BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 1578                   HEARING DATE: June 12, 2012
          AUTHOR: Logue                      URGENCY: No
          VERSION: 4/17/12                   CONSULTANT: Dennis O'Connor
          DUAL REFERRAL: Governance and FinanceFISCAL: Yes
          SUBJECT: Indian Valley Watermaster District
          
          BACKGROUND AND EXISTING LAW
          The State established the Watermaster Program in 1924.   The 
          main purpose of the program is to ensure that an unbiased and 
          qualified person allocates water according to established water 
          rights and water rights laws.  Watermaster service areas are 
          created by the Department of Water Resources (DWR) either at the 
          request of water users or by order of the Superior Court. 

          The first watermaster service area (WSA) was formed in September 
          1929.  Each WSA corresponds to a distinct set of rivers and 
          streams.  DWR currently provides watermaster services in 12 WSAs 
          in Northern California.

          In its role as Watermaster, DWR exercises powers and 
          responsibilities assigned to the department specifically by Part 
          4 "Distribution Of Water In Watermaster Service Areas" in 
          Division 2, of the Water Code, as well as powers and 
          responsibilities broadly assigned to the department by the Water 
          Code, such as Section 275's requirement that DWR take all 
          appropriate actions to prevent waste unreasonable use, 
          unreasonable method of use, or unreasonable method of diversion 
          of water. 

          One of the WSAs is the Indian Creek WSA in Plumas County.  The 
          water rights were initially determined by decree of the Plumas 
          County Superior Court in 1950.

          PROPOSED LAW
          This bill would create the Indian Valley Water Master District.  
          Specifically, the bill would:
           Establish the boundaries of the district.
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           Establish a five member board of directors to govern the 
            district.
           Establish that the district would be deemed a landowner voting 
            district, except that each voter would have one vote.
           Provide that the district would serve as watermaster of any 
            appointed decree.
           Provide that the district, in its duties as watermaster, have 
            the powers and duties set forth in Part 4 "Distribution Of 
            Water In Watermaster Service Areas" in Division 2, of the 
            Water Code, except that all references to DWR in that Part 
            would be deemed references to the district, and all references 
            to the Water Resources Revolving Fund would be deemed 
            references to the district's fund.
           Require charges levied by the district to comply with Article 
            XIIID of the Constitution.
           State that the decree complies with Section 100 of the Water 
            Code.  Would further require the actions of the district and 
            watermaster to be consistent with the intent of the decree.

          ARGUMENTS IN SUPPORT
          According to the author, "In 2011, the Legislature eliminated 
          all General fund support for state watermaster services, forcing 
          the DWR to dramatically increase fees on residents throughout 
          California.  In Indian Valley alone, fees are now five times 
          higher than in 2010.  The purpose of this bill is to transfer 
          responsibility for watermaster services from the DWR to the 
          residents of Indian Valley, allowing them to more efficiently 
          control their services at the local level.  The bill would 
          provide for a self-sustaining watermaster district based on fees 
          paid."

          ARGUMENTS IN OPPOSITION: None Received

          COMMENTS 
           Similar To Previous Actions.   The operative provisions of this 
          bill is virtually the same as AB 1580 (LaMalfa, 2007) and SB 516 
          (Aanestad, 2007), which created the Scott Valley and Shasta 
          Valley Watermaster District Act and the Shasta-Tehema County 
          Watermaster District Act, respectively.

           Other Duties.   The Assembly Local Government Committee analysis 
          of the March 29, 2012 version of this bill observed "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 
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          as watermaster."

          As staff notes above in Background And Existing Law, DWR does 
          indeed exercise a variety of powers and responsibilities not 
          specifically enumerated in Part 4 of Division 2 of the Water 
          Code.  Unfortunately, the amendments taken in the Assembly Local 
          Government Committee suggest that the decree itself addresses 
          some of these responsibilities, when, in fact, the decree is 
          silent on such continuing oversight responsibilities. (See 
          Suggested Amendments)

           Dual Referred to Governance and Finance.   That committee will 
          more fully address the governance structure and financing issues 
          of the proposed district.

          SUGGESTED AMENDMENTS 

               AMENDMENT 1:  On page 20, lines 23 and 24, delete "have the 
               powers and duties that are set forth as powers and duties 
               of the department" and insert:

               assume all powers and duties previously assigned to the 
               department in its role as watermaster.  These powers and 
               duties include, but are not limited to, those set forth

               AMENDMENT 2:  On page 20, delete lines 33 through 35 
               inclusive

          SUPPORT
          California Cattlemen's Association
          Plumas County Board of Supervisors

          OPPOSITION
          None Received













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