Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1390


Introduced by Assembly Members Alejo and Perea

(Principal coauthors: Assembly Members Bigelow, Gray, Olsen, and Salas)

(Principal coauthors: Senators Cannella and Vidak)

(Coauthors: Assembly Members Cooley, Cooper, Eggman, Frazier, Ridley-Thomas, and Wilk)

(Coauthors: Senators Fuller, Galgiani, and Nielsen)

February 27, 2015


An actbegin insert to add Chapter 7 (commencing with Section 830) to Title 10 of Part 2 of the Code of Civil Procedure,end insert relating to groundwater.

LEGISLATIVE COUNSEL’S DIGEST

AB 1390, as amended, Alejo. Groundwater: adjudication.

begin insert

The California Constitution requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable. Under the Sustainable Groundwater Management Act, which applies to all groundwater basins in the state, all basins designated as high- or medium-priority basins by the Department of Water Resources as basins that are subject to critical conditions of overdraft, as specified, are required to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020.

end insert
begin insert

This bill would establish special procedures for adjudication actions, which are defined as actions filed in superior court to determine the rights to extract groundwater within a basin or store water from a basin, as specified. The bill would authorize the court to determine all rights to groundwater in a basin whether based on appropriation, overlying right, or other basis of right. The bill would require these special procedures to govern all adjudication actions except in specified cases not involving allocation of a basin’s groundwater supply.

end insert
begin insert

This bill would require a complaint filed in an adjudication action to name certain defendants, including all counties or cities that provide water service and overlie the basin in whole or in part, and to be served and published in a specified manner. The bill would require the complaint to be accompanied by a draft notice and draft form answer, as specified, and would require the court to hold a preliminary hearing within 180 days of the filing of the complaint to determine if the action should proceed to comprehensively determine groundwater rights in the basin in accordance with the special procedures for adjudication actions. If the court makes that determination, based on a finding that at least one of 4 specified conditions is met, the bill would require the court to issue an order declaring the case an adjudication action and authorizing the service of the landowners of the basin. After the court order authorizing service of the landowners of the basin, the bill would require the plaintiff to file an ex parte application seeking court approval of the draft notice and draft form answer filed with the complaint. If the court approves the draft notice and draft form answer, the bill would require the assessor or assessors of the county or counties in which the basin to be adjudicated lies to include the court-approved notice and form answer with the next property tax bill sent to each landowner in the basin. The bill would require the plaintiff to reimburse the assessor or assessors for the costs of including the court-approved notice and form answer with the property tax bills and, after those materials have been included with the property tax bills, would require the plaintiff to file a declaration under penalty of perjury with the court attesting to the completion of the mailing. By expanding the scope of an existing crime, the bill would impose a state-mandated local program. The bill would deem fulfillment of the service and publication provisions as effective service of process of the complaint and notice on all interested parties of the adjudication action for purposes of establishing in rem jurisdiction and the comprehensive effect of the adjudication action.

end insert
begin insert

This bill would authorize the court to convene an initial case management conference within 60 days of completion of service of the complaint and notice, as described above, after which the court could divide the adjudication action into phases. The bill would require the court to define the scope of any phase of the adjudication action by written order and would provide that the court’s discretion is not limited in ordering as many phases as the court deems appropriate for the expeditious and appropriate resolution of competing claims to the groundwater basin. In a phase of an adjudication action, the bill would require discovery to be strictly limited to the scope of the phase and would authorize the court to issue a written statement of decision at the completion of each phase. In addition, the bill would require each party to make, under penalty of perjury, specified initial disclosures within 60 days after the initial case management conference, except a plaintiff would be required to make the initial disclosures at the time it files the complaint. By expanding the scope of an existing crime, the bill would impose a state-mandated local program. The bill would authorize the court to appoint a special master in an adjudication action, and would provide that the special master’s duties could include, among other things, initiating a technical committee to conduct joint factfinding regarding the basin and would require the special master to compile a technical report of the findings, as specified. On or before January 1, 2017, the bill would require the Department of Water Resources to establish and maintain a list of individuals who may serve as special masters in adjudication actions and would prescribe the experience needed for an individual to be placed on the list. Finally, upon entry of a final order or judgment finalizing an adjudication action under these special procedures, the bill would require the basin subject to the final order or judgment to be treated the same as certain adjudicated basins identified in the Sustainable Groundwater Management Act, including requiring the watermaster, or local agency within the basin, or a portion of the basin, identified in the final order or judgment to submit certain documents to the department.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

Under existing law, the right to water or to the use of water is limited to that amount of water that may be reasonably required for the beneficial use to be served. Existing law declares that the storing of water underground, and related diversions for that purpose, constitute a beneficial use of water if the stored water is thereafter applied to the beneficial purposes for which the appropriation for storage was made.

end delete
begin delete

Existing law authorizes the State Water Resources Control Board, under certain circumstances, to grant a petition signed by one or more claimants to water of any stream system, as defined, requesting the determination of the rights of the various claimants to the water of that stream system. Existing law authorizes the board, upon the granting of that petition, to determine all rights to water of the stream system, whether based on appropriation, riparian right, or other basis of right.

end delete
begin delete

This bill would declare the intent of the Legislature to enact legislation that would, among other things, develop procedures to provide a more streamlined and expeditious groundwater adjudication process by which courts may conduct comprehensive determinations of all rights to groundwater in a basin, while fully respecting established principles of water rights law and providing participants appropriate due process.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 7 (commencing with Section 830) is
2added to Title 10 of Part 2 of the end insert
begin insertCode of Civil Procedureend insertbegin insert, to read:end insert

begin insert

3 

4Chapter  begin insert7.end insert Actions Relating to Groundwater Rights
5

5 

6Article begin insert1.end insert  General Provisions
7

 

8

begin insert830.end insert  

(a) The Legislature finds and declares all of the following:

9(1) Diverse economic, environmental, and social interests are
10implicated by sustainable groundwater management.

11(2) Efficient resolution of conflicts concerning right to use and
12manage groundwater will promote beneficial use of the waters of
13the state consistent with Section 2 of Article X of the California
14Constitution, the state water policies mandated in Chapter 1
15(commencing with Section 100) of Division 1 of the Water Code,
16and as intended by the Sustainable Groundwater Management Act
17(Part 2.74 (commencing with Section 10720) of Division 6 of the
18Water Code).

19(3) Previous groundwater adjudication actions have taken more
20than a decade before issuance of a final judgment by the court in
21an adjudication action.

P5    1(4) In light of the scope and complexities of groundwater
2adjudication actions, the state’s welfare will be promoted by the
3development of specially tailored legal procedures to efficiently
4process groundwater adjudication actions.

5(b) It is the intent of the Legislature to do all of the following:

6(1) Develop procedures to provide a more streamlined and
7expeditious groundwater adjudication process, while at the same
8time fully respecting established principles of water rights law
9and providing participants appropriate due process.

10(2) Establish procedures by which courts may conduct
11 comprehensive determinations of all rights to groundwater in a
12basin.

13(3) Encourage early resolution of groundwater rights disputes.

14(4) Substantially reduce the time and expense of groundwater
15adjudications, while ensuring fair procedures to protect all parties’
16rights to groundwater.

17(5) Ensure the judicial process is not used to unnecessarily
18delay or thwart the goal of managing groundwater in a sustainable
19manner.

20(6) Reduce the burdens placed on the judiciary under the current
21adjudication process.

22

begin insert830.5.end insert  

For purposes of this chapter, the following definitions
23apply:

24(a) “Adjudication action” means an action filed in superior
25court to determine the rights to extract groundwater within a basin
26or store water from a basin, including, but not limited to, actions
27to quiet title respecting rights to extract or store groundwater or
28an action brought to impose a physical solution on a basin.

29(b) “Basin” means a groundwater basin or subbasin identified
30pursuant to Section 839.

31(c) “Bulletin 118” means the department’s report entitled
32“California’s Groundwater: Bulletin 118” updated in 2003, as it
33may be subsequently updated or revised.

34(d) “Complaint” means a complaint filed in superior court to
35determine rights to extract groundwater and includes any
36cross-complaint that initiates an adjudication action in response
37to a plaintiff’s complaint or other cross-complaint.

38(e) “Department” means the Department of Water Resources.

39(f) “Groundwater” means water beneath the surface of the earth
40within the zone below the water table in which the soil is completely
P6    1saturated with water, but does not include water that flows in
2known and definite channels.

3(g) “Groundwater extraction facility” means a device or method
4for extracting groundwater from within a basin.

5(h) “Groundwater recharge” means the augmentation of
6groundwater, by natural or artificial means.

7(i) “Person” includes, but is not limited to, counties, local
8agencies, state agencies, federal agencies, tribes, business entities,
9and individuals.

10(j) “Plaintiff” means the person filing the complaint initiating
11an adjudication action and includes a cross-complainant who
12initiates an adjudication action by cross-complaint.

13(k) “Sustainable Groundwater Management Act” means the
14provisions of Part 2.74 (commencing with Section 10720) of
15Division 6 of the Water Code.

16

begin insert831.end insert  

(a) This chapter establishes special procedures for
17adjudication actions. This chapter shall not alter groundwater
18rights or the law concerning groundwater rights. The other
19provisions of this code apply to procedures in adjudication actions
20to the extent they do not conflict with the provisions of this chapter.

21(b) In an adjudication action subject to this chapter, the court
22may determine, in the proceedings provided for in this chapter,
23all rights to groundwater in a basin whether based on
24appropriation, overlying right, or other basis of right.

25(c) The court’s final judgment in an adjudication action, as to
26the right to groundwater of each party, may declare the priority,
27 amount, purposes of use, extraction location, and place of use of
28the water, together with appropriate injunctive relief, subject to
29terms adopted by the court to implement a physical solution in the
30adjudication action.

31(d) The procedures of this chapter shall govern all adjudication
32actions, unless the court finds either of the following, in which
33case the action shall proceed in accordance with other provisions
34of law:

35(1) The action concerns only claims that the operation of a
36party’s groundwater extraction facility is interfering with the
37physical availability of groundwater to one or more other parties’
38groundwater extraction facility or facilities and does not involve
39an allocation of the basin’s groundwater supply.

P7    1(2) The action concerns only claims to extract, or to prevent
2interference with extractions of, a specific source of groundwater
3recharge and does not involve an allocation of the basin’s
4groundwater supply.

5(e) In implementing this chapter and applying the other
6provisions of this code in an adjudication action, the court should
7expedite resolution of the adjudication action and, where a
8groundwater sustainability plan is required pursuant to the
9Sustainable Groundwater Management Act, the court should
10encourage the parties to cooperatively develop a groundwater
11sustainability plan that may serve as the basis of a stipulated
12judgment setting forth a physical solution for management of the
13basin.

14 

15Article begin insert2.end insert  Commencement of Action
16

 

17

begin insert832.end insert  

(a) Unless a court orders otherwise for good cause, the
18complaint in an adjudication action shall name all of the following
19persons as defendants:

20(1) All counties or cities that provide water service and overlie
21the basin in whole or in part.

22(2) All general or special districts empowered to manage or
23replenish groundwater resources of the basin in whole or in part.

24(3) The operator of a public water system that uses groundwater
25from the basin to supply water service.

26(4) The operator of a state small water system that uses
27groundwater from the basin to supply water service.

28(b) Within 30 days of the filing of the complaint, all of the
29following shall occur:

30(1) The plaintiff shall serve the complaint on all persons named
31as defendants pursuant to subdivision (a) in the manner prescribed
32by Article 3 (commencing with Section 415.10) of Chapter 4 of
33Title 5.

34(2) The plaintiff shall publish notice of the complaint pursuant
35to Section 6066 of the Government Code.

36(3) The plaintiff, or its representative, shall personally appear
37at a meeting of the board of supervisors of each county overlying
38the basin at least in part, and announce that the plaintiff has filed
39the adjudication action and where copies of the complaint may be
40obtained.

P8    1(4) The court shall allow any person to intervene in the
2adjudication action upon an ex parte application that demonstrates
3that the person holds fee simple ownership in a parcel in the basin.
4A person filing the ex parte application shall give notice to the
5plaintiff consistent with the California Rules of Court.

6

begin insert832.5.end insert  

(a) Within 180 days of the filing of a complaint to
7adjudicate groundwater rights, the court shall conduct a
8preliminary hearing to determine if the action should proceed to
9comprehensively determine groundwater rights in the basin in
10accordance with this chapter. At the preliminary hearing the court
11may hear expert or lay testimony and the plaintiff shall demonstrate
12one of the following:

13(1) There is substantial evidence that declining groundwater
14levels may cause an undesirable result in the basin.

15(2) The court cannot provide adequate relief among the potential
16claimants to a groundwater right in the basin subject to the
17adjudication action unless the adjudication action is completed.

18(3) The parties sufficient to comply with Section 847 have agreed
19to a proposed judgment in the adjudication action.

20(4) Consistent with Section 2 of Article X of the California
21Constitution, the interests of groundwater rights holders will be
22expeditiously and effectively served by the completion of the
23adjudication action.

24(b) If, after the preliminary hearing, the court finds that any
25condition described in paragraphs (1) to (4), inclusive, of
26subdivision (a) is met, the court shall issue an order declaring that
27the case is an adjudication action subject to this chapter and
28authorizing service of landowners in accordance with Section 833.

29(c) If, after the preliminary hearing, the court finds that no
30condition described in paragraph (1) to (4), inclusive, of
31subdivision (a) is met, the court shall either dismiss the
32adjudication action without prejudice, or find that the action is
33not subject to this chapter under Section 831 and permit the action
34to proceed pursuant to the other provisions of this code.

35(d) Before the preliminary hearing the court may allow
36expedited discovery consistent with this chapter. The court shall
37actively manage the expedited discovery to prevent delays in order
38to enable, to the greatest extent possible and pursuant to Section
39833, service of landowners through the next mailing of property
40tax bills within the basin.

P9    1

begin insert833.end insert  

(a) Together with the filing of the complaint, the plaintiff
2shall file both of the following:

3(1) A draft notice titled “NOTICE OF COMMENCEMENT OF
4GROUNDWATER BASIN ADJUDICATION” in no less than
520-point font and the following text printed immediately below the
6draft notice title in no less than 14-point font:

7“THIS NOTICE IS IMPORTANT. ANY RIGHTS YOU CLAIM
8TO PUMP OR STORE GROUNDWATER FROM THE BASIN
9IDENTIFIED IN THIS NOTICE MAY BE AFFECTED BY A
10LAWSUIT INITIATED BY THE COMPLAINT SUMMARIZED
11BELOW.

12A copy of the complaint may be obtained by contacting the
13plaintiff or the plaintiff’s attorney identified in this notice. If you
14claim rights to pump or store groundwater within the basin, either
15now or in the future, you may become a party to this lawsuit by
16filing an answer to the lawsuit on or before the deadline specified
17in this notice by completing the attached form answer and filing
18it with the court indicated in this notice and by sending a copy of
19the form answer to the plaintiff or the plaintiff’s attorney.

20Failing to participate in this lawsuit could have a significant
21adverse effect on any right to pump or store groundwater that you
22may have. You may seek the advice of an attorney in relation to
23this lawsuit. Such attorney should be consulted promptly. A case
24management conference in this groundwater basin adjudication
25proceeding shall occur on the date specified in this notice. If you
26intend to participate in the groundwater adjudication proceeding
27to which this notice applies, you are advised to attend the initial
28case management conference in person or have an attorney
29represent you at the initial case management conference.

30Participation requires the production of all information
31regarding your groundwater use. You must provide this information
32by the date identified in this notice.

33A form answer is provided for your convenience. You may fill
34out the form answer and file it with the court. Should you choose
35to file the form answer, it will serve as an answer to all complaints
36and cross-complaints filed in this case.”

37(2) (A) A draft form answer titled “ANSWER TO
38ADJUDICATION COMPLAINT” in no less than 20-point font and
39the following text printed immediately below the draft form answer
40title in no less than 14-point font:

P10   1“The undersigned denies all material allegations in the
2complaint or cross-complaint in this action that seeks to adjudicate
3rights in the groundwater basin and asserts all applicable
4affirmative defenses to that complaint.”

5(B) Notwithstanding any other law, the filing of an answer in
6the form described in subparagraph (A) in an adjudication action
7is sufficient to put at issue all material allegations and applicable
8affirmative defenses to the complaint in the adjudication action.
9If a party intends to seek adjustment of the basin’s boundaries, it
10shall disclose that intention in the form answer described in
11subparagraph (A).

12(b) The draft notice described in paragraph (1) of subdivision
13(a) shall include the following information immediately following
14the text described in paragraph (1) of subdivision (a):

15(1) The name of the basin that is the subject of the adjudication
16action.

17(2) A space to be completed with the case number assigned to
18the adjudication action, and the name and address of the court
19and department to which the action is assigned.

20(3) The name, address, telephone number, and email address
21of the plaintiff, or plaintiff’s attorney, from which the complaint
22may be obtained.

23(4) A space to be completed with a date upon which the court
24will hold a case management conference. The court shall determine
25the date for the case management conference.

26(5) The date an answer must be filed with the court.

27(6) A summary of the causes of action alleged in the complaint
28and the relief sought. The summary shall not exceed 25 lines.

29(c) Within 15 days of a court order authorizing service of
30landowners pursuant to this section, the plaintiff shall file an ex
31parte application that seeks the court’s approval of plaintiff’s draft
32notice and draft form answer filed pursuant to subdivision (a).
33The plaintiff shall give at least 24 hours’ notice of the hearing on
34the ex parte application to all parties identified in subdivision (a)
35of Section 832 and any other party the plaintiff has served. The
36plaintiff’s notice of the ex parte application shall include a copy
37of the draft notice and draft form answer filed pursuant to
38subdivision (a).

P11   1(d) Once the court approves the draft notice, the draft notice
2shall substitute for the summons otherwise provided for in civil
3actions pursuant to Section 412.20.

4(e) Following a court order authorizing service of landowners
5pursuant to this section, the plaintiff shall identify, as expeditiously
6as possible and using the records of the assessor or assessors of
7the county or counties in which the basin to be adjudicated lies,
8the names and addresses of all holders of fee title to real property
9within the basin. The plaintiff shall provide the court and all parties
10notice of its acquisition of, or sufficient access to, this information.
11Upon receipt of the court order authorizing service of landowners
12pursuant to this section and the plaintiff’s draft notice and draft
13form answer, as approved by an order of the court, the assessor
14or assessors shall include the court-approved notice and form
15answer with the next property tax bill sent to each landowner in
16the basin. The plaintiff shall reimburse the assessor or assessors
17for the costs of including the court-approved notice and form
18answer, unless otherwise ordered by the court. The assessor or
19assessors may appear at any court proceeding concerning the
20costs associated with including the court-approved notice and
21form answer with the property tax bills.

22(f) After the assessor or assessors include the court-approved
23notice and form answer with the property tax bills pursuant to
24subdivision (e), the plaintiff shall file with the court a declaration
25under penalty or perjury attesting to the completion of the mailing.

26(g) Notwithstanding any other law, the fulfillment of the service
27provisions of this section, the publication provisions of paragraph
28(2) of subdivision (b) of Section 832, and the remaining service
29and notice provisions of this chapter shall be deemed effective
30service of process of the complaint and notice on all interested
31parties of the adjudication action for purposes of establishing in
32rem jurisdiction and the comprehensive effect of the adjudication
33action.

34

begin insert834.end insert  

Within 15 days of the service of a complaint against or
35by a local agency in an adjudication action, and upon the motion
36of any party, the court shall either transfer the adjudication action
37for all purposes to a neutral county or request the chairperson of
38the Judicial Council to assign a disinterested judge from a neutral
39county to hear the adjudication action for all purposes. For
40purposes of this section, “local agency” has the same definition
P12   1as that term is defined in subdivision (m) of Section 10721 of the
2Water Code.

3

begin insert835.end insert  

In an adjudication action there may only be two
4disqualifications of judges pursuant to Section 170.6,
5notwithstanding the provisions of Section 170.6 concerning sides
6in an action. A request or motion to disqualify a judge under
7Section 170.6 shall be filed within 30 days of completion of service
8pursuant to Section 833, or within 30 days of a transfer or
9assignment pursuant to Section 834.

10

begin insert836.end insert  

An adjudication action is presumed to be a complex case
11within the meaning of Rule 3.400 of the California Rules of Court
12unless a party demonstrates that the adjudication action is not
13complex.

14

begin insert837.end insert  

Service of pleadings in an adjudication action, other than
15the complaint initiating an adjudication action, shall occur
16electronically to the greatest extent possible. If available, service
17shall occur through a court-provided electronic service system. If
18a court-provided electronic service system is unavailable, the
19parties shall serve documents by email or other equivalent
20electronic means to the greatest extent possible. To enable
21electronic service of pleadings, the attorneys or record or parties
22representing themselves shall include their email address in the
23captions of pleadings they file in the adjudication action.

24 

25Article begin insert3.end insert  Conduct of Action
26

 

27

begin insert838.end insert  

(a) In managing an adjudication action, the court may,
28notwithstanding any other law, convene a case management
29conference within 60 days after service is completed pursuant to
30Section 833.

31(b) After the initial case management conference the court may
32divide the adjudication action into phases. This section shall not
33limit the court’s discretion to order as many phases as the court
34deems appropriate for the expeditious and appropriate resolution
35of competing claims to the groundwater basin. The court shall
36define the scope of any phase of the adjudication action by written
37order and shall revisit that definition only upon a demonstration
38that continuing with the phase as previously defined would
39substantially impede the expeditious resolution of the adjudication
40action.

P13   1(c) In a phase of an adjudication action, discovery shall be
2strictly limited to the scope of the phase, as defined in the court’s
3written order. The court may make any appropriate orders to
4ensure that discovery during a phase remains within the scope of
5the phase and, unless an injustice would otherwise result, shall
6impose monetary sanctions on parties, attorneys, or both parties
7and attorneys, who, during the phase, propound discovery outside
8the scope of the phase.

9(d) Pursuant to Section 632, a court may issue a written
10statement of decision at the completion of each phase of the
11adjudication action. If the court issues a written statement of
12decision, that written statement of decision shall be considered a
13resolution of the phase and shall be binding for the remainder of
14the adjudication action unless reversed or modified by an appellate
15court. Appellate review of a court’s written statement of decision
16that concludes a phase of the adjudication action may be by writ
17only and a party may only appeal the court’s final judgment.

18(e) A court may facilitate the formation of a class or classes of
19overlying groundwater rights holders pursuant to the criteria
20specified in Section 382.

21

begin insert839.end insert  

(a) Subject to subdivision (b), the initial basin boundaries
22for an adjudication action shall be the basin boundaries identified
23in Bulletin 118 as of the date the complaint initiating the
24adjudication action is filed. Based on these boundaries, the court
25and the parties shall initiate the procedures to serve the complaint
26in an adjudication action in accordance with Section 833.

27(b) The court may consider adjusting a basin’s boundaries at
28the initial phase of an adjudication action. The court may refer
29consideration of adjustment of a basin’s boundaries to the
30department for recommendations in accordance with the
31procedures described in Section 10722.2 of the Water Code. The
32court may stay any proceedings in the adjudication action pending
33 the department’s resolution of any boundary adjustments, except
34the court shall not stay the parties’ initial disclosures made
35pursuant to Section 840.

36(c) If a court, based on department recommendations, adjusts
37the basin’s boundaries after completion of the initial phase of an
38adjudication action, the basin’s boundaries, as determined by the
39court, shall be the basin’s boundaries for all purposes in all
40subsequent phases of the adjudication action. Appellate review of
P14   1a court’s determination of the basin’s boundaries after completion
2of the initial phase of the adjudication action may be by writ only
3and shall not be subject to any later writ or appeal.

4

begin insert840.end insert  

(a) Except as otherwise stipulated by the parties or
5ordered by the court, and without waiting for a discovery request,
6a party shall provide the court or special master initial disclosures
7that include all of the following information:

8(1) The name, address, telephone number, and email address
9of the party completing the form developed pursuant to subdivision
10(b).

11(2) The quantity of any groundwater extraction from the basin
12by the party, or the party’s representative or agent, during each
13of the 10 calendar years immediately preceding the filing of the
14complaint.

15(3) The beneficial purpose of any use of groundwater from the
16basin or the beneficial use of any alternative water use that the
17party claims as its use of groundwater.

18(4) The location of any extraction of groundwater from the basin
19by the party, or the party’s representative or agent.

20(5) The location of any beneficial use of groundwater from the
21basin or beneficial use of any alternative water use that the party
22claims as its use of groundwater.

23(6) The quantity of any beneficial use of any alternative water
24use that the party claims as its use of groundwater under any
25applicable law, including, but not limited to, Section 1005.1,
261005.2, or 1005.4 of the Water Code.

27(7) Identification of all surface water rights and contracts that
28the party claims provides the basis for its water right claims in
29the adjudication action.

30(8) The quantity of any replenishment of water to the basin that
31augmented the basin’s native water supply, resulting from the
32intentional storage of imported or non-native water in the basin,
33managed recharge of surface water, or return flows resulting from
34the use of imported water or non-native water on lands overlying
35the basin by the party, or the party’s representative or agent,
36during each of the 10 calendar years immediately preceding the
37filing of the complaint.

38(9) The names, addresses, telephone numbers, and email
39addresses of all persons possessing information that supports the
40party’s disclosures.

P15   1(10) Any other information deemed appropriate by the court
2for initial disclosure in an adjudication action.

3(b) The Judicial Council shall develop a form for initial
4disclosures made pursuant to subdivision (a) to facilitate the
5consistent, independent, impartial, and accessible administration
6of adjudication actions.

7(c) (1) Unless otherwise stipulated by the parties or ordered
8by the court, and not including the plaintiff that initiates the
9adjudication action, a party shall make the initial disclosures
10described in subdivision (a) within 60 days after the initial case
11management conference in the adjudication action.

12(2) A plaintiff that initiates the adjudication action shall make
13the initial disclosures described in subdivision (a) at the time it
14files the complaint by lodging the required information with the
15court in an electronic format. The plaintiff shall serve the required
16information on the defendants or cross-defendants that it names
17when it serves the complaint.

18(3) The court may order, after the initial case management
19conference, any supplemental disclosures, other than those
20described in subdivision (a), that may expedite resolution of the
21adjudication action.

22(d) Unless otherwise ordered by the court, a party that is first
23served, or otherwise joined to the adjudication action, after the
24initial case management conference shall make the disclosures
25described in subdivision (a) within 30 days after being served or
26joined, unless a different time is set by stipulation of the parties
27or an order of the court. The court shall liberally consider any
28motions or applications to extend the time for a newly-served or
29-joined party to make the disclosures described in subdivision (a).

30(e) A party shall make its initial disclosures based on the
31information then reasonably available to it. A party is not excused
32from making its initial disclosures because it has not fully
33investigated the case, because it challenges the sufficiency of
34another party’s disclosures, or because another party has not
35made its disclosures.

36(f) A party that has made its initial disclosures, as described in
37subdivision (a), or that has responded to another party’s discovery
38request, shall supplement or correct a disclosure or response in
39either of the following situations:

P16   1(1) In a timely manner if the party learns that in some material
2respect the disclosure or response is incomplete or incorrect and
3the additional or corrective information has not otherwise been
4made known to the other parties during the disclosure or discovery
5process.

6(2) As ordered by the court.

7(g) To the greatest extent possible, a party shall serve his or
8her initial disclosures electronically through a court-provided
9electronic service system, email, or another method of electronic
10transmission. If it is not possible for the party to serve his or her
11disclosures electronically, he or she shall serve the disclosures in
12an electronic format saved on a portable storage media device
13such as a compact disc or flash drive.

14(h) A party’s obligations under this section may be enforced by
15a court on its own motion or the motion of a party pursuant to
16Section 2030.300.

17(i) A party’s disclosures under this section shall be verified
18under penalty of perjury as being true and correct to the best of
19the party’s knowledge.

20

begin insert841.end insert  

(a) In addition to all other disclosures required by this
21chapter, a party shall disclose to the other parties the identity of
22any expert witness it may use at trial to present evidence. For
23purposes of this chapter, “expert witness” means a witness
24qualified pursuant to Section 720 of the Evidence Code.

25(b) Unless otherwise stipulated by the parties or ordered by the
26court, the disclosure made pursuant to subdivision (a) shall be
27accompanied by a written report prepared and signed by the expert
28witness if the witness is retained or specially employed by the party
29offering the expert witness to testify as an expert in the action, or
30if the expert witness’s duties as the party’s employee regularly
31involves giving expert testimony. The report shall include all of
32the following:

33(1) A complete statement of all opinions the witness will express
34and the basis and reasons for those opinions.

35(2) The facts or data considered by the witness in forming his
36or her opinions.

37(3) Any exhibits the witness will use to summarize or support
38his or her opinions.

39(4) The witness’s qualifications, including a list of all
40publications authored by the witness in the previous 10 years.

P17   1(5) A list of all other cases in which the witness testified as an
2expert at trial or by deposition in the last five years.

3(6) A statement of the compensation to be paid for the witness’s
4work and testimony in the adjudication action.

5(c) If subdivision (b) does not apply to an expert witness because
6of a stipulation by the parties or an order of the court, the witness’s
7disclosure shall include both of the following:

8(1) The subject matter on which the witness is expected to
9present evidence.

10(2) A summary of the witness’s opinions, and the facts or data
11considered by the witness in forming his or her opinions.

12(d) Unless otherwise stipulated by the parties, a party shall
13make the disclosures of any expert witness it intends to present at
14trial, except for an expert witness presented solely for purposes
15of impeachment or rebuttal, at the times and in the sequence
16ordered by the court. If there is no stipulation or court order, the
17disclosures of an expert witness shall be made as follows:

18(1) At least 30 days after the court’s entry of an order
19establishing the scope of the relevant phase of the adjudication
20action.

21(2) Except for a supplemental expert witness described in
22paragraph (3), at least 60 days before the date set for trial of the
23relevant phase of the adjudication action.

24(3) For a supplemental expert witness who will express an
25opinion on a subject to be covered by another expert witness
26designated by an adverse party that was not among the subjects
27covered by an expert witness initially disclosed by the party
28offering the supplemental expert witness, no more than 20 days
29after the initial expert witness disclosure date.

30(e) The court may modify the disclosure requirements of
31 subdivisions (b) to (d), inclusive, for expert witnesses presented
32solely for purposes of impeachment or rebuttal. In modifying the
33disclosure requirements, the court shall adopt disclosure
34requirements that expedite the court’s consideration of the issues
35presented and shall ensure that expert testimony presented solely
36for purposes of impeachment or rebuttal is strictly limited to the
37scope of the testimony that it intends to impeach or rebut.

38(f) (1) A party whose expert witness has made a disclosure
39pursuant to this section shall promptly supplement or correct the
40expert witness’s disclosure in either of the following instances:

P18   1(A) In a timely manner if the party learns that in some material
2respect the disclosure is incomplete or incorrect, if the additional
3or corrective information has not otherwise been made known to
4the other parties during the disclosure or discovery process.

5(B) As ordered by the court.

6(2) A party’s duty to supplement or correct its expert witness’s
7disclosure includes the information included in the report and the
8information given during the expert witness’s deposition. Unless
9otherwise stipulated by the parties or ordered by the court, any
10supplementation or correction shall occur at least 14 days before
11trial of the applicable phase of the adjudication action.

12(3) The court may authorize a supplemental deposition of an
13expert witness based on a supplemental disclosure made pursuant
14to this subdivision. The court shall appropriately condition the
15authorization of a supplemental deposition of an expert witness
16to ensure the expeditious completion of the applicable phase of
17the adjudication action. The court may require the party whose
18 expert makes the supplemental disclosure to pay some or all of
19the costs associated with the supplemental deposition.

20(g) To the greatest extent possible, the parties shall serve expert
21witness disclosures electronically through a court-provided
22electronic service system, email, or another method of electronic
23transmission. If it is not possible for the party to serve his or her
24expert witness disclosures electronically, he or she shall serve the
25expert witness disclosures in an electronic format saved on a
26portable storage media device such as a compact disc or flash
27drive.

28(h) If a party or its expert witness fails to comply with this
29section, the court may exclude the expert witness’s testimony from
30trial, authorize additional depositions of the expert witness at the
31party’s expense, or take other appropriate action upon the noticed
32motion, or ex parte application, of a party.

33

begin insert842.end insert  

(a) A court in an adjudication action may require the
34parties to submit written testimony of relevant witnesses in the
35forms of affidavits or declarations under penalty or perjury in lieu
36of presenting live testimony. The required written testimony may
37include, but is not limited to, expert witness opinions and testimony
38that authenticates documentary evidence. The court may order
39that the written testimony constitutes the entirety of the witness’s
40direct testimony, require the written testimony to include any
P19   1exhibits offered in support of the written testimony, and, in the
2case of written testimony of an expert witness, require a statement
3of the witness’s qualifications.

4(b) If the court requires the submission of written testimony
5 pursuant to subdivision (a), a complete copy of the direct testimony
6shall be served at least 21 days before trial of the applicable phase
7of the adjudication action. A complete copy of any rebuttal
8testimony shall be served no later than the first day of trial of the
9applicable phase of the adjudication action. The court shall ensure
10the rebuttal testimony is strictly limited to the scope of the direct
11testimony to which it responds.

12(c) If the contents of the written testimony would have been
13admissible if the witness testified orally, the written testimony shall
14be received by the court as a documentary exhibit if, at the trial
15of the applicable phase of the adjudication action, the witness
16whose written testimony is being offered is made available for
17cross-examination by all parties.

18

begin insert843.end insert  

(a) In an adjudication action, the court may appoint a
19special master whose duties may include the following:

20(1) Initiating a technical committee consisting of the parties,
21the parties’ designated representatives, or both, to conduct joint
22factfinding as to the basin’s safe yield of groundwater, water
23demand, and any other technical issues, as directed by the court.
24The special master shall compile a technical report of the findings
25in accordance with Section 844.

26(2) Conducting or facilitating mediation or settlement
27discussions.

28(3) Performing other tasks the court may deem appropriate.

29(b) The special master may be employed by the court as a
30full-time or part-time employee, or retained as an independent
31contractor. A special master’s compensation and other expenses
32related to the conduct of an adjudication action shall be fixed by
33the court, apportioned pro rata to the extent reasonably feasible
34to do so, and paid by all parties unless the parties agree to another
35allocation or the court determines that, in the interests of justice,
36another allocation is necessary. The court may provide for the
37collection and disbursement of special master fees as it deems
38appropriate.

39(c) (1) To assist trial courts in selecting special masters the
40department shall, on or before January 1, 2017, establish and
P20   1maintain a list of individuals who may serve as special masters in
2adjudication actions. To be placed on the list an individual shall
3have at least 10 years experience as either of the following:

4(A) A licensed professional engineer, professional hydrologist,
5or professional geologist.

6(B) An attorney licensed to practice law in the state.

7(2) The department shall establish any other qualifications that
8may be appropriate to ensure that individuals placed on the list
9are qualified to assist a court in an adjudication action.

10

begin insert844.end insert  

(a) If a technical committee is established pursuant to
11Section 843, the special master shall provide all parties with a
12copy of a draft technical report he or she prepares and a notice
13setting a day at least 60 days after the draft technical report has
14been provided to all parties before which the parties may submit
15to the special master written objections to the draft technical
16report.

17(b) An objection to the draft technical report shall identify the
18specific grounds and evidence on which the objection is based.
19Within 10 days after the close of the period for filing objections,
20the special master shall provide copies of the objections to all
21parties.

22(c) The special master may notice and hold hearings, as he or
23she deems appropriate, to gather information or address issues
24raised in the objections to the draft technical report.

25(d) The special master shall consider the objections to the draft
26technical report and develop a final certified copy of the technical
27report that shall be filed with the court, together with a certified
28copy of all evidence considered by the special master in preparing
29the draft technical report, all evidence identified in the objections
30to the draft technical report, and all evidence considered by the
31special master in preparing the final technical report.

32

begin insert845.end insert  

Chapter 2 (commencing with Section 1115) of Division
339 of the Evidence Code shall apply to all mediations, settlement
34conferences, and other similar out-of-court negotiations in
35adjudications actions subject to this chapter.

36

begin insert846.end insert  

(a) It is the policy of the state to encourage the
37compromise and settlement of adjudication actions.

38(b) Upon the motion of any party to an adjudication action, a
39court may do any of the following:

P21   1(1) Stay an adjudication action for a period of up to one year,
2subject to renewal in the court’s discretion upon a showing of
3good cause, in order to facilitate any of the following:

4(A) (i) Timely development of a groundwater sustainability
5plan under the Sustainable Groundwater Management Act that
6may serve as the basis of a stipulated judgment setting forth a
7physical solution for management of the basin.

8(ii) If the court stays an adjudication action for purposes of
9facilitating timely progress on a groundwater sustainability plan,
10the court may direct the parties to provide the court with regular
11updates on the progress in developing the groundwater
12sustainability plan.

13(B) Technical studies that may be useful to the parties in
14developing a stipulated judgment or physical solution.

15(C) Voluntary mediation on all, or a portion of, the subject
16matters or legal questions identified in the adjudication action or
17any phase of the adjudication action.

18(D) Compromise and settlement of the adjudication action, a
19phase of the adjudication action, or any subject matter of the
20adjudication action or a phase of the adjudication action.

21(2) Schedule mandatory mediation and appointment of a neutral
22mediator concerning the adjudication action, a phase of the
23adjudication action, or any subject matter of the adjudication
24action or a phase of the adjudication action.

25(3) Schedule phases of trial in combination with mandatory
26mediation for purposes of fostering compromise concerning the
27adjudication action, a phase of the adjudication action, or any
28subject matter of the adjudication action or a phase of the
29adjudication action.

30(c) A stay may be extended for up to one year at a time. If a
31party opposes an extension of a stay, a stay may only be granted
32after a showing that there is good progress being made on the
33issues that were identified as the reasons for the stay. The total
34time period an adjudication action may be stayed shall not exceed
353 years.

36(d) A stay pursuant to this section shall not stay, or otherwise
37delay, the parties’ obligations to provide initial disclosures
38pursuant to Section 840 unless the court determines the initial
39disclosures will not benefit resolution of the adjudication action.

P22   1

begin insert847.end insert  

(a) If a party, or a group of parties, submits a proposed
2stipulated judgment that is supported by (1) more than 50 percent
3of all named parties in the adjudication action and (2) groundwater
4rights holders holding title to at least 75 percent of the
5groundwater production during the past 10 years in the basin, the
6court shall impose any physical solution that is part of the
7stipulated judgment as a component of the final judgment in the
8adjudication action if the physical solution satisfies all of the
9following criteria:

10(1) It furthers the interests of the state in ensuring that the water
11resources of the state are put to beneficial use to the fullest extent
12that they are capable, as required by Section 2 of Article X of the
13California Constitution.

14(2) It is consistent with all water right priorities in the basin.

15(3) It treats all objecting parties equitably as compared to the
16stipulating parties.

17(b) A party objecting to a proposed stipulated judgment shall
18demonstrate, by a preponderance of the evidence, that the proposed
19stipulated judgment does not satisfy the criteria described in
20paragraphs (1) to (3), inclusive, of subdivision (a). If the objecting
21party is unable to make this showing, the court may impose the
22proposed stipulated judgment on all parties.

23

begin insert848.end insert  

Upon entry of a final order or judgment finalizing an
24adjudication action under this chapter, the basin subject to that
25order or judgment shall, for purposes of compliance with the
26Sustainable Groundwater Management Act, be treated the same
27as if it were identified in subdivision (a) of Section 10720.8 of the
28Water Code. The watermaster, or a local agency within the basin,
29or a portion of the basin, identified in the final order or judgment
30shall do all of the following:

31(a) Within 90 days of entry of the final order or judgment, submit
32to the department a copy of the governing final judgment, or other
33judicial order or decree, and any amendments thereto.

34(b) Within 90 days of entry by a court, submit to the department
35a copy of an amendment made to the governing final judgment, or
36other judicial order or decree.

37(c) Annually submit to the department a report containing the
38following information, to the extent available, for the basin, or the
39portion of the basin, subject to the adjudication:

P23   1(1) Groundwater elevation data unless otherwise submitted
2pursuant to Section 10932 of the Water Code.

3(2) Annual aggregated data identifying groundwater extraction
4for the preceding water year.

5(3) Surface water supply used for, or available for use for,
6groundwater recharge or in-lieu use.

7(4) Total water use.

8(5) Change in groundwater storage.

9(6) The annual report submitted to the court.

end insert
10begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12the only costs that may be incurred by a local agency or school
13district will be incurred because this act creates a new crime or
14infraction, eliminates a crime or infraction, or changes the penalty
15for a crime or infraction, within the meaning of Section 17556 of
16the Government Code, or changes the definition of a crime within
17the meaning of Section 6 of Article XIII B of the California
18Constitution.

end insert
begin delete
19

SECTION 1.  

The Legislature finds and declares all of the
20following:

21(a) Diverse economic, environmental, and social interests are
22implicated by sustainable groundwater management.

23(b) Previous groundwater adjudication actions have taken more
24than a decade before issuance of a final judgment by the court in
25an adjudication action.

26(c) In light of the scope and complexities of groundwater
27adjudication actions, the state’s welfare will be promoted by the
28development of specially tailored legal procedures to efficiently
29process groundwater adjudication actions.

30

SEC. 2.  

It is the intent of the Legislature to enact legislation
31that would do all of the following:

32(a) Develop procedures to provide a more streamlined and
33expeditious groundwater adjudication process, while at the same
34time fully respecting established principles of water rights law and
35providing participants appropriate due process.

36(b) Establish procedures by which courts may conduct
37comprehensive determinations of all rights to groundwater in a
38basin.

39(c) Encourage early resolution of groundwater rights disputes.

P24   1(d) Substantially reduce the time and expense of groundwater
2adjudications, while ensuring fair procedures to protect all parties’
3rights to groundwater.

4(e) Ensure the judicial process is not used to delay or thwart the
5goal of managing groundwater in a sustainable manner.

6(f) Reduce the burdens placed on the judiciary under the current
7adjudication process.

end delete


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