California Legislature—2013–14 Regular Session

Assembly Bill No. 2189

Introduced by Assembly Member Garcia

February 20, 2014

An act to amend Sections 60305, 60306, 60307, 60315, and 60317 of, and to add Section 60306.5 to, the Water Code, relating to water replenishment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2189, as introduced, Garcia. Water replenishment districts: replenishment assessment.

Article XIII D of the California Constitution generally requires that assessments, fees, and charges be submitted to property owners for approval or rejection after the provision of written notice and the holding of a public hearing. Existing law, the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local jurisdictions to comply with Article XIII D of the California Constitution. Existing law provides notice, protest, and hearing procedures for the levying of new or increased fees and charges by local government agencies pursuant to Article XIII D of the California Constitution.

Existing law, the Water Replenishment District Act, provides for the formation of water replenishment districts and grants authority to a water replenishment district relating to the replenishment, protection, and preservation of groundwater supplies within that district. The act requires the governing board of each district to follow specified procedural processes when determining whether to assess, and the amount of, a replenishment assessment. The act requires the board to hold a public hearing to determine whether and to what extent a replenishment assessment should be levied and for the board to provide public notice of the hearing in each affected county, as specified. The act requires the board, after completing the hearing, to make certain findings and determinations. If the board determines that a replenishment assessment should be levied upon the production of groundwater from groundwater supplies, the act requires the board to fix the replenishment assessment at a uniform rate per acre-foot of groundwater produced.

This bill would revise and recast these provisions to conform the act to Article XIII D of the California Constitution. The bill would require the board to make the specified findings and determinations before holding the public hearing and would require the board to give written notice by mail to operators of water-producing facilities within the district that would be subject to the proposed replenishment assessment, as specified. By requiring the board to make the specified findings and determinations at an earlier date, this bill would increase the duties of local officials and would impose a state-mandated local program. The bill would require the replenishment assessment be based upon the proportion of the costs actually incurred by the assessed operator of a water-producing facility. The bill would authorize an operator of a water-producing facility to submit a written protest opposing the replenishment assessment and would prohibit the board from imposing the replenishment assessment if a majority protest exists, as specified. The bill would prohibit a replenishment assessment from being extended, imposed, or increased under certain conditions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 60305 of the Water Code is amended to
read:

60305.  

On or before the second Tuesday in March of each year,
and provided the survey and report called for by Section 60300
has been made, the begin delete board, by resolution, shall declare end delete begin insert board shall
do all of the following: end insert

begin insert (a) end insert begin insert   end insert begin insert Declare, by resolution, end insert whether funds shall be raised to
purchase water for replenishment during the next ensuing fiscal
year and whether the funds shall be raised either by (a) a water
charge, as provided in Chapter 2 (commencing with Section 60245)
of Part 5, (b) a general assessment, as provided in Chapter 3
(commencing with Section 60250) of Part 5, (c) a replenishment
assessment as provided in this chapter, or (d) a combination of
any two or more of the foregoing, and whether the funds begin delete so end delete to be
raised, whether by a water charge, a general assessment, a
replenishment begin delete assessment end delete begin insert assessment, end insert or a combination of those
means, will benefit, directly or indirectly, all of the persons or real
property and improvements within the district. The resolution shall
also declare whether funds shall be raised to remove contaminants
from groundwater supplies during the next ensuing fiscal year or
to exercise any other power under Section 60224, and whether
funds for that purpose shall be raised by a replenishment
assessment as provided in this chapter, with a like statement of
benefit.

begin insert

(b) Comply with the requirements of Section 60315.

end insert begin insert

(c) Comply with the requirements of Section 60316.

end insert

SEC. 2.  

Section 60306 of the Water Code is amended to read:

60306.  

begin insert (a) end insert begin insert   end insert If the board, by resolution, determines that all or
a portion of the funds needed to purchase replenishment water, or
to remove contaminants from the groundwater supplies of the
district, or to exercise any other power under Section 60224, shall
be raised by the levy of a replenishment assessment, begin delete then end delete begin insert and after
the board makes the findings and determinations required by
Sections 60315 and 60316, end insert the board shall immediately publish a
notice that a public hearing will be held on the begin delete second Tuesday of
April end delete begin insert fourth Tuesday of May end insert for the purpose of begin delete determining end delete
begin insert considering the board’s determination regarding end insert whether and to
what extent the estimated costs begin delete thereof end delete begin insert of purchasing replenishment
water, removing contaminants from the groundwater supplies of
the district, or exercising any other power under Section 60224 end insert
for the ensuing year shall be paid for by a replenishment
assessment. The notice shall contain a copy of the board’s
resolution, the time and place of the hearing, begin delete and end delete an invitation to
all interested parties to attend and be heard in support of or
opposition to the proposed assessment, the engineering survey and
report, and the board’s determination, and shall invite inspection
of the engineering survey and report upon which the board acted.
The notice shall be published in each affected county pursuant to
Section 6061 of the Government Code, at least 10 days before the
hearing date.

begin insert

(b) In addition to the notice requirements of subdivision (a), the
board shall identify, and give written notice by mail to, operators
of water-producing facilities within the district that would be
subject to the proposed replenishment assessment. The notice shall
be provided at least 45 calendar days before the date of the hearing
and shall include all of the following:

end insert begin insert

(1) The proposed replenishment assessment to be imposed on
each parcel.

end insert begin insert

(2) The basis upon which the replenishment assessment was
calculated, as determined by the board pursuant to subdivision
(f).

end insert begin insert

(3) The reason for the replenishment assessment.

end insert begin insert

(4) The date, time, and location of the public hearing required
pursuant to this section.

end insert begin insert

(c) To fulfill the requirements of subdivision (b), the board may
send a general notice to all operators of water-producing facilities
that would be subject to the proposed replenishment assessment
and may include on the general notice the different applicable
rates that apply to different areas of the district.

end insert begin insert

(d) An operator of a water-producing facility that would be
subject to the proposed water replenishment assessment may submit
a written protest to the board opposing the proposed replenishment
assessment. An operator of a water-producing facility that would
be subject to the proposed replenishment assessment may submit
one written protest for each parcel with a water-producing facility
under the operator’s control that would be subject to the proposed
replenishment assessment.

end insert begin insert

(e) At the conclusion of the public hearing, the board shall
consider all written protests against the proposed replenishment
assessment and if a majority protest exists, the board shall not
impose the replenishment assessment. A majority protest exists if
the submitted written protests against the replenishment assessment
represent a majority of the number of parcels identified pursuant
to this subdivision.

end insert begin insert

(f) The board shall determine the amount of the proposed
replenishment assessment that would be imposed upon the
operators of water-producing facilities within the district. The
assessment shall be based upon the proportion of the costs actually
incurred by the assessed operator and may vary depending on the
location of the parcel.

end insert

SEC. 3.  

Section 60306.5 is added to the Water Code, to read:

60306.5.  

(a) A replenishment assessment shall not be extended,
imposed, or increased unless all of the following are met:

(1) Revenue derived from the replenishment assessment does
not exceed the funds required to purchase the replenishment water,
to remove contaminants from the groundwater supplies of the
district, or to exercise any other power under Section 60224.

(2) Revenue derived from the replenishment assessment is not
used for any purpose other than to purchase replenishment water,
to remove contaminants from groundwater supplies of the district,
or to exercise any other power under Section 60224.

(3) The amount of the replenishment assessment imposed upon
a parcel with a water-producing facility or any person as an incident
of ownership of a water-producing facility does not exceed the
proportional costs of the service attributable to the water-producing
facility. The proportional cost of the service attributable to the
water-producing facility shall be determined either based on the
basin the parcel with the water-producing facility overlies or by
zones of benefit determined by the board.

(b) A replenishment assessment shall not be imposed upon a
person for a service unless that service is actually used by, or
immediately available to, that person. Replenishment assessments
based on potential or future use of a service are not permitted.

(c) A replenishment assessment shall not be imposed for general
services that are provided to the public, including, but not limited
to, conservation and gardening programs, if the service is available
to the general public in substantially the same manner as it is
available to the operator of a water-producing facility.

SEC. 4.  

Section 60307 of the Water Code is amended to read:

60307.  

begin delete Said hearing end delete begin insert The public hearing required pursuant to
this chapter end insert shall be held before the board and a quorum shall be
present. The hearing may be adjourned from time to time by the
begin delete president or end delete begin insert president, end insert presiding begin delete officer end delete begin insert officer, end insert or hearing officer
but shall be completed by the begin delete first end delete begin insert second end insert Tuesday begin delete in May next end delete begin insert of
the end insert following begin insert June end insert .

SEC. 5.  

Section 60315 of the Water Code is amended to read:

60315.  

begin delete Upon completing the hearing, but no end delete begin insert No end insert later than the
second Tuesday in begin delete May end delete begin insert March end insert , the board shall, by resolution, find
all of the following:

(a) The annual overdraft for the preceding water year.

(b) The estimated annual overdraft for the current water year.

(c) The estimated annual overdraft for the ensuing water year.

(d) The accumulated overdraft as of the last day of the preceding
water year.

(e) The estimated accumulated overdraft as of the last day of
the current water year.

(f) The total production of groundwater from the groundwater
supplies within the district during the preceding water year.

(g) The estimated total production of groundwater from the
groundwater supplies within the district for the current water year.

(h) The estimated total production of groundwater from the
groundwater supplies within the district for the ensuing water year.

(i) The changes during the preceding water year in the pressure
levels or piezometric heights of the groundwater contained within
pressure-level areas of the district, and the effects begin delete thereof end delete begin insert of the
changes in the pressure levels or piezometric heights end insert upon the
groundwater supplies within the district.

(j) The estimated changes during the current water year in the
pressure levels or piezometric heights of the groundwater contained
within pressure-level areas of the district, and the estimated effects
begin delete thereof end delete begin insert of the changes in the pressure levels or piezometric heights end insert
upon the groundwater supplies within the district.

(k) The quantity of water that should be purchased for the
replenishment of the groundwater supplies of the district during
the ensuing water year.

(l) The source and estimated cost of water available for the
replenishment.

(m) The estimated costs of replenishing the groundwater supplies
with the water begin delete so end delete purchased.

(n) The estimated costs of purchasing, in water years succeeding
the ensuing water year, that portion of the quantity of water begin delete which end delete
begin insert that end insert should be purchased for the replenishment of the groundwater
supplies of the district during the ensuing water year, but begin delete which end delete
begin insert that end insert is estimated to be unavailable for purchase during the ensuing
water year; estimated costs shall be based on the estimated price
of water for replenishment purposes during the ensuing water year.

(o) The estimated rate of the replenishment assessment required
to be levied upon the production of groundwater from the
groundwater supplies within the district during the ensuing fiscal
year for the purposes of accomplishing the replenishment and
providing a reserve fund to purchase in future years, when
available, that portion of the quantity of water begin delete which end delete begin insert that end insert should
be purchased for the replenishment of the groundwater supplies
of the district during the ensuing water year, but begin delete which end delete begin insert that end insert is
estimated to be unavailable for purchase during that ensuing water
year.

(p) Whether any contaminants should be removed from
groundwater supplies during the ensuing fiscal year, and whether
any other actions under Section 60224 should be undertaken during
the ensuing fiscal year, the estimated costs begin delete thereof end delete begin insert of removing
contaminants from groundwater supplies or other actions under
Section 60224 end insert , and the estimated additional rate of replenishment
assessment required to be levied upon the production of
groundwater from the groundwater supplies within the district
during the ensuing fiscal year for those purposes.

(q) Whether any program for removal of contaminants or other
actions under Section 60224 should be a multiyear program or is
a continuation of a previously authorized multiyear program.

(r) The amount begin delete , if any, by which end delete the estimated reserve funds
on hand at the end of the current fiscal year begin delete will exceed end delete begin insert exceeds end insert
the annual reserve fund limit determined pursuant to Section 60290.

SEC. 6.  

Section 60317 of the Water Code is amended to read:

60317.  

If the board determines that a replenishment assessment
shall be levied upon the production of groundwater from
groundwater supplies within the district during the ensuing fiscal
year, begin delete immediately end delete following the making of that determination the
board shall levy a replenishment assessment on the production of
groundwater from the groundwater supplies within the district
during the fiscal year commencing on begin delete July 1st next end delete begin insert the following
July 1 end insert , and the replenishment assessment shall be fixed by the
board at a begin delete uniform end delete rate per acre-foot of groundwater begin delete so end delete produced.
The begin delete producers of that groundwater shall pay the replenishment
assessment to the district at the times and in the manner provided
in this division. That end delete begin insert replenishment assessment shall be imposed
upon each parcel with a water-producing facility within the district
and shall be paid by the operator of the water-producing facility
pursuant to the provisions of Chapter 4 (commencing with Section
60325). The end insert part of the assessment levied pursuant to the
determination provided in subdivision (c) of Section 60316,
exclusive of any part begin delete thereof end delete begin insert of the assessment end insert for district
administrative and overhead expenses, shall not exceed 50 percent
of the average assessment levied for the current and four preceding
fiscal years pursuant to determinations under subdivisions (a) and
(b) of Section 60316, exclusive of any part begin delete thereof end delete begin insert of the
assessment end insert for district administrative and overhead expenses.

SEC. 7.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.