BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 200
                                                                  Page  1


          SENATE THIRD READING
          SB 200 (Wolk)
          As Amended  June 25, 2012
          Majority vote 

           SENATE VOTE  :38 -0  
           
           WATER, PARKS & WILDLIFE     13-0APPROPRIATIONS      17-0        
           
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          |Ayes:|Huffman, Halderman, Bill  |Ayes:|Gatto, Harkey,            |
          |     |Berryhill, Blumenfield,   |     |Blumenfield, Bradford,    |
          |     |Campos, Fong, Beth        |     |Charles Calderon, Campos, |
          |     |Gaines, Gatto, Roger      |     |Davis, Donnelly, Fuentes, |
          |     |Hern�ndez, Hueso, Jones,  |     |Hall, Hill, Cedillo,      |
          |     |Lara, Yamada              |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Extends, until July 1, 2018, the authority of the 
          California Department of Water Resources (DWR) to reimburse up 
          to 75% of the costs in excess of $1,000 per mile that are 
          incurred in any year for Delta levee maintenance.  Requires that 
          reimbursements be consistent with the long-term management plan 
          for the Sacramento-San Joaquin Delta (Delta Plan) adopted and 
          implemented by the Delta Stewardship Council (DSC).

           EXISTING LAW  authorizes DWR, until July 1, 2013, to reimburse up 
          to 75% of the annual Delta levee maintenance costs over $1,000 
          per mile.  After July 1, 2013, the rate reverts to a 50% maximum 
          reimbursement percentage and the maximum total reimbursement 
          from the General Fund is capped at $2 million annually.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, cost pressure potentially in the millions of dollars 
          annually, to fund local projects to maintain and improve levees 
          (General Fund and bond funds).

           COMMENTS  :  In 2010, the Legislature passed and the Governor 
          signed SB 808 (Wolk), Chapter 23, Statutes of 2010, which, among 
          other provisions, extended the 75% Delta subvention rate to July 
          2013.  Part of the justification was that changing the rate was 
          premature, given that DSC had not had sufficient time to 








                                                                  SB 200
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          complete the Delta Plan.  The Delta Plan is currently in its 
          sixth staff draft but has not yet been adopted.  This bill 
          requires that future reimbursements will be made consistent with 
          the Delta Plan, once it is adopted.

          The author points out that the statutory provision increasing 
          the maximum cost share from 50% to 75% is due to expire on July 
          1, 2013, and that because of the dire financial conditions of 
          most local Delta levee agencies, and the important tie to 
          California's drinking water supply and other infrastructure, the 
          75% state cost-share is necessary to continue protecting Delta 
          levees.

          There is no opposition to this bill.



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

                                                                          
                                                       FN: 0004963