BILL NUMBER: AB 1165	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 15, 2009

INTRODUCED BY   Assembly Member  Tom Berryhill  
Yamada 

                        FEBRUARY 27, 2009

    An act to amend Section 12986 of the Water Code, relating
to levees.   An act to amend Section 65007 of the
Government Code, and to amend Sections 8501, 8502, 8559, 8560,
8610.5, and 8709.4 of, to add Sections 8709.5, 8709.6, and 8709.7 to,
to repeal Sections 8562 and 8577 of, and to repeal and amend
Sections 8522.3, 8522.5, 8523, and 8578 of, the Water Code, relating
to flood protection. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1165, as amended,  Tom Berryhill   Yamada
 .  Water: delta levee maintenance.   Flood
protection.  
   (1) Existing law prohibits the legislative body of a city or
county within the Sacramento-San Joaquin Valley, after the adoption
of specified amendments to the applicable general plan or zoning
ordinance, from entering into a development agreement for property
that is located within a flood hazard zone, unless the legislative
body makes one of several possible determinations, one of which is a
determination that the local flood management agency has made
adequate progress on the construction of a flood protection system.
Existing law, after the adoption of those amendments, also conditions
the approval of a discretionary entitlement or ministerial permit
that would result in the construction of a new residence for a
project that is located within a flood hazard zone, and the approval
of a tentative map, or a parcel map as specified, for a subdivision
that is located within a flood hazard zone, upon the legislative body
making one of several possible determinations, one of which is a
determination that the local flood management agency has made
adequate progress on the construction of a flood protection system.
Existing law defines "adequate progress" to mean, among other things,
that the revenues sufficient to fund each year of the project
schedule for the flood protection system have been identified, and
that at least 90% of the revenues scheduled to have been received in
any given year have been appropriated and are being expended. 

   This bill, for the purpose of those provisions, would authorize
the Central Valley Flood Protection Board (board) to find that the
local flood management agency is making adequate progress in working
toward the completion of the flood protection system for any year in
which state funding is not appropriated consistent with an agreement
between a state agency and the local flood management agency.
   (2) Under existing law, the Department of Water Resources performs
various flood management activities throughout the state, and the
board engages in flood management activities along the Sacramento
River and San Joaquin River, their tributaries, and related areas.
Existing law establishes the Sacramento and San Joaquin Drainage
District under the administration of the board for the purposes of
carrying out specified flood management activities within the
boundaries of the district. Existing law requires the board, in any
evidentiary hearing, to consider various matters, including the
effects of a proposed action on the State Plan of Flood Control, as
defined.
   This bill would require the department to prepare and the board to
adopt a map that clearly delineates the boundaries of the Sacramento
and San Joaquin Drainage District. The board would be required to
make the map available to the public at no charge. The bill would
revise the definition of the State Plan of Flood Control for these
and other purposes.
   (3) Existing law provides that a majority of the board constitutes
a quorum and declares that no board action is effective unless the
action is concurred in by a majority of the board members.
   This bill, instead, would provide that a majority of the voting
members of the board constitutes a quorum and would declare that no
board action is effective unless a quorum is present and the action
is concurred in by a majority of those members voting and present.
   (4) Under existing law, any meeting of the board, at its office,
when all of the members are present, is a legal meeting at which any
business may be transacted.
   This bill would repeal that provision.
   (5) Existing law prohibits a board member or any person or
organization with an interest in board decisions, or any person
representing a person or organization with an interest in board
decisions who intends to influence the decision of a board member on
a matter before the board, from conducting an ex parte communication,
as defined.
   This bill would revise the definition of the term "ex parte
communication" to mean any oral or written communication outside of a
noticed board meeting concerning specified matters. The bill would
prohibit a board member appointed by the Governor from participating
in an ex parte communication with any person or organization with an
interest in board decisions, or any person representing a person or
organization with an interest in board decisions who intends to
influence the decision of a board member on a matter before the
board.
   (6) Existing law requires the board to hold an evidentiary hearing
for any matter that requires the issuance of a permit.
   This bill would require the board to hold an evidentiary hearing
for any matter that requires the issuance of a permit if the proposed
work may significantly affect any element of the State Plan of Flood
Control or if a formal protest against that permit has been lodged.
The bill would authorize the board to, by regulation, define types of
encroachments that will not significantly affect any element of the
State Plan of Flood Control. The bill would authorize the board to
delegate the approval of permits for those encroachments to the
executive officer.  
   (7) Existing law requires the board to make a specified finding
regarding the impact of an encroachment on public safety before
taking action to modify an encroachment on levees, channels, or other
flood control works.  
   This bill would authorize the board to delegate to the executive
officer the authority to take action to remove or modify the
encroachment. The bill would authorize the board, and the executive
officer if delegated that authority, to issue an order directing a
person or public agency to cease and desist from undertaking, or
threatening to undertake, an activity that may encroach on levees,
channels, or other flood control works under the jurisdiction of the
board. The board, and the executive officer if delegated that
authority, would be granted authority to issue an order directing a
person or public agency to cease and desist from undertaking, or
threatening to undertake, an activity that requires a permit from the
board without securing a permit or an activity that is inconsistent
with a permit issued by the board. The bill would authorize the
imposition of civil liability on a person or public agency that
undertakes an encroachment or commits other action in violation of
specified requirements relating to encroachments to provisions
relating to the board.  
   (8) The bill would make various technical corrections. 

   Existing law establishes a delta levee maintenance program
pursuant to which a local agency may request reimbursement for costs
incurred in connection with the maintenance or improvement of project
or nonproject levees in the Sacramento-San Joaquin Delta. Existing
law declares legislative intent to reimburse eligible local agencies
under this program, until July 1, 2010, in an amount not to exceed
75% of those costs that are incurred in excess of $1,000 per mile of
levee, and repeals that statement of legislative intent on January 1,
2011. Existing law declares legislative intent to reimburse 50% of
those described costs on and after July 1, 2010.  
   This bill, with respect to the statement of legislative intent to
reimburse 75% of the described costs, would extend the inoperative
date to July 1, 2015, and the repeal date to January 1, 2016. The
bill would make the statement of legislative intent to reimburse 50%
of the described costs operative on July 1, 2015. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SE   CTION 1.    Section 65007 of the 
 Government Code   is amended to read: 
   65007.  As used in this title, the following terms have the
following meanings, unless the context requires otherwise:
   (a) "Adequate progress" means all of the following:
   (1) The total project scope, schedule, and cost of the completed
flood protection system have been developed to meet the appropriate
standard of protection.
   (2)  (A)    Revenues  that are 
sufficient to fund each year of the project schedule developed in
paragraph (1) have been identified and, in any given year and
consistent with that schedule, at least 90 percent of the revenues
scheduled to have been received by that year have been appropriated
and are currently being expended. 
   (B) Notwithstanding subparagraph (A), for any year in which state
funding is not appropriated consistent with an agreement between a
state agency and a local flood management agency, the Central Valley
Flood Protection Board may find that the local flood management
agency is making adequate progress in working toward the completion
of the flood protection system. 
   (3) Critical features of the flood protection system are under
construction, and each critical feature is progressing as indicated
by the actual expenditure of the construction budget funds.
   (4) The city or county has not been responsible for a significant
delay in the completion of the system.
   (5) The local flood management agency shall provide the Department
of Water Resources and the Central Valley Flood Protection Board
with the information specified in this subdivision sufficient to
determine substantial completion of the required flood protection.
The local flood management agency shall annually report to the
Central Valley Flood Protection Board on the efforts in working
toward completion of the flood protection system.
   (b) "Central Valley Flood Protection Plan" has the same meaning as
that set forth in Section 9612 of the Water Code.
   (c) "Developed area" has the same meaning as that set forth in
Section 59.1 of Title 44 of the Code of Federal Regulations.
   (d) "Flood hazard zone" means an area subject to flooding that is
delineated as either a special hazard area or an area of moderate
hazard on an official flood insurance rate map issued by the Federal
Emergency Management Agency. The identification of flood hazard zones
does not imply that areas outside the flood hazard zones, or uses
permitted within flood hazard zones, will be free from flooding or
flood damage.
   (e) "Nonurbanized area" means a developed area or an area outside
a developed area in which there are fewer than 10,000 residents.
   (f) "Project levee" means any levee that is part of the facilities
of the State Plan of Flood Control.
   (g) "Sacramento-San Joaquin Valley" means lands in the bed or
along or near the banks of the Sacramento River or San Joaquin River,
or their tributaries or connected therewith, or upon any land
adjacent thereto, or within the overflow basins thereof, or upon land
susceptible to overflow therefrom. The Sacramento-San Joaquin Valley
does not include lands lying within the Tulare Lake basin, including
the Kings River.
   (h) "State Plan of Flood Control" has the same meaning as that set
forth in subdivision (j) of Section 5096.805 of the Public Resources
Code.
   (i) "Urban area" means a developed area in which there are 10,000
residents or more.
   (j) "Urbanizing area" means a developed area or an area outside a
developed area that is planned or anticipated to have 10,000
residents or more within the next 10 years.
   (k) "Urban level of flood protection" means the level of
protection that is necessary to withstand flooding that has a
1-in-200 chance of occurring in any given year using criteria
consistent with, or developed by, the Department of Water Resources.
   SEC. 2.    Section 8501 of the   Water Code
  is amended to read: 
   8501.   (a)    The boundaries of the district
are set forth and described in Chapter 170  , Statutes and
Amendments to the Codes, California,   of the Statutes
of  1913, and the description is hereby incorporated herein by
reference as  there  set  out  
forth in that chapter  . 
   (b) The department shall prepare, and the Central Valley Flood
Protection Board shall adopt, a map that clearly delineates the
boundaries of the district. The board shall make the map available to
the public at no charge. 
   SEC. 3.    Section 8502 of the   Water Code
  is amended to read: 
   8502.  The management and control of the district are vested in
the  reclamation board   Central Valley Flood
Protection Board  .
   SEC. 4.    Section 8522.3 of the   Water
Code   , as added by Section 4 of Chapter 365 of the
Statutes of 2007, is repealed.  
   8522.3.  "Facilities of the State Plan of Flood Control" means the
levees, weirs, channels, and other features of the State Plan of
Flood Control. 
   SEC. 5.    Section 8522.3 of the   Water
Code  , as added by Section 8 of Chapter 366 of the Statutes
of 2007, is amended to   read: 
   8522.3.  "Facilities of the State Plan of Flood Control" 
means the levees, weirs, channels, and other features of the State
Plan of Flood Control   has the same meaning as that set
forth in subdivision (e) of Section 5096.805 of the Public Resources
Code .
   SEC. 6.    Section 8522.5 of the   Water
Code   , as added by Section 5 of Chapter 365 of the
Statutes of 2007, is repealed.  
   8522.5.  "Project levee" means any levee that is a part of the
facilities of the State Plan of Flood Control. 
   SEC. 7.    Section 8522.5 of the   Water
Code   , as added by Section 9 of Chapter 366 of the
Statutes of 2007, is amended to   read: 
   8522.5.  "Project levee"  means any levee that is a part
of the facilities of the State Plan of Flood Control  
has the same meaning as that set forth in subdivision (g) of Section
5096.805 of the Public Resources Code  .
   SEC. 8.    Section 8523 of the   Water Code
  , as added by Section 6 of Chapter 365 of the Statutes of
2007, is repealed.  
   8523.  "State Plan of Flood Control" means the state and federal
flood control works, lands, programs, plans, policies, conditions,
and mode of maintenance and operations of the Sacramento River Flood
Control Project described in Section 8350, 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 for which the board or the
department has provided the assurances of nonfederal cooperation to
the United States, and those facilities identified in Section 8361.

   SEC. 9.    Section 8523 of the   Water Code
  , as added by Section 10 of Chapter 366 of the Statutes of
2007, is amended to   read: 
   8523.  "State Plan of Flood Control"  means the state and
federal flood control works, lands, programs, plans, policies,
conditions, and mode of maintenance and operations of the Sacramento
River Flood Control Project described in Section 8350, 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 for which the board or
the department has provided the assurances of nonfederal cooperation
to the United States, and those facilities identified in Section 8361
  has the same meaning as that set forth in subdivision
(j) of Section 5096.805 of the Public Resources   Code
 .
   SEC. 10.    Section 8559 of the   Water Code
  is amended to read: 
   8559.  A majority of the  voting members of the  board
constitutes a quorum.
   SEC. 11.    Section 8560 of the   Water Code
  is amended to read: 
   8560.  No action of the board shall be effective unless 
it   a quorum is present and the action  is
concurred in by a majority of  the members of the board
  those members present and voting  .
   SEC. 12.    Section 8562 of the   Water Code
  is repealed.  
   8562.  Any meeting of the board, at its office, when all of the
members are present, is a legal meeting at which any business may be
transacted. 
   SEC. 13.    Section 8577 of the   Water Code
  , as added by Section 12 of Chapter 365 of the Statutes
of 2007, is repealed.  
   8577.  (a) A board member shall not participate in any board
action or attempt to influence any decision or recommendation by any
employee of, or consultant to, the board that involves himself or
herself or that involves any entity with which the member is
connected as a director, officer, consultant, or full- or part-time
employee, or in which the member has a direct personal financial
interest within the meaning of Section 87100 of the Government Code.
   (b) A board member shall not participate in any proceeding before
any agency as a consultant or in any other capacity on behalf of any
person that actively participates in matters before the board.
   (c) For a period of 12 months after leaving office, a former board
member shall not act as agent or attorney for, or otherwise
represent, any other person before the board by making any formal or
informal appearance or by making any oral or written communication to
the board.
   (d) A board member shall not advocate to the United States Army
Corps of Engineers or other federal agency on behalf of any project
that has been or is reasonably anticipated to be submitted to the
board for review, unless the board authorizes that action in
accordance with Section 8560. 
   SEC. 14.    Section 8578 of the   Water Code
  , as added by Section 13 of Chapter 365 of the Statutes
of 2007, is repealed.  
   8578.  (a) For the purposes of this section, "ex parte
communication" means any oral or written communication concerning
matters, other than purely procedural matters, under the board's
jurisdiction that are subject to a vote.
   (b) (1) A board member or any person, excluding a staff member of
the board acting in his or her official capacity, who intends to
influence the decision of a board member on a matter before the
board, shall not conduct an ex parte communication.
   (2) If an ex parte communication occurs, the board member shall
notify the interested party that a full disclosure of the ex parte
communication shall be entered in the board's record.
   (3) Communications cease to be ex parte communications when the
board member or the person who engaged in the communication with the
board member fully discloses the communication and requests in
writing that it be placed in the board's official record of the
proceeding.
   (c) Notwithstanding Section 11425.10 of the Government Code, the
ex parte communications provisions of the Administrative Procedure
Act (Article 7 (commencing with Section 11430.10) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of the Government Code) do not apply
to proceedings of the board to which this section applies. 
   SEC. 15.    Section 8578 of the   Water Code
  , as added by Section 17 of Chapter 366 of the Statutes
of 2007, is amended to   read: 
   8578.  (a) For the purposes of this section, "ex parte
communication" means any oral or written communication  outside
of a noticed board   meeting  concerning matters, other
than purely procedural matters,  under the board's
jurisdiction that are subject to a vote.   regarding any
of the following:  
   (1) An application that has been submitted to the board and has
been determined to be complete by the executive officer.  
   (2) An enforcement action.  
   (3) Any other quasi-judicial matter requiring board action, after
the matter has been placed on the board's agenda and notice of the
meeting has been provided pursuant to Section 11125 of the Government
Code. 
   (b) (1) No board member  nor any person  
appointed pursuant to subdivision (b) of Section 8551 shall
participate in an ex parte communication with any person  or
organization with an interest in board decisions, nor any person
representing a person or organization with an interest in board
decisions, excluding a staff member of the board acting in his or her
official capacity, who intends to influence the decision of a board
member on a matter before the board  , shall conduct an ex
parte communication  .
   (2) If an ex parte communication occurs, the board member shall
notify the interested party that a full disclosure of the ex parte
communication shall be entered in the board's record.
   (3) Communications cease to be ex parte communications when the
board member or the person who engaged in the communication with the
board member fully discloses the communication and requests in
writing that it be placed in the board's official record of the
proceeding.
   (c) Notwithstanding Section 11425.10 of the Government Code, the
ex parte communications provisions of the Administrative Procedure
Act (Article 7 (commencing with Section 11430.10) of Chapter 4.5 of
Part 1 of Division 3 of Title 2 of the Government Code) do not apply
to proceedings of the board to which this section applies.
   SEC. 16.    Section 8610.5 of the   Water
Code   is amended to read: 
   8610.5.  (a) (1) The board shall adopt regulations relating to
evidentiary hearings pursuant to Chapter 4.5 (commencing with Section
11400) of Part 1 of Division 3 of Title 2 of the Government Code.

   (2) The board shall hold an evidentiary hearing for any matter
that requires the issuance of a permit.  
   (2) The board shall hold an evidentiary hearing for any matter
that requires the issuance of a permit if the proposed work may
significantly affect any element of the State Plan of Flood Control
or if a formal protest against that permit has been lodged. 

   (3) The board may, by regulation, define types of encroachments
that will not significantly affect any element of the State Plan of
Flood Control. Evidentiary hearings are not required for uncontested
applications for those defined encroachments unless, in the judgment
of the executive officer, there is a reasonable possibility that the
project will have a significant effect on an adopted plan of flood
control.  
   (4) The board may delegate approval of permits for encroachments
that will not significantly affect any element of the State Plan of
Flood Control to the executive officer.  
   (3) 
    (5)  The board is not required to hold an evidentiary
hearing before making a decision relating to general flood protection
policy or planning.
   (b) The board may take an action pursuant to Section 8560 only
after allowing for public comment.
   (c) The board shall, in any evidentiary hearing, consider all of
the following, as applicable, for the purpose of taking any action
pursuant to Section 8560:
   (1) Evidence that the board admits into its record from any party,
state or local public agency, or nongovernmental organization with
expertise in flood or flood plain management.
   (2) The best available science that relates to the scientific
issues presented by the executive officer, legal counsel, the
department, or other parties that raise credible scientific issues.
   (3) Effects of the proposed decision on the entire State Plan of
Flood Control.
   (4) Effects of reasonably projected future events, including, but
not limited to, changes in hydrology, climate, and development within
the applicable watershed.
   SEC. 17.    Section 8709.4 of the   Water
Code   is amended to read: 
   8709.4.  (a) Before taking action to remove or modify
encroachments   an encroachment  on levees,
channels, and other flood control works pursuant to powers granted by
this part  , a permit,  or standards adopted pursuant to
this part, the board shall make one of the following findings, based
on substantial evidence, regarding the encroachment's impact on
public safety:
   (1) The encroachment presents an imminent threat to the structural
integrity of the levee, channel, or other flood control work.
   (2) The encroachment significantly impairs the functional
capability of the levee, channel, or other flood control work to
fulfill its particular intended role in the overall flood control
plan.
   (b) Routine maintenance that includes the removal or modification
of fences, gates, and vegetation on the levee structure and other
flood control structures is not subject to subdivision (a). 
   (c) The board may delegate authority to the executive officer to
take action to remove or modify encroachments on levees, channels,
and other flood control works in accordance with subdivision (a).

   SEC. 18.    Section 8709.5 is added to the  
Water Code   , to read:  
   8709.5.  (a) Notwithstanding Section 8709 or 8709.4, if the board,
or the executive officer if delegated authority by the board,
determines that any person or public agency has undertaken, or is
threatening to undertake, any activity that may encroach on levees,
channels, or other flood control works under the jurisdiction of the
board, the board or executive officer may issue an order directing
that person or public agency to cease and desist. The order may also
be issued to enforce any requirement of a permit or any requirement
under this part that is subject to the jurisdiction of the board.
   (b) The cease and desist order shall be issued only if the person
or public agency has failed to respond in a satisfactory manner to an
oral notice given in person or by telephone, followed by a written
confirmation, or a written notice given by certified mail or hand
delivered to the landowner or the person performing the activity. The
notice shall include the following:
   (1) A description of the activity which meets the criteria of
subdivision (a) of Section 8709.4 or a statement that the described
activity constitutes an encroachment that is in violation of this
article because it is not authorized by a valid permit.
   (2) A statement that the described activity shall immediately
cease or the alleged violator may receive a cease and desist order,
the violation of which may subject the violator to fines or
penalties.
   (3) The name, address, and telephone number of the staff member
who is to be contacted for further information.
   (c) The cease and desist order may be subject to terms and
conditions as the board or the executive officer may determine are
necessary to avoid an unreasonable impact on public safety.
   (d) The cease and desist order shall be effective upon its
issuance, and copies shall be served immediately by certified mail
upon the person or agency subject to the order. 
   SEC. 19.    Section 8709.6 is added to the  
Water Code   , to read:  
   8709.6.  (a) If the board, after public hearing, determines that
any person or public agency has undertaken, or is threatening to
undertake, any activity that requires a permit from the board without
securing a permit or is inconsistent with any permit previously
issued by the board, the board may issue an order directing that
person or public agency to cease and desist. The board may also issue
the order to enforce any requirement of a permit, or any requirement
of this part that is subject to the jurisdiction of the board.
   (b) The cease and desist order may be subject to terms and
conditions as the board may determine are necessary to ensure
compliance with this part, including immediate removal of any
encroachment or the setting of a schedule within which action shall
be taken to obtain a permit pursuant to this part.
   (c) Notice of the public hearing on a proposed cease and desist
order shall be given to any affected person and public agency and the
order shall be final and effective upon the issuance of the order.
Copies shall be served immediately by certified mail upon the person
or public agency subject to the order and upon other affected persons
and public agencies that appear at the hearing or request a copy.
   (d) In addition to any other authority to order restoration, the
board may, after a public hearing, order restoration of a site if it
finds that an encroachment has occurred without a permit from the
board. 
   SEC. 20.    Section 8709.7 is added to the  
Water Code   , to read:  
   8709.7.  (a) Any person or public agency that violates any
provision of this article may be civilly liable in accordance with
this section.
   (b) (1) Civil liability may be imposed by the superior court in
accordance with this article on any person or public agency that
performs or undertakes an encroachment that is in violation of this
article or that is inconsistent with any permit previously issued by
the board in an amount that shall not exceed thirty thousand dollars
($30,000), but shall not be less than five hundred dollars ($500).
   (2) Civil liability may be imposed for any violation of this part
other than that specified in paragraph (1) in an amount that shall
not exceed thirty thousand dollars ($30,000).
   (c) Any person or public agency that performs or undertakes an
encroachment that is in violation of this part or in a manner that is
inconsistent with any permit previously issued by the board, when
the person or public agency intentionally and knowingly performs or
undertakes the encroachment in violation of this part or in a manner
that is inconsistent with any previously issued permit, may, in
addition to any other penalties, be civilly liable in accordance with
this subdivision. Civil liability may be imposed by the superior
court in accordance with this article for a violation described in
this subdivision in an amount that shall not be less than one
thousand dollars ($1,000), nor more than fifteen thousand dollars
($15,000), per day for each day in which the violation persists.
   (d) In determining the amount of civil liability, the following
factors shall be considered:
   (1) The nature, circumstance, extent, and gravity of the
violation.
   (2) Whether the violation is susceptible to restoration or other
remedial measures.
   (3) The function of the levee, channel, or other flood control
work affected by the violation.
   (4) The cost to the state of bringing the action.
   (5) With respect to the violator, any voluntary restoration or
remedial measures undertaken, any prior history of violations, the
degree of culpability, economic profits, if any, resulting from, or
expected to result as a consequence of, the violation, and other
matters the board deems relevant.
   (e) Any person or public agency that intentionally or negligently
violates any cease and desist order issued, reissued, or amended by
the board, or any restoration order issued, reissued, or amended by
the board may be liable civilly in an amount that shall not exceed
six thousand dollars ($6,000) for each day in which that violation
persists. Any actual penalty imposed shall be reasonably
proportionate to the damage suffered as a consequence of the
violation.
   (f) This section does not authorize the issuance or enforcement of
any cease and desist order as to any activity undertaken by a local
public agency pursuant to a declaration of emergency by the governing
body of the local public agency or the board of supervisors of the
county in which the activity is being or may be undertaken. 

  SECTION 1.    Section 12986 of the Water Code, as
amended by Section 4 of Chapter 548 of the Statutes of 2006, is
amended to read:
   12986.  (a) It is the intention of the Legislature to reimburse an
eligible local agency pursuant to this part for costs incurred in
any year for the maintenance or improvement of project or nonproject
levees as follows:
   (1) Costs incurred shall not be reimbursed if the entire cost
incurred per mile of project or nonproject levee is one thousand
dollars ($1,000) or less.
   (2) Not more than 75 percent of any costs incurred in excess of
one thousand dollars ($1,000) per mile of project or nonproject levee
shall be reimbursed.
   (3) (A) As part of the project plans approved by the board, the
department shall require the local agency or an independent financial
consultant to provide information regarding the agency's ability to
pay for the cost of levee maintenance or improvement. Based on that
information, the department may require the local agency or an
                                            independent financial
consultant to prepare a comprehensive study on the agency's ability
to pay.
   (B) The information or comprehensive study of the agency's ability
to pay shall be the basis for determining the maximum allowable
reimbursement eligible under this part. This paragraph does not
increase the maximum reimbursement allowed under paragraph (2).
   (4) Reimbursements made to the local agency in excess of the
maximum allowable reimbursement shall be returned to the department.
   (5) The department may recover, retroactively, excess
reimbursements paid to the local agency from any time after January
1, 1997, based on an updated study of the agency's ability to pay.
   (6) All final costs allocated or reimbursed under a plan shall be
approved by the reclamation board for project and nonproject levee
work.
   (7) Costs incurred pursuant to this part that are eligible for
reimbursement include construction costs and associated engineering
services, financial or economic analyses, environmental costs,
mitigation costs, and habitat improvement costs.
   (b) Upon completion of its evaluation pursuant to Sections 139.2
and 139.4, by January 1, 2008, the department shall recommend to the
Legislature and the Governor priorities for funding under this
section.
   (c) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
 
  SEC. 2.    Section 12986 of the Water Code, as
amended by Section 5 of Chapter 548 of the Statutes of 2006, is
amended to read:
   12986.  (a) It is the intention of the Legislature to reimburse
from the General Fund an eligible local agency pursuant to this part
for costs incurred in any year for the maintenance or improvement of
project or nonproject levees as follows:
   (1) Costs incurred shall not be reimbursed if the entire cost
incurred per mile of levee is one thousand dollars ($1,000) or less.
   (2) Fifty percent of any costs incurred in excess of one thousand
dollars ($1,000) per mile of levee shall be reimbursed.
   (3) The maximum total reimbursement from the General Fund shall
not exceed two million dollars ($2,000,000) annually.
   (b) This section shall become operative on July 1, 2015.