BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                 AB 1422
                                                                 Page  1

         (  Without Reference to File  )

         CONCURRENCE IN SENATE AMENDMENTS
         AB 1422 (Perea)
         As Amended  June 28, 2012
         2/3 vote.  Urgency
          
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         |ASSEMBLY:  |     |(May 16, 2011)  |SENATE: |34-2 |(July 5, 2012) |
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                          (vote not relevant)         

         Original Committee Reference:    REV. & TAX.  

          SUMMARY  :  Moves the Safe, Clean, and Reliable Drinking Water 
         Supply Act, which would provide $11.14 billion in general 
         obligation bonds (Water Bond), from the November 2012 general 
         election to the November 2014 general election.  

          The Senate amendments  delete the Assembly version of the bill, and 
         instead:

         1)Change submission of the Water Bond from the November 6, 2012, 
           statewide election to the November 4, 2014, statewide election 
           and make conforming changes throughout the Water Bond to reflect 
           the 2014 date.


         2)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.

          EXISTING LAW  :

         1)Creates a nine-member California Water Commission (CWC) within 
           the Department of Water Resources 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 2012, authorizes $11.14 billion in general obligation 
           bonds to fund various water resources programs and projects.  
           The funding by chapter is as follows (in billions):








                                                                 AB 1422
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           $    .455           Chapter 5            Drought Relief
           $  1.4            Chapter 6            Water Supply Reliability
           $  2.25           Chapter 7            Delta Sustainability
           $  3.0             Chapter 8            Statewide Water System 
           Operational Improvement
           $  1.785           Chapter 9            Conservation and 
           Watershed Protection
           $  1.0              Chapter 10          Groundwater Protection 
           and Water Quality
            $  1.25           Chapter 11          Water Recycling Program
            $11.14         TOTAL

         3)Continuously appropriates $3 billion in general obligation bond 
           funds for the CWC to allocate to surface water and groundwater 
           projects based on a determination of the public benefits 
           provided by those project, pursuant to criteria specified in the 
           Water Bond, and requires as a prerequisite that eligible 
           projects measurably improve the Sacramento-San Joaquin Delta 
           (Delta) ecosystem or tributaries to the Delta.
           
          AS PASSED BY THE ASSEMBLY  , this bill made several 
         non-controversial changes to California's property tax law.

          FISCAL EFFECT  :  Unknown

          COMMENTS  :  On October 11, 2009, Governor Schwarzenegger issued a 
         proclamation convening the Legislature to meet in extraordinary 
         session to address water issues that had remained outstanding at 
         the end of the regular session including Delta governance, water 
         supply reliability, ecosystem improvements, water conveyance, 
         water storage, water conservation and the need for a general 
         obligation bond.  The Seventh Extraordinary Session culminated, in 
         November 2009, with the signing into law of an historic five-bill 
         package.

         SB 2 X7 (Cogdill), Chapter 3, Statutes of the 2009-10 Seventh 
         Extraordinary Session, was part of that package and would have 
         placed the Water Bond on the November 2010 ballot.  SB 2 X7 called 
         for the issuance of general obligation 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, Chapter 8 of SB 2 X7 
         stated that $3 billion would be continuously appropriated to the 
         CWC to determine, and provide funding for, the public benefits 







                                                                 AB 1422
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         associated with surface and groundwater storage projects according 
         to criteria such as:  ecosystem improvements that benefit native 
         fish and wildlife; water quality improvements; flood control 
         benefits; emergency response; and, recreational purposes.  

         Déjà vu all over again?  As amended in the Senate, this bill would 
         delay the Water Bond by placing it on the 2014 ballot instead of 
         the 2012 ballot.  If it passes, that will be the second time the 
         Water Bond vote is delayed.  AB 1265 (Caballero), Chapter 126, 
         Statutes of 2010, moved the Water Bond from the November 2010 
         general election to the November 2012 general election.  AB 1265 
         also deleted language in SB 2 X7 that would have allowed 
         for-profit entities to be included among the members of joint 
         powers authorities receiving Chapter 8 public funds.  

         This bill was substantially amended in the Senate and the 
         Assembly-approved provisions of this bill were deleted.  Although 
         a bill moving the Water Bond from 2012 to 2014 was not discussed 
         this legislative session, the Assembly Water, Parks and Wildlife 
         Committee did hear AB 157 (Jeffries).  AB 157 recognized that, due 
         to current fiscal and political realities, the voters were 
         unlikely to pass an $11.14 billion bond this year.  But instead of 
         moving the bond, AB 157 proposed to trim 25% across-the-board from 
         every title and reduce the Water Bond to $8.36 billion.  
         Opposition to AB 157 ranged from those who maintained that the 
         Water Bond should be left untouched as it reflected a bipartisan 
         consensus around the state's infrastructure needs and priorities, 
         to those who claimed that the bond language was now three years 
         old and our understanding of what is needed and how it can be 
         financed has changed, particularly for the Delta.  AB 157 failed 
         passage in Assembly Water, Parks and Wildlife Committee.


          Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
         319-2096                                          


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