BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2761
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          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

              AB 2761 (Committee on Natural Resources) - As Introduced:   
                                 February 23, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill (1) explicitly allows the State Geologist to enter  
          into geologic contracts with school districts, among other  
          entities, and (2) deletes the requirement that the Attorney  
          General (AG) must be the legal advisor for the Division of Oil,  
          Gas and Geothermal Resources (DOGGR) within the Department of  
          Conservation (DOC).

           FISCAL EFFECT  

          Potential savings of an unknown minor amount to DOGGR, which  
          will be able to use in-house attorneys instead of the AG's  
          office for routing and other division-specific matters (Oil,  
          Gas, and Geothermal Administrative Fund).

           COMMENTS  

           1)Rationale  .  According to the author, State Geologist routinely  
            contracts with state and federal governmental entities for a  
            variety of geological services.  However, while the department  
            has implied authority for contracts with school districts for  
            geologic hazard assessment, there is no express statutory  
            authority for the geologist to contract with them, which may  
            invite unwarranted challenges and subject the State Geologist  
            to unnecessary costs.

            Additionally, the author describes a provision of existing  
            law-"a relic of 1939"-that requires the AG to perform all  
            legal services for DOGGR, including review of permits,  
            proposed regulations, environmental impact reports, and  








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            communications associated with public records requests.  The  
            author contends it more appropriate that these services be  
            performed by DOC's in-house counsel, rather than the AG. 

           2)Background  .  

              a)   State Geologist Contracting  .  The State Geologist  
               routinely contracts with state and federal governmental  
               entities for a variety of geological services. Since 1990,  
               the Department of General Services (DGS), Division of the  
               State Architect (DSA) has contracted with the State  
               Geologist to review geologic hazard reports and proposed  
               mitigations for school construction plans.  DSA has  
               historically secured the geologist's assistance through  
               interagency agreements and has provided direct  
               reimbursement to the geologist, with funding provided by  
               fees paid to DSA by school districts.  Recent DSA policy  
               changes require the State Geologist to 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.  Existing law provides no explicit authority for  
               the geologist to contract with school districts.

              b)   DOGGR Attorneys  .  DOGGR regulates oil, gas, and  
               geothermal well operations throughout the state. The  
               division issues production permits and oversees the  
               drilling, operation, maintenance, as well as the plugging  
               and abandonment of wells. The DOGGR also provides detailed  
               production reports on oil and gas output in the state.  

               Existing law 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.  
                It is arguably more appropriate for DOC's in-house  
               attorneys to perform this work than for the AG's office to  
               do so. 

           3)There is no support or opposition registered to this bill.
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081 








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