BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1578
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          Date of Hearing:  April 11, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                    AB 1578 (Logue) - As Amended:  March 29, 2012
           
          SUBJECT  :  Indian Valley Watermaster District.

           SUMMARY  :  Creates the Indian Valley Watermaster District.  
          Specifically,  this bill  :  

          1)Creates a watermaster district in Plumas County to be known as 
            the Indian Valley Watermaster District (District).

          2)States that the purpose of the District is to act as 
            watermaster over those decreed water rights whose places of 
            use are within the territory of the District and for which the 
            court has appointed the District as the watermaster.

          3)Establishes the exterior boundaries of the District.

          4)Defines the following terms for purposes of this measure:

             a)   "Appointed decree" means a decree for which the District 
               is appointed the watermaster by the court;

             b)   "Appointed parcel" means a parcel of real property 
               within the District that is a place 
             of use for water rights under an appointed decree;

             c)   "Board of directors" or "board" means the board of 
               directors of the District;

             d)   "Contracted parcel" means an eligible parcel whose owner 
               has entered into a contract with the District to provide 
               watermaster service for that parcel;

             e)   "County" means Plumas County;

             f)   "Court" means the Superior Court for the County of 
               Plumas;

             g)    "Decree" or "decrees" means any water right decree, 
               entered by the court that adjudicates water rights within 
               the county in which the decreed points of diversion are 








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               within the county;

             h)    "Department" means the Department of Water Resources 
               (DWR);

             i)    "District" means the Indian Valley Watermaster 
               District;

             j)    "Eligible parcel" means a parcel of real property 
               within the District that is a place of use for water rights 
               under a decree that is not an appointed decree, and for 
               which the department is not the watermaster;

             aa)   "Fund" means the fund designated by the court, or by 
               the District in the absence of a designation by the court, 
               into which charges levied by the District shall be paid by 
               the county upon collection;

             bb)  "Owner" means a person who is an owner of a parcel of 
               real property within the District that is a place of use 
               for water rights under a decree;

             cc)   "Person" means any state or local governmental agency, 
               private corporation, firm, partnership, individual, group 
               of individuals, or, to the extent authorized by law, any 
               native tribe or federal agency; 

             dd)  "Indian Valley Service Area" means the territory 
               included in the Indian Valley Water District as described 
               in the measure.  

             ee)  "Indian Valley" means that portion of the District 
               generally drained by Indian Creek; and,

             ff)  "Voter" means a holder of water rights whose place of 
               use under a decree is an appointed or contracted parcel.

          5)Specifies that the District board (Board) would consist of 
            five members.

          6)States that one member of the Board shall be a voter holding 
            water rights whose places of use under a decree are appointed 
            or contracted parcels within the Indian Valley Service Area; 
            these members shall be elected at large from the Indian Valley 
            Service Area. 








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          7)States that, two members of the Board be appointed by the 
            Plumas County Board of Supervisors, specifying that these 
            members shall be residents of the County and shall not be 
            voters.

          8)Specifies that a quorum of the Board is three members.

          9)Requires, on or before February 1, 2013, the board of 
            supervisors of Plumas County to appoint the members of the 
            board of directors and specifies these initial members will 
            hold office until their successors are elected.

          10)Requires the board of directors at their first meeting to 
            classify themselves by lot into two classes where in class 
            one, three members of the first Board shall serve a term of 
            four years and the other class will have two members that will 
            serve for a two-year term.

          11)Specifies that the remaining Board member terms shall serve 
            four years.

          12)Allows members of the Board to be reelected.

          13)Requires that all elections of the District follow the 
            Uniform District Election Laws.

          14)States that if a vacancy occurs on the Board, it shall be 
            filled by appointment by a majority 
          of the remaining Board members.

          15)Requires that for parcels with multiple owners, the owners 
            must designate in writing to the District a single voter to 
            represent them for voting purposes.

          16)Requires the Board to do all of the following:

             a)   Act only by ordinance, motion, or resolution;

             b)   Keep a record of all its actions, including financial 
               transactions; and

             c)   Adopt rules or bylaws for its proceedings.

          17)Authorizes the Board to provide, by ordinance or resolution, 








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            that members may receive their actual and necessary traveling 
            and incidental expenses incurred while on official business.

          18)Requires that prior to taking office, each elected director 
            must take the official oath of office and execute any 
            requirement bond that may be established by the Board.

          19)Requires the Board to select a chairperson and a vice 
            chairperson at the first meeting of the Board and annually 
            thereafter.

          20)Specifies that the meetings of the Board are subject to the 
            Ralph M. Brown Act.

          21)Provides the District with the basic powers generally given 
            to all special districts.

          22)Specifies that the District is not subject to Local Agency 
            Formation Commission laws.

          23)States that the District shall serve as the watermaster for 
            any appointed decree, including but not limited to, taking 
            specific actions ordered by the court in the administration of 
            that decree or decrees.

          24)States that in carrying out its duties as watermaster, the 
            District shall have the powers and duties as provided to DWR 
            in managing a watermaster service area except as modified by 
            the court.

          25)Authorizes the District to enter into agreements to provide 
            watermaster service to holders of a water right whose place of 
            use is an eligible parcel where all holders of the water right 
            have agreed to the service.

          26)Requires that an agreement to provide watermaster services to 
            an eligible parcel must include a provision that the owners 
            agree to pay in full for the service prior to the provision of 
            service.

          27)Requires that the amount being paid must be determined to 
            ensure that the provision of the watermaster service to 
            contracted parcels does not increase the cost of the 
            watermaster services to appointed parcels.









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          28)Requires charges levied by the District to comply with 
            Proposition 218.


          29)States that amounts owed to Plumas County on account of 
            services provided to the District by Plumas County shall be 
            included on a proportional basis in the District's budget for 
            each watermaster service area.

          EXISTING LAW  :
           
           1)States that, upon written request submitted to DWR by the 
            owners or governing bodies of at least 15% of the conduits 
            lawfully entitled to directly divert water from the streams or 
            other sources of water supply in any service area, DWR may, if 
            it determines that it is necessary, appoint a watermaster and 
            if necessary, in its discretion, one or more deputy 
            watermasters for the service area.

          2)Provides that, upon petition made to a court in which a 
            relevant judicial decree has been entered by the owners or 
            governing bodies of at least 15% of the conduits lawfully 
            entitled to directly divert water from the streams or other 
            sources of water supply in any service area, the court may 
            appoint a public agency as watermaster under this part to 
            replace the watermaster appointed by DWR.

          3)States that a watermaster appointed by the court shall have 
            the powers and duties prescribed by the court pursuant to the 
            exercise of its judicial authority.

          4)Establishes a Watermaster District for Siskiyou County.  

          5)Establishes a Watermaster District for Shasta and Tehama 
            Counties. 

           FISCAL EFFECT  :   This bill is keyed fiscal.

           COMMENTS  :   

          1)The main purpose of the watermaster program is to ensure water 
            is allocated according to established water rights as 
            determined by court adjudications or agreements by an 
            unbiased, qualified person, thereby reducing water rights 
            court litigation, civil lawsuits, and law enforcement 








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            workload.  It also helps prevent the waste or unreasonable use 
            of water.  According to DWR, there are eight Northern District 
            field watermasters working full time in their respective 
            service areas during the irrigation season, usually April 1 
            through September 30.  It is the watermaster's responsibility 
            to physically regulate between 100 to 200 diversions within 
            one or more service areas during this period.

          2)According to the author's office, the basic problem that this 
            bill is trying to address is the cost of the watermaster's 
            services.  In 2011 the Legislature eliminated all General Fund 
            support for the state watermaster services, forcing DWR to 
            dramatically increase fees on property owners that receive 
            these services. In Indian Valley fees are now five times 
            higher than they were in 2010. According to the author, the 
            purpose of the bill is to transfer responsibility for 
            watermaster services from DWR to a local watermaster district 
            thus allowing the local district to be more cost-effective in 
            the long run than continuing with DWR.

          3)This bill creates a special district that can serve as 
            watermaster to enforce local court decrees for water rights in 
            Plumas County, in place of the watermaster presently appointed 
            by DWR.  No existing special district or local government 
            within Plumas County is well suited and prepared to serve in 
            this capacity, and special districts that could be formed 
            through the Plumas County Local Agency Formation Commission 
            lack the appropriate characteristics for serving as a 
            watermaster.

          4)This bill creates a special district to serve as watermaster, 
            but would not cause any actual substitution of service to take 
            place.  After the proposed watermaster district is formed by 
            enactment of the bill, water right holders would then take 
            action in the Superior Court to replace the DWR watermaster 
            with the new district.

          5)The Committee may wish to consider asking the author to take 
            amendments to clarify that the District's actions shall be 
            consistent with ensuring that the water resources of the state 
            be put to beneficial use to the fullest extent of which they 
            are capable.  This is already a requirement for the DWR when 
            it acts as watermaster.  

          6)This measure is almost identical to AB 1580 (La Malfa), 








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            Chapter 416, Statutes of 2007, that established a Watermaster 
            District for Siskiyou County and SB 516 (Aanestad), Chapter 
            434, Statutes of 2007, that established the Shasta-Tehama 
            Watermaster District.  

           7)Support arguments  :  Given the factors that drive significant 
            elements of cost for the state as a service provider, and 
            their own initial budget estimates, the proponents of the bill 
            feel that a local agency would be more cost-effective in the 
            long run than continuing with DWR.

             Opposition arguments  : Opposition could argue that although the 
            cost of having DWR continue as the watermaster may be more 
            expensive for property owners, DWR is best suited for acting 
            as watermaster because of its expertise in ensuring that 
            California water sources are protected and being used for the 
            benefit of all Californians.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Cattlemen's Association �SPONSOR]
          Plumas County Board of Supervisors

           Opposition 
           
          None on file 
           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 
          319-3958