Amended in Assembly August 18, 2016

Amended in Assembly August 4, 2016

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 BillNo. 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 wouldbegin delete requireend deletebegin insert establishend insert the agency’s initialbegin delete boundaries to be established by the boards of supervisors of the Counties of Fresno and Tulare after a noticed public hearing.end deletebegin insert boundaries.end insert The bill would authorize the boundaries of the agency to be adjusted, as specified. 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.

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.

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:

P3    1

SECTION 1.  

This act shall be known and may be cited as the 2Kings River East Groundwater Sustainability Agency Act.
3

4 Kings River East Groundwater Sustainability Agency Act
5


6

5 

6Article 1.  Findings and Declarations
7

 

8

101.  

The Legislature hereby finds and declares that the
9preservation of the groundwater resources within the territory of
10the agency is in the public interest and that the creation of the
11agency pursuant to this act is for the common benefit.

12

102.  

The Legislature further finds and declares that the
13groundwater management activities of the agency benefit all
14operators of groundwater extraction facilities within the territory
15of the agency.

16

103.  

The Legislature further finds and declares that
17circumstances in the territory of the agency to be formed hereby,
18which may not exist in other locations, justify the formation of the
19agency and the grant of powers contained in this act.


20

21

20 

21Article 2.  Creation and Purposes
22

 

23

201.  

(a) A groundwater management agency is hereby created
24in the Counties of Fresno and Tulare to be known as the Kings
25River East Groundwater Sustainability Agency.

26(b) The agency shall be governed by a board as specified in
27Section 501 and shall have the boundaries specified in Section
28301. The agency shall only exercise the powers granted by this act
29and the Sustainable Groundwater Management Act (Part 2.74
30(commencing with Section 10720) of Division 6 of the Water
31Code) for purposes of groundwater management within the
32boundaries of the agency, together with any other powers as are
33reasonably implied, necessary, and proper to carry out the
34objectives and purposes of the agency to implement the Sustainable
35Groundwater Management Act. The agency shall abide by the
36rules and regulations promulgated by the Department of Water
37Resources and the State Water Resources Control Board to
38implement the Sustainable Groundwater Management Act.


P4    1

 

P4    1Article 3.  Boundaries
2

 

3

301.  

For purposes of this act, the initial boundaries of the
4agency shall include the following:

5(a) All land located within the exterior perimeter boundaries of
6Alta Irrigation District that is within the Counties of Fresno and
7Tulare.

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

9(c) All land located in Kings River Water District plus parcel
10350-150-16 within the County of Fresno, as that parcel existed as
11of January 1, 2016, and excluding the incorporated City of Sanger.

12(d) Land that is east of Alta Irrigation District and east of the
13east line of Sections 13 and 24, T13S, R23E, between Alta
14Irrigation District and east line and the east line of the Bulletin
15118 Kings Subbasin boundary, as described in the report by the
16Department of Water Resources titled, “California’s Groundwater:
17Bulletin 118,” updated in 2003, as it may be subsequently updated
18or revised in accordance with Section 12924 of the Water Code.

begin delete
19

302.  

The agency’s initial boundaries shall be established by
20the boards of supervisors of the Counties of Fresno and Tulare
21after a noticed public hearing. The boundaries shall be depicted
22on a map that shall be adopted by the boards of supervisors of
23those counties and thereafter recorded in the office of the county
24recorder of each county.

end delete
25

begin delete303.end delete
26
begin insert 302.end insert  

(a) Thebegin delete boards of supervisors of the Counties of Fresno
27and Tulare may adjust the boundaries of the agency in the same
28manner prescribed for establishment of the initial boundaries if
29the boundaries of the basin are revised, including the establishment
30of new subbasins.end delete
begin insert initial boundaries may be changed upon a
31petition to the boards of supervisors of the Counties of Fresno and
32Tulare after a noticed public hearing in the county in which the
33change is proposed. The boundaries shall be depicted on a map
34that shall be maintained by the boards of supervisors of those
35counties and thereafter recorded in the office of the county recorder
36of each county.end insert

37(b) The boundaries of the agency shall not be adjusted to include
38an area of the basin within the management area of another
39groundwater sustainability agency unless the agency has entered
40into a memorandum of agreement or other legal agreement with
P5    1that groundwater sustainability agency that permits the area to be
2included.

3(c) The boundaries of the agency shall not be adjusted to include
4any part of a proposed management area, as defined in a notice of
5intent submitted pursuant Section 10723.8 of the Water Code,
6unless the agency has entered into a memorandum of agreement
7or other legal agreement with all agencies listed in the notice of
8intent that permits the area to be included.


9

10

9 

10Article 4.  Definitions
11

 

12

401.  

Unless otherwise indicated by their context, the definitions
13set forth in this article govern the interpretation of this act.

14

401.1.  

“Actively and primarily engaged in production of
15agriculture” means that a person derives at least 75 percent of his
16or her annual income from production agriculture.

17

402.  

“Agency” means the Kings River East Groundwater
18Sustainability Agency established by this act.

19

403.  

“Alta” means the Alta Irrigation District.

20

404.  

“Aquifer” means a geologic formation or structure that
21transmits water in sufficient quantities to supply pumping wells
22or springs.

23

405.  

“Basin” has the same meaning as defined in Section 10721
24of the Water Code.

25

406.  

“Board” means the board of directors of the agency, as
26more particularly described in Section 501.

27

407.  

“Cities” means the Cities of Dinuba, Orange Cove, and
28Reedley.

29

408.  

“Coordination agreement” has the same meaning as
30defined in Section 10721 of the Water Code.

31

409.  

“County” means either the County of Fresno or the County
32of Tulare, as the context requires. “Counties” means the County
33of Fresno and the County of Tulare.

34

410.  

“Extraction” means the act of obtaining groundwater by
35pumping or other controlled means.

36

411.  

“Groundwater” has the same meaning as defined in
37Section 10721 of the Water Code.

38

412.  

“Groundwater management activities” means programs,
39measures, or actions taken to preserve, protect, and enhance
40groundwater resources within the territory of the agency.

P6    1

413.  

“Kings Subbasin” means the San Joaquin Valley
2Groundwater Basin Kings Subbasin.

3

414.  

“Member agency” means Alta, the counties, the cities,
4and the special districts entitled to representation on the agency’s
5board of directors as specified in Section 501.

6

415.  

“Operator” has the same meaning as defined in Section
710721 of the Water Code.

8

416.  

“Person” has the same meaning as defined in Section
910735 of the Water Code.

10

417.  

“Plan” means a groundwater sustainability plan prepared
11by the agency pursuant to this act.

12

418.  

“Supplemental water” means surface water or groundwater
13imported from outside the watershed or watersheds of the basin
14or aquifer and floodwaters that are conserved and saved within the
15watershed or watersheds that would otherwise have been lost or
16would not have reached the basin or aquifer.


17

18

17 

18Article 5.  General Provisions
19

 

20

501.  

(a) The agency shall be governed by a board of directors
21that shall consist of seven members, as follows:

22(1) One member shall be chosen by Alta.

23(2) One member shall be chosen by the County of Fresno.

24(3) One member shall be chosen by the County of Tulare.

25(4) One member shall be chosen by the cities. This member
26shall be chosen from the members of the city councils of the cities
27whose territory, at least in part, overlies the territory of the agency.
28This member shall be chosen at a public meeting where each city
29is represented by its mayor.

30(5) One member shall be chosen from the members of the
31governing boards of the following special districts that are not
32governed by the board of supervisors of either county, are engaged
33in water activities, and whose territory, at least in part, overlies
34the territory of the agency:

35(A) Hills Valley Irrigation District.

36(B) Orange Cove Irrigation District.

37(C) Tri-Valley Water District.

38(D) Kings River Water District.

P7    1(6) One member shall be chosen from the members of the
2governing boards of special districts that provide drinking water
3within the territory of the agency.

4(7) One member shall be chosen by the other six board members
5to represent agricultural interests within the territory of the agency.
6This member shall reside and be actively and primarily engaged
7in production of agriculture within the territory of the agency. This
8member shall be selected from a list of at least five nominations
9submitted from the Fresno County Farm Bureau and the Tulare
10County Farm Bureau, acting jointly, but the five nominees need
11not be members of either organization.

12(b) The board members described in paragraphs (1), (2), and
13(3) of subdivision (a) shall be chosen by their respective governing
14boards from their board members whose districts or divisions
15overlie, at least in part, the territory of the agency.

16(c) The board members described in paragraphs (5) and (6) of
17subdivision (a) shall be chosen at a public meeting where each
18special district is represented by the president or chair of its
19governing board.

20(d) There shall be an alternate for each board member, chosen
21in the same manner and by the same entity as the board member.
22The alternate member shall act in place of the board member he
23or she is an alternate for in case of that board member’s absence
24or inability to act.

begin insert

25
(e) Members and their alternates shall be chosen on or before
26January 31, 2017.

end insert
27

502.  

(a) The members described in paragraphs (1) to (6),
28inclusive, of subdivision (a) of Section 501 shall serve for a
29four-year term of office, or until the member is no longer an
30eligible official of the member agency. These members may serve
31for more than one term of office.

32(b) The member described in paragraph (7) of subdivision (a)
33of Section 501 shall serve a four-year term of office.

34

503.  

(a) The board may adopt an ordinance to provide
35compensation to members of the board in an amount not to exceed
36one hundred dollars ($100) per day for each day’s attendance at
37meetings of the board or for each day’s service rendered as a
38member of the board by request of the board. For purposes of this
39section, the determination of whether a board member’s activities
40on any specific day are compensable shall be made pursuant to
P8    1Article 2.3 (commencing with Section 53232) of Chapter 2 of Part
21 of Division 2 of Title 5 of the Government Code.

3(b) Reimbursement for expenses of members of the board is
4subject to Sections 53232.2 and 53232.3 of the Government Code.

5(c) The board may adopt an ordinance to increase the
6compensation received by members of the board above the amount
7of one hundred dollars ($100) per day. The increase shall not
8exceed an amount equal to 5 percent, for each calendar year
9following the operative date of the last adjustment, of the
10compensation that is received when the ordinance is adopted.

11(d) A board member shall not be compensated for more than a
12total of 10 days in any calendar month.

13

504.  

(a) The board may adopt ordinances for the purpose of
14regulating, conserving, managing, and controlling the use and
15extraction of groundwater within the territory of the agency.

16(b) An ordinance adopted by the board shall become effective
1730 days from the date of its passage.

18(c) All ordinances shall be adopted at noticed, public hearings
19by a majority vote of the board. No ordinance shall be adopted by
20the board except at a public hearing. Notice of the hearing shall
21be published in a newspaper of general circulation pursuant to
22Section 6066 of the Government Code.

23(d) The board shall provide notice of the adoption of all
24ordinances.

25

505.  

No provision of this act shall be construed as denying to
26the counties, any city, Alta, or any other member agency any rights
27or powers that they already have or that they may be granted.

28

506.  

The agency may contract with either county or Alta for
29staff and other services. The agency may hire contractors and
30consultants as it considers appropriate.

31

507.  

The agency shall enter into a coordination agreement with
32other local agencies for purposes of coordinating the agency’s plan
33with other agencies or groundwater sustainability plans within the
34Kings Subbasin as required by the Sustainable Groundwater
35Management Act (Part 2.74 (commencing with Section 10720) of
36Division 6 of the Water Code).

37

508.  

The agency may exclude from any of the requirements of
38this act, or the operation of any ordinance, any operator who
39annually extracts less than a minimum amount of groundwater as
40specified by an ordinance adopted by the board.


P4    1

 

P4    1Article 6.  Studies and Investigations
2

 

3

601.  

The agency may collect data and conduct technical and
4other investigations of all kinds in order to carry out the provisions
5of this act. All hydrological investigations and studies carried out
6by or on behalf of the agency shall be constructed by or under the
7supervision of licensed engineers or other persons qualified in
8groundwater geology or hydrology.

9

602.  

The agency may recommend and encourage water
10recycling and other water development projects, where those
11projects will enhance and contribute to the responsible management
12of groundwater resources, as part of its annual plan for
13implementation of groundwater management objectives.


14

15

14 

15Article 7.  Sustainable Groundwater Management Powers
16

 

17

701.  

The agency shall develop and implement a groundwater
18sustainability plan pursuant to Chapter 6 (commencing with Section
1910727) of Part 2.74 of Division 6 of the Water Code to achieve
20sustainable groundwater management within the territory of the
21agency.

22

702.  

The agency shall elect to be a groundwater sustainability
23agency pursuant to Chapter 4 (commencing with Section 10723)
24of Part 2.74 of Division 6 of the Water Code for that portion of
25the Kings Subbasin that lies within the boundaries of the agency.

26

703.  

The agency may exercise any of the powers described in
27Chapter 5 (commencing with Section 10725) of Part 2.74 of
28Division 6 of the Water Code and the enforcement powers
29described in Chapter 9 (commencing with Section 10732) of Part
302.74 of Division 6 of the Water Code.

31

704.  

The availability of supplemental water to any operator
32shall not subject that operator to regulations by the agency that are
33more restrictive than those imposed on other operators.


34

35

34 

35Article 8.  Fee Authority
36

 

37

801.  

Pursuant to Chapter 8 (commencing with Section 10730)
38of Part 2.74 of Division 6 of the Water Code, the agency may
39impose fees, including, but not limited to, permit fees and fees on
40groundwater extraction or other regulated activity, to fund the costs
P10   1of a groundwater sustainability program, that include, but are not
2limited to, the preparation, adoption, and amendment of a
3groundwater sustainability plan, investigations, inspections,
4compliance assistance, enforcement, and program administration,
5including a prudent reserve.


6

7

6 

7Article 9.  Miscellaneous
8

 

9

901.  

In the event of any conflict between the Kings River East
10Groundwater Sustainability Agency Act and the provisions of the
11Sustainable Groundwater Management Act (Part 2.74 (commencing
12with Section 10720) of Division 6 of the Water Code), the
13provisions of the Sustainable Groundwater Management Act shall
14prevail.

15

SEC. 2.  

Section 10723 of the Water Code is amended to read:

16

10723.  

(a) Except as provided in subdivision (c), any local
17agency or combination of local agencies overlying a groundwater
18basin may decide to become a groundwater sustainability agency
19for that basin.

20(b) Before deciding to become a groundwater sustainability
21agency, and after publication of notice pursuant to Section 6066
22of the Government Code, the local agency or agencies shall hold
23a public hearing in the county or counties overlying the basin.

24(c) (1) Except as provided in paragraph (2), the following
25agencies created by statute to manage groundwater shall be deemed
26the exclusive local agencies within their respective statutory
27boundaries with powers to comply with this part:

28(A) Alameda County Flood Control and Water Conservation
29District, Zone 7.

30(B) Alameda County Water District.

31(C) Desert Water Agency.

32(D) Fox Canyon Groundwater Management Agency.

33(E) Honey Lake Valley Groundwater Management District.

34(F) Kings River East Groundwater Sustainability Agency.

35(G) Long Valley Groundwater Management District.

36(H) Mendocino City Community Services District.

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

38(J) Monterey Peninsula Water Management District.

39(K) Ojai Groundwater Management Agency.

40(L) Orange County Water District.

P11   1(M) Pajaro Valley Water Management Agency.

2(N) Santa Clara Valley Water District.

3(O) Sierra Valley Groundwater Management District.

4(P) Willow Creek Groundwater Management Agency.

5(2) An agency identified in this subdivision may opt out of being
6the exclusive groundwater management agency within its statutory
7boundaries by sending a notice to the department, which shall be
8posted on the department’s Internet Web site within 15 days of
9receipt. If an agency identified in paragraph (1) opts out of being
10the exclusive groundwater management agency, any other local
11agency or combination of local agencies operating within the
12statutory boundaries of the agency that has opted out may notify
13the department pursuant to Section 10723.8 of its decision to be
14the groundwater sustainability agency.

15(3) A local agency listed in paragraph (1) may comply with this
16part by meeting the requirements of Section 10733.6 or opting to
17become a groundwater sustainability agency pursuant to this
18section. A local agency with authority to implement a basin-specific
19management plan pursuant to its principal act shall not exercise
20any authorities granted in this part in a manner inconsistent with
21any prohibitions or limitations in its principal act unless the
22governing board of the local agency makes a finding that the
23agency is unable to sustainably manage the basin without the
24prohibited authority.

25(d) The decision of a local agency or combination of agencies
26to become a groundwater sustainability agency shall take effect
27as provided in Section 10723.8.

28

SEC. 2.5.  

Section 10723 of the Water Code is amended to read:

29

10723.  

(a) Except as provided in subdivision (c), any local
30agency or combination of local agencies overlying a groundwater
31basin may decide to become a groundwater sustainability agency
32for that basin.

33(b) Before deciding to become a groundwater sustainability
34agency, and after publication of notice pursuant to Section 6066
35of the Government Code, the local agency or agencies shall hold
36a public hearing in the county or counties overlying the basin.

37(c) (1) Except as provided in paragraph (2), the following
38agencies created by statute to manage groundwater shall be deemed
39the exclusive local agencies within their respective statutory
40boundaries with powers to comply with this part:

P12   1(A) Alameda County Flood Control and Water Conservation
2District, Zone 7.

3(B) Alameda County Water District.

4(C) Desert Water Agency.

5(D) Fox Canyon Groundwater Management Agency.

6(E) Honey Lake Valley Groundwater Management District.

7(F) Kings River East Groundwater Sustainability Agency.

8(G) Long Valley Groundwater Management District.

9(H) Mendocino City Community Services District.

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

11(J) Monterey Peninsula Water Management District.

12(K) North Fork Kings Groundwater Sustainability Agency.

13(L) Ojai Groundwater Management Agency.

14(M) Orange County Water District.

15(N) Pajaro Valley Water Management Agency.

16(O) Santa Clara Valley Water District.

17(P) Sierra Valley Groundwater Management District.

begin delete

18(Q) West Kings Groundwater Sustainability Agency.

end delete
begin delete

19(R)

end delete

20begin insert(Q)end insert Willow Creek Groundwater Management Agency.

21(2) An agency identified in this subdivision may opt out of being
22the exclusive groundwater management agency within its statutory
23boundaries by sending a notice to the department, which shall be
24posted on the department’s Internet Web site within 15 days of
25receipt. If an agency identified in paragraph (1) opts out of being
26the exclusive groundwater management agency, any other local
27agency or combination of local agencies operating within the
28statutory boundaries of the agency that has opted out may notify
29the department pursuant to Section 10723.8 of its decision to be
30the groundwater sustainability agency.

31(3) A local agency listed in paragraph (1) may comply with this
32part by meeting the requirements of Section 10733.6 or opting to
33become a groundwater sustainability agency pursuant to this
34section. A local agency with authority to implement a basin-specific
35management plan pursuant to its principal act shall not exercise
36any authorities granted in this part in a manner inconsistent with
37any prohibitions or limitations in its principal act unless the
38governing board of the local agency makes a finding that the
39agency is unable to sustainably manage the basin without the
40prohibited authority.

P13   1(d) The decision of a local agency or combination of agencies
2to become a groundwater sustainability agency shall take effect
3as provided in Section 10723.8.

4

SEC. 3.  

Section 2.5 of this bill incorporates amendments to
5Section 10723 of the Water Code proposed by both this bill and
6Senate Bill 564. It shall only become operative if (1) both bills are
7enacted and become effective on or before January 1, 2017, (2)
8each bill amends Section 10723 of the Water Code, and (3) this
9bill is enacted after Senate Bill 564, in which case Section 2 of
10this bill shall not become operative.

11

SEC. 4.  

No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13a local agency or school district has the authority to levy service
14charges, fees, or assessments sufficient to pay for the program or
15level of service mandated by this act, within the meaning of Section
1617556 of the Government Code.



O

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