Amended in Assembly June 29, 2016

Amended in Assembly June 21, 2016

Amended in Assembly May 31, 2016

Amended in Assembly March 7, 2016

Amended in Senate February 12, 2015

Senate Bill No. 37

Introduced by Senator Vidak

(Principal coauthor: Senator Fuller)

(Principal coauthors: Assembly Members Mathis and Salas)

December 1, 2014

An act to amend Section 10723 of the Water Code, and to create the Kings River East Groundwater Sustainability Agency, and prescribing its boundaries, organization, operation, management, financing, and other powers and duties, relating to water districts.

LEGISLATIVE COUNSEL’S DIGEST

SB 37, as amended, Vidak. Kings River East Groundwater Sustainability Agency Act.

Existing law, the Sustainable Groundwater Management Act, requires all groundwater basins designated as high- or medium-priority basins by the Department of Water Resources that are designated as basins subject to critical conditions of overdraft to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2020, and requires all other groundwater basins designated as high- or medium-priority basins to be managed under a groundwater sustainability plan or coordinated groundwater sustainability plans by January 31, 2022, except as specified. The act authorizes any local agency or combination of local agencies overlying a groundwater basin to decide to become a groundwater sustainability agency for that basin. The act deems certain agencies created by statute to manage groundwater the exclusive local agencies within their respective statutory boundaries with powers to comply with the act and authorizes these agencies to opt out of being the exclusive groundwater management agency.

This bill would create the Kings River East Groundwater Sustainability Agency and would require the agency’s initial boundaries to be established by the boards of supervisors of the Counties of Fresno and Tulare after a noticed public hearing. The bill would require the agency to elect to be a groundwater sustainability agency under the Sustainable Groundwater Management Act for that portion of the Kings Subbasin that lies within the boundaries of the agency and would require the agency to develop and implement a groundwater sustainability plan to achieve sustainable groundwater management within the territory of the agency. The bill would generally specify the powers and purposes of the agency. The bill would prescribe the composition of the 7-member board of directors of the agency and would require members and alternates to be chosen by certain member agencies, as specified. By imposing duties on the agency and the member agencies, the bill would impose a state-mandated local program. The bill would deem the Kings River East Groundwater Sustainability Agency the exclusive local agency with powers to comply with the Sustainable Groundwater Management Act.

begin insert

This bill would incorporate additional changes to Section 10723 of the Water Code proposed by both this bill and SB 564 to become operative only if both bills are enacted and become effective before January 1, 2017, and this bill is chaptered last.

end 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.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

This act shall be known and may be cited as the Kings River East Groundwater Sustainability Agency Act.

Kings River East Groundwater Sustainability Agency Act

 

Article 1.  Findings and Declarations

 

101.  

The Legislature hereby finds and declares that the
preservation of the groundwater resources within the territory of
the agency for agricultural, municipal, and industrial uses is in the
public interest and that the creation of the agency pursuant to this
act is for the common benefit of water users.

102.  

The Legislature further finds and declares that the
groundwater management activities of the agency benefit all
operators of groundwater extraction facilities within the territory
of the agency.

103.  

The Legislature further finds and declares that
circumstances in the territory of the agency to be formed hereby,
which may not exist in other locations, justify the formation of the
agency and the grant of powers contained in this act.

 

Article 2.  Creation and Purposes

 

201.  

(a) A groundwater management agency is hereby created
in the Counties of Fresno and Tulare to be known as the Kings
River East Groundwater Sustainability Agency.

(b) The agency shall be governed by a board as specified in
Section 501 and shall have the boundaries specified in Section
301. The agency shall only exercise the powers granted by this act
and the Sustainable Groundwater Management Act (Part 2.74
(commencing with Section 10720) of Division 6 of the Water
Code) for purposes of groundwater management within the
boundaries of the agency, together with any other powers as are
reasonably implied, necessary, and proper to carry out the
objectives and purposes of the agency to implement the Sustainable
Groundwater Management Act. The agency shall abide by the
rules and regulations promulgated by the Department of Water
Resources and the State Water Resources Control Board to
implement the Sustainable Groundwater Management Act.

 

Article 3.  Boundaries

 

301.  

For purposes of this act, the initial boundaries of the
agency shall include the following:

(a) All land located within the exterior perimeter boundaries of
Alta Irrigation District that is within the Counties of Fresno and
Tulare.

(b) All land located in the incorporated City of Reedley.

(c) All land located in Kings River Water District plus parcel
350-150-16 within the County of Fresno, as that parcel existed as
of January 1, 2016, and excluding the incorporated City of Sanger.

(d) Land that is east of Alta Irrigation District and east of the
east line of Sections 13 and 24, T13S, R23E, between Alta
Irrigation District and east line and the east line of the Bulletin
118 Kings Subbasin boundary, as described in the report by the
Department of Water Resources titled, “California’s Groundwater:
Bulletin 118,” updated in 2003, as it may be subsequently updated
or revised in accordance with Section 12924 of the Water Code.

302.  

The agency’s initial boundaries shall be established by
the boards of supervisors of the Counties of Fresno and Tulare
after a noticed public hearing. The boundaries shall be depicted
on a map that shall be adopted by the boards of supervisors of
those counties and thereafter recorded in the office of the county
recorder of each county.

303.  

The boards of supervisors of the Counties of Fresno and
Tulare may adjust the boundaries of the agency in the same manner
prescribed for establishment of the initial boundaries if the
boundaries of the basin are revised, including the establishment
of new subbasins.

 

Article 4.  Definitions

 

401.  

Unless otherwise indicated by their context, the definitions
set forth in this article govern the interpretation of this act.

401.1.  

“Actively and primarily engaged in production of
agriculture” means that a person derives at least 75 percent of his
or her annual income from production agriculture.

402.  

“Agency” means the Kings River East Groundwater
Sustainability Agency established by this act.

403.  

“Alta” means the Alta Irrigation District.

404.  

“Aquifer” means a geologic formation or structure that
transmits water in sufficient quantities to supply pumping wells
or springs.

405.  

“Basin” has the same meaning as defined in Section 10721
of the Water Code.

406.  

“Board” means the board of directors of the agency, as
more particularly described in Section 501.

407.  

“Cities” means the Cities of Dinuba, Orange Cove, and
Reedley.

408.  

“Coordination agreement” has the same meaning as
defined in Section 10721 of the Water Code.

409.  

“County” means either the County of Fresno or the County
of Tulare, as the context requires. “Counties” means the County
of Fresno and the County of Tulare.

410.  

“Extraction” means the act of obtaining groundwater by
pumping or other controlled means.

411.  

“Groundwater” has the same meaning as defined in
Section 10721 of the Water Code.

412.  

“Groundwater management activities” means programs,
measures, or actions taken to preserve, protect, and enhance
groundwater resources within the territory of the agency.

413.  

“Kings Subbasin” means the San Joaquin Valley
Groundwater Basin Kings Subbasin.

414.  

“Member agency” means Alta, the counties, the cities,
and the special districts entitled to representation on the agency’s
board of directors as specified in Section 501.

415.  

“Operator” has the same meaning as defined in Section
10721 of the Water Code.

416.  

“Person” includes any state or local governmental agency,
private corporation, firm, partnership, limited liability company,
individual, group of individuals, or, to the extent authorized by
law, any federal agency.

417.  

“Plan” means a groundwater sustainability plan prepared
by the agency pursuant to this act.

418.  

“Supplemental water” means surface water or groundwater
imported from outside the watershed or watersheds of the basin
or aquifer and floodwaters that are conserved and saved within the
watershed or watersheds that would otherwise have been lost or
would not have reached the basin or aquifer.

 

Article 5.  General Provisions

 

501.  

(a) The agency shall be governed by a board of directors
that shall consist of seven members, as follows:

(1) One member shall be chosen by Alta.

(2) One member shall be chosen by the County of Fresno.

(3) One member shall be chosen by the County of Tulare.

(4) One member shall be chosen by the cities. This member
shall be chosen from the members of the city councils of the cities
whose territory, at least in part, overlies the territory of the agency.
This member shall be chosen at a public meeting where each city
is represented by its mayor.

(5) One member shall be chosen from the members of the
governing boards of the following special districts that are not
governed by the board of supervisors of either county, are engaged
in water activities, and whose territory, at least in part, overlies
the territory of the agency:

(A) Hills Valley Irrigation District.

(B) Orange Cove Irrigation District.

(C) Tri-Valley Water District.

(D) Kings River Water District.

(6) One member shall be chosen from the members of the
governing boards of special districts that provide drinking water
within the territory of the agency.

(7) One member shall be chosen by the other six board members
to represent agricultural interests within the territory of the agency.
This member shall reside and be actively and primarily engaged
in production of agriculture within the territory of the agency. This
member shall be selected from a list of at least five nominations
submitted from the Fresno County Farm Bureau and the Tulare
County Farm Bureau, acting jointly, but the five nominees need
not be members of either organization.

(b) The board members described in paragraphs (1), (2), and
(3) of subdivision (a) shall be chosen by their respective governing
boards from their board members whose districts or divisions
overlie, at least in part, the territory of the agency.

(c) The board members described in paragraphs (5) and (6) of
subdivision (a) shall be chosen at a public meeting where each
special district is represented by the president or chair of its
governing board.

(d) There shall be an alternate for each board member, chosen
in the same manner and by the same entity as the board member.
The alternate member shall act in place of the board member he
or she is an alternate for in case of that board member’s absence
or inability to act.

502.  

(a) The members described in paragraphs (1) to (6),
inclusive, of subdivision (a) of Section 501 shall serve for a
four-year term of office, or until the member is no longer an
eligible official of the member agency. These members may serve
for more than one term of office.

(b) The member described in paragraph (7) of subdivision (a)
of Section 501 shall serve a four-year term of office.

503.  

(a) The board may adopt an ordinance to provide
compensation to members of the board in an amount not to exceed
one hundred dollars ($100) per day for each day’s attendance at
meetings of the board or for each day’s service rendered as a
member of the board by request of the board. For purposes of this
section, the determination of whether a board member’s activities
on any specific day are compensable shall be made pursuant to
Article 2.3 (commencing with Section 53232) of Chapter 2 of Part
1 of Division 2 of Title 5 of the Government Code.

(b) Reimbursement for expenses of members of the board is
subject to Sections 53232.2 and 53232.3 of the Government Code.

(c) The board may adopt an ordinance to increase the
compensation received by members of the board above the amount
of one hundred dollars ($100) per day. The increase shall not
exceed an amount equal to 5 percent, for each calendar year
following the operative date of the last adjustment, of the
compensation that is received when the ordinance is adopted.

(d) A board member shall not be compensated for more than a
total of 10 days in any calendar month.

504.  

(a) The board may adopt ordinances for the purpose of
regulating, conserving, managing, and controlling the use and
extraction of groundwater within the territory of the agency.

(b) An ordinance adopted by the board shall become effective
30 days from the date of its passage.

(c) All ordinances shall be adopted at noticed, public hearings
by a majority vote of the board. No ordinance shall be adopted by
the board except at a public hearing. Notice of the hearing shall
be published in a newspaper of general circulation pursuant to
Section 6066 of the Government Code.

(d) The board shall provide notice of the adoption of all
ordinances.

505.  

No provision of this act shall be construed as denying to
the counties, any city, Alta, or any other member agency any rights
or powers that they already have or that they may be granted.

506.  

The agency may contract with either county or Alta for
staff and other services. The agency may hire contractors and
consultants as it considers appropriate.

507.  

The agency shall enter into a coordination agreement with
other local agencies for purposes of coordinating the agency’s plan
with other agencies or groundwater sustainability plans within the
Kings Subbasin as required by the Sustainable Groundwater
Management Act (Part 2.74 (commencing with Section 10720) of
Division 6 of the Water Code).

508.  

The agency may exclude from any of the requirements of
this act, or the operation of any ordinance, any operator who
annually extracts less than a minimum amount of groundwater as
specified by an ordinance adopted by the board.

 

Article 6.  Studies and Investigations

 

601.  

The agency may collect data and conduct technical and
other investigations of all kinds in order to carry out the provisions
of this act. All hydrological investigations and studies carried out
by or on behalf of the agency shall be constructed by or under the
supervision of licensed engineers or other persons qualified in
groundwater geology or hydrology.

602.  

The agency may recommend and encourage water
recycling and other water development projects, where those
projects will enhance and contribute to the responsible management
of groundwater resources, as part of its annual plan for
implementation of groundwater management objectives.

 

Article 7.  Sustainable Groundwater Management Powers

 

701.  

The agency shall develop and implement a groundwater
sustainability plan pursuant to Chapter 6 (commencing with Section
10727) of Part 2.74 of Division 6 of the Water Code to achieve
sustainable groundwater management within the territory of the
agency.

702.  

The agency shall elect to be a groundwater sustainability
agency pursuant to Chapter 4 (commencing with Section 10723)
of Part 2.74 of Division 6 of the Water Code for that portion of
the Kings Subbasin that lies within the boundaries of the agency.

703.  

The agency may exercise any of the powers described in
Chapter 5 (commencing with Section 10725) of Part 2.74 of
Division 6 of the Water Code and the enforcement powers
described in Chapter 9 (commencing with Section 10732) of Part
2.74 of Division 6 of the Water Code.

704.  

The availability of supplemental water to any operator
shall not subject that operator to regulations that are more
restrictive than those imposed on other operators.

 

Article 8.  Fee Authority

 

801.  

Pursuant to Chapter 8 (commencing with Section 10730)
of Part 2.74 of Division 6 of the Water Code, the agency may
impose fees, including, but not limited to, permit fees and fees on
groundwater extraction or other regulated activity, to fund the costs
of a groundwater sustainability program, that include, but are not
limited to, the preparation, adoption, and amendment of a
groundwater sustainability plan, investigations, inspections,
compliance assistance, enforcement, and program administration,
including a prudent reserve.

SEC. 2.  

Section 10723 of the Water Code is amended to read:

10723.  

(a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater
basin may decide to become a groundwater sustainability agency
for that basin.

(b) Before deciding to become a groundwater sustainability
agency, and after publication of notice pursuant to Section 6066
of the Government Code, the local agency or agencies shall hold
a public hearing in the county or counties overlying the basin.

(c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed
the exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:

(A) Alameda County Flood Control and Water Conservation
District, Zone 7.

(B) Alameda County Water District.

(C) Desert Water Agency.

(D) Fox Canyon Groundwater Management Agency.

(E) Honey Lake Valley Groundwater Management District.

(F) Kings River East Groundwater Sustainability Agency.

(G) Long Valley Groundwater Management District.

(H) Mendocino City Community Services District.

(I) Mono County Tri-Valley Groundwater Management District.

(J) Monterey Peninsula Water Management District.

(K) Ojai Groundwater Management Agency.

(L) Orange County Water District.

(M) Pajaro Valley Water Management Agency.

(N) Santa Clara Valley Water District.

(O) Sierra Valley Groundwater Management District.

(P) Willow Creek Groundwater Management Agency.

(2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department’s Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local
agency or combination of local agencies operating within the
statutory boundaries of the agency that has opted out may notify
the department pursuant to Section 10723.8 of its decision to be
the groundwater sustainability agency.

(3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this
section. A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise
any authorities granted in this part in a manner inconsistent with
any prohibitions or limitations in its principal act unless the
governing board of the local agency makes a finding that the
agency is unable to sustainably manage the basin without the
prohibited authority.

(d) The decision of a local agency or combination of agencies
to become a groundwater sustainability agency shall take effect
as provided in Section 10723.8.

begin insert

begin insert SEC. 2.5. end insert   

end insert

begin insert Section 10723 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10723.  

(a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater
basin may decide to become a groundwater sustainability agency
for that basin.

(b) Before deciding to become a groundwater sustainability
agency, and after publication of notice pursuant to Section 6066
of the Government Code, the local agency or agencies shall hold
a public hearing in the county or counties overlying the basin.

(c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed
the exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:

(A) Alameda County Flood Control and Water Conservation
District, Zone 7.

(B) Alameda County Water District.

(C) Desert Water Agency.

(D) Fox Canyon Groundwater Management Agency.

(E) Honey Lake Valley Groundwater Management District.

begin insert

(F) Kings River East Groundwater Sustainability Agency.

end insert begin delete

(F)

end delete

begin insert (G) end insert  Long Valley Groundwater Management District.

begin delete

(G)

end delete

begin insert (H) end insert  Mendocino City Community Services District.

begin delete

(H)

end delete

begin insert (I) end insert  Mono County Tri-Valley Groundwater Management District.

begin delete

(I)

end delete

begin insert (J) end insert  Monterey Peninsula Water Management District.

begin delete

(J)

end delete

begin insert (K) end insert  Ojai Groundwater Management Agency.

begin delete

(K)

end delete

begin insert (L) end insert  Orange County Water District.

begin delete

(L)

end delete

begin insert (M) end insert  Pajaro Valley Water Management Agency.

begin delete

(M)

end delete

begin insert (N) end insert  Santa Clara Valley Water District.

begin delete

(N)

end delete

begin insert (O) end insert  Sierra Valley Groundwater Management District.

begin insert

(P) West Kings Groundwater Sustainability Agency.

end insert begin delete

(O)

end delete

begin insert (Q) end insert  Willow Creek Groundwater Management Agency.

(2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department’s Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local
agency or combination of local agencies operating within the
statutory boundaries of the agency that has opted out may notify
the department pursuant to Section 10723.8 of its decision to be
the groundwater sustainability agency.

(3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this
section. A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise
any authorities granted in this part in a manner inconsistent with
any prohibitions or limitations in its principal act unless the
governing board of the local agency makes a finding that the
agency is unable to sustainably manage the basin without the
prohibited authority.

(d) The decision of a local agency or combination of agencies
to become a groundwater sustainability agency shall take effect
as provided in Section 10723.8.

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

Section 2.5 of this bill incorporates amendments to
Section 10723 of the Water Code proposed by both this bill and
Senate Bill 564. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2017, (2)
each bill amends Section 10723 of the Water Code, and (3) this
bill is enacted after Senate Bill 564, in which case Section 2 of this
bill shall not become operative.

end insert

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.