BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2759| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 2759 Author: Assembly Water, Parks and Wildlife Committee Amended: As introduced Vote: 21 SENATE NATURAL RESOURCES AND WATER COMMITTEE : 9-0, 6/10/14 AYES: Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara, Monning, Wolk SENATE JUDICIARY COMMITTEE : 7-0, 6/24/14 AYES: Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 73-0, 5/23/14 (Consent) - See last page for vote SUBJECT : Interstate water rights SOURCE : Author DIGEST : This bill repeals unconstitutional Water Code provisions and clarifies that the State Water Resources Control Board (SWRCB) must administer the water rights of the Truckee and Walker Rivers consistent with federal law. ANALYSIS : Existing law: 1.Provides that the entire flow of water in any natural stream which carries water from this state into any other state is CONTINUED AB 2759 Page 2 subject to use in this state, under the laws of this state, and the rights to such water may be, so far as not already acquired by use in this state, acquired and held under the laws of this state. The rights to the use of such water held under the laws of this state are prior and superior to any rights to the waters of such streams held under the laws of any other state. 2.Provides that upon any stream flowing across the state boundary, an appropriation of water in this state for beneficial use in another state may be made only when, under the laws of the latter, water may be lawfully diverted therein for beneficial use in this state. 3.Provides that upon any stream flowing across the state boundary a right of appropriation having the point of diversion and the place of use in another state and recognized by the laws of that state shall have the same force and effect as if the point of diversion and the place of use were in this state if the laws of that state give like force and effect to similar rights acquired in this state; provided, that this section shall not apply to the Walker River and its tributaries or claimed rights of appropriation therefrom in the State of Nevada, whether heretofore or hereafter initiated. 4.States that the above provision does not apply to interstate lakes, or streams flowing in or out of those lakes, except for an appropriation or change in point of diversion, place of use, or purpose of use under a right to the use of waters from the Truckee River if the appropriation or change is made pursuant to the operating agreement, as described. This bill: 1.Eliminates certain reciprocity and priority setting provisions in California law governing interstate rivers and the appropriation of water across state boundaries and, instead, provides that if the waters of an interstate water body have been allocated between California and another state or Indian tribe by a compact, Supreme Court decree, or other appropriate method of allocating interstate waters, the state shall exercise its authority over such waters in a manner consistent with the rights and responsibilities established under that CONTINUED AB 2759 Page 3 interstate allocation. 2.States that appropriations or changes in water rights concerning the Walker River and its tributaries are subject to the provisions of this bill. Background California water law includes provisions governing appropriation of waters that flow out of and into California. One provision holds that the entire flow of water in any natural stream which carries water from California into any other state is subject to use in California. Moreover, the rights to those waters shall be prior and superior to any rights to the waters of such streams held under the laws of any other state. Another set of statutes provides that California will recognize water rights held by a neighboring State if that State recognizes water rights held in California. However, those statutes specifically exclude the Walker River from that reciprocity. In 1982, the U.S. Supreme Court, in Sporhase v. Nebraska, found as unconstitutional Nebraska statutes which were similar to those California statutes described above. Specifically, the Court found that the reciprocity requirement of the Nebraska statute violates the Commerce Clause as imposing an impermissible burden on interstate commerce; that is, the reciprocity provision operates as an explicit barrier to commerce between Nebraska and its adjoining States. Unconstitutional statutes must be either removed by legislation or the issue must reach an appellate court that then deems it unconstitutional. Comments According to the author, "[Civil] Code [section] 1410(a) and [Water Code section] 1230 are unconstitutional in that they purport to give California jurisdiction, now and in the future, over waters originating in our state and flowing into another state unless that state enters into a reciprocity [arrangement] with us. That is in direct conflict with the [Supreme Court's decision] in Sporhase v. Nebraska?. This bill would repeal the CONTINUED AB 2759 Page 4 above?[c]ode sections and replace [Water Code Section 1231] with language specifying that with respect to two interstate waters in particular - the Truckee River and the Walker River - water rights decisions will be made consistent with their federal compact and decree, respectively?. The reason this fix is being proposed now is that despite the overarching legal deficiencies in [section] 1410(a) and [section] 1230, a party could still invoke them and force the State to raise the issue all the way to the appellate level, which would be a waste of money and resources." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No ASSEMBLY FLOOR : 73-0, 5/23/14 AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom, Bocanegra, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson, Perea, John A. Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins NO VOTE RECORDED: Bonilla, Harkey, Roger Hernández, Melendez, Nestande, V. Manuel Pérez, Vacancy RM:nl 8/5/14 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED