BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2483
                                                                  Page  1

          Date of Hearing:   May 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2483 (Coto) - As Amended:  May 19, 2010 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            9-3
                        Local Government                      6-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill broadens and codifies powers and purposes of the Santa  
          Clara Valley Water District, by establishing the Santa Clara  
          Valley Water District Act. Key provisions of the bill:

          1)Expand the district's authority and responsibility to include  
            protection against land subsidence, responding to climate  
            change, encouraging the integration of energy and water  
            policies, entering into agreements with public or private  
            entities, managing flood facilities, investigating water  
            quality, and performing cleanup and containment required by  
            federal or state law.

          2)Authorize the district to hold polluters liable for costs of  
            cleanup or abatement activities.

          3)Expand the district's authority to use groundwater charges to  
            include management of water supplies to benefit current and  
            future users, including demand management activities and  
            related watershed stewardship activities.

          4)Subjects proposed groundwater management charges to  
            Proposition 218 notice and protest requirements. Specifically,  
            requires the district to provide written notice by mail to all  
            property owners within the district, containing the amount of  
            the charge, the basis for the charge, the date, time and  
            location of the public hearing on the proposed charge, and a  
            disclaimer that, if a majority of property owners within the  
            zone file written protests against the new or increased  
            charge, it will not be imposed.  








                                                                  AB 2483
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           FISCAL EFFECT
          
          1)State costs are minor and absorbable. Any local enforcement  
            costs related to provisions of the bill making a violation of  
            newly authorized district ordinances a misdemeanor are not  
            reimbursable.

          2)Costs to the district would be covered by fees charged to  
            members. Mandated costs not reimbursable because the district  
            is requesting the measure.

           COMMENTS
           
           1)Purpose  . In 1951 the Legislature passed the Santa Clara Valley  
            Water District Act. This act has been amended many times over  
            the years but has never been comprehensively updated. This  
            bill, sponsored by the Santa Clara Valley Water District, is  
            intended to update the act to reflect current challenges and  
            responsibilities of the district. The sponsor asserts that  
            Santa Clara County is faced with water resource challenges  
            brought on by population growth, periodic drought, regulatory  
            restrictions, environmental considerations, aging  
            infrastructure, and changing laws, and that it needs an  
            updated district act to effectively address these challenges.  
            The sponsor also indicates that increasing pressures on the  
            Bay-Delta system - the source of half of Santa Clara County's  
            water supplies - make it imperative the district have the  
            clear authority to promote water conservation and protect the  
            quality and quantity of local groundwater supplies to ensure  
            reliability of the local water supply.

           2)Opponents  . The bill is opposed by the California Water  
            Association, which asserts the bill provides the district with  
            overly broad and unnecessary authority that would harm retail  
            water purveyors in Santa Clara County.

            The Howard Jarvis Taxpayers Association, contends it is  
            premature for the district to establish a methodology for  
            handling increases in groundwater management charges when the  
            courts are currently debating which provisions of Proposition  
            218 apply to groundwater management charges.

           3)Proposition 218  , approved by voters in November 1996, requires  
            that "except for fees or charges for sewer, water, and refuse  








                                                                  AB 2483
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            collection services, no property related fee or charge shall  
            be imposed or increased unless and until that fee or charge is  
            submitted and approved by a majority vote of the property  
            owners of the property subject to the fee or charge or, at the  
            option of the agency, by a two-thirds vote of the electorate  
            residing in the affected area."  Proposition 218 requires that  
            property related fees and charges are subject to protest and  
            noticing requirements. Courts are currently considering the  
            question of whether groundwater pumping charges fall within  
            the Proposition 218 "water" exemption from the voter approval  
            requirement. 


           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081