Amended in Senate June 18, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 115

Introduced by Committee on Budget (Weber (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, Ting, and Williams)

January 9, 2015

An act begin delete relating to the Budget Act of 2015. end delete begin insert to add Sections 116680, 116681, 116682, and 116684 to the Health and Safety Code, to add and repeal Sections 21080.08, 21080.45, and 21080.46 of the Public Resources Code, and to amend Sections 375, 375.5, 377, 1058.5, 1552, 1846, 5103, and 5104 of, to add Sections 377.5, 79708.5, and 79716.5 to, and to add Article 3 (commencing with Section 1840) to Chapter 12 of Part 2 of Division 2 of, the Water Code, relating to water, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 115, as amended, Committee on Budget. begin delete Budget Act of 2015. end delete begin insert Water. end insert

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(1) Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems, and imposes on the State Water Resources Control Board various responsibilities and duties. Existing law requires the state board to conduct research, studies, and demonstration projects relating to the provision of a dependable, safe supply of drinking water, to adopt regulations to implement the California Safe Drinking Water Act, and to enforce provisions of the federal Safe Drinking Water Act. Existing law prohibits a person from operating a public water system unless the person first submits an application to the state board and receives a permit issued by the state board, as specified.

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This bill would authorize the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. This bill would authorize the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The bill would require the state board, prior to ordering consolidation or extension of service, to conduct an initial public meeting and a public hearing and to make specified findings. The bill would limit the liability of a consolidated water system, wholesaler, or any other agency in the chain of distribution that delivers water to a consolidated water system, as specified.

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(2) Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA exempts certain projects from its requirements.

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This bill would, until January 1, 2017, or a specified date, whichever is earlier, exempt from CEQA certain groundwater replenishment projects.

end insert begin insert

This bill would, until July 1, 2017, exempt from CEQA the development and approval of building standards by state agencies for recycled water systems.

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This bill would, with specified exceptions and until July 1, 2017, or a specified date, whichever is later, exempt from CEQA the adoption of an ordinance to impose stricter conditions on the issuance of well permits or changes in the intensity of land use that would increase demand on groundwater.

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(3) The California Constitution declares that the general welfare of the state requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water. Existing law requires the state board to take all appropriate proceedings or actions to prevent waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of water in this state. Existing law states the intent of the Legislature that the state take vigorous action to enforce the terms and conditions of permits, licenses, certifications, and registrations to appropriate water, to enforce state board orders and decisions, and to prevent the unlawful diversion of water.

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This bill would, commencing January 1, 2016, require a person who diverts 10 acre-feet of water per year or more under a permit or license to install and maintain a device or employ a method capable of measuring the rate of direct diversion, rate of collection to storage, and rate of withdrawal or release from storage, as specified, and with certain exceptions. This bill would require the permittee or licensee to maintain a record of all diversion monitoring and the total amount of water diverted and submit these records to the state board, as prescribed. This bill would require a person who diverts water under a registration, permit, or license to report to the state board, at least annually. This bill would authorize the state board to adopt regulations requiring measurement and reporting of water diversion and use by specified persons and would require that the initial regulations be adopted as emergency regulations and that these emergency regulations remain in effect until revised by the state board. This bill would exempt from CEQA the adoption of the initial regulations by the state board.

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(4) Existing law authorizes a person or entity in violation of a term or condition of a permit, license, certificate, or registration issued by, an order adopted by, or certain emergency regulations adopted by, the state board to be civilly liable for an amount not to exceed $500 for each day in which the violation occurs.

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This bill would expand this civil liability to any violation of any regulation adopted by the state board.

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Existing law makes this civil liability applicable only in a critically dry year immediately preceded by 2 or more consecutive below normal, dry, or critically dry years or during a period for which the Governor has issued a proclamation of a state of emergency based on drought conditions.

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This bill would eliminate this requirement.

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(5) Existing law, with certain exceptions, requires each person who diverts water after December 31, 1965, to file with the state board a statement of diversion and use, and to include specified information. Existing law requires supplemental statements of diversion and use to be filed at 3-year intervals prior to July 1 of the year next succeeding the end of each interval, and requires, if there is a change in the name or address of the person diverting water, a supplemental statement be filed with the state board that includes the change. Existing law provides that the making of a material misstatement in connection with these provisions is a misdemeanor punishable as prescribed.

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This bill would require supplemental statements of diversion and use to be filed annually prior to July 1, as provided. By expanding the definition of a crime, this bill would impose a state-mandated local program.

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Existing law requires each statement of diversion and use, on and after January 1, 2012, to include monthly records of water diversions using best available technologies and best professional practices. Existing law prohibits this requirement from being construed to require the implementation of technologies or practices by a person who provides to the state board documentation demonstrating that the implementation of those practices is not locally cost effective.

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This bill would require each statement to include at least monthly records of water diversions and would eliminate the above-described prohibition.

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(6) Under existing law, emergency regulations of the state board are not subject to review by the Office of Administrative Law if the state board adopts findings that the emergency regulations are adopted to prevent the waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion, of water to promote wastewater reclamation, or to promote water conservation, and that the emergency regulations are adopted in response to conditions which exist, or are threatened, in a critically dry year immediately preceded by 2 or more consecutive dry or critically dry years. Under existing law, a person who violates an emergency regulation adopted by the state board pursuant to these provisions or violates certain cease and desist orders relating to the enforcement of water rights may be liable for specified amounts. Revenues generated from these penalties are deposited into the Water Rights Fund, which are available, upon appropriation, for specified purposes.

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This bill would require that a civil liability imposed for a violation of an emergency conservation regulation, as defined, that is adopted pursuant to these provisions, or a violation of a cease and desist order of that emergency conservation regulation, be deposited, and separately accounted for, in the Water Rights Fund. The bill would require those funds to be available, upon appropriation by the Legislature, for water conservation activities and programs.

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(7) Existing law authorizes any public entity, as defined, that supplies water at retail or wholesale for the benefit of persons within the service area or area of jurisdiction of the public entity to, by ordinance or resolution, adopt and enforce a water conservation program to reduce the quantity of water used for the purpose of conserving the water supplies of the public entity. Existing law provides that a violation of a requirement of a water conservation program is a misdemeanor punishable by imprisonment in the county jail for not more than 30 days, or by fine not exceeding $1,000, or both.

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This bill would provide that a court or public entity may hold a person civilly liable in an amount not to exceed $10,000 for a violation of a water conservation program ordinance or resolution, or certain emergency regulations adopted by the state board. This bill would prohibit the civil liability assessed by a court or public entity for the first violation by a residential water user from exceeding $1,000, except as specified. This bill would provide that commencing on the 31st day after the public entity has notified the person of the violation, the person additionally may be civilly liable for an amount not to exceed $10,000 plus $500 for each additional day on which the violation continues. This bill would require civil liability imposed pursuant to these provisions to be paid to the public entity and to be expended solely for the purposes of the water conservation program. In addition to these remedies, this bill would authorize a public entity to enforce water use limitations by a volumetric penalty in an amount established by the public entity.

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(8) Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The act requires each state agency that receives an appropriation from the funding made available by the act to administer a competitive grant or loan program under the act’s provisions to develop and adopt project solicitation and evaluation guidelines before disbursing the grants or loans. The act requires the Secretary of the Natural Resources Agency to publish and post on the Natural Resources Agency’s Internet Web site a list of expenditures pursuant to the act not less than annually, as prescribed, and to post on that Internet Web site the guidelines submitted by state agencies and the secretary’s verification that the guidelines are consistent with applicable statutes and the purposes of the act.

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This bill would require the secretary to post on the Natural Resources Agency’s Internet Web site information on changes to project timelines and project spending, in order to facilitate oversight of funding and projects.

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The act requires each state agency that receives an appropriation of funding made available by the act to be responsible for establishing metrics of success and reporting the status of projects and all uses of the funding on the state’s bond accountability Internet Web site.

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This bill would require each state agency that receives an appropriation of funding made available by the act to evaluate the outcomes of projects, report this evaluation on the state’s bond accountability Internet Web site, and to hold a grantee of funds accountable for completing projects funded by the act on time and within scope.

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(9) The bond act provides that the sum of $810,000,000 is to be available, upon appropriation by the Legislature, for expenditures on, and competitive grants and loans to, projects that are included in and implemented in an adopted integrated regional water management plan and respond to climate change and contribute to regional water security. The bond act authorizes the use of $100,000,000 of those funds for direct expenditures, and for grants and loans, for certain water conservation and water use efficiency plans, projects, and programs. Existing law establishes the CalConserve Water Use Efficiency Revolving Fund and provides that the moneys in the fund are available to the Department of Water Resources, upon appropriation by the Legislature, for the purpose of water use efficiency projects. Existing law requires moneys in the fund to be used for purposes that include, but are not limited to, at or below market interest rate loans to local agencies, as defined, and permits the department to enter into agreements with local agencies that provide water or recycled water service to provide loans.

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Existing law transferred to the fund the sum of $10,000,000 of the proceeds of these bonds for water conservation and water use efficiency projects and programs to achieve urban water use targets. Existing law requires the department to use $5,000,000 for a pilot project for local agencies to provide water efficiency upgrades to eligible residents and requires the department to use the other $5,000,000 for local agencies to provide low-interest loans to customers to finance the installation of onsite improvements to repair or replace, as necessary, cracked or leaking water pipes to conserve water.

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This bill would appropriate the sum of $10,000,000 available in the fund from the proceeds of the bond act for the purpose of these provisions.

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(10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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(11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 116680 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 116680. end insert   

The Legislature finds and declares as follows:

(a) It is the policy of the state to encourage orderly growth and
development, which are essential to the social, fiscal, and economic
well-being of the state. The Legislature recognizes that the logical
formation, consolidation, and operation of water systems is an
important factor in promoting orderly development and in
balancing that development against sometimes competing state
interests of discouraging urban sprawl, preserving open space
and prime agricultural lands, and efficiently extending other
government services. Therefore, the policy of the state should be
affected by the logical formation, consolidation, and operation of
water systems.

(b) The powers set forth in Section 116682 for consolidation of
water systems are consistent with the intent of promoting orderly
growth.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 116681 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

begin insert

begin insert 116681. end insert   

The following definitions shall apply to this section
and Sections 116682 and 116684:

(a) “Adequate supply” means sufficient water to meet residents’
health and safety needs.

(b) “Affected residence” means a residence reliant on a water
supply that is either inadequate or unsafe.

(c) “Consistently fails” means a failure to provide an adequate
supply of safe drinking water.

(d) “Consolidated water system” means the public water system
resulting from the consolidation of a public water system with
another public water system, state small water system, or affected
residences not served by a public water system.

(e) “Consolidation” means joining two or more public water
systems, state small water systems, or affected residences not
served by a public water system, into a single public water system.

(f) “Disadvantaged community” means a disadvantaged
community, as defined in Section 79505.5 of the Water Code, that
is in an unincorporated area or is served by a mutual water
company.

(g) “Extension of service” means the provision of service
through any physical or operational infrastructure arrangement
other than consolidation.

(h) “Receiving water system” means the public water system
that provides service to a subsumed water system through
consolidation or extension of service.

(i) “Safe drinking water” means water that meets all primary
and secondary drinking water standards.

(j) “Subsumed water system” means the public water system,
state small water system, or affected residences not served by a
public water system consolidated into or receiving service from
the receiving water system.

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begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 116682 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

begin insert

begin insert 116682. end insert   

(a) Where a public water system, or a state small
water system within a disadvantaged community, consistently fails
to provide an adequate supply of safe drinking water, the State
Water Resources Control Board may order consolidation with a
receiving water system as provided in this section and Section
116684. The consolidation may be physical or operational. The
State Water Resources Control Board may also order the extension
of service to an area that does not have access to an adequate
supply of safe drinking water so long as the extension of service
is an interim extension of service in preparation for consolidation.
The State Water Resources Control Board may set timelines and
performance measures to facilitate completion of consolidation.

(b) Prior to ordering consolidation or extension of service as
provided in this section, the State Water Resources Control Board
shall do all of the following:

(1) Encourage voluntary consolidation or extension of service.

(2) Consider other enforcement remedies specified in this article.

(3) Consult with, and fully consider input from, the relevant
local agency formation commission regarding the provision of
water service in the affected area, the recommendations for
improving service in a municipal service review, and any other
relevant information.

(4) Consult with, and fully consider input from, the Public
Utilities Commission when the consolidation would involve a water
corporation subject to the commission’s jurisdiction.

(5) Consult with, and fully consider input from, the local
government with land use planning authority over the affected
area, particularly regarding any information in the general plan
required by Section 65302.10 of the Government Code.

(6) Notify the potentially receiving water system and the
potentially subsumed water system, if any, and establish a
reasonable deadline of no less than six months, unless a shorter
period is justified, for the potentially receiving water system and
the potentially subsumed water system, if any, to negotiate
consolidation or another means of providing an adequate supply
of safe drinking water.

(A) During this period, the State Water Resources Control Board
shall provide technical assistance and work with the potentially
receiving water system and the potentially subsumed water system
to develop a financing package that benefits both the receiving
water system and the subsumed water system.

(B) Upon a showing of good cause, the deadline may be
extended by the State Water Resources Control Board at the
request of the potentially receiving water system, potentially
subsumed water system, or the local agency formation commission
with jurisdiction over the potentially subsumed water system.

(7) Obtain written consent from any domestic well owner for
consolidation or extension of service. Any affected resident within
the consolidation or extended service area who does not provide
written consent shall be ineligible, until the consent is provided,
for any future water-related grant funding from the state other
than funding to mitigate a well failure, disaster, or other
emergency.

(8) Hold at least one public meeting at the initiation of this
process in a place as close as feasible to the affected areas. The
State Water Resources Control Board shall make reasonable efforts
to provide a 30-day notice of the meeting to the ratepayers, renters,
and property owners to receive water service through service
extension or in the area of the subsumed water system and all
affected local government agencies and drinking water service
providers. The meeting shall provide representatives of the
potentially subsumed water system, affected ratepayers, renters,
property owners, and the potentially receiving water system an
opportunity to present testimony. The meeting shall provide an
opportunity for public comment.

(c) Upon expiration of the deadline set by the State Water
Resources Control Board pursuant to paragraph (6) of subdivision
(b), the State Water Resources Control Board shall do the
following:

(1) Consult with the potentially receiving water system and the
potentially subsumed water system, if any.

(2) Conduct a public hearing, in a location as close as feasible
to the affected communities.

(A) The State Water Resources Control Board shall make
reasonable efforts to provide a 30-day notice of the hearing to the
ratepayers, renters, and property owners to receive water service
through service extension or in the area of the subsumed water
system and to all affected local government agencies and drinking
water service providers.

(B) The hearing shall provide representatives of the potentially
subsumed water system, affected ratepayers, renters, property
owners, and the potentially receiving water system an opportunity
to present testimony.

(C) The hearing shall provide an opportunity for public
comment.

(d) Prior to ordering consolidation or extension of service, the
State Water Resources Control Board shall find all of the
following:

(1) The potentially subsumed water system has consistently
failed to provide an adequate supply of safe drinking water.

(2) All reasonable efforts to negotiate consolidation or extension
of service were made.

(3) Consolidation of the receiving water system and subsumed
water system or extension of service is appropriate and technically
and economically feasible.

(4) There is no pending local agency formation commission
process that is likely to resolve the problem in a reasonable amount
of time.

(5) Concerns regarding water rights and water contracts of the
subsumed and receiving water systems have been adequately
addressed.

(6) Consolidation or extension of service is the most effective
and cost-effective means to provide an adequate supply of safe
drinking water.

(7) The capacity of the proposed interconnection needed to
accomplish the consolidation is limited to serving the current
customers of the subsumed water system.

(e) Upon ordering consolidation or extension of service, the
State Water Resources Control Board shall do all of the following:

(1) As necessary and appropriate, make funds available, upon
appropriation by the Legislature, to the receiving water system
for the costs of completing the consolidation or extension of
service, including, but not limited to, replacing any capacity lost
as a result of the consolidation or extension of service, providing
additional capacity needed as a result of the consolidation or
extension of service, and legal fees. Funding pursuant to this
paragraph is available for the general purpose of providing
financial assistance for the infrastructure needed for the
consolidation or extension of service and does not need to be
specific to each individual consolidation project. The State Water
Resources Control Board shall provide appropriate financial
assistance for the infrastructure needed for the consolidation or
extension of service. The State Water Resources Control Board’s
existing financial assistance guidelines and policies shall be the
basis for the financial assistance.

(2) Ensure payment of standard local agency formation
commission fees caused by State Water Resources Control
Board-ordered consolidation or extension of service.

(3) Adequately compensate the owners of a privately owned
subsumed water system for the fair market value of the system as
determined by the Public Utilities Commission for water
corporations subject to the commission’s jurisdiction or the State
Water Resources Control Board for all other water systems.

(4) Coordinate with the appropriate local agency formation
commission and other relevant local agencies to facilitate the
change of organization or reorganization.

(f) For the purposes of this section, the consolidated water
system shall not increase charges on existing customers of the
receiving water system solely as a consequence of the consolidation
or extension of service unless the customers receive a
corresponding benefit.

(g) Division 3 (commencing with Section 56000) of Title 5 of
the Government Code shall not apply to the consolidation or
extension of service required pursuant to this section.

end insert

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begin insert SEC. 4. end insert   

end insert

begin insert Section 116684 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

begin insert

begin insert 116684. end insert   

(a) Liability of a consolidated water system,
wholesaler, or any other agency in the chain of distribution that
delivers water to a consolidated water system shall be limited as
described in this section.

(b) (1) The consolidated water system, wholesaler, or any other
agency in the chain of distribution that delivers water to a
consolidated water system, shall not be held liable for claims by
past or existing customers or those who consumed water provided
through the subsumed water system concerning the operation and
supply of water from the subsumed water system during the interim
operation period specified in subdivision (d) for any good faith,
reasonable effort using ordinary care to assume possession of, to
operate, or to supply water to the subsumed water system.

(2) The consolidated water system, wholesaler, or any other
agency in the chain of distribution that delivers water to a
consolidated water system, shall not be held liable for claims by
past or existing customers or by those who consumed water
provided through the subsumed water system for any injury that
occurred prior to the commencement of the interim operation
period specified in subdivision (d).

(c) (1) The consolidated water system, wholesaler, or any other
agency in the chain of distribution that delivers water to a
consolidated water system, shall not be held liable for claims by
past or existing customers or by those who consumed water
provided through the subsumed water system concerning the
provision of supplemental imported water supplies to the subsumed
water system during the interim operation period specified in
subdivision (d) for any good faith, reasonable effort using ordinary
care to supply water to the subsumed water system.

(2) The consolidated water system, wholesaler, or any other
agency in the chain of distribution that delivers water to a
consolidated water system, shall not be held liable for claims by
past or existing customers or by those who consumed water
provided through the subsumed water system concerning the
operation and supply of water from the subsumed water system
for any injury that occurred prior to the commencement of the
interim operation period specified in subdivision (d).

(3) This subdivision shall only apply if the water supplied by
the consolidated water system through a temporary potable service
pipeline to the subsumed water system meets or exceeds federal
and state drinking water quality standards.

(d) (1) The interim operation period shall commence upon the
connection of a temporary potable service pipeline by the
consolidated water system to the subsumed water system, or upon
the execution of an agreement between the consolidated water
system, subsumed water system, and any other signatories to
provide service to the customers of the subsumed water system,
whichever occurs first.

(2) (A) Except as provided in subparagraph (B), the interim
operation period shall last until permanent replacement facilities
are accepted by the consolidated water system with the
concurrence of the State Water Resources Control Board and the
facilities and water supply meet drinking water and water quality
standards.

(B) Upon the showing of good cause, the interim operation
period shall be extended by the State Water Resources Control
Board for up to three successive one-year periods at the request
of the consolidated water system.

(3) The acceptance date of permanent replacement facilities
shall be publicly noticed by the consolidated water system.

(e) Subdivision (b) shall only apply if the consolidated water
system provides water to the subsumed water system in accordance
with all of the following conditions:

(1) Water provided by the consolidated water system through
a temporary potable service pipeline to the subsumed water system
shall meet or exceed federal and state drinking water quality
standards.

(2) Reasonable water system flow and pressure through a
temporary potable service pipeline shall be maintained during the
interim operation period based upon the condition and integrity
of the existing subsumed water system, and any disruptions to
water delivery resulting from construction-related activities
associated with the installation of permanent replacement facilities
shall be minimal.

(3) The consolidated water system shall notify fire officials
serving the subsumed water system service area of the condition
and firefighting support capabilities of the subsumed water system
and planned improvements with the installation of permanent
replacement facilities thereto. The consolidated water system shall
maintain or improve the condition and firefighting support
capabilities of the subsumed water system during the interim
operation period.

(4) Customers of the subsumed water system shall receive
written notice upon any change in possession, control, or operation
of the water system.

(f) Nothing in this section shall be construed to do any of the
following:

(1) Relieve any water district, water wholesaler, or any other
entity from complying with any provision of federal or state law
pertaining to drinking water quality.

(2) Impair any cause of action by the Attorney General, a district
attorney, a city attorney, or any other public prosecutor, or impair
any other action or proceeding brought by or on behalf of a
regulatory agency.

(3) Impair any claim alleging the taking of property without
compensation within the meaning of either the Fifth Amendment
to the United States Constitution or Section 19 of Article I of the
California Constitution.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert The Legislature finds and declares all of the following: end insert

begin insert

(a) Section 7 of Article XI of the California Constitution
authorizes a county or city to “make and enforce within its limits
all local, police, sanitary, and other ordinances and regulations
not in conflict with general laws.”

end insert begin insert

(b) The California Supreme Court has held that local regulations
affecting economic interests in property are within local
governments’ police power (Birkenfeld v. City of Berkeley (1976)
17 Cal.3d 129, 158).

end insert begin insert

(c) Counties may reasonably regulate land use under their police
powers (Associated Home Builders etc., Inc., v. City of Livermore
(1976) 18 Cal.3d 582).

end insert begin insert

(d) Counties may regulate groundwater, including well
permitting, under their police powers (Baldwin v. County of
Tehama (1994) 31 Cal.App.4th 166, 175-76), and numerous
counties have exercised this authority through ordinances.

end insert begin insert

(e) The Legislature enacted the Sustainable Groundwater
Management Act (Part 2.74 (commencing with Section 10720) of
Division 6 of the Water Code) to ensure that local agencies manage
their high- and medium-priority groundwater basins sustainably.
That act does not require the adoption of local groundwater
sustainability plans until 2020 or 2022. Under the act, counties
retain their authority to issue well permits.

end insert begin insert

(f) As local agencies are transitioning to the implementation of
the Sustainable Groundwater Management Act, unregulated well
permitting in stressed high- and medium-priority groundwater
basins during the ongoing drought emergency is causing risks to
the health, safety, and well-being of citizens.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 21080.08 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 21080.08. end insert   

(a) This division does not apply to a project that
satisfies both of the following:

(1) The project is approved or carried out by a public agency
for the purpose of mitigating drought conditions for which a state
of emergency was proclaimed by the Governor on January 17,
2014, pursuant to Chapter 7 (commencing with Section 8550) of
Division 1 of Title 2 of the Government Code.

(2) The project consists of construction or expansion of recycled
water pipeline and directly related infrastructure within existing
rights of way, and directly related groundwater replenishment, if
the project does not affect wetlands or sensitive habitat, and where
the construction impacts are fully mitigated consistent with
applicable law.

(b) This section shall remain operative until the state of
emergency due to drought conditions declared by the Governor
in the proclamation issued on January 17, 2014, has expired or
until January 1, 2017, whichever occurs first, and as of January
1, 2017, is repealed unless a subsequent statute amends or repeals
that date.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 21080.45 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 21080.45. end insert   

(a) This division does not apply to the development
and approval of building standards by state agencies for recycled
water systems.

(b) This section shall become inoperative on July 1, 2017, and,
as of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 21080.46 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 21080.46. end insert   

(a) Without limiting any other statutory exemption
or categorical exemption, this division does not apply to the
adoption of an ordinance by a city, county, or city and county to
limit or prohibit the drilling of new or deeper groundwater wells,
or to limit or prohibit increased extractions from existing
groundwater wells, through stricter conditions on the issuance of
well permits or changes in the intensity of land use that would
increase demand on groundwater.

(b) (1) This section shall remain operative until July 1, 2017,
or so long as the state of emergency due to drought conditions
declared by the Governor in the proclamation of a state of
emergency issued on January 17, 2014, remains in effect,
whichever is later.

(2) This section is repealed on January 1 of the year following
the date on which this section becomes inoperative.

(c) Notwithstanding subdivision (a) or (b), this section does not
apply to either of the following:

(1) The issuance of any permit for a new or deeper groundwater
well by a city, county, or city and county.

(2) The adoption of any ordinance affecting or relating to new
residential, commercial, institutional, or industrial projects or any
mix of these uses, or any change in the intensity or use of land for
these purposes, if that project or change in use requires approval
by a city, county, or city and county. Nor does this section apply
to the adoption of any ordinance that would limit or prohibit new
or deeper groundwater wells, or increased extraction from existing
groundwater wells, that may be needed to serve these projects.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 375 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

375.  

(a) Notwithstanding any other begin delete provision of the end delete law, any
public entity begin delete which end delete begin insert that end insert supplies water at retail or wholesale for
the benefit of persons within the service area or area of jurisdiction
of the public entity may, by ordinance or resolution adopted by a
majority of the members of the governing body after holding a
public hearing upon notice and making appropriate findings of
necessity for the adoption of a water conservation program, adopt
and enforce a water conservation program to reduce the quantity
of water used by those persons for the purpose of conserving the
water supplies of the public entity.

(b) With regard to water delivered for other than agricultural
uses, the ordinance or resolution may specifically require the
installation of water-saving devices begin delete which end delete begin insert that end insert are designed to
reduce water consumption. The ordinance or resolution may also
encourage water conservation through rate structure design.

(c) For the purposes of this begin delete section, end delete begin insert chapter, end insert “public entity”
means a city, whether general law or chartered, county, city and
county, special district, agency, authority, any other municipal
public corporation or district, or any other political subdivision of
the state.

begin insert

(d) For the purposes of this section and subdivisions (b) and
(c) of Section 377, “person” means any person, firm, association,
organization, partnership, business, trust, corporation, company,
or public agency, including any city, county, city and county,
district, joint powers authority, or any agency or department of a
public agency.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 375.5 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

375.5.  

(a) A public begin delete entity, as defined by Section 375, end delete begin insert entity end insert
may undertake water conservation and public education programs
in conjunction with school districts, public libraries, or any other
public entity.

(b) (1) A public entity may undertake water conservation and
public education programs using an information booklet or
materials for use in connection with the use or transfer of real
estate containing up to four residential units. For the purposes of
this subdivision, the public entity may use water conservation
materials prepared by the department.

(2) It is the intent of the Legislature that on or before December
31, 2007, a review of the program be conducted to obtain
information on both of the following matters:

(A) The extent to which public entities have undertaken water
conservation and public education programs referred to in
paragraph (1).

(B) The extent to which water conservation may be attributable
to the implementation of water conservation and public education
programs referred to in paragraph (1).

(c) A public entity may take into account any programs
undertaken pursuant to this section in a rate structure design
implemented pursuant to Section 375.

(d) The Legislature finds and declares that a program undertaken
pursuant to this section is in the public interest, serves a public
purpose, and will promote the health, welfare, and safety of the
people of the state.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 377 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

377.  

begin insert (a) end insert begin insert   end insert From and after the publication or posting of any
ordinance or resolution pursuant to Section 376, violation of a
requirement of a water conservation program adopted pursuant to
Section 376 is a misdemeanor. begin delete Upon conviction thereof such person end delete
begin insert A person convicted under this subdivision end insert shall be punished by
imprisonment in the county jail for not more than 30 days, or by
fine not exceeding one thousand dollars ($1,000), or by both.

begin insert

(b) A court or public entity may hold a person civilly liable in
an amount not to exceed ten thousand dollars ($10,000) for a
violation of any of the following:

end insert begin insert

(1) An ordinance or resolution adopted pursuant to Section 376.

end insert begin insert

(2) An emergency regulation adopted by the board under Section
1058.5, unless the board regulation provides that it cannot be
enforced under this section.

end insert begin insert

(c) Commencing on the 31st day after the public entity notified
a person of a violation described in subdivision (b), the person
additionally may be civilly liable in an amount not to exceed ten
thousand dollars ($10,000) plus five hundred dollars ($500) for
each additional day on which the violation continues.

end insert begin insert

(d) Remedies prescribed in this section are cumulative and not
alternative, except that no liability shall be recoverable under this
section for any violation of paragraph (2) of subdivision (b) if the
board has filed a complaint pursuant to Section 1846 alleging the
same violation.

end insert begin insert

(e) A public entity may administratively impose the civil liability
described in subdivisions (b) and (c) after providing notice and
an opportunity for a hearing. The public entity shall initiate a
proceeding under this subdivision by a complaint issued pursuant
to Section 377.5. The public entity shall issue the complaint at
least 30 days before the hearing on the complaint and the
complaint shall state the basis for the proposed civil liability order.

end insert begin insert

(f) (1) In determining the amount of civil liability to assess, a
court or public entity shall take into consideration all relevant
circumstances, including, but not limited to, the nature and
persistence of the violation, the extent of the harm caused by the
violation, the length of time over which the violation occurs, and
any corrective action taken by the violator.

end insert begin insert

(2) The civil liability calculated pursuant to paragraph (1) for
the first violation of subdivision (b) by a residential water user
shall not exceed one thousand dollars ($1,000) except in
extraordinary situations where the court or public entity finds all
of the following:

end insert begin insert

(A) The residential user had actual notice of the requirement
found to be violated.

end insert begin insert

(B) The conduct was intentional.

end insert begin insert

(C) The amount of water involved was substantial.

end insert begin insert

(g) Civil liability imposed pursuant to this section shall be paid
to the public entity and expended solely for the purposes of this
chapter.

end insert begin insert

(h) An order setting administrative civil liability shall become
effective and final upon issuance of the order and payment shall
be made. Judicial review of any final order shall be pursuant to
Section 1094.5 of the Code of Civil Procedure.

end insert begin insert

(i) In addition to the remedies prescribed in this section, a public
entity may enforce water use limitations established by an
ordinance or resolution adopted pursuant to this chapter, or as
otherwise authorized by law, by a volumetric penalty in an amount
established by the public entity.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 377.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 377.5. end insert   

(a) A complaint or citation under subdivision (b) of
Section 377 or subdivision (d) of Section 1058.5 may be issued by
any of the following:

(1) A code enforcement officer, as defined in Section 829.5 of
the Penal Code.

(2) A designee of the chief executive officer of a public entity
authorized to adopt an ordinance or resolution under Section 375.

(3) A designee of the chief executive officer of a city, county, or
city and county.

(b) For purposes of this section, the term “chief executive
officer” includes a city manager, general manager, or other
employee of the public entity who is the highest ranking officer or
employee, other than a member of a multimember governing body,
with responsibility for the operations of the public entity.

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 1058.5 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

1058.5.  

(a) This section applies to any emergency regulation
adopted by the board for which the board makes both of the
following findings:

(1) The emergency regulation is adopted to prevent the waste,
unreasonable use, unreasonable method of use, or unreasonable
method of diversion, of water, to promote water recycling or water
conservation, to require curtailment of diversions when water is
not available under the diverter’s priority of right, or in furtherance
of any of the foregoing, to require reporting of diversion or use or
the preparation of monitoring reports.

(2) The emergency regulation is adopted in response to
conditions which exist, or are threatened, in a critically dry year
immediately preceded by two or more consecutive below normal,
dry, or critically dry years or during a period for which the
Governor has issued a proclamation of a state of emergency under
the California Emergency Services Act (Chapter 7 (commencing
with Section 8550) of Division 1 of Title 2 of the Government
Code) based on drought conditions.

(b) Notwithstanding Sections 11346.1 and 11349.6 of the
Government Code, any findings of emergency adopted by the
board, in connection with the adoption of an emergency regulation
under this section, are not subject to review by the Office of
Administrative Law.

(c) An emergency regulation adopted by the board under this
section may remain in effect for up to 270 days, as determined by
the board, and is deemed repealed immediately upon a finding by
the board that due to changed conditions it is no longer necessary
for the regulation to remain in effect. An emergency regulation
adopted by the board under this section may be renewed if the
board determines that the conditions specified in paragraph (2) of
subdivision (a) are still in effect.

(d) In addition to any other applicable civil or criminal penalties,
any person or entity who violates a regulation adopted by the board
pursuant to this section is guilty of an infraction punishable by a
fine of up to five hundred dollars ($500) for each day in which the
violation occurs.

begin insert

(e) (1) Notwithstanding subdivision (b) of Section 1551,
subdivision (d) of Section 1845, and subdivision (f) of Section
1846, a civil liability imposed under Chapter 12 (commencing
with Section 1825) of Part 2 of Division 2 by the board or a court
for a violation of an emergency conservation regulation adopted
pursuant to this section shall be deposited, and separately
accounted for, in the Water Rights Fund. Funds deposited in
accordance with this subdivision shall be available, upon
appropriation, for water conservation activities and programs.

end insert begin insert

(2) For purposes of this subdivision, an “emergency
conservation regulation” means an emergency regulation that
requires an end user of water, a water retailer, or a water
wholesaler to conserve water or report to the board on water
conservation. Water conservation includes restrictions or
limitations on particular uses of water or a reduction in the amount
of water used or served, but does not include curtailment of
diversions when water is not available under the diverter’s priority
of right or reporting requirements related to curtailments.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 1552 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

1552.  

begin delete The money end delete begin insert Except as provided in subdivision (e) of
Section 1058.5, moneys end insert in the Water Rights Fund begin delete is end delete begin insert are end insert available
for expenditure, upon appropriation by the Legislature, for the
following purposes:

(a) For expenditure by the State Board of Equalization in the
administration of this chapter and the Fee Collection Procedures
Law (Part 30 (commencing with Section 55001) of Division 2 of
the Revenue and Taxation Code) in connection with any fee or
expense subject to this chapter.

(b) For the payment of refunds, pursuant to Part 30 (commencing
with Section 55001) of Division 2 of the Revenue and Taxation
Code, of fees or expenses collected pursuant to this chapter.

(c) For expenditure by the board for the purposes of carrying
out this division, Division 1 (commencing with Section 100), Part
2 (commencing with Section 10500) and Chapter 11 (commencing
with Section 10735) of Part 2.74 of Division 6, and Article 7
(commencing with Section 13550) of Chapter 7 of Division 7.

(d) For expenditures by the board for the purposes of carrying
out Sections 13160 and 13160.1 in connection with activities
involving hydroelectric power projects subject to licensing by the
Federal Energy Regulatory Commission.

(e) For expenditures by the board for the purposes of carrying
out Sections 13140 and 13170 in connection with plans and policies
that address the diversion or use of water.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Article 3 (commencing with Section 1840) is added
to Chapter 12 of Part 2 of Division 2 of the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 3. end insert   Monitoring and Reporting

 

begin insert 1840. end insert   

(a) (1) Except as provided in subdivision (b), a person
who, on or after January 1, 2016, diverts 10 acre-feet of water per
year or more under a permit or license shall install and maintain
a device or employ a method capable of measuring the rate of
direct diversion, rate of collection to storage, and rate of
withdrawal or release from storage. The measurements shall be
made using the best available technologies and best professional
practices, as defined in Section 5100, using a device or methods
satisfactory to the board, as follows:

(A) A device shall be capable of continuous monitoring of the
rate and quantity of water diverted and shall be properly
maintained. The permittee or licensee shall provide the board with
evidence that the device has been installed with the first report
submitted after installation of the device. The permittee or licensee
shall provide the board with evidence demonstrating that the device
is functioning properly as part of the reports submitted at five-year
intervals after the report documenting installation of the device,
or upon request of the board.

(B) In developing regulations pursuant to Section 1841, the
board shall consider devices and methods that provide accurate
measurement of the total amount diverted and the rate of diversion.
The board shall consider devices and methods that provide
accurate measurements within an acceptable range of error,
including the following:

(i) Electricity records dedicated to a pump and recent pump
test.

(ii) Staff gage calibrated with an acceptable streamflow rating
curve.

(iii) Staff gage calibrated for a flume or weir.

(iv) Staff gage calibrated with an acceptable storage capacity
curve.

(v) Pressure transducer and acceptable storage capacity curve.

(2) The permittee or licensee shall maintain a record of all
diversion monitoring that includes the date, time, and diversion
rate at time intervals of one hour or less, and the total amount of
water diverted. These records shall be included with reports
submitted under the permit or license, as required under
subdivision (c), or upon request of the board.

(b) (1) The board may modify the requirements of subdivision
(a) upon finding either of the following:

(A) That strict compliance is infeasible, is unreasonably
expensive, would unreasonably affect public trust uses, or would
result in the waste or unreasonable use of water.

(B) That the need for monitoring and reporting is adequately
addressed by other conditions of the permit or license.

(2) The board may increase the 10-acre-foot reporting threshold
of subdivision (a) in a watershed or subwatershed, after
considering the diversion reporting threshold in relation to quantity
of water within the watershed or subwatershed. The board may
increase the 10-acre-foot reporting threshold to 25 acre-feet or
above if it finds that the benefits of the additional information
within the watershed or subwatershed are substantially outweighed
by the cost of installing measuring devices or employing methods
for measurement for diversions at the 10-acre-foot threshold.

(c) At least annually, a person who diverts water under a
registration, permit, or license shall report to the board the
following information:

(1) The quantity of water diverted by month.

(2) The maximum rate of diversion by months in the preceding
calendar year.

(3) The information required by subdivision (a), if applicable.

(d) Compliance with the applicable requirements of this section
is a condition of every registration, permit, or license.

begin insert 1841. end insert   

(a) The board may adopt regulations requiring
measurement and reporting of water diversion and use by either
of the following:

(1) Persons authorized to appropriate water under a permit,
license, registration for small domestic, small irrigation, or
livestock stockpond use, or certification for livestock stockpond
use.

(2) Persons required to comply with measurement and reporting
regulations pursuant to subparagraph (B) of paragraph (1) of
subdivision (e) of Section 5103.

(b) The initial regulations that the board adopts pursuant to
this section shall be adopted as emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code. The
adoption of the initial regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for
the immediate preservation of the public peace, health, safety, and
general welfare. Notwithstanding Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, any emergency regulations adopted under this section shall
remain in effect until revised by the board.

(c) The adoption of the initial regulations pursuant to this article
is exempt from Division 13 (commencing with Section 21000) of
the Public Resources Code.

end insert

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 1846 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

1846.  

(a) A person or entity may be liable for a violation of
any of the following in an amount not to exceed five hundred
dollars ($500) for each day in which the violation occurs:

(1) A term or condition of a permit, license, certificate, or
registration issued under this division.

(2) A regulation begin delete adopted by the board under Section 1058.5 end delete or
begin delete an end delete order adopted by the board.

(b) Civil liability may be imposed by the superior court. The
Attorney General, upon the request of the board, shall petition the
superior court to impose, assess, and recover those sums.

(c) Civil liability may be imposed administratively by the board
pursuant to Section 1055.

(d) In determining the appropriate amount of civil liability, the
court, pursuant to subdivision (b), or the board, pursuant to
subdivision (c), may take into consideration all relevant
circumstances, including, but not limited to, the extent of harm
caused by the violation, the nature and persistence of the violation,
the length of time over which the violation occurs, and the
corrective action, if any, taken by the violator.

(e) No liability shall be recoverable under this section for any
violation for which liability is recovered under Section 1052.

(f) All funds recovered pursuant to this section shall be deposited
in the Water Rights Fund established pursuant to Section 1550.

begin delete

(g) This section applies only in a critically dry year immediately
preceded by two or more consecutive below normal, dry, or
critically dry years or during a period for which the Governor has
issued a proclamation of a state of emergency under the California
Emergency Services Act (Chapter 7 (commencing with Section
8550) of Division 1 of Title 2 of the Government Code) based on
drought conditions.

end delete

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 5103 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

5103.  

Each statement shall be prepared on a form provided by
the board. The statement shall include all of the following
information:

(a) The name and address of the person who diverted water and
of the person filing the statement.

(b) The name of the stream or other source from which water
was diverted, and the name of the next major stream or other body
of water to which the source is tributary.

(c) The place of diversion. The location of the diversion works
shall be depicted on a specific United States Geological Survey
topographic map, or shall be identified using the California
Coordinate System, or latitude and longitude measurements. If
assigned, the public land description to the nearest 40-acre
subdivision and the assessor’s parcel number shall also be provided.

(d) The capacity of the diversion works and of the storage
reservoir, if any, and the months in which water was used during
the preceding calendar year.

(e) (1)  begin delete On and after January 1, 2012, monthly end delete begin insert (A) end insert begin insert   end insert begin insert At least
monthly end insert records of water diversions. The measurements of the
diversion shall be made begin delete using best available technologies and best
professional practices. Nothing in this paragraph shall be construed
to require the implementation of technologies or practices by a
person who provides to the board documentation demonstrating
that the implementation of those practices is not locally cost
effective. end delete begin insert in accordance with Section 1840. end insert

begin insert

(B) (i) On and after July 1, 2016, the measurement of a
diversion of 10 acre-feet or more per year shall comply with
regulations adopted by the board pursuant to Article 3
(commencing with Section 1840) of Chapter 12 of Part 2.

end insert begin insert

(ii) The requirement of clause (i) is extended to January 1, 2017,
for any statement filer that enters into a voluntary agreement that
is acceptable to the board to reduce the statement filer’s diversions
during the 2015 irrigation season.

end insert

(2) (A) The terms of, and eligibility for, any grant or loan
awarded or administered by the department, the board, or the
California Bay-Delta Authority on behalf of a person that is subject
to paragraph (1) shall be conditioned on compliance with that
paragraph.

(B) Notwithstanding subparagraph (A), the board may determine
that a person is eligible for a grant or loan even though the person
is not complying with paragraph (1), if both of the following apply:

(i) The board determines that the grant or loan will assist the
grantee or loan recipient in complying with paragraph (1).

(ii) The person has submitted to the board a one-year schedule
for complying with paragraph (1).

(C) It is the intent of the Legislature that the requirements of
this subdivision shall complement and not affect the scope of
authority granted to the board by provisions of law other than this
article.

(f) The purpose of use.

(g) A general description of the area in which the water was
used. The location of the place of use shall be depicted on a specific
United States Geological Survey topographic map and on any other
maps with identifiable landmarks. If assigned, the public land
description to the nearest 40-acre subdivision and the assessor’s
parcel number shall also be provided.

(h) The year in which the diversion was commenced as near as
is known.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 5104 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

5104.  

(a) Supplemental statements shall be filed begin delete at three-year
intervals, prior to end delete begin insert annually, before end insert July 1 of begin delete year next succeeding
the end of each three-year interval. end delete begin insert each year. end insert They shall contain
the quantity of water diverted and the rate of diversion by months
in begin delete each of end delete the preceding begin delete three end delete calendar begin delete years end delete begin insert year end insert and any change
in the other information contained in the preceding statement.

(b) If there is a change in the name or address of the person
diverting the water, a supplemental statement shall be filed with
the board that includes the change in name or address.

begin insert

(c) A supplemental statement filed prior to July 1, 2016, shall
include data satisfying the requirements of subdivision (a) for any
diversion of water in the 2012, 2013, and 2014 calendar years,
that was not reported in a supplemental statement submitted prior
to July 1, 2015.

end insert begin insert

(d) This section does not limit the authority of the board to
require additional information or more frequent reporting under
any other law.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 79708.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 79708.5. end insert   

In addition to the information required pursuant to
Section 79708, in order to facilitate oversight of funding and
projects, the secretary shall post on the Natural Resources
Agency’s Internet Web site information on changes to project
timelines and project spending.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 79716.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 79716.5. end insert   

Each state agency that receives an appropriation of
funding made available by this division shall do the following:

(a) Evaluate the outcomes of projects funded by this division.

(b) Include in the agency’s reporting pursuant to Section 79716
the evaluation described in subdivision (a).

(c) Hold a grantee of funds accountable for completing projects
funded by this division on time and within scope.

end insert

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert The sum of ten million dollars ($10,000,000) available
in the CalConserve Water Use Efficiency Revolving Fund from
the proceeds of bonds issued pursuant to Division 26.7
(commencing with Section 79700) of the Water Code, is hereby
appropriated for the purpose of Section 81023 of the Water Code. end insert

begin insert

begin insert SEC. 22. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin insert

begin insert SEC. 23. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2015.

end delete