BILL NUMBER: SB 334 CHAPTERED 08/04/03 CHAPTER 192 FILED WITH SECRETARY OF STATE AUGUST 4, 2003 APPROVED BY GOVERNOR AUGUST 3, 2003 PASSED THE ASSEMBLY JULY 24, 2003 PASSED THE SENATE MAY 29, 2003 AMENDED IN SENATE APRIL 30, 2003 AMENDED IN SENATE APRIL 21, 2003 INTRODUCED BY Senator Romero (Coauthor: Senator Margett) (Coauthors: Assembly Members Chavez and Chu) FEBRUARY 19, 2003 An act to amend Sections 605, 705, and 706 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), relating to water. LEGISLATIVE COUNSEL'S DIGEST SB 334, Romero. San Gabriel Basin Water Quality Authority. (1) Existing law, the San Gabriel Basin Water Quality Authority Act, establishes the San Gabriel Basin Water Quality Authority and provides for its powers and duties. Existing law requires the State Water Resources Control Board, on or before January 1, 2004, and in consultation with the Los Angeles Regional Water Quality Control Board, to report to the Legislature on the progress of the authority relating to groundwater management and other actions undertaken by the authority. Existing law, with certain exceptions, repeals the act on July 1, 2005. Existing law authorizes the authority to impose an annual pumping right assessment, not to exceed $13 per acre-foot, to construct facilities and acquire property, and for other purposes. This bill would delete the consultation requirement relating to the report. The bill would change the repeal date to July 1, 2010, thereby imposing a state-mandated local program by extending the period of time in which the authority and other local public entities are required to carry out various duties under the act. The bill would authorize the authority to impose that annual pumping right assessment in an amount that does not exceed $10 per acre-foot. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 605 of the San Gabriel Basin Water Quality Act (Chapter 776 of the Statutes of 1992) is amended to read: Sec. 605. The authority may impose an annual pumping right assessment, not to exceed ten dollars ($10) per acre-foot, to construct facilities and acquire property, to retire promissory notes, bond anticipation notes, bonds and certificate of participation and other evidences of indebtedness, to pay for administrative costs, and to pay for operations and maintenance of projects constructed by and for the authority. The authority shall impose an assessment pursuant to this section for operation and maintenance purposes only if, and to the extent that, money for operation and maintenance purposes is not received from other sources after reasonable efforts have been made to secure that funding. However, no assessment shall be imposed for water extracted pursuant to a conjunctive use storage agreement between the producer and the watermaster, which the authority has approved. SEC. 2. Section 705 of the San Gabriel Water Basin Quality Act (Chapter 776 of the Statutes of 1992) is amended to read: Sec. 705. On or before January 1, 2004, the State Water Resources Control Board shall report to the Legislature on the progress of the authority with regard to actions undertaken pursuant to Article 4 (commencing with Section 401), and any recommendations regarding actions for improving the progress of the authority. SEC. 3. Section 706 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992) is amended to read: Sec. 706. (a) Except as provided in this section, this act shall remain in effect only until July 1, 2010, and as of that date is repealed, unless a later enacted statute, which is enacted before July 1, 2010, deletes or extends that date. (b) Upon the repeal of this act, the assets and debts of the authority shall be administered as follows: (1) The Los Angeles Regional Water Quality Control Board shall dispose of the property and assets as appropriate. The Los Angeles Regional Water Quality Control Board shall receive reimbursement for actual costs incurred related to the disposition of the property and assets. The cost recovery shall be from the proceeds of the disposition pursuant to this section. The proceeds, if any, of the disposition shall be transferred to the Treasurer to be applied to pay the debts of the authority and, if any proceeds remain, shall be transferred to the Treasurer for deposit in the Hazardous Substance Cleanup Fund for use in financing groundwater contamination investigation and remediation in the basin. Preference shall be given in the disposition of assets of the authority to transfers to producers who may be able to use the assets for the benefit of water distribution systems and to provide for continued operation and maintenance of the assets in order to further the purposes of this act. (2) The Treasurer shall administer the payment of debts of the authority. The Treasurer shall apply the proceeds from the disposition of assets to the payment of the debts. If debts remain after application of the proceeds from disposition of assets, the Treasurer may continue to collect, in lieu of the authority, the pumping right assessments authorized under either (A) Section 602 if the debt relates to administrative costs or (B) Section 605 if the debt is to repay warrants, notes, bonds, and other evidences of indebtedness, or both, to make payments pursuant to leases or installment sale agreements in connection with certificates of participation, to pay for operation and maintenance costs of facilities, and to make payments pursuant to any other financial obligations. All provisions set forth in Article 6 (commencing with Section 601) relating to the levy and collection of the pumping right assessments are not repealed and shall continue in effect until the debts of the authority are paid, as determined by the Treasurer, who shall notify the Secretary of State. Upon receipt by the Secretary of State of the Treasurer's notice, Article 6 (commencing with Section 601) is repealed. The Treasurer's authority to levy and collect assessments under this act is limited according to the provisions of this act and shall cease when all debts of the authority have been paid. SEC. 4. 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 are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIII B of the California Constitution.