BILL ANALYSIS AB 1265 Page 1 CONCURRENCE IN SENATE AMENDMENTS 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) ------------------------------------------------------------------------ |COMMITTEE VOTE: |10-3 |(August 9, 2010) |RECOMMENDATION: |concur | | | | | | | ------------------------------------------------------------------------ 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 AB 1265 Page 2 voters at the November 6, 2012, statewide general election, it is necessary that this act take effect immediately. EXISTING LAW : 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 Improvement $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 AB 1265 Page 3 section, but prohibits DWR from controlling the governance, management, or operation of the surface water storage projects. 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 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. As amended in the Senate, this bill would delay the Water Bond, AB 1265 Page 4 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 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 FN: 0005784