BILL ANALYSIS AB 2761 Page 1 Date of Hearing: April 19, 2010 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 2761 (Committee on Natural Resources) - As Introduced: February 23, 2010 SUBJECT : Department of Conservation. SUMMARY : Clarifies that the State Geologist may enter into certain technical geologic contracts with school districts, among other entities; deletes the requirement that the Attorney General must be the legal advisor for the Division of Oil, Gas and Geothermal Resources (DOGGR). EXISTING LAW : 1)Creates the State Mining and Geology Board (Board) and authorizes the Board to nominate, and the Director of the Department to appoint a State Geologist, who is required to advise the Director regarding technical, scientific, and engineering issues, including the scientific quality of the division's products and activities. 2)Creates the California Geological Survey (CGS) as the primary state agency responsible for geologic hazard review and investigation, including investigation of seismological, geological, and strong motion aspects of earthquakes and other geologic hazards. 3)Requires the Attorney General (AG) to be the legal advisor for the DOGGR in the Department and to perform necessary legal services. THIS BILL : 1)Clarifies that the State Geologist may enter into grant or cooperative agreements and contracts with governmental, including school districts, and nongovernmental entities to provide technical, analytic, and research services related to geologic hazards directly to those entities. 2)Deletes the requirement that the AG must be the legal advisor for DOGGR. AB 2761 Page 2 FISCAL EFFECT : Unknown COMMENTS : 1)CGS contracting fix : The CGS routinely contracts with state and federal governmental entities for a variety of geological services. However, because of a technical drafting error, the current mechanism that allows CGS to contract with some governmental organizations must be clarified to provide the flexibility needed to accommodate a variety of governmental needs related to the study and assessment of geologic and seismic hazards. Of particular concern are contracts with school districts for geologic hazard assessment. Although the department has implied authority for such contracts, the absence of express statutory language may invite unwarranted challenges and subject CGS to unnecessary costs. Since 1990, the Department of General Services (DGS), Division of the State Architect (DSA) has contracted with CGS to provide the required independent, technical reviews of geologic hazard reports and proposed mitigations for school construction plans. DSA has historically secured CGS' assistance for these reviews through interagency agreements, and has provided direct reimbursement to CGS. Funding for CGS review has traditionally been provided from the fees paid by school districts directly to DSA for the entire review of district construction plans. Due to a recent policy change made by DSA regarding the review of school construction plans, CGS must work directly with, and seek funding from school districts for reviews of geologic hazard reports and proposed mitigations associated with proposed school construction projects. This requires the execution of individual contracts with school districts for each such review. 2)DOGGR and legal services : Most agencies, with the exception of the DOGGR, rely on the AG for litigation services only. However, existing law, a relic of 1939, requires the AG to perform all legal services for DOGGR, including review of permits, proposed regulations, environmental impact reports, and communications associated with public records requests; advising DOGGR management on policy or regulatory changes; and coordinating response to subpoenas, among other things. These services are more appropriate for the Department's in-house AB 2761 Page 3 counsel to perform. By deleting section 3102 of the Public Resources Code, DOGGR would be represented by the AG in litigation matters pursuant to section 11040 et seq. of the Government Code. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Dan Chia / NAT. RES. / (916) 319-2092