BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 1260
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 1260 (Fuller)
        As Amended  August 9, 2010
        Majority vote
         
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(May 11, 2009)  |SENATE: |26-5 |(August 9, 2010)     |
         ---------------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |9-3  |(August 9, 2010)    |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
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        Original Committee Reference:    B. & P.

        SUMMARY  :  Extends the terms of the current California Water  
        Commission (CWC) members, all of whom were appointed by Governor  
        Schwarzenegger, until May 14, 2014.

         The Senate amendments  delete the Assembly version of the bill, and  
        instead:

        1)Extend until May 14, 2014 the term of any CWC member who is  
          serving an unexpired term as of January 1, 2011.

        2)Resume staggering CWC member terms on May 14, 2014.

         EXISTING LAW  :

        1)Creates a nine-member CWC within the Department of Water  
          Resources (DWR) with each member appointed by the Governor,  
          subject to confirmation by the Senate, and serving four years.

        2)Staggers CWC members' terms so that one or more expires each  
          year.

        3)Requires the CWC to approve all DWR rules and regulations other  
          than those relating exclusively to DWR's internal administration  
          and management and empowers the CWC to name all State Water  
          Project facilities.









                                                                AB 1260
                                                                Page  2

        4)Provides that if the Safe, Clean, and Reliable Drinking Water  
          Supply Act of 2010 (Water Bond) is approved by the voters, then:

           a)   $3 billion dollars shall be continuously appropriated to  
             the CWC to fund what it determines are the public benefits of  
             water storage projects selected by the CWC and which improve  
             the Sacramento-San Joaquin Delta (Delta) ecosystem or  
             tributaries to the Delta; and, 

           b)   Water storage project public benefits shall be broadly  
             defined to include: ecosystem improvements, including changing  
             the timing of water diversions or improving flows or water  
             temperatures to benefit native fish and wildlife; water  
             quality improvements; flood control benefits; emergency  
             response; and recreational purposes.

         AS PASSED BY THE ASSEMBLY  , this bill addressed the Acupuncture  
        Board and the requirements for a quorum.

         FISCAL EFFECT  :  Unknown

         COMMENTS  :  This bill extends to May 14, 2014, the term of any CWC  
        member whose appointment has been confirmed by the Senate and who  
        is serving in an unexpired term as of January 1, 2011.  Without  
        passage of this bill, the terms of the current water commissioners  
        who were appointed by the Governor on May 14, 2010 would otherwise  
        expire as follows: three on January 15, 2011, two on January 15,  
        2012, two on January 15, 2013, and two on January 15, 2014.

        On October 11, 2009, Governor Schwarzenegger issued a proclamation  
        convening the Legislature to meet in extraordinary session to take  
        up issues related to protecting and restoring the Delta ecosystem  
        and improving water reliability and management, including  
        addressing water conveyance, storage, and conservation, and  
        considering a general obligation bond.  

        SB 2 X7 (Cogdill), Chapter 3, Statutes of the 2009-10 Seventh  
        Extraordinary Session, passed in November 2009, formed part of the  
        historic five-bill package adopted in that session and called for a  
        water bond to be placed on the November 2010 ballot.  If approved  
        by the voters, it would authorize the issuance of bonds in the  
        amount of $11.14 billion for a wide range of projects and purposes  
        including water conservation and efficiency, groundwater protection  
        and cleanup, integrated regional water management, ecosystem and  
        watershed protection and restoration, water recycling, and water  








                                                                AB 1260
                                                                Page  3

        storage.  With respect to water storage projects, SB 2X7  
        continuously appropriates $3 billion to the CWC to fund the public  
        benefits of those projects after determining the amount of public  
        benefits provided by each proposed project pursuant to criteria set  
        forth in that bill.  Those criteria broadly define public benefits  
        to include: ecosystem improvements that benefit native fish and  
        wildlife; water quality improvements; flood control benefits;  
        emergency response; and recreational purposes. 

        On May 14, 2010, Governor Schwarzenegger announced nine new  
        appointments to the CWC, a body which was previously dormant during  
        his administration.  Since that time, Governor Schwarzenegger  
        announced he would seek to delay the Water Bond until the 2012  
        ballot.

        Related legislation, AB 1265 (Ma), was gutted and amended by the  
        Senate on August 5, 2010 to become AB 1265 (Caballero), which would  
        delay the Water Bond until the 2012 ballot and add language  
        prohibiting joint powers authorities which receive public water  
        bond funds to design, acquire, and construct water storage projects  
        from including in their membership for-profit members.  In  
        anticipation of passage of AB 1265 delaying the water bond, this  
        bill (AB 1260) was amended in the Senate to provide that each of  
        Governor Schwarzenegger's current CWC appointees, if confirmed by  
        the Senate, would have full four year terms extending to May 14,  
        2014.  Even though Governor Schwarzenegger's term ends in 2010,  
        this would ensure that if the water bond were put on the 2012  
        ballot and passed by the voters, his current CWC appointees, if  
        confirmed by the Senate, would still make the initial decisions  
        regarding the $3 billion authorized by the water bond for water  
        storage projects.

        This bill was substantially amended in the Senate and the  
        Assembly-approved provisions of this bill were deleted.  The  
        subject matter of this bill was not heard in an Assembly policy  
        committee this legislative session.

         Analysis Prepared by  :    Tina Cannon Leahy and Diane Colborn / W.,  
        P. & W. / (916) 319-2096 

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