BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1061


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          ASSEMBLY THIRD READING


          AB  
          1061 (Gallagher)


          As Amended   June 1, 2015


          2/3 vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Water           |15-0  |Levine, Bigelow,     |                     |
          |                |      |Dababneh, Dahle,     |                     |
          |                |      |Dodd, Beth Gaines,   |                     |
          |                |      |Cristina Garcia,     |                     |
          |                |      |Gomez, Harper,       |                     |
          |                |      |Lopez, Mathis,       |                     |
          |                |      |Medina, Rendon,      |                     |
          |                |      |Salas, Williams      |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |








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          |                |      |                     |                     |
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          SUMMARY:  Allows the Sacramento and San Joaquin Drainage District  
          (District), which is under the management and control of the  
          Central Valley Flood Protection Board (Board), to sell, lease, or  
          rent properties, and use any revenue that is generated from the  
          lease or rental of the properties for flood control purposes.  


          EXISTING LAW:  


          1)Provides the Board authority for the protection and oversight of  
            levees, weirs, channels, and other features of federally and  
            state-authorized flood control facilities located in the  
            Sacramento River and San Joaquin River drainage basins.  
          2)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.



          3)Vests management and control of the District in the Board.  



          4)Authorizes the District to acquire, own, hold, use, and enjoy  
            any and all properties necessary for the purposes of the  
            District.



          FISCAL EFFECT:  According to the Assembly Appropriations  








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          Committee, annual General Fund losses of $360,000 resulting from  
          the transfer of revenue generated by leases to the District.   
          Management and control of the district is vested in the Board.   
          Board leases include traditional grazing and agricultural leases  
          as well as oil and gas leases that generate rent and royalties.


          COMMENTS:  This bill gives the District broader property-related  
          powers.  In addition to being able to acquire, hold and enjoy  
          property, this bill allows the District to sell, lease, or rent  
          property, including rights-of-way and easements, and apply any  
          revenue from the lease or rental of property to the flood control  
          purposes of the District and the Board.


          The author states that the District has property rights dating  
          back to the 1900s and retains fee title, easements, and other land  
          use agreements on about 18,000 parcels.  According to the author,  
          there are agreements that allow for agricultural crop production,  
          which generates lease revenues to the state.  But the author adds  
          the revenues must go directly to the General Fund and cannot be  
          used for the maintenance and repair of flood control projects.   



          The District boundaries comprise more than 1.9 million acres in  
          the Central Valley along the general course of 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 to  
          prepare a report to the Reclamation Board, which was the current  
          Board's predecessor agency.  The purpose of the report was to  
          further plans for controlling the floodwaters of the rivers and  
          improve and preserve navigation, reclamation, and the protection  
          of the lands that are susceptible to overflow from those rivers  
          and their tributaries.  Those plans culminated in 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.  








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          A prior statutory change solved a similar issue for the Department  
          of Fish and Wildlife (DFW): DFW supplemented the costs of  
          maintenance and operations of DFW-managed lands by granting  
          revenue-generating leases for agricultural activities, where  
          compatible.  A state audit conducted in 2012 raised questions  
          regarding the accountability of the leasing process and the  
          reporting of revenues.  SB 749 (Wolk), Chapter 387, Statutes of  
          2013, authorized, among other provisions, that DFW could enter  
          into contracts, agricultural leases, or other agreements, as  
          specified, and use the revenues for the management and operation  
          of DFW lands.  One example of a successful project is the Yolo  
          Basin Wildlife Refuge, where lands leased for the growing of rice  
          provide habitat for waterfowl and other wildlife species, and  
          managed grazing in other parts of the refuge help to maintain  
          vernal pool habitat.  The revenues generated from the leases also  
          assist the DFW in covering maintenance and operations costs for  
          the refuge.


          Supporters state that allowing the lease revenue funding under  
          this bill will improve maintenance, help maximize environmental  
          mitigation and enhancement, and assist in offsetting mitigation  
          costs.



          There is no known opposition to this bill.




          Analysis Prepared by:                                               
                          Tina Leahy / W., P., & W. / (916) 319-2096  FN:  
          0000834












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