BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                       AB 2759|
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                                       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  
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            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  

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            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  

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          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

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