BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1578| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1578 Author: Logue (R) Amended: 6/13/12 in Senate Vote: 21 SENATE NATURAL RESOURCES AND WATER COMM : 9-0, 6/12/12 AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe, Padilla, Simitian, Wolk SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 6/28/12 AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe, La Malfa, Liu, Yee SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 75-0, 5/17/12 - See last page for vote SUBJECT : Indian Valley Watermaster District SOURCE : Author DIGEST : This bill creates the Indian Valley Watermaster District. ANALYSIS : Existing law: 1.Provides for the establishment of watermaster service areas by the Department of Water Resources (DWR) for the purposes of ensuring the most practical and economic supervision of the distribution of water. CONTINUED AB 1578 Page 2 2.Specifies that upon the submission of a specified petition to a court in which a relevant judicial decree has been entered, the court may appoint a public agency as a watermaster to replace the watermaster appointed by DWR. This bill: 1.Enacts the Indian Valley Watermaster District Act, creating the Indian Valley Watermaster District. The District's boundaries cover 53 specified tracts within Plumas County. 2.Gives the District the power to act as watermaster over decreed water rights for which the superior court has appointed the District as watermaster. The District has the same powers and duties as a DWR watermaster service area. However, the superior court can modify the District's powers. The bill also gives the District the power to adopt ordinances and regulations, acquire and dispose of property, appoint employees, and enter contracts. The bill says that the District does not have eminent domain powers. 3.Creates a five-member board of directors to govern the District. By February 1, 2013, the Plumas County Board of Supervisors must appoint the District's initial board of directors. The initial board serves until the first opportunity to hold an election. At that election, the affected landowners in the Indian Valley Service Area elect three members. The Plumas County Board of Supervisors appoints the two other board members who must be county residents, but not landowners in the Indian Valley Service Area. The directors classify themselves so that three directors serve initial terms of four years and two directors serve initial terms of two years. Thereafter, the directors serve staggered four-year terms. The directors may be reimbursed for expenses. 4.Defines the District's voters as the owners of water rights whose places of use are parcels within the District for water rights under appointed decrees. Water rights owners who contract with the District for CONTINUED AB 1578 Page 3 water-master service for their parcels are also voters. Every voter has one vote. Otherwise, the District's elections follow the procedures used by landowner voting districts under the Uniform District Election Law. 5.Allows the District to recover its costs by charging apportionments to the affected landowners, following the same procedures as a DWR watermaster service area. 6.Requires the District to comply with the Brown Act's open meeting requirements, have regular audits, and file annual financial reports with the State Controller. The bill also declares that the District is not subject to the Cortese-Knox-Hertzberg Act. Background Watermasters carry out water rights decrees, ensuring that the owners of water rights properly distribute, divert, store, and use their water. In eight northern counties, DWR provides watermaster services, operating in 12 watermaster service areas. Watermaster service areas recover their costs by charging annual "apportionments" to the landowners whose water rights are covered by the decrees. Historically, the affected landowners paid for half of a watermaster service area's costs and the state government paid the rest. The 2004-05 State Budget ended that cost-sharing, requiring landowners to pay for a watermaster service area's full costs. However, because DWR used funds from other programs to help offset costs of the watermaster related activities, the program's full costs were not passed onto water rights holders. The 2011-12 state budget eliminated the remaining state subsidy, resulting in dramatic fee increases for some water rights holders. In response to the 2004-05 reduction in cost sharing, some landowners wanted the courts to reassign watermaster duties to local governments. In 2006, the Legislature authorized a court to appoint another public agency to assume DWR's watermaster duties. The next year, at the request of water rights holders in three water service areas, the Legislature created two new special districts to assume the CONTINUED AB 1578 Page 4 watermasters' duties in those areas. In response to the fee increases that resulted from the recent loss of state funding for watermaster services, water rights holders in the Indian Creek Water Service Area in Plumas County want the same authority to form a new special district that the 2007 Aanestad and La Malfa bills granted to landowners in other water service areas. Comments Invented in California, special districts offer landowners and residents a way to pay for the services they want. Unlike counties and cities that deliver a wide range of public services over large areas, special districts offer focused services, delivering just one or two services to specific geographic areas where the recipients are willing to pay. With the end of state subsidies for watermaster services and the resulting increase in rates, some landowners want the courts to reassign the watermaster duties to local governments. Instead, Plumas County's affected landowners want the Legislature to set up a new special district. By creating the Indian Valley Watermaster District, AB 1578 gives the affected landowners more control over their watermasters' costs. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/7/12) California Cattlemen's Association Plumas County Board of Supervisors ASSEMBLY FLOOR : 75-0, 5/17/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, CONTINUED AB 1578 Page 5 Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, V. Manuel Pérez, Portantino, Silva, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, John A. Pérez NO VOTE RECORDED: Fletcher, Bonnie Lowenthal, Perea, Skinner, Yamada CTW:RM:n 8/8/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED