BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 246
          Author:   Fuller (R)
          Amended:  8/7/13
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 4/17/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu

           SENATE FLOOR  :  37-0, 04/29/13 (Consent)
          AYES:  Anderson, Beall, Berryhill, Block, Calderon, Cannella,  
            Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,  
            Jackson, Knight, Lara, Leno, Lieu, Monning, Nielsen, Padilla,  
            Pavley, Price, Roth, Steinberg, Walters, Wolk, Wright, Wyland,  
            Yee
          NO VOTE RECORDED:  Liu, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  78-0, 8/26/13 - See last page for vote


           SUBJECT  :    Bighorn-Desert View Water Agency

           SOURCE  :     Bighorn-Desert View Water Agency


           DIGEST  :    This bill repeals the entire Desert View Water  
          District-Bighorn Mountains Water Agency Consolidation Law and  
          amends the Bighorn Mountains Water Agency Law to make it a more  
          modern, transparent, and functional statute.

           Assembly Amendments  add the requirement that the Bighorn-Desert  
          View Water Agency's (Agency) board of directors adopt an annual  
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          budget and set an annual appropriations limit, and make  
          clarifying and technical changes.

           ANALYSIS  :    The Legislature created the Bighorn Mountains Water  
          Agency as a special act special district governed by the  
          uncodified "Bighorn Mountains Water Agency Law" (SB 1175  
          (Coombs, 1969)).  To allow the Bighorn Mountains Water Agency to  
          merge with the Desert View Water District, which was governed by  
          the County Water District Law, the Legislature enacted the  
          Desert View Water District-Bighorn Mountains Water Agency  
          Consolidation Law (AB 1819 (Woodruff, Chapter 570, Statutes of  
          1989).  The merged Agency provides retail water service to  
          residents within a 45-square mile area encompassing the San  
          Bernardino County communities of Flamingo Heights, Landers, and  
          Johnson Valley.

          This bill repeals the Desert View Water District-Bighorn  
          Mountains Water Agency Consolidation Law and deletes  
          cross-references to the law from the Bighorn-Desert View Water  
          Agency's special act.

          This bill requires the Agency to separately account for and use  
          funds derived from the operation of the Desert View Water  
          District and the Bighorn Mountains Water Agency for the purpose  
          of bond debt service for each of the former systems.  This bill  
          declares that its provisions must not be construed to impair any  
          contract 
          entered into prior to January 1, 2014.

          This bill reduces, from three months to 60 days, the period  
          during which legal actions can be initiated to contest,  
          question, or deny the validity of the Agency's bonds,  
          improvement districts, annexations, or other proceedings.  This  
          bill allows the Agency to file legal actions, pursuant to  
          specified statutes in the Code of Civil Procedure, to determine  
          the validity of the Agency's bonds, warrants, promissory notes,  
          contracts, or other evidences of indebtedness.

          This bill reduces, from six to three, the number of public  
          places in which the Agency must post specified hearing notices.

          This bill requires the Agency's board of directors to adopt an  
          annual budget and set an annual appropriations limit.


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          This bill deletes current statutory language governing  
          compensation for the Agency's board of directors.  This bill  
          requires the Agency's board members to receive compensation for  
          attending board meetings that does not exceed the maximum amount  
          authorized by specified statutes that govern compensation for  
          water districts' directors.

          This bill deletes current statutory language relating to  
          vacancies on the Agency's board of directors and specifies that  
          the Agency must fill vacancies on its board pursuant to  
          specified statutes in the Government Code.

          This bill reorganizes current statutory language allowing the  
          Agency's board to appoint, define the duties of, and provide  
          compensation for specified offices.  This bill prohibits the  
          board from appointing a sitting member of the board to one of  
          those offices.  This bill deletes statutory language authorizing  
          the board to appoint a treasurer and to consolidate specified  
          offices.

          This bill requires the Agency's board to adopt a resolution  
          specifying the date, time, and place of its meetings and deletes  
          conflicting and redundant statutory language relating to board  
          meetings.

          This bill specifies that the Agency's board can act by minute  
          order and details specific notice, posting, and publication  
          procedures that the board must follow to adopt an ordinance.

          This bill deletes current statutory language governing the  
          Agency's elections and allows the Agency's voter to pass an  
          initiative or disapprove of an ordinance by referendum subject  
          to specified statutes in the Elections Code.

          This bill specifies that the Agency's powers include the power  
          to:

             Construct, maintain, and operate water wells.
             Construct, maintain, and operate property useful or  
             necessary to produce water.
             Enlarge any waterworks or waterworks system acquired by the  
             Agency.

          This bill deletes a requirement that the Agency's board regulate  

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          specified recreational facilities' use by adopting an ordinance.  
           This bill repeals language defining a violation of those  
          regulations as a misdemeanor.  Instead, this bill makes a  
          violation of the specified regulations an infraction, punishable  
          by a fine of $300 or less.

          This bill specifies that the Agency's board, to restrict the use  
          of water during a drought or water shortage, must comply with  
          specified statutes in the Water Code governing water shortage  
          emergencies.  This bill deletes language defining a violation of  
          specified water restrictions as a misdemeanor and deletes other  
          related statutory language.

          This bill deletes statutory language requiring the board to  
          adopt an ordinance to exercise specified powers related to  
          pensions.

          This bill amends the current statute governing the Agency's  
          power to enter into contracts.  This bill deletes a requirement  
          that the Agency must get 2/3-voter approval for specified  
          contracts that incur long-term debt.  

          This bill deletes current statutory language allowing the Agency  
          to incur debt, issue bonds and promissory notes, and impose  
          assessments.  This bill authorizes the Agency to:

             Borrow money, incur indebtedness, and issue bonds or other  
             evidences of indebtedness at an annual interest rate that  
             must not exceed 12%, pursuant to state law.

             Refund or retire any indebtedness or lien against the agency  
             or its property.

             Issue negotiable promissory notes that are general  
             obligations of the Agency payable from revenues and taxes in  
             the same manner as the Agency's bonds and subject to the same  
             12% annual interest rate limit, and requires the maturity of  
             the notes shall not be later than five years for the Agency  
             to issue negotiable promissory notes.

             Cause taxes to be levied to pay the Agency's obligations,  
             subject to constitutional and statutory requirements.

             To issue improvement bonds in accordance with and pursuant  

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             to the:

              o     Improvement Act of 1911
              o     Improvement Bond Act of 1915
              o     Municipal Improvement Act of 1913
              o     Refunding Assessment Bond Act of 1935
              o     Revenue Bond Law of 1941

          This bill increases the maximum allowable annual interest rates  
          on debt issued by the Agency from 7% to 12%, pursuant to  
          specified statutes in the Government Code.

          This bill allows the Agency to sell bonds through negotiated  
          sale or private sale subject to specified conditions.  This bill  
          prohibits bonds from being sold for less than 94% of par value.

          This bill replaces the term "bonded debt" with the term "debt"  
          in numerous places throughout the Bighorn-Desert View Water  
          Agency Law and deletes outdated references to bonds' interest  
          coupons.

          This bill specifies the manner in which the Agency can record  
          liens for unpaid water service charges.

          This bill clarifies that bond proceeds and surplus revenues from  
          water rates can be used to pay for replacement of the Agency's  
          works.

          This bill renames the special act governing the Bighorn-Desert  
          View Water Agency as the "Bighorn-Desert View Water Agency Law."  
           Throughout the Law, this bill replaces the name "Bighorn  
          Mountains Water Agency" with "Bighorn-Desert View Water Agency."

          This bill updates the statutory metes-and-bounds description of  
          the Bighorn-Desert View Water Agency's boundaries.

          This bill deletes statutory language relating to a potential  
          future consolidation of the Bighorn Mountains Water Agency with  
          the Desert View Water Agency.

          This bill makes numerous technical, non-substantive amendments  
          to the statutes governing the Bighorn-Desert View Water Agency  
          to conform the statutes to other changes made by this bill and  
          to modernize the statutory language.  This bill includes  

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          findings and declarations that comply with existing law  
          requirements.

           Comments
           
          According to the author's office, this bill helps clarify and  
          reorganize the law that established the Bighorn-Desert View  
          Water District within San Bernardino County.  This update and  
          modernization should provide more transparency and  
          accountability to ratepayers in that District.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  8/27/13)

          Bighorn-Desert View Water Agency (source)
          Association of California Water Agencies
          Hi-Desert Water District
          Mojave Water Agency
          San Bernardino County Local Agency Formation Commission
          Special Districts Association
          Twentynine Palms Water District

           ASSEMBLY FLOOR  :  78-0, 8/26/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Vacancy, Vacancy


          AB:k  8/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE


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