Amended in Assembly August 17, 2015

Amended in Senate May 5, 2015

Amended in Senate April 6, 2015

Senate Bill No. 226

Introduced by Senator Pavley

February 13, 2015

An act to amend Sections begin delete 10721 end delete begin insert 10720.1, 10720.5, 10720.8, 10721, 10722.2, 10735, end insert and 10735.8 of, begin insert to add Section 105.5 to, end insert and to add Chapter 12 (commencing with Section 10737) to Part 2.74 of Division 6 of, the Water Code, relating to begin delete groundwater. end delete begin insert water. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 226, as amended, Pavley. Sustainable Groundwater Management Act: groundwater begin delete rights. end delete begin insert adjudication. end insert

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. Existing law specifies the jurisdiction of the courts. Under existing law, courts may adjudicate rights to produce groundwater and exercise other powers relating to the supervision of a groundwater basin. Existing law authorizes a court to order a reference to the State Water Resources Control Board, as referee, of any and all issues involved in the suit.

end insert begin insert

This bill would authorize the state to intervene as a matter of right in any suit brought in any court for determination of rights to water.

end insert

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.

begin delete

Existing law specifies the jurisdiction of the courts. Under existing law, courts may adjudicate rights to produce groundwater and exercise other powers relating to the supervision of a groundwater basin.

end delete

This bill would begin delete find and declare that it establishes a timely and comprehensive method for determining rights to groundwater. end delete begin insert establish special procedures for certain adjudication actions determining rights to groundwater in furtherance of the objectives of the act. end insert The bill would provide that a court shall use the begin insert procedures in the end insert Code of Civil Procedure for begin delete determining rights to groundwater, end delete begin insert these adjudication actions, end insert except as provided by the special procedures established in the bill. begin delete This bill would require the process for determining rights to groundwater to be available to any court of competent jurisdiction. The bill would provide that it applies to Indian tribes and the federal government. The bill would require the boundaries of a basin to be as identified in Bulletin 118, unless other basin boundaries are established, as specified. The bill would authorize the Department of Water Resources and the Department of Fish and Wildlife to intervene in an action or proceeding if they claim an interest relating to the action or proceeding, as provided. end delete begin insert 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 the boundaries of the area subject to an adjudication action to be consistent with the boundaries of a basin, with specified exceptions. end insert The bill would specify service and notice begin delete procedures. end delete begin insert procedures and 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 The bill would require a party to provide specified initial begin delete disclosures to the other parties, including, among other disclosures, information relating to expert witnesses. end delete begin insert disclosures, as prescribed, and under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would require the court to have the authority and duty to impose a physical solution on the parties in an adjudication action where necessary and would authorize the court to adopt a stipulated judgment if the court finds that the judgment meets certain criteria. This bill would require the court to have continuing jurisdiction to modify or amend a final judgment in an adjudication action, as specified. 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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 105.5 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 105.5. end insert   

Notwithstanding any other law, the state may intervene
as a matter of right in any suit brought in any court for
determination of rights to water.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 10720.1 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10720.1.  

In enacting this part, it is the intent of the Legislature
to do all of the following:

(a) To provide for the sustainable management of groundwater
basins.

(b) To enhance local management of groundwater consistent
with rights to use or store groundwater and Section 2 of Article X
of the California Constitution. It is the intent of the Legislature to
preserve the security of water rights in the state to the greatest
extent possible consistent with the sustainable management of
groundwater.

(c) To establish minimum standards for sustainable groundwater
management.

(d) To provide local groundwater agencies with the authority
and the technical and financial assistance necessary to sustainably
manage groundwater.

(e) To avoid or minimize subsidence.

(f) To improve data collection and understanding about
groundwater.

(g) To increase groundwater storage and remove impediments
to recharge.

(h) To manage groundwater basins through the actions of local
governmental agencies to the greatest extent feasible, while
minimizing state intervention to only when necessary to ensure
that local agencies manage groundwater in a sustainable manner.

begin insert

(i) To provide a more efficient and cost-effective groundwater
adjudication process that protects water rights, ensures due
process, prevents unnecessary delay, and furthers the objectives
of this part.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 10720.5 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10720.5.  

(a) Groundwater management pursuant to this part
shall be consistent with Section 2 of Article X of the California
Constitution. Nothing in this part modifies rights or priorities to
use or store groundwater consistent with Section 2 of Article X of
the California Constitution, except that in basins designated
medium- or high-priority basins by the department, no extraction
of groundwater between January 1, 2015, and the date of adoption
of a groundwater sustainability plan pursuant to this begin delete part, end delete begin insert part or
the approval by the department of an alternative submitted under
Section 10733.6, end insert whichever is sooner, may be used as evidence
of, or to establish or defend against, any claim of prescription.

(b) Nothing in this part, or in any groundwater management
plan adopted pursuant to this part, determines or alters surface
water rights or groundwater rights under common law or any
provision of law that determines or grants surface water rights.

begin insert

(c) Water rights may be determined in an adjudication action
pursuant to Chapter 12 (commencing with Section 10737).

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 10720.8 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10720.8.  

(a) Except as provided in begin delete subdivision (e), end delete begin insert subdivisions
(e) and (g), end insert this part does not apply to the following adjudicated
areas or a local agency that conforms to the requirements of an
adjudication of water rights for one of the following adjudicated
areas:

(1) Beaumont Basin.

(2) Brite Basin.

(3) Central Basin.

(4) Chino Basin.

(5) Cucamonga Basin.

(6) Cummings Basin.

(7) Goleta Basin.

(8) Lytle Basin.

(9) Main San Gabriel Basin.

(10) Mojave Basin Area.

(11) Puente Basin.

(12) Raymond Basin.

(13) Rialto-Colton Basin.

(14) Riverside Basin.

(15) San Bernardino Basin Area.

(16) San Jacinto Basin.

(17) Santa Margarita River Watershed.

(18) Santa Maria Valley Basin.

(19) Santa Paula Basin.

(20) Scott River Stream System.

(21) Seaside Basin.

(22) Six Basins.

(23) Tehachapi Basin.

(24) Upper Los Angeles River Area.

(25) Warren Valley Basin.

(26) West Coast Basin.

(b) The Antelope Valley basin at issue in the Antelope Valley
Groundwater Cases (Judicial Council Coordination Proceeding
Number 4408) shall be treated as an adjudicated basin pursuant to
this section if the superior court issues a final judgment, order, or
decree.

(c) Any groundwater basin or portion of a groundwater basin
in Inyo County managed pursuant to the terms of the stipulated
judgment in City of Los Angeles v. Board of Supervisors of the
County of Inyo, et al. (Inyo County Case No. 12908) shall be
treated as an adjudicated area pursuant to this section.

(d) The Los Osos Groundwater Basin at issue in Los Osos
Community Service District v. Southern California Water Company
[Golden State Water Company] et al. (San Luis Obispo County
Superior Court Case No. CV 040126) shall be treated as an
adjudicated basin pursuant to this section if the superior court
issues a final judgment, order, or decree.

(e) If an adjudication action has determined the rights to extract
groundwater for only a portion of a basin, subdivisions (a), (b),
(c), and (d) apply only within the area for which the adjudication
action has determined those rights.

(f) The watermaster or a local agency within a basin identified
in subdivision (a) shall do all of the following:

(1) By April 1, 2016, submit to the department a copy of a
governing final judgment, or other judicial order or decree, and
any amendments entered before April 1, 2016.

(2) Within 90 days of entry by a court, submit to the department
a copy of any amendment made and entered by the court to the
governing final judgment or other judicial order or decree on or
after April 1, 2016.

(3) By April 1, 2016, and annually thereafter, submit to the
department a report containing the following information to the
extent available for the portion of the basin subject to the
adjudication:

(A) Groundwater elevation data unless otherwise submitted
pursuant to Section 10932.

(B) Annual aggregated data identifying groundwater extraction
for the preceding water year.

(C) Surface water supply used for or available for use for
groundwater recharge or in-lieu use.

(D) Total water use.

(E) Change in groundwater storage.

(F) The annual report submitted to the court.

begin insert

(g) A court with jurisdiction over a proposed expansion of an
adjudicated area described in subdivisions (a) to (d), inclusive,
may order that the proceeding be conducted in accordance with
Chapter 12 (commencing with Section 10737).

end insert

begin delete SECTION 1. end delete
begin insert SEC. 5. end insert   

Section 10721 of the Water Code is amended to read:

10721.  

Unless the context otherwise requires, the following
definitions govern the construction of this part:

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

(b) “Basin” means a groundwater basin or subbasin identified
and defined in Bulletin 118 or as modified pursuant to Chapter 3
(commencing with Section 10722).

(c) “Bulletin 118” means the department’s report entitled
“California’s Groundwater: Bulletin 118” updated in 2003, as it
may be subsequently updated or revised in accordance with Section
12924.

(d) “Coordination agreement” means a legal agreement adopted
between two or more groundwater sustainability agencies that
provides the basis for coordinating multiple agencies or
groundwater sustainability plans within a basin pursuant to this
part.

(e) “De minimis extractor” means a person who extracts, for
domestic purposes, two acre-feet or less per year.

(f) “Expert witness” means a witness qualified pursuant to
Section 720 of the Evidence Code.

(g) “Governing body” means the legislative body of a
groundwater sustainability agency.

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

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

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

(k) “Groundwater sustainability agency” means one or more
local agencies that implement the provisions of this part. For
purposes of imposing fees pursuant to Chapter 8 (commencing
with Section 10730) or taking action to enforce a groundwater
sustainability plan, “groundwater sustainability agency” also means
each local agency comprising the groundwater sustainability
agency if the plan authorizes separate agency action.

(l) “Groundwater sustainability plan” or “plan” means a plan
of a groundwater sustainability agency proposed or adopted
pursuant to this part.

(m) “Groundwater sustainability program” means a coordinated
and ongoing activity undertaken to benefit a basin, pursuant to a
groundwater sustainability plan.

(n) “Local agency” means a local public agency that has water
supply, water management, or land use responsibilities within a
groundwater basin.

(o) “Operator” means a person operating a groundwater
extraction facility. The owner of a groundwater extraction facility
shall be conclusively presumed to be the operator unless a
satisfactory showing is made to the governing body of the
groundwater sustainability agency that the groundwater extraction
facility actually is operated by some other person.

(p) “Owner” means a person owning a groundwater extraction
facility or an interest in a groundwater extraction facility other
than a lien to secure the payment of a debt or other obligation.

(q) “Personal information” has the same meaning as defined in
Section 1798.3 of the Civil Code.

(r) “Planning and implementation horizon” means a 50-year
time period over which a groundwater sustainability agency
determines that plans and measures will be implemented in a basin
to ensure that the basin is operated within its sustainable yield.

(s) “Public water system” has the same meaning as defined in
Section 116275 of the Health and Safety Code.

(t) “Recharge area” means the area that supplies water to an
aquifer in a groundwater basin.

begin insert

(u) “State small water system” has the same meaning as defined
in Section 116275 of the Health and Safety Code.

end insert begin delete

(u)

end delete

begin insert (v) end insert  “Sustainability goal” means the existence and
implementation of one or more groundwater sustainability plans
that achieve sustainable groundwater management by identifying
and causing the implementation of measures targeted to ensure
that the applicable basin is operated within its sustainable yield.

begin delete

(v)

end delete

begin insert (w) end insert  “Sustainable groundwater management” means the
management and use of groundwater in a manner that can be
maintained during the planning and implementation horizon
without causing undesirable results.

begin delete

(w)

end delete

begin insert (x) end insert  “Sustainable yield” means the maximum quantity of water,
calculated over a base period representative of long-term conditions
in the basin and including any temporary surplus, that can be
withdrawn annually from a groundwater supply without causing
an undesirable result.

begin delete

(x)

end delete

begin insert (y) end insert  “Undesirable result” means one or more of the following
effects caused by groundwater conditions occurring throughout
the basin:

(1) Chronic lowering of groundwater levels indicating a
significant and unreasonable depletion of supply if continued over
the planning and implementation horizon. Overdraft during a period
of drought is not sufficient to establish a chronic lowering of
groundwater levels if extractions and recharge are managed as
necessary to ensure that reductions in groundwater levels or storage
during a period of drought are offset by increases in groundwater
levels or storage during other periods.

(2) Significant and unreasonable reduction of groundwater
storage.

(3) Significant and unreasonable seawater intrusion.

(4) Significant and unreasonable degraded water quality,
including the migration of contaminant plumes that impair water
supplies.

(5) Significant and unreasonable land subsidence that
substantially interferes with surface land uses.

(6) Depletions of interconnected surface water that have
significant and unreasonable adverse impacts on beneficial uses
of the surface water.

begin delete

(y)

end delete

begin insert (z) end insert  “Water budget” means an accounting of the total groundwater
and surface water entering and leaving a basin including the
changes in the amount of water stored.

begin delete

(z)

end delete

begin insert (aa) end insert  “Watermaster” means a watermaster appointed by a court
or pursuant to other law.

begin delete

(aa)

end delete

begin insert (ab) end insert  “Water year” means the period from October 1 through
the following September 30, inclusive.

begin delete

(ab)

end delete

begin insert (ac) end insert   “Wellhead protection area” means the surface and
subsurface area surrounding a water well or well field that supplies
a public water system through which contaminants are reasonably
likely to migrate toward the water well or well field.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 10722.2 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10722.2.  

(a) A local agency begin insert or an entity directed by the court
in an adjudication action to file the request end insert may request that the
department revise the boundaries of a basin, including the
establishment of new subbasins. A begin delete local agency’s end delete request shall be
supported by the following information:

(1) Information demonstrating that the proposed adjusted basin
can be the subject of sustainable groundwater management.

(2) Technical information regarding the boundaries of, and
conditions in, the proposed adjusted basin.

(3) Information demonstrating that the entity proposing the
basin boundary adjustment consulted with interested local agencies
and public water systems in the affected basins before filing the
proposal with the department.

(4) Other information the department deems necessary to justify
revision of the basin’s boundary.

(b) By January 1, 2016, the department shall adopt regulations
regarding the information required to comply with subdivision (a),
including the methodology and criteria to be used to evaluate the
proposed revision. The department shall adopt the regulations,
including any amendments thereto, authorized by this section as
emergency regulations in accordance with the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code). The
adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for
the immediate preservation of the public peace, health and safety,
or general welfare. Notwithstanding the Administrative Procedure
Act, emergency regulations adopted by the department pursuant
to this section shall not be subject to review by the Office of
Administrative Law and shall remain in effect until revised by the
department.

(c) Methodology and criteria established pursuant to subdivision
(b) shall address all of the following:

(1) How to assess the likelihood that the proposed basin can be
sustainably managed.

(2) How to assess whether the proposed basin would limit the
sustainable management of adjacent basins.

(3) How to assess whether there is a history of sustainable
management of groundwater levels in the proposed basin.

(d) Prior to adopting begin delete and finalizing the regulations, end delete begin insert the
regulations pursuant to subdivision (b), end insert the department shall
conduct three public meetings to consider public comments. The
department shall publish the draft regulations on its Internet Web
site at least 30 days before the public meetings. One meeting shall
be conducted at a location in northern California, one meeting
shall be conducted at a location in the central valley of California,
and one meeting shall be conducted at a location in southern
California.

(e) The department shall provide a copy of its draft revision of
a basin’s boundaries to the California Water Commission. The
California Water Commission shall hear and comment on the draft
revision within 60 days after the department provides the draft
revision to the commission.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 10735 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

10735.  

As used in this chapter begin insert and Chapter 12 (commencing
with Section 10737) end insert , the following terms have the following
meanings:

(a) “Condition of long-term overdraft” means the condition of
a groundwater basin where the average annual amount of water
extracted for a long-term period, generally 10 years or more,
exceeds the long-term average annual supply of water to the basin,
plus any temporary surplus. Overdraft during a period of drought
is not sufficient to establish a condition of long-term overdraft if
extractions and recharge are managed as necessary to ensure that
reductions in groundwater levels or storage during a period of
drought are offset by increases in groundwater levels or storage
during other periods.

(b) “Person” means any person, firm, association, organization,
partnership, business, trust, corporation, limited liability company,
or public agency, including any city, county, city and county,
district, joint powers authority, state, or any agency or department
of those entities. “Person” includes, to the extent authorized by
federal or tribal law and subject to the limitations described in
subdivisions (c) and (d) of Section 10720.3, the United States, a
department, agency or instrumentality of the federal government,
an Indian tribe, an authorized Indian tribal organization, or
interstate body.

(c) “Probationary basin” means a basin for which the board has
issued a determination under Section 10735.2.

(d) “Significant depletions of interconnected surface waters”
means reductions in flow or levels of surface water that is
hydrologically connected to the basin such that the reduced surface
water flow or levels have a significant and unreasonable adverse
impact on beneficial uses of the surface water.

begin delete SEC. 2. end delete
begin insert SEC. 8. end insert   

Section 10735.8 of the Water Code is amended to read:

10735.8.  

(a) The board, after notice and a public hearing, may
adopt an interim plan for a probationary basin.

(b) The interim plan shall include all of the following:

(1) Identification of the actions that are necessary to correct a
condition of long-term overdraft or a condition where groundwater
extractions result in significant depletions of interconnected surface
waters, including recommendations for appropriate action by any
person.

(2) A time schedule for the actions to be taken.

(3) A description of the monitoring to be undertaken to
determine effectiveness of the plan.

(c) The interim plan may include the following:

(1) Restrictions on groundwater extraction.

(2) A physical solution.

(3) Principles and guidelines for the administration of rights to
surface waters that are connected to the basin.

(d)  Except as provided in subdivision (e), the interim plan shall
be consistent with water right priorities, subject to Section 2 of
Article X of the California Constitution.

(e) The board shall include in its interim plan a groundwater
sustainability plan, or any element of a plan, that the board finds
complies with the sustainability goal for that portion of the basin
or would help meet the sustainability goal for the basin. Where,
in the judgment of the board, an adjudication action can be relied
on as part of the interim plan, either throughout the basin or in an
area within the basin, the board may rely on, or incorporate
elements of, that adjudication into the interim plan adopted by the
board.

(f) In carrying out activities that may affect the probationary
basin, state entities shall comply with an interim plan adopted by
the board pursuant to this section unless otherwise directed or
authorized by statute and the state entity shall indicate to the board
in writing the authority for not complying with the interim plan.

(g) (1) After the board adopts an interim plan under this section,
the board shall determine if a groundwater sustainability plan or
an adjudication action is adequate to eliminate the condition of
long-term overdraft or condition where groundwater extractions
result in significant depletions of interconnected surface waters,
upon petition of either of the following:

(A) A groundwater sustainability agency that has adopted a
groundwater sustainability plan for the probationary basin or a
portion thereof.

(B) A person authorized to file the petition by a judicial order
or decree entered in an adjudication action in the probationary
basin.

(2) The board shall act on a petition filed pursuant to paragraph
(1) within 90 days after the petition is complete. If the board, in
consultation with the department, determines that the groundwater
sustainability plan or adjudication action is adequate, the board
shall rescind the interim plan adopted by the board for the
probationary basin, except as provided in paragraphs (3) and (4).

(3) Upon request of the petitioner, the board may amend an
interim plan adopted under this section to eliminate portions of
the interim plan, while allowing other portions of the interim plan
to continue in effect.

(4) The board may decline to rescind an interim plan adopted
pursuant to this section if the board determines that the petitioner
has not provided adequate assurances that the groundwater
sustainability plan or judicial order or decree will be implemented.

(5) This subdivision is not a limitation on the authority of the
board to stay its proceedings under this section or to rescind or
amend an interim plan adopted pursuant to this section based on
the progress made by a groundwater sustainability agency or in
an adjudication action pursuant to Chapter 12 (commencing with
Section 10737), even if the board cannot make a determination of
adequacy in accordance with paragraph (1).

(h) Before January 1, 2025, the state board shall not establish
an interim plan under this section to remedy a condition where the
groundwater extractions result in significant depletions of
interconnected surface waters.

(i) The board’s authority to adopt an interim plan under this
section does not alter the law establishing water rights priorities
or any other authority of the board.

begin delete SEC. 3. end delete
begin insert SEC. 9. end insert   

Chapter 12 (commencing with Section 10737) is added
to Part 2.74 of Division 6 of the Water Code, to read:

 

Chapter  12. Determination of Rights to Groundwater

 

Article 1.  General Provisions

 

10737.  

(a)  begin delete The Legislature finds and declares that this end delete begin insert This end insert begin insert end insert
chapter establishes a timely and comprehensive method for
determining rights to groundwater in furtherance of the objectives
of this part.

begin delete

(b) This chapter establishes special procedures for court use in
determining rights to groundwater. Unless otherwise provided in
this chapter, a court shall determine rights to groundwater using
the procedures codified in the Code of Civil Procedure.

(c) Nothing contained in this chapter shall be deemed to repeal
or preclude an action to determine rights to groundwater in
accordance with the common law.

end delete begin insert

(b) This chapter shall be applied and interpreted consistently
with all of the following:

end insert begin insert

(1) Protecting water rights consistent with Section 2 of Article
X of the California Constitution.

end insert begin insert

(2) Conducting an adjudication action in a manner that
promotes efficiency, reduces unnecessary delays, provides due
process, and is consistent with the achievement of the sustainability
goal within the timeframes of this part.

end insert begin insert

(3) Encouraging the compromise and settlement of adjudication
actions.

end insert begin insert

(4) Establishing procedures by which courts may conduct
comprehensive determinations of all rights and priorities to
groundwater in a basin.

end insert begin insert

(5) Providing for the conduct of an adjudication action
consistent with Winters v. U.S. (1908) 207 U.S. 564, the McCarran
Amendment (codified at 43 U.S.C. Sec. 666), and any other federal
law regarding the determination of federal or tribal water rights,
as applicable.

end insert begin insert

(6) Providing notice and due process sufficient to enable a court
in an adjudication action to determine and establish the priority
for unexercised water rights consistent with the principles
established in In re Waters of Long Valley Creek Stream System
(1979) 25 Cal.3d 339.

end insert

begin delete

10737.2.  

In making its determination of rights to groundwater,
a court shall avoid an undesirable result as defined in Section
10721.

end delete begin insert

begin insert 10737.2. end insert   

In an adjudication action for a basin required to have
a groundwater sustainability plan under this part, the court shall
manage the proceedings in a manner that minimizes interference
with the timely completion and implementation of a groundwater
sustainability plan, avoids redundancy and unnecessary costs in
the development of technical information and a physical solution,
and is consistent with the attainment of the sustainability goal
within the timeframes established by this part.

end insert begin insert

begin insert 10737.4. end insert   

Except as otherwise provided in this chapter, a court
shall determine rights to groundwater using the procedures
codified in the Code of Civil Procedure.

end insert

begin delete

 

Article 2.  Application

 

10738.  

The process defined in this chapter shall be available
to any court of competent jurisdiction.

10738.2.  

(a) Consistent with subdivision (b) of Section
10720.3, this chapter applies to an Indian tribe and to the federal
government, to the extent authorized under federal law.

(b) Section 389 of the Code of Civil Procedure shall not apply
to any failure to join an Indian tribe or the United States to an
action or proceeding brought under this chapter.

10738.4.  

An action requesting a court to determine water rights
under this chapter shall be deemed provisionally complex within
the meaning provided in Rule 3.400 of Title 3 of the California
Rules of Court.

 

Article 3.  Basin Boundaries

 

10739.  

Unless other basin boundaries are established pursuant
to Section 10722.2 or subdivision (b) of Section 12924, the
boundaries of a basin shall be as identified in Bulletin 118.

 

Article 4.  Parties

 

10740.  

Upon timely motion, the court shall permit the
department or the Department of Fish and Wildlife, or both, to
intervene in an action or proceeding brought under this chapter if
the movant claims an interest relating to the action or proceeding
and is so situated that disposing of the action or proceeding may,
as a practical matter, impair or impede the movant’s ability to
protect its interest.

 

Article 5.  Service and Notice

 

10741.  

(a) All known defendants shall be served in the manner
provided in Chapter 4 (commencing with Section 413.10) of Title
5 of Part 2 of the Code of Civil Procedure.

(b) (1) All unknown defendants shall be served by publication
as provided in Section 415.50 of the Code of Civil Procedure.

(2) In addition to other requirements of Section 415.50 of the
Code of Civil Procedure, the publication shall describe the
groundwater basin that is the subject of the action. The publication
shall describe the groundwater basin as identified pursuant to
Section 10739, the Internet address for a map depicting the basin,
and any other identifying information that the court deems
appropriate.

 

Article 6.  Discovery

 

10742.  

(a) Except as otherwise stipulated or ordered by the
court, a party shall, without awaiting a discovery request, provide
to the other parties all of the following:

(1) The name and, if known, the address and telephone number
of each individual likely to have discoverable information, along
with the subjects of that information, who the disclosing party may
use to support its claims or defenses, unless the use would be solely
for impeachment.

(2) A copy or a description by category and location, of all
documents, electronically stored information, and tangible things
that the disclosing party has in its possession, custody, or control
that it may use to support its claims or defenses, unless the use
would be solely for impeachment.

(3) A quantification of claims to water in the basin by the
disclosing party. The disclosing party shall also make available
for inspection and copying any documents or other evidentiary
material, unless privileged or protected from disclosure, on which
each claim is based, including materials bearing on the nature and
extent of those claims.

(b) A party shall make all disclosures required by this article at
or within 14 days after the parties’ initial case management
conference unless a different time is set by stipulation or court
order, or unless a party objects during the conference that initial
disclosures are not appropriate in this action and states the objection
in a proposed discovery plan. In ruling on the objection, the court
shall determine what disclosures, if any, are to be made and shall
set the time for disclosure.

(c) A party that is first served or otherwise joined after the initial
case management conference shall make its initial disclosures
within 30 days after being served or joined, unless a different time
is set by stipulation or court order.

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

end delete begin insert

 

Article begin insert 2. end insert   Scope of the Action

 

begin insert 10738. end insert   

(a) Except as provided in subdivision (b), this chapter
applies to either of the following:

(1) An adjudication action in a high- or medium-priority basin.

(2) Where a court considers the need for effective determination
and administration of water rights and priorities, the purposes of
this part, and the interest in judicial economy, and determines that
proceedings in an adjudication action should be conducted under
this chapter.

(b) This chapter does not apply to any of the following
adjudication actions:

(1) An adjudication action that concerns only allegations that
a groundwater extraction facility, or a group of facilities, is
interfering with another groundwater extraction facility or facilities
and that does not require an allocation of the basin’s groundwater
supply.

(2) An adjudication action that concerns only claims to extract,
or prevent interference with extractions from, water stored in a
basin as a result of artificial recharge and does not involve an
allocation of the basin’s groundwater supply.

(3) An adjudication action that can be resolved among a limited
number of parties and does not involve a comprehensive allocation
of the basin’s groundwater supply.

begin insert 10738.2. end insert   

(a) The court may determine all rights to groundwater
in an adjudication action for a basin, whether based upon
appropriation, overlying right, or other basis of right.

(b) As to the right to groundwater of each party, the court’s
final judgment in an adjudication action may declare the priority,
amount, purposes of use, extraction location, and place of use of
the water, together with appropriate injunction relief, subject to
terms adopted by the court to implement a physical solution in the
adjudication action.

begin insert 10738.4. end insert   

(a) (1) Except as otherwise provided in this section,
the boundaries of the area subject to an adjudication action shall
be consistent with the boundaries of a basin.

(2) If the department revises the boundaries of a basin under
Section 10722.2 or subdivision (b) of Section 12924 after an
adjudication action has been initiated, the court may revise the
boundaries of the area subject to the adjudication action as the
interest of justice and the objectives of this chapter require.

(3) Upon a showing that a revision of the basin boundaries
would further a fair and effective determination of water rights,
the court may direct any of the following to submit a request to
the department for revision of the basin boundaries in accordance
with Section 10722.2:

(A) A party to the adjudication action.

(B) The board, if the court has made a reference under Part 3
(commencing with Section 2000) of Division 2.

(C) A special master, if one has been appointed.

(b) If the court finds that including an interconnected surface
water body or subterranean stream flowing through known and
definite channels is necessary to the fair and effective
determination of the rights to a basin, the court may require the
joinder of persons who claim rights to divert and use water from
that surface water body or subterranean stream in the adjudication
action.

(c) If the court finds that claims of right to extract or divert only
minor quantities of water, not to exceed five acre-feet per year,
have no material effect on the rights of other parties, the court
may exempt those claimants with respect to those claims for only
minor quantities of water. A person exempted pursuant to this
subdivision may elect to continue as a party to the adjudication
action.

end insert begin insert

 

Article begin insert 3. end insert   Selection of Judge

 

begin insert 10739. end insert   

(a) A judge of a superior court of a county within which
a portion of the groundwater adjudication lies shall be disqualified.
The chair of the Judicial Council shall assign a judge to preside
in all proceedings in an adjudication action.

(b) An adjudication action is presumed to be a complex action
within the meaning of Rule 3.400 of the California Rules of Court
unless a party demonstrates that the comprehensive adjudication
is not complex.

(c) Sections 170.6 and 394 of the Code of Civil Procedure shall
not apply in an adjudication action.

(d) (1) Notwithstanding subdivision (b) of Section 10726.6, an
action against a groundwater sustainability agency that is located
in a basin that is being adjudicated under this chapter shall be
subject to transfer, coordination, and consolidation with the
adjudication action, as appropriate, if the action concerns the
adoption, substance, or implementation of a groundwater
sustainability plan, or the agency’s compliance with the timelines
in this part.

(2) The judge assigned by the Judicial Council pursuant to
subdivision (a) shall determine whether transfer, coordination, or
consolidation is appropriate.

end insert begin insert

 

Article begin insert 4. end insert   Electronic Service

 

begin insert 10739.6. end insert   

Except for the service of a complaint pursuant to
Article 5 (commencing with Section 10740), the service of
pleadings and papers in an adjudication action shall occur
electronically to the greatest extent possible. Each party shall
serve documents by electronic mail, or other equivalent electronic
means, to the greatest extent possible. To enable electronic service
of pleadings and papers, the attorney of record or a party
representing themselves shall include an electronic mail address
for service in the captions of pleadings and papers that the attorney
or party files in the adjudication action.

end insert begin insert

 

Article begin insert 5. end insert   Notice and Service of Complaint

 

begin insert 10740. end insert   

(a) The plaintiff shall publish notice of the complaint
pursuant to Section 6065 of the Government Code in each county
that overlies the basin or a portion of the basin.

(b) (1) The plaintiff shall provide notice of the adjudication
action to all of the following:

(A) A groundwater sustainability agency that overlies any
portion of the basin.

(B) A city, county, or city and county that overlies any portion
of the basin.

(C) A district with authority to manage or replenish groundwater
resources of the basin in whole or in part.

(D) The operator of a public water system or state small water
system that uses groundwater from the basin to supply water
service.

(E) A California Native American tribe that is on the contact
list maintained by the Native American Heritage Commission.

(F) The Attorney General, the board, the department, and the
Department of Fish and Wildlife.

(G) A federal department or agency that manages a federal
reservation that in any portion overlies the basin.

(H) A person identified under subdivision (a) or (b) of Section
10740.4 who is not a party to the action.

(I) An owner of real property in the basin, if a person who
receives notice under Section 10740.2 notifies the plaintiff of the
address of the owner of real property subject to the property tax
bill.

(J) A person who makes a request in writing, including
electronic mail.

(2) The plaintiff may provide notice required pursuant to this
subdivision by first class mail or electronic mail.

(3) (A) Except as provided in subparagraph (B), the plaintiff
shall provide notice required pursuant to this subdivision as
follows:

(i) To any person entitled to notice under subparagraphs (A)
to (G), inclusive, of paragraph (1) within 15 days of the filing of
the complaint.

(ii) To any person entitled to notice under subparagraphs (H)
to (J), inclusive, of paragraph (1) within 30 days of receipt of the
name and address of the person entitled to notice.

(B) The plaintiff may take additional time as is reasonably
necessary before providing notice under this subdivision if the
plaintiff determines that additional time is necessary to identify a
person entitled to notice under this subdivision, to confirm the
accuracy of the name or address of that person, or to determine
whether the conditions requiring notice have been satisfied.

(4) The plaintiff is not required to provide notice under this
subdivision to a person who has already been served or intervened
in the adjudication action.

begin insert 10740.2. end insert   

(a) When the plaintiff files the complaint, the plaintiff
shall lodge all of the following with the court:

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

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

A copy of the complaint may be obtained by contacting the
plaintiff or the plaintiff’s attorney identified in this notice. If you
claim rights to pump or store groundwater within the basin, either
now or in the future, you may become a party to this lawsuit by
filing an answer to the lawsuit on or before the deadline specified
in this notice. You may file an answer by completing the attached
form answer, filing it with the court indicated in this notice, and
sending a copy of the form answer to the plaintiff or the plaintiff’s
attorney. The form answer is provided for your convenience.
Should you choose to file the form answer, it will serve as an
answer to all complaints and cross-complaints filed in this case.

It is the duty of all persons who receive this notice and who claim
rights to pump or store groundwater within the basin to appear
in the lawsuit by the date specified below. All persons who claim
rights to pump or store groundwater within the basin will be
required to make proof of their claims within six months of their
appearance in the lawsuit. Any claimant who fails to appear and
submit proof of his or her claim shall be held to have forfeited all
rights to pump or store groundwater. At the conclusion of the
lawsuit, the superior court will enter a decree determining all
water rights of the basin, whether based upon appropriation,
overlying right, or other basis of right. You are encouraged to seek
the advice of an attorney promptly.”

(B) The following information shall be provided immediately
following the text described in subparagraph (A):

(i) The name of the basin that is the subject of the adjudication
action and a link to the Internet Web site address where the
department has posted a map of the basin.

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

(iii) The name, address, telephone number, and electronic mail
address of the plaintiff, or plaintiff’s attorney, from which the
complaint may be obtained and to whom a copy of the form answer
should be sent.

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

(v) A date by which persons receiving the notice must appear
in the action.

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

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

(B) Notwithstanding any other law, the filing of an answer in
the form described in subparagraph (A) in an adjudication action
is sufficient to put at issue all material allegations and applicable
affirmative defenses to the complaint in the adjudication action.

(b) Within 30 days of the assignment of a judge by the Judicial
Council, the plaintiff shall file a motion for approval of plaintiff’s
draft notice and draft form answer filed pursuant to subdivision
(a).

(c) Once the court approves the draft notice, service of that
notice in accordance with this section shall substitute for the
summons otherwise provided for in civil actions pursuant to Section
412.20 of the Code of Civil Procedure.

(d) (1) Following a court order approving the notice and form
answer and authorizing service of landowners pursuant to this
section, the plaintiff shall do all of the following:

(A) Identify the assessor parcel numbers and physical addresses
of all real property within the basin and the names and addresses
of all holders of fee title to real property within the basin using
the records of the assessor or assessors of the county or counties
in which the basin to be adjudicated lies. The plaintiff shall provide
the court and all parties with notice of its acquisition of, or
sufficient access to, this information.

(B) Mail, by registered mail or certified mail, return receipt
requested, the notice, complaint, and form answer to all holders
of fee title to real property in the basin. If the physical address of
the real property differs from the address of the holder of fee title,
the notice, complaint, and form answer shall be mailed by
registered or certified mail, return receipt requested, to the
physical address of the real property and the address of the holder
of fee title.

(C) If return receipt is not received for a parcel of real property,
the plaintiff shall post a copy of the notice, complaint, and form
answer in a conspicuous place on the real property.

(D) Within 20 days of the court order, publish the notice at least
once per week for four consecutive weeks in one or more
newspapers of general circulation in each county overlying the
basin in whole or in part.

(2) Service pursuant to this subdivision is not required if the
real property is part of a class of water users that are otherwise
noticed in accordance with this chapter.

(e) Upon completion of the mailing pursuant to subdivision (d),
the plaintiff shall file with the court a notice of the completion of
the mailing.

(f) Within 60 days after service is authorized, the plaintiff shall
prepare and file a notice of the adjudication action in the office
of the county recorder of each county overlying the basin in whole
or in part. The notice shall be recorded in a manner so as to ensure
that a person researching the title of a parcel will find the notice.

(g) The plaintiff shall serve the court-approved notice and form
answer by first class mail to any entity that is known, or with
reasonable diligence can be determined, to hold title to real
property in the basin but is exempt from property tax.

(h) The court may authorize any other procedures it finds
appropriate and necessary to provide notice to persons who may
hold groundwater rights in the basin.

(i) The court may require notice to be made available in
languages other than English.

(j) Within 15 days of the court’s approval of the notice and form
answer, the plaintiff shall provide the notice and form answer to
the department and each county and groundwater sustainability
agency that overlies any portion of the basin. The department, and
each county and groundwater sustainability agency that overlies
any portion of the basin and has an Internet Web site, shall do the
following:

(1) Post the notice and form answer on their Internet Web site
within 15 days of receipt.

(2) Provide a link to the notice and form answer from their
Internet Web site home page.

(3) Maintain the posting and link pursuant to paragraphs (1)
and (2) for the entire time that the adjudication action is pending.
The plaintiff shall notify the department and each county and
groundwater sustainability agency when the adjudication action
is no longer pending.

begin insert 10740.4. end insert   

(a) (1) Within 15 days of the court’s approval of the
notice under Section 10740.2, the plaintiff shall request from the
following entities the names and addresses of persons reporting
extractions within the basin under this part, or Part 5 (commencing
with Section 4999) or Part 5.2 (commencing with Section 5200)
of Division 2:

(A) The board.

(B) Any local agency designated as a board-designated local
area that includes the basin, or a portion of the basin, under
Section 5009.

(C) Any groundwater sustainability agency for the basin or a
portion of the basin.

(2) The entities described in subparagraphs (A) to (C), inclusive,
of paragraph (1) shall provide the plaintiff with the names, mailing
addresses, and electronic mail addresses, if available, within 45
days of the plaintiff’s request. Additionally, the board shall provide
the mailing address and electronic mail address, if available, of
any person known to the board who holds a permit or license
authorizing underground storage in the basin or who claims a
right to divert water for underground storage in the basin.

(b) If extractions in the basin or a portion of the basin are not
subject to reporting requirements under this part, or Part 5
(commencing with Section 4999) or Part 5.2 (commencing with
Section 5200) of Division 2, the plaintiff shall request the names
and addresses of all customers in the area who are supplied power
to operate groundwater extraction facilities in the basin, as
reflected in the utility records, from any investor-owned utility or
municipal utility that provides electrical power in the area. The
utility shall provide the plaintiffs with the names, mailing
addresses, and electronic mail addresses, if available, within 45
days of the plaintiff’s request.

(c) Upon request, the plaintiff shall provide reimbursement for
the reasonable costs incurred under this section to an entity
described in subparagraphs (A) to (C), inclusive, of paragraph
(1) of subdivision (a) or a utility described in subdivision (b). The
entity or utility shall incur no civil liability by reason of its
compliance with this section.

begin insert 10740.6. end insert   

(a) The plaintiff shall serve the complaint on any
person known to extract groundwater within the basin. Service
may be by personal service or by other method as provided by
Article 3 (commencing with Section 415.10) of Chapter 4 of Title
5 of Part 2 of the Code of Civil Procedure.

(b) The plaintiff shall serve the complaint on any person known
to own real property that overlies the basin and that has not been
sent the court-approved notice and form answer. Service shall be
by first class mail.

(c) Service on the United States shall be made in accordance
with Section 666 of Title 43 of the United States Code.

(d) Section 389 of the Code of Civil Procedure shall not apply
to a failure to join the United States or an Indian tribe to a
comprehensive adjudication.

begin insert 10740.8. end insert   

(a) Whenever proceedings are instituted to determine
rights to water under this chapter, it is the duty of all claimants
interested in the proceedings and having notice of the proceedings
pursuant to this chapter to appear in the proceedings and to submit
proof of their claims at the time, and in the manner, required by
this chapter.

(b) The fulfillment of the notice and service provisions of this
chapter shall be deemed 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

 

Article begin insert 6. end insert   Intervention

 

begin insert 10741. end insert   

Any of the following may intervene in an adjudication
action under this chapter:

(a) The groundwater sustainability agency for the basin or
portion of the basin.

(b) Any city, county, or city and county, that overlies any portion
of the basin.

(c) Any person upon an ex parte application that demonstrates
that the person holds fee simple ownership in a parcel in the basin
or extracts or stores water in the basin. A person filing an ex parte
application pursuant to this subdivision shall give notice to the
plaintiff consistent with the California Rules of Court.

end insert begin insert

 

Article begin insert 7. end insert   Initial Disclosure

 

begin insert 10741.5. end insert   

(a) Except as otherwise ordered by the court, a party
shall serve on the other parties and the special master, if one is
appointed, an initial disclosure within six months of appearing in
the adjudication action that includes all of the following
information:

(1) The name, address, telephone number, and electronic mail
address of the party and, if applicable, of the party’s attorney.

(2) The quantity of groundwater extracted from the basin by
the party and the method of measurement used by the party or the
party’s predecessor in interest for each of the previous five
calendar years preceding the filing of the complaint.

(3) A general description of the purpose to which the water has
been put.

(4) The area in which the water has been used.

(5) The location of each well or other source through which
groundwater has been extracted.

(6) The type of water right or rights claimed by the party for
the extraction of groundwater.

(7) Any claims for increased or future use of groundwater.

(8) The quantity of any beneficial use of any alternative water
use that the party claims as its use of groundwater under any
applicable law, including, but not limited to, Sections 1005.1,
1005.2, 1005.4, 1010, or 1011.

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

(10) The quantity of any replenishment of water to the basin
that augmented the basin’s native water supply, resulting from the
intentional storage of imported or nonnative water in the basin,
managed recharge of surface water, or return flows resulting from
the use of imported water or nonnative water on lands overlying
the basin by the party, or the party’s representative or agent,
during each of the five calendar years immediately preceding the
filing of the complaint.

(11) The names, addresses, telephone numbers, and electronic
mail addresses of all persons possessing information that supports
the party’s disclosures.

(12) Any other facts that tend to prove the party’s claimed water
right.

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

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

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

(2) If the party extracts groundwater from the basin after the
complaint is filed. The supplement filed under this paragraph shall
report the quantity of water involved and be filed within 90 days
of the end of the calendar year.

(3) As ordered by the court.

(d) To the greatest extent possible, a party shall serve its initial
disclosures electronically. If it is not possible for the party to serve
its disclosures electronically, the party shall serve the disclosures
in an electronic format saved on a portable storage media device
such as a compact disc or flash drive.

(e) A party’s obligations under this section may be enforced by
a court on its own motion or the motion of a party to compel
disclosure.

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

end insert begin insert

 

Article begin insert 8. end insert   Case Management

 

begin insert 10742. end insert   

(a) In managing an adjudication action, the court shall
convene a case management conference as provided by the
California Rules of Court.

(b) In an initial case management conference, or as soon as
practicable, the court should consider the following, in addition
to other matters:

(1) Determining whether to seek adjustment of the basin
boundaries pursuant to Section 10738.4.

(2) Staying the action pursuant to Article 9 (commencing with
Section 10742.5).

(3) Appointing a special master pursuant to Article 10
(commencing with Section 10743).

(4) Scheduling a hearing on a preliminary injunction pursuant
to Article 11 (commencing with Section 10743.5).

(5) Dividing the case into phases to resolve legal and factual
issues.

(6) Issuing orders to ensure that issues resolved in one phase
are not relitigated in another.

(7) Limiting discovery to correspond to the phases.

(8) Scheduling early resolution of claims to prescriptive rights.

(9) Formation of a class or classes of an overlying groundwater
rights holder pursuant to the criteria specified in Section 382 of
the Code of Civil Procedure.

end insert begin insert

 

Article begin insert 9. end insert   Stay

 

begin insert 10742.5. end insert   

(a) Upon the motion of any party to an adjudication
action, a court may stay an adjudication action for a period of up
to one year, subject to renewal in the court’s discretion upon a
showing of good cause, in order to facilitate any of the following:

(1) The adoption of a groundwater sustainability plan that
provides for a physical solution or may otherwise address issues
in the adjudication action.

(2) The development of technical studies that may be useful to
the parties in the adjudication action.

(3) The voluntary mediation or participation in a settlement
conference on all, or a portion of, the subject matters or legal
questions identified in the adjudication action.

(4) The compromise and settlement of the adjudication action
or issues in the adjudication action.

(b) A stay pursuant to this section shall not stay, or otherwise
delay, the parties’ obligations to provide initial disclosures
pursuant to Article 7 (commencing with Section 10741.5) unless
the court determines the initial disclosures will not benefit
resolution of the comprehensive adjudication.

end insert begin insert

 

Article begin insert 10. end insert   Special Master

 

begin insert 10743. end insert   

(a) The court may appoint one or more special masters,
whose duties may include the following:

(1) Investigating technical and legal issues, as directed by the
court. The special master shall compile a report of findings in
accordance with Section 10743.2.

(2) Conducting joint factfinding with the parties, their designees,
or both.

(3) Investigating the need for, and developing the proposal for,
a preliminary injunction pursuant to Article 11 (commencing with
Section 10743.5).

(4) Performing other tasks the court may deem appropriate.

(b) The court shall fix a special master’s compensation on the
basis and terms stated in the appointing order. The court may set
a new basis and terms for the special master after giving notice
and an opportunity to be heard. The court shall allocate payment
for the cost of the special master among the parties in an amount
and a manner that the court deems equitable. The court may waive
a party’s payment obligation upon a showing of good cause.

(c) The court may request that the board or department
recommend candidates for appointment as special master or review
the qualifications of candidates.

(d) This section does not limit the authority of the court to make
a reference pursuant to Chapter 1 (commencing with Section 2000)
of Part 3 of Division 2.

(e) This section does not limit the authority to appoint a
watermaster pursuant to Chapter 3 (commencing with Section
4050) of Part 4 of Division 2 or any other law.

begin insert 10743.2. end insert   

(a) The special master shall make available a draft
report and provide at least 60 days for the parties to submit written
objections to the draft report.

(b) An objection to the draft report shall identify the specific
grounds and evidence on which the objection is based.

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

(d) The special master shall consider the objections to the draft
report and prepare a final report that shall be filed with the court.

end insert begin insert

 

Article begin insert 11. end insert   Preliminary Injunction

 

begin insert 10743.5. end insert   

(a) Upon a showing that the basin is in a condition
of long-term overdraft, the court may, upon notice and a hearing,
issue a preliminary injunction.

(b) The following information shall be admissible and shall
constitute prima facie evidence of a condition of long-term
overdraft:

(1) Bulletins and other reports of the department.

(2) A report of a special master indicating that a condition of
long-term overdraft exists.

(c) A preliminary injunction may include, but is not limited to,
any of the following:

(1) A moratorium on new or increased appropriations of water.

(2) A limitation on or reduction in the diversion or extraction
of water.

(3) An allocation among the parties establishing amounts of
extraction allowed during the pendency of the action.

(4) Procedures for voluntary transfers.

(d) The court shall issue a preliminary injunction upon a
determination of all of the following:

(1) The basin is in a condition of long-term overdraft.

(2) The basin is a probationary basin or is not in compliance
with the planning deadlines in subdivision (a) of Section 10720.7.

(3) There is no interim plan in effect for the basin pursuant to
Section 10735.8.

(e) The court may provide a schedule for further reductions in
extractions over a period of years if the court finds that doing so
appears reasonably necessary to meet the sustainability goal within
the timelines provided in subdivision (b) of Section 10727.2.

(f) The terms of a preliminary injunction shall not determine
the rights in the final judgment of the action.

(g) No bond or undertaking shall be required for the issuance
of a preliminary injunction.

(h) The court may appoint a watermaster to oversee the
enforcement of a preliminary injunction.

end insert

 

Article begin delete 7. end delete begin insert 12. end insert   Expert Witnesses

 

begin delete 10743. end delete
begin insert 10744. end insert   

(a) In addition to the other disclosures required by this
chapter, a party shall disclose to the other parties the identity of
any expert witness it may use at trial to present evidence.

(b) Unless otherwise begin delete stipulated or end delete ordered by the court, this
disclosure shall be accompanied by a written report, prepared and
signed by the expert witness, if the expert witness is retained or
specially employed begin delete to provide expert testimony in the case or
whose end delete begin insert by the party offering the expert witness to testify as an expert
in the action, or if the expert witness’s end insert duties as the party’s
employee regularly involve giving expert testimony. The report
shall contain all of the following:

(1) A complete statement of all opinions the expert witness will
express and the basis and reasons for begin delete them. end delete begin insert those opinions. end insert

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

(3) Any exhibits begin delete that will be used to summarize or support the
opinions of the expert witness. end delete begin insert the expert witness will use to
summarize or support his or her opinion. end insert

(4) The expert begin delete witness’ end delete begin insert witness’s end insert qualifications, including a list
of all publications authored begin insert by the expert witness end insert in the previous
10 years.

(5) A list of all other cases in begin delete which, during the previous four
years, end delete begin insert which end insert the expert witness begin delete testified end delete begin insert testified, end insert as an expert at
trial or by begin delete deposition. end delete begin insert deposition, in the last five years. end insert

(6) A statement of the compensation to be paid begin delete to the expert
witness for the study and testimony in the case. end delete begin insert for the witness’s
work and testimony in the adjudication action. end insert

(c)  begin delete Unless otherwise stipulated or ordered by the court, if the
expert witness is not required to provide a written report, the end delete begin insert If
subdivision (b) does not apply to an expert, the witness’s end insert disclosure
shall begin delete state end delete begin insert include end insert both of the following:

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

(2) A summary of the begin delete facts and opinions to which the end delete expert
begin delete witness is expected to testify. end delete begin insert witness’s opinions and the facts or
data considered by the expert witness in forming his or her opinion. end insert

begin delete

(d) A party shall make the required disclosures at the times and
in the sequence that the court orders. Absent a stipulation or a court
order, the disclosures shall be made at either of the following times:

(1) At least 90 days before the date set for trial or for the case
to be ready for trial.

(2) If the evidence is intended solely to contradict or rebut
evidence on the same subject matter identified by another party,
within 30 days after the other party’s disclosure.

end delete begin insert

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

end insert begin insert

(1) No sooner than 30 days after the court’s entry of an order
establishing the scope of the relevant phase of the adjudication
action.

end insert begin insert

(2) Except for a supplemental expert witness described in
paragraph (3), no later than 60 days before the date set for trial
for the relevant phase of the adjudication action.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(B) As ordered by the court.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(g) If a party or its expert witness fails to comply with this
section, the court may, upon notice and hearing, exclude the expert
witness’s testimony from trial, authorize additional depositions of
the expert witness at the party’s expense, or take other appropriate
action.

end insert

 

begin insert

Article begin insert 13. end insert   begin insert Written Testimony end insert

end insert

 

begin insert

begin insert 10744.5. end insert   

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

(b) If the court requires the submission of written testimony
pursuant to subdivision (a), a complete copy of the direct testimony
shall be served at least 21 days before trial. A complete copy of
any rebuttal testimony shall be served no later than the first day
of trial.

(c) If the contents of the written testimony would have been
admissible if the witness testified orally, the written testimony shall
be received by the court as a documentary exhibit provided that
the witness whose written testimony is being offered is made
available for cross-examination by all parties.

end insert

 

begin insert

Article begin insert 14. end insert   begin insert Physical Solution end insert

end insert

 

begin insert

begin insert 10745. end insert   

(a) The court shall have the authority and the duty to
impose a physical solution on the parties in an adjudication action,
consistent with Section 2 of Article X of the California Constitution,
where necessary.

(b) Prior to adopting a physical solution presented by a party
or considered on the court’s own motion, the court shall determine
whether a physical solution is required to prevent waste and
unreasonable use by Section 2 of Article X of the California
Constitution after considering any existing groundwater
sustainability plan or program.

end insert

 

begin insert

Article begin insert 15. end insert   begin insert Stipulated Judgment end insert

end insert

 

begin insert

begin insert 10746. end insert   

(a) If a party, or a group of parties, submits a proposed
stipulated judgment, the court may adopt the proposed stipulated
judgment if the court finds that it meets all of the following criteria:

(1) It is consistent with Section 2 of Article X of the California
Constitution.

(2) It treats objecting parties and any persons who have claims
that are exempted under Section 10738.4 equitably as compared
to the stipulating parties.

(3) It will not substantially impair the ability of a groundwater
sustainability agency, the board, or the department to comply with
this part and to achieve the sustainability goal.

(b) (1) The court may adopt a proposed stipulated judgment,
as applied to the stipulating parties, if the stipulation meets the
criteria described in subdivision (a) and it is submitted by a party,
or a group of parties, and supported by either of the following:

(A) More than 50 percent of all named parties in the
adjudication action.

(B) Groundwater extractors responsible for at least 75 percent
of the groundwater production in the basin during the past five
calendar years.

(2) A party objecting to a proposed stipulated judgment pursuant
to this subdivision shall demonstrate, by a preponderance of the
evidence, that the proposed stipulated judgment does not satisfy
one or more criteria described in subdivision (a) or that it
substantially violates the party’s water rights. If the objecting
party is unable to make this showing, the court may impose the
proposed stipulated judgment on the objecting party. The objecting
party may be subject to a preliminary injunction under Article 11
(commencing with Section 10743.5) while the party’s objections
remain unresolved.

end insert begin insert

begin insert 10746.2. end insert   

Chapter 11 (commencing with Section 10735) shall
not apply to a stipulated judgment approved by the court pursuant
to Section 10746 if all of the following apply:

(a) The proposed stipulated judgment meets the criteria of
subdivision (a) of Section 10746.

(b) All groundwater sustainability agencies within the basin
support the proposed stipulated judgment.

(c) A local agency has submitted the proposed stipulated
judgment to the department for evaluation and assessment pursuant
to Section 10733.4 or paragraph (2) of subdivision (b) of Section
10733.6. Notwithstanding subdivision (c) of Section 10733.6, a
proposed stipulated judgment may be submitted to the department
after January 1, 2017.

(d) The department determines that the proposed stipulated
judgment satisfies the objectives of this part for the basin.

end insert

 

begin insert

Article begin insert 16. end insert   begin insert Judgment Binding on Successors end insert

end insert

 

begin insert

begin insert 10747. end insert   

The judgment in an adjudication action under this
chapter shall be binding on the parties to the action, each party’s
successors in interest, including, but not limited to, heirs, executors,
administrators, assigns, lessees, licensees, and upon the agents
and employees of all these persons, and upon all landowners or
other persons claiming rights to extract groundwater from within
the basin.

end insert

 

begin insert

Article begin insert 17. end insert   begin insert Continuing Jurisdiction end insert

end insert

 

begin insert

begin insert 10748. end insert   

(a) The court shall have continuing jurisdiction to
modify or amend a final judgment in an adjudication action as
follows:

(1) In response to new information or changed circumstances.

(2) In the interests of justice.

(3) To ensure that the criteria of subdivision (a) of Section 10746
are met.

(b) When feasible, the judge who heard the original adjudication
action should preside over subsequent actions or motions to modify
or amend the judgment.

(c) If the court has approved a stipulated judgment not subject
to Chapter 11 (commencing with Section 10735) in accordance
with Section 10746.2, the department shall submit to the court the
assessments and any recommended corrective actions that the
department issues pursuant to Section 10733.8. The court, after
notice and a hearing, shall determine whether to amend the
judgment to adopt the department’s recommended corrective
actions.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert begin insert

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

end insert