BILL ANALYSIS �
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 1578 HEARING: 6/27/12
AUTHOR: Logue FISCAL: Yes
VERSION: 6/13/12 TAX LEVY: No
CONSULTANT: Weinberger
INDIAN VALLEY WATERMASTER DISTRICT
Creates the Indian Valley Watermaster District.
Background and Existing Law
Watermasters carry out water rights decrees, ensuring that
the owners of water rights properly distribute, divert,
store, and use their water. In eight northern counties,
the State Department of Water Resources (DWR) provides
watermaster services, operating in 12 watermaster service
areas. Watermaster service areas recover their costs by
charging annual "apportionments" to the landowners whose
water rights are covered by the decrees.
Historically, the affected landowners paid for half of a
watermaster service area's costs and the state government
paid the rest. The 2004-05 State Budget ended that
cost-sharing, requiring landowners to pay for a watermaster
service area's full costs (SB 1107, Senate Budget and
Fiscal Review Committee, 2004). However, because DWR used
funds from other programs to help offset costs of the
watermaster related activities, the program's full costs
were not passed onto water rights holders. The 2011-12
state budget eliminated the remaining state subsidy,
resulting in dramatic fee increases for some water rights
holders.
In response to the 2004-05 reduction in cost sharing, some
landowners wanted the courts to reassign watermaster duties
to local governments. In 2006, the Legislature authorized
a court to appoint another public agency to assume DWR's
watermaster duties (SB 775, Cox, 2006). The next year, at
the request of water rights holders in three water service
areas, the Legislature created two new special districts to
assume the watermasters' duties in those areas (SB 516,
Aanestad, 2007 and AB 1580, La Malfa, 2007).
AB 1578 -- 6/13/12 -- Page 2
In response to the fee increases that resulted from the
recent loss of state funding for watermaster services,
water rights holders in the Indian Creek Water Service Area
in Plumas County want the same authority to form a new
special district that the 2007 Aanestad and La Malfa bills
granted to landowners in other water service areas.
Proposed Law
Assembly Bill 1578 enacts the Indian Valley Watermaster
District Act, creating the Indian Valley Watermaster
District.
Territory . The District's boundaries cover 53
specified tracts within Plumas County.
Powers . AB 1578 gives the District the power to act
as watermaster over decreed water rights for which the
superior court has appointed the District as watermaster.
The District has the same powers and duties as a DWR
watermaster service area. However, the superior court can
modify the District's powers. The bill also gives the
District the power to adopt ordinances and regulations,
acquire and dispose of property, appoint employees, and
enter contracts. The bill says that the District does not
have eminent domain powers.
Governance . AB 1578 creates a five-member board of
directors to govern the District. By February 1, 2013, the
Plumas County Board of Supervisors must appoint the
District's initial board of directors. The initial board
serves until the first opportunity to hold an election. At
that election, the affected landowners in the Indian Valley
Service Area elect three members. The Plumas County Board
of Supervisors appoints the two other board members who
must be county residents, but not landowners in the Indian
Valley Service Area. The directors classify themselves so
that three directors serve initial terms of four years and
two directors serve initial terms of two years.
Thereafter, the directors serve staggered four-year terms.
The directors may be reimbursed for expenses.
Voting . AB 1578 defines the District's voters as the
owners of water rights whose places of use are parcels
within the District for water rights under appointed
AB 1578 -- 6/13/12 -- Page 3
decrees. Water rights owners who contract with the
District for water-master service for their parcels are
also voters. Every voter has one vote. Otherwise, the
District's elections follow the procedures used by
landowner voting districts under the Uniform District
Election Law.
Finances . AB 1578 allows the District to recover its
costs by charging apportionments to the affected
landowners, following the same procedures as a DWR
watermaster service area.
General . AB 1578 requires the District to comply with
the Brown Act's open meeting requirements, have regular
audits, and file annual financial reports with the State
Controller. The bill also declares that the District is
not subject to the Cortese-Knox-Hertzberg Act.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . Invented in California, special
districts offer landowners and residents a way to pay for
the services they want. Unlike counties and cities that
deliver a wide range of public services over large areas,
special districts offer focused services, delivering just
one or two services to specific geographic areas where the
recipients are willing to pay. With the end of state
subsidies for watermaster services and the resulting
increase in rates, some landowners want the courts to
reassign the watermaster duties to local governments.
Instead, Plumas County's affected landowners want the
Legislature to set up a new special district. By creating
the Indian Valley Watermaster District, AB 1578 gives the
affected landowners more control over their watermasters'
costs.
2. Who governs ? As applied to special districts, the
constitutional doctrines of equal protection and
AB 1578 -- 6/13/12 -- Page 4
one-person-one-vote usually result in governing boards
elected by registered voters. Nevertheless, the courts
have allowed state laws that restrict special districts'
elections to landowners when the districts don't provide
general governmental services. AB 1578 limits
participation in the Indian Valley Watermaster District's
elections to just the affected landowners with decreed
water rights. Those "voters" pick three of the District's
five directors, resulting in a hybrid governing board.
Although this governance scheme may be constitutionally
acceptable, the Committee may wish to consider if it's
politically acceptable.
3. Special need, special act . Most of California's 3,400
special districts operate under one of about 60 "principal
acts." For example, the Community Services District Law
governs all 319 community services districts. But the
Legislature has also created about 120 special act, special
districts, enacting a separate law for each special
district. As created by AB 1578, the Indian Valley
Watermaster District is another special act, special
district. In response to fee increases resulting from
recent state budget changes, additional watermaster service
areas may seek to become special districts in future years.
To eliminate the need to pass special legislation creating
each new watermaster district, legislators may wish to
consider passing a "principle act" allowing any watermaster
service area to form a new district pursuant to
requirements specified in state law.
4. Mandate . The California Constitution requires the
state government to reimburse the costs of new or expanded
state mandated local programs. Legislative Counsel says
that AB 1578 creates a new state mandated local program by
increasing the duties of county and district officials.
Section 2 of the bill disclaims the state's responsibility
for providing reimbursement by citing the district's
authority to charge for the costs of implementing the
bill's provisions.
5. Double-referral . Because AB 1587 creates a new special
district that exercises jurisdiction over water rights, the
Senate Rules Committee double-referred AB 1587, first to
the Senate Natural Resources and Water Committee, which
hears bills related to water policy, and then to the Senate
Governance & Finance Committee, which considers bills that
AB 1578 -- 6/13/12 -- Page 5
affect special districts. On June 12, the bill passed out
of Senate Natural Resources and Water Committee on a 9-0
vote.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Appropriations Committee:17-0
Assembly Floor: 75-0
Support and Opposition (6/21/12)
Support : California Cattlemen's Association; Plumas County
Board of Supervisors.
Opposition : Unknown.