BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 753| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 753 Author: Steinberg (D), et al. Amended: 5/24/13 Vote: 21 SENATE NATURAL RESOURCES AND WATER COMMITTEE : 7-1, 4/23/13 AYES: Pavley, Evans, Hueso, Jackson, Lara, Monning, Wolk NOES: Fuller NO VOTE RECORDED: Cannella SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines SUBJECT : Central Valley Flood Protection Board SOURCE : Author DIGEST : This bill establishes an enforcement process for the Central Valley Flood Protection Board (Board), the Department of Water Resources (Department), and local agencies for unauthorized activities and encroachments that interfere with flood control facilities. ANALYSIS : Existing law: 1.Provides the Board with the authority to construct and maintain various flood control works. CONTINUED SB 753 Page 2 2.Authorizes the Board to hold a hearing or partial hearing before a committee of one or more members of the Board, or before the general manager or chief engineer of the Board, at any place within the state. This bill: 1.Deletes the existing provisions governing "Encroachments on Flood Control Works" and establishes a new article titled "Enforcement of Unauthorized Activities and Encroachments." 2.Establishes under the new article a three step process of addressing unauthorized activities and encroachments, as follows: A. Authorizes the Board, the executive officer, the Department, or certain local agencies to issue a notice of violation, as specified, if it is determined that any person or public agency has undertaken, is threatening to undertake, or maintains any encroachment, flood system, improvement, or activity in violation of certain provisions. B. Authorizes the Board or executive officer to issue an order directing that person or public agency to cease and desist, as specified, if the board or executive officer determines that any person or public agency has failed to adequately respond to a notice of violation. C. Requires that if the Board determines that any person or public agency has failed to correct a violation as required in a cease and desist order, the Board shall hold an enforcement hearing and may, at the conclusion of the hearing, issue an enforcement order, as prescribed. 1.Establishes penalties for violations of the ACT, as follows: A. Civil penalties in an amount not less than $500 and not greater than $30,000 for an activity, flood system improvement or encroachment that is in violation of the Act or that is inconsistent with any permit or cease and desist order previously issued by the Board or executive officer. CONTINUED SB 753 Page 3 B. Civil penalties in an amount not less than $1,000 or more than $15,000 per day for each day in which the encroachment persists, may be imposed by a court of competent jurisdiction against any person or public agency that intentionally and knowingly undertakes an activity, flood system improvement, or encroachment that is in violation of this part or that is inconsistent with any permit or cease and desist order previously issued by the Board or executive officer. 1.Establishes under the new article notification provisions, as specified. 2.Requires the Board to adopt emergency regulations necessary to implement these provisions. Background Under the Act, the Board is responsible for protection and oversight of facilities of the state plan of flood control. These are the levees, weirs, channels, and other features of the federally and state-authorized flood control facilities located in the Sacramento River and San Joaquin River drainage basin for which the Board or DWR, has given the assurances of nonfederal cooperation to the United States required for the project. These are sometimes referred to as "project" levees or flood facilities. The Act requires plans that involve the construction, enlargement, or alteration of any levee, embankment, canal, or other excavation in the bed of or along or near the banks of the Sacramento or San Joaquin Rivers or any of their tributaries or specified lands to be approved by the Board before such activity is commenced. The Act grants the Board authority to issue an order directing a person or public agency to cease and desist from undertaking, or threatening to undertake, an activity that may encroach on levees, channels, or other flood control works under the jurisdiction of the Board. The Act requires the cease and desist order to be issued only if the person or public agency has failed to respond in a satisfactory manner to a prescribed notice provided, as specified. Cease and desist orders are effective upon its issuance and copies are required to be served CONTINUED SB 753 Page 4 immediately by certified mail upon the person or agency subject to the order. In 2003, the Court of Appeals held in Paterno v. State of California that the state could be held liable, under a theory of inverse condemnation, for property damages caused by the failure of a state project levee. Although the state played no role in the design or construction of the failed levee, the Paterno court held that "when a public entity operates a flood control system built by someone else, it accepts liability as if had planned and built the system itself." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, likely costs of $75,000 to $150,000 from the General Fund to prepare emergency regulations for the new enforcement procedures. SUPPORT : (Verified 5/24/13) California Central Valley Flood Control Association ARGUMENTS IN SUPPORT : According to the author, "Current law for addressing illegal levee encroachments is simply unworkable. The Flood Board can't do anything without formally notifying the party responsible for the encroachment, and if we can't identify and find the responsible party, we're done. If we do manage to find and notify the responsible party, the Flood Board's only recourse is to ask the Attorney General to sue them." "In the meantime, our levees remain compromised, threating public safety. In addition to the potential loss of life and property, there is the potential for state liability under Paterno should a compromised levee fail. Also, there is the potential for us to become ineligible for federal flood funds if the enforcement programs aren't fixed. And finally, there is the challenge of trying to get a Provisionally Accredited Levee (PAL) when you have enforcement problems. Without a PAL, there's the real possibility of increased FEMA rates. None of CONTINUED SB 753 Page 5 this is good." "SB 753 fixes all these problems. It provides reasonable notification provisions, including what to do if the responsible party can't be identified or reached. It provides for a clear abatement process of notice of violation, cease and desist, and finally enforcement orders, similar to what is done for building code violations. And finally, it eliminates awkward and obsolete provisions and replaces with clear and direct language." RM:ej 5/25/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED