BILL NUMBER: AB 140 CHAPTERED
BILL TEXT
CHAPTER 33
FILED WITH SECRETARY OF STATE MAY 19, 2006
APPROVED BY GOVERNOR MAY 19, 2006
PASSED THE ASSEMBLY MAY 5, 2006
PASSED THE SENATE MAY 4, 2006
AMENDED IN SENATE MAY 4, 2006
INTRODUCED BY Assembly Member Nunez and Senator Perata
JANUARY 13, 2005
An act to add Chapter 1.699 (commencing with Section 5096.800) to
Division 5 of the Public Resources Code, relating to financing
disaster preparedness and flood prevention projects, by providing the
funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 140, Nunez Disaster Preparedness and Flood Prevention Bond Act
of 2006.
Under existing law, various measures have been approved by the
voters to provide funds for water projects, facilities, and programs.
This bill would enact the Disaster Preparedness and Flood
Prevention Bond Act of 2006, which would, if approved by the voters,
authorize the issuance and sale of bonds in the amount of
$4,090,000,000 for the purposes of financing disaster preparedness
and flood prevention projects.
This bill would require the Secretary of State to submit this bond
act to the voters at the November 7, 2006, statewide general
election.
The bill would declare that it is to take effect immediately as an
urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 1.699 (commencing with Section 5096.800) is
added to Division 5 of the Public Resources Code, to read:
CHAPTER 1.699. Disaster Preparedness and Flood Prevention Bond
Act of 2006
Article 1. General Provisions
5096.800. This chapter shall be known and may be cited as the
Disaster Preparedness and Flood Prevention Bond Act of 2006.
Article 2. Definitions
5096.805. Unless the context otherwise requires, the definitions
set forth in this article govern the construction of this chapter.
(a) "Board" means the Reclamation Board or successor entity.
(b) "Committee" means the Disaster Preparedness and Flood
Prevention Bond Finance Committee, created by Section 5096.957.
(c) "Delta" means the area of the Sacramento-San Joaquin Delta as
defined in Section 12220 of the Water Code.
(d) "Department" means the Department of Water Resources.
(e) "Facilities of the State Plan of Flood Control" means the
levees, weirs, channels, and other features of the federal and state
authorized flood control facilities located in the Sacramento and San
Joaquin River drainage basin for which the board or the department
has given the assurances of nonfederal cooperation to the United
States required for the project, and those facilities identified in
Section 8361 of the Water Code.
(f) "Fund" means the Disaster Preparedness and Flood Prevention
Bond Fund of 2006, created by Section 5096.806.
(g) "Project levees" means the levees that are part of the
facilities of the State Plan of Flood Control.
(h) "Restoration" means the improvement of a physical structure or
facility and, in the case of natural system and landscape features
includes, but is not limited to, a project for the control of
erosion, the control and elimination of exotic species, including
prescribed burning, fuel hazard reduction, fencing out threats to
existing or restored natural resources, road elimination, and other
plant and wildlife habitat improvement to increase the natural system
value of the property. A restoration project shall include the
planning, monitoring, and reporting necessary to ensure successful
implementation of the project objectives.
(i) "State General Obligation Bond Law" means the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code).
(j) "State Plan of Flood Control" means the state and federal
flood control works, lands, programs, plans, conditions, and mode of
maintenance and operations of the Sacramento River Flood Control
Project described in Section 8350 of the Water Code, and of flood
control projects in the Sacramento River and San Joaquin River
watersheds authorized pursuant to Article 2 (commencing with Section
12648) of Chapter 2 of Part 6 of Division 6 of the Water Code for
which the board or the department has provided the assurances of
nonfederal cooperation to the United States, which shall be updated
by the department and compiled into a single document entitled "The
State Plan of Flood Control."
(k) "Urban area" means any contiguous area in which more than
10,000 residents are protected by project levees.
Article 3. Disaster Preparedness and Flood Prevention Bond
Fund of 2006
5096.806. The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the Disaster Preparedness and Flood
Prevention Bond Fund of 2006, which is hereby created.
Article 4. Disaster Preparedness and Flood Prevention Program
5096.820. (a) The sum of four billion ninety million dollars
($4,090,000,000) shall be available, upon appropriation therefor, for
disaster preparedness and flood prevention projects pursuant to this
article.
(b) In expending funds pursuant to this article, the Governor
shall do all of the following:
(1) Secure the maximum feasible amounts of federal and local
matching funds to fund disaster preparedness and flood prevention
projects in order to ensure prudent and cost-effective use of these
funds to the extent that this does not prohibit timely implementation
of this article.
(2) Prioritize project selection and project design to achieve
maximum public benefits from the use of these funds.
(3) In connection with the submission of the annual Governor's
Budget, submit an annual Bond Expenditure Disaster Preparedness and
Flood Prevention Plan that describes in detail the proposed
expenditures of bond funds, the amount of federal appropriations and
local funding obtained to fund disaster preparedness and flood
prevention projects to match those expenditures, and an investment
strategy to meet long-term flood protection needs and minimize state
taxpayer liabilities from flooding.
5096.821. Three billion dollars ($3,000,000,000) shall be
available, upon appropriation to the department, for the following
purposes:
(a) The evaluation, repair, rehabilitation, reconstruction, or
replacement of levees, weirs, bypasses, and facilities of the State
Plan of Flood Control by all of the following actions:
(1) Repairing erosion sites and removing sediment from channels or
bypasses.
(2) Evaluating and repairing levees and any other facilities of
the State Plan of Flood Control.
(3) Implementing mitigation measures for a project undertaken
pursuant to this subdivision. The department may fund participation
in a natural community conservation plan pursuant to Chapter 10
(commencing with Section 2800) of Division 3 of the Fish and Game
Code to facilitate projects authorized by this subdivision.
(b) Improving or adding facilities to the State Plan of Flood
Control to increase levels of flood prevention for urban areas,
including all related costs for mitigation and infrastructure
relocation. Funds made available by this subdivision may be expended
for state financial participation in federal and state authorized
flood control projects, feasibility studies and design of federal
flood damage reduction and related projects, and reservoir
reoperation and groundwater flood storage projects. Not more than two
hundred million dollars ($200,000,000) may be expended on a single
project, excluding authorized flood control improvements to Folsom
Dam.
(c) (1) To reduce the risk of levee failure in the delta.
(2) The funds made available for the purpose specified in
paragraph (1) shall be expended for both of the following purposes:
(A) Local assistance under the delta levee maintenance subventions
program under Part 9 (commencing with Section 12980) of Division 6
of the Water Code, as that part may be amended.
(B) Special flood protection projects under Chapter 2 (commencing
with Subdivision 12310) of Part 4.8 of Division 6 of the Water Code,
as that chapter may be amended.
5096.824. (a) Five hundred million dollars ($500,000,000) shall
be available, upon appropriation to the department, for payment for
the state's share of the nonfederal costs, and related costs, of
flood control and flood prevention projects authorized under any of
the following:
(1) The State Water Resources Law of 1945 (Chapter 1 (commencing
with Section 12570) and Chapter 2 (commencing with Section 12639) of
Part 6 of Division 6 of the Water Code).
(2) The Flood Control Law of 1946 (Chapter 3 (commencing with
Section 12800) of Part 6 of Division 6 of the Water Code).
(3) The California Watershed Protection and Flood Prevention Law
(Chapter 4 (commencing with Section 12850) of Part 6 of Division 6 of
the Water Code).
(b) The costs described in subdivision (a) include costs incurred
in connection with either of the following:
(1) The granting of credits or loans to local agencies, as
applicable, pursuant to Sections 12585.3, 12585.4 of, subdivision (d)
of Section 12585.5 of, and Sections 12866.3 and 12866.4 of, the
Water Code.
(2) The implementation of Chapter 3.5 (commencing with Section
12840) of Part 6 of Division 6 of the Water Code.
(c) The funds made available by this section shall be allocated
only to projects that are not part of the State Plan of Flood
Control.
5096.825. Two hundred ninety million dollars ($290,000,000) shall
be available, upon appropriation, for the protection, creation, and
enhancement of flood protection corridors and bypasses through any of
the following actions:
(a) Acquiring easements and other interests in real property to
protect or enhance flood protection corridors and bypasses while
preserving or enhancing the agricultural use of the real property.
(b) Constructing new levees necessary for the establishment of a
flood protection corridor or bypass.
(c) Setting back existing flood control levees, and in conjunction
with undertaking those setbacks, strengthening or modifying existing
levees and weirs.
(d) Relocating or flood proofing structures necessary for the
establishment of a flood protection corridor.
(e) Acquiring interests in, or providing incentives for
maintaining agricultural uses of, real property that is located in a
flood plain that cannot reasonably be made safe from future flooding.
(f) Acquiring easements and other interests in real property to
protect or enhance flood protection corridors while preserving or
enhancing the wildlife value of the real property.
(g) Flood plain mapping and related activities, including both of
the following:
(1) The development of flood hazard maps, including all necessary
studies and surveys.
(2) Alluvial fan flood plain mapping.
5096.827. Three hundred million dollars ($300,000,000) shall be
available, upon appropriation to the department, for grants for
stormwater flood management projects that meet all of the following
requirements:
(a) Have a nonstate cost share of not less than 50 percent.
(b) Are not part of the State Plan of Flood Control.
(c) Are designed to manage stormwater runoff to reduce flood
damage and where feasible, provide other benefits, including
groundwater recharge, water quality improvement, and ecosystem
restoration.
(d) Comply with applicable regional water quality control plans.
(e) Are consistent with any applicable integrated regional water
management plan.
5096.828. Funds provided by this article are only available for
appropriation until July 1, 2016, and at that time the amount of
indebtedness authorized by this chapter shall be reduced by the
amount of funds provided by this article that have not been
appropriated.
Article 16. Program Expenditures
5096.953. The Secretary of the Resources Agency shall provide for
an independent audit of expenditures pursuant to this chapter to
ensure that all moneys are expended in accordance with the
requirements of this chapter. The secretary shall publish a list of
all program and project expenditures pursuant to this chapter not
less than annually, in written form, and shall post an electronic
form of the list on the Resources Agency's Internet Web site.
Article 17. Fiscal Provisions
5096.955. (a) Bonds in the total amount of four billion ninety
million dollars ($4,090,000,000), not including the amount of any
refunding bonds issued in accordance with Section 5096.966, or so
much thereof as is necessary, may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
chapter and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute valid and binding
obligations of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual
payment of both principal of, and interest on, the bonds as the
principal and interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
5096.956. The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law, and all of the provisions of that law
apply to the bonds and to this chapter and are hereby incorporated in
this chapter as though set forth in full in this chapter.
5096.957. (a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of the
bonds authorized by this chapter, the Disaster Preparedness and Flood
Prevention Bond Finance Committee is hereby created. For the
purposes of this chapter, the Disaster Preparedness and Flood
Prevention Bond Finance Committee is "the committee" as that term is
used in the State General Obligation Bond Law. The committee consists
of the Controller, the Director of Finance, and the Treasurer, or
their designated representatives. The Treasurer shall serve as
chairperson of the committee. A majority of the committee may act for
the committee.
(b) For purposes of the State General Obligation Bond Law, the
department is designated the "board."
5096.958. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter to carry out this chapter and, if so, the amount of bonds to
be issued and sold. Successive issues of bonds may be authorized and
sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.
5096.959. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year, and it is the duty of all officers charged by law with any duty
in regard to the collection of the revenue to do and perform each
and every act which is necessary to collect that additional sum.
5096.960. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum that is necessary to carry out Section 5096.963,
appropriated without regard to fiscal years.
5096.961. The department may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account, in
accordance with Section 16312 of the Government Code, for the purpose
of carrying out this chapter. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this chapter. The department shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the loan.
Any amounts loaned shall be deposited in the fund to be allocated by
the department in accordance with this chapter.
5096.962. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal tax
purposes under designated conditions, the Treasurer may maintain
separate accounts for the bond proceeds invested and for the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
5096.963. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for the
purpose of carrying out this chapter. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund, with interest at the rate
earned by the money in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying
out this chapter.
5096.964. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold pursuant to this chapter
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.
5096.965. Pursuant to Chapter 4 (commencing with Section 16720)
of Part 3 of Division 4 of Title 2 of the Government Code, the cost
of bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.
5096.966. The bonds issued and sold pursuant to this chapter may
be refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of the
bonds under this chapter shall include approval of the issuance of
any bonds issued to refund any bonds originally issued under this
chapter or any previously issued refunding bonds.
5096.967. The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by this
chapter are not "proceeds of taxes" as that term is used in Article
XIII B of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.
SEC. 2. (a) Section 1 of this act shall become operative upon the
adoption by the voters of the Disaster Preparedness and Flood
Prevention Bond Act of 2006, as set forth in Section 1 of this act.
SEC. 3. Notwithstanding Sections 13115 and 13117 of the Elections
Code, the following measures shall be placed on the ballot for the
November 7, 2006, statewide general election in the following order:
(a) Senate Constitutional Amendment No. 7 of the 2005-06 Regular
Session shall be placed first on the ballot and shall be designated
as Proposition 1A.
(b) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 shall be placed second on the ballot and
shall be designated as Proposition 1B.
(c) The Housing and Emergency Shelter Trust Fund Act of 2006 shall
be placed third on the ballot and shall be designated as Proposition
1C.
(d) The Kindergarten-University Public Education Facilities Bond
Act of 2006 shall be placed fourth on the ballot and shall be
designated as Proposition 1D.
(e) The Disaster Preparedness and Flood Prevention Bond Act of
2006 shall be placed fifth on the ballot and shall be designated as
Proposition 1E.
SEC. 4. (a) Notwithstanding any other provision of law, all
ballots of the November 7, 2006, statewide general election shall
have printed thereon and in a square thereof, exclusively, the words:
"Disaster Preparedness and Flood Prevention Bond Act of 2006" and in
the same square under those words, the following in 8-point type:
"This act rebuilds and repairs California's most vulnerable flood
control structures to protect homes and prevent loss of life from
flood-related disasters, including levee failures, flash floods, and
mudslides; it protects California's drinking water supply system by
rebuilding delta levees that are vulnerable to earthquakes and
storms; by authorizing a $4.09 billion dollar bond act."
Opposite the square, there shall be left spaces in which the
voters may place a cross in the manner required by law to indicate
whether they vote for or against the act.
(b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
(c) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choices by means thereof are in compliance
with this section.
SEC. 5. 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 provide for the submission of Section 1 of this act to
the voters at the November 7, 2006, statewide general election, and
to provide for improved disaster preparedness and flood prevention,
as soon as possible, it is necessary that this act take effect
immediately.