BILL NUMBER: AB 1471	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 11, 2014
	AMENDED IN SENATE  JUNE 12, 2014

INTRODUCED BY    Committee on Budget   (
  Skinner (Chair), Bloom, Campos, Chesbro, Dababneh,
Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian,
Rodriguez, Stone, Ting, and Weber   ) 
 Assembly   Members   Rendon   and
Atkins 

                        JANUARY 9, 2014

    An act to amend Sections 12722 and 12728 of, and to add
Section 12559 to, the Health and Safety Code, relating to fireworks,
and declaring the urgency thereof, to take effect immediately.
  An act to add Section 75089 to the Public Resources
Code, to add Section 79591 to, and to repeal and add Division 26.7
(commencing with Section 79700) of, the Water Code, and to repeal
Section 2 of Chapter 3 of the Seventh Extraordinary Session of the
Statutes of 2009, relating to a water quality, supply, and
infrastructure improvement program, by providing the funds necessary
therefor through an election for the issuance and sale of bonds of
the State of California and for the handling and disposition of those
funds, and   declaring the   urgency thereof, to
take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1471, as amended,  Committee on Budget  
Rendon  .  Fireworks: tax on distribution. 
 Water Quality, Supply, and Infrastructure Improvement Act of
2014.  
   (1) Existing law, the Safe, Clean, and Reliable Drinking Water
Supply Act of 2012, if approved by the voters, would authorize the
issuance of bonds in the amount of $11,140,000,000 pursuant to the
State General Obligation Bond Law to finance a safe drinking water
and water supply reliability program. Existing law provides for the
submission of the bond act to the voters at the November 4, 2014,
statewide general election.  
   This bill would repeal these provisions.  
   (2) Under existing law, various measures have been approved by the
voters to provide funds for water supply and protection facilities
and programs. Existing law, the Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond Act of
2006, an initiative measure approved by the voters as Proposition 84
at the November 7, 2006, statewide general election, authorizes the
issuance of bonds in the amount of $5,388,000,000 for the purposes of
safe drinking water, water quality and supply, flood control,
natural resource protection, and park improvements. Existing law, the
Water Security, Clean Drinking Water, Coastal and Beach Protection
Act of 2002, an initiative measure approved by the voters as
Proposition 50 at the November 5, 2002, statewide general election,
authorizes, for the purposes of financing a safe drinking water,
water quality, and water reliability program, the issuance of bonds
in the amount of $3,440,000,000.  
   This bill would enact the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, which, if approved by the
voters, would authorize the issuance of bonds in the amount of
$6,995,000,000 pursuant to the State General Obligation Bond Law to
finance a water quality, supply, and infrastructure improvement
program. This bill, upon voter approval, would reallocate
$105,000,000 of specified funds authorized for the purposes of
Proposition 84 and $95,000,000 of specified funds authorized for the
purposes of Proposition 50 for the purposes of a water quality,
supply, and infrastructure improvement program.  
   This bill would provide for the submission of these provisions to
the voters at the November 4, 2014, statewide general election.

   (3) This bill would declare that it is to take effect immediately
as an urgency statute.  
   Existing law authorizes the annual retail sale of safe and sane
fireworks from June 28 to July 6, inclusive, pursuant to a license
issued by the State Fire Marshal, unless otherwise prohibited or
regulated by law or ordinance. Existing law authorizes various
entities, including the State Fire Marshal, to seize certain
prohibited fireworks. Existing law requires an authority that seizes
fireworks to notify the State Fire Marshal of the seizure and to
provide specified information. Existing law requires the State Fire
Marshal to dispose of the seized fireworks and requires dangerous
fireworks to be disposed of according to specified procedures.
Existing law establishes the State Fire Marshal Fireworks Enforcement
and Disposal Fund (fund) in the State Treasury. Existing law
requires moneys in the fund to be used by the State Fire Marshal for
various purposes, including for the education of public safety
agencies in the proper handling and management of dangerous fireworks
and to further assist in public safety and education efforts within
the general public as well as public safety agencies on the proper
and responsible use of safe and sane fireworks. Existing law makes a
violation of the law and regulations relating to fireworks a crime.
 
   This bill would require the moneys in the fund to be used for the
training of public safety agencies in the proper handling and
management of dangerous fireworks and to further assist in public
safety efforts within the general public as well as public safety
agencies on the proper and responsible use, seizure, and storage of
safe and sane fireworks. The bill would also authorize moneys in the
fund to be used for the disposal of any seized fireworks and any
infrastructure requirements necessary for the disposal of fireworks
as well as used for the administration of the fund by the Office of
the State Fire Marshal or its contracted designee.  

   This bill would require, commencing January 1, 2015, a
distributor, as defined, to pay a tax upon distribution, as defined,
of safe and sane fireworks, as provided. The bill would require the
revenue from the tax to be deposited into the fund to be used for the
purposes described above. The bill would authorize the State Fire
Marshal to adjust the tax rate if the revenue in the fund is not
estimated to cover expenses. The bill would specifically exclude a
violation of these provisions from being a crime. The bill would also
authorize the seizure of safe and sane fireworks distributed in this
state by an unlicensed distributor for which the required tax has
not been paid.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 75089 is added to the 
 Public Resources Code   , to read:  
   75089.  Notwithstanding any other law, one hundred five million
dollars ($105,000,000) of the funds authorized for the purposes of
this division and set aside for the administration and bond issuance
costs are reallocated for the purposes of Division 26.7 (commencing
with Section 79700) of the Water Code. 
   SEC. 2.    Section 79591 is added to the  
Water Code   , to read:  
   79591.  Notwithstanding any other law, ninety-five million dollars
($95,000,000) of the funds authorized for the purposes of this
division and set aside for the administration and bond issuance costs
are reallocated for the purposes of Division 26.7 (commencing with
Section 79700). 
   SEC. 3.    Division 26.7 (commencing with Section
79700) of the   Water Code   , as added by Section
1 of Chapter   3 of the Seventh Extraordinary Session of the
Statutes of 2009, is repealed. 
   SEC. 4.    Division 26.7 (commencing with Section
79700) is added to the   Water Code   , to read:
 

      DIVISION 26.7.  Water Quality, Supply, and Infrastructure
Improvement Act of 2014


      CHAPTER 1.  SHORT TITLE


   79700.  This division shall be known, and may be cited, as the
Water Quality, Supply, and Infrastructure Improvement Act of 2014.
      CHAPTER 2.  FINDINGS


   79701.  The people of California find and declare all of the
following:
   (a) Safeguarding California's supply of clean and safe water for
homes, businesses, and farms is an essential responsibility of
government, and critical to protecting the quality of life for all
Californians.
   (b) Every Californian should have access to clean, safe, and
reliable drinking water.
   (c) California has been experiencing more frequent and severe
droughts and is currently enduring the worst drought in 200 years.
These droughts are magnifying the shortcomings of our current water
infrastructure.
   (d) California's water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In recent decades, however,
that infrastructure has proven inadequate to meet California's
growing needs.
   (e) This measure provides funding to implement the three
objectives of the California Water Action Plan which are more
reliable water supplies, the restoration of important species and
habitat, and a more resilient and sustainably managed water
infrastructure.
   (f) Developing and guarding our water resources is critical for
California to maintain vibrant communities, globally competitive
agriculture, and healthy ecosystems.
   (g) Encouraging water conservation and recycling are commonsense
methods to make more efficient use of existing water supplies.
   (h) Sustainable water management in California depends upon
reducing and reversing overdraft and water quality impairment of
groundwater basins. Investments to expand groundwater storage and
reduce and reverse overdraft and water quality impairment of
groundwater basins provide extraordinary public benefit and are in
the public interest.
   (i) Protecting lakes, rivers, and streams, cleaning up polluted
groundwater supplies, and preserving water sources that supply the
entire state are crucial to providing a reliable supply of water and
protecting the state's natural resources.
   (j) The Water Quality, Supply, and Infrastructure Improvement Act
of 2014 provides a comprehensive and fiscally responsible approach
for addressing the varied challenges facing California's water
resources.
      CHAPTER 3.  DEFINITIONS


   79702.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this division, as
follows:
   (a) "Acquisition" means obtaining a fee interest or any other
interest in real property, including, easements, leases, water, water
rights, or interest in water obtained for the purposes of instream
flows and development rights.
   (b) "CALFED Bay-Delta Program" means the program described in the
Record of Decision dated August 28, 2000.
   (c) "Commission" means the California Water Commission.
   (d) "Committee" means the Water Quality, Supply, and
Infrastructure Improvement Finance Committee created by Section
79787.
   (e) "Delta" means the Sacramento-San Joaquin Delta, as defined in
Section 85058.
   (f) "Delta conveyance facilities" means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the south
Delta.
   (g) "Delta counties" means the Counties of Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.
   (h) "Delta plan" has the meaning set forth in Section 85059.
   (i) "Director" means the Director of Water Resources.
   (j) "Disadvantaged community" has the meaning set forth in
subdivision (a) of Section 79505.5.
   (k) "Economically distressed area" means a municipality with a
population of 20,000 persons or less, a rural county, or a reasonably
isolated and divisible segment of a larger municipality where the
segment of the population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of the statewide
median household income, and with one or more of the following
conditions as determined by the department:
   (1) Financial hardship.
   (2) Unemployment rate at least 2 percent higher than the statewide
average.
   (3) Low population density.
   (l) "Fund" means the Water Quality, Supply, and Infrastructure
Improvement Fund of 2014 created by Section 79715.
   (m) "Instream flows" means a specific streamflow, measured in
cubic feet per second, at a particular location for a defined time,
and typically follows seasonal variations.
   (n) "Integrated regional water management plan" has the meaning
set forth in Part 2.2 (commencing with Section 10530) of Division 6,
as that part may be amended.
   (o) "Long-term" means for a period of not less than 20 years.
   (p) "Nonprofit organization" means an organization qualified to do
business in California and qualified under Section 501(c)(3) of
Title 26 of the United States Code.
   (q) "Proposition 1E" means the Disaster Preparedness and Flood
Prevention Bond Act of 2006 (Chapter 1.699 (commencing with Section
5096.800) of Division 5 of the Public Resources Code).
   (r) "Proposition 84" means the Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond Act of
2006 (Division 43 (commencing with Section 75001) of the Public
Resources Code).
   (s) "Public agency" means a state agency or department, district,
joint powers authority, city, county, city and county, or other
political subdivision of the state.
   (t) "Rainwater" has the meaning set forth in subdivision (c) of
Section 10573.
   (u) "Secretary" means the Secretary of the Natural Resources
Agency.
   (v) "Severely disadvantaged community" has the meaning set forth
in subdivision (a) of Section 116760.20 of the Health and Safety
Code.
   (w) "Small community water system" means a community water system
that serves no more than 3,300 service connections or a yearlong
population of no more than 10,000 persons.
   (x) "State board" means the State Water Resources Control Board.
   (y) "State General Obligation Bond Law" means the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code).
   (z) "State small water system" has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.
   (aa) "Stormwater" has the meaning set forth in subdivision (e) of
Section 10573.
   (ab) "Water right" means a legal entitlement authorizing water to
be diverted from a specified source and put to a beneficial,
nonwasteful use.
      CHAPTER 4.  GENERAL PROVISIONS


   79703.  An amount that equals not more than 5 percent of the funds
allocated for a grant program pursuant to this division may be used
to pay the administrative costs of that program.
   79704.  Unless otherwise specified, up to 10 percent of funds
allocated for each program funded by this division may be expended
for planning and monitoring necessary for the successful design,
selection, and implementation of the projects authorized under that
program. This section shall not otherwise restrict funds ordinarily
used by an agency for "preliminary plans," "working drawings," and
"construction" as defined in the annual Budget Act for a capital
outlay project or grant project. Water quality monitoring data shall
be collected and reported to the state board in a manner that is
compatible and consistent with surface water monitoring data systems
or groundwater monitoring data systems administered by the state
board. Watershed monitoring data shall be collected and reported to
the Department of Conservation in a manner that is compatible and
consistent with the statewide watershed program administered by the
Department of Conservation.
   79705.  Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to the
development or implementation of programs or projects authorized or
funded under this division other than Chapter 8 (commencing with
Section 79750).
   79706.  (a) Prior to disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from the
funding made available by this division to administer a competitive
grant or loan program under this division shall develop and adopt
project solicitation and evaluation guidelines. The guidelines shall
include monitoring and reporting requirements and may include a
limitation on the dollar amount of grants or loans to be awarded. If
the state agency has previously developed and adopted project
solicitation and evaluation guidelines that comply with the
requirements of this subdivision, it may use those guidelines.
   (b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior to
finalizing the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall be
conducted at a location in the central valley of California, and one
meeting shall be conducted at a location in southern California. Upon
adoption, the state agency shall transmit copies of the guidelines
to the fiscal committees and the appropriate policy committees of the
Legislature.
   79707.  It is the intent of the people that:
   (a) The investment of public funds pursuant to this division will
result in public benefits that address the most critical statewide
needs and priorities for public funding.
   (b) In the appropriation and expenditure of funding authorized by
this division, priority will be given to projects that leverage
private, federal, or local funding or produce the greatest public
benefit.
   (c) A funded project advances the purposes of the chapter from
which the project received funding.
   (d) In making decisions regarding water resources, state and local
water agencies will use the best available science to inform those
decisions.
   (e) Special consideration will be given to projects that employ
new or innovative technology or practices, including decision support
tools that support the integration of multiple jurisdictions,
including, but not limited to, water supply, flood control, land use,
and sanitation.
   (f) Evaluation of projects considered for funding pursuant to this
division will include review by professionals in the fields relevant
to the proposed project.
   (g) To the extent practicable, a project supported by funds made
available by this division will include signage informing the public
that the project received funds from the Water Quality, Supply, and
Infrastructure Improvement Act of 2014.
   (h) Projects funded with proceeds from this division will be
consistent with Division 7 (commencing with Section 13000) of this
code and Section 13100 of the Government Code.
   (i) Projects funded with proceeds from this division will promote
state planning priorities consistent with the provisions of Section
65041.1 of the Government Code and sustainable communities strategies
consistent with the provisions of subparagraph (B) of paragraph (2)
of subdivision (b) of Section 65080 of the Government Code, to the
extent feasible.
   (j) California's working agricultural and forested landscapes will
be preserved wherever possible. To the extent feasible, watershed
objectives included in this division should be achieved through use
of conservation easements and voluntary landowner participation,
including, but not limited to, the use of easements pursuant to
Division 10.2 (commencing with Section 10200) and Division 10.4
(commencing with Section 10330) of the Public Resources Code and
voluntary habitat credit exchange mechanisms.
   79708.  (a) The Department of Finance shall provide for an
independent audit of expenditures pursuant to this division. The
secretary shall publish a list of all program and project
expenditures pursuant to this division not less than annually, in
written form, and shall post an electronic form of the list on the
Natural Resources Agency's Internet Web site.
   (b) If an audit, required by statute, of any entity that receives
funding authorized by this division is conducted pursuant to state
law and reveals any malfeasance, the California State Auditor or the
Controller may conduct a full audit of any or all of the activities
of that entity.
   (c) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan.
   (d) Prior to soliciting projects pursuant to this division, state
agencies shall submit guidelines to the secretary. The secretary
shall verify that the guidelines are consistent with applicable
statutes and for all the purposes enumerated in this division. The
secretary shall post an electronic form of the guidelines submitted
by state agencies and the subsequent verifications on the Natural
Resources Agency's Internet Web site.
   79709.  (a) Funds expended pursuant to this division for the
acquisition of a permanent dedication of water shall be in accordance
with Section 1707 where the state board specifies that the water is
in addition to water that is required for regulatory requirements as
provided in subdivision (c) of Section 1707. The expenditure of funds
provided by this division may include the initiation of the
dedication as a short term or temporary urgency change, that is
approved in accordance with Section 1707 and either Chapter 6.6
(commencing with Section 1435) of, or Chapter 10.5 (commencing with
Section 1725) of, Part 2 of Division 2, during the period required to
prepare any environmental documentation and for approval of
permanent dedication.
   (b) Funds expended pursuant to this division for the acquisition
of long-term transfers of water shall be transfers in accordance with
Sections 1735, 1736, and 1737 if the state board, after providing
notice and opportunity for a hearing, approves such a petition. Funds
expended pursuant to this division shall prioritize permanent
transfers and long-term transfers of water. Long-term transfers shall
be for a period of not less than 20 years, except for any water
transfers for the benefit of subsection (d) of Section 3406 of the
Central Valley Project Improvement Act (Title 34 of Public Law
102-575).
   (c) Funds expended as described in this section shall only be used
for projects that will provide fisheries or ecosystem benefits or
improvements that are greater than required applicable environmental
mitigation measures or compliance obligations in effect at the time
the funds from this division are made available for the project and
funds shall not be credited to any such measures or obligations,
except for any water transfers for the benefit of subsection (d) of
Section 3405 of Title 34 of the Central Valley Project Improvement
Act (Title 34 of Public Law 102-575).
   79710.  (a)  Funds provided by this division shall not be expended
to pay the costs of the design, construction, operation, mitigation,
or maintenance of Delta conveyance facilities. Those costs shall be
the responsibility of the water agencies that benefit from the
design, construction, operation, mitigation, or maintenance of those
facilities.
   (b) To the extent feasible, in implementing subdivision (k) of
Section 79731, the Sacramento-San Joaquin Delta Conservancy shall
seek to achieve wildlife conservation objectives through projects on
public lands or voluntary projects on private lands. Funds available
to the Sacramento-San Joaquin Delta Conservancy pursuant to
subdivision (k) of Section 79731 may be used, in consultation with
the Department of Fish and Wildlife, for payments to landowners for
the creation of measurable habitat improvements or other improvements
to the condition of endangered or threatened species. The
Sacramento-San Joaquin Delta Conservancy may develop and implement a
competitive program for habitat enhancements that maximizes voluntary
landowner participation in projects that provide measurable and
long-lasting habitat or species improvements in the Delta. These
funds shall not be used to subsidize or decrease the mitigation
obligations of any party.
   (c) In implementing subdivision (k) of Section 79731, the
Sacramento-San Joaquin Delta Conservancy shall coordinate, cooperate,
and consult with the city or county in which a grant is proposed to
be expended or an interest in real property is proposed to be
acquired and with the Delta Protection Commission. Acquisitions by
the Sacramento-San Joaquin Delta Conservancy pursuant to subdivision
(k) of Section 79731 shall be from willing sellers only.
   79711.  (a) This division does not diminish, impair, or otherwise
affect in any manner whatsoever any area of origin, watershed of
origin, county of origin, or any other water rights protections,
including, but not limited to, rights to water appropriated prior to
December 19, 1914, provided under the law. This division does not
limit or affect the application of Article 1.7 (commencing with
Section 1215) of Chapter 1 of Part 2 of Division 2, Sections 10505,
10505.5, 11128, 11460, 11461, 11462, and 11463, and Sections 12200 to
12220, inclusive.
   (b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance of
that water through facilities that may be constructed for that
purpose after January 1, 2014.
   (c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any new
conveyance constructed or operated in accordance with Chapter 2
(commencing with Section 85320) of Part 4 of Division 35.
   (d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board's
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state board'
s existing authority to regulate the diversion and use of water or
the courts' existing concurrent jurisdiction over California water
rights.
   (e) Nothing in this division shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing with
Section 5093.50) of Division 5 of the Public Resources Code) or the
federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271 et seq.) and
funds authorized pursuant to this division shall not be available for
any project that could have an adverse effect on the values upon
which a wild and scenic river or any other river is afforded
protections pursuant to the California Wild and Scenic Rivers Act or
the federal Wild and Scenic Rivers Act.
   (f) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000)) or any other applicable
law, including, but not limited to, Division 22.3 (commencing with
Section 32300) of the Public Resources Code.
   (g) Funds provided by this division shall not be used to acquire
land via eminent domain.
   (h) Notwithstanding any other law, any agency acquiring land
pursuant to this division may use the Natural Heritage Preservation
Tax Credit Act of 2000 (Division 28 (commencing with Section 37000)
of the Public Resources Code).
   79712.  (a) Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, federally
recognized Indian tribes, state Indian tribes listed on the Native
American Heritage Commission's California Tribal Consultation List,
and mutual water companies.
   (b) (1) To be eligible for funding under this division, a project
proposed by a public utility that is regulated by the Public
Utilities Commission or a mutual water company shall have a clear and
definite public purpose and shall benefit the customers of the water
system and not the investors.
   (2) To be eligible for funding under this division, an urban water
supplier shall adopt and submit an urban water management plan in
accordance with the Urban Water Management Planning Act (Part 2.6
(commencing with Section 10610) of Division 6).
   (3) To be eligible for funding under this division, an
agricultural water supplier shall adopt and submit an agricultural
water management plan in accordance with the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section 10800) of
Division 6).
   (4) In accordance with Section 10608.56, an agricultural water
supplier or an urban water supplier is ineligible for funding under
this division unless it complies with the requirements of Part 2.55
(commencing with Section 10608) of Division 6.
   79713.  The Legislature may enact legislation necessary to
implement programs funded by this division, except as otherwise
provided in Section 79760.
   79714.  (a) Unless otherwise specified, any state agency that has
the statutory authority to implement one or more of the purposes
specified in this bond may be eligible for appropriations from the
funding made available by this division.
   (b) Funding made available by this division shall not be
appropriated by the Legislature to a specific project.
   (c) Projects funded pursuant to this division may use the services
of the California Conservation Corps or certified community
conservation corps, as defined in Section 14507.5 of the Public
Resources Code.
                                                  79715.  The
proceeds of bonds issued and sold pursuant to this division shall be
deposited in the Water Quality, Supply, and Infrastructure
Improvement Fund of 2014, which is hereby created in the State
Treasury.
   79716.  Each state agency that receives an appropriation of
funding made available by this division shall be responsible for
establishing metrics of success and reporting the status of projects
and all uses of the funding on the state's bond accountability
Internet Web site, as provided by statute.
      CHAPTER 5.  CLEAN, SAFE AND RELIABLE DRINKING WATER


   79720.  The sum of five hundred million dollars ($500,000,000)
shall be available, upon appropriation by the Legislature from the
fund, for expenditures, grants, and loans for projects that improve
water quality or help provide clean, safe, and reliable drinking
water to all Californians.
   79721.  The projects eligible for funding pursuant to this chapter
shall help improve water quality for a beneficial use. The purposes
of this chapter are to:
   (a) Reduce contaminants in drinking water supplies regardless of
the source of the water or the contamination.
   (b) Assess and prioritize the risk of contamination to drinking
water supplies.
   (c) Address the critical and immediate needs of disadvantaged,
rural, or small communities that suffer from contaminated drinking
water supplies, including, but not limited to, projects that address
a public health emergency.
   (d) Leverage other private, federal, state, and local drinking
water quality and wastewater treatment funds.
   (e) Reduce contaminants in discharges to, and improve the quality
of, waters of the state.
   (f) Prevent further contamination of drinking water supplies.
   (g) Provide disadvantaged communities with public drinking water
infrastructure that provides clean, safe, and reliable drinking water
supplies that the community can sustain over the long term.
   (h) Ensure access to clean, safe, reliable, and affordable
drinking water for California's communities.
   (i) Meet primary and secondary safe drinking water standards or
remove contaminants identified by the state or federal government for
development of a primary or secondary drinking water standard.
   79722.  The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
selenium, hexavalent chromium, mercury, PCE (perchloroethylene), TCE
(trichloroethylene), DCE (dichloroethene), DCA (dichloroethane),
1,2,3-TCP (trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron, manganese,
and uranium.
   79723.  Of the funds authorized by Section 79720, two hundred
fifty million dollars ($250,000,000) shall be available for deposit
in the State Water Pollution Control Revolving Fund Small Community
Grant Fund created pursuant to Section 13477.6 for grants for
wastewater treatment projects. Priority shall be given to projects
that serve disadvantaged communities and severely disadvantaged
communities, and to projects that address public health hazards.
Projects may include, but not be limited to, projects that identify,
plan, design, and implement regional mechanisms to consolidate
wastewater systems or provide affordable treatment technologies.
   79724.  (a) (1) Of the funds authorized by Section 79720, two
hundred fifty million dollars ($250,000,000) shall be available for
grants and loans for public water system infrastructure improvements
and related actions to meet safe drinking water standards, ensure
affordable drinking water, or both. Priority shall be given to
projects that provide treatment for contamination or access to an
alternate drinking water source or sources for small community water
systems or state small water systems in disadvantaged communities
whose drinking water source is impaired by chemical and nitrate
contaminants and other health hazards identified by the state board.
Eligible recipients serve disadvantaged communities and are public
water systems or public agencies. The state board may make grants for
the purpose of financing feasibility studies and to meet the
eligibility requirements for a construction grant. Eligible expenses
may include initial operation and maintenance costs for systems
serving disadvantaged communities. Priority shall be given to
projects that provide shared solutions for multiple communities, at
least one of which is a disadvantaged community that lacks safe,
affordable drinking water and is served by a small community water
system, state small water system, or a private well. Construction
grants shall be limited to five million dollars ($5,000,000) per
project, except that the state board may set a limit of not more than
twenty million dollars ($20,000,000) for projects that provide
regional benefits or are shared among multiple entities, at least one
of which shall be a small disadvantaged community. Not more than 25
percent of a grant may be awarded in advance of actual expenditures.
   (2) For the purposes of this subdivision, "initial operation and
maintenance costs" means those initial, eligible, and reimbursable
costs under a construction funding agreement that are incurred up to,
and including, initial startup testing of the constructed project in
order to deem the project complete. Initial operation and
maintenance costs are eligible to receive funding pursuant to this
section for a period not to exceed two years.
   (b) The administering entity may expend up to twenty-five million
dollars ($25,000,000) of the funds allocated in subdivision (a) for
technical assistance to eligible communities.
   (c) The state board shall deposit up to two million five hundred
thousand dollars ($2,500,000) of the funds available pursuant to this
section into the Drinking Water Capital Reserve Fund, which is
hereby created in the State Treasury. Moneys in the Drinking Water
Capital Reserve Fund shall be available, upon appropriation by the
Legislature, and shall be administered by the state board for the
purpose of serving as matching funds for disadvantaged communities.
The state board shall develop criteria to implement this subdivision.

   79725.  (a) For the purposes of awarding funding under this
chapter, a local cost share of not less than 50 percent of the total
costs of the project shall be required. The cost-sharing requirement
may be waived or reduced for projects that directly benefit a
disadvantaged community or an economically distressed area.
   (b) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.
   (c) Up to 20 percent of the funds available pursuant to this
chapter may be allocated for technical assistance to disadvantaged
communities. The agency administering this funding shall operate a
multidisciplinary technical assistance program for small and
disadvantaged communities.
   (d) Funding for planning activities, including technical
assistance, to benefit disadvantaged communities may exceed 20
percent of the funds allocated, subject to the determination of the
need for additional planning funding by the state agency
administering the funding.
      CHAPTER 6.  PROTECTING RIVERS, LAKES, STREAMS, COASTAL WATERS,
AND WATERSHEDS


   79730.  The sum of one billion four hundred seventy million
dollars ($1,470,000,000) shall be available, upon appropriation by
the Legislature from the fund, in accordance with this chapter, for
competitive grants for multibenefit ecosystem and watershed
protection and restoration projects in accordance with statewide
priorities.
   79731.  Of the funds authorized by Section 79730, the sum of three
hundred two million five hundred thousand dollars ($302,500,000)
shall be allocated for multibenefit water quality, water supply, and
watershed protection and restoration projects for the watersheds of
the state in accordance with the following schedule:
   (a) Baldwin Hills Conservancy, ten million dollars ($10,000,000).
   (b) California Tahoe Conservancy, fifteen million dollars
($15,000,000).
   (c) Coachella Valley Mountains Conservancy, ten million dollars
($10,000,000).
   (d) Ocean Protection Council, thirty million dollars
($30,000,000).
   (e) San Diego River Conservancy, seventeen million dollars
($17,000,000).
   (f) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy, twenty-five million dollars ($25,000,000).
   (g) San Joaquin River Conservancy, ten million dollars
($10,000,000).
   (h) Santa Monica Mountains Conservancy, thirty million dollars
($30,000,000).
   (i) Sierra Nevada Conservancy, twenty-five million dollars
($25,000,000).
   (j) State Coastal Conservancy, eighty million five hundred
thousand dollars ($80,500,000).
   (k) Sacramento-San Joaquin Delta Conservancy, fifty million
dollars ($50,000,000).
   79732.  (a) In protecting and restoring California rivers, lakes,
streams, and watersheds, the purposes of this chapter are to:
   (1) Protect and increase the economic benefits arising from
healthy watersheds, fishery resources, and instream flow.
   (2) Implement watershed adaptation projects in order to reduce the
impacts of climate change on California's communities and
ecosystems.
   (3) Restore river parkways throughout the state, including, but
not limited to, projects pursuant to the California River Parkways
Act of 2004 (Chapter 3.8 (commencing with Section 5750) of Division 5
of the Public Resources Code), in the Urban Streams Restoration
Program established pursuant to Section 7048, and urban river
greenways.
   (4) Protect and restore aquatic, wetland, and migratory bird
ecosystems, including fish and wildlife corridors and the acquisition
of water rights for instream flow.
   (5) Fulfill the obligations of the State of California in
complying with the terms of multiparty settlement agreements related
to water resources.
   (6) Remove barriers to fish passage.
   (7) Collaborate with federal agencies in the protection of fish
native to California and wetlands in the central valley of
California.
   (8) Implement fuel treatment projects to reduce wildfire risks,
protect watersheds tributary to water storage facilities, and promote
watershed health.
   (9) Protect and restore rural and urban watershed health to
improve watershed storage capacity, forest health, protection of life
and property, stormwater resource management, and greenhouse gas
reduction.
   (10) Protect and restore coastal watersheds, including, but not
limited to, bays, marine estuaries, and nearshore ecosystems.
   (11) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters, prevent and remediate mercury contamination from
legacy mines, and protect or restore natural system functions that
contribute to water supply, water quality, or flood management.
   (12) Assist in the recovery of endangered, threatened, or
migratory species by improving watershed health, instream flows, fish
passage, coastal or inland wetland restoration, or other means, such
as natural community conservation plan and habitat conservation plan
implementation.
   (13) Assist in water-related agricultural sustainability projects.

   (b) Funds provided by this chapter shall only be used for projects
that will provide fisheries or ecosystem benefits or improvements
that are greater than required applicable environmental mitigation
measures or compliance obligations.
   79733.  Of the funds made available by Section 79730, the sum of
two hundred million dollars ($200,000,000) shall be administered by
the Wildlife Conservation Board for projects that result in enhanced
stream flows.
   79734.  For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or a
local conservation corps certified by the California Conservation
Corps shall be used whenever feasible.
   79735.  (a) Of the funds authorized by Section 79730, one hundred
million dollars ($100,000,000) shall be available for projects to
protect and enhance an urban creek, as defined in subdivision (e) of
Section 7048, and its tributaries, pursuant to Chapter 3.8
(commencing with Section 5750) of Division 5 of, Division 22.8
(commencing with Section 32600) of, and Division 23 (commencing with
Section 33000) of, the Public Resources Code and Section 79508.
   (b) (1) Of the funds authorized by Section 79730, twenty million
dollars ($20,000,000) shall be made available to the secretary for a
competitive program to fund multibenefit watershed and urban rivers
enhancement projects in urban watersheds that increase regional and
local water self-sufficiency and that meet at least two of the
following objectives:
   (A) Promote groundwater recharge and water reuse.
   (B) Reduce energy consumption.
   (C) Use soils, plants, and natural processes to treat runoff.
   (D) Create or restore native habitat.
   (E) Increase regional and local resiliency and adaptability to
climate change.
   (2) The program under this subdivision shall be implemented by
state conservancies, the Wildlife Conservation Board, the state
board, or other entities whose jurisdiction includes urban
watersheds, as designated by the secretary. Projects funded under the
program shall be a part of a plan developed jointly by the
conservancies, the Wildlife Conservation Board, the state board, or
other designated entities in consultation with the secretary.
   (c) At least 25 percent of the funds available pursuant to this
section shall be allocated for projects that benefit disadvantaged
communities.
   (d) Up to 10 percent of the funds available pursuant to this
section may be allocated for project planning.
   79736.  Of the funds authorized by Section 79730, four hundred
seventy-five million dollars ($475,000,000) shall be available to the
Natural Resources Agency to support projects that fulfill the
obligations of the State of California in complying with the terms of
the following:
   (a) The February 18, 2010, Klamath Hydroelectric Settlement
Agreement or the Klamath Basin Restoration Agreement.
   (b) Chapters 611, 612, and 613 of the Statutes of 2003, which were
enacted to facilitate the execution and implementation of the
Quantification Settlement Agreement, including restoration of the
Salton Sea.
   (c) The San Joaquin River Restoration Settlement Act (Part 1 of
Subtitle A of Title 10 of Public Law 111-11).
   (d) Tahoe Regional Planning Compact (Title 7.4 (commencing with
Section 66800) of the Government Code).
   (e) Subsection (d) of Section 3406 of the Central Valley Project
Improvement Act (Title 34 of Public Law 102-575), including the
construction, retrofitting, and maintenance of water supply
infrastructure and the acquisition and conveyance of water supply
from willing sellers, with a preference for water transfers of 20
years or longer, purchases of water rights, or other agreements that
result in long-term enhancement of habitat conditions.
   79737.  (a) Of the funds authorized by Section 79730, two hundred
eighty-five million dollars ($285,000,000) shall be available to the
Department of Fish and Wildlife for watershed restoration projects
statewide in accordance with this chapter.
   (b) For the purposes of this section, watershed restoration
includes activities to fund coastal wetland habitat, improve forest
health, restore mountain meadows, modernize stream crossings,
culverts, and bridges, reconnect historical flood plains, install or
improve fish screens, provide fish passages, restore river channels,
restore or enhance riparian, aquatic, and terrestrial habitat,
improve ecological functions, acquire from willing sellers
conservation easements for riparian buffer strips, and remove
sediment or trash.
   (c) For any funds available pursuant to this section that are used
to provide grants under the Fisheries Restoration Grant Program, a
priority shall be given to coastal waters.
   (d) In allocating funds for projects pursuant to this section, the
Department of Fish and Wildlife shall only make funds available for
water quality, river, and watershed protection and restoration
projects of statewide importance outside of the Delta.
   (e) Funds provided by this section shall not be expended to pay
the costs of the design, construction, operation, mitigation, or
maintenance of Delta conveyance facilities.
   (f) Funds provided by this section shall only be used for projects
that will provide fisheries or ecosystem benefits or improvements
that are greater than required applicable environmental mitigation
measures or compliance obligations, except for any water transfers
for the benefit of subsection (d) of Section 3406 of the Central
Valley Project Improvement Act (Title 34 of Public Law 102-575).
   79738.  (a) Of the funds authorized by Section 79730, eighty-seven
million five hundred thousand dollars ($87,500,000) shall be
available to the Department of Fish and Wildlife for water quality,
ecosystem restoration, and fish protection facilities that benefit
the Delta, including, but not limited to, the following:
   (1) Projects to improve water quality or that contribute to the
improvement of water quality in the Delta, including projects in
Delta counties that provide multiple public benefits and improve
drinking and agricultural water quality or water supplies.
   (2) Habitat restoration, conservation, and enhancement projects to
improve the condition of special status, at risk, endangered, or
threatened species in the Delta and the Delta counties, including
projects to eradicate invasive species, and projects that support the
beneficial reuse of dredged material for habitat restoration and
levee improvements.
   (3) Scientific studies and assessments that support the Delta
Science Program, as described in Section 85280, or projects under
this section.
   (b) (1) In implementing this section, the department shall
coordinate and consult with the Delta city or Delta county in which a
grant is proposed to be expended or an interest in real property is
proposed to be acquired.
   (2) To the extent feasible, the department shall use local
partners.
   (c) Acquisitions pursuant to this section shall be from willing
sellers only.
   (d) In implementing this section state agencies shall prioritize
wildlife conservation objectives through projects on public lands or
voluntary projects on private lands, to the extent feasible.
   (e) Funds available pursuant to this section shall not be used to
acquire land via eminent domain.
   (f) Funds available pursuant to this section shall not be expended
to pay the costs of the design, construction, operation, mitigation,
or maintenance of Delta conveyance facilities.
      CHAPTER 7.  REGIONAL WATER SECURITY, CLIMATE, AND DROUGHT
PREPAREDNESS


   79740.  The sum of seven hundred eighty million dollars
($780,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures on, and competitive
grants and loans to, projects that are included in and implemented in
an adopted integrated regional water management plan consistent with
Part 2.2 (commencing with Section 10530) of Division 6 and respond
to climate change and contribute to regional water security as
provided in this chapter.
   79741.  In order to improve regional water self-reliance security
and adapt to the effects on water supply arising out of climate
change, the purposes of this chapter are to:
   (a) Help water infrastructure systems adapt to climate change,
including, but not limited to, sea level rise.
   (b) Provide incentives for water agencies throughout each
watershed to collaborate in managing the region's water resources and
setting regional priorities for water infrastructure.
   (c) Improve regional water self-reliance consistent with Section
85021.
   79742.  (a) In selecting among proposed projects in a watershed,
the scope of the adopted integrated regional water management plan
may be considered by the administering state agency, with priority
going to projects in plans that cover a greater portion of the
watershed. If a plan covers substantially all of the watershed, the
plan's project priorities shall be given deference if the project and
plan otherwise meet the requirements of this division and the
Integrated Regional Water Management Planning Act (Part 2.2
(commencing with Section 10530) of Division 6).
   (b) A local agency that does not prepare, adopt, and submit its
groundwater plan in accordance with groundwater planning requirements
established under Division 6 (commencing with Section 10000) is
ineligible to apply for funds made available pursuant to this chapter
until the plan is prepared and submitted in accordance with the
requirements of that part. The groundwater management plan
requirement shall not apply to a water replenishment district formed
pursuant to Division 18 (commencing with Section 60000) or to a local
agency that serves or has authority to manage an adjudicated
groundwater basin.
   (c) For the purposes of awarding funding under this chapter, a
cost share from nonstate sources of not less than 50 percent of the
total costs of the project shall be required. The cost-sharing
requirement may be waived or reduced for projects that directly
benefit a disadvantaged community or an economically distressed area.

   (d) Not less than 10 percent of the funds authorized by this
chapter shall be allocated to projects that directly benefit
disadvantaged communities.
   (e) For the purposes of awarding funding under this chapter, the
applicant shall demonstrate that the integrated regional water
management plan the applicant's project implements contributes to
addressing the risks in the region to water supply and water
infrastructure arising from climate change.
   (f) Projects that achieve multiple benefits shall receive special
consideration.
   79743.  Subject to the determination of regional priorities in the
regional water management group, eligible projects may include, but
are not limited to, projects that promote any of the following:
   (a) Water reuse and recycling for nonpotable reuse and direct and
indirect potable reuse.
   (b) Water-use efficiency and water conservation.
   (c) Local and regional surface and underground water storage,
including groundwater aquifer cleanup or recharge projects.
   (d) Regional water conveyance facilities that improve integration
of separate water systems.
   (e) Watershed protection, restoration, and management projects,
including projects that reduce the risk of wildfire or improve water
supply reliability.
   (f) Stormwater resource management, including, but not limited to,
the following:
   (1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.
   (2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.
   (3) Decision support tools that evaluate the benefits and costs of
multibenefit stormwater projects.
   (4) Projects to implement a stormwater resource plan developed in
accordance with Part 2.3 (commencing with Section 10560) of Division
6.
   (g) Conjunctive use of surface and groundwater storage facilities.

   (h) Water desalination projects.
   (i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections.

(j) Improvement of water quality, including drinking water treatment
and distribution, groundwater and aquifer remediation, matching water
quality to water use, wastewater treatment, water pollution
prevention, and management of urban and agricultural runoff.
   79744.  (a) Of the funds authorized by Section 79740, four hundred
eighty million dollars ($480,000,000) shall be allocated to the
hydrologic regions as identified in the California Water Plan in
accordance with this section. For the South Coast hydrologic region,
the department shall establish three funding areas that reflect the
watersheds of San Diego County (designated as the San Diego
subregion), the Santa Ana River watershed and southern Orange County
(designated as the Santa Ana subregion), and the Los Angeles and
Ventura County watersheds (designated as the Los Angeles subregion),
and shall allocate funds to those areas in accordance with this
subdivision. The North and South Lahontan hydrologic regions shall be
treated as one area for the purpose of allocating funds. For
purposes of this subdivision, the Sacramento River hydrologic region
does not include the Delta. For purposes of this subdivision, the
Mountain Counties Overlay is not eligible for funds from the
Sacramento River hydrologic region or the San Joaquin River
hydrologic region. Multiple integrated regional water management
plans may be recognized in each of the areas allocated funding.
   (b) Funds made available by this chapter shall be allocated as
follows:
   (1) Twenty-one million five hundred thousand dollars ($21,500,000)
for the North Coast hydrologic region.
   (2) Sixty-five million dollars ($65,000,000) for the San Francisco
Bay hydrologic region.
   (3) Twenty-eight million dollars ($28,000,000) for the Central
Coast hydrologic region.
   (4) Ninety-eight million dollars ($98,000,000) for the Los Angeles
subregion.
   (5) Sixty-three million dollars ($63,000,000) for the Santa Ana
subregion.
   (6)  Forty-two million five hundred thousand dollars ($42,500,000)
for the San Diego subregion.
   (7) Thirty-seven million dollars ($37,000,000) for the Sacramento
River hydrologic region.
   (8) Thirty-one million dollars ($31,000,000) for the San Joaquin
River hydrologic region.
   (9) Thirty-four million dollars ($34,000,000) for the Tulare/Kern
hydrologic region.
   (10) Twenty-four million five hundred thousand dollars
($24,500,000) for the North/South Lahontan hydrologic region.
   (11) Twenty-two million five hundred thousand dollars
($22,500,000) for the Colorado River Basin hydrologic region.
   (12) Thirteen million dollars ($13,000,000) for the Mountain
Counties Overlay.
   79745.  The Department of Water Resources shall expend, either
directly or for noncompetitive grants, no less than 10 percent of the
funds from the regional allocations specified in Section 79744 for
the purposes of ensuring involvement of disadvantaged communities,
economically distressed areas, or underrepresented communities within
regions.
   79746.  (a) Of the funds authorized by Section 79740, the sum of
one hundred million dollars ($100,000,000) may be used for direct
expenditures, and for grants and loans, for the following water
conservation and water-use efficiency plans, projects, and programs:
   (1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:
   (A) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost effective.
   (B) Support water supplier and regional efforts to implement
programs targeted to enhance water-use efficiency for commercial,
industrial, and institutional water users.
   (C) Assist water suppliers and regions with programs and measures
targeted toward realizing the conservation benefits of implementation
of the provisions of the state landscape model ordinance.
   (2) Agricultural water management plans or agricultural water use
efficiency projects and programs developed pursuant to Part 2.8
(commencing with Section 10800) of Division 6.
   (b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit the
application of Section 1011 to any other measures or projects
implemented by a water supplier. Notwithstanding Section 79748, the
projects funded pursuant to this section are not required to be in an
adopted integrated regional water management plan or to comply with
that program.
   79747.  (a) Of the funds authorized by Section 79740, two hundred
million dollars ($200,000,000) shall be available for grants for
multibenefit stormwater management projects.
   (b) Eligible projects may include, but shall not be limited to,
green infrastructure, rainwater and stormwater capture projects, and
stormwater treatment facilities.
   (c) Development of plans for stormwater projects shall address the
entire watershed and incorporate the perspectives of communities
adjacent to the affected waterways, especially disadvantaged
communities.
   79748.  In order to receive funding authorized by this chapter to
address groundwater quality or supply in an aquifer, the applicant
shall demonstrate that a public agency has authority to manage the
water resources in that aquifer. A groundwater management plan
adopted and submitted in accordance with groundwater management
planning requirements established under Division 6 (commencing with
Section 10000) shall be deemed sufficient to satisfy the requirements
of this section.
      CHAPTER 8.  STATEWIDE WATER SYSTEM OPERATIONAL IMPROVEMENT AND
DROUGHT PREPAREDNESS


   79750.  (a) Notwithstanding Section 162, the commission may make
the determinations, findings, and recommendations required of it by
this chapter independent of the views of the director. All final
actions by the commission in implementing this chapter shall be taken
by a majority of the members of the commission at a public meeting
noticed and held pursuant to the Bailey-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code).
   (b) Notwithstanding Section 13340 of the Government Code, the sum
of two billion five hundred million dollars ($2,500,000,000) is
hereby continuously appropriated from the fund, without regard to
fiscal years, to the commission for public benefits associated with
water storage projects that improve the operation of the state water
system, are cost effective, and provide a net improvement in
ecosystem and water quality conditions, in accordance with this
chapter. Funds authorized for, or made available to, the commission
pursuant to this chapter shall be available and expended only for the
purposes provided in this chapter, and shall not be subject to
appropriation or transfer by the Legislature or the Governor for any
other purpose.
   (c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on the
expected return for public investment as measured by the magnitude
of the public benefits provided, pursuant to criteria established
under this chapter.
   (d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.
   79751.  Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:
   (a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, except for
projects prohibited by Chapter 1.4 (commencing with Section 5093.50)
of Division 5 of the Public Resources Code.
   (b) Groundwater storage projects and groundwater contamination
prevention or remediation projects that provide water storage
benefits.
   (c) Conjunctive use and reservoir reoperation projects.
   (d) Local and regional surface storage projects that improve the
operation of water systems in the state and provide public benefits.
   79752.  A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem or
to the tributaries to the Delta.
   79753.  (a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:
   (1) Ecosystem improvements, including changing the timing of water
diversions, improvement in flow conditions, temperature, or other
benefits that contribute to restoration of aquatic ecosystems and
native fish and wildlife, including those ecosystems and fish and
wildlife in the Delta.
   (2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust resources, or that
clean up and restore groundwater resources.
   (3) Flood control benefits, including, but not limited to,
increases in flood reservation space in existing reservoirs by
exchange for existing or increased water storage capacity in response
to the effects of changing hydrology and decreasing snow pack on
California's water and flood management system.
   (4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.
   (5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.
   (b) Funds shall not be expended pursuant to this chapter for the
costs of environmental mitigation measures or compliance obligations
except for those associated with providing the public benefits as
described in this section.
   79754.  In consultation with the Department of Fish and Wildlife,
the state board, and the Department of Water Resources, the
commission shall develop and adopt, by regulation, methods for
quantification and management of public benefits described in Section
79753 by December 15, 2016. The regulations shall include the
priorities and relative environmental value of ecosystem benefits as
provided by the Department of Fish and Wildlife and the priorities
and relative environmental value of water quality benefits as
provided by the state board.
   79755.  (a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2016, and until the commission approves the
project based on the commission's determination that all of the
following have occurred:
   (1) The commission has adopted the regulations specified in
Section 79754 and specifically quantified and made public the cost of
the public benefits associated with the project.
   (2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as
defined in Section 79753, from the project that ensures the party
will pay its share of the total costs of the project. The benefits
available to a party shall be consistent with that party's share of
total project costs.
   (3) The project applicant has entered into a contract with each
public agency identified in Section 79754 that administers the public
benefits, after that agency makes a finding that the public benefits
of the project for which that agency is responsible meet all the
requirements of this chapter, to ensure that the public contribution
of funds pursuant to this chapter achieves the public benefits
identified for the project.
   (4) The commission has held a public hearing for the purposes of
providing an opportunity for the public to review and comment on the
information required to be prepared pursuant to this subdivision.
   (5) All of the following additional conditions are met:
   (A) Feasibility studies have been completed.
   (B) The commission has found and determined that the project is
feasible, is consistent with all applicable laws and regulations, and
will advance the long-term objectives of restoring ecological health
and improving water management for beneficial uses of the Delta.
   (C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local
approvals, certifications, and agreements required to be completed
have been obtained.
   (b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.
   (c) Notwithstanding subdivision (a), funds may be made available
under this chapter for the completion of environmental documentation
and permitting of a project.
   79756.  (a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79751, shall not exceed 50 percent of the
total costs of any project funded under this chapter.
   (b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79753 that are at least 50 percent of total public benefits
of the project funded under this chapter.
   79757.  (a) A project is not eligible for funding under this
chapter unless, by January 1, 2022, all of the following conditions
are met:
   (1) All feasibility studies are complete and draft environmental
documentation is available for public review.
   (2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.
   (3) The director receives commitments for not less than 75 percent
of the nonpublic benefit cost share of the project.
   (b) If compliance with subdivision (a) is delayed by litigation or
failure to promulgate regulations, the date in subdivision (a) shall
be extended by the commission for a time period that is equal to the
time period of the delay, and funding under this chapter that has
been dedicated to the project shall be encumbered until the time at
which the litigation is completed or the regulations have been
promulgated.
   79758.  Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79751 may be made a unit
of the Central Valley Project as provided in Section 11290 and may be
financed, acquired, constructed, operated, and maintained pursuant
to Part 3 (commencing with Section 11100) of Division 6.
   79759.  (a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED
Bay-Delta Record of Decision, dated August 28, 2000, pursuant to this
chapter may be provided for those purposes to local joint powers
authorities formed by irrigation districts and other local water
districts and local governments within the applicable hydrologic
region to design, acquire, and construct those projects.
   (b) The joint powers authorities described in subdivision (a) may
include in their membership governmental partners that are not
located within their respective hydrologic regions in financing the
surface storage projects, including, as appropriate, cost share
participation or equity participation. Notwithstanding Section 6525
of the Government Code, the joint powers agencies described in
subdivision (a) shall not include in their membership any for-profit
corporation or any mutual water company whose shareholders and
members include a for-profit corporation or any other private entity.
The department shall be an ex officio member of each joint powers
authority subject to this section, but the department shall not
control the governance, management, or operation of the surface water
storage projects.
   (c) A joint powers authority subject to this section shall own,
govern, manage, and operate a surface water storage project, subject
to the requirement that the ownership, governance, management, and
operation of the surface water storage project shall advance the
purposes set forth in this chapter.
   79760.  (a) In approving the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, the people were informed and
hereby declare that the provisions of this chapter are necessary,
integral, and essential to meeting the single object or work of the
Water Quality, Supply, and Infrastructure Improvement Act of 2014. As
such, any amendment of the provisions of this chapter by the
Legislature without voter approval would frustrate the scheme and
design that induced voter approval of this act. The people therefore
find and declare that any amendment of the provisions of this chapter
by the Legislature shall require an affirmative vote of two-thirds
of the membership in each house of the Legislature and voter
approval.
   (b) This section shall not govern or be used as authority for
determining whether the amendment of any other provision of this act
not contained in this chapter would constitute a substantial change
in the scheme and design of this act requiring voter approval.
      CHAPTER 9.  WATER RECYCLING


   79765.  The sum of seven hundred million dollars ($700,000,000)
shall be available, upon appropriation by the Legislature from the
fund, for grants or loans for water recycling and advanced treatment
technology projects, including all of the following:
   (a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.
   (b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination and associated
treatment, storage, conveyance, and distribution facilities.
   (c) Dedicated distribution infrastructure to serve residential,
commercial, agricultural, and industrial end-user retrofit projects
to allow use of recycled water.
   (d) Pilot projects for new potable reuse and other salt and
contaminant removal technology.
   (e) Groundwater recharge infrastructure pursuant to this chapter
and Chapter 10 (commencing with Section 79770).
   (f) Technical assistance and grant writing assistance for
disadvantaged communities.
   (g) Water supply reliability improvement for critical urban water
supplies in designated superfund areas with groundwater contamination
listed on the National Priorities List established pursuant to
Section 105 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9605(a)(8)
(B)).
   79766.  At least a 50-percent local cost share shall be required
for projects funded pursuant to this chapter. That cost share may be
suspended or reduced for disadvantaged communities and economically
distressed areas.
   79767.  Projects funded pursuant to this chapter shall be selected
on a competitive basis, considering all of the following criteria:
   (a) Water supply reliability improvement.
   (b) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.
   (c) Public health benefits from improved drinking water quality or
supply.
   (d) Cost-effectiveness.
   (e) Energy efficiency and greenhouse gas emission impacts.
   (f) Reasonable geographic allocation to eligible projects
throughout the state, including both northern and southern California
and coastal and inland regions.
   79768.  For purposes of this chapter, competitive programs shall
be implemented consistent with water recycling programs administered
pursuant to Sections 79140 and 79141 or consistent with desalination
programs administered pursuant to Sections 79545 and 79547.2.
      CHAPTER 10.  GROUNDWATER SUSTAINABILITY


   79770.  Prevention and cleanup of groundwater contamination are
critical components of successful groundwater management. Groundwater
quality becomes especially important as water providers do the
following:
   (a) Evaluate investments in groundwater recharge with surface
water, stormwater, recycled water, and other conjunctive use projects
that augment local groundwater supplies to improve regional water
self-reliance.
   (b) Adapt to changing hydrologic conditions brought on by climate
change.
   (c) Consider developing groundwater basins to provide much needed
local storage options to accommodate hydrologic and regulatory
variability in the state's water delivery system.
   (d) Evaluate investments in groundwater recovery projects.
   79771.  (a) The sum of eight hundred fifty million dollars
($850,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures on, and competitive
grants, and loans for, projects to prevent or clean up the
contamination of groundwater that serves or has served as a source of
drinking water. Funds appropriated pursuant to this section shall be
available to the state board for projects necessary to protect
public health by preventing or reducing the contamination of
groundwater that serves or has served as a major source of drinking
water for a community.
   (b) Projects shall be prioritized based upon the following
criteria:
   (1) The threat posed by groundwater contamination to the affected
community's overall drinking water supplies, including an urgent need
for treatment of alternative supplies or increased water imports if
groundwater is not available due to contamination.
   (2) The potential for groundwater contamination to spread and
impair drinking water supply and water storage for nearby population
areas.
   (3) The potential of the project, if fully implemented, to enhance
local water supply reliability.
   (4) The potential of the project to maximize opportunities to
recharge vulnerable, high-use groundwater basins and optimize
groundwater supplies.
   (5) The project addresses contamination at a site for which the
courts or the appropriate regulatory authority has not yet identified
responsible parties, or where the identified responsible parties are
unwilling or unable to pay for the total cost of cleanup.
   (c) The Legislature, by statute, shall establish both of the
following:
   (1) A requirement that the grantee repay grant funds in the event
of cost recovery from the parties responsible for the groundwater
contamination.
   (2) A requirement that the grantee make reasonable efforts to
attempt to recover the costs of cleanup from the parties responsible
for the contamination, except that a grantee shall not be required to
seek cost recovery related to the costs of response actions
apportioned to responsible parties who are insolvent or cannot be
identified or located or when a requirement to seek cost recovery
would impose a financial hardship on the grantee.
   79772.  Of the funds authorized by Section 79771, seventy-five
million dollars ($75,000,000) shall be available for grants for
treatment and remediation activities that prevent or reduce the
contamination of groundwater that serves as a source of drinking
water. Nothing in this section precludes the funding of projects
pursuant to Section 79771.
   79773.  The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
selenium, hexavalent chromium, mercury, PCE (perchloroethylene), TCE
(trichloroethylene), DCE (dichloroethene), DCA (dichloroethane),
1,2,3-TCP
(trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron, manganese,
and uranium.
   79774.  (a) A project that receives funding pursuant to this
chapter shall be selected by a competitive grant or loan process with
added consideration for those projects that leverage private,
federal, or local funding.
   (b) For the purposes of awarding funding under this chapter, a
local cost share of not less than 50 percent of the total costs of
the project shall be required. The cost-sharing requirement may be
waived or reduced for projects that directly benefit a disadvantaged
community or an economically distressed area.
   (c) An agency administering grants or loans for the purposes of
this chapter shall assess the capacity of a community to pay for the
operation and maintenance of the facility to be funded.
   (d) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.
   (e) Funding authorized by this chapter shall include funding for
technical assistance to disadvantaged communities. The agency
administering this funding shall operate a multidisciplinary
technical assistance program for small and disadvantaged communities.

   79775.  Of the funds authorized by Section 79771, one hundred
million dollars ($100,000,000) shall be made available for
competitive grants for projects that develop and implement
groundwater plans and projects in accordance with groundwater
planning requirements established under Division 6 (commencing with
Section 10000).
      CHAPTER 11.  FLOOD MANAGEMENT


   79780.  The sum of three hundred ninety-five million dollars
($395,000,000) shall be available, upon appropriation by the
Legislature from the fund, to the Department of Water Resources and
the Central Valley Flood Protection Board for the purpose of
statewide flood management projects and activities. Priority shall be
given to multibenefit projects that achieve public safety and
include fish and wildlife enhancement and recreation. The Department
of Water Resources shall make its best effort to first utilize prior
bond proceeds from Propositions 84 and 1E.
   79781.  Of the funds authorized by Section 79780, two hundred
ninety-five million dollars ($295,000,000) shall be available to
reduce the risk of levee failure and flood in the Delta for any of
the following:
   (a) Local assistance under the Delta levee maintenance subventions
program pursuant to Part 9 (commencing with Section 12980) of
Division 6, as that part may be amended.
   (b) Special flood protection projects pursuant to Chapter 2
(commencing with Section 12310) of Part 4.8 of Division 6, as that
chapter may be amended.
   (c) Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.
   (d) Emergency response and repair projects.
      CHAPTER 12.  FISCAL PROVISIONS


   79785.  (a) Bonds in the total amount of six billion nine hundred
ninety-five million dollars ($6,995,000,000), or so much thereof as
is necessary, not including the amount of any refunding bonds issued
in accordance with Section 79797 may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
division and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of both principal of, and interest on, the bonds as the principal
and interest become due and payable.
   (b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
   79786.  The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
division and are hereby incorporated in this division as though set
forth in full in this division, except Section 16727 of the
Government Code shall not apply to the extent that it is inconsistent
with any other provision of this division.
   79787.  (a) Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code) of the bonds authorized by this division, the
Water Quality, Supply, and Infrastructure Improvement Finance
Committee is hereby created. For purposes of this division, the Water
Quality, Supply, and Infrastructure Improvement Finance Committee is
the "committee" as that term is used in the State General Obligation
Bond Law.
   (b) The committee consists of the Director of Finance, the
Treasurer, and the Controller. Notwithstanding any other provision of
law, any member may designate a representative to act as that member
in his or her place for all purposes, as though the member were
personally present.
   (c) The Treasurer shall serve as chairperson of the committee.
   (d) A majority of the committee may act for the committee.
   79788.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized by this division in
order to carry out the actions specified in this division and, if so,
the amount of bonds to be issued and sold. Successive issues of
bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   79789.  For purposes of the State General Obligation Bond Law,
"board," as defined in Section 16722 of the Government Code, means
the secretary.
   79790.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year. It is
the duty of all officers charged by law with any duty in regard to
the collection of the revenue to do and perform each and every act
that is necessary to collect that additional sum.
   79791.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this division, an amount that will
equal the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.
   (b) The sum that is necessary to carry out the provisions of
Section 79794, appropriated without regard to fiscal years.
   79792.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Government Code for the purpose of carrying
out this division less any amount withdrawn pursuant to Section
79794. The amount of the request shall not exceed the amount of the
unsold bonds that the committee has, by resolution, authorized to be
sold for the purpose of carrying out this division. The board shall
execute those documents required by the Pooled Money Investment Board
to obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated in accordance with this division.
   79793.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds that include a bond counsel opinion to the effect that the
interest on the bonds is excluded from gross income for federal tax
purposes under designated conditions or is otherwise entitled to any
federal tax advantage, the Treasurer may maintain separate accounts
for the bond proceeds invested and for the investment earnings on
those proceeds, and may use or direct the use of those proceeds or
earnings to pay any rebate, penalty, or other payment required under
federal law or take any other action with respect to the investment
and use of those bond proceeds, as may be required or desirable under
federal law in order to maintain the tax-exempt status of those
bonds and to obtain any other advantage under federal law on behalf
of the funds of this state.
   79794.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the committee to be sold for the
purpose of carrying out this division less any amount borrowed
pursuant to Section 79792. Any amounts withdrawn shall be deposited
in the fund. Any moneys made available under this section shall be
returned to the General Fund, with interest at the rate earned by the
moneys in the Pooled Money Investment Account, from proceeds
received from the sale of bonds for the purpose of carrying out this
division.
   79795.  All moneys deposited in the fund that are derived from
premium and accrued interest on bonds sold pursuant to this division
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest,
except that amounts derived from premium may be reserved and used to
pay the cost of bond issuance prior to any transfer to the General
Fund.
   79796.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds, including
premium, if any. To the extent the cost of bond issuance is not paid
from premiums received from the sale of bonds, these costs shall be
shared proportionately by each program funded through this division
by the applicable bond sale.
   79797.  The bonds issued and sold pursuant to this division may be
refunded in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code, which is a part of the State General Obligation Bond
Law. Approval by the voters of the state for the issuance of the
bonds under this division shall include approval of the issuance of
any bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
   79798.  The proceeds from the sale of bonds authorized by this
division are not "proceeds of taxes" as that term is used in Article
XIII B of the California Constitution, and the disbursement of these
proceeds is not subject to the limitations imposed by that article.

   SEC. 5.    Section 2 of Chapter 3 of the Seventh
Extraordinary Session of the Statutes of 2009, as amended by Section
1 of Chapter 74 of the Statutes of 2012, is repealed.  
  SEC. 6.    (a) Notwithstanding the requirements of
Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or
any other law, the Secretary of State shall submit Sections 1, 2, and
4 of this act to the voters at the November 4, 2014, statewide
general election.
   (b) The Secretary of State shall include in the ballot pamphlets
mailed pursuant to Section 9094 of the Elections Code the information
specified in Section 9084 of the Elections Code regarding the bond
act contained in Sections 1, 2, and 4 of this act. If that inclusion
is not possible, the Secretary of State shall publish a supplemental
ballot pamphlet regarding this act to be mailed with the ballot
pamphlet. If the supplemental ballot pamphlet cannot be mailed with
the ballot pamphlet, the supplemental ballot pamphlet shall be mailed
separately.  
  SEC. 7.    Notwithstanding Sections 13115 and 13117 of the
Elections Code, Sections 1, 2, and 4 of this act shall be placed as
the first ballot measure on the November 4, 2014, general election
ballot and shall be designated as Proposition 1.  
  SEC. 8.    Sections 1, 2, and 4 of this act shall take
effect upon approval by the voters of the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, as set forth in Section 4 of
this act, including changes to the Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond Act of
2006, as set forth in Section 1 of this act, and the Water Security,
Clean Drinking Water, Coastal and Beach Protection Act of 2002, as
set forth in Section 2 of this act.  
  SEC. 9.    This act is an urgency statute necessary for
the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
   In order to fund a water quality, supply, and infrastructure
improvement program at the earliest possible date, it is necessary
that this act take effect immediately.  
  SECTION 1.    Section 12559 is added to the Health
and Safety Code, to read:
   12559.  (a) Commencing January 1, 2015, a distributor shall pay a
tax upon his or her distribution of safe and sane fireworks at the
rate of ten cents ($0.10) per pound of the total weight of the
fireworks, including any packaging, unless adjusted by the State Fire
Marshal pursuant to subdivision (c).
   (b) (1) Funds received by the State Fire Marshal or its designee
pursuant to this section shall be deposited into the State Fire
Marshal Fireworks Enforcement and Disposal Fund established pursuant
to Section 12728.
   (2) Funds received pursuant to this section shall only be used,
upon appropriation by the Legislature, for the purposes listed in
Section 12728.
   (c) The State Fire Marshal may adjust the rate specified in
subdivision (a), not to exceed twenty cents ($0.20) per pound, at a
public meeting to be held in January of each year in order to provide
sufficient revenues to pay for the estimated expenses described in
Section 12728.
   (d) The State Fire Marshal may contract with another public agency
to administer this section.
   (e) The State Fire Marshal is authorized to adopt emergency
regulations necessary to implement this section during the 2014-15
fiscal year in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
The adoption of emergency regulations shall be deemed an emergency
and necessary for the immediate preservation of the public peace,
health, and safety, or general welfare.
   (f) The State Fire Marshal may, by regulation, establish the
period for reporting of information, returns, billings, and payment
of taxes due pursuant to this section.
   (g) A violation of this section, or any regulation adopted
pursuant to this section, does not constitute a crime for purposes of
Section 12700.
   (h) For purposes of this section, the following terms have the
following meanings:
   (1) (A) "Distribution" means either or both of the following:
   (i) The sale of previously untaxed safe and sane fireworks in this
state.
   (ii) The use or consumption of previously untaxed safe and sane
fireworks in this state. For purposes of this clause, "use or
consumption" includes the exercise of a right or power over safe and
sane fireworks incident to the ownership of those fireworks, other
than the sale of the safe and sane fireworks or the keeping or
retention of those fireworks by a licensee pursuant to Section 12571,
12572, or 12573.
   (B) For purposes of this paragraph, "previously untaxed safe and
sane fireworks" means fireworks that have not yet been distributed in
a manner as to result in a tax liability under this section.
   (2) "Distributor" means either of the following:
   (A) A person who holds a license issued by the State Fire Marshal
pursuant to Section 12571, 12572, or 12573.
   (B) A person who does not hold a license described in subparagraph
(A) and who, after the effective date of this section, distributes,
as that term is described in paragraph (1), safe and sane fireworks
in this state.  
  SEC. 2.    Section 12722 of the Health and Safety
Code is amended to read:
   12722.  The following fireworks may be seized pursuant to Section
12721:
   (a) Those fireworks that are sold, offered for sale, possessed,
stored, used, or transported within this state prior to having been
examined, classified, and registered by the State Fire Marshal,
except those specific items designated as samples pending
examination, classification, and registration by the State Fire
Marshal where the licensee provides documentary evidence that such
action by the State Fire Marshal is pending.
   (b) All imported fireworks possessed without benefit of the filing
of notices as required by this part.
   (c) Safe and sane fireworks stored in violation of the conditions
required by the permit as provided in this part.
   (d) Safe and sane fireworks sold or offered for sale at retail
that do not bear the State Fire Marshal label of registration and
firing instructions.
   (e) Safe and sane fireworks sold or offered for sale at retail
that are in unsealed packages or containers that do not bear the
State Fire Marshal label of registration and firing instructions.
   (f) Safe and sane fireworks sold or offered for sale at retail
before 12 noon on the 28th day of June or after 12 noon on the sixth
day of July of each year.
   (g) Each safe and sane fireworks item sold or offered for sale at
retail that does not have its fuse or other igniting device protected
by a cap approved by the State Fire Marshal, or groups of fireworks
with exposed fuses that are not enclosed in sealed packages that bear
the State Fire Marshal label of registration. The State Fire Marshal
shall approve the caps as he or she determines provide reasonable
protection from unintentional ignition of the fireworks.
   (h) Dangerous fireworks, including fireworks kits, used,
possessed, stored, manufactured, or transported by a person who does
not possess a valid permit authorizing an activity listed in this
part.
   (i) Fireworks stored or sold in a public garage or public oil
station, or on a premises where gasoline or other class 1 flammable
liquids are stored or dispensed.
   (j) Fireworks still possessed by a person who has just thrown
ignited fireworks at a person or group of persons.
   (k) Model rocket engines or model rockets with engines possessed
by a person who does not hold a valid permit.
   (  l  ) An emergency signaling device sold,
offered for sale, or used that does not bear the State Fire Marshal
label of registration as required by this part.
   (m) Fireworks or pyrotechnic device offered for sale by a person
violating this part.
   (n) Safe and sane fireworks distributed in this state by an
unlicensed distributor and for which the tax required pursuant to
Section 12559 has not been paid. 
  SEC. 3.    Section 12728 of the Health and Safety
Code is amended to read:
   12728.  (a) The State Fire Marshal Fireworks Enforcement and
Disposal Fund is hereby established in the State Treasury.
   (b) All of the moneys collected pursuant to Section 12706 shall be
deposited in the fund and shall be available, upon appropriation by
the Legislature, to the State Fire Marshal for the exclusive use in
statewide programs for the enforcement, prosecution related to,
disposal, and management of seized dangerous fireworks, and for the
training of public safety agencies in the proper handling and
management of dangerous fireworks.
   (c) All of the moneys collected pursuant to Section 12727 shall be
deposited in the fund and shall be available, upon appropriation by
the Legislature, to the State Fire Marshal for the exclusive use in
statewide programs for all of the following:
   (1) To further assist in statewide programs for the enforcement,
prosecution related to, disposal, and management of seized dangerous
fireworks.
   (2) The training of public safety agencies in the proper handling
and management of dangerous fireworks as well as safety issues
involving all fireworks and explosives.
   (3) Assist the State Fire Marshal in identifying and evaluating
methods to capture more detailed data relating to fires, damages, and
injuries caused by both dangerous and safe and sane fireworks, and
to assist with funding the eventual development and implementation of
those methods.
   (4) To further assist in public safety efforts within the general
public as well as public safety agencies on the proper and
responsible use, seizure, and storage of safe and sane fireworks.
   (5) Disposal of any seized fireworks and any infrastructure
requirements necessary for the disposal of fireworks.
   (6) Administration of the fund by the Office of the State Fire
Marshal or its contracted designee.  
  SEC. 4.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order for regulatory changes to be adopted to address the
public safety and environmental damage caused by illegal fireworks in
the state at the earliest possible time, it is necessary that this
act take effect immediately.