BILL ANALYSIS Ó AB 1061 Page 1 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 | | AB 1061 Page 2 | | | | | | | | | | ------------------------------------------------------------------- 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 AB 1061 Page 3 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. AB 1061 Page 4 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 AB 1061 Page 5