BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2259
          Author:   Ridley-Thomas (D)
          Amended:  7/1/14 in Senate
          Vote:     21


          SENATE JUDICIARY COMMITTEE  :  7-0, 6/24/14
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           ASSEMBLY FLOOR  :  75-0, 4/24/14 - See last page for vote


           SUBJECT  :    Water replenishment:  assessments

           SOURCE  :     Water Replenishment District of Southern California


           DIGEST  :    This bill creates a 180-day statute of limitation for  
          challenging the adoption of a replenishment assessment by a  
          water replenishment district, and specifies that an action  
          challenging the adoption of a replenishment assessment shall be  
          brought as a validation action or as a writ of review, mandate,  
          or prohibition.

           ANALYSIS  :    

          Existing law:

          1.Provides, under the Water Replenishment District Act (Act),  
            provides that a water replenishment district may do any act  
            necessary to replenish the ground water of said district.

          2.Provides that a water replenishment district may take any  
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            action necessary to protect or prevent interference with  
            water, the quality thereof, or water rights of persons or  
            property within the district, as specified, and for the  
            purposes of replenishing the ground water supplies within the  
            district, a district may do any act in order to put to  
            beneficial use any water under its control or management.

          3.Provides that if a water replenishment district board  
            determines that a replenishment assessment is to be levied  
            upon the production of ground water from ground water supplies  
            within the district during the ensuing fiscal year,  
            immediately following the making of that determination the  
            board shall levy a replenishment assessment on the production  
            of ground water from the ground water supplies within the  
            district during the fiscal year commencing on July 1st next,  
            and the replenishment assessment shall be fixed by the board  
            at a uniform rate per acre-foot of ground water so produced.

          4.Provides that notice of the levying of a replenishment  
            assessment shall be given to the operators of all  
            water-producing facilities in the district, and all  
            assessments so levied are due and payable to the district by  
            each producer in quarterly installments, computed based upon  
            the production in acre-feet of ground water so produced from  
            such water-producing facility.

          This bill:

          1.Provides that a judicial action or proceeding to attack,  
            review, set aside, void, or annul a resolution or motion  
            levying a replenishment assessment shall be commenced within  
            180 days following the adoption of the resolution or motion,  
            made on or after January 1, 2015, by the water replenishment  
            district board.

          2.Specifies that an action under the above provision shall be  
            brought as a validation action pursuant to Section 680 et  
            seq., of the Code of Civil Procedure, or as a writ of review,  
            mandate, or prohibition pursuant to Section 1067 et seq., of  
            the Code of Civil Procedure.

           Background
           
          The Act (Wat. Code Sec. 60000 et seq.) provides for the  

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          formation of water replenishment districts and grants certain  
          authority to a water replenishment district relating to the  
          replenishment, protection, and preservation of ground water  
          supplies within that district.  In general, the Act requires the  
          board of directors of a water replenishment district to set  
          water replenishment assessments to purchase replenishment water  
          or to remove contaminants from the ground water supplies of the  
          district, and requires the water replenishment assessment to be  
          fixed at a uniform rate per acre-foot of ground water produced  
          within the district.  Replenishment assessments are assessed  
          against the operators of all water-producing facilities in a  
          water replenishment district.  To date, only one water  
          replenishment district has been formed in California - the Water  
          Replenishment District of Southern California (WRD).

          In recent years, WRD has been involved in litigation with a  
          group of cities within its jurisdiction over whether the WRD,  
          when imposing replenishment assessments, complied with the  
          constitutional requirements established by Proposition 218  
          (1996).  Among other things, Proposition 218 established new  
          procedural requirements for special districts and other local  
          governments to levy assessments and impose new, or increase  
          existing, property-related fees and charges.  To date, these  
          suits have not been resolved.

           Prior Legislation
           
          SB 620 (Wright, Chapter 638, Statutes of 2013) repealed a  
          limitation on the expenditure of a water replenishment  
          district's annual reserve fund for a five-year period, and  
          requires districts to establish budget advisory committees for  
          the purpose of reviewing replenishment assessments and a  
          district's annual operating budget.  The bill also required a  
          court to award reasonable attorney's fees and costs relating to  
          a motion seeking injunctive relief against a defendant operator  
          of a water-producing facility that has not registered with a  
          district or that is delinquent in the payment of a replenishment  
          assessment.

          AB 954 (Calderon, 2011) would have required water replenishment  
          districts to impose water replenishment assessments on the  
          production of ground water from each ground water basin based on  
          the actual cost of replenishing the ground water basin, removing  
          contaminants from the ground water basin, and the administrative  

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          costs of the district.  The bill would have also required  
          replenishment assessments to be charged at a fixed uniform rate.  
           The bill died in the Assembly Committee on Local Government.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  7/2/14)

          Water Replenishment District of Southern California (source)

           ARGUMENTS IN SUPPORT  :    The author writes:

          The Act authorizes a water replenishment district to impose an  
          assessment on the production of ground water for purposes of  
          purchasing or providing water to replenish the ground water  
          basin, remediation of ground water contamination and the cost of  
          capital improvement projects.  The Act authorizes a district to  
          levy a replenishment assessment on the production of ground  
          water from the ground water supplies within the district and  
          requires producers of that ground water to pay the replenishment  
          assessment to the district.

          The Act does not specify a time period for legal challenges to  
          the replenishment assessment.  This bill establishes a 180-day  
          period by which actions challenging the replenishment assessment  
          must be brought; the 180-day period would begin on the date upon  
          which the board made the determination to impose the  
          replenishment assessment.

           ASSEMBLY FLOOR  :  75-0, 4/24/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Grove, Hagman, Hall, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,  
            Patterson, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.  
            P�rez
          NO VOTE RECORDED:  Gray, Harkey, Mansoor, Nazarian, Vacancy

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          AL:e  7/2/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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