BILL NUMBER: SB 1107 CHAPTERED BILL TEXT CHAPTER 230 FILED WITH SECRETARY OF STATE August 16, 2004 PASSED THE SENATE JULY 29, 2004 PASSED THE ASSEMBLY JULY 28, 2004 AMENDED IN ASSEMBLY JULY 28, 2004 AMENDED IN ASSEMBLY JULY 27, 2004 AMENDED IN ASSEMBLY JUNE 29, 2004 INTRODUCED BY Committee on Budget and Fiscal Review JANUARY 12, 2004 An act to amend Section 13220 of the Fish and Game Code, to amend Section 12841 of, and to repeal Section 12112 of, the Food and Agricultural Code, to amend Section 51283 of, and to add Section 12812.6 to, the Government Code, to amend Sections 42821, 44011, 44060, 44091, and 44091.1 of the Health and Safety Code, to amend Sections 5045, 5046, and 30940 of, and to add Article 8 (commencing with Section 5079.70) to Chapter 1.1.5 of Division 5 of, Chapter 3.8 (commencing with Section 5750) to Division 5 of, Chapter 7.5 (commencing with Section 5819) to Division 5 of, and Part 3.5 (commencing with Section 71120) to Division 34 of, the Public Resources Code, to amend Sections 4000.1, 5067, and 24007 of the Vehicle Code, and to amend Sections 4201, 4227, 4251, 4252, 4327, 4357, 12878, 12878.1, 12878.33, and 12878.44 of, to add Sections 12639.1 and 79509.6 to, and to repeal Sections 4250 and 4405 of, the Water Code, relating to resources, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. (Approved by Governor August 16, 2004. Filed with Secretary of State August 16, 2004.) I am signing Senate Bill 1107 with the following reductions: The Sierra Nevada's are a valuable natural asset for all Californians. There is a bipartisan proposal pending in the Legislature to create a Sierra Nevada Conservancy that balances statewide values and local interests. I am deleting $5 million of the $9.15 million appropriation for the Sierra Nevada Cascade and sustaining $4.15 million to assure that there are adequate resources to make the Sierra Nevada Conservancy a success when it is created. The remaining funding level more accurately reflects the actual amount that the Secretary will be able to expend in the 2004-05 fiscal year until the conservancy is fully implemented. Additionally, I am deleting $28.35 million of the $38.35 million appropriations for the purpose of awarding grants related to River Parkways conservation programs. These reductions better reflect the actual amount that the Secretary will be able to expend in the 2004-05 fiscal year because the bill requires new program activities which will take time to implement. ARNOLD SCHWARZENEGGER, Governor LEGISLATIVE COUNSEL'S DIGEST SB 1107, Committee on Budget and Fiscal Review. Resources. (1) Existing law continuously appropriates money in the Fish and Game Preservation Fund to the Department of Fish and Game for payment of refunds of sums it determines have been erroneously deposited in the fund and for the payment of all necessary expenses incurred in carrying out the Fish and Game Code and any other laws for the protection and preservation of birds, mammals, reptiles, and fish, and to the Fish and Game Commission to pay the compensation and expenses of the commissioners and employees of the commission. This bill would instead make the money in the Fish and Game Preservation Fund available for expenditure by the department and the commission only upon appropriation by the Legislature for those purposes. (2) Existing law requires the Director of Pesticide Regulation to expend a specified percentage of license fees collected pursuant to the pest control dealer's licensing program to reimburse the counties and appropriates the amount of these payments from the Department of Pesticide Regulation Fund. This bill would repeal these provisions. (3) Existing law requires every person who sells for use in this state a pesticide product that has been registered by the Director of Pesticide Regulation to pay to the director applicable assessments, except as specified. Existing law requires the revenue collected from the mill assessment to be deposited in the Department of Pesticide Regulation Fund with an amount equal to the revenue derived from 6 mills per dollar of sales for all pesticide sales for use in this state to be distributed to the counties as reimbursements for costs incurred in the administration and enforcement of pesticide regulations. This bill would, beginning July 1, 2004, increase the amount to be distributed to the counties to an amount equal to the revenue derived from 7.6 mills per dollar of sales for all pesticide sales for use in this state. (4) Under existing law, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, and the California Climate Action Registry all have responsibilities with respect to the control of greenhouse gas emissions. This bill would require the Secretary for Environmental Protection to coordinate greenhouse gas emission reductions and climate change activity in state government. (5) Under existing law, the Williamson Act provides that a landowner and a city or county may enter into a mutually beneficial contract to restrict the use of agricultural land by creating an agricultural preserve, as defined, in order to preserve the limited supply of agricultural land necessary to the conservation of the state's economic resources. Prior to cancellation of a contract, the county assessor is required to determine the cancellation valuation of the land for purposes of determining the cancellation fee which the landowner is required to pay to the county treasurer. Existing law requires that the county treasurer transmit cancellation fees to the Controller for deposit in the General Fund, except for that amount specified in the annual Budget Act which is deposited in the Soil Conservation Fund and which is available, when appropriated by the Legislature, for the support of 2 designated programs. This bill would increase the amount to be deposited in the Soil Conservation Fund in the 2004-05 fiscal year to $2,036,000. The bill would provide that the funds, when appropriated by the Legislature, are also available for the program support costs of the Department of Conservation in administering the Williamson Act and the open-space subvention program. (6) Existing law requires the Secretary of the Resources Agency to establish a nonprofit public benefit corporation to be known as the California Climate Action Registry, with specified functions related to greenhouse gas emissions, to be governed by a board of directors of 7 members. This bill would expand the board of directors to 9 members to include one additional member appointed by the Senate Committee on Rules and one additional member appointed by the Speaker of the Assembly. (7) Existing law establishes a motor vehicle inspection and maintenance program (smog check), administered by the Department of Consumer Affairs and the State Air Resources Board, that provides for the inspection of all motor vehicles, except those specifically exempted from the program, upon registration, biennially upon renewal of registration, upon transfer of ownership, and in certain other circumstances. Existing law also establishes an enhanced motor vehicle inspection and maintenance program (smog check II) in each urbanized area of the state, any part of which is classified by the United States Environmental Protection Agency as a serious, severe, or extreme nonattainment area for specified air contaminants. Existing law exempts from those requirements any motor vehicle 4 or less model-years old, and commencing January 1, 2004, any motor vehicle up to 6 model-years old unless the state board finds that providing the exemption for those additional model-years will prohibit the state from meeting the state's commitments under the federal Clean Air Act, and also authorizes the department and the state board to exempt any motor vehicle that it determines does not significantly compromise the emission reduction objectives of the state's State Implementation Plan under the federal act. Existing law subjects motor vehicles exempted from the smog check requirements pursuant to those provisions to an annual smog abatement fee of $4, and requires the revenues collected from that fee to be deposited on a daily basis into the Vehicle Inspection and Repair Fund in the State Treasury. This bill would repeal those exemption provisions, and would instead exempt from the smog check provisions, commencing January 1, 2005, any motor vehicle up to 6 model-years old. The bill would increase the annual smog abatement fee imposed on motor vehicles exempt from the smog check requirements pursuant to that provision to $12. Existing law makes any violation of the smog check program a misdemeanor. This bill would impose a state-mandated local program by changing the definition of a crime. (8) Existing law establishes the High Polluter Repair or Removal Account within the Vehicle Inspection and Repair Fund, and makes the moneys in the fund available, upon appropriation by the Legislature, to the department and the state board establish and implement a program for the repair or replacement of high-polluting vehicles. Existing law requires the department to impose a fee for each issuance of a smog check certificate of compliance, noncompliance, repair cost waiver, or extension, and requires the resulting revenues to be deposited in the Vehicle Inspection and Repair Fund. Existing law declares the intent of the Legislature to maintain a prudent surplus in that fund and requires to department to prescribe lower smog check fees if the surplus amount exceeds the costs of administering the smog check and vehicle repair programs. This bill would repeal the requirement that the department prescribe lower fees if the surplus exceeds those administrative costs. The bill would instead declare the intent of the Legislature that a prudent amount be determined to retain as a reserve in the Vehicle Inspection and Repair Fund, and would further declare the intent of the Legislature that any moneys above that amount be transferred to the High Polluter Repair or Removal Account within that fund. (9) Existing law requires, on or after July 1, 1998, if certain events occur, that the revenues resulting from $2 of the smog abatement fee imposed on motor vehicles exempt from the smog check fee be allocated to the High Polluter Repair or Removal Account and the revenues from $4 of the fee be deposited in the Vehicle Inspection and Repair Fund, except those revenues generated by the fee imposed at the first registration of the exempted motor vehicle, which are required to be deposited in the High Polluter Repair or Removal Account. Existing law repeals those provisions on January 1, 2010. Existing law establishes the Carl Moyer Memorial Air Quality Standards Attainment Program, which provides grants to offset the incremental cost of projects that reduce emissions of oxides of nitrogen from specified heavy-duty diesel vehicles, off-road nonrecreational equipment and vehicles, locomotives, diesel marine vessels, stationary agricultural engines, and other high-emitting diesel engine categories. This bill would additionally require that, of the revenues generated by the imposition of the increase smog abatement fee amount of $12, the revenues generated by the additional $6 of each fee be deposited in the Air Pollution Control Fund in the State Treasury, and be available, upon appropriation by the Legislature, for expenditure to fund the Carl Moyer program, as specified. The bill would delete the repeal date on the smog abatement fee provisions, thereby extending those provisions indefinitely. The bill would also delete obsolete references in existing law. (10) Existing law establishes the Mono Lake Tufa State Reserve as a unit of the state park system. Existing law provides that the reserve consists of the state-owned portions of the Mono Lake bed lying at or below the elevation of 6,417 feet above sea level. Existing law requires the Department of Parks and Recreation to manage the reserve, as specified. This bill would specify that the reserve includes all resources within the reserve's boundaries, including the waters of Mono Lake. The bill would provide that the department's management of the reserve includes all resources within the reserve's boundaries, such as the waters of Mono Lake. (11) Existing law requires the State Office of Historic Preservation to encourage and support historical resource preservation. This bill would establish the California Main Street Program within the State Office of Historic Preservation of the Department of Parks and Recreation to provide technical assistance and training for small cities' government, business organizations, merchants, and property owners to accomplish community and economic revitalization and development of older central business districts and neighborhoods. The bill would establish the California Main Street Program Fund in the State Treasury and would require all private contributions, federal funds, and fees for services, if levied, to be deposited into the fund. The bill would require moneys in the fund to be available, upon appropriation, for the purposes of the program. The bill would require the office to incur costs for the program only to the extent that funding adequate to cover those costs has been deposited in, and appropriated from, the fund. (12) (A) Existing law authorizes the expenditure of state funds for local assistance grants to cities, counties, and districts for the acquisition and development of various park and recreational areas and facilities. This bill would enact the California River Parkways Act of 2004 for the purpose of improving the quality of life in California by providing recreational, open space, wildlife, flood management, water quality, and urban waterfront revitalization benefits to communities in the state. The bill would require the Secretary of the Resources Agency to make grants available to public agencies and nonprofit organizations for river parkway projects, as specified. The bill would provide that to be eligible for a grant, a project would have to provide public access or be a component of a larger parkway plan that provides public access, and meets other specified conditions. (B) The California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 was approved by the voters at the March 2, 2002, statewide primary election as Proposition 40. Proposition 40, among other things, provides bond funds for the acquisition and development of river parkways. 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 the acquisition from willing sellers, restoration, protection, and development of river parkways. This bill would appropriate $7,850,000 from Proposition 40 bond funds and $30,500,000 from Proposition 50 bond funds to the Secretary of the Resources Agency for the purposes of awarding grants for the acquisition and development of river parkways in accordance with those bond provisions and the California River Parkways Act of 2004. (13) The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Proposition 50), which was approved by the voters at the November 5, 2002, statewide election, authorizes the Legislature to appropriate $30,000,000 to the secretary for the purposes of grants to local public agencies, local water districts, and nonprofit organizations, for acquisition from willing sellers of land and water resources, to protect water quality in lakes, reservoirs, rivers, streams, and wetlands in the Sierra Nevada-Cascade Mountain Region, as defined. This bill would establish the Sierra Nevada-Cascade Conservation Grant Program, which the secretary would administer, to accomplish various purposes in the Sierra Nevada-Cascade Mountain Region. The bill would authorize the secretary to undertake various projects and activities, including providing grants and loans to public agencies and nonprofit organizations, to meet the goals of the program. The bill, as a part of that program, would authorize the secretary to provide grants to local public agencies, local water districts, and nonprofit organizations, consistent with the requirements of Proposition 50, for the acquisition of specified land and water rights, related to protecting water quality in the region. The bill would appropriate $9,150,000 that is available pursuant to Proposition 50 for protecting water quality in the region, to the secretary, to make those grants. The bill would require any acquisition made pursuant to the program to be from a willing seller. (14) The Watershed, Clean Beaches, and Water Quality Act provides for a program of grants to public agencies and nonprofit organizations for projects designed to improve water quality at public beaches, improve water quality monitoring and sewer capability, protect water quality by reducing runoff pollution, and control nonpoint source water pollution. Under the agricultural water quality grant program of the act, the State Water Resources Control Board (board) may award grants to public agencies or nonprofit organizations for the purposes of improving agricultural water quality. The board, in consultation with the Department of Food and Agriculture, is required to develop criteria for evaluating projects considered for grants under that program. This bill would require the board, on or before June 30, 2005, in consultation with the Department of Food and Agriculture, to adopt guidelines for a dairy water quality improvement grant program that provides competitive grants for projects, including water quality planning and regional and on-farm projects, and projects undertaken by dairy operators, to reduce threats to, or impairment of, water quality from dairy operations. The bill would also require the board to specify a matching fund requirement, as a condition of providing an agricultural water quality grant or dairy water quality grant. (15) Existing law establishes the California Environmental Protection Agency, and establishes various entities within the agency. This bill would require the Secretary for Environmental Protection, in the 2004-05 fiscal year, to the extent that it will achieve actual budget savings and to the extent authorized by existing law, to consolidate the number of funds and accounts in the Treasury that are for the support of programs administered by the boards, departments, and offices within the agency. The bill would require the secretary, in the 2004-05 fiscal year, to the extent that it will achieve actual budget savings, to consolidate specified non-policy functions that are common among those boards, departments, and offices. The bill would require the secretary to report any budget savings achieved pursuant to those requirements to the Legislature's budget committees, for specified appropriations. The bill would require the Department of Finance, upon request of the secretary, to assist the secretary in complying with these requirements. The bill would authorize the secretary to use a reimbursement from a board, department, or office within the agency for a consolidated service that the agency provides to those entities. (16) Existing law exempts a transfer of ownership of a motor vehicle from the smog check requirements in certain circumstances, including transfers within the initial 90-day validity period of a smog certificate, between certain family members, or in certain business circumstances, and if the motor vehicle is 30 or more model-years old. This bill would, commencing January 1, 2005, also exempt any transfer of ownership of a motor vehicle that is 4 or less model-years old. The bill would require the department to impose a fee of $8 on the transferee of the vehicle and would require the revenues generated by that fee be deposited in the Vehicle Inspection and Repair Fund. (17) Existing law requires the Department of Motor Vehicles, in consultation with the California Coastal Commission, to design and make available for issuance special environmental design license plates that bear a graphic design depicting a California coastal motif. The department is required to impose certain fees for issuance, renewal, substitution, and transfer of the plates, in addition to the regular fees for an original registration or renewal of registration. The department, after deducting its administrative costs, is required to deposit the additional revenue derived from the issuance, renewal, transfer, and substitution of the special environmental design license plates, in the amount of 1/2 in the California Beach and Coastal Enhancement Account in the California Environmental License Plate Fund and 1/2 in the California Environmental License Plate Fund. Existing law requires funds in the account to be expended for certain public beach and coastal maintenance programs. Any funds remaining in the account at the end of a fiscal year are required to be allocated by the Controller, after appropriation by the Legislature, to the State Coastal Conservancy for coastal natural resource restoration and enhancement projects and for other coastal projects. This bill, instead, would require the Controller to allocate the funds in the account, upon appropriation by the Legislature, first to the California Coastal Commission for expenditure for the specified public beach and coastal maintenance programs and second, from funds remaining after the first allocation, to the State Coastal Conservancy for coastal natural resource restoration and enhancement projects and for other coastal projects. (18) Existing law requires a motor vehicle dealer, the purchaser, or his or her authorized representative, to transmit a valid certificate of compliance or noncompliance with the smog check program, as appropriate, to the Department of Motor Vehicles with each application for initial registration of a new motor vehicle or transfer of registration of a motor vehicle that is subject to the smog check program. This bill would exempt from that requirement any motor vehicle whose transfer of ownership is exempt from the smog check requirements as a result of the circumstances of that transfer. (19) Existing law requires the Department of Water Resources to divide the state into watermaster service areas for the purpose of distributing water in accordance with certain water right determinations. Existing law authorizes the department to incur costs and make expenditures as necessary to provide for the administration of a service area and the distribution of water therein. Existing law requires the water right holders within the service area to pay 1/2 of those costs and the state to pay the other half. This bill would require those water right holders to pay all of those costs and would make related, conforming changes. (20) Existing law authorizes, on a project-by-project basis, and in accordance with designated plans, state participation in federal flood control projects and specifies the degree of cooperation to be assumed by the state and local agencies in connection with those projects. Existing law establishes procedures for the assumption of flood control maintenance and operation duties by the Department of Water Resources in connection with the formation of a maintenance area on behalf of a federal flood control project unit. Existing law prescribes requirements relating to the imposition of assessments on behalf of a maintenance area. Existing law requires the funds generated by the imposition of the assessments to be deposited in the Water Resources Revolving Fund and continuously appropriates those funds to pay the operation and maintenance costs of maintenance areas. This bill would authorize the department to investigate a project that is authorized by the state and approved by Congress to determine whether the project is no longer justified and whether appropriate action should be taken to deauthorize the project. The bill would provide that the Reclamation Board or the department, as applicable, is not required to prepare an estimate of cost to maintain a project unit abandoned by a local agency or proceed with the formation of a maintenance area if neither agency has given certain assurances regarding the maintenance and operation of the project. The bill would change requirements relating to the imposition of assessments by, among other things, revising the definition of the term "operation and maintenance costs" to include additional costs. The bill also would revise a prohibition on the expenditure of funds on behalf of a project unit if that expenditure exceeds 20% of the estimated costs of the maintenance work by authorizing certain expenditures that exceed that amount. By revising requirements relating to the continuous appropriation of funds from the Water Resources Revolving Fund, the bill would make an appropriation. (21) The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Proposition 50) which was approved by the voters at the November 5, 2002, statewide election, authorizes the issuance of bonds in the amount of $3,440,000,000. The act, with certain exceptions and for the purposes of funding eligibility, requires a project that will assist in the fulfillment of one or more of the goals of the CALFED Bay-Delta Program to be consistent with the CALFED Programmatic Record of Decision. This bill, for the purpose of ensuring compliance with that requirement, would require the California Bay-Delta Authority to review regulations, guidelines, or criteria that are proposed by an implementing agency to carry out a grant program for certain projects and activities. The bill would authorize the authority to review, and comment to the appropriate implementing agency with regard to, a proposal to award a grant pursuant to the act on behalf of a project that meets certain criteria for the purposes of determining whether or not the project is consistent with the CALFED Programmatic Record of Decision. (22) The California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 (Proposition 40), which was approved by the voters at the March 5, 2002, statewide election, establishes the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Fund. The act authorizes moneys from the fund to be appropriated by the Legislature for various purposes related to resources and parks and recreation. The Budget Act of 2004, if enacted, would appropriate $7,481,000 from the fund to the Department of Forestry and Fire Protection. This bill would require a Program Timberland Environmental Impact Report (PTEIR) that is funded pursuant to that appropriation to be used only for hazardous fuel reduction, as specified. (23) 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. (24) 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. Section 13220 of the Fish and Game Code is amended to read: 13220. Except as provided in Section 13230, the money in the Fish and Game Preservation Fund is available for expenditure, upon appropriation by the Legislature, for all of the following purposes: (a) To the department for payment of refunds of sums determined by it to have been erroneously deposited in the fund, including, but not limited to, money received or collected in payment of fees, licenses, permits, taxes, fines, forfeitures, or services. (b) To the department for expenditure in accordance with law for the payment of all necessary expenses incurred in carrying out this code and any other laws for the protection and preservation of birds, mammals, reptiles, and fish. (c) To the commission for expenditure in accordance with law for the payment of the compensation and expenses of the commissioners and employees of the commission. SEC. 2. Section 12112 of the Food and Agricultural Code is repealed. SEC. 3. Section 12841 of the Food and Agricultural Code is amended to read: 12841. (a) It is unlawful for a person to sell for use in this state any pesticide products that have been registered by the director for which the mill assessment established by this article, and the regulations adopted pursuant to it, is not paid at the times specified in Section 12843. (b) Except as provided in subdivision (d), every person who sells for use in this state a pesticide product that has been registered by the director shall pay to the director the applicable assessment. Those sales expressly include all sales made electronically, telephonically, or by any other means that result in a pesticide product being shipped to or used in this state. There is a rebuttable presumption that pesticide products that are sold or distributed into or within this state by any person are sold or distributed for use in this state. (c) (1) Upon application of a registrant, the director shall determine whether a fertilizer or paper product is used as a carrier for a pesticide, and is sold in combination, and whether the mill assessment under this article shall be on the pesticide value only, when the product is designed, developed, and manufactured, and sold primarily for other than a pesticide use. If the director finds that the combination product has such a major component and is designed, developed, manufactured, and sold primarily for other than a pesticide use, the assessment provided by this article shall be paid on the equivalent percentage of the sales price of the active ingredients of the pesticide product. The director shall establish this percentage of the sales price. The percentage shall be the ratio of that portion of the sales price attributable to the pesticide portion to the total sales price of the combination product. (2) For purposes of this section, "active ingredient" means any active ingredient that is required to be stated on the label on any registered pesticide under Section 12883. (d) Assessments provided for in this article for sales of registered pesticides that are sold for use in this state shall be paid by the registrant except as follows: (1) In those cases where the registrant did not first sell the pesticide into or within this state or have actual knowledge, at the time of its sale, that the pesticide would be sold for use in this state, the assessment shall be paid by the licensed pesticide broker, licensed pest control dealer, or other person who first sold the pesticide for use in this state. (2) A person is not required to pay an assessment on registered products that are labeled only for use in further manufacturing or formulating of pesticides. (e) It has been and continues to be the intent of the Legislature that this division requires the department to register all pesticides prior to their sale for use in this state and, except as otherwise provided by law, requires the department to regulate and control the use of pesticides in accordance with this division. Except as provided in Section 12841.1, the department shall continue to collect the assessment as provided in this article at the same rate on all registered agricultural and registered nonagricultural pesticides. (f) (1) The mill assessment shall be paid at the following rates per dollar of sales for all sales of pesticides for use in this state: (A) From January 1, 1998, to March 31, 1999, inclusive, the rate shall be 15.15 mills ($0.01515) plus any additional assessment authorized by Section 12841.1. (B) From April 1, 1999, to December 31, 2002, inclusive, the rate shall be 17.5 mills ($0.0175) plus any additional assessment authorized by Section 12841.1. (C) From January 1, 2003, to December 31, 2003, inclusive, the rate shall be 17.5 mills ($0.0175). (D) For all transactions on or after January 1, 2004, the actual rate shall be that set by regulations adopted by the director at a rate adequate to support the department's annual expenditures authorized in the annual Budget Act and provide a prudent reserve. The rate set by the director shall be no greater than 21 mills ($0.021). However, if regulations are not adopted before a payment is due, payment shall be made at the rate of 17.5 mills ($0.0175), and, upon adoption of regulations, payment of any additional amount due shall be made. (2) The regulations adopted pursuant to this section, or any amendment thereto, shall be adopted by the director in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. However, the adoption, amendment, readoption, or repeal of these regulations shall be considered by the Office of Administrative Law as an emergency, and necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding any other provision of law, the regulations shall remain in effect until amended by the director. The director shall make available to the public, upon the adoption of an emergency regulation establishing a new rate, the information upon which the director has calculated, based, or determined the new rate. (g) The revenue collected pursuant to this section shall be deposited in the Department of Pesticide Regulation Fund and distributed as follows: (1) Notwithstanding Sections 2282 and 12784, the director shall pay, in accordance with the criteria set forth in Section 12844, the following amounts to the counties as reimbursement for costs incurred by the counties in the administration and enforcement of Division 6 (commencing with Section 11401), this chapter, Chapter 3 (commencing with Section 14001), Chapter 3.4 (commencing with Section 14090), and Chapter 3.5 (commencing with Section 14101): (A) From January 1, 1998, to March 31, 1998, inclusive, five-eighths of the money received during that period pursuant to this section. (B) From April 1, 1998 to June 30, 2004, an amount equal to the revenue derived from 6 mills ($0.006) per dollar of sales for all pesticide sales for use in this state. (C) Beginning July 1, 2004, an amount equal to the revenue derived from 7.6 mills ($0.0076) per dollar of sales for all pesticide sales for use in this state. (2) All funds not otherwise distributed pursuant to this subdivision shall remain in the Department of Pesticide Regulation Fund and shall be available for expenditure, upon appropriation, to support the department's operations. SEC. 4. Section 12812.6 is added to the Government Code, to read: 12812.6. The Secretary for Environmental Protection shall coordinate greenhouse gas emission reductions and climate-change activities in state government. SEC. 5. Section 51283 of the Government Code is amended to read: 51283. (a) Prior to any action by the board or council giving tentative approval to the cancellation of any contract, the county assessor of the county in which the land is located shall determine the current fair market value of the land as though it were free of the contractual restriction. The assessor shall certify to the board or council the cancellation valuation of the land for the purpose of determining the cancellation fee. At the same time, the assessor shall send a notice to the assessee indicating the current fair market value of the land as though it were free of the contractual restriction. The notice shall advise the assessee of the right to appeal the fair market value of the land under Section 1605 of the Revenue and Taxation Code and that the appeal shall be filed within 60 days of the date of mailing printed on the notice or the postmark date therefor, whichever is later. (b) Prior to giving tentative approval to the cancellation of any contract, the board or council shall determine and certify to the county auditor the amount of the cancellation fee that the landowner shall pay the county treasurer upon cancellation. That fee shall be an amount equal to 121/2 percent of the cancellation valuation of the property. (c) If it finds that it is in the public interest to do so, the board or council may waive any payment or any portion of a payment by the landowner, or may extend the time for making the payment or a portion of the payment contingent upon the future use made of the land and its economic return to the landowner for a period of time not to exceed the unexpired period of the contract, had it not been canceled, if all of the following occur: (1) The cancellation is caused by an involuntary transfer or change in the use which may be made of the land and the land is not immediately suitable, nor will be immediately used, for a purpose which produces a greater economic return to the owner. (2) The board or council has determined that it is in the best interests of the program to conserve agricultural land use that the payment be either deferred or is not required. (3) The waiver or extension of time is approved by the Secretary of the Resources Agency. The secretary shall approve a waiver or extension of time if the secretary finds that the granting of the waiver or extension of time by the board or council is consistent with the policies of this chapter and that the board or council complied with this article. In evaluating a request for a waiver or extension of time, the secretary shall review the findings of the board or council, the evidence in the record of the board or council, and any other evidence the secretary may receive concerning the cancellation, waiver, or extension of time. (d) The first two million thirty-six thousand dollars ($2,036,000) of revenue paid to the Controller pursuant to subdivision (e) in the 2004-05 fiscal year, and any other amount as approved in the final Budget Act for each fiscal year thereafter, shall be deposited in the Soil Conservation Fund, which is continued in existence. The money in the fund is available, when appropriated by the Legislature, for the support of all of the following: (1) The cost of the farmlands mapping and monitoring program of the Department of Conservation pursuant to Section 65570. (2) The soil conservation program identified in Section 614 of the Public Resources Code. (3) Program support costs of this chapter as administered by the Department of Conservation. (4) Program support costs incurred by the Department of Conservation in administering the open-space subvention program (Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2). (e) When cancellation fees required by this section are collected, they shall be transmitted by the county treasurer to the Controller and deposited in the General Fund, except as provided in subdivision (d). The funds collected by the county treasurer with respect to each cancellation of a contract shall be transmitted to the Controller within 30 days of the execution of a certificate of cancellation of contract by the board or council, as specified in subdivision (b) of Section 51283.4. (f) It is the intent of the Legislature that fees paid to cancel a contract do not constitute taxes but are payments that, when made, provide a private benefit that tends to increase the value of the property. SEC. 6. Section 42821 of the Health and Safety Code is amended to read: 42821. (a) The registry shall be governed by a nine-member board of directors, to be composed of all of the following members: (1) The Secretary of the Resources Agency, or his or her designee. (2) The Secretary for Environmental Protection, or his or her designee. (3) One member appointed by the Senate Committee on Rules. (4) One member appointed by the Speaker of the Assembly. (5) Five public members representing business, local government, and public interest environmental organizations, to be appointed by the Governor for two-year terms, staggered so that, initially, three public members serve one-year terms and two members serve two-year terms. In the event of a vacancy, the Governor shall appoint a replacement public board member. (b) The board of directors of the registry is responsible for ensuring that the registry fulfills the purposes established by this chapter and meets the financial, reporting, and operating requirements of its articles of incorporation. The board of directors shall appoint and supervise an executive director, who shall hire and direct staff. (c) The board of directors shall adopt bylaws that ensure that, at each regularly scheduled meeting of the registry, there will be an opportunity for members of the public to comment on matters being considered by the registry, as specified on the registry meeting agenda. SEC. 7. Section 44011 of the Health and Safety Code is amended to read: 44011. (a) All motor vehicles powered by internal combustion engines that are registered within an area designated for program coverage shall be required biennially to obtain a certificate of compliance or noncompliance, except for all of the following: (1) Every motorcycle, and every diesel-powered vehicle, until the department, pursuant to Section 44012, implements test procedures applicable to motorcycles or to diesel-powered vehicles, or both. (2) Any motor vehicle that has been issued a certificate of compliance or noncompliance or a repair cost waiver upon a change of ownership or initial registration in this state during the preceding six months. (3) (A) Prior to January 1, 2003, any motor vehicle manufactured prior to the 1974 model-year. (B) Beginning January 1, 2003, any motor vehicle that is 30 or more model-years old. (4) (A) Beginning January 1, 2005, any motor vehicle up to six model-years old. (B) Any motor vehicle excepted by this paragraph shall be subject to testing and to certification requirements as determined by the department, if any of the following apply: (i) The department determines through remote sensing activities or other means that there is a substantial probability that the vehicle has a tampered emission control system or would fail for other cause a smog check test as specified in Section 44012. (ii) The vehicle was previously registered outside this state and is undergoing initial registration in this state. (iii) The vehicle is being registered as a specially constructed vehicle. (iv) The vehicle has been selected for testing pursuant to Section 44014.7 or any other provision of this chapter authorizing out-of-cycle testing. (5) In addition to the vehicles exempted pursuant to paragraph (4), any motor vehicle or class of motor vehicles exempted pursuant to subdivision (b) of Section 44024.5. It is the intent of the Legislature that the department, pursuant to the authority granted by this paragraph, exempt at least 15 percent of the lowest emitting motor vehicles from the biennial smog check inspection. (6) Any motor vehicle that the department determines would present prohibitive inspection or repair problems. (7) Any vehicle registered to the owner of a fleet licensed pursuant to Section 44020 if the vehicle is garaged exclusively outside the area included in program coverage, and is not primarily operated inside the area included in program coverage. (b) Vehicles designated for program coverage in enhanced areas shall be required to obtain inspections from appropriate smog check stations operating in enhanced areas. SEC. 8. Section 44060 of the Health and Safety Code is amended to read: 44060. (a) The department shall prescribe the form of the certificate of compliance or noncompliance, repair cost waivers, and economic hardship extensions. (b) The certificates, repair cost waivers, and economic hardship extensions shall be in the form of an electronic entry filed with the department, the Department of Motor Vehicles, and any other person designated by the department. The department shall ensure that the motor vehicle owner or operator is provided with a written report, signed by the licensed technician who performed the inspection, of any test performed by a smog check station, including a pass or fail indication, and written confirmation of the issuance of the certificate. (c) (1) The department shall charge a fee to a smog check station, including a test-only station, and a station providing referee functions, for a motor vehicle inspected at that station that meets the requirements of this chapter and is issued a certificate of compliance, a certificate of noncompliance, repair cost waiver, or economic hardship extension. (2) The fee charged pursuant to paragraph (1) shall be calculated to recover the costs of the department and any other state agency directly involved in the implementation, administration, or enforcement of the motor vehicle inspection and maintenance program, and shall not exceed the amount reasonably necessary to fund the operation of the program, including all responsibilities, requirements, and obligations imposed upon the department or any of those state agencies by this chapter, that are not otherwise recoverable by fees received pursuant to Section 44034. (3) Except for adjustments to reflect changes in the Consumer Price Index, as published by the United States Bureau of Labor Statistics, the fee for each certificate, waiver, or extension shall not exceed seven dollars ($7). (4) Fees collected by the department pursuant to this subdivision shall be deposited in the Vehicle Inspection and Repair Fund. It is the intent of the Legislature that a prudent surplus be maintained in the Vehicle Inspection and Repair Fund. (d) (1) Motor vehicles exempted under paragraph (4) of subdivision (a) of Section 44011 shall be subject to an annual smog abatement fee of twelve dollars ($12). The department may also, by regulation, subject motor vehicles that are exempted under paragraph (5) of subdivision (a) of Section 44011 to the twelve dollar ($12) annual smog abatement fee. Payment of the annual smog abatement fee shall be made to the Department of Motor Vehicles at the time of registration of the motor vehicle. (2) Except as provided in subdivision (a) of Section 44091.1, fees collected pursuant to this subdivision shall be deposited on a daily basis into the Vehicle Inspection and Repair Fund. (e) The sale or transfer of the certificate, waiver, or extension by a licensed smog check station or test-only station to any other licensed smog check station or to any other person, and the purchase or acquisition of the certificate, waiver, or extension, by any person, other than from the department, the department's designee, or pursuant to a vehicle's inspection or repair conducted pursuant to this chapter, is prohibited. (f) Following implementation of the electronic entry certificate under subdivision (b), the department may require the modification of the analyzers and other equipment required at smog check stations to prevent the entry of a certificate that has not been issued or validated through prepayment of the fee authorized by subdivision (c). (g) The fee charged by licensed smog check stations to consumers for a certificate, waiver, or extension shall be the same amount that is charged by the department. SEC. 9. Section 44091 of the Health and Safety Code is amended to read: 44091. (a) The High Polluter Repair or Removal Account is hereby created in the Vehicle Inspection and Repair Fund. All money deposited in the account pursuant to this article shall be available, upon appropriation by the Legislature, to the department and the state board to establish and implement a program for the repair or replacement of high polluters pursuant to Section 44062.1 and Article 10 (commencing with Section 44100). (b) The department may accept donations or grants of funds from any person for purposes of the program and shall deposit that money in the account. Donations, grants, or other commitments of money to the account may be dedicated for specific purposes consistent with the uses of the account, including, but not limited to, purchasing higher emitting vehicles for the purpose of achieving the emission reductions required by the M-1 strategy of the 1994 State Implementation Plan (SIP). (c) The funds which are available in the account in any fiscal year for a particular area that is subject to an inspection and maintenance program shall be distributed to reflect the number of vehicles registered in that area to the total number of vehicles registered in areas that are subject to inspection and maintenance programs. That percentage shall be the percentage of the total funds allocated to the program in that fiscal year which are available for that particular area. (d) It is the intent of the Legislature that a prudent amount be determined to retain as a reserve in the Vehicle Inspection and Repair Fund, and that any moneys in the fund above that amount be transferred to the High Polluter Repair or Removal Account. It is also the intent of the Legislature that those transferred moneys be available, upon appropriation by the Legislature, for expenditure by the department to support the programs described in this section. (e) During any fiscal year, the money in the account shall be available, upon appropriation by the Legislature, for the following purposes: (1) Assistance in the repair of high polluters pursuant to the program established pursuant to Section 44062.1. (2) Voluntary accelerated retirement of high polluters. (3) Rulemaking, vehicle testing, and other technical work required to implement and administer the repair assistance program established pursuant to Section 44062.1 and the program described in Article 10 (commencing with Section 44100). (f) An amount of one million dollars ($1,000,000) annually for the 1997-98 fiscal year and the 1998-99 fiscal year shall be made available from the account for a program to evaluate the emission reduction effectiveness of the M-1 strategy of the 1994 SIP. (g) All remaining amounts in the account shall be available to the program of repair assistance established pursuant to Section 44062.1. (h) In no case shall the funding available in any subsequent fiscal year to the department for repairing or removing high-emitting vehicles under the inspection and maintenance program be less than the amount made available from the Vehicle Inspection and Repair Fund for that purpose in the 1995-96 fiscal year. SEC. 10. Section 44091.1 of the Health and Safety Code is amended to read: 44091.1. The fee specified in paragraph (1) of subdivision (d) of Section 44060 shall be twelve dollars ($12). The revenues from that fee shall be allocated as follows: (a) The revenues generated by six dollars ($6) of the fee shall be deposited in the Air Pollution Control Fund, and shall be available for expenditure, upon appropriation by the Legislature, to fund the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275)) to the extent that the state board or a participating district determines the moneys are expended to mitigate or remediate the harm caused by the type of motor vehicle on which the fee is imposed. (b) (1) Except as provided for in paragraph (2), of the revenue generated by the remaining six dollars ($6) of the fee, two dollars ($2) shall be deposited in the account created by Section 44091, while the revenue generated by the remaining four dollars ($4) shall be deposited in the Vehicle Inspection and Repair Fund. (2) All revenue generated by the remaining six dollars ($6) of the fee described in this subdivision that is imposed at first registration of a motor vehicle and that is exempted under paragraph (4) of subdivision (a) of Section 44011 shall be deposited in the account created by Section 44091. SEC. 11. Section 5045 of the Public Resources Code is amended to read: 5045. (a) The tufa and associated sand structures at Mono Lake are a valuable geologic and scientific natural resource and are unique in North America for their beauty, abundance, diversity, and public accessibility. Their extreme fragility requires special measures for their protection and preservation for the enjoyment and education of the public. (b) The Mono Lake Tufa State Reserve is hereby established as a unit of the state park system and shall consist of the state-owned portions of the Mono Lake bed lying at or below the elevation of 6,417 feet above sea level. The reserve shall include, and the department shall manage, all resources within the reserve's boundaries including the waters of Mono Lake. As soon as practicable after January 1, 1982, the State Lands Commission shall issue a permit for occupancy to the department pursuant to Section 6221. SEC. 12. Section 5046 of the Public Resources Code is amended to read: 5046. (a) The reserve shall be managed primarily for the purpose of protecting the tufa and associated sand structures and providing for their interpretation. The department shall designate public accessways to Mono Lake for recreational and other purposes that are not in conflict with the preservation of the tufa and associated sand structures. (b) The department may enter into agreements with any other public agency to provide for the joint management of the reserve and the provision of visitor and interpretive services and facilities in connection therewith. For purposes of administrative support, departmental personnel may be assigned to any other unit of the state park system in the vicinity of the reserve. (c) The department shall commence managing the reserve, including all resources within the reserve's boundaries which includes the waters of Mono Lake, as soon as practicable after January 1, 1982, and, to this end, the reserve is exempt from the requirements of subdivision (a) of Section 5002.2 because the only improvements contemplated at the reserve are temporary facilities within the meaning of subdivision (c) of Section 5002.2. SEC. 13. Article 8 (commencing with Section 5079.70) is added to Chapter 1.1.5 of Division 5 of the Public Resources Code, to read: Article 8. The California Main Street Program 5079.70. There is hereby created within the office the California Main Street Program to provide technical assistance and training for small cities' government, business organizations, merchants, and property owners to accomplish community and economic revitalization and development of older central and historic business districts and neighborhoods. 5079.72. There is hereby established in the State Treasury the California Main Street Program Fund. All private contributions, federal funds, and fees for services, if levied, shall be deposited into the fund for the operation of the program. The moneys in the fund shall be available, upon appropriation by the Legislature, for the purposes of this article. 5079.74. The office shall incur costs to implement this article only to the extent that funding adequate to cover those costs has been deposited in, and appropriated from, the California Main Street Program Fund. SEC. 14. Chapter 3.8 (commencing with Section 5750) is added to Division 5 of the Public Resources Code, to read: CHAPTER 3.8. CALIFORNIA RIVER PARKWAYS ACT OF 2004 5750. This chapter shall be known, and may be cited, as the California River Parkways Act of 2004. 5751. The Legislature finds and declares all of the following: (a) River parkways directly improve the quality of life in California by providing important recreational, open space, wildlife, flood management, water quality, and urban waterfront revitalization benefits to communities in the state. (b) River parkways provide communities with safe places for recreation including family picnics; bicycling and hiking; areas for river access for swimming, canoeing, and fishing; and many other activities. (c) River parkways help revitalize deteriorated urban neighborhoods and provide an anchor for economic development by providing important recreational and scenic amenities. (d) River parkways provide accessible open space that helps remedy the severe shortage of park and open-space areas that plague many urban and suburban communities, small towns, and rural areas. (e) River parkways provide flood protection benefits for communities by providing wider corridors along our waterways that help store, and provide safe corridors for the passage of, storm waters. (f) River parkways protect and restore riparian and riverine habitat. (g) River parkways improve or protect the water quality in our rivers and streams. (h) River parkways provide the recreational and ecosystem components of integrated regional water management and watershed plans. (i) California can improve the quality of life in this state by assisting public agencies and nonprofit organizations in establishing, developing, and restoring river parkways. 5752. For purposes of this chapter, the following terms have the following meanings: (a) "Acquisition" means obtaining fee title or a lesser interest in real property, including easements, development rights, or water rights. (b) "Development" includes, but is not limited to, improvement, rehabilitation, restoration, enhancement, preservation, protection, and interpretation. (c) "Interpretation" includes, but is not limited to, visitor-serving amenities that communicate the significance and value of natural, historical, and cultural resources in a way that increases understanding and enjoyment of those resources. (d) "Nonprofit organization" means a private, nonprofit organization that qualifies for exempt status under Section 501(c)(3) of the United States Internal Revenue Code. (e) "Parkways program" means the California River Parkways Program established pursuant to subdivision (a) of Section 5753. (f) "Secretary" means the Secretary of the Resources Agency. 5753. (a) The California River Parkways Program is hereby established in the office of the Secretary of the Resources Agency, to be administered by the secretary. (b) The secretary shall make grants available to public agencies and nonprofit organizations for river parkway projects from moneys appropriated to the secretary. Those funds may also be used for costs directly related to the delivery of the river parkways program. (c) Grants may be awarded for the acquisition of land for river parkways or for the restoration, protection, and development of river parkways in accordance with the provisions of this chapter. Not more than 10 percent of the funds appropriated to the secretary for river parkways may be used for urban stream restoration projects pursuant to Section 7048 of the Water Code. (d) All projects shall comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000)). (e) All acquisitions shall be from willing sellers. (f) To be eligible for a grant, a project shall provide public access or be a component of a larger parkway plan that provides public access and, at a minimum, meets two of any of the following conditions: (1) Provide compatible recreational opportunities including trails for strolling, hiking, bicycling, and equestrian uses along rivers and streams. (2) Protect, improve, or restore riverine or riparian habitat, including benefits to wildlife habitat and water quality. (3) Maintain or restore the open-space character of lands along rivers and streams so that they are compatible with periodic flooding as part of a flood management plan or project. (4) Convert existing developed riverfront land uses into uses consistent with river parkways, as identified in this chapter. (5) Provide facilities to support or interpret river or stream restoration or other conservation activities. 5754. To the extent funds are available, the secretary shall develop guidelines for the preparation and consideration of river parkway plans for the purpose of Section 5753 and may award grants to assist in development of such plans. 5755. The secretary shall report annually to the Legislature regarding the geographic distribution, types, and benefits of projects funded pursuant to this chapter. 5756. The secretary shall develop regulations, criteria, or procedural guidelines for the implementation of this chapter that shall be consistent with, but not limited to, Section 5753. All regulations, criteria, and procedural guides adopted by the secretary to implement this chapter are exempt from Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code. SEC. 15. Chapter 7.5 (commencing with Section 5819) is added to Division 5 of the Public Resources Code, to read: CHAPTER 7.5. SIERRA NEVADA-CASCADE CONSERVATION GRANT PROGRAM 5819. Unless the context requires otherwise, the following definitions govern this chapter: (a) "Acquisition" means obtaining fee title or a lesser interest in real property, including an easement, development right, or water right. (b) "Development" includes, but is not limited to, improvement, rehabilitation, restoration, enhancement, preservation, protection, and interpretation. (c) "Interpretation" includes, but is not limited to, visitor serving amenities that communicate the significance and value of natural, historical, and cultural resources in a manner that increases understanding of those resources. (d) "Nonprofit organization" means a private, nonprofit organization that qualifies for exempt status under paragraph (3) of subsection (c) Section 501 of Title 26 of the United States Code. (e) "Program" means the Sierra Nevada-Cascade Conservation Grant Program established pursuant to this chapter. (f) "Secretary" means the Secretary of the Resources Agency. (g) "Sierra Nevada-Cascade Mountain Region" or "region" has the meaning set forth in subdivision (e) of Section 5096.347. 5819.1. (a) This chapter establishes the Sierra Nevada-Cascade Conservation Grant Program in the Resources Agency. (b) The secretary shall administer the program. (c) The program applies only in the Sierra Nevada-Cascade Mountain Region. 5819.2. (a) The secretary shall administer the program consistent with authorized funding, and collaborate and cooperate with local governments and interested parties. (b) The purposes of the program include all of the following: (1) Providing increased opportunities for tourism and recreation in the region. (2) Protecting water quality in the region from degradation. (3) Reducing the risk of natural disasters, such as fire, in the region. (4) Protecting, conserving, and restoring the region's physical, cultural, archaeological, and historical resources. (5) Assisting the region's economy, including providing increased economic opportunities. (6) Identifying the highest priority projects and initiatives in the region for which funding is needed. (7) Enhancing public use and enjoyment of land in the region that is owned by the state or a local government. (8) Supporting efforts that advance, in a complementary manner, environmental preservation of the region and the economic well-being of the region's residents. (9) Helping to preserve working landscapes in the region. (10) Supporting local government efforts to develop and implement open space and habitat protection plans, including natural community conservation plans, in the region. 5819.3. (a) The secretary may undertake projects and activities to further the purposes identified in Section 5819.2. Those projects and activities may include providing grants and loans to public agencies and nonprofit organizations for acquisition, restoration, development, and other activities and projects, that are necessary to meet the purposes identified in Section 5819.2. The projects and activities undertaken by the secretary, including the providing of grants and loans, shall be consistent with any restrictions related to the source of moneys that are used to fund those activities and projects. (b) In administering this chapter, the secretary shall collaborate and cooperate with the city or county in which a grant is proposed to be used or an interest in land is proposed to be acquired. 5819.4. To implement Section 79544 of the Water Code, the secretary may provide grants to local public agencies, local water districts, and nonprofit organizations, for acquisition in the region pursuant to this chapter and consistent with Section 79544 of the Water Code, only for the following purposes: (a) Acquiring agricultural, forest, or grazing land, or other working landscapes, to prevent conversion of that land to uses that could decrease water quality in the region and degrade habitat values, or to convert that land to uses that could improve water quality in the region and habitat. (b) Acquiring land adjacent to or affecting rivers, streams, lakes, or wetlands, that, if not protected, could lead to a decrease in water quality in the region. (c) Purchasing water rights that will protect both water quality and in stream flow, in the region, for resource protection. (d) Acquiring land that mitigates or prevents current or anticipated management practices that contribute to water quality degradation in the region. 5819.5. The secretary shall require an applicant for a grant for land or water resource acquisition to include in the grant application a proposal for the long-term management of the resource that the applicant proposes to acquire. The applicant shall identify the entity that will hold title to the resource, including any state or federal agency to which title may be transferred after acquisition, and the entity that will be responsible for managing and protecting the water quality value of the resource. 5819.6. An acquisition made pursuant to this chapter shall be from a willing seller. 5819.7. All regulations, criteria, and procedural guides that the secretary adopts to implement this chapter are exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. 5819.8. It is the intent of the Legislature to provide in any legislation that establishes a Sierra Nevada Conservancy an appropriate transition from the program established by this chapter within the Resources Agency to the new conservancy. SEC. 16. Section 30940 of the Public Resources Code is amended to read: 30940. (a) The board may award grants to public agencies or nonprofit organizations for the purposes of improving agricultural water quality through monitoring, demonstration projects, research, construction of agricultural drainage improvements, and for projects to reduce pollutants in agricultural drainage water through reuse, integrated management, or treatment. Grants made pursuant to this section may be used to provide matching funds for federal grant programs. The board, in consultation with the Department of Food and Agriculture and the program advisory review board established pursuant to Section 593 of the Food and Agricultural Code, shall develop criteria for evaluating projects considered for grants under this section. (b) (1) On or before June 30, 2005, the board, in consultation with the Department of Food and Agriculture, shall adopt guidelines for a dairy water quality improvement grant program that provides competitive grants for projects, including water quality planning and regional and on-farm projects, and projects undertaken by dairy operators, to reduce threats to, or impairment of, water quality from dairy operations. (2) In order to be eligible for a grant pursuant to this subdivision, a dairy operator shall have completed the environmental stewardship short course of the dairy quality assurance program, unless the board finds and determines that the operator has taken other similar actions to mitigate adverse environmental effects of its dairy operation. (c) The board shall specify a matching fund requirement, as a condition of providing grants under subdivision (a) or (b). SEC. 17. Part 3.5 (commencing with Section 71120) is added to Division 34 of the Public Resources Code, to read: PART 3.5. CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY CONSOLIDATION 71120. Unless the context requires otherwise, the following definitions govern this part: (a) "Agency" means the California Environmental Protection Agency. (b) "Secretary" means the Secretary for Environmental Protection. 71121. (a) In the 2004-05 fiscal year, to the extent that it will achieve actual budget savings and to the extent authorized by existing law, the secretary shall consolidate the number of accounts and funds in the Treasury that are for the support of programs administered by the boards, departments, and offices within the agency. (b) The secretary shall request the Governor to reflect the consolidation of funds in the proposed Governor's budget for fiscal year 2005-06. (c) Nothing in this section authorizes a change in purpose, revenue, management, allocation, or expenditure, related to a program supported by a special fund, or the manner or means of collecting revenue that is deposited in a special fund. 71122. In the 2004-05 fiscal year, to the extent that it will achieve actual budget savings, the secretary shall consolidate the following non-policy functions that are common among the boards, departments, and offices within the agency: (a) Information technology. (b) Collecting fees. (c) Procuring basic office supplies and equipment. (d) The generic human resources functions that support state personnel, including health and safety programs, employee training, recruitment and exams for common civil service classifications, equal opportunity officers, transportation related services and programs, mail, reproduction, shipping, and receiving. 71123. (a) The implementation of Sections 71121 and 71122 shall not affect the independence of a board, department, or office within the agency to administer its own budget or to manage its own employees, except for the specific activities consolidated by the secretary pursuant to those sections. (b) The implementation of Sections 71121 and 71122 shall not affect the personnel of a board, department, or office within the agency, who are engaged in program work and related support functions such as contract administration and facilities management. (c) The implementation of Sections 71121 and 71122 shall not result in the transfer of fee revenue from a board, department, or office within the agency, to another board, department, or office within the agency. (d) Nothing in this part shall affect an executive reorganization pursuant to Article 7.5 (commencing with Section 12080) of Chapter 1 of Part 2 of Division 3 of Title 2 of the Government Code. 71124. The secretary shall report any budget savings achieved pursuant to Sections 71121 and 71122 to the Legislature's budget committees, for appropriation to programs that directly reduce air pollution or water pollution, or protect public health and the environment, if that appropriation complies with existing constraints on the use of the moneys saved. 71125. The secretary may use a reimbursement from a board, department, or office within the agency for a consolidated service that the agency provides to those entities. 71126. Upon the request of the secretary, the Department of Finance shall assist the secretary in complying with this part. SEC. 18. Section 4000.1 of the Vehicle Code is amended to read: 4000.1. (a) Except as otherwise provided in subdivision (b), (c), or (d) of this section, or subdivision (b) of Section 43654 of the Health and Safety Code, the department shall require upon initial registration, and upon transfer of ownership and registration, of any motor vehicle subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, and upon registration of a motor vehicle previously registered outside this state which is subject to those provisions of the Health and Safety Code, a valid certificate of compliance or a certificate of noncompliance, as appropriate, issued in accordance with Section 44015 of the Health and Safety Code. (b) With respect to new vehicles certified pursuant to Chapter 2 (commencing with Section 43100) of Part 5 of Division 26 of the Health and Safety Code, the department shall accept a statement completed pursuant to subdivision (b) of Section 24007 in lieu of the certificate of compliance. (c) For purposes of determining the validity of a certificate of compliance or noncompliance submitted in compliance with the requirements of this section, the definitions of new and used motor vehicle contained in Chapter 2 (commencing with Section 39010) of Part 1 of Division 26 of the Health and Safety Code shall control. (d) Subdivision (a) does not apply to a transfer of ownership and registration under any of the following circumstances: (1) The initial application for transfer is submitted within the 90-day validity period of a smog certificate as specified in Section 44015 of the Health and Safety Code. (2) The transferor is either the parent, grandparent, sibling, child, grandchild, or spouse of the transferee. (3) A vehicle registered to a sole proprietorship is transferred to the proprietor as owner. (4) The transfer is between companies whose principal business is leasing vehicles, if there is no change in the lessee or operator of the vehicle or between the lessor and the person who has been, for at least one year, the lessee's operator of the vehicle. (5) The transfer is between the lessor and lessee of the vehicle, if there is no change in the lessee or operator of the vehicle. (6) Prior to January 1, 2003, the motor vehicle was manufactured prior to the 1974 model-year. (7) Beginning January 1, 2003, the motor vehicle is 30 or more model-years old. (8) Beginning January 1, 2005, the transfer is for a vehicle that is four or less model-years old. The department shall impose a fee of eight dollars ($8) on the transferee of a vehicle that is four or less model-years old. Revenues generated from the imposition of that fee shall be deposited into the Vehicle Inspection and Repair Fund. (e) The State Air Resources Board, under Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, may exempt designated classifications of motor vehicles from subdivision (a) as it deems necessary, and shall notify the department of that action. (f) Subdivision (a) does not apply to a motor vehicle when an additional individual is added as a registered owner of the vehicle. SEC. 19. Section 5067 of the Vehicle Code is amended to read: 5067. (a) The department, in consultation with the California Coastal Commission, shall design and make available for issuance pursuant to this article special environmental design license plates. Notwithstanding subdivision (a) of Section 5060, the special environmental design license plates shall bear a graphic design depicting a California coastal motif and may be issued in a combination of numbers or letters, or both, as requested by the applicant for the plates. Any person described in Section 5101 may, upon payment of the additional fees set forth in subdivision (b), apply for and be issued a set of special environmental design license plates. (b) In addition to the regular fees for an original registration or renewal of registration, the following additional fees shall be paid for the issuance, renewal, retention, or transfer of the special environmental design license plates authorized pursuant to this section: (1) For the original issuance of the plates, fifty dollars ($50). (2) For a renewal of registration of the plates or retention of the plates, if renewal is not required, forty dollars ($40). (3) For transfer of the plates to another vehicle, fifteen dollars ($15). (4) For each substitute replacement plate, thirty-five dollars ($35). (5) In addition, for the issuance of an environmental license plate, as defined in Section 5103, the additional fees prescribed in Section 5106 and 5108. The additional fees prescribed in Sections 5106 and 5108 shall be deposited in the California Environmental License Plate Fund. (c) After deducting its administrative costs under this section, the department, except as provided in paragraph (5) of subdivision (b), shall deposit the additional revenue derived from the issuance, renewal, transfer, and substitution of special environmental design license plates as follows: (1) One-half in the California Beach and Coastal Enhancement Account, which is hereby established in the California Environmental License Plate Fund. Upon appropriation by the Legislature, the money in the account shall be allocated by the Controller as follows: (A) First to the California Coastal Commission for expenditure for the Adopt-A-Beach program, the Beach Cleanup Day program, coastal public education programs, and grants to local governments and nonprofit organizations for the costs of operating and maintaining public beaches related to these programs. (B) Second, from funds remaining after the allocation required under subparagraph (A), to the State Coastal Conservancy for coastal natural resource restoration and enhancement projects and for other projects consistent with the provisions of Division 21 (commencing with Section 31000) of the Public Resources Code. (2) One-half in the California Environmental License Plate Fund. SEC. 20. Section 24007 of the Vehicle Code is amended to read: 24007. (a) (1) No dealer or person holding a retail seller's permit shall sell a new or used vehicle that is not in compliance with this code and departmental regulations adopted pursuant to this code, unless the vehicle is sold to another dealer, sold for the purpose of being legally wrecked or dismantled, or sold exclusively for off-highway use. (2) Paragraph (1) does not apply to any vehicle sold by either (A) a dismantler after being reported for dismantling pursuant to Section 11520 or (B) a salvage pool after obtaining a salvage certificate pursuant to Section 11515 or a nonrepairable vehicle certificate issued pursuant to Section 11515.2. (3) Notwithstanding paragraph (1), the equipment requirements of this division do not apply to the sale of a leased vehicle by a dealer to a lessee if the lessee is in possession of the vehicle immediately prior to the time of the sale and the vehicle is registered in this state. (b) (1) Except as provided in Section 24007.5, no person shall sell, or offer or deliver for sale, to the ultimate purchaser, or to any subsequent purchaser a new or used motor vehicle, as those terms are defined in Chapter 2 (commencing with Section 39010) of Part 1 of Division 26 of the Health and Safety Code, subject to Part 5 (commencing with Section 43000) of that Division 26 which is not in compliance with that part and the rules and regulations of the State Air Resources Board, unless the vehicle is sold to a dealer or sold for the purpose of being legally wrecked or dismantled. (2) Prior to or at the time of delivery for sale, the seller shall provide the purchaser a valid certificate of compliance or certificate of noncompliance, as appropriate, issued in accordance with Section 44015 of the Health and Safety Code. (3) Paragraph (2) does not apply to any vehicle whose transfer of ownership and registration is described in subdivision (d) of Section 4000.1. (4) Paragraphs (1) and (2) do not apply to any vehicle sold by either (A) a dismantler after being reported for dismantling pursuant to Section 11520 or (B) a salvage pool after obtaining a salvage certificate pursuant to Section 11515 or a nonrepairable vehicle certificate issued pursuant to Section 11515.2. (c) (1) With each application for initial registration of a new motor vehicle or transfer of registration of a motor vehicle subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, a dealer, the purchaser, or his or her authorized representative, shall transmit to the Department of Motor Vehicles a valid certificate of compliance or noncompliance, as appropriate, issued in accordance with Section 44015 of the Health and Safety Code. (2) Notwithstanding paragraph (1) of this subdivision, with respect to new vehicles certified pursuant to Chapter 2 (commencing with Section 43100) of Part 5 of Division 26 of the Health and Safety Code, a dealer may transmit, in lieu of a certificate of compliance, a statement, in a form and containing information deemed necessary and appropriate by the Director of Motor Vehicles and the Executive Officer of the State Air Resources Board, to attest to the vehicle's compliance with that chapter. The statement shall be certified under penalty of perjury, and shall be signed by the dealer or the dealer' s authorized representative. (3) Paragraph (1) does not apply to a transfer of ownership and registration under any of the circumstances described in subdivision (d) of Section 4000.1. SEC. 24. Section 4201 of the Water Code is amended to read: 4201. All of the cost of administration of a service area and the distribution of water therein shall be paid by the owners of the rights to divert or store water within the service area as provided in this chapter. SEC. 25. Section 4227 of the Water Code is amended to read: 4227. The statement shall also contain an apportionment of the amount of the budget among the owners of the various rights to store or divert within the service area. SEC. 26. Section 4250 of the Water Code is repealed. SEC. 27. Section 4251 of the Water Code is amended to read: 4251. One-tenth of the budget for the service area shall be apportioned equally among the respective ownerships of all water rights involved, and except as otherwise provided in this article the remaining nine-tenths shall be apportioned among the ownerships of the respective water rights in accordance with the quantities of water that the owners of the respective water rights are entitled to store or divert within the service area. SEC. 28. Section 4252 of the Water Code is amended to read: 4252. In all cases of rights to divert the direct flow of a stream, without storage, for power development or other nonconsumptive use, where the entire flow so diverted, with the exception of reasonable transportation losses, is returned to the same stream system above the next lower diversion, the owners of these rights shall share on account of these rights only in the equal apportionment of one-tenth of the budget for the service area, and shall not share in so far as these rights are concerned in the apportionment of the remaining nine-tenths. SEC. 29. Section 4327 of the Water Code is amended to read: 4327. The statement shall be submitted on or before the first day of September of the year preceding that for which it is made. SEC. 30. Section 4357 of the Water Code is amended to read: 4357. The expenditures for the supervision of the distribution of water in any service area shall be paid from that portion or account of the Water Resources Revolving Fund credited on the department's books to that service area, upon claims approved by the department and otherwise audited and approved as may be required in the case of other claims against the state. SEC. 31. Section 4405 of the Water Code is repealed. SEC. 32. Section 12639.1 is added to the Water Code, to read: 12639.1. The department may investigate any project adopted and authorized by the state and approved by the Congress to determine whether the project is no longer justified and whether appropriate action should be taken to deauthorize the project. The department shall coordinate that investigation with the federal agency involved in the project. SEC. 33. Section 12878 of the Water Code is amended to read: 12878. Unless the context otherwise requires, the following definitions apply throughout this chapter: (a) "Department" means Department of Water Resources. (b) "Director" means the Director of Water Resources. (c) "Board" means the State Reclamation Board. (d) Wherever the words "board or department" or "board or director" are used together in this chapter they shall mean board as to any project in the Sacramento or San Joaquin Valleys or on or near the Sacramento River or the San Joaquin River or any of their tributaries, and department or director as to any project in any other part of the state outside of the jurisdiction of the board. (e) "Project" means any project that has been authorized pursuant to Chapter 2 (commencing with Section 12639) or Chapter 4 (commencing with Section 12850) and concerning which assurances have been given to the Secretary of the Army or the Secretary of Agriculture that the state or a political subdivision thereof will operate and maintain the project works in accordance with regulations prescribed by the federal government or any project upon which assurances have been given to the Secretary of the Army and upon which the Corps of Engineers, United States Army, has performed work pursuant to Section 208 of Public Law 780, 83rd Congress, 2nd Session, approved September 3, 1954. (f) "Maintenance" means work described as maintenance by the federal regulations issued by the Secretary of the Army or the Secretary of Agriculture for any project. (g) "Maintenance area" means described or delineated lands that are found by the board or department to be benefited by the maintenance and operation of a particular unit of a project. (h) "Unit" means any portion of the works of a project designated as a unit by the board or department, other than the works prescribed in Section 8361 of this code, or works operated and maintained by the United States. (i) "Land" includes improvements. (j) "Local agency" means and includes all districts or other public agencies responsible for the operation of works of any project under Section 8370, Chapter 2 (commencing with Section 12639), Chapter 4 (commencing with Section 12850), or any other law of this state. (k) "Cost of operation and maintenance" means the cost of all maintenance, as defined in subdivision (f), and also includes, but is not limited to, all of the following costs: (1) All costs incurred by the department or the board in the formation of the maintenance area under this chapter. (2) Any costs, if deemed appropriate by the department, to secure insurance covering liability to others for damages arising from the maintenance activities of the department or from flooding in the maintenance area. (3) Any costs of defending any action brought against the state, the department, or the board, or any employees of these entities, for damages arising from the maintenance activities of the department or from flooding in the maintenance area. (4) Any costs incurred in the payment of any judgment or settlement of an action against the state, the department, or the board, or any employees of these entities, for damages arising from the formation of the maintenance area or from any maintenance activities of the department or flooding in the maintenance area. SEC. 34. Section 12878.1 of the Water Code is amended to read: 12878.1. (a) Whenever the department finds that a unit of a project is not being operated or maintained in accordance with the standards established by federal regulations or whenever the governing body of a local agency obligated to operate and maintain that unit by resolution duly adopted and filed with the department declares that it no longer desires to operate and maintain the unit, the department shall prepare a statement to that effect specifying in detail the particular items of work necessary to be done in order to comply with the standards of the federal government together with an estimate of the cost thereof for the current fiscal year and for the ensuing fiscal year. (b) Notwithstanding any other provision of law, the board or the department is not required to proceed in accordance with subdivision (a) or with the formation of a maintenance area under this chapter if neither the board nor the department has given the nonfederal assurances to the United States required for the project. If neither the board nor the department has given the nonfederal assurances to the United States required for the project, the board or department may elect to proceed with the formation if it determines that the formation of a maintenance area is in the best interest of the state. SEC. 35. Section 12878.33 of the Water Code is amended to read: 12878.33. If any area or zone lies within more than one county, the department shall divide the amount of the estimate in the proportion of the acreage in each county, as modified to reflect any zones of benefit, as described in Section 12878.9. SEC. 36. Section 12878.44 of the Water Code is amended to read: 12878.44. Money expended upon any unit during any fiscal year shall not exceed by more than 20 percent the amount of the estimate for that unit for that fiscal year, unless the department determines that expenditures that exceed that amount are necessary for emergency repairs or flood fighting. If in any fiscal year more money will be expended upon a unit than is, or will be, available from assessments or collections thereon derived from the maintenance area, the estimated amount of the deficit shall be added to the estimate for that unit for the following fiscal years, and if less money will be expended than collected, the estimated amount of that excess shall be deducted from the estimate. SEC. 37. Section 79509.6 is added to the Water Code, to read: 79509.6. (a) For the purposes of ensuring compliance with Section 79509, the California Bay-Delta Authority shall review regulations, guidelines, or criteria that are proposed by an implementing agency to carry out a grant program for projects and activities that meet the following criteria: (1) The project is located within the CALFED solution area as defined in the CALFED final programmatic environmental impact statement/environmental impact report, dated July 2000. (2) The project wholly or partially assists in the fulfillment of one or more of the goals of the CALFED Bay-Delta Program. (b) Except for projects financed pursuant to Chapter 6 (commencing with Section 79545) or Chapter 10 (commencing with Section 79570), the California Bay-Delta Authority may review, and comment to the appropriate implementing agency with regard to, a proposal to award a grant pursuant to this division on behalf of a project that meets the criteria set forth in subdivision (a) for the purposes of determining whether or not the project is consistent with the CALFED Programmatic Record of Decision. (c) To avoid any delays in project awards, the opportunity for review by the California Bay-Delta Authority pursuant to subdivision (b) shall be incorporated into the grant program schedules established by the implementing agencies. (d) For the purposes of this section, "implementing agency" has the same definition as that set forth in subdivision (h) of Section 79402. SEC. 38. (a) A Program Timberland Environmental Impact Report (PTEIR) that is funded pursuant to Item 3540-001-6029 of Section 2.00 of the 2004 Budget Act shall only be for a project for hazardous fuel reduction. (b) The removal of trees for hazardous fuel reduction shall be by the method of thinning from below, and shall be limited to trees that are 16 inches or less in diameter at breast height. A practice that reduces crown density on timberlands may be used only for the purpose of affecting fire behavior, and only if it is reasonably demonstrated that the likelihood of crown fire is reduced. (c) A registered professional forester with the Department of Forestry and Fire Protection or on behalf of a private landowner, shall certify both of the following: (1) The fuel reduction objectives were achieved for removal of surface fuels, brush, and ladder fuels, and were accomplished by means that are consistent with this section. (2) For each PTEIR or sub-area within an area covered by a PTEIR, 80 percent or more of the treated landscape will have a posttreatment fuel load that will result in a flame length of four feet or less and a minimum of eight feet separation from the ground to the crown of live trees. (d) For purposes of this section, "hazardous fuel reduction" means the application of practices to wildlands in which the primary impact to vegetation in the wildlands is the reduction of surface and ladder fuels. The practices include, but are not limited to, prescribed fire, and machine or hand piling for burning, pruning, and thinning. SEC. 39. Of the funds available for the purposes of paragraph (1) of subdivision (c) of Section 5096.650 of the Public Resources Code, the sum of seven million eight hundred fifty thousand dollars ($7,850,000) is hereby appropriated from the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Fund, established pursuant to Section 5096.610 of the Public Resources Code, to the Secretary of the Resources Agency, for the purposes of awarding grants pursuant to paragraph (1) of subdivision (c) of Section 5096.650 of the Public Resources Code in accordance with Chapter 3.8 (commencing with Section 5750) of Division 5 of the Public Resources Code. SEC. 40. Of the funds available for the purposes of Section 79541 of the Water Code, the sum of thirty million five hundred thousand dollars ($30,500,000) is hereby appropriated from the Water Security, Clean Drinking Water, Coastal and Beach Protection Fund of 2002, established by Section 79510 of the Water Code, to the Secretary of the Resources Agency for the purposes of awarding grants and program delivery pursuant to Section 79541 of the Water Code in accordance with Chapter 3.8 (commencing with Section 5750) of Division 5 of the Public Resources Code. SEC. 41. Of the funds available to be appropriated pursuant to Section 79544 of the Water Code, nine million one hundred fifty thousand dollars ($9,150,000) is hereby appropriated from the Water Security, Clean Drinking Water, Coastal and Beach Protection Fund of 2002, which is established pursuant to Section 79510 of the Water Code, to the Secretary of the Resources Agency, for the purposes of making grants that are consistent with Section 79544 of the Water Code, pursuant to Section 5819.4 of the Public Resources Code. SEC. 42. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. SEC. 43. 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 provisions of the 2004 Budget Act in a timely manner, it is necessary that this act take effect immediately.