Amended in Senate April 1, 2013

Senate BillNo. 620


Introduced by Senator Wright

February 22, 2013


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

LEGISLATIVE COUNSEL’S DIGEST

SB 620, as amended, 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 thatbegin delete 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 prescribedend deletebegin insert a minimum of 80% of the reserve fund be expended for water purchasesend insert.

(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:

P3    1

SECTION 1.  

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

begin delete
3

60290.  

(a) The district may establish an annual reserve fund
4that shall be maintained according to generally accepted accounting
5principles. The board may transfer funds to a designated reserve
6fund any time after the establishment of the fund.

7(b) When the board establishes a designated reserve described
8in subdivision (a), the board shall declare the exclusive purposes
9for which the moneys in the designated reserve fund may be spent.
10The moneys in a designated reserve shall be spent only for the
11exclusive purposes for which the board established the designated
12reserve. If the board finds that the funds in a designated reserve
13are no longer required for the purpose for which it established the
14designated reserve, the board may discontinue the designated
15reserve or transfer any funds that are no longer required from the
16designated reserve to the district’s general fund.

end delete
begin insert
17

begin insert60290.end insert  

The district may establish an annual reserve fund in
18an amount not to exceed ten million dollars ($10,000,000)
19commencing with the 2000-01 fiscal year. The maximum allowable
20reserve fund may be adjusted annually commencing with 2001-02
21fiscal year to reflect percentage increases or decreases in the
22blended cost of water from district supply sources.

end insert
begin delete
23

SEC. 2.  

Section 60291 of the Water Code is repealed.

24

SEC. 3.  

Section 60315 of the Water Code is amended to read:

25

60315.  

Upon completing the hearing, but no later than the
26second Tuesday in May, the board shall, by resolution, find all of
27the following:

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

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

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

31(d) The accumulated overdraft as of the last day of the preceding
32water year.

33(e) The estimated accumulated overdraft as of the last day of
34the current water year.

35(f) The total production of groundwater from the groundwater
36supplies within the district during the preceding water year.

37(g) The estimated total production of groundwater from the
38groundwater supplies within the district for the current water year.

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

3(i) The changes during the preceding water year in the pressure
4levels or piezometric heights of the groundwater contained within
5pressure-level areas of the district, and the effects thereof upon
6the groundwater supplies within the district.

7(j) The estimated changes during the current water year in the
8pressure levels or piezometric heights of the groundwater contained
9within pressure-level areas of the district, and the estimated effects
10thereof upon the groundwater supplies within the district.

11(k) The quantity of water that should be purchased for the
12replenishment of the groundwater supplies of the district during
13the ensuing water year.

14(l) The source and estimated cost of water available for the
15replenishment.

16(m) The estimated costs of replenishing the groundwater supplies
17with the water so purchased.

18(n) The estimated costs of purchasing, in water years succeeding
19the ensuing water year, that portion of the quantity of water which
20should be purchased for the replenishment of the groundwater
21supplies of the district during the ensuing water year, but which
22is estimated to be unavailable for purchase during the ensuing
23water year; estimated costs shall be based on the estimated price
24of water for replenishment purposes during the ensuing water year.

25(o) The estimated rate of the replenishment assessment required
26to be levied upon the production of groundwater from the
27groundwater supplies within the district during the ensuing fiscal
28year for the purposes of accomplishing the replenishment and
29providing a reserve fund to purchase in future years, when
30available, that portion of the quantity of water which should be
31purchased for the replenishment of the groundwater supplies of
32the district during the ensuing water year, but which is estimated
33to be unavailable for purchase during that ensuing water year.

34(p) Whether any contaminants should be removed from
35groundwater supplies during the ensuing fiscal year, and whether
36any other actions under Section 60224 should be undertaken during
37the ensuing fiscal year, the estimated costs thereof, and the
38estimated additional rate of replenishment assessment required to
39be levied upon the production of groundwater from the
P5    1groundwater supplies within the district during the ensuing fiscal
2year for those purposes.

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

6

SEC. 4.  

Section 60328.1 of the Water Code is repealed.

end delete
7

begin deleteSEC. 5.end delete
8begin insertSEC. 2.end insert  

Section 60335 of the Water Code is amended to read:

9

60335.  

If any producer shall knowingly fail to pay a
10replenishment assessment within 30 days of when due, the producer
11shall become liable to the district for a penalty of 5 percent of the
12unpaid assessment as of the due date in addition to interest at the
13rate of 1 percent per month, or part of a month that the assessment
14remains unpaid, on the delinquent amount of the assessment. The
15penalty shall not exceed 25 percent of the total unpaid assessment.

16

begin deleteSEC. 6.end delete
17begin insertSEC. 3.end insert  

Section 60336 of the Water Code is amended to read:

18

60336.  

Should any operator of a water-producing facility
19knowingly fail to register his or her water-producing facility or
20knowingly fail to file the groundwater production statement, or
21knowingly fail to file and furnish any other reports or statements
22required by resolution of the board adopted pursuant to Section
2360326, the operator shall, in addition to interest as provided in
24Section 60335, become liable to the district for a penalty of one
25thousand dollars ($1,000).

26

begin deleteSEC. 7.end delete
27begin insertSEC. 4.end insert  

Section 60339 of the Water Code is amended to read:

28

60339.  

(a) The superior court of the county in which the major
29portion of the district lies may issue a temporary restraining order
30upon the filing by the district with the court of a verified petition
31or complaint setting forth that the person named therein as
32defendant is the operator of a water-producing facility which has
33not been registered with the district or that the defendant is
34delinquent in the payment of a replenishment assessment. The
35temporary restraining order shall be returnable to the court on or
36beforebegin delete ten (10)end deletebegin insert 10end insert days after its issuance.

37(b) The court may issue and grant an injunction restraining and
38prohibiting the named defendant from the operation of any
39water-producing facility when it is established by the
40preponderance of the evidence at a hearing that the defendant has
P6    1failed to register the water-producing facility with the district or
2that the defendant is delinquent in the payment of a replenishment
3assessment. The court may provide that the injunction so made
4and issued shall be stayed for a period not to exceed 10 days to
5permit the defendant to register the water-producing facility or to
6pay the delinquent replenishment assessment.

7(c) Service of process shall be made by posting a copy of the
8summons and complaint upon the water-producing facility or the
9parcel of land upon which the water-producing facility is located
10and by personal service of summons and complaint upon the named
11defendant.

12(d) The right to proceed for injunctive relief as provided in this
13section shall be in addition to any other right which may be
14provided elsewhere in this act or which may be otherwise allowed
15by law. The procedure provided in Chapter 3 (commencing with
16Section 525) of Title 7 of Part 2 of the Code of Civil Procedure
17regarding injunctions shall be followed except insofar as it may
18be otherwise provided in this section.

19(e) The court shall direct that the party prevailing on any motion
20under this section be awarded the reasonable attorney’s fees and
21costs of making or opposing the motion unless the court finds that
22the other party acted with substantial justification or that other
23circumstances make the imposition of attorney’s fees and costs
24unjust.



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