BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1578|
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                                 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.
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          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 

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            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 

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          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, 

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            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

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