BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2453
          Author:   Achadjian (R)
          Amended:  7/2/14 in Senate
          Vote:     21


           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 6/18/14
          AYES:  Wolk, Knight, DeSaulnier, Hernandez, Liu, Walters
          NO VOTE RECORDED:  Beall

           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  8-0, 6/24/14
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Lara, Monning,  
            Wolk
          NO VOTE RECORDED:  Jackson

           ASSEMBLY FLOOR  :  50-11, 5/28/14 - See last page for vote


           SUBJECT  :    Paso Robles Basin Water District

           SOURCE  :     Author


           DIGEST  :    This bill authorizes, under the California Water  
          District Law, the governing board structure and powers of the  
          Paso Robles Basin Water District (district) in San Luis Obispo  
          County, with the district's boundaries to be established by the  
          San Luis Obispo County Local Agency Formation Commission.

           ANALYSIS  :    Under existing law, special districts are separate  
          local governments formed to provide limited public services to a  
          geographically designated area.  Most special districts provide  
          a focused governmental service, such as road maintenance, but  
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          some forms of special districts, such as Community Services  
          Districts, can provide a range of services.  Unlike counties,  
          special districts are not confined to serving a contiguous area.  
           Like cities and counties, special districts have the  
          operational authorities to function and provide direct services.  
           Unlike cities and counties, however, special districts  
          typically do not have police powers, or the power to regulate  
          private behavior, but in some instances limited regulatory  
          powers are authorized.

          Special districts are statutorily authorized in two manners.   
          The Legislature has enacted "principal acts," which authorize,  
          typically through local petition and approval by a county Local  
          Agency Formation Commission (LAFCO), residents or local  
          officials to call for the formation of a special district.  The  
          powers and authorities for each special district originate in  
          the principal act under which each district is formed.  There  
          are some 50 different principal acts.

          Occasionally the needs of a community are not adequately  
          addressed under the principal acts, and the Legislature  
          authorizes a special act district, in which the district  
          governing structure, authorities, and financing powers are  
          authorized directly in a special statutory provision.  There are  
          some 125 special act districts in California.

          Existing law authorizes some 20 types of special districts that  
          have statutory authority to provide water or exercise authority  
          over groundwater.  Additionally, more than a dozen special act  
          districts exercise some form of groundwater authority.   
          Groundwater also can be managed under the police powers of local  
          agencies, such as through ordinances.  The California Department  
          of Water Resources reports that 27 counties have adopted  
          groundwater management ordinances.  Additionally, AB 3030  
          (Costa, Chapter 947, Statutes of 1992) established the  
          California Groundwater Management Act, which authorized but did  
          not require local agencies to put in place a groundwater  
          management plan.  SB 1938 (Machado, Chapter 603, Statutes of  
          2002) furthered the goal of groundwater management by requiring  
          a groundwater management plan before local agencies can seek a  
          range of state funding. 

          This bill authorizes, under the California Water District Law,  
          the governing board structure and powers of the district in San  

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          Luis Obispo County, with the district's boundaries to be  
          established by the San Luis Obispo County Local Agency Formation  
          Commission.  The district's formation shall comply with the  
          Cortese-Knox-Hertzberg LAFCO Act of 2000, with specified  
          exceptions, and the district's authority will be subject to  
          LAFCO review.

          This bill establishes the governing and voting structure for the  
          district as follows:

           The governing board of the district must include nine  
            landowner members, six of whom shall be elected by landowners,  
            and three of whom shall be elected by resident-voters.

           Of the six directors elected by landowners, two directors must  
            elected by landowners owning 400 or more acres of land in the  
            district, two directors must be elected by landowners owning  
            between 40 and 399 acres of land in the district, and two  
            directors must be elected by landowners owning less than 40  
            acres of land in the district.

           Landowner-voting is weighted, with each landowner-voter  
            casting one vote for each acre of land owned by the voter  
            within the district.  Candidates for the landowner seats can  
            be drawn from any class of landowner. 

           Specifies the three remaining landowner seats elected by  
            registered voters in the district, with one-voter casting one  
            vote, be elected from among all eligible voters who reside  
            within the district.

          Eligibility for the director seats is limited to landowners who  
          are residents of the districts or who reside within two miles of  
          the district boundary, or within the City of Paso Robles, the  
          Atascadero Mutual Water Company, the Templeton Community  
          Services District, the San Miguel Community Services District,  
          or the San Luis Obispo County Service Area 16.

          The election of the district board is to be carried out  
          according to the terms of the Uniform District Election Law, and  
          shall be treated as a landowner-voter district.  This bill  
          allows voting to be conducted by all mail ballots.

          The bill requires that the participation of landowners in the  

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          election to be carried out as follows:

           If the holder of title is a trust, any trustee of the trust  
            may vote on behalf of the trust;

           If the holder of title is a corporation, the president, vice  
            president, secretary, or other duly designated officer may  
            vote on behalf of the corporation;

           If the holder of title is a limited liability company (LLC),  
            any managing member may vote on behalf of the LLC; and

           Any officer or partner with managerial responsibilities of a  
            legal entity not listed above, inclusive, may vote on behalf  
            of the entity.

          This bill authorizes the Paso Robles Basin Water District to  
          exercise authority under the Groundwater Management component of  
          state water law and declares that the creation of the district  
          shall not modify the powers of the County of San Luis Obispo or  
          the San Luis Obispo County Flood and Water Conservation  
          District.

          This bill allows the local LAFCO, when establishing the  
          district, to also incorporate any powers and authorities granted  
          to the Fox Canyon Groundwater Management Agency Act that the  
          LAFCO deems appropriate.

           Comments

           This bill establishes the governance structure for a new water  
          district charged with managing the Paso Robles Groundwater Basin  
          and ensuring reliable and equitable access to water that is  
          essential to the residents and communities of the region.  The  
          unique governance structure of this bill brings together  
          landowners and residents, with balanced representation, to  
          manage the often contentious challenges surrounding water.  The  
          governance structure established in this bill results from  
          months of community deliberations and compromise, and represents  
          the best approach to building the community confidence needed to  
          manage the region's groundwater that is the primary - and often  
          the only - water source for area residents, farms and  
          businesses.  This bill is uniquely tailored to the needs of the  
          region. 

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

           SUPPORT  :   (Verified  7/2/14)

          California Association of Winegrape Growers
          City of El Paso de Robles
          Family Winemakers of California
          Mesa Vinyard Management Inc.
          Paso Robles Agricultural Alliance for Groundwater Solutions
          Paso Robles Groundwater Basin Blue Ribbon Commission
          Pro Water Equity, Inc.
          Road Runner Farm
          San Luis Obispo County Board of Supervisors
          San Luis Obispo County Supervisor, Frank. R. Mecham
          Vino Farms, LLC
          Wine Institute

           OPPOSITION  :    (Verified  7/2/14)

          California Coastal Protection Network
          California Labor Federation
          California Rural Legal Assistance Foundation
          California Teamsters Public Affairs Council
          California Water Impact Network
          Center for biological diversity
          Clean Water Action California
          Community Water Center
          Defenders of Wildlife
          Desal Response Group
          Food & Water Watch
          Moonrise Ranch
          North Country Water
          Planning and Conservation League
          San Luis Obispo County Cattlemen's Association
          San Luis Obispo County Supervisor, Debbie Arnold
          Sierra Club California
          Southern California Watershed Alliance
          United Farm Workers

           ARGUMENTS IN SUPPORT  :    According to the Paso Robles  
          Agricultural Alliance for Groundwater Solutions (PRAAGS) and the  
          California Association of Winegrape Growers (CAWG), "the latest  

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          update to the county's Paso Robles Groundwater Basin Model  
          indicates groundwater has been in decline for a number of years.  
           A conventional California Water District model, among others,  
          was considered and found not to meet the diverse needs of the  
          various local interests."

          AB 2453 proposes to create a unique governing structure for the  
          Paso Robles Basin Water District should it be established by the  
          San Luis Obispo County Local Agency Formation Commission.  The  
          governance structure proposed in the measure is a nine-member  
          board of directors, comprised of three at-large members elected  
          by registered voters in the district and six members elected on  
          the basis of acreage - two each from small, medium, and large  
          landowners, respectively.

           ARGUMENTS IN OPPOSITION  :    A coalition of environmental  
          organizations argue, while we support local management of  
          groundwater supply, the candidate qualification and voting  
          process to form and determine Paso Robles Basin Water District  
          directors proposed in AB 2453 are unfair to local residents who  
          do not own large acreage of land.  As written, AB 2453  
          incorporates an acreage-based voting model to form and elect six  
          out of the nine water district directors and requires that those  
          running for the position of director be landowners themselves.   
          There would be nine directors elected to the board: two elected  
          by large landowners, two elected by medium landowners, two  
          elected by small landowners, and three members at large elected  
          by all registered voters.  The vote to decide whether or not to  
          form this type of water district is strictly acreage-based.   
          This type of voting system and landownership requirements for  
          water district directors will send a signal to local residents  
          that their votes and opinions do not have the same weight as  
          their neighbors who own land or more land.  We would like to see  
          a system where residents are treated equally regardless of the  
          amount of lands owned.  This could be done by putting in place a  
          one-voter-one-vote system and removing the landownership  
          requirement for eligibility to be a director.

           ASSEMBLY FLOOR  :  50-11, 5/28/14
          AYES:  Achadjian, Alejo, Allen, Bigelow, Bocanegra, Bradford,  
            Ian Calderon, Ch�vez, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Frazier, Beth  
            Gaines, Garcia, Gatto, Gordon, Gorell, Gray, Grove, Hagman,  
            Hall, Harkey, Holden, Jones, Jones-Sawyer, Linder, Logue,  

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            Maienschein, Mansoor, Melendez, Muratsuchi, Nazarian,  
            Nestande, Olsen, Patterson, Perea, Quirk, Quirk-Silva,  
            Ridley-Thomas, Salas, Wagner, Waldron, Wilk, Atkins
          NOES:  Ammiano, Fox, Gomez, Gonzalez, Roger Hern�ndez, Levine,  
            Medina, V. Manuel P�rez, Skinner, Stone, Williams
          NO VOTE RECORDED:  Bloom, Bonilla, Bonta, Brown, Buchanan,  
            Campos, Chau, Fong, Lowenthal, Mullin, Pan, John A. P�rez,  
            Rendon, Rodriguez, Ting, Weber, Wieckowski, Yamada, Vacancy


          AB:e  7/2/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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