BILL NUMBER: SB 564	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 4, 2016
	AMENDED IN ASSEMBLY  AUGUST 1, 2016
	AMENDED IN ASSEMBLY  JUNE 16, 2016

INTRODUCED BY   Senator Cannella

                        FEBRUARY 26, 2015

   An act to amend Section 10723 of the Water Code, and to create the
 West   North Fork  Kings 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 564, as amended, Cannella.  West   North
Fork  Kings 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  West   North Fork
 Kings Groundwater Sustainability Agency, would establish the
initial boundaries of the agency, and would authorize the agency's
boundaries to be changed by the boards of supervisors of the Counties
of Fresno and Kings after a noticed public  hearing.
  hearing, 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  West
  North Fork  Kings 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 37 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:

  SECTION 1.  This act shall be known and may be cited as the
 West   North Fork  Kings Groundwater
Sustainability Agency.

       West   North Fork  Kings Groundwater
Sustainability Agency
      Article 1.  Findings and Declarations


  101.  The Legislature hereby finds and declares that the
preservation of the groundwater resources within the territory of the
agency  for agricultural, municipal, and industrial uses
 is in the public interest and that the creation of the
agency pursuant to this act is for the common  benefit of
water users.   benefit. 
  102.  The Legislature further finds and declares that the
groundwater management activities of the agency benefit all operators
of groundwater extraction facilities within the territory of the
agency.
  103.  The Legislature further finds and declares that circumstances
in the territory of the agency to be formed hereby, which may not
exist in other locations, justify the formation of the agency and the
grant of powers contained in this act. The territory of the agency
to be formed hereby includes vast areas of the nation's top farm
producing lands and places that have been designated by the State of
California as disadvantaged communities disproportionately impacted
by air quality and socioeconomic burdens. There are a number of
scattered small public and private water entities in the territory of
the agency that do not have the staff or resources to otherwise form
a groundwater sustainability agency. These entities agree the
territory is best served by a single dedicated agency to manage the
groundwater resources.
      Article 2.  Creation and Purposes


  201.  (a) A groundwater management agency is hereby created in the
Counties of Fresno and Kings to be known as the  West
  North Fork  Kings Groundwater Sustainability
Agency.
   (b)  The agency shall be governed by a board as specified in
Section 501 and shall have the boundaries specified in Section 301.
The agency shall only exercise the powers granted by this act and the
Sustainable Groundwater Management Act (Part 2.74 (commencing with
Section 10720) of Division 6 of the Water Code) for purposes of
groundwater management within the boundaries of the agency, together
with any other powers as are reasonably implied, necessary, and
proper to carry out the objectives and purposes of the agency to
implement the Sustainable Groundwater Management Act. The agency
shall abide by the rules and regulations promulgated by the
Department of Water Resources and the State Water Resources Control
Board to implement the Sustainable Groundwater Management Act.
      Article 3.  Boundaries


  301.  For purposes of this act, the initial boundaries of the
agency shall be as follows:
   Beginning at the intersection of the southwestern boundary of
Raisin City Water District (Raisin City WD) and Highway 145, the
North Fork  Kings  Groundwater Sustainability Agency
Boundary (Boundary) follows Highway 145 southwest to the southern
boundary of Reclamation District 1606 (RD 1606). It then follows the
southern boundaries of RD 1606 and James Irrigation District (James
ID) to the intersection of the James ID boundary with the Kings
Subbasin boundary. Then, it follows said subbasin boundary south and
east to its intersection with the southwestern boundary of
Consolidated Irrigation District (Consolidated ID). The Boundary then
continues north and west following the southern Consolidated ID
boundary and the southern and western Raisin City WD boundaries to
the point of beginning. 
  302.  The agency's initial boundaries shall be established by the
boards of supervisors of the Counties of Fresno and Kings after a
noticed public hearing. The boundaries shall be depicted on a map
that shall be adopted by the boards of the supervisors of those
counties and thereafter recorded in the office of the county recorder
of each county.  
  303.  The boards of supervisors of the Counties of Fresno and Kings
may adjust the boundaries of the agency in the same manner
prescribed for in establishment of the initial boundaries if the
boundaries of the basin are revised, including the establishment of
new subbasins.  
  302.  (a) The initial boundaries of the agency may be changed upon
a petition to the boards of supervisors of the Counties of Fresno and
Kings after a noticed public hearing at the county in which the
change is proposed. The boundaries shall be depicted on a map that
shall be maintained by the boards of supervisors of those counties
and thereafter recorded in the office of the county recorder of each
county.
   (b) The boundaries of the agency shall not be adjusted to include
an area of the basin within the management area of another
groundwater sustainability agency unless the agency has entered into
a memorandum of agreement or other legal agreement with that
groundwater sustainability agency that permits the area to be
included.
   (c) The boundaries of the agency shall be adjusted to include any
part of a proposed management area, as defined in a notice of intent
submitted pursuant to Section 10723.8 of the Water Code, unless the
agency has entered into a memorandum of agreement or other legal
agreement with all agencies listed in the notice of intent that
permits the area to be included. 
      Article 4.  Definitions


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

  402.  "Actively and primarily engaged in production of agriculture"
means that a person derives at least 75 percent of his or her annual
income from production agriculture. 
  403.  "Agency" means the  West   North Fork
 Kings Groundwater Sustainability Agency established by this
act.
  404.  "Aquifer" means a geologic formation or structure that
transmits water in sufficient quantities to supply pumping wells or
springs.
  405.  "Basin" has the same meaning as defined in Section 10721 of
the Water Code.
  406.  "Board" means the board of directors of the agency, as more
particularly described in Section 501.
  407.  "Coordination agreement" has the same meaning as defined in
Section 10721 of the Water Code.
  408.  "County" means either the County of Fresno or the County of
Kings, as the context requires. "Counties" means the County of Fresno
and the County of Kings.
  409.  "Extraction" means the act of obtaining groundwater by
pumping or other controlled means.
  410.  "Groundwater" has the same meaning as defined in Section
10721 of the Water Code.
  411.  "Groundwater management activities" means programs, measures,
or actions taken to preserve, protect, and enhance groundwater
resources within the territory of the agency.
  412.  "Kings Subbasin" means the San Joaquin Valley Groundwater
Basin Kings Subbasin.
  413.  "Member" means any person or entity entitled to
representation on the agency's board of directors as specified in
Section 501.
  414.  "Operator" has the same meaning as defined in Section 10721
of the Water Code.
  415.  "Person"  includes any state or local governmental
agency, private corporation, firm, partnership, limited liability
company, individual, group of individuals, or, to the extent
authorized by law, any federal agency.   has the same
meaning as defined in Section 10735 of the Water Code. 
  416.  "Plan" means a groundwater sustainability plan prepared by
the agency pursuant to this act.
  417.  "Supplemental water" means surface water or groundwater
imported from outside the watershed or watersheds of the basin or
aquifer and floodwaters that are conserved and saved within the
watershed or watersheds that would otherwise have been lost or would
not have reached the basin or aquifer.
      Article 5.  General Provisions


  501.  (a) The agency shall be governed by a board of directors that
shall consist of seven members, as follows: 
   (1)  One member shall be chosen by the County of Fresno. 

   (1) One member shall be a resident or landowner chosen by the
County of Fresno. The member shall have experience or expertise in
land use, water management, or improving access to drinking water in
economically disadvantaged communities. 
   (2) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:
   (A) Clark's Fork Reclamation District.
   (B) Laguna Irrigation District.
   (C) Upper San Jose Water Company.
   (3) One member shall be  a resident or landowner  chosen
by the  member   members  of the governing
boards of  the following  special districts that
 are authorized to  provide drinking  water,
  water within the territory of the agency,  who
shall be chosen from the members of the governing boards of the
special  districts:   districts, including, but
not limited to, the following special districts: 
   (A) Laton Community Services District.
   (B) Riverdale Public Utility District. 
   (C) Lanare Community Service District. 
   (4) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:
   (A) Crescent Canal Company.
   (B) Stinson Canal and Irrigation Company.
   (5) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:
   (A) Burrel Ditch Company.
   (B) Liberty Canal Company.
   (6) One member shall be a resident or landowner chosen by the
members of the governing boards of the following entities:
   (A) Liberty Mill Race Company.
   (B) Reed Ditch Company.
   (7) One member shall be chosen by the members of the governing
boards of the following special districts, who shall be chosen from
the members of the governing boards of the special districts:
   (A) Liberty Water District.
   (B) Riverdale Irrigation District.
   (b) There shall be an alternate for each board member, chosen in
the same manner and by the same entities as the board member. The
alternate member shall act in place of the board member he or she is
an alternate for in case of that board member's absence or inability
to act.
  502.   The members shall serve for a four-year term of office. A
member may serve for more than one term of office.
  503.  (a) The board may adopt an ordinance to provide compensation
to members of the board in an amount not to exceed one hundred
dollars ($100) per day for each day's attendance at meetings of the
board or for each day's service rendered as a member of the board by
request of the board. For purposes of this section, the determination
of whether a board member's activities on any specific day are
compensable shall be made pursuant to Article 2.3 (commencing with
Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the
Government Code.
   (b) Reimbursement for expenses of members of the board is subject
to Sections 53232.2 and 53232.3 of the Government Code.
   (c) The board may adopt an ordinance to increase the compensation
received by members of the board above the amount of one hundred
dollars ($100) per day. The increase shall not exceed an amount equal
to 5 percent, for each calendar year following the operative date of
the last adjustment, of the compensation that is received when the
ordinance is adopted.
   (d) A board member shall not be compensated for more than a total
of 10 days in any calendar month.
  504.  (a) The board may adopt ordinances for the purpose of
regulating, conserving, managing, and controlling the use and
extraction of groundwater within the territory of the agency.
   (b) An ordinance adopted by the board shall become effective 30
days from the date of its passage.
   (c)  All ordinances shall be adopted at noticed, public hearings
by a majority vote of the board. No ordinance shall be adopted by the
board except at a public hearing. Notice of the hearing shall be
published in a newspaper of general circulation pursuant to Section
6066 of the Government Code.
   (d) The board shall provide notice of the adoption of all
ordinances.
  505.  No provision of this act shall be construed as denying to any
member agency any rights or powers that they already have or that
they may be granted.
  506.  The agency may contract with member entities for staff and
other services. The agency may hire contractors and consultants as it
considers appropriate.
  507.  The agency shall enter into a coordination agreement with
other local agencies for purposes of coordinating the agency's plan
with other agencies or groundwater sustainability plans within the
Kings Subbasin as required by the Sustainable Groundwater Management
Act (Part 2.74 (commencing with Section 10720) of Division 6 of the
Water Code).
  508.  The agency may exclude from any of the requirements of this
act, or the operation of any ordinance, any operator who annually
extracts less than a minimum amount of groundwater as specified by an
ordinance adopted by the board.
      Article 6.  Studies and Investigations


  601.  The agency may collect data and conduct technical and other
investigations of all kinds in order to carry out the provisions of
this act. All hydrological investigations and studies carried out by
or on behalf of the agency shall be constructed by or under the
supervision of licensed engineers or other persons qualified in
groundwater geology or hydrology.
  602.  The agency may recommend and encourage water recycling,
stormwater capture, and other water development projects, where those
projects will enhance and contribute to the responsible management
of groundwater resources, as part of its annual plan for
implementation of groundwater management objectives.
      Article 7.  Sustainable Groundwater Management Powers


  701.  The agency shall develop and implement a groundwater
sustainability plan pursuant to Chapter 6 (commencing with Section
10727) of Part 2.74 of Division 6 of the Water Code to achieve
sustainable groundwater management within the territory of the
agency.
  702.  The agency shall  elect to  be a groundwater
sustainability agency pursuant to Chapter 4 (commencing with Section
10723) of Part 2.74 of Division 6 of the Water Code for that portion
of the Kings Subbasin that lies within the boundaries of the agency.

  703.  (a) (1) The agency may establish advisory committees that
include persons representing interests of beneficial uses and users
of groundwater for purposes of assisting the board in the development
and operation of the groundwater sustainability agency and the
development and implementation of the agency's groundwater
sustainability plan.
   (2) The agency shall develop rules for the operation of advisory
committees. Members of the committees shall serve without
compensation.
   (b) (1) Pursuant to subdivision (a), the agency shall establish a
groundwater quality advisory committee for purposes of assisting the
board to consider the interests of all beneficial uses and users of
groundwater.
   (2) The committee members shall serve at the pleasure of the board
and shall include, but not be limited to, representatives of
domestic well owners, municipal well operators, local land use
planning agencies, residents served by a public water system that
serves 200 or more connections, residents served by a small community
water system, residents served by a public water system that serves
fewer than 200 connections, and environmental justice organizations
or community benefit organizations with demonstrated experience
working with disadvantaged communities with expertise in drinking
water, groundwater, or land use. 
   703.   704.   The agency may exercise
any of the powers described in Chapter 5 (commencing with Section
10725) of Part 2.74 of Division 6 of the Water Code and the
enforcement powers described in Chapter 9 (commencing with Section
10732) of Part 2.74 of Division 6 of the Water Code.
   704.   705.   The availability of
supplemental water to any operator shall not subject that operator to
regulations  by the agency  that are more restrictive than
those imposed on other operators.
      Article 8.  Fee Authority


  801.  Pursuant to Chapter 8 (commencing with Section 10730) of Part
2.74 of Division 6 of the Water Code, the agency may impose fees,
including, but not limited to, permit fees and fees on groundwater
extraction or other regulated activity, to fund the costs of a
groundwater sustainability program, that include, but are not limited
to, the preparation, adoption, and amendment of a groundwater
sustainability plan, investigations, inspections, compliance
assistance, enforcement, and program administration, including a
prudent reserve.
      Article  9.    Miscellaneous 


  901.  In the event of any conflict between the North Fork Kings
Groundwater Sustainability Agency Act and the provisions of the
Sustainable Groundwater Management Act (Part 2.74 (commencing with
Section 10720) of Division 6 of the Water Code), the provisions of
the Sustainable Groundwater Management Act shall prevail. 
  SEC. 2.  Section 10723 of the Water Code is amended to read:
   10723.  (a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater basin
may decide to become a groundwater sustainability agency for that
basin.
   (b) Before deciding to become a groundwater sustainability agency,
and after publication of notice pursuant to Section 6066 of the
Government Code, the local agency or agencies shall hold a public
hearing in the county or counties overlying the basin.
   (c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed the
exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:
   (A) Alameda County Flood Control and Water Conservation District,
Zone 7.
   (B) Alameda County Water District.
   (C) Desert Water Agency.
   (D) Fox Canyon Groundwater Management Agency.
   (E) Honey Lake Valley Groundwater Management District.
   (F) Long Valley Groundwater Management District.
   (G) Mendocino City Community Services District.
   (H) Mono County Tri-Valley Groundwater Management District.
   (I) Monterey Peninsula Water Management District. 
   (J) North Fork Kings Groundwater Sustainability Agency. 

   (J) 
    (K)  Ojai Groundwater Management Agency. 
   (K) 
    (L)  Orange County Water District. 
   (L) 
    (M)  Pajaro Valley Water Management Agency. 
   (M) 
    (N)  Santa Clara Valley Water District. 
   (N) 
    (O)  Sierra Valley Groundwater Management District.

   (O) West Kings Groundwater Sustainability Agency. 
   (P) Willow Creek Groundwater Management Agency.
   (2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department's Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local agency
or combination of local agencies operating within the statutory
boundaries of the agency that has opted out may notify the department
pursuant to Section 10723.8 of its decision to be the groundwater
sustainability agency.
   (3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this section.
A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise any
authorities granted in this part in a manner inconsistent with any
prohibitions or limitations in its principal act unless the governing
board of the local agency makes a finding that the agency is unable
to sustainably manage the basin without the prohibited authority.
   (d) The decision of a local agency or combination of agencies to
become a groundwater sustainability agency shall take effect as
provided in Section 10723.8.
  SEC. 2.5.  Section 10723 of the Water Code is amended to read:
   10723.  (a) Except as provided in subdivision (c), any local
agency or combination of local agencies overlying a groundwater basin
may decide to become a groundwater sustainability agency for that
basin.
   (b) Before deciding to become a groundwater sustainability agency,
and after publication of notice pursuant to Section 6066 of the
Government Code, the local agency or agencies shall hold a public
hearing in the county or counties overlying the basin.
   (c) (1) Except as provided in paragraph (2), the following
agencies created by statute to manage groundwater shall be deemed the
exclusive local agencies within their respective statutory
boundaries with powers to comply with this part:
   (A) Alameda County Flood Control and Water Conservation District,
Zone 7.
   (B) Alameda County Water District.
   (C) Desert Water Agency.
   (D) Fox Canyon Groundwater Management Agency.
   (E) Honey Lake Valley Groundwater Management District.
   (F) Kings River East Groundwater Sustainability Agency.
   (G) Long Valley Groundwater Management District.
   (H) Mendocino City Community Services District.
   (I) Mono County Tri-Valley Groundwater Management District.
   (J) Monterey Peninsula Water Management District. 
   (K) North Fork Kings Groundwater Sustainability Agency.

   (K) 
    (L)  Ojai Groundwater Management Agency. 
   (L) 
    (M)  Orange County Water District. 
   (M) 
    (N)  Pajaro Valley Water Management Agency. 
   (N) 
    (O)  Santa Clara Valley Water District. 
   (O) 
    (P)  Sierra Valley Groundwater Management District.

   (P) West Kings Groundwater Sustainability Agency. 
   (Q) Willow Creek Groundwater Management Agency.
   (2) An agency identified in this subdivision may opt out of being
the exclusive groundwater management agency within its statutory
boundaries by sending a notice to the department, which shall be
posted on the department's Internet Web site within 15 days of
receipt. If an agency identified in paragraph (1) opts out of being
the exclusive groundwater management agency, any other local agency
or combination of local agencies operating within the statutory
boundaries of the agency that has opted out may notify the department
pursuant to Section 10723.8 of its decision to be the groundwater
sustainability agency.
   (3) A local agency listed in paragraph (1) may comply with this
part by meeting the requirements of Section 10733.6 or opting to
become a groundwater sustainability agency pursuant to this section.
A local agency with authority to implement a basin-specific
management plan pursuant to its principal act shall not exercise any
authorities granted in this part in a manner inconsistent with any
prohibitions or limitations in its principal act unless the governing
board of the local agency makes a finding that the agency is unable
to sustainably manage the basin without the prohibited authority.
   (d) The decision of a local agency or combination of agencies to
become a groundwater sustainability agency shall take effect as
provided in Section 10723.8.
  SEC. 3.  Section 2.5 of this bill incorporates amendments to
Section 10723 of the Water Code proposed by both this bill and Senate
Bill 37. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2017, (2) each
bill amends Section 10723 of the Water Code, and (3) this bill is
enacted after Senate Bill 37, in which case Section 2 of this bill
shall not become operative.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.