BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1578
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1578 (Logue)
          As Amended  June 13, 2012
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(May 17, 2012)  |SENATE: |37-0 |(August 23,    |
          |           |     |                |        |     |2012)          |
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           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. 








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           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;









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             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.









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          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 








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            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.









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           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
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          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 


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