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.