BILL NUMBER: AB 964	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2011
	AMENDED IN SENATE  JUNE 13, 2011
	AMENDED IN ASSEMBLY  APRIL 13, 2011
	AMENDED IN ASSEMBLY  MARCH 17, 2011

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 18, 2011

   An act to amend Sections 1228.1, 1228.2,  and 1228.5
  1228.5, 1229.1, 1241, 1525, and 5101  of, to
amend the heading of Article 2.7 (commencing with Section 1228) of
Chapter 1 of Part 2 of Division 2 of, to  amend and renumber
Section 1229.1 of   add Section 1229 to  , and to
repeal Section 1228.9 of, the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 964, as amended, Huffman. Water rights: appropriation.
   (1) Existing law authorizes any person to obtain a right to
appropriate water for small domestic use or livestock stockpond use
upon registering the use with the State Water Resources Control Board
and upon thereafter applying the water to reasonable and beneficial
use with due diligence.  For these purposes, existing law defines
a small domestic use as a domestic use, as defined by board rule,
including impoundment for incidental aesthetic, recreational, or fish
and wildlife purposes, not to exceed direct diversion of 4,500
gallons per day or diversion to storage of 10 acre-feet per annum.
 With regard to small domestic use, existing law prohibits more
than one registration to be in effect at any time for any facility.
Existing law allows a registrant to maintain more than one
registration for livestock stockpond use if stockponds subject to
registration do not exceed the ratio of one per 50 acres. Existing
law provides for registration renewals of small domestic uses and
livestock stockpond uses prior to the expiration of each 5-year
period following completed registration.
   This bill would also authorize any person to obtain a right to
appropriate water for a small irrigation use, as defined  by the
bill  , upon registering the use with the board, as prescribed,
and thereafter applying the water to reasonable and beneficial use
with due diligence.  The authority to register for small
irrigation use would be effective only to the extent that the board
has established specified general conditions for that category of
small irrigation use.  This bill  would redefine small
domestic use to mean a domestic use, as defined by board rule, or use
for aesthetic, fire protection, recreational, or fish and wildlife
purposes, not to exceed direct diversion of 4,500 gallons per day or
diversion to storage of 10 acre-feet per annum. The bill  would
prohibit the filing of a small domestic use registration for a
facility served by or used pursuant to a permit or license for
domestic or municipal use. This bill would also allow a registrant
for a small irrigation use to maintain more than one registration if
a small irrigation use subject to registration does not exceed the
ratio of one per  50   20 irrigated  acres,
and if the total water use on all registered acreage does not exceed
100 acre-feet per annum.
   This bill would also prohibit a registration with a source of
supply on a stream system from taking effect unless the board finds
that unappropriated water is available for the proposed
appropriation. The bill would authorize the board, following a notice
and hearing, to determine whether that stream system should be
declared fully appropriated. 
   The bill would make various conforming changes to existing law
relating to registrations for small irrigation use. 
   (2) Existing law exempts from the provisions described in (1)
those stream segments for which the Director of Fish and Game
establishes proposed streamflow requirements pursuant to specified
existing law.
   This bill would provide that the exemption does not apply to a
registration filed before the director establishes proposed
streamflow requirements. The bill would require the renewal of a
registration to include certain conditions determined by the
department to be necessary. 
   (3) Existing law requires a person who holds a permit or license
to appropriate water, leases water pursuant to specified provisions
of law, or files a specified application, registration, petition, or
request relating to water use to pay fees imposed by the board. The
board is required to adopt a fee schedule so that the total amount of
fees collected equals that amount necessary to recover costs
incurred in connection with the issuance, administration, review,
monitoring, and enforcement of permits, licenses, certificates, and
registrations to appropriate water, water leases, and orders
approving changes in points of discharge, place of use, or purpose of
use of treated wastewater. The board is required to set the amount
of total revenue collected each year through the fees at an amount
equal to the revenue levels set forth in the annual Budget Act for
this activity. The revenue generated by those fees is required to be
deposited in the Water Rights Fund.  
   This bill would instead require the board to set the total revenue
collected each year through the fees at an amount equal to amounts
appropriated from the Water Rights Fund by the Legislature for water
rights program activities, as specified. The bill would additionally
apply the fee requirements to a registration of appropriation for
small irrigation use. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The heading of Article 2.7 (commencing with Section
1228) of Chapter 1 of Part 2 of Division 2 of the Water Code is
amended to read:

      Article 2.7.  Registration of Appropriations for Small
Domestic, Small Irrigation, and Livestock Stockpond Uses


  SEC. 2.  Section 1228.1 of the Water Code is amended to read:
   1228.1.  (a) The Legislature finds and declares that it is in the
public interest to provide a timely, efficient, and economic
procedure for the acquisition of rights to appropriate water for a
small domestic use, including incidental stock watering and
irrigation uses, a small irrigation use, and for  livestock
stockponds   a livestock stockpond  subject to
prior rights.
   (b) As used in this article,: 
   (1) "Small" domestic use" means a domestic use, not to exceed
direct diversion of 4500 gallons per day or diversion to storage of
10 acre-feet per annum, as that use is defined by board rule, and
shall include impoundment for incidental aesthetic, recreational, or
fish and wildlife purposes.  
   (2) "Small irrigation use" means an irrigation use not to exceed
direct diversion of 4500 gallons per day or diversion to storage of
20 acre-feet per annum.  
   (1) "Small domestic use" means a domestic use, as that use is
defined by board rule, or a use for aesthetic, fire protection,
recreational, or fish and wildlife purposes that is associated with a
dwelling or other facility for human occupation, that does not
exceed direct diversion of 4,500 gallons per day or diversion to
storage of 10 acre-feet per annum.  
   (2) "Small irrigation use" means either of the following: 

   (A) An irrigation use, heat control use, or frost protection use,
not to exceed diversion to storage of 20 acre feet per annum,
including impoundment for incidental domestic aesthetic, fire
protection, recreational, or fish and wildlife purposes. 
   (B) An irrigation use not to exceed direct diversion of 42,000
gallons per day, up to a maximum of 20 acre-feet per annum. 
   (3) "Livestock stockpond" means a water impoundment structure
constructed for livestock watering use not to exceed direct diversion
of  4500   4,500  gallons per day, or
diversion to storage of 10 acre-feet per year, as that use is defined
by the board, and including impoundment for incidental aesthetic,
recreational, or fish and wildlife purposes.
  SEC. 3.  Section 1228.2 of the Water Code is amended to read:
   1228.2.  (a) (1) Subject to subdivision (b), any person may obtain
a right to appropriate water for a small domestic, small irrigation,
or livestock stockpond use upon first registering the use with the
board and thereafter applying the water to reasonable and beneficial
use with due diligence.
   (2) With regard to an appropriation for small domestic use, a
registration shall not be filed for a facility served by or used
pursuant to a permit or license for domestic or municipal use, and
not more than one  small domestic use  registration shall be
in effect at any time for any facility.
   (3) With regard to an appropriation for small irrigation use, more
than one registration may be in effect at any time for a registrant
if the diversion or storage facilities subject to registration for a
registrant do not exceed the ratio of one per  50 
 20 irrigated  acres, and if the total water use on all
acreage covered by the registrations, including any water use based
on other rights, does not exceed 100 acre-feet per annum. 
   (4) A small domestic use registration and a small irrigation use
registration may be in effect for the same facility only if the total
combined water use covered by the registrations does not exceed 20
acre-feet per annum.  
   (4) 
    (5)  With regard to an appropriation for livestock
stockpond use, more than one registration may be in effect at any
time for a registrant if stockponds subject to registration for that
registrant do not exceed the ratio of one per 50 acres.
   (b) Initiation of rights to appropriate water pursuant to this
article shall be subject to Article 1.3 (commencing with Section
1205), relating to fully appropriated stream systems. The board shall
not accept any registration of water use which proposes as a source
of water supply any stream system which has been unconditionally
declared by the board to be fully appropriated pursuant to Section
1205, except that subdivision (b) of Section 1206, relating to
conditional declarations of fully appropriated stream systems, shall
apply to registration of water use pursuant to this article, and the
board shall accept those registrations where consistent with the
conditions specified in any such declaration.
   (c) On or before June 30, 1989, and annually thereafter, the
Division of Water Rights shall prepare and submit to the board a
report summarizing the location, nature, and amount of water
appropriated pursuant to this article. The report shall include a
description of the availability of unappropriated water in those
stream systems which may become fully appropriated within the next
reporting period.
   (d) If a registration is filed with a source of supply on a stream
system that the most recent report submitted under subdivision (c)
identifies as a stream system that may become fully appropriated
within the next reporting period, the registration shall not take
effect unless the board finds that unappropriated water is available
for the appropriation proposed by the registration. If the board
finds that unappropriated water is not available to supply the
proposed appropriation, the board shall, following notice and
hearing, determine whether that stream system should be declared
fully appropriated pursuant to Article 1.3 (commencing with Section
1205).
  SEC. 4.  Section 1228.5 of the Water Code is amended to read:
   1228.5.  (a) Registration of a small domestic, small irrigation,
or livestock stockpond use pursuant to this article shall be renewed
prior to the expiration of each five-year period following completed
registration.
   (b) Renewal of registration shall be made upon a form prescribed
by the board and shall contain a report of water use made pursuant to
the registration as may be required by the board.
   (c) The conditions established by the board pursuant to Section
1228.6 that are in effect at the time of renewal of registration
shall supersede the conditions that were applicable to the original
completed registration.
   (d) Failure to renew registration in substantial compliance with
the reporting requirements prescribed by the board within the time
period specified in subdivision (a), or to pay the renewal fee
specified in Section 1525, shall result by operation of law in the
revocation of any right acquired pursuant to this article.
  SEC. 5.  Section 1228.9 of the Water Code is repealed. 
  SEC. 6.    Section 1229.1 of the Water Code is
amended and renumbered to read:
   1229.  (a) Except as provided in subdivision (b), this article
does not apply to those stream segments for which the Director of
Fish and Game establishes proposed streamflow requirements pursuant
to Section 10002 of the Public Resources Code, notwithstanding the
July 1, 1989, deadline for preparation of the requirements.
   (b) Notwithstanding subdivision (a), this article applies to any
registration filed before the Director of Fish and Game establishes
proposed streamflow requirements for the source of water supply for
the registration. The conditions for renewal under subdivision (c) of
Section 1228.5 may include any conditions the Department of Fish and
Game determines to be necessary to protect stream-related fish and
wildlife resources on any source of water supply for which the
Director of Fish and Game has established proposed streamflow
requirements pursuant to Section 10002 of the Public Resources Code.

   SEC. 6.    Section 1229 is added to the  
Water Code   , to read:  
   1229.  This article does not authorize a registration for small
irrigation use until the board establishes general conditions for
small irrigation use pursuant to subdivision (a) of Section 1228.6 to
protect instream beneficial uses. The board may establish general
conditions for some methods of diversion or categories of small
irrigation use before establishing general conditions for other
methods or categories, in which case a registration for small
irrigation use is authorized only for those methods or categories for
which the board has established the general conditions for the
protection of instream beneficial uses. 
   SEC. 7.    Section 1229.1 of the  Water Code
  is amended to read: 
   1229.1.   (a)    This article does not apply to
those stream segments for which the Director of Fish and Game
establishes proposed streamflow requirements pursuant to Section
10002 of the Public Resources Code, notwithstanding the July 1, 1989,
deadline for preparation of the requirements. 
   (b) Notwithstanding subdivision (a), this article applies to any
registration filed before the Director of Fish and Game establishes
proposed streamflow requirements for the source of water supply for
the registration. The conditions for renewal under subdivision (c) of
Section 1228.5 may include any conditions the Department of Fish and
Game determines to be necessary to protect stream-related fish and
wildlife resources on any source of water supply for which the
Director of Fish and Game has established proposed streamflow
requirements pursuant to Section 10002 of the Public Resources Code.

   SEC. 8.    Section 1241 of the   Water Code
  is amended to read: 
   1241.  If the person entitled to the use of water fails to use
beneficially all or any part of the water claimed by him or her, for
which a right of use has vested, for the purpose for which it was
appropriated or adjudicated, for a period of five years, that unused
water may revert to the public and shall, if reverted, be regarded as
unappropriated public water. That reversion shall occur upon a
finding by the board following notice to the permittee, licensee, or
person holding a livestock stockpond certificate or small domestic
 use, small irrigation use,  or livestock stockpond use
registration under this part and a public hearing if requested by the
permittee, licensee, certificate holder, or registration holder.
   SEC. 9.    Section 1525 of the   Water Code
  is amended to read: 
   1525.  (a) Each person or entity who holds a permit or license to
appropriate water, and each lessor of water leased under Chapter 1.5
(commencing with Section 1020) of Part 1, shall pay an annual fee
according to a fee schedule established by the board.
   (b) Each person or entity who files any of the following shall pay
a fee according to a fee schedule established by the board:
   (1) An application for a permit to appropriate water.
   (2) A registration of appropriation for a small domestic use 
, small irrigation use,  or livestock stockpond  use 
.
   (3) A petition for an extension of time within which to begin
construction, to complete construction, or to apply the water to full
beneficial use under a permit.
   (4) A petition to change the point of diversion, place of use, or
purpose of use, under a permit  or   , 
license  , or registration  .
   (5) A petition to change the conditions of a permit or license,
requested by the permittee or licensee, that is not otherwise subject
to paragraph (3) or (4).
   (6) A petition to change the point of discharge, place of use, or
purpose of use, of treated wastewater, requested pursuant to Section
1211.
   (7) An application for approval of a water lease agreement.
   (8) A request for release from priority pursuant to Section 10504.

   (9) An application for an assignment of a state-filed application
pursuant to Section 10504.
   (c) The board shall set the fee schedule authorized by this
section so that the total amount of fees collected pursuant to this
section equals that amount necessary to recover costs incurred in
connection with the issuance, administration, review, monitoring, and
enforcement of permits, licenses, certificates, and registrations to
appropriate water, water leases, and orders approving changes in
point of discharge, place of use, or purpose of use of treated
wastewater. The board may include, as recoverable costs, but is not
limited to including, the costs incurred in reviewing applications,
registrations, petitions and requests, prescribing terms of permits,
licenses, registrations, and change orders, enforcing and evaluating
compliance with permits, licenses, certificates, registrations,
change orders, and water leases, inspection, monitoring, planning,
modeling, reviewing documents prepared for the purpose of regulating
the diversion and use of water, applying and enforcing the
prohibition set forth in Section 1052 against the unauthorized
diversion or use of water subject to this division, and the
administrative costs incurred in connection with carrying out these
actions.
   (d) (1) The board shall adopt the schedule of fees authorized
under this section as emergency regulations in accordance with
Section 1530.
   (2) For filings subject to subdivision (b), the schedule may
provide for a single filing fee or for an initial filing fee followed
by an annual fee, as appropriate to the type of filing involved, and
may include supplemental fees for filings that have already been
made but have not yet been acted upon by the board at the time the
schedule of fees takes effect.
   (3) The board shall set the amount of total revenue collected each
year through the fees authorized by this section at an amount equal
to the  revenue levels set forth in the annual Budget Act for
this activity  amounts appropriated by the Legislature
for expenditure for support of water rights program activities from
the Water Rights Fund established under Section 1550, taking into
account the reserves in the Water Rights Fund  . The board shall
review and revise the fees each fiscal year as necessary to conform
with the  revenue levels set forth in the annual Budget Act
  amounts appropriated  . If the board determines
that the revenue collected during the preceding year was greater
than, or less than, the  revenue levels set forth in the
annual Budget Act   amounts appropriated  , the
board may further adjust the annual fees to compensate for the over
or under collection of revenue.
   (e) Annual fees imposed pursuant to this section for the 2003-04
fiscal year shall be assessed for the entire 2003-04 fiscal year.
   SEC. 10.    Section 5101 of the   Water Code
  is amended to read: 
   5101.  Each person who, after December 31, 1965, diverts water
shall file with the board, prior to July 1 of the succeeding year, a
statement of his or her diversion and use, except that a statement is
not required to be filed if the diversion is any of the following:
   (a) From a spring that does not flow off the property on which it
is located and from which the person's aggregate diversions do not
exceed 25 acre-feet in any year.
   (b) Covered by a registration for small domestic  use, small
irrigation use,  or livestock stockpond  uses 
 use  , or permit or license to appropriate water on file
with the board.
   (c)  Included in a notice filed pursuant to Part 5 (commencing
with Section 4999).
   (d) Regulated by a watermaster appointed by the department and
included in annual reports filed with a court or the board by the
watermaster, which reports identify the persons who have diverted
water and describe the general purposes and the place, the use, and
the quantity of water that has been diverted from each source.
   (e) Included in annual reports filed with a court or the board by
a watermaster appointed by a court or pursuant to statute to
administer a final judgment determining rights to water, which
reports identify the persons who have diverted water and give the
general place of use and the quantity of water that has been diverted
from each source.
   (f) For use in compliance with Article 2.5 (commencing with
Section 1226) or Article 2.7 (commencing with Section 1228) of
Chapter 1 of Part 2.
   (g) A diversion that occurs before January 1, 2009, if any of the
following applies:
   (1) The diversion is from a spring that does not flow off the
property on which it is located, and the person's aggregate
diversions do not exceed 25 acre-feet in any year.
   (2) The diversion is covered by an application to appropriate
water on file with the board.
   (3) The diversion is reported by the department in its hydrologic
data bulletins.
   (4) The diversion is included in the consumptive use data for the
Delta lowlands published by the department in its hydrologic data
bulletins.