BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1260
                                                                  Page  1

           (Without Reference to File)
           
          CONCURRENCE IN SENATE AMENDMENTS
          AB 1260 (Fuller)
          As Amended  August 9, 2010
          Majority vote
           
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          |ASSEMBLY:  |     |(May 11, 2009)  |SENATE: |26-5 |(August 9,     |
          |           |     |                |        |     |2010)          |
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               (vote not relevant)

          Original Committee Reference:    B. & P.
           
           SUMMARY  :  Extends the terms of the current California Water  
          Commission (CWC) members, all of whom were appointed by Governor  
          Schwarzenegger, until May 14, 2014.

           The Senate amendments  delete the Assembly version of the bill,  
          and instead:

          1)Extend until May 14, 2014 the term of any CWC member who is  
            serving an unexpired term as of January 1, 2011.

          2)Resume staggering CWC member terms on May 14, 2014.

           EXISTING LAW  :

          1)Creates a nine-member CWC within the Department of Water  
            Resources (DWR) with each member appointed by the Governor,  
            subject to confirmation by the Senate, and serving four years.

          2)Staggers CWC members' terms so that one or more expires each  
            year.

          3)Requires the CWC to approve all DWR rules and regulations  
            other than those relating exclusively to DWR's internal  
            administration and management and empowers the CWC to name all  
            State Water Project facilities.

          4)Provides that if the Safe, Clean, and Reliable Drinking Water  
            Supply Act of 2010 (Water Bond) is approved by the voters,  
            then:









                                                                  AB 1260
                                                                  Page  2

             a)   $3 billion dollars shall be continuously appropriated to  
               the CWC to fund what it determines are the public benefits  
               of water storage projects selected by the CWC and which  
               improve the Sacramento-San Joaquin Delta (Delta) ecosystem  
               or tributaries to the Delta; and,

             b)   Water storage project public benefits shall be broadly  
               defined to include: ecosystem improvements, including  
               changing the timing of water diversions or improving flows  
               or water temperatures to benefit native fish and wildlife;  
               water quality improvements; flood control benefits;  
               emergency response; and recreational purposes.

           AS PASSED BY THE ASSEMBLY  , this bill addressed the Acupuncture  
          Board and the requirements for a quorum.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  This bill extends to May 14, 2014, the term of any  
          CWC member whose appointment has been confirmed by the Senate  
          and who is serving in an unexpired term as of January 1, 2011.   
          Without passage of this bill, the terms of the current water  
          commissioners who were appointed by the Governor on May 14, 2010  
          would otherwise expire as follows: three on January 15, 2011,  
          two on January 15, 2012, two on January 15, 2013, and two on  
          January 15, 2014. 

          On October 11, 2009, Governor Schwarzenegger issued a  
          proclamation convening the Legislature to meet in extraordinary  
          session to take up issues related to protecting and restoring  
          the Delta ecosystem and improving water reliability and  
          management, including addressing water conveyance, storage, and  
          conservation, and considering a general obligation bond.  

          SB 2X7 (Cogdill), Chapter 3, Statutes of the 2009-10 Seventh  
          Extraordinary Session, passed in November 2009, formed part of  
          the historic five-bill package adopted in that session and  
          called for a water bond to be placed on the November 2010  
          ballot.  If approved by the voters, it would authorize the  
          issuance of bonds in the amount of $11.14 billion for a wide  
          range of projects and purposes including water conservation and  
          efficiency, groundwater protection and cleanup, integrated  
          regional water management, ecosystem and watershed protection  
          and restoration, water recycling, and water storage.  With  
          respect to water storage projects, SB 2X7 continuously  








                                                                  AB 1260
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          appropriates $3 billion to the CWC to fund the public benefits  
          of those projects after determining the amount of public  
          benefits provided by each proposed project pursuant to criteria  
          set forth in that bill.  Those criteria broadly define public  
          benefits to include: ecosystem improvements that benefit native  
          fish and wildlife; water quality improvements; flood control  
          benefits; emergency response; and recreational purposes. 

          On May 14, 2010, Governor Schwarzenegger announced nine new  
          appointments to the CWC, a body which was previously dormant  
          during his administration.  Since that time, Governor  
          Schwarzenegger announced he would seek to delay the Water Bond  
          until the 2012 ballot.

          Related legislation, AB 1265 (Ma), was gutted and amended by the  
          Senate on August 5, 2010 to become AB 1265 (Caballero), which  
          would delay the Water Bond until the 2012 ballot and add  
          language prohibiting joint powers authorities which receive  
          public water bond funds to design, acquire, and construct water  
          storage projects from including in their membership for-profit  
          members.  In anticipation of passage of AB 1265 delaying the  
          water bond, this bill (AB 1260) was amended in the Senate to  
          provide that each of Governor Schwarzenegger's current CWC  
          appointees, if confirmed by the Senate, would have full four  
          year terms extending to May 14, 2014.  Even though Governor  
          Schwarzenegger's term ends in 2010, this would ensure that if  
          the water bond were put on the 2012 ballot and passed by the  
          voters, his current CWC appointees, if confirmed by the Senate,  
          would still make the initial decisions regarding the $3 billion  
          authorized by the water bond for water storage projects.

          This bill was substantially amended in the Senate and the  
          Assembly-approved provisions of this bill were deleted.  The  
          subject matter of this bill was not heard in an Assembly policy  
          committee this legislative session.

           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096                                          FN: 0005783