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 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 753 Author: Steinberg (D), et al. Amended: 8/6/13 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 SENATE FLOOR : 29-9, 5/29/13 AYES: Anderson, Beall, Block, Calderon, Corbett, Correa, De León, DeSaulnier, Evans, Galgiani, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Torres, Wolk, Wright, Yee NOES: Berryhill, Emmerson, Fuller, Gaines, Huff, Knight, Nielsen, Walters, Wyland NO VOTE RECORDED: Cannella, Vacancy SUBJECT : Central Valley Flood Protection Board SOURCE : Central Valley Flood Protection Board DIGEST : This bill provides the Central Valley Flood Protection Board (Board), with new and clarified authorities for addressing unauthorized and unforthcoming structures built in or CONTINUED SB 753 Page 2 on levees or other areas of the flood control system which are under the jurisdiction of the Board. Assembly Amendments add provisions that: (1) require the Board or executive officer from issuing a cease and desist order without first issuing a notice of violation; (2) authorize the Board, at the conclusion of a hearing, to order the recording of an enforcement order, as specified; (3) permit the executive officer, if the Board authorizes the order, to issue a certificate of abatement, as specified, including the payment of any costs and penalties; (4) authorize the Board to modify or revoke a permit for encroachment; and (5) make other clarifying and technical changes. ANALYSIS : Existing law: 1.Provides the Board with the authority to construct and maintain various flood control works. 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.Repeals the article "Encroachments on Flood Control Works," deletes obsolete provisions, and revises and reorganizes enforcement authorities under a new article entitled "Enforcement of Unauthorized Activities and Encroachments." 2.Provides the Board with an administrative process for enforcement actions to address the prevention and removal of unauthorized and nonconforming structures and other activities (encroachments) that could interfere with the safe operation of the flood system. Makes this administrative process in addition to, and in lieu of, resorting to the courts. 3.Creates a progressive three-step enforcement process for violations, if not corrected. A notice of violation is followed by a cease and desist order and, finally, an enforcement hearing is held to consider the issuance of an enforcement order. CONTINUED SB 753 Page 3 4.Allows the Board to issue a cease and desist order without first issuing a notice of violation if the issuance of the notice would be futile, result in unreasonable delay, or be unlikely to provoke a timely response. 5.Allows an enforcement order to require the removal, modification, or abatement of an encroachment, including a previously permitted encroachment, a flood system improvement, or activity causing a violation and require restoration of the site. 6.Retains language specifying the Board may require removal or modification of a previously permitted encroachment if it poses an imminent threat to, or significantly impairs the function of, the flood control system. Specifies that previously permitted encroachments are not subject to administrative or civil penalties and standards for just compensation under the state and federal constitutions are unaffected by the provisions of this statute. 7.Allows a person or entity against which the Board has issued an enforcement order to seek judicial review of the enforcement order. 8.Retains current provisions allowing a court of competent jurisdiction to impose civil penalties between $500 and $30,000 per violation and, in addition, to impose between $1,000 and $15,000 per day for intentional and knowing violations. 9.Adds additional authorities allowing the Board, after an enforcement hearing and issuance of an enforcement order, to impose administrative penalties of between $500 and $30,000 per violation in the same manner that a court can impose civil penalties. 10.Enables the Board, if it must seek a civil action, to recover its costs for removing an encroachment as well as attorney's fees and costs for bringing litigation. 11.Provides the Board with authority to adopt emergency regulations necessary to implement the provisions of this bill. CONTINUED SB 753 Page 4 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 the Department, 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 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 CONTINUED SB 753 Page 5 of $75,000 to $150,000 from the General Fund to prepare emergency regulations for the new enforcement procedures. SUPPORT : (Verified 8/27/13) Central Valley Flood Protection Board (source) California Central Valley Flood Control Association OPPOSITION : (Verified 8/27/13) Garden Highway Community 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 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 8/29/13 Senate Floor Analyses CONTINUED SB 753 Page 6 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED