BILL ANALYSIS Ó AB 1061 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1061 (Gallagher) - As Amended April 29, 2015 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 Page 4 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081