BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                             Senator Fran Pavley, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 1061         Hearing Date:    July 14,  
          2015
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          |Author:    |Gallagher              |           |                 |
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          |Version:   |June 1, 2015    Amended                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Angee Doerr                                          |
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           Subject:  Sacramento and San Joaquin Drainage District: powers.


          BACKGROUND AND EXISTING LAW
          Background:
          In 1911 the legislature created the California State Reclamation  
          Board (Board), which was given regulatory authority over the  
          Sacramento Valley's Local Maintaining Agencies (LMAs), with the  
          objectives of (1) assuring a logical, integrated system for  
          controlling flooding along the Sacramento and San Joaquin Rivers  
          and their tributaries in cooperation with US Army Corps of  
          Engineers, (2) cooperating with various agencies in planning,  
          constructing, operating, and maintaining flood control works,  
          and (3) maintaining the integrity of the flood control system.  
          In 1913 the Reclamation Board was given regulatory authority  
          over the San Joaquin Valley's LMAs. The same year, the  
          Legislature created the Sacramento-San Joaquin Drainage District  
          (District) to give the Reclamation Board the authority to  
          acquire the necessary property and easements for flood control.  
          Creation of the district allowed the State Engineer to procure  
          data and perform surveys and examinations of the San Joaquin and  
          Sacramento rivers and their tributaries to further the Board's  
          plans to control the floodwaters of the rivers, improve and  
          preserve navigation, and ensure the reclamation and 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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          According to statute, the Drainage District can acquire, own,  
          hold, use, and enjoy any and all properties necessary for the  
          purposes of the district. The District's 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 (see Figure in Comments).  
          Management and control of the District are vested in the Board.  
          In 2007 the Legislature restructured the Reclamation Board and  
          renamed it the "Central Valley Flood Protection Board." The  
          legislation also gave the Board the responsibility to review and  
          adopt the historic 2012 Central Valley Flood Protection Plan  
          (CVFPP).  

          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 (Water  
            Code (WAT) Division 5, Part 4, Chapter 3).  


          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 (WAT Division 5,    Part 4 Chapter 3).  



          3)Vests management and control of the District in the Board (WAT  
            Section 8502).  



          4)Authorizes the District to acquire, own, hold, use, and enjoy  
            any and all properties necessary for the purposes of the  
            District (WAT Section 8504).


          PROPOSED LAW
          This bill:








          AB 1061 (Gallagher)                                     Page 3  
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            Amends WAT Section 8504 to allow the District to sell, lease,  
            or rent properties, and use any revenue that is generated from  
            the lease or rental of said properties for flood control  
            purposes.  

          ARGUMENTS IN SUPPORT
          Writing in support, the bill's sponsor, the California Central  
          Valley Flood Control Association (CCVFCA) states that AB1061  
          will "enable agricultural, oil, and gas lease proceeds to be  
          directly available for the maintenance of flood control  
          projects. Applying lease revenues directly to maintenance  
          activities will help in completing repairs and preservation of  
          levees, while also maximizing environmental mitigation and  
          enhancement."

          ARGUMENTS IN OPPOSITION
          None Received

          COMMENTS
          Who currently controls proceeds from the lease or renting of  
          District lands? The management and control of the District is  
          vested in the Board, which falls under the authority of DWR.  
          Board leases include traditional grazing and agricultural leases  
          as well as oil and gas leases that generate rent and royalties.  
          Existing law requires all lease revenues from land where DWR is  
          the lessor to be deposited directly into the General Fund.

          Similar Legislation:
          SB749 (Wolk, 2013, Chapter 387) amended Fish and Game Code  
          Section 1745.1 to authorize the Department of Fish and Wildlife  
          to lease department-managed lands for agricultural activities.  
          In addition, the bill allowed any moneys collected from these  
          agricultural leases to be used to support the management,  
          maintenance, restoration, and operations of department-managed  
          lands. One example of a successful management 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.


          SUPPORT








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          California Central Valley Flood Control Association (CCVFCA)  
          (Sponsor)
          Association of California Water Agencies (ACWA)

          OPPOSITION
          None Received

          
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