BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1265
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           (Without Reference to File)
          AB 1265 (Caballero)
          As Amended  August 5, 2010
          2/3 vote.  Urgency
          |ASSEMBLY:  |     |(June 2, 2009)  |SENATE: |27-7 |(August 9,     |
          |           |     |                |        |     |2010)          |
               (vote not relevant)

          Original Committee Reference:    REV. & TAX.
           SUMMARY  :  Changes submission to the voters of the Safe, Clean,  
          and Reliable Drinking Water Supply Act (Water Bond) from  
          November 2010 to November 2012 and prohibits a joint powers  
          authority that receives public funding under the Water Bond for  
          a surface water storage project from including for-profit  
          entities among its members.  

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

          1)Change submission of the Water Bond from the November 2, 2010  
            statewide election to the November 6, 2012 statewide election  
            and makes conforming changes throughout the Water Bond to  
            reflect the 2012 date.

          2)Add language prohibiting a joint powers authority which  
            receives public funds under the Water Bond to design, acquire,  
            and construct a surface water storage project from including  
            in its membership any for-profit corporation or any mutual  
            water company whose shareholders and members include a  
            for-profit corporation or any other private entity.

          3)Declare that this bill shall take effect immediately as an  
            urgency statute, in order to enable the Secretary of State to  
            make the changes required by this act at the earliest possible  
            date, and to ensure that the Water Bond is submitted to the  
            voters at the November 6, 2012, statewide general election, it  
            is necessary that this act take effect immediately.

           EXISTING LAW  :


                                                                  AB 1265
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          1)Creates a nine-member California Water Commission (CWC) within  
            the Department of Water Resources (DWR) with each member  
            appointed by the Governor, subject to confirmation by the  
            Senate, and serving four-year staggered terms.

          2)Enacts the Water Bond which, if approved by the voters in  
            November 2010, authorizes $11.14 billion in general obligation  
            bonds to fund various water resources programs and projects.   
            The funding by chapter is as follows:

            $   455 M           Chapter 5Drought Relief
            $1,050    Chapter 6 Water Supply Reliability
            $2,250    Chapter 7 Delta Sustainability
            $3,000    Chapter 8 Statewide Water System Operational  
            $1,785    Chapter 9 Conservation and Watershed Protection
            $1,000    Chapter 10Groundwater Protection and Water Quality
             $1,250     Chapter 11Water Recycling Program
            $11,140 M Total
          3)Authorizes the CWC, under Chapter 8 of the Water Bond 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.
          4)Authorizes, under Chapter 8 of the Water Bond, local joint  
            powers authorities (JPAs) formed by irrigation districts and  
            other local water districts and local governments within the  
            applicable hydrologic region to:

             a)   Be eligible for funds to design, acquire, and construct  
               surface storage projects; and, 

             b)   Include in their membership governmental and  
               nongovernmental partners that are not located within their  
               respective hydrologic regions in financing the surface  
               storage projects, including, as appropriate, cost share  
               participation or equity participation.

          5)Makes the DWR an ex-officio member of JPAs subject to this  
            section, but prohibits DWR from controlling the governance,  
            management, or operation of the surface water storage  


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           AS PASSED BY THE ASSEMBLY  , this bill specified that until  
          January 1, 2012, a qualified itinerant vendor is a consumer, and  
          not a retailer, of tangible personal property owned and sold by  
          the vendor, with specified exceptions, so that the retail sale  
          subject to tax is the sale of tangible personal property to the  
          qualified itinerant vendor.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  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 the 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 storage.  With  
          respect to water storage projects, SB 2 X7 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.

          As amended in the Senate, this bill would delay the Water Bond,  
          placing it on the 2012 ballot instead of the 2010 ballot, and  
          add language prohibiting joint powers authorities which receive  
          public funds allocated by the CWC under the Water Bond to  


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          design, acquire, and construct surface water storage projects  
          from including in their membership any for-profit corporation or  
          any mutual water company whose shareholders and members include  
          a for-profit corporation or any other private entity.  Related  
          legislation, AB 1260 (Fuller), would extend the terms of the  
          current CWC members appointed by the Governor to May 14, 2014 if  
          confirmed by the Senate.  

          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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