BILL ANALYSIS Ó
AB 2446
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2446 (Waldron)
As Amended May 28, 2014
Majority vote
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|ASSEMBLY: |76-0 |(May 15, 2014) |SENATE: |35-0 |(August 11, |
| | | | | |2014) |
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Original Committee Reference: W., P. & W.
SUMMARY : Makes permanent provisions of law that authorize the
San Luis Rey Water District (District) to levy standby
assessments or availability charges.
The Senate amendments delete the sunset date.
EXISTING LAW :
1)Authorizes a municipal water district (MWD) by ordinance,
pursuant to the notice, protest, and hearing requirements put
in place by Proposition 218 of 1996, to establish a water
standby assessment or availability charge in the District or
in any improvement district each fiscal year, to which water
is made available by the District, whether the water is
actually used or not.
2)Prohibits the standby assessment or availability charge from
exceeding $10 per acre per year for each area of land the
charge is levied or $10 per year for a parcel less than one
acre.
3)Establishes a section of law only applicable to the District,
until January 1, 2015, because
of the unique and special water management problems of those
areas included within the District, as follows:
a) Prohibits, for any improvement district in the District,
the standby assessment for availability charge from
exceeding $30 per acre per year for land on which the
charge is levied or $30 per year for a parcel less than one
acre; and,
b) Requires, in the improvement district, the proceeds from
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any standby assessment or availability charge in excess of
$10 per acre per year or $10 per year for a parcel less
than one acre to only be used for the purposes of that
improvement district.
4)Establishes the same exception as 3) above, to the $10 limit
for any improvement district within the Eastern MWD, Western
MWD of Riverside County, Elsinore Valley MWD, Rincon Del
Diablo MWD, Ramona MWD, Rainbow MWD, Lake Hemet MWD, and the
Otay MWD, except with no sunset date.
5)Requires the ordinance fixing a standby assessment or
availability charge to be adopted by the board pursuant to the
notice, protest, and hearing procedures put in place by
Proposition 218.
AS PASSED BY THE ASSEMBLY , this bill:
1)Extended the authority for the District to levy standby
assessments or availability charges from January 1, 2015, to
January 1, 2020.
2)Specified that the proceeds from any standby assessment or
availability charge are to be used for the purposes of
management of local water supply and its quality.
FISCAL EFFECT : None
COMMENTS :
1)Current law and purpose of this bill. Current law establishes
for the District until January 1, 2015, a higher cap on
standby assessments and availability charges at $30 per acre
per year for land on which the charge is levied or $30 per
year for a parcel less than one acre, instead of the $10 cap
in place for most other MWDs. Current law also requires that
the proceeds from any standby assessment or availability
charge in excess of $10 per acre per year or
$10 per year for a parcel less than one acre are only to be used
for the purposes of that improvement district.
This bill extends the District's authority to levy standby
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assessments or availability charges, and deletes the January
1, 2015, sunset date thereby making the provision permanent.
This bill also specifies that the proceeds from any standby
assessment or availability charge only are to be used for the
purposes of management of local water supply and its quality.
This bill is sponsored by the District.
2)San Luis Rey Municipal Water District. The District covers
approximately five square miles in the unincorporated north
San Diego County area and has an elected five-member Board of
Directors. According to the San Diego Local Agency Formation
Commission's 2013 Special Districts' Directory, "The District
was formed in 1958 to assist property owners who benefit from
the water resources of the San Luis Rey River and the Pala and
Bonsall Drainage Basins. The District funds legal activities
to protect water and water storage rights of district
landowners. The District is not authorized to provide potable
or untreated water service. The District has neither
water-related infrastructure nor access to local or imported
water resources. Landowners in the District rely on private
wells. The area is developed primarily with agricultural uses
and the only source of water for agricultural or domestic use
is the San Luis Rey River (River) and the groundwater basins,
which the River supplies. The District levied a property tax
rate before the tax limitations of Proposition 13 [of 1978]
were imposed; however, the increment of property tax revenue
is insufficient to fund the District's services and the
District Board has imposed a water availability charge to
generate revenue."
According to the District, "?District functions are at an
all-time high level of importance, given ongoing and
record-breaking drought conditions. Historical and ongoing
examples
of the District taking action in furtherance of its functions
for landowner interests include:
a) water-quality testing; b) analysis of projects with
environmental impacts that may relate to water supply and
quality; and, c) encouraging landowners to comply with State
requirements regarding water diversion measurements and
reporting."
3)Previous legislation. SB 1157 (Bergeson), Chapter 662,
Statutes of 1989, put in place the original authorization for
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the District to levy higher standby assessments and
availability charges until January 1, 2000. SB 807
(Agriculture and Water Resources Committee), Chapter 779,
Statutes of 1999, extended the authority from January 1, 2000,
to January 1, 2005. AB 2733 (Strickland), Chapter 535,
Statutes of 2004, extended the authority from January 1, 2005,
to January 1, 2015. The Legislature has extended this sunset
date twice, and has granted several other municipal water
districts the same authority to charge up to $30 permanently.
4)Proposition 218. Proposition 218 amended the California
Constitution to limit local officials' powers to levy benefit
assessments and classified standby charges as benefit
assessments. Current law requires the District to comply with
Proposition 218 when doing a standby or availability charge.
Notice, protest, and hearing requirements for new, extended,
or increased assessments are governed by Proposition 218,
which involves mailed protest ballots to all assessed property
owners, a 45-day protest period, and a public hearing at which
protests are counted and the presence or absence of a majority
protest is determined. After complying with notice, protest,
and hearing requirements, if a majority protest is not
received from property owners, the legislative body may adopt
a resolution to establish the assessment district and levy the
assessment.
5)Policy considerations. Supporters of this bill argue that
there has never been protest in the District to the
availability charges the District has levied. The Legislature
may wish to consider if the additional language which states
that the proceeds from any standby assessment or availability
charge should only be used for the purposes of "management of
local water supply and its quality" instead of keeping it at
the improvement district which will potentially open the
District up to litigation. Case law under Proposition 218 is
constantly evolving and closely examining and redefining
relevant definitions.
6)Arguments in support. Supporters argue that this bill extends
the District's long-standing fiscal integrity by renewing the
existing authority that will sunset in 2015 and that the
District will be able to continue to provide important
services on behalf of landowners.
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7)Arguments in opposition. None on file.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
FN: 0004161