BILL ANALYSIS AB 2761 Page 1 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 AB 2761 Page 2 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 AB 2761 Page 3