Senate BillNo. 620


Introduced by Senator Wright

February 22, 2013


An act to amend Sections 60290, 60315, 60335, 60336, and 60339 of, and to repeal Sections 60291 and 60328.1 of, the Water Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 620, as introduced, Wright. Water replenishment districts.

(1) Existing law, the Water Replenishment District Act, provides for the formation of water replenishment districts and grants authority to a water replenishment district relating to the replenishment, protection, and preservation of groundwater supplies within that district. The act generally authorizes a water replenishment district to establish an annual reserve fund in an amount not to exceed $10,000,000 commencing with the 2000-01 fiscal year, and thereafter, as that amount is adjusted annually. The act requires a minimum of 80% of the reserve fund to be expended for water purchases.

This bill would eliminate the requirement that the reserve fund not exceed $10,000,000 and related provisions. This bill instead would permit the district to establish an annual reserve fund maintained according to generally accepted accounting principles. This bill would authorize the board to transfer funds to a designated reserve, require the board to declare the exclusive purposes for which the moneys in a designated reserve fund may be spent and restrict those moneys only for the exclusive purposes for which the board established the designated reserve, as prescribed.

(2) The act requires the board of directors of a water replenishment district to declare whether funds are to be raised to purchase water for replenishment, as specified, and whether the funds are to be raised either by a water charge, a general assessment, a replenishment assessment, or a combination, as prescribed. The act requires the board to make certain determinations in connection with a decision to impose a water replenishment assessment and requires the water replenishment assessment to be fixed at a uniform rate per acre-foot of groundwater produced within the district. The act provides that if a producer knowingly fails to pay a replenishment assessment within 30 days of when due the producer is liable to the district for interest at the rate of 1% per month on the delinquent amount of the assessment.

This bill, instead, would provide that the producer is liable to the district for a penalty of 5% of the unpaid assessment as of the due date in addition to interest at the rate of 1% per month, or part of a month the assessment remains unpaid. This bill would prohibit the penalty from exceeding 25% of the total unpaid assessment.

(3) The act provides that any operator of a water-producing facility that knowingly fails to register his or her water-producing facility or knowingly fails to file a groundwater production statement, or any other reports or statements required, as specified, in addition to interest due, as prescribed, is liable to the district for a penalty of $150.

This bill would provide that the operator is liable to the district for a penalty of $1,000.

(4) The act authorizes the superior court of the county in which the major portion of the district lies to issue a temporary restraining order upon the filing by the district with the court of a verified petition or complaint setting forth that the defendant is the operator of a water-producing facility that has not been registered with the district or that the defendant is delinquent in the payment of a replenishment assessment, as specified.

This bill would require the court to direct that the party prevailing on any motion, as prescribed, be awarded the reasonable attorney’s fees and costs of making or opposing the motion unless the court finds that the party acted with substantial justification or that other circumstances make the imposition of attorney’s fees and costs unjust.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 60290 of the Water Code is amended to
2read:

P3    1

60290.  

begin insert(a)end insertbegin insertend insert The district may establish an annual reserve fund
2begin delete in an amount not to exceed ten million dollars ($10,000,000)
3commencing with the 2000-01 fiscal year. The maximum
4allowable reserve fund may be adjusted annually commencing
5with 2001-02 fiscal year to reflect percentage increases or
6decreases in the blended cost of water from district supply sources.
7A minimum of 80 percent of the reserve shall be for water
8purchasesend delete
begin insert that shall be maintained according to generally accepted
9accounting principles. The board may transfer funds to a
10designated reserve fund any time after the establishment of the
11fundend insert
.

begin insert

12(b) When the board establishes a designated reserve described
13in subdivision (a), the board shall declare the exclusive purposes
14for which the moneys in the designated reserve fund may be spent.
15The moneys in a designated reserve shall be spent only for the
16exclusive purposes for which the board established the designated
17reserve. If the board finds that the funds in a designated reserve
18are no longer required for the purpose for which it established the
19designated reserve, the board may discontinue the designated
20reserve or transfer any funds that are no longer required from the
21designated reserve to the district’s general fund.

end insert
22

SEC. 2.  

Section 60291 of the Water Code is repealed.

begin delete
23

60291.  

The limitation on the reserve established in Section
2460290 does not apply to the unexpended balance of any
25appropriated funds in a capital improvement project construction
26account established to pay the cost of a project or projects under
27construction.

end delete
28

SEC. 3.  

Section 60315 of the Water Code is amended to read:

29

60315.  

Upon completing the hearing, but no later than the
30second Tuesday in May, the board shall, by resolution, find all of
31the following:

32(a) The annual overdraft for the preceding water year.

33(b) The estimated annual overdraft for the current water year.

34(c) The estimated annual overdraft for the ensuing water year.

35(d) The accumulated overdraft as of the last day of the preceding
36water year.

37(e) The estimated accumulated overdraft as of the last day of
38the current water year.

39(f) The total production of groundwater from the groundwater
40supplies within the district during the preceding water year.

P4    1(g) The estimated total production of groundwater from the
2groundwater supplies within the district for the current water year.

3(h) The estimated total production of groundwater from the
4groundwater supplies within the district for the ensuing water year.

5(i) The changes during the preceding water year in the pressure
6levels or piezometric heights of the groundwater contained within
7pressure-level areas of the district, and the effects thereof upon
8the groundwater supplies within the district.

9(j) The estimated changes during the current water year in the
10pressure levels or piezometric heights of the groundwater contained
11within pressure-level areas of the district, and the estimated effects
12thereof upon the groundwater supplies within the district.

13(k) The quantity of water that should be purchased for the
14replenishment of the groundwater supplies of the district during
15the ensuing water year.

16(l) The source and estimated cost of water available for the
17replenishment.

18(m) The estimated costs of replenishing the groundwater supplies
19with the water so purchased.

20(n) The estimated costs of purchasing, in water years succeeding
21the ensuing water year, that portion of the quantity of water which
22should be purchased for the replenishment of the groundwater
23supplies of the district during the ensuing water year, but which
24is estimated to be unavailable for purchase during the ensuing
25water year; estimated costs shall be based on the estimated price
26of water for replenishment purposes during the ensuing water year.

27(o) The estimated rate of the replenishment assessment required
28to be levied upon the production of groundwater from the
29groundwater supplies within the district during the ensuing fiscal
30year for the purposes of accomplishing the replenishment and
31providing a reserve fund to purchase in future years, when
32available, that portion of the quantity of water which should be
33purchased for the replenishment of the groundwater supplies of
34the district during the ensuing water year, but which is estimated
35to be unavailable for purchase during that ensuing water year.

36(p) Whether any contaminants should be removed from
37groundwater supplies during the ensuing fiscal year, and whether
38any other actions under Section 60224 should be undertaken during
39the ensuing fiscal year, the estimated costs thereof, and the
40estimated additional rate of replenishment assessment required to
P5    1be levied upon the production of groundwater from the
2groundwater supplies within the district during the ensuing fiscal
3year for those purposes.

4(q) Whether any program for removal of contaminants or other
5actions under Section 60224 should be a multiyear program or is
6a continuation of a previously authorized multiyear program.

begin delete

7(r) The amount, if any, by which the estimated reserve funds
8on hand at the end of the current fiscal year will exceed the annual
9reserve fund limit determined pursuant to Section 60290.

end delete
10

SEC. 4.  

Section 60328.1 of the Water Code is repealed.

begin delete
11

60328.1.  

The district shall apply the estimated fiscal yearend
12balance in excess of the amount permitted in Section 60290 to a
13replenishment assessment rate reduction or to the purchase of water
14in the succeeding fiscal year.

end delete
15

SEC. 5.  

Section 60335 of the Water Code is amended to read:

16

60335.  

If any producer shall knowingly fail to pay a
17replenishment assessment within 30 days of when due,begin delete suchend deletebegin insert theend insert
18 producer shall become liable to the district forbegin insert a penalty of 5
19percent of the unpaid assessment as of the due date in addition toend insert

20 interest at the rate of 1 percent per monthbegin insert, or part of a month that
21the assessment remains unpaid,end insert
on the delinquent amount of the
22assessment.begin insert The penalty shall not exceed 25 percent of the total
23unpaid assessment.end insert

24

SEC. 6.  

Section 60336 of the Water Code is amended to read:

25

60336.  

Should any operator of a water-producing facility
26knowingly fail to register hisbegin insert or herend insert water-producing facility or
27knowingly fail to file the ground water production statement, or
28knowingly fail to file and furnish any other reports or statements
29required by resolution of the board adopted pursuant to Section
3060326,begin delete heend deletebegin insert the operatorend insert shall, in addition to interest as provided in
31Section 60335, become liable to the district for a penalty of one
32begin delete hundred fiftyend deletebegin insert thousandend insert dollarsbegin delete ($150)end deletebegin insert ($1,000)end insert.

33

SEC. 7.  

Section 60339 of the Water Code is amended to read:

34

60339.  

(a) The superior court of the county in which the major
35portion of the district lies may issue a temporary restraining order
36upon the filing by the district with the court of a verified petition
37or complaint setting forth that the person named therein as
38defendant is the operator of a water-producing facility which has
39not been registered with the district or that the defendant is
40delinquent in the payment of a replenishment assessment. The
P6    1temporary restraining order shall be returnable to the court on or
2before ten (10) days after its issuance.

3(b) The court may issue and grant an injunction restraining and
4prohibiting the named defendant from the operation of any
5water-producing facility when it is established by the
6 preponderance of the evidence at a hearing that the defendant has
7failed to register the water-producing facility with the district or
8that the defendant is delinquent in the payment of a replenishment
9assessment. The court may provide that the injunction so made
10and issued shall be stayed for a period not to exceed 10 days to
11permit the defendant to register the water-producing facility or to
12pay the delinquent replenishment assessment.

13(c) Service of process shall be made by posting a copy of the
14summons and complaint upon the water-producing facility or the
15parcel of land upon which the water-producing facility is located
16and by personal service of summons and complaint upon the named
17defendant.

18(d) The right to proceed for injunctive relief as provided in this
19section shall be in addition to any other right which may be
20provided elsewhere in this act or which may be otherwise allowed
21by law. The procedure provided in Chapter 3 (commencing with
22Section 525) of Title 7 of Part 2 of the Code of Civil Procedure
23regarding injunctions shall be followed except insofar as it may
24be otherwise provided in this section.

begin insert

25(e) The court shall direct that the party prevailing on any motion
26under this section be awarded the reasonable attorney’s fees and
27costs of making or opposing the motion unless the court finds that
28the other party acted with substantial justification or that other
29circumstances make the imposition of attorney’s fees and costs
30unjust.

end insert


O

    99