BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1061


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1061 (Gallagher) - As Amended April 29, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the Sacramento and San Joaquin Drainage  
          District (District) to engage in specified property transactions  
          and use any revenue generated for flood control purposes.   
          Specifically, this bill authorizes the District to:  








                                                                    AB 1061


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          1)Sell or otherwise dispose of a right-of-way, easement, or  
            property when the district determines that the right-of-way,  
            easement, or property is no longer necessary.



          2) Lease or rent a right-of-way, easement, or property.



          3)Take, receive, or apply the income, profit, or revenue  
            received from the sale, lease, rental, or other disposal of  
            property for flood control purposes.
          FISCAL EFFECT:




          1)Annual GF losses of $360,000 resulting from the transfer of  
            revenue generated by leases to the District.





            The management and control of the district is vested in the  
            Central Valley Flood Protection Board (CVFPB).  Board leases  
            include traditional grazing and agricultural leases as well as  
            oil and gas leases that generate rent and royalties.





          2)Unknown future GF losses resulting from the disposal of  
            District property deemed unnecessary.









                                                                    AB 1061


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          COMMENTS:





          1)Purpose.  According to the author, the District has property  
            rights including fee title, easements and other land use  
            agreements on about 18,000 parcels.  Any revenues generated on  
            the lands go directly to the state General Fund.  Instead,  
            this bill allows the District to expend the revenues for the  
            maintenance and repair of flood control projects.  

          2)Background. District boundaries comprise more than 1.9 million  
            acres in the Central Valley along the Sacramento and San  
            Joaquin Rivers, stretching from Glenn and Butte Counties in  
            the north to Madera and Fresno Counties in the south.  The  
            District was created in 1913 to allow the State Engineer at  
            the time, to procure data, and perform surveys and  
            examinations of the San Joaquin and Sacramento rivers and  
            their tributaries for the purpose of preparing a report to the  
            Reclamation Board (now the Central Valley Flood Protection  
            Board). The plans became what is now the State Plan of Flood  
            Control (SPFC), a State-Federal flood protection system in the  
            Sacramento River and San Joaquin River watersheds.  Property  
            rights for the SPFC are held by the District and lease  
            revenues are deposited in the General Fund.  
















                                                                    AB 1061


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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081