Amended in Assembly April 22, 2014

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 amended, 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 begin delete would revise and recast these provisions to conform the act to Article XIII end delete begin delete   end delete begin delete D of the California Constitution. The bill end delete would require the board to make the specified findings and determinations before holding the public hearing and would require the board to begin insert identify water-producing facilities within the district that would be subject to the proposed replenishment assessment and end insert give written notice by mail to begin delete operators end delete begin insert the owners end insert of begin insert those end insert water-producing begin delete facilities within the district that would be subject to the proposed replenishment assessment end delete begin insert facilities end insert , 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 begin delete 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 end delete would authorize an begin delete operator end delete begin insert owner end insert of a water-producing facility to submit a written protest opposing the replenishment assessment and would prohibit the board from imposing begin delete the end delete begin insert a end insert replenishment begin delete assessment end delete begin insert assessment that exceeds the rate of the prior fiscal year, as specified, end insert if a majority protest begin delete exists, as specified end delete begin insert exists end insert . 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 board shall do all of the following:

(a) Declare, by resolution, 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 to be
raised, whether by a water charge, a general assessment, a
replenishment assessment, 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.

(b) Comply with the requirements of Section 60315.

(c) Comply with the requirements of Section 60316.

SEC. 2.  

Section 60306 of the Water Code is amended to read:

60306.  

(a) 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, and after the
board makes the findings and determinations required by Sections
60315 and 60316, the board shall immediately publish a notice
that a public hearing will be held begin delete on the fourth Tuesday of May end delete
for the purpose of considering the board’s determination regarding
whether and to what extent the estimated costs of purchasing
replenishment water, removing contaminants from the groundwater
supplies of the district, or exercising any other power under Section
60224 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, 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.

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

(1) The begin delete proposed end delete begin insert rate of the end insert replenishment assessment begin insert proposed end insert
to be imposed on each begin delete parcel end delete begin insert water-producing facility end insert .

(2) The basis upon which the replenishment assessment begin insert rate end insert
was calculated, as determined by the board pursuant to subdivision
begin delete (f) end delete begin insert (e) end insert .

(3) The reason for the replenishment assessment.

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

begin delete

(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 delete begin delete

(d)

end delete

begin insert (c) end insert  An begin delete operator end delete begin insert owner end insert 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. begin delete 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 delete begin insert Each protest
shall be weighted based on the amount of groundwater produced
from the water-producing facility in the prior water year, as
reported pursuant to Section 60326 or 60326.1, as applicable end insert .

begin delete

(e)

end delete

begin insert (d) end insert  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 begin delete the end delete begin insert a end insert replenishment assessment begin insert that exceeds the rate of
the prior fiscal year if the replenishment assessment for the prior
fiscal year is in compliance with Section 60306.5 end insert . A majority
protest exists if the submitted written protests against the
replenishment assessment represent a majority of the begin delete number of
parcels identified pursuant to this subdivision end delete begin insert total weighted votes,
determined by the total amount of groundwater produced from the
water-producing facility in the prior water year, as reported
pursuant to Section 60326 or 60326.1, as applicable end insert .

begin delete

(f)

end delete

begin insert (e) end insert  The board shall determine the amount of the proposed
replenishment assessment that would be imposed upon the
begin delete operators of end delete water-producing facilities within the district. begin delete 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 delete

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 begin insert by the district end insert to begin delete purchase the
replenishment water, to remove contaminants from the groundwater
supplies of the district, or to exercise any other power under Section
60224 end delete begin insert provide services to the water-producing facilities within
the district, as authorized by this part end insert .

(2) Revenue derived from the replenishment assessment is not
used for any purpose other than begin delete to purchase replenishment water,
to remove contaminants from groundwater supplies of the district,
or to exercise any other power under Section 60224 end delete begin insert the purposes
for which the replenishment assessment was imposed, as authorized
by this part end insert .

(3) The amount of the replenishment assessment imposed upon
a begin delete parcel with a end delete water-producing facility begin delete or any person as an incident
of ownership of a water-producing facility end delete does not exceed the
proportional costs of the service attributable to the water-producing
facility. begin delete 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. end delete

(b) A replenishment assessment shall not be imposed upon a
begin delete person for a service unless that service end delete begin insert water-producing facility
for a service unless that service end insert is actually used by, or immediately
available to, that begin delete person end delete begin insert water-producing facility end insert . Replenishment
assessments based on begin insert the cost of end insert potential or future begin delete use of a service end delete
begin insert services end insert are not permitted.

(c) A replenishment assessment shall not be imposed for general
services that are begin delete 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 end delete begin insert not directly
related to the district’s services to water-producing facilities, as
authorized by this part end insert .

SEC. 4.  

Section 60307 of the Water Code is amended to read:

60307.  

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

SEC. 5.  

Section 60315 of the Water Code is amended to read:

60315.  

No later than the second Tuesday in March, 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 of the changes
in the pressure levels or piezometric heights 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
of the changes in the pressure levels or piezometric heights 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 purchased.

(n) The estimated costs of purchasing, in water years succeeding
the ensuing water year, that portion of the quantity of water that
should be purchased for the replenishment of the groundwater
supplies of the district during the ensuing water year, but that 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 that should be
purchased for the replenishment of the groundwater supplies of
the district during the ensuing water year, but that 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 of removing
contaminants from groundwater supplies or other actions under
Section 60224, 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 the estimated reserve funds on hand at the end
of the current fiscal year exceeds 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 insert and the district has complied with Section 60306 end insert , 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 the following July 1, and the replenishment
assessment shall be fixed by the board at a rate per acre-foot of
groundwater produced begin insert in compliance with Section 60306.5 end insert . The
begin delete 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 delete
part of the assessment levied pursuant to the determination
provided in subdivision (c) of Section 60316, exclusive of any part
of the assessment 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 of the assessment 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.