BILL ANALYSIS Ó AB 1578 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1578 (Logue) As Amended June 13, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |75-0 |(May 17, 2012) |SENATE: |37-0 |(August 23, | | | | | | |2012) | ----------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY : Creates the Indian Valley Watermaster District (District). The Senate amendments clarify that the District will assume all powers and duties previously assigned to the Department of Water Resources (DWR) as watermaster. EXISTING LAW : 1)States that, upon written request submitted to DWR by the owners or governing bodies of at least 15% of the conduits lawfully entitled to directly divert water from the streams or other sources of water supply in any service area, DWR may, if it determines that it is necessary, appoint a watermaster and if necessary, in its discretion, one or more deputy watermasters for the service area. 2)Provides that, upon petition made to a court in which a relevant judicial decree has been entered by the owners or governing bodies of at least 15% of the conduits lawfully entitled to directly divert water from the streams or other sources of water supply in any service area, the court may appoint a public agency as watermaster under this part to replace the watermaster appointed by DWR. 3)States that a watermaster appointed by the court shall have the powers and duties prescribed by the court pursuant to the exercise of its judicial authority. 4)Establishes a Watermaster District for Siskiyou County. 5)Establishes a Watermaster District for Shasta and Tehama Counties. AB 1578 Page 2 AS PASSED BY THE ASSEMBLY , this bill: 1)Created a watermaster district in Plumas County to be known as the Indian Valley Watermaster District. 2)Stated that the purpose of the District is to act as watermaster over those decreed water rights whose places of use are within the territory of the District and for which the court has appointed the District as the watermaster. 3)Established the exterior boundaries of the District. 4)Defined the following terms for purposes of this measure: a) "Appointed decree" means a decree for which the District is appointed the watermaster by the court; b) "Appointed parcel" means a parcel of real property within the District that is a place of use for water rights under an appointed decree; c) "Board of directors" or "board" means the board of directors of the District; d) "Contracted parcel" means an eligible parcel whose owner has entered into a contract with the District to provide watermaster service for that parcel; e) "County" means Plumas County; f) "Court" means the Superior Court for the County of Plumas; g) "Decree" or "decrees" means any water right decree, entered by the court that adjudicates water rights within the county in which the decreed points of diversion are within the county; h) "Department" means the Department of Water Resources (DWR); i) "District" means the Indian Valley Watermaster District; AB 1578 Page 3 j) "Eligible parcel" means a parcel of real property within the District that is a place of use for water rights under a decree that is not an appointed decree, and for which the department is not the watermaster; aa) "Fund" means the fund designated by the court, or by the District in the absence of a designation by the court, into which charges levied by the District shall be paid by the county upon collection; bb) "Owner" means a person who is an owner of a parcel of real property within the District that is a place of use for water rights under a decree; cc) "Person" means any state or local governmental agency, private corporation, firm, partnership, individual, group of individuals, or, to the extent authorized by law, any native tribe or federal agency; dd) "Indian Valley Service Area" means the territory included in the Indian Valley Water District as described in the measure; ee) "Indian Valley" means that portion of the District generally drained by Indian Creek; and, ff) "Voter" means a holder of water rights whose place of use under a decree is an appointed or contracted parcel. 5)Specified that the District board (Board) would consist of five members. 6)Stated that one member of the Board shall be a voter holding water rights whose places of use under a decree are appointed or contracted parcels within the Indian Valley Service Area; these members shall be elected at large from the Indian Valley Service Area. 7)Stated that, two members of the Board be appointed by the Plumas County Board of Supervisors, specifying that these members shall be residents of the County and shall not be voters. 8)Specified that a quorum of the Board is three members. AB 1578 Page 4 9)Required, on or before February 1, 2013, the board of supervisors of Plumas County to appoint the members of the board of directors and specifies these initial members will hold office until their successors are elected. 10)Required the board of directors at their first meeting to classify themselves by lot into two classes where in class one, three members of the first Board shall serve a term of four years and the other class will have two members that will serve for a two-year term. 11)Specified that the remaining Board member terms shall serve four years. 12)Allowed members of the Board to be reelected. 13)Required that all elections of the District follow the Uniform District Election Laws. 14)Stated that if a vacancy occurs on the Board, it shall be filled by appointment by a majority of the remaining Board members. 15)Required that for parcels with multiple owners, the owners must designate in writing to the District a single voter to represent them for voting purposes. 16)Required the Board to do all of the following: a) Act only by ordinance, motion, or resolution; b) Keep a record of all its actions, including financial transactions; and, c) Adopt rules or bylaws for its proceedings. 17)Authorized the Board to provide, by ordinance or resolution, that members may receive their actual and necessary traveling and incidental expenses incurred while on official business. 18)Required that prior to taking office, each elected director must take the official oath of office and execute any requirement bond that may be established by the Board. 19)Required the Board to select a chairperson and a vice AB 1578 Page 5 chairperson at the first meeting of the Board and annually thereafter. 20)Specified that the meetings of the Board are subject to the Ralph M. Brown Act. 21)Provided the District with the basic powers generally given to all special districts. 22)Specified that the District is not subject to Local Agency Formation Commission laws. 23)Stated that the District shall serve as the watermaster for any appointed decree, including but not limited to, taking specific actions ordered by the court in the administration of that decree or decrees. 24)Stated that in carrying out its duties as watermaster, the District shall have the powers and duties as provided to DWR in managing a watermaster service area except as modified by the court. 25)Authorized the District to enter into agreements to provide watermaster service to holders of a water right whose place of use is an eligible parcel where all holders of the water right have agreed to the service. 26)Required that an agreement to provide watermaster services to an eligible parcel must include a provision that the owners agree to pay in full for the service prior to the provision of service. 27)Required that the amount being paid must be determined to ensure that the provision of the watermaster service to contracted parcels does not increase the cost of the watermaster services to appointed parcels. 28)Required charges levied by the District to comply with Proposition 218. 29)Stated that amounts owed to Plumas County on account of services provided to the District by Plumas County shall be included on a proportional basis in the District's budget for each watermaster service area. AB 1578 Page 6 FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : The main purpose of the watermaster program is to ensure water is allocated according to established water rights as determined by court adjudications or agreements by an unbiased, qualified person, thereby reducing water rights court litigation, civil lawsuits, and law enforcement workload. It also helps prevent the waste or unreasonable use of water. According to DWR, there are eight Northern District field watermasters working full time in their respective service areas during the irrigation season, usually April 1 through September 30. It is the watermaster's responsibility to physically regulate between 100 to 200 diversions within one or more service areas during this period. According to the author's office, the basic problem that this bill is trying to address is the cost of the watermaster's services. In 2011 the Legislature eliminated all General Fund support for the state watermaster services, forcing DWR to dramatically increase fees on property owners that receive these services. In Indian Valley fees are now five times higher than they were in 2010. According to the author, the purpose of the bill is to transfer responsibility for watermaster services from DWR to a local watermaster district thus allowing the local district to be more cost-effective in the long run than continuing with DWR. This bill creates a special district that can serve as watermaster to enforce local court decrees for water rights in Plumas County, in place of the watermaster presently appointed by DWR. No existing special district or local government within Plumas County is well suited and prepared to serve in this capacity, and special districts that could be formed through the Plumas County Local Agency Formation Commission lack the appropriate characteristics for serving as a watermaster. This bill creates a special district to serve as watermaster, but would not cause any actual substitution of service to take place. After the proposed watermaster district is formed by enactment of the bill, water right holders would then take action in the Superior Court to replace the DWR watermaster with the new district. AB 1578 Page 7 This measure is almost identical to AB 1580 (La Malfa), Chapter 416, Statutes of 2007, that established a Watermaster District for Siskiyou County and SB 516 (Aanestad), Chapter 434, Statutes of 2007, that established the Shasta-Tehama Watermaster District. Support arguments: Given the factors that drive significant elements of cost for the state as a service provider, and their own initial budget estimates, the proponents of the bill feel that a local agency would be more cost-effective in the long run than continuing with DWR. Opposition arguments: Opposition could argue that although the cost of having DWR continue as the watermaster may be more expensive for property owners, DWR is best suited for acting as watermaster because of its expertise in ensuring that California water sources are protected and being used for the benefit of all Californians. Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916) 319-3958 FN: 0004530