BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2453
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2453 (Achadjian)
          As Amended  August 4, 2014
          Majority vote
           
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          |ASSEMBLY:  |50-11|(May 28, 2014)  |SENATE: |30-3 |(August 13,    |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  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.

           The Senate amendments  :  

          1)Specify that the process for the formation of the District  
            shall comply with the Cortese-Knox-Hertzberg Local Government  
            Reorganization Act of 2000, with the exception of the  
            following provisions:

             a)   On or before January 1, 2019, 10% of landowners may  
               petition for, or an affected local agency within the  
               county, including the county and the San Luis Obispo County  
               Flood Control and Water Conservation District, may apply  
               for by resolution, the formation of a District, consistent  
               with the following definitions:

               i)     "Landowner" means any person who holds title to land  
                 within the boundaries of the proposed District as shown  
                 on the last assessment roll prepared by the county  
                 assessor, or a legal representative of a landowner who  
                 holds title to land within the boundaries of the proposed  
                 District as shown on the last assessment roll prepared by  
                 the county assessor.

               ii)    "Landowner" does not include individuals,  
                 partnerships, corporations, or public agencies holding  
                 easements or less than fee interests, including  
                 leaseholds of any nature.









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               iii)   "Legal representative" means either of the  
                 following:

                  (1)       A duly appointed and acting guardian,  
                    executor, or administrator of the estate of a holder  
                    of title to land.

                  (2)       One of the following:

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

                    (b)         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;

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

                    (d)         An officer or partner with managerial  
                      responsibilities of a legal entity not listed in  
                      clauses i) to iii), inclusive, may vote on behalf of  
                      the entity.

             b)   Specify, following a successful petition by the  
               landowners or a resolution of application by an affected  
               local agency, that an election among landowners shall be  
               conducted on the matter of whether to form the District.

             c)   Specify, for purposes of  a petition to form the  
               District and a vote on the matter to form the District, the  
               following applies:

               i)     Each voter, who shall be a landowner, may cast one  
                 vote on the matter of a petition and one vote on the  
                 matter of an election to form the District.  Ownership of  
                 multiple parcels of land, in full or in part, shall not  
                 entitle any voter to more than one vote;

               ii)    For land held jointly, owners collectively get one  
                 vote.  Nothing in this section should be construed to  
                 indicate that multiple owners of a property get more than  








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                 one vote;

               iii)   In the event any landowner that is a member of the  
                 same commonly controlled group, as defined, or is a  
                 member of a combined reporting group, as defined, or  
                 under common ownership with, another landowner in the  
                 District, all members of the commonly controlled group or  
                 combined reporting group will be deemed a single  
                 landowner;

               iv)    Each public agency that holds title to land within  
                 the District shall be entitled to one vote;

               v)     No person shall vote by proxy unless his or her  
                 authority to cast that vote is evidenced by an instrument  
                 acknowledged and filed with the board of election;

               vi)    If from the election returns a majority of the votes  
                 cast at the election were in favor of the formation of  
                 the District, the formation of the District shall be  
                 complete; and,

               vii)   Recognizing that an election is needed to form the  
                 Paso Robles Basin Water District, the protest provisions  
                 of the Cortese-Knox-Hertzberg Act as they pertain to the  
                 formation of a district, do not apply.

          2)Require, if formed, the Board of Directors (Board) of the  
            District to provide by resolution the dates on which and the  
            time and place at which regular meetings of the Board shall be  
            held.  A copy of each resolution establishing the date, time,  
            and place of a regular meeting shall be filed with the  
            secretary of the Board and the clerk, or secretary of the  
            legislative body of each of the members.  

          3)Require the Board to comply with the provisions of the Ralph  
            M. Brown Act.

          4)Specify the composition of the Board of the District as  
            follows:

             a)   There shall be a total of nine directors.  A person may  
               only be a candidate for one director.

             b)   Six of the directors shall be qualified for office by  








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               being persons who hold title to land within the District or  
               persons authorized to vote in elections by landowners, as  
               specified.  Each director shall be elected by landowners  
               within the District, as provided, except that each voter  
               shall be entitled to cast one vote for each acre owned by  
               the voter within the District.  If the voter owns less than  
               one acre, the voter shall be entitled to one vote and any  
               fraction shall be rounded to the nearest full acre.

               i)     For purposes of election of the six directors,  
                 landowners within the district shall be divided into  
                 three classes as follows:

                  (1)       "Large landowners" meaning holders of title  
                    owning a total of 400 acres or more;

                  (2)       "Medium landowners" meaning holders of title  
                    owning a total of 40 acres or more but less than 400  
                    acres; and,

                  (3)       "Small landowners" meaning holders of title  
                    owning a total of less than 40 acres of land.

               ii)    Large landowners shall elect two directors, medium  
                 landowners shall elect two directors, and small  
                 landowners shall elect two directors.

               iii)   Candidates for the six directors may be within any  
                 landowner class, and shall reside within the District,  
                 within two miles of the District boundary, or within the  
                 boundaries of 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.

             c)   Three of the directors shall be elected by registered  
               voters within the District at large, and shall be  
               registered voters residing within the District.

          5)Require District elections to be conducted in conformance with  
            the Uniform District Election Law, as specified, and the laws  
            generally applicable to districts created and operated  
            pursuant to California Water District Law, provided the  
            following shall apply:









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             a)   Separate ballots shall be prepared and separate  
               elections shall be conducted for those director positions  
               which will be elected by resident voters and for those  
               which will be elected by landowner voters.  Landowner voter  
               elections and resident voter elections shall be conducted  
               simultaneously.

             b)   District elections shall be conducted by all-mailed  
               ballots, as specified.  Separate voter lists of resident  
               voters and landowner voters eligible to vote within the  
               District shall be prepared and maintained, as specified.   
               Separate all-mailed ballot elections shall be held for the  
               directors to be elected by resident voters and for those to  
               be elected by landowner voters.

             c)   The directors elected upon formation of the District  
               shall hold office pursuant to Elections Code Section 10505.  
                The director positions elected by large landowners shall  
               be divided into two director term classes, the directors  
               elected by medium landowners shall be divided into two  
               director term classes, the directors elected by small  
               landowners shall be divided into two director term classes,  
               and the directors elected by registered voters shall be  
               divided into two director term classes.

             d)   Elections of directors shall be held on the first  
               Tuesday after the first Monday in October of each  
               odd-numbered year.

             e)   The voters list used for the purpose of an election of  
               directors shall be based upon the last assessment roll  
               prepared by the county assessor, which shall be conclusive  
               evidence of ownership and the acreage for purposes of  
               electing directors, as specified.  The voters list shall be  
               amended if satisfactory evidence of a change in ownership  
               is presented at least 45 days prior to the election to the  
               elections official in the case of the formation election,  
               and thereafter to the District secretary.  The county  
               assessor shall be reimbursed by the District for all costs  
               incurred in determining the ownership and acreage  
               information and providing the information to the county  
               clerk.

             f)   For purposes of the Uniform District Election Law, the  
               District is a landowner voting district.








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          6)Specify, for the purposes of election participation by  
            landowners, that the definitions contained in 1a) above, shall  
            apply.

          7)Provide that all powers of the District specified in the bill  
            are subject to review and approval by the San Luis Obispo  
            County Local Agency Formation Commission (San Luis Obispo  
            LAFCO), upon formation, change or organization, or  
            reorganization under the Cortese-Knox-Hertzberg Act.

          8)Allow the Board to adopt ordinances for the purpose of  
            regulating, conserving, managing, and controlling the use and  
            extraction of groundwater within the territory of the  
            District.  All ordinances shall be adopted, after noticed  
            public hearings by a majority vote of the Board.  Notice of  
            the adoption of all ordinances shall be given.  The ordinances  
            of the District shall become effective on the 31st day after  
            adoption except that the Board may, by the vote of at least  
            four members of the Board, dispense with notice of public  
            hearing and adopt an emergency ordinance that shall become  
            effective immediately upon adoption, if the Board determines  
            that the public health, safety, or welfare so requires.

          9)Specify penalties for violation of the act or any District  
            ordinance, and specify penalties for civil liability for  
            negligently or intentionally violating any provision of the  
            act or any District ordinance.

          10)Allow the District to do the following:

             a)   Allow the District to petition the Superior Court for a  
               temporary restraining order, preliminary or permanent  
               injunction, or equitable relief as may be appropriate, as  
               specified, for the failure of any person to comply with any  
               provision of the act or any District ordinance.  Allow the  
               District to petition the Superior Court of the county to  
               recover any sums due the District, as specified.  Allow the  
               District to commence, maintain, intervene in, defend,  
               compromise, and assume the costs and expenses of legal  
               actions and administrative proceedings involving  
               groundwater, including, but not limited to, groundwater  
               rights adjudication.

             b)   Allow the District to contract with the County, the San  








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               Luis Obispo County Flood Control and Water Conservation  
               District, or other local district for staff and other  
               services and may hire other contractors and consultants as  
               it considers appropriate.

             c)   Allow the District to collect data and conduct technical  
               and other investigations deemed necessary in order to carry  
               out the provisions of the act, as specified.

             d)   Allow the District to prepare annually or receive  
               reports on groundwater and supplemental water supplies and  
               conditions in the territory of the District, including  
               groundwater management and conjunctive use objectives and a  
               plan for implementation of those objectives.

             e)   Allow the District to recommend and encourage wastewater  
               reuse and other water development projects, if those  
               projects will enhance and contribute to the responsible  
               management of groundwater resources, as part of its annual  
               plan for implementation of groundwater management  
               objectives.

             f)   Allow the District to have the authority afforded to  
               local agencies as specified in the Water Code related to  
               Groundwater Management Plans (AB 3030 (Costa), Chapter 708,  
               Statutes of 1992).

          11)Provide, in order to balance the water supply and demand  
            within the Paso Robles Groundwater Basin (Basin), that the  
            District may develop, adopt, and implement a groundwater  
            management plan to control extractions from the Basin aquifers  
            with the objective of balancing water supply and demand in the  
            region, as specified.

          12)Allow, if the Board determines, after noticed public hearing,  
            and consideration of any relevant investigations, studies, and  
            evidence, that groundwater management activities are necessary  
            in order to improve or protect the quantity or quality of  
            groundwater supplies within a groundwater basin or aquifer,  
            the board may, by ordinance, exercise any of the following  
            powers:

             a)   Require conservation practices, as specified;

             b)   Control groundwater extractions, as specified;








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             c)   Commence and prosecute legal actions to enjoin  
               unreasonable uses of methods of use of water within the  
               District or outside the territory of the District, as  
               specified;

             d)   Impose spacing requirements on new extraction facility  
               construction, as specified;

             e)   Impose reasonable operating regulations on extraction  
               facilities to minimize well interference, as specified;

             f)   Require extraction facilities to be registered with the  
               District, as specified;

             g)   Require that the operator of a registered extraction  
               facility provide the District annually with specified  
               information; and,

             h)   Require extraction facilities to be equipped with  
               waterflow measuring devices installed and calibrated by the  
               District or, at the District's option, by the extraction  
               facility operator.

          13)Specify provisions related to how the waterflow measuring  
            device can be used by the District.

          14)Allow the District, by ordinance, to establish reasonable  
            methods to be sued in computing the amount of water extracted  
            by extraction facilities.

          15)Allow the District, by ordinance, to require the operator of  
            each extraction facility to file semiannually, or more  
            frequently, with the District, a groundwater extraction  
            statement that contains specified information.

          16)Allow the District, by ordinance to levy groundwater  
            extraction charges, as specified, and use those moneys to  
            carry out its groundwater management functions.

          17)State that the Legislature finds and declares the following:

             a)   Extraction allocations and extraction surcharges are  
               necessary to eliminate overdraft caused by excess  
               extractions from the aquifer systems within the District  








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               and to bring the groundwater basins underlying the  
               territory to safe yield within 10 years of the formation of  
               the District and to sustain that safe yield thereafter.

             b)   The extraction surcharges are intended to discourage the  
               use of groundwater beyond the extraction allocation.  There  
               are not intended to generate tax revenues or proceeds from  
               regulatory licenses, user surcharges, or user fees.   
               Consequently, they are not special taxes for purposes of  
               California Constitution Article XIII A, Section 4, or  
               proceeds of taxes for purposes of California Constitution  
               Article XIII B, Section 8.

          18)Specify the maximum amount of the extraction surcharge shall  
            be $200 per acre-foot of groundwater extracted in excess of  
            the extraction allocation, as specified.

          19)Provide that the District shall charge and collect a late  
            penalty at the rate of 1.5% each month, or portion thereof, on  
            the delinquent amount of the extraction surcharge, if an  
            operator of a groundwater extraction facility fails to pay the  
            extraction surcharge when due.

          20)Allow the District to bring a cause of action, in any court  
            having jurisdiction, against an operator of a groundwater  
            extraction facility for the collection of a delinquent  
            extraction surcharge, as specified.

          21)Allow, in addition to any other authority, the District to  
            order an extraction surcharge or late penalty to be a personal  
            obligation of the operator or an assessment against the  
            property on which the extraction facility is located, and  
            provide that the assessment shall constitute a lien upon the  
            property, as specified.

          22)State that the Legislature finds and declares that a special  
            law is necessary and that a general law cannot be made  
            applicable because of the unique circumstances in the service  
            are of the Paso Robles Basin Water District.

          23)Provide that no reimbursement is required because the only  
            costs that may be incurred by a local agency or school  
            district will be incurred because this act creates a new crime  
            or infraction, eliminates a crime or infraction, or changes  
            the penalty for a crime or infraction.








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          24)Define a number of terms related to the general provisions of  
            the Paso Robles Basin Water District.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :

          1)Background on the Paso Robles Groundwater Basin and actions at  
            the local level.  According to a Paso Robles Groundwater Basin  
            newsletter published by the County of San Luis Obispo's  
            Department of Planning and Building, Public Works and Public  
            Health in June of 2011 and sent to all rural property owners  
            throughout the North County, "The basin covers approximately  
            800 square miles and is the primary, and in many places the  
            only, source of water available to property owners throughout  
            the North County? the county Board of Supervisors, after a  
            four-year study, has concluded that groundwater levels are  
            dropping throughout the basin.  The Board has also concluded  
            that pumping of groundwater from the basin has reached or is  
            quickly approaching the basin's 'perennial yield.'  Once the  
            perennial yield of a groundwater basin is reached, additional  
            pumping beyond that amount will result in lowering groundwater  
            levels.
             
             "The entire population of the rural North County gets its  
            water from groundwater wells.  What that means is that there  
            are a lot of 'straws' in the same glass; in fact, there are  
            over 8,000 wells in the Paso Robles Groundwater Basin."

            The San Luis Obispo County and other jurisdictions in the  
            County of San Luis Obispo have undertaken a number of efforts  
            to address the basin decline, including the following:

             a)   In 2010 and 2011, the City of Paso Robles and the County  
               of San Luis Obispo led a voluntary effort along with other  
               basin stakeholders to prepare a groundwater management plan  
               (GMP) for the Paso Robles Groundwater Basin.  The GMP  
               address groundwater conditions, identifies local and  
               basin-wide groundwater issues, and outlines measures to  
               protect groundwater within the basin.  On March 18, 2014,  
               the San Luis Obispo County Board of Supervisors (Board of  
               Supervisors) held a public hearing to consider adopting a  
               resolution that would direct staff on drafting amendments  








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               to the existing [GWP] that was originally adopted on March  
               27, 2012.

             b)   On September 25, 2012, the Board of Supervisors adopted  
               the Paso Robles Groundwater Basin water conservation  
               ordinance, which requires large land uses to offset new  
               water use, prohibits the creation of new parcels in the  
               basin and requires changes to the county's general plan to  
                                                                 be water neutral.  The ordinance did not affect the Cities  
               of Paso Robles and Atascadero, or the towns of Templeton,  
               San Miguel or Shandon, and did not affect the drilling of  
               wells or the building of single family homes.

             c)   The Board of Supervisors on August, 27, 2013, adopted an  
               Urgency Ordinance that established a moratorium on new or  
               expanded irrigated crop production, conversion of dry farm  
               or grazing land to new or expanded irrigated crop  
               production and new development dependent upon a well in the  
               Paso Robles Groundwater Basin, unless such uses offset  
               their total protect water use, including certain  
               exemptions.

             d)   On October 8, 2013, the Board of Supervisors continued  
               the Urgency Ordinance adopted on August 27, 2013, for two  
               years.

             e)   On February 25, 2014, the Board of Supervisors approved  
               a resolution adopting the New Development Water  
               Conservation Program.  The program implements the Paso  
               Robles Groundwater Basin Urgency Ordinance, which requires  
               all new development in the Paso Robles Basin Area to offset  
               new water use through verifiable evidence or participation  
               in an approved County Water Conservation Program.

            The County of San Luis Obispo, jurisdictions within the  
            county, and residents and community groups continue to look  
            for solutions to manage the groundwater basin.

          2)Author's statement.  According to the author, "AB 2453 is the  
            culmination of a year-long negotiation between two groups in  
            my district.  This legislation also has the full support of  
            the San Luis Obispo County Board of Supervisors and the Paso  
            Robles City Council and would allow the election of a hybrid  
            board of directors in order to ensure that all stakeholders in  
            the Basin are represented.  While the water district will be  








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            established by the San Luis Obispo County Local Agency  
            Formation Commission, there will be a lengthy process for  
            public input in order to assure the water district has the  
            management authorities to properly manage the Basin.  While  
            most Senate amendments were technical in nature, the bill was  
            also amended to allow nonlandowers who are registered voters  
            in the district to run for the three at-large director seats.   
            Over 300 wells went dry in a five-month period this year,  
            therefore, the need for this legislation is immense."

          3)Purpose of this bill.  This bill authorizes, under the  
            California Water District Law, the governing board structure  
            and powers of the Paso Robles Basin Water District in San Luis  
            Obispo County, with the District's boundaries to be  
            established by the San Luis Obispo LAFCO.  This bill provides  
            an alternate structure for the elections of the Board of  
            Directors for the not-yet-established District other than what  
            is contained in the California Water District Act, specifies  
            the qualifications of the directors to hold office, provides  
            the procedures for the District's elections for the Board of  
            Directors, and specifies a number of powers of the District  
            related to groundwater management and managing groundwater  
            extractions.

          4)Petition and Formation of the District.  Amendments taken in  
            the Senate specify that in general, the formation process for  
            the District shall comply with the Cortese-Knox-Hertzberg Act,  
            with certain exceptions.  For instance, this bill's provisions  
            allow, on or before January 1, 2019, 10% of landowners to  
            petition for the formation of the District, or as an  
            alternative, an affected local agency within the San Luis  
            Obispo County, including the San Luis Obispo County itself, or  
            the San Luis Obispo County Flood Control and Water  
            Conservation District, may also apply by resolution for the  
            formation of the District.

            Following a successful petition by landowners or a resolution  
            of application by an affected local agency, this bill requires  
            an election to be held among landowners on whether to form the  
            District.  This bill provides that a landowner may cast one  
            vote on the matter of a petition for the formation of the  
            District, and one vote on the matter of an election to form  
            the District.  If a majority of the votes cast at the election  
            were in favor of the formation of the District, the formation  
            of the District will then be complete.  This bill states that  








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            "recognizing that an election is needed to form the Paso  
            Robles Basin Water District, the protest provisions of the  
            Cortese-Knox-Hertzberg Act? as they pertain to the formation  
            of a district, do not apply."
             
           5)Qualifications of the Board of Directors.  This bill specifies  
            that the Board of Directors will be a nine-member board.   
            Qualifications for six of the directors are based on  
            land-ownership, meaning that a person must hold title to land  
            within the District or be a person authorized to vote in  
            elections by landowners as provided in the bill, and must  
            reside within the District, two miles of the District  
            boundary, or within the boundaries of several other specified  
            local agencies.  

            This bill specifies that the qualifications for the other  
            three director positions are based on being a registered voter  
            who resides within the District.

          6)Election of the Board of Directors.  This bill specifies that  
            landowners in the District would elect six directors based on  
            classifications - large landowners (400+ acres), medium  
            landowners (40 to 399 acres), and small landowners (less than  
            40 acres).  This bill provides that each landowner category  
            would elect two directors, and candidates for the six director  
            slots may be within any landowner class.  Each voter in these  
            landowner classes will be entitled to cast one vote for each  
            acre owned by the voter within the District. 

            The other three directors will be elected by registered voters  
            within the District at large.

            This bill specifies the elections process for the Board of  
            Directors, and requires that separate ballots be prepared and  
            separate elections conducted for those director positions  
            which will be elected by resident voters and for those that  
            will be elected by landowner voters, to be conducted  
            simultaneously.

          7)Options for groundwater management.  According to the  
            Department of Water Resources (DWR), in 1914 California  
            created a system of appropriating surface water rights through  
            a permitting process, but groundwater use has never been  
            regulated by the state.  Though the regulation of groundwater  
            has been considered on several occasions, the Legislature has  








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            repeatedly held that groundwater management should remain a  
            local responsibility.

            There are three ways to manage groundwater resources in  
            California:  a) management by local agencies (special  
            districts) under authority granted in the California Water  
            Code or other applicable state statutes; b) local government  
            groundwater ordinances or joint powers agreements; and, c)  
            court adjudications.

             a)   Special districts with groundwater management authority.  
                Greater authority to manage groundwater has been granted  
               to a small number of local agencies or districts created  
               through a Special Act of the Legislature.  Currently, 13  
               local agencies have specific groundwater management  
               authority as a result of being special act districts. The  
               specific authority of each agency varies, but they can  
               generally be grouped into two categories:  
               i) the agency has authority to limit export and extraction  
               (upon evidence of overdraft or threat of overdraft); or,  
               ii) the agency does not have authority to limit extraction  
               but the users in the basin are required to report  
               extractions to the agency (who can levy fees from  
               groundwater management or water supply replenishment).  

             b)   Groundwater ordinances and groundwater management plans.  
                Groundwater management can also be achieved through local  
               groundwater ordinances.  According to the DWR, more than 27  
               counties have adopted groundwater ordinances.  These  
               counties include:  Alpine, Butte, Calaveras, Colusa,  
               Fresno, Glenn, Imperial, Inyo, Kern, Lake, Lassen, Madera,  
               Mendocino, Modoc, Mono, Monterey, Napa, Sacramento, San  
               Benito, San Bernardino, San Diego, San Joaquin, Shasta,  
               Sierra, Siskiyou, Stanislaus, Tehama, Tuolumne, Ventura,  
               and Yolo.
                
                Another option for local agencies to manage groundwater is  
               through a groundwater management plan.  AB 3030, the  
               California Groundwater Management Act, was passed by the  
               Legislature in 1992.  It was a significant addition to the  
               groundwater management authorities granted under the Water  
               Code in that it greatly increased the number of local  
               agencies authorized to develop GMPs and set forth a common  
               framework for management by local agencies throughout  
               California.  Adoption of a GMP was encouraged under AB 3030  








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               but not required.  SB 1938 (Machado), Chapter 603, Statutes  
               of 2002, took a further step when it set out certain  
               specified components for GMPs and required any local agency  
               seeking state funds administered by DWR to meet those  
               requirements.  Subsequent bond initiatives have also made  
               an adopted GMP an eligibility criterion for receiving  
               groundwater project and program funds.  Since its passage,  
               149 agencies have adopted GMPs in accordance with AB 3030.   
               Other agencies have begun the process.  As mentioned above,  
               in some basins, groundwater is managed under other  
               statutory or judicial authority.

               The California Groundwater Management Act (Act), as  
               amended, provides a systematic procedure to develop a GMP  
               and requires the inclusion of certain minimum components.   
               These include basin management objectives as well as  
               monitoring and management of groundwater levels, inelastic  
               surface subsidence, and changes in surface flow and surface  
               quality that directly affect groundwater levels or quality  
               or are caused by groundwater pumping.  The Act also  
               requires a description of how recharge areas identified in  
               the plan substantially contribute to the replenishment of  
               the groundwater basin.  In addition, suggested optional  
               components that might be relevant for a particular  
               groundwater basin are listed.
             
              c)   Court adjudication.  According to DWR, another form of  
               groundwater management in California is through court  
               adjudication.  In basins where a lawsuit is brought to  
               adjudicate the basin, the groundwater disputes of all the  
               overliers and appropriators are determined by the court.   
               The court also decides:  i) who the extractors are; ii) how  
               much groundwater those well owners can extract; and, iii)  
               who the Watermaster will be to ensure that the basin is  
               managed in accordance with the court's decree.
          8)Landowner qualification.  The California Constitution provides  
            that the right to vote or serve in elected office may not be  
            conditioned on a landownership qualification.  However, in  
            1973, the United States (U.S.) Supreme Court ruled in Salyer  
            Land Co. v. Tulare Water District that the California statute  
            requiring a landownership qualification did not violate the  
            Equal Protection Clause of the U.S. Constitution.  The court  
            ruled there was no violation because those districts do not  
            exercise normal governmental authority and their activities  
            disproportionally affect landowners.








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            The California Supreme Court, in Choudhry v. Free (1976)  
            17Cal.3d 660, declared unconstitutional a section of the  
            Irrigation District Law requiring potential board candidates  
            to be landowners.  The court ruled that this section was  
            unconstitutional as applied to the Imperial Irrigation  
            District and its board of directors, the real parties in  
            interest, because it deprived the irrigation candidates and  
            voters, including petitioner voters, of equal protection.  The  
            court's opinion gave two reasons it did not extend its ruling  
            to other irrigation districts.  First, the Imperial Irrigation  
            District was singular at that time among irrigation districts  
            in that it had more residents, land, and employees than any  
            other irrigation district and it was providing retail water  
            service.  Second, neither respondents nor real parties in  
            interest had opposed petitioners' claim that Water Code  
            Section 21100 was unconstitutional, and numerous irrigation  
            districts in the state that would have been affected by a  
            finding of unconstitutionality did not have the opportunity to  
            present their views or offer evidence regarding the  
            characteristics and operation of irrigation districts in  
            general.

          9)Arguments in support.  Pro Water Equity, Inc. believes that  
            the Paso Robles Basin "needs to be sustainably managed, and  
            that a locally-controlled water district with the hybrid  
            governance structure proposed [in the bill] is the best  
            solution for [their] community."  Paso Robles Agricultural  
            Alliance for Groundwater Solutions writes that the bill  
            "provides LAFCO with wide authority to grant powers to the  
            District?. local control is essential and only those who live,  
            farm, graze and own land in the North County can determine  
            what is best for [their] situation."

          10)Arguments in opposition.  Opponents argue that the candidate  
            qualification and voting process to form and determine the  
            board of directors in the bill is unfair to local residents  
            who do not own a large amount of land, and that this type of  
            voting system and landownership requirement for directors will  
            send a signal to local residents that their votes and opinions  
            do not have the same weight as their neighbors.  Opponents  
            argue that a system where residents are treated equally  
            regardless of the amount of land owned is the better approach.

           








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          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958 


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