b).
  SEC. 40.  Chapter 10.5 (commencing with Section 79575) is added to
Division 26.5 of the Water Code, to read:

      CHAPTER 10.5.  REPORTING

   79575.  Not later than January 1, 2005, and on or before January 1
of each year thereafter, each state agency expending funds pursuant
to this division for projects, grants, or loans shall report to the
Legislature on the recipient and amount of each project, grant, or
loan awarded under this division during the previous fiscal year.
The information shall include the total amount awarded, categorized
by project, grant, or loan, the geographic distribution of projects,
grants, or loans awarded under this division, and the intended public
and environmental benefit that the awards provide.  The information
shall also include data on the balances of funds available under this
division for expenditures and grants in that fiscal year and future
fiscal years.
  SEC. 41.  Section 79590 is added to the Water Code, to read:
   79590.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds.  These costs
shall be shared proportionally by each program funded under this
division.  Actual costs incurred in connection with administering
programs authorized under the categories specified in this division
shall be paid by the funds authorized for those purposes by this
division.
  SEC. 42.  All funds in the Strong-Motion Instrumentation Special
Fund shall be transferred to the Strong-Motion Instrumentation and
Seismic Hazards Mapping Fund.  Those funds are subject to all
encumbrances on the funds made prior to July 1, 2004, and to all
legal restrictions on their use other than by state statute.
  SEC. 43.  It is the intent of the Legislature that Sections 2699.5,
2705, 2705.5, 2706, and 2709.1, of the Public Resources Code, as
those sections read immediately prior to the effective date of this
act, shall continue to be effective and operative until July 1, 2004,
at which time those sections as amended by this act shall become
operative.
  SEC. 44.  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 implement the Budget Act of 2003, it is necessary that
this act take effect immediately.