Amended in Assembly August 11, 2014

Amended in Assembly June 12, 2014

Senate Bill No. 866

Introduced by begin delete Committee on Budget and Fiscal Review end delete begin insert Senators Wolk and Steinberg end insert

January 9, 2014

begin delete An act to amend Sections 12722 and 12728 of, and to add Section 12559 to, the Health and Safety Code, relating to fireworks, and declaring the urgency thereof, to take effect immediately. end delete begin insert An act to add Section 75089 to the Public Resources Code, to add Section 79591 to, and to repeal and add Division 26.7 (commencing with Section 79700) of, the Water Code, and to repeal Section 2 of Chapter 3 of the Seventh Extraordinary Session of the Statutes of 2009, relating to a water quality, supply, and infrastructure improvement program, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 866, as amended, begin delete Committee on Budget and Fiscal Review end delete   begin insert Wolk end insert . begin delete Fireworks: tax on distribution. end delete begin insert Water Quality, Supply, and Infrastructure Improvement Act of 2014. end insert

begin insert

(1) Existing law, the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Existing law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election.

end insert begin insert

This bill would repeal these provisions.

end insert begin insert

(2) Under existing law, various measures have been approved by the voters to provide funds for water supply and protection facilities and programs. Existing law, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, an initiative measure approved by the voters as Proposition 84 at the November 7, 2006, statewide general election, authorizes the issuance of bonds in the amount of $5,388,000,000 for the purposes of safe drinking water, water quality and supply, flood control, natural resource protection, and park improvements. Existing law, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, an initiative measure approved by the voters as Proposition 50 at the November 5, 2002, statewide general election, authorizes, for the purposes of financing a safe drinking water, water quality, and water reliability program, the issuance of bonds in the amount of $3,440,000,000.

end insert begin insert

This bill would enact the Water Quality, Supply, and Infrastructure Improvement Act of 2014, which, if approved by the voters, would authorize the issuance of bonds in the amount of $6,995,000,000 pursuant to the State General Obligation Bond Law to finance a water quality, supply, and infrastructure improvement program. This bill, upon voter approval, would reallocate $105,000,000 of specified funds authorized for the purposes of Proposition 84 and $95,000,000 of specified funds authorized for the purposes of Proposition 50 for the purposes of a water quality, supply, and infrastructure improvement program.

end insert begin insert

This bill would provide for the submission of these provisions to the voters at the November 4, 2014, statewide general election.

end insert begin insert

(3) This bill would declare that it is to take effect immediately as an urgency statute.

end insert begin delete

Existing law authorizes the annual retail sale of safe and sane fireworks from June 28 to July 6, inclusive, pursuant to a license issued by the State Fire Marshal, unless otherwise prohibited or regulated by law or ordinance. Existing law authorizes various entities, including the State Fire Marshal, to seize certain prohibited fireworks. Existing law requires an authority that seizes fireworks to notify the State Fire Marshal of the seizure and to provide specified information. Existing law requires the State Fire Marshal to dispose of the seized fireworks and requires dangerous fireworks to be disposed of according to specified procedures. Existing law establishes the State Fire Marshal Fireworks Enforcement and Disposal Fund (fund) in the State Treasury. Existing law requires moneys in the fund to be used by the State Fire Marshal for various purposes, including for the education of public safety agencies in the proper handling and management of dangerous fireworks and to further assist in public safety and education efforts within the general public as well as public safety agencies on the proper and responsible use of safe and sane fireworks. Existing law makes a violation of the law and regulations relating to fireworks a crime.

end delete begin delete

This bill would require the moneys in the fund to be used for the training of public safety agencies in the proper handling and management of dangerous fireworks and to further assist in public safety efforts within the general public as well as public safety agencies on the proper and responsible use, seizure, and storage of safe and sane fireworks. The bill would also authorize moneys in the fund to be used for the disposal of any seized fireworks and any infrastructure requirements necessary for the disposal of fireworks as well as used for the administration of the fund by the Office of the State Fire Marshal or its contracted designee.

end delete begin delete

This bill would require, commencing January 1, 2015, a distributor, as defined, to pay a tax upon distribution, as defined, of safe and sane fireworks, as provided. The bill would require the revenue from the tax to be deposited into the fund to be used for the purposes described above. The bill would authorize the State Fire Marshal to adjust the tax rate if the revenue in the fund is not estimated to cover expenses. The bill would specifically exclude a violation of these provisions from being a crime. The bill would also authorize the seizure of safe and sane fireworks distributed in this state by an unlicensed distributor for which the required tax has not been paid.

end delete begin delete

This bill would declare that it is to take effect immediately as an urgency statute.

end delete

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 75089 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 75089. end insert   

Notwithstanding any other law, one hundred five million
dollars ($105,000,000) of the funds authorized for the purposes
of this division and set aside for the administration and bond
issuance costs are reallocated for the purposes of Division 26.7
(commencing with Section 79700) of the Water Code.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 79591 is added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

begin insert 79591. end insert   

Notwithstanding any other law, ninety-five million
dollars ($95,000,000) of the funds authorized for the purposes of
this division and set aside for the administration and bond issuance
costs are reallocated for the purposes of Division 26.7
(commencing with Section 79700).

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Division 26.7 (commencing with Section 79700) of the end insert begin insert Water Code end insert begin insert , as added by Section 1 of Chapter 3 of the Seventh
Extraordinary Session of the Statutes of 2009, is repealed. end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Division 26.7 (commencing with Section 79700) is
added to the end insert begin insert Water Code end insert begin insert , to read: end insert

begin insert

 

Division  begin insert 26.7. end insert   Water Quality, Supply, and
Infrastructure Improvement Act of 2014

 

Chapter   begin insert 1. end insert Short Title

 

begin insert 79700. end insert   

This division shall be known, and may be cited, as the
Water Quality, Supply, and Infrastructure Improvement Act of
2014.

 

Chapter   begin insert 2. end insert Findings

 

begin insert 79701. end insert   

The people of California find and declare all of the
following:

(a) Safeguarding California’s supply of clean and safe water
for homes, businesses, and farms is an essential responsibility of
government, and critical to protecting the quality of life for all
Californians.

(b) Every Californian should have access to clean, safe, and
reliable drinking water.

(c) California has been experiencing more frequent and severe
droughts and is currently enduring the worst drought in 200 years.
These droughts are magnifying the shortcomings of our current
water infrastructure.

(d) California’s water infrastructure continues to age and
deteriorate. More than 50 years ago, Californians approved the
construction of the State Water Project. In recent decades,
however, that infrastructure has proven inadequate to meet
California’s growing needs.

(e) This measure provides funding to implement the three
objectives of the California Water Action Plan which are more
reliable water supplies, the restoration of important species and
habitat, and a more resilient and sustainably managed water
infrastructure.

(f) Developing and guarding our water resources is critical for
California to maintain vibrant communities, globally competitive
agriculture, and healthy ecosystems.

(g) Encouraging water conservation and recycling are
commonsense methods to make more efficient use of existing water
supplies.

(h) Sustainable water management in California depends upon
reducing and reversing overdraft and water quality impairment
of groundwater basins. Investments to expand groundwater storage
and reduce and reverse overdraft and water quality impairment
of groundwater basins provide extraordinary public benefit and
are in the public interest.

(i) Protecting lakes, rivers, and streams, cleaning up polluted
groundwater supplies, and preserving water sources that supply
the entire state are crucial to providing a reliable supply of water
and protecting the state’s natural resources.

(j) The Water Quality, Supply, and Infrastructure Improvement
Act of 2014 provides a comprehensive and fiscally responsible
approach for addressing the varied challenges facing California’s
water resources.

 

Chapter   begin insert 3. end insert Definitions

 

begin insert 79702. end insert   

Unless the context otherwise requires, the definitions
set forth in this section govern the construction of this division, as
follows:

(a) “Acquisition” means obtaining a fee interest or any other
interest in real property, including, easements, leases, water, water
rights, or interest in water obtained for the purposes of instream
flows and development rights.

(b) “CALFED Bay-Delta Program” means the program
described in the Record of Decision dated August 28, 2000.

(c) “Commission” means the California Water Commission.

(d) “Committee” means the Water Quality, Supply, and
Infrastructure Improvement Finance Committee created by Section
79787.

(e) “Delta” means the Sacramento-San Joaquin Delta, as
defined in Section 85058.

(f) “Delta conveyance facilities” means facilities that convey
water directly from the Sacramento River to the State Water Project
or the federal Central Valley Project pumping facilities in the
south Delta.

(g) “Delta counties” means the Counties of Contra Costa,
Sacramento, San Joaquin, Solano, and Yolo.

(h) “Delta plan” has the meaning set forth in Section 85059.

(i) “Director” means the Director of Water Resources.

(j) “Disadvantaged community” has the meaning set forth in
subdivision (a) of Section 79505.5.

(k) “Economically distressed area” means a municipality with
a population of 20,000 persons or less, a rural county, or a
reasonably isolated and divisible segment of a larger municipality
where the segment of the population is 20,000 persons or less,
with an annual median household income that is less than 85
percent of the statewide median household income, and with one
or more of the following conditions as determined by the
department:

(1) Financial hardship.

(2) Unemployment rate at least 2 percent higher than the
statewide average.

(3) Low population density.

(l) “Fund” means the Water Quality, Supply, and Infrastructure
Improvement Fund of 2014 created by Section 79715.

(m) “Instream flows” means a specific streamflow, measured
in cubic feet per second, at a particular location for a defined time,
and typically follows seasonal variations.

(n) “Integrated regional water management plan” has the
meaning set forth in Part 2.2 (commencing with Section 10530)
of Division 6, as that part may be amended.

(o) “Long-term” means for a period of not less than 20 years.

(p) “Nonprofit organization” means an organization qualified
to do business in California and qualified under Section 501(c)(3)
of Title 26 of the United States Code.

(q) “Proposition 1E” means the Disaster Preparedness and
Flood Prevention Bond Act of 2006 (Chapter 1.699 (commencing
with Section 5096.800) of Division 5 of the Public Resources
Code).

(r) “Proposition 84” means the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection
Bond Act of 2006 (Division 43 (commencing with Section 75001)
of the Public Resources Code).

(s) “Public agency” means a state agency or department,
district, joint powers authority, city, county, city and county, or
other political subdivision of the state.

(t) “Rainwater” has the meaning set forth in subdivision (c) of
Section 10573.

(u) “Secretary” means the Secretary of the Natural Resources
Agency.

(v) “Severely disadvantaged community” has the meaning set
forth in subdivision (a) of Section 116760.20 of the Health and
Safety Code.

(w) “Small community water system” means a community water
system that serves no more than 3,300 service connections or a
yearlong population of no more than 10,000 persons.

(x) “State board” means the State Water Resources Control
Board.

(y) “State General Obligation Bond Law” means the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code).

(z) “State small water system” has the meaning set forth in
subdivision (n) of Section 116275 of the Health and Safety Code.

(aa) “Stormwater” has the meaning set forth in subdivision (e)
of Section 10573.

(ab) “Water right” means a legal entitlement authorizing water
to be diverted from a specified source and put to a beneficial,
nonwasteful use.

 

Chapter   begin insert 4. end insert General Provisions

 

begin insert 79703. end insert   

An amount that equals not more than 5 percent of the
funds allocated for a grant program pursuant to this division may
be used to pay the administrative costs of that program.

begin insert 79704. end insert   

Unless otherwise specified, up to 10 percent of funds
allocated for each program funded by this division may be
expended for planning and monitoring necessary for the successful
design, selection, and implementation of the projects authorized
under that program. This section shall not otherwise restrict funds
ordinarily used by an agency for “preliminary plans,” “working
drawings,” and “construction” as defined in the annual Budget
Act for a capital outlay project or grant project. Water quality
monitoring data shall be collected and reported to the state board
in a manner that is compatible and consistent with surface water
monitoring data systems or groundwater monitoring data systems
administered by the state board. Watershed monitoring data shall
be collected and reported to the Department of Conservation in a
manner that is compatible and consistent with the statewide
watershed program administered by the Department of
Conservation.

begin insert 79705. end insert   

Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code does not apply
to the development or implementation of programs or projects
authorized or funded under this division other than Chapter 8
(commencing with Section 79750).

begin insert 79706. end insert   

(a) Prior to disbursing grants or loans pursuant to this
division, each state agency that receives an appropriation from
the funding made available by this division to administer a
competitive grant or loan program under this division shall develop
and adopt project solicitation and evaluation guidelines. The
guidelines shall include monitoring and reporting requirements
and may include a limitation on the dollar amount of grants or
loans to be awarded. If the state agency has previously developed
and adopted project solicitation and evaluation guidelines that
comply with the requirements of this subdivision, it may use those
guidelines.

(b) Prior to disbursing grants or loans, the state agency shall
conduct three public meetings to consider public comments prior
to finalizing the guidelines. The state agency shall publish the draft
solicitation and evaluation guidelines on its Internet Web site at
least 30 days before the public meetings. One meeting shall be
conducted at a location in northern California, one meeting shall
be conducted at a location in the central valley of California, and
one meeting shall be conducted at a location in southern
California. Upon adoption, the state agency shall transmit copies
of the guidelines to the fiscal committees and the appropriate policy
committees of the Legislature.

begin insert 79707. end insert   

It is the intent of the people that:

(a) The investment of public funds pursuant to this division will
result in public benefits that address the most critical statewide
needs and priorities for public funding.

(b) In the appropriation and expenditure of funding authorized
by this division, priority will be given to projects that leverage
private, federal, or local funding or produce the greatest public
benefit.

(c) A funded project advances the purposes of the chapter from
which the project received funding.

(d) In making decisions regarding water resources, state and
local water agencies will use the best available science to inform
those decisions.

(e) Special consideration will be given to projects that employ
new or innovative technology or practices, including decision
support tools that support the integration of multiple jurisdictions,
including, but not limited to, water supply, flood control, land use,
and sanitation.

(f) Evaluation of projects considered for funding pursuant to
this division will include review by professionals in the fields
relevant to the proposed project.

(g) To the extent practicable, a project supported by funds made
available by this division will include signage informing the public
that the project received funds from the Water Quality, Supply,
and Infrastructure Improvement Act of 2014.

(h) Projects funded with proceeds from this division will be
consistent with Division 7 (commencing with Section 13000) of
this code and Section 13100 of the Government Code.

(i) Projects funded with proceeds from this division will promote
state planning priorities consistent with the provisions of Section
65041.1 of the Government Code and sustainable communities
strategies consistent with the provisions of subparagraph (B) of
paragraph (2) of subdivision (b) of Section 65080 of the
Government Code, to the extent feasible.

(j) California’s working agricultural and forested landscapes
will be preserved wherever possible. To the extent feasible,
watershed objectives included in this division should be achieved
through use of conservation easements and voluntary landowner
participation, including, but not limited to, the use of easements
pursuant to Division 10.2 (commencing with Section 10200) and
Division 10.4 (commencing with Section 10330) of the Public
Resources Code and voluntary habitat credit exchange
mechanisms.

begin insert 79708. end insert   

(a) The Department of Finance shall provide for an
independent audit of expenditures pursuant to this division. The
secretary shall publish a list of all program and project
expenditures pursuant to this division not less than annually, in
written form, and shall post an electronic form of the list on the
Natural Resources Agency’s Internet Web site.

(b) If an audit, required by statute, of any entity that receives
funding authorized by this division is conducted pursuant to state
law and reveals any malfeasance, the California State Auditor or
the Controller may conduct a full audit of any or all of the activities
of that entity.

(c) The state agency issuing any grant or loan with funding
authorized by this division shall require adequate reporting of the
expenditures of the funding from the grant or loan.

(d) Prior to soliciting projects pursuant to this division, state
agencies shall submit guidelines to the secretary. The secretary
shall verify that the guidelines are consistent with applicable
statutes and for all the purposes enumerated in this division. The
secretary shall post an electronic form of the guidelines submitted
by state agencies and the subsequent verifications on the Natural
Resources Agency’s Internet Web site.

begin insert 79709. end insert   

(a) Funds expended pursuant to this division for the
acquisition of a permanent dedication of water shall be in
accordance with Section 1707 where the state board specifies that
the water is in addition to water that is required for regulatory
requirements as provided in subdivision (c) of Section 1707. The
expenditure of funds provided by this division may include the
initiation of the dedication as a short term or temporary urgency
change, that is approved in accordance with Section 1707 and
either Chapter 6.6 (commencing with Section 1435) of, or Chapter
10.5 (commencing with Section 1725) of, Part 2 of Division 2,
during the period required to prepare any environmental
documentation and for approval of permanent dedication.

(b) Funds expended pursuant to this division for the acquisition
of long-term transfers of water shall be transfers in accordance
with Sections 1735, 1736, and 1737 if the state board, after
providing notice and opportunity for a hearing, approves such a
petition. Funds expended pursuant to this division shall prioritize
permanent transfers and long-term transfers of water. Long-term
transfers shall be for a period of not less than 20 years, except for
any water transfers for the benefit of subsection (d) of Section
3406 of the Central Valley Project Improvement Act (Title 34 of
Public Law 102-575).

(c) Funds expended as described in this section shall only be
used for projects that will provide fisheries or ecosystem benefits
or improvements that are greater than required applicable
environmental mitigation measures or compliance obligations in
effect at the time the funds from this division are made available
for the project and funds shall not be credited to any such measures
or obligations, except for any water transfers for the benefit of
subsection (d) of Section 3405 of Title 34 of the Central Valley
Project Improvement Act (Title 34 of Public Law 102-575).

begin insert 79710. end insert   

(a)  Funds provided by this division shall not be
expended to pay the costs of the design, construction, operation,
mitigation, or maintenance of Delta conveyance facilities. Those
costs shall be the responsibility of the water agencies that benefit
from the design, construction, operation, mitigation, or
maintenance of those facilities.

(b) To the extent feasible, in implementing subdivision (k) of
Section 79731, the Sacramento-San Joaquin Delta Conservancy
shall seek to achieve wildlife conservation objectives through
projects on public lands or voluntary projects on private lands.
Funds available to the Sacramento-San Joaquin Delta Conservancy
pursuant to subdivision (k) of Section 79731 may be used, in
consultation with the Department of Fish and Wildlife, for
payments to landowners for the creation of measurable habitat
improvements or other improvements to the condition of
endangered or threatened species. The Sacramento-San Joaquin
Delta Conservancy may develop and implement a competitive
program for habitat enhancements that maximizes voluntary
landowner participation in projects that provide measurable and
long-lasting habitat or species improvements in the Delta. These
funds shall not be used to subsidize or decrease the mitigation
obligations of any party.

(c) In implementing subdivision (k) of Section 79731, the
Sacramento-San Joaquin Delta Conservancy shall coordinate,
cooperate, and consult with the city or county in which a grant is
proposed to be expended or an interest in real property is proposed
to be acquired and with the Delta Protection Commission.
Acquisitions by the Sacramento-San Joaquin Delta Conservancy
pursuant to subdivision (k) of Section 79731 shall be from willing
sellers only.

begin insert 79711. end insert   

(a) This division does not diminish, impair, or
otherwise affect in any manner whatsoever any area of origin,
watershed of origin, county of origin, or any other water rights
protections, including, but not limited to, rights to water
appropriated prior to December 19, 1914, provided under the law.
This division does not limit or affect the application of Article 1.7
(commencing with Section 1215) of Chapter 1 of Part 2 of Division
2, Sections 10505, 10505.5, 11128, 11460, 11461, 11462, and
11463, and Sections 12200 to 12220, inclusive.

(b) For the purposes of this division, an area that utilizes water
that has been diverted and conveyed from the Sacramento River
hydrologic region, for use outside the Sacramento River hydrologic
region or the Delta, shall not be deemed to be immediately adjacent
thereto or capable of being conveniently supplied with water
therefrom by virtue or on account of the diversion and conveyance
of that water through facilities that may be constructed for that
purpose after January 1, 2014.

(c) Nothing in this division supersedes, limits, or otherwise
modifies the applicability of Chapter 10 (commencing with Section
1700) of Part 2 of Division 2, including petitions related to any
new conveyance constructed or operated in accordance with
Chapter 2 (commencing with Section 85320) of Part 4 of Division
35.

(d) Unless otherwise expressly provided, nothing in this division
supersedes, reduces, or otherwise affects existing legal protections,
both procedural and substantive, relating to the state board’s
regulation of diversion and use of water, including, but not limited
to, water right priorities, the protection provided to municipal
interests by Sections 106 and 106.5, and changes in water rights.
Nothing in this division expands or otherwise alters the state
board’s existing authority to regulate the diversion and use of
water or the courts’ existing concurrent jurisdiction over California
water rights.

(e) Nothing in this division shall be construed to affect the
California Wild and Scenic Rivers Act (Chapter 1.4 (commencing
with Section 5093.50) of Division 5 of the Public Resources Code)
or the federal Wild and Scenic Rivers Act (16 U.S.C. Sec. 1271 et
seq.) and funds authorized pursuant to this division shall not be
available for any project that could have an adverse effect on the
values upon which a wild and scenic river or any other river is
afforded protections pursuant to the California Wild and Scenic
Rivers Act or the federal Wild and Scenic Rivers Act.

(f) Nothing in this division supersedes, limits, or otherwise
modifies the Sacramento-San Joaquin Delta Reform Act of 2009
(Division 35 (commencing with Section 85000)) or any other
applicable law, including, but not limited to, Division 22.3
(commencing with Section 32300) of the Public Resources Code.

(g) Funds provided by this division shall not be used to acquire
land via eminent domain.

(h) Notwithstanding any other law, any agency acquiring land
pursuant to this division may use the Natural Heritage Preservation
Tax Credit Act of 2000 (Division 28 (commencing with Section
37000) of the Public Resources Code).

begin insert 79712. end insert   

(a) Eligible applicants under this division are public
agencies, nonprofit organizations, public utilities, federally
recognized Indian tribes, state Indian tribes listed on the Native
American Heritage Commission’s California Tribal Consultation
List, and mutual water companies.

(b) (1) To be eligible for funding under this division, a project
proposed by a public utility that is regulated by the Public Utilities
Commission or a mutual water company shall have a clear and
definite public purpose and shall benefit the customers of the water
system and not the investors.

(2) To be eligible for funding under this division, an urban water
supplier shall adopt and submit an urban water management plan
in accordance with the Urban Water Management Planning Act
(Part 2.6 (commencing with Section 10610) of Division 6).

(3) To be eligible for funding under this division, an agricultural
water supplier shall adopt and submit an agricultural water
management plan in accordance with the Agricultural Water
Management Planning Act (Part 2.8 (commencing with Section
10800) of Division 6).

(4) In accordance with Section 10608.56, an agricultural water
supplier or an urban water supplier is ineligible for funding under
this division unless it complies with the requirements of Part 2.55
(commencing with Section 10608) of Division 6.

begin insert 79713. end insert   

The Legislature may enact legislation necessary to
implement programs funded by this division, except as otherwise
provided in Section 79760.

begin insert 79714. end insert   

(a) Unless otherwise specified, any state agency that
has the statutory authority to implement one or more of the
purposes specified in this bond may be eligible for appropriations
from the funding made available by this division.

(b) Funding made available by this division shall not be
appropriated by the Legislature to a specific project.

(c) Projects funded pursuant to this division may use the services
of the California Conservation Corps or certified community
conservation corps, as defined in Section 14507.5 of the Public
Resources Code.

begin insert 79715. end insert   

The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Water Quality, Supply, and
Infrastructure Improvement Fund of 2014, which is hereby created
in the State Treasury.

begin insert 79716. end insert   

Each state agency that receives an appropriation of
funding made available by this division shall be responsible for
establishing metrics of success and reporting the status of projects
and all uses of the funding on the state’s bond accountability
Internet Web site, as provided by statute.

 

Chapter   begin insert 5. end insert Clean, Safe and Reliable Drinking Water

 

begin insert 79720. end insert   

The sum of five hundred million dollars ($500,000,000)
shall be available, upon appropriation by the Legislature from the
fund, for expenditures, grants, and loans for projects that improve
water quality or help provide clean, safe, and reliable drinking
water to all Californians.

begin insert 79721. end insert   

The projects eligible for funding pursuant to this chapter
shall help improve water quality for a beneficial use. The purposes
of this chapter are to:

(a) Reduce contaminants in drinking water supplies regardless
of the source of the water or the contamination.

(b) Assess and prioritize the risk of contamination to drinking
water supplies.

(c) Address the critical and immediate needs of disadvantaged,
rural, or small communities that suffer from contaminated drinking
water supplies, including, but not limited to, projects that address
a public health emergency.

(d) Leverage other private, federal, state, and local drinking
water quality and wastewater treatment funds.

(e) Reduce contaminants in discharges to, and improve the
quality of, waters of the state.

(f) Prevent further contamination of drinking water supplies.

(g) Provide disadvantaged communities with public drinking
water infrastructure that provides clean, safe, and reliable drinking
water supplies that the community can sustain over the long term.

(h) Ensure access to clean, safe, reliable, and affordable
drinking water for California’s communities.

(i) Meet primary and secondary safe drinking water standards
or remove contaminants identified by the state or federal
government for development of a primary or secondary drinking
water standard.

begin insert 79722. end insert   

The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
selenium, hexavalent chromium, mercury, PCE
(perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1,2,3-TCP
(trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron,
manganese, and uranium.

begin insert 79723. end insert   

Of the funds authorized by Section 79720, two hundred
fifty million dollars ($250,000,000) shall be available for deposit
in the State Water Pollution Control Revolving Fund Small
Community Grant Fund created pursuant to Section 13477.6 for
grants for wastewater treatment projects. Priority shall be given
to projects that serve disadvantaged communities and severely
disadvantaged communities, and to projects that address public
health hazards. Projects may include, but not be limited to, projects
that identify, plan, design, and implement regional mechanisms
to consolidate wastewater systems or provide affordable treatment
technologies.

begin insert 79724. end insert   

(a) (1) Of the funds authorized by Section 79720, two
hundred fifty million dollars ($250,000,000) shall be available for
grants and loans for public water system infrastructure
improvements and related actions to meet safe drinking water
standards, ensure affordable drinking water, or both. Priority
shall be given to projects that provide treatment for contamination
or access to an alternate drinking water source or sources for
small community water systems or state small water systems in
disadvantaged communities whose drinking water source is
impaired by chemical and nitrate contaminants and other health
hazards identified by the state board. Eligible recipients serve
disadvantaged communities and are public water systems or public
agencies. The state board may make grants for the purpose of
financing feasibility studies and to meet the eligibility requirements
for a construction grant. Eligible expenses may include initial
operation and maintenance costs for systems serving disadvantaged
communities. Priority shall be given to projects that provide shared
solutions for multiple communities, at least one of which is a
disadvantaged community that lacks safe, affordable drinking
water and is served by a small community water system, state small
water system, or a private well. Construction grants shall be limited
to five million dollars ($5,000,000) per project, except that the
state board may set a limit of not more than twenty million dollars
($20,000,000) for projects that provide regional benefits or are
shared among multiple entities, at least one of which shall be a
small disadvantaged community. Not more than 25 percent of a
grant may be awarded in advance of actual expenditures.

(2) For the purposes of this subdivision, “initial operation and
maintenance costs” means those initial, eligible, and reimbursable
costs under a construction funding agreement that are incurred
up to, and including, initial startup testing of the constructed
project in order to deem the project complete. Initial operation
and maintenance costs are eligible to receive funding pursuant to
this section for a period not to exceed two years.

(b) The administering entity may expend up to twenty-five
million dollars ($25,000,000) of the funds allocated in subdivision
(a) for technical assistance to eligible communities.

(c) The state board shall deposit up to two million five hundred
thousand dollars ($2,500,000) of the funds available pursuant to
this section into the Drinking Water Capital Reserve Fund, which
is hereby created in the State Treasury. Moneys in the Drinking
Water Capital Reserve Fund shall be available, upon appropriation
by the Legislature, and shall be administered by the state board
for the purpose of serving as matching funds for disadvantaged
communities. The state board shall develop criteria to implement
this subdivision.

begin insert 79725. end insert   

(a) For the purposes of awarding funding under this
chapter, a local cost share of not less than 50 percent of the total
costs of the project shall be required. The cost-sharing requirement
may be waived or reduced for projects that directly benefit a
disadvantaged community or an economically distressed area.

(b) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.

(c) Up to 20 percent of the funds available pursuant to this
chapter may be allocated for technical assistance to disadvantaged
communities. The agency administering this funding shall operate
a multidisciplinary technical assistance program for small and
disadvantaged communities.

(d) Funding for planning activities, including technical
assistance, to benefit disadvantaged communities may exceed 20
percent of the funds allocated, subject to the determination of the
need for additional planning funding by the state agency
administering the funding.

 

Chapter   begin insert 6. end insert Protecting Rivers, Lakes, Streams, Coastal
Waters, and Watersheds

 

begin insert 79730. end insert   

The sum of one billion four hundred seventy million
dollars ($1,470,000,000) shall be available, upon appropriation
by the Legislature from the fund, in accordance with this chapter,
for competitive grants for multibenefit ecosystem and watershed
protection and restoration projects in accordance with statewide
priorities.

begin insert 79731. end insert   

Of the funds authorized by Section 79730, the sum of
three hundred two million five hundred thousand dollars
($302,500,000) shall be allocated for multibenefit water quality,
water supply, and watershed protection and restoration projects
for the watersheds of the state in accordance with the following
schedule:

(a) Baldwin Hills Conservancy, ten million dollars
($10,000,000).

(b) California Tahoe Conservancy, fifteen million dollars
($15,000,000).

(c) Coachella Valley Mountains Conservancy, ten million dollars
($10,000,000).

(d) Ocean Protection Council, thirty million dollars
($30,000,000).

(e) San Diego River Conservancy, seventeen million dollars
($17,000,000).

(f) San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy, twenty-five million dollars ($25,000,000).

(g) San Joaquin River Conservancy, ten million dollars
($10,000,000).

(h) Santa Monica Mountains Conservancy, thirty million dollars
($30,000,000).

(i) Sierra Nevada Conservancy, twenty-five million dollars
($25,000,000).

(j) State Coastal Conservancy, eighty million five hundred
thousand dollars ($80,500,000).

(k) Sacramento-San Joaquin Delta Conservancy, fifty million
dollars ($50,000,000).

begin insert 79732. end insert   

(a) In protecting and restoring California rivers, lakes,
streams, and watersheds, the purposes of this chapter are to:

(1) Protect and increase the economic benefits arising from
healthy watersheds, fishery resources, and instream flow.

(2) Implement watershed adaptation projects in order to reduce
the impacts of climate change on California’s communities and
ecosystems.

(3) Restore river parkways throughout the state, including, but
not limited to, projects pursuant to the California River Parkways
Act of 2004 (Chapter 3.8 (commencing with Section 5750) of
Division 5 of the Public Resources Code), in the Urban Streams
Restoration Program established pursuant to Section 7048, and
urban river greenways.

(4) Protect and restore aquatic, wetland, and migratory bird
ecosystems, including fish and wildlife corridors and the
acquisition of water rights for instream flow.

(5) Fulfill the obligations of the State of California in complying
with the terms of multiparty settlement agreements related to water
resources.

(6) Remove barriers to fish passage.

(7) Collaborate with federal agencies in the protection of fish
native to California and wetlands in the central valley of
California.

(8) Implement fuel treatment projects to reduce wildfire risks,
protect watersheds tributary to water storage facilities, and
promote watershed health.

(9) Protect and restore rural and urban watershed health to
improve watershed storage capacity, forest health, protection of
life and property, stormwater resource management, and
greenhouse gas reduction.

(10) Protect and restore coastal watersheds, including, but not
limited to, bays, marine estuaries, and nearshore ecosystems.

(11) Reduce pollution or contamination of rivers, lakes, streams,
or coastal waters, prevent and remediate mercury contamination
from legacy mines, and protect or restore natural system functions
that contribute to water supply, water quality, or flood
management.

(12) Assist in the recovery of endangered, threatened, or
migratory species by improving watershed health, instream flows,
fish passage, coastal or inland wetland restoration, or other means,
such as natural community conservation plan and habitat
conservation plan implementation.

(13) Assist in water-related agricultural sustainability projects.

(b) Funds provided by this chapter shall only be used for
projects that will provide fisheries or ecosystem benefits or
improvements that are greater than required applicable
environmental mitigation measures or compliance obligations.

begin insert 79733. end insert   

Of the funds made available by Section 79730, the sum
of two hundred million dollars ($200,000,000) shall be
administered by the Wildlife Conservation Board for projects that
result in enhanced stream flows.

begin insert 79734. end insert   

For restoration and ecosystem protection projects under
this chapter, the services of the California Conservation Corps or
a local conservation corps certified by the California Conservation
Corps shall be used whenever feasible.

begin insert 79735. end insert   

(a) Of the funds authorized by Section 79730, one
hundred million dollars ($100,000,000) shall be available for
projects to protect and enhance an urban creek, as defined in
subdivision (e) of Section 7048, and its tributaries, pursuant to
Chapter 3.8 (commencing with Section 5750) of Division 5 of,
Division 22.8 (commencing with Section 32600) of, and Division
23 (commencing with Section 33000) of, the Public Resources
Code and Section 79508.

(b) (1) Of the funds authorized by Section 79730, twenty million
dollars ($20,000,000) shall be made available to the secretary for
a competitive program to fund multibenefit watershed and urban
rivers enhancement projects in urban watersheds that increase
regional and local water self-sufficiency and that meet at least two
of the following objectives:

(A) Promote groundwater recharge and water reuse.

(B) Reduce energy consumption.

(C) Use soils, plants, and natural processes to treat runoff.

(D) Create or restore native habitat.

(E) Increase regional and local resiliency and adaptability to
climate change.

(2) The program under this subdivision shall be implemented
by state conservancies, the Wildlife Conservation Board, the state
board, or other entities whose jurisdiction includes urban
watersheds, as designated by the secretary. Projects funded under
the program shall be a part of a plan developed jointly by the
conservancies, the Wildlife Conservation Board, the state board,
or other designated entities in consultation with the secretary.

(c) At least 25 percent of the funds available pursuant to this
section shall be allocated for projects that benefit disadvantaged
communities.

(d) Up to 10 percent of the funds available pursuant to this
section may be allocated for project planning.

begin insert 79736. end insert   

Of the funds authorized by Section 79730, four hundred
seventy-five million dollars ($475,000,000) shall be available to
the Natural Resources Agency to support projects that fulfill the
obligations of the State of California in complying with the terms
of the following:

(a) The February 18, 2010, Klamath Hydroelectric Settlement
Agreement or the Klamath Basin Restoration Agreement.

(b) Chapters 611, 612, and 613 of the Statutes of 2003, which
were enacted to facilitate the execution and implementation of the
Quantification Settlement Agreement, including restoration of the
Salton Sea.

(c) The San Joaquin River Restoration Settlement Act (Part 1
of Subtitle A of Title 10 of Public Law 111-11).

(d) Tahoe Regional Planning Compact (Title 7.4 (commencing
with Section 66800) of the Government Code).

(e) Subsection (d) of Section 3406 of the Central Valley Project
Improvement Act (Title 34 of Public Law 102-575), including the
construction, retrofitting, and maintenance of water supply
infrastructure and the acquisition and conveyance of water supply
from willing sellers, with a preference for water transfers of 20
years or longer, purchases of water rights, or other agreements
that result in long-term enhancement of habitat conditions.

begin insert 79737. end insert   

(a) Of the funds authorized by Section 79730, two
hundred eighty-five million dollars ($285,000,000) shall be
available to the Department of Fish and Wildlife for watershed
restoration projects statewide in accordance with this chapter.

(b) For the purposes of this section, watershed restoration
includes activities to fund coastal wetland habitat, improve forest
health, restore mountain meadows, modernize stream crossings,
culverts, and bridges, reconnect historical flood plains, install or
improve fish screens, provide fish passages, restore river channels,
restore or enhance riparian, aquatic, and terrestrial habitat,
improve ecological functions, acquire from willing sellers
conservation easements for riparian buffer strips, and remove
sediment or trash.

(c) For any funds available pursuant to this section that are
used to provide grants under the Fisheries Restoration Grant
Program, a priority shall be given to coastal waters.

(d) In allocating funds for projects pursuant to this section, the
Department of Fish and Wildlife shall only make funds available
for water quality, river, and watershed protection and restoration
projects of statewide importance outside of the Delta.

(e) Funds provided by this section shall not be expended to pay
the costs of the design, construction, operation, mitigation, or
maintenance of Delta conveyance facilities.

(f) Funds provided by this section shall only be used for projects
that will provide fisheries or ecosystem benefits or improvements
that are greater than required applicable environmental mitigation
measures or compliance obligations, except for any water transfers
for the benefit of subsection (d) of Section 3406 of the Central
Valley Project Improvement Act (Title 34 of Public Law 102-575).

begin insert 79738. end insert   

(a) Of the funds authorized by Section 79730,
eighty-seven million five hundred thousand dollars ($87,500,000)
shall be available to the Department of Fish and Wildlife for water
quality, ecosystem restoration, and fish protection facilities that
benefit the Delta, including, but not limited to, the following:

(1) Projects to improve water quality or that contribute to the
improvement of water quality in the Delta, including projects in
Delta counties that provide multiple public benefits and improve
drinking and agricultural water quality or water supplies.

(2) Habitat restoration, conservation, and enhancement projects
to improve the condition of special status, at risk, endangered, or
threatened species in the Delta and the Delta counties, including
projects to eradicate invasive species, and projects that support
the beneficial reuse of dredged material for habitat restoration
and levee improvements.

(3) Scientific studies and assessments that support the Delta
Science Program, as described in Section 85280, or projects under
this section.

(b) (1) In implementing this section, the department shall
coordinate and consult with the Delta city or Delta county in which
a grant is proposed to be expended or an interest in real property
is proposed to be acquired.

(2) To the extent feasible, the department shall use local
partners.

(c) Acquisitions pursuant to this section shall be from willing
sellers only.

(d) In implementing this section state agencies shall prioritize
wildlife conservation objectives through projects on public lands
or voluntary projects on private lands, to the extent feasible.

(e) Funds available pursuant to this section shall not be used
to acquire land via eminent domain.

(f) Funds available pursuant to this section shall not be
expended to pay the costs of the design, construction, operation,
mitigation, or maintenance of Delta conveyance facilities.

 

Chapter   begin insert 7. end insert Regional Water Security, Climate, and
Drought Preparedness

 

begin insert 79740. end insert   

The sum of seven hundred eighty million dollars
($780,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures on, and competitive
grants and loans to, projects that are included in and implemented
in an adopted integrated regional water management plan
consistent with Part 2.2 (commencing with Section 10530) of
Division 6 and respond to climate change and contribute to
regional water security as provided in this chapter.

begin insert 79741. end insert   

In order to improve regional water self-reliance security
and adapt to the effects on water supply arising out of climate
change, the purposes of this chapter are to:

(a) Help water infrastructure systems adapt to climate change,
including, but not limited to, sea level rise.

(b) Provide incentives for water agencies throughout each
watershed to collaborate in managing the region’s water resources
and setting regional priorities for water infrastructure.

(c) Improve regional water self-reliance consistent with Section
85021.

begin insert 79742. end insert   

(a) In selecting among proposed projects in a
watershed, the scope of the adopted integrated regional water
management plan may be considered by the administering state
agency, with priority going to projects in plans that cover a greater
portion of the watershed. If a plan covers substantially all of the
watershed, the plan’s project priorities shall be given deference
if the project and plan otherwise meet the requirements of this
division and the Integrated Regional Water Management Planning
Act (Part 2.2 (commencing with Section 10530) of Division 6).

(b) A local agency that does not prepare, adopt, and submit its
groundwater plan in accordance with groundwater planning
requirements established under Division 6 (commencing with
Section 10000) is ineligible to apply for funds made available
pursuant to this chapter until the plan is prepared and submitted
in accordance with the requirements of that part. The groundwater
management plan requirement shall not apply to a water
replenishment district formed pursuant to Division 18 (commencing
with Section 60000) or to a local agency that serves or has
authority to manage an adjudicated groundwater basin.

(c) For the purposes of awarding funding under this chapter,
a cost share from nonstate sources of not less than 50 percent of
the total costs of the project shall be required. The cost-sharing
requirement may be waived or reduced for projects that directly
benefit a disadvantaged community or an economically distressed
area.

(d) Not less than 10 percent of the funds authorized by this
chapter shall be allocated to projects that directly benefit
disadvantaged communities.

(e) For the purposes of awarding funding under this chapter,
the applicant shall demonstrate that the integrated regional water
management plan the applicant’s project implements contributes
to addressing the risks in the region to water supply and water
infrastructure arising from climate change.

(f) Projects that achieve multiple benefits shall receive special
consideration.

begin insert 79743. end insert   

Subject to the determination of regional priorities in
the regional water management group, eligible projects may
include, but are not limited to, projects that promote any of the
following:

(a) Water reuse and recycling for nonpotable reuse and direct
and indirect potable reuse.

(b) Water-use efficiency and water conservation.

(c) Local and regional surface and underground water storage,
including groundwater aquifer cleanup or recharge projects.

(d) Regional water conveyance facilities that improve
integration of separate water systems.

(e) Watershed protection, restoration, and management projects,
including projects that reduce the risk of wildfire or improve water
supply reliability.

(f) Stormwater resource management, including, but not limited
to, the following:

(1) Projects to reduce, manage, treat, or capture rainwater or
stormwater.

(2) Projects that provide multiple benefits such as water quality,
water supply, flood control, or open space.

(3) Decision support tools that evaluate the benefits and costs
of multibenefit stormwater projects.

(4) Projects to implement a stormwater resource plan developed
in accordance with Part 2.3 (commencing with Section 10560) of
Division 6.

(g) Conjunctive use of surface and groundwater storage
facilities.

(h) Water desalination projects.

(i) Decision support tools to model regional water management
strategies to account for climate change and other changes in
regional demand and supply projections.

(j) Improvement of water quality, including drinking water
treatment and distribution, groundwater and aquifer remediation,
matching water quality to water use, wastewater treatment, water
pollution prevention, and management of urban and agricultural
runoff.

begin insert 79744. end insert   

(a) Of the funds authorized by Section 79740, four
hundred eighty million dollars ($480,000,000) shall be allocated
to the hydrologic regions as identified in the California Water
Plan in accordance with this section. For the South Coast
hydrologic region, the department shall establish three funding
areas that reflect the watersheds of San Diego County (designated
as the San Diego subregion), the Santa Ana River watershed and
southern Orange County (designated as the Santa Ana subregion),
and the Los Angeles and Ventura County watersheds (designated
as the Los Angeles subregion), and shall allocate funds to those
areas in accordance with this subdivision. The North and South
Lahontan hydrologic regions shall be treated as one area for the
purpose of allocating funds. For purposes of this subdivision, the
Sacramento River hydrologic region does not include the Delta.
For purposes of this subdivision, the Mountain Counties Overlay
is not eligible for funds from the Sacramento River hydrologic
region or the San Joaquin River hydrologic region. Multiple
integrated regional water management plans may be recognized
in each of the areas allocated funding.

(b) Funds made available by this chapter shall be allocated as
follows:

(1) Twenty-one million five hundred thousand dollars
($21,500,000) for the North Coast hydrologic region.

(2) Sixty-five million dollars ($65,000,000) for the San Francisco
Bay hydrologic region.

(3) Twenty-eight million dollars ($28,000,000) for the Central
Coast hydrologic region.

(4) Ninety-eight million dollars ($98,000,000) for the Los
Angeles subregion.

(5) Sixty-three million dollars ($63,000,000) for the Santa Ana
subregion.

(6) Forty-two million five hundred thousand dollars
($42,500,000) for the San Diego subregion.

(7) Thirty-seven million dollars ($37,000,000) for the
Sacramento River hydrologic region.

(8) Thirty-one million dollars ($31,000,000) for the San Joaquin
River hydrologic region.

(9) Thirty-four million dollars ($34,000,000) for the Tulare/Kern
hydrologic region.

(10) Twenty-four million five hundred thousand dollars
($24,500,000) for the North/South Lahontan hydrologic region.

(11) Twenty-two million five hundred thousand dollars
($22,500,000) for the Colorado River Basin hydrologic region.

(12) Thirteen million dollars ($13,000,000) for the Mountain
Counties Overlay.

begin insert 79745. end insert   

The Department of Water Resources shall expend,
either directly or for noncompetitive grants, no less than 10 percent
of the funds from the regional allocations specified in Section
79744 for the purposes of ensuring involvement of disadvantaged
communities, economically distressed areas, or underrepresented
communities within regions.

begin insert 79746. end insert   

(a) Of the funds authorized by Section 79740, the sum
of one hundred million dollars ($100,000,000) may be used for
direct expenditures, and for grants and loans, for the following
water conservation and water-use efficiency plans, projects, and
programs:

(1) Urban water conservation plans, projects, and programs,
including regional projects and programs, implemented to achieve
urban water use targets developed pursuant to Section 10608.20.
Priority for funding shall be given to programs that do any of the
following:

(A) Assist water suppliers and regions to implement conservation
programs and measures that are not locally cost effective.

(B) Support water supplier and regional efforts to implement
programs targeted to enhance water-use efficiency for commercial,
industrial, and institutional water users.

(C) Assist water suppliers and regions with programs and
measures targeted toward realizing the conservation benefits of
implementation of the provisions of the state landscape model
ordinance.

(2) Agricultural water management plans or agricultural water
use efficiency projects and programs developed pursuant to Part
2.8 (commencing with Section 10800) of Division 6.

(b) Section 1011 applies to all conservation measures that an
agricultural water supplier or an urban water supplier implements
with funding under this chapter. This subdivision does not limit
the application of Section 1011 to any other measures or projects
implemented by a water supplier. Notwithstanding Section 79748,
the projects funded pursuant to this section are not required to be
in an adopted integrated regional water management plan or to
comply with that program.

begin insert 79747. end insert   

(a) Of the funds authorized by Section 79740, two
hundred million dollars ($200,000,000) shall be available for
grants for multibenefit stormwater management projects.

(b) Eligible projects may include, but shall not be limited to,
green infrastructure, rainwater and stormwater capture projects,
and stormwater treatment facilities.

(c) Development of plans for stormwater projects shall address
the entire watershed and incorporate the perspectives of
communities adjacent to the affected waterways, especially
disadvantaged communities.

begin insert 79748. end insert   

In order to receive funding authorized by this chapter
to address groundwater quality or supply in an aquifer, the
applicant shall demonstrate that a public agency has authority to
manage the water resources in that aquifer. A groundwater
management plan adopted and submitted in accordance with
groundwater management planning requirements established
under Division 6 (commencing with Section 10000) shall be
deemed sufficient to satisfy the requirements of this section.

 

Chapter   begin insert 8. end insert Statewide Water System Operational
Improvement and Drought Preparedness

 

begin insert 79750. end insert   

(a) Notwithstanding Section 162, the commission may
make the determinations, findings, and recommendations required
of it by this chapter independent of the views of the director. All
final actions by the commission in implementing this chapter shall
be taken by a majority of the members of the commission at a
public meeting noticed and held pursuant to the Bailey-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code).

(b) Notwithstanding Section 13340 of the Government Code,
the sum of two billion five hundred million dollars ($2,500,000,000)
is hereby continuously appropriated from the fund, without regard
to fiscal years, to the commission for public benefits associated
with water storage projects that improve the operation of the state
water system, are cost effective, and provide a net improvement
in ecosystem and water quality conditions, in accordance with this
chapter. Funds authorized for, or made available to, the
commission pursuant to this chapter shall be available and
expended only for the purposes provided in this chapter, and shall
not be subject to appropriation or transfer by the Legislature or
the Governor for any other purpose.

(c) Projects shall be selected by the commission through a
competitive public process that ranks potential projects based on
the expected return for public investment as measured by the
magnitude of the public benefits provided, pursuant to criteria
established under this chapter.

(d) Any project constructed with funds provided by this chapter
shall be subject to Section 11590.

begin insert 79751. end insert   

Projects for which the public benefits are eligible for
funding under this chapter consist of only the following:

(a) Surface storage projects identified in the CALFED Bay-Delta
Program Record of Decision, dated August 28, 2000, except for
projects prohibited by Chapter 1.4 (commencing with Section
5093.50) of Division 5 of the Public Resources Code.

(b) Groundwater storage projects and groundwater
contamination prevention or remediation projects that provide
water storage benefits.

(c) Conjunctive use and reservoir reoperation projects.

(d) Local and regional surface storage projects that improve
the operation of water systems in the state and provide public
benefits.

begin insert 79752. end insert   

A project shall not be funded pursuant to this chapter
unless it provides measurable improvements to the Delta ecosystem
or to the tributaries to the Delta.

begin insert 79753. end insert   

(a) Funds allocated pursuant to this chapter may be
expended solely for the following public benefits associated with
water storage projects:

(1) Ecosystem improvements, including changing the timing of
water diversions, improvement in flow conditions, temperature,
or other benefits that contribute to restoration of aquatic
ecosystems and native fish and wildlife, including those ecosystems
and fish and wildlife in the Delta.

(2) Water quality improvements in the Delta, or in other river
systems, that provide significant public trust resources, or that
clean up and restore groundwater resources.

(3) Flood control benefits, including, but not limited to,
increases in flood reservation space in existing reservoirs by
exchange for existing or increased water storage capacity in
response to the effects of changing hydrology and decreasing snow
pack on California’s water and flood management system.

(4) Emergency response, including, but not limited to, securing
emergency water supplies and flows for dilution and salinity
repulsion following a natural disaster or act of terrorism.

(5) Recreational purposes, including, but not limited to, those
recreational pursuits generally associated with the outdoors.

(b) Funds shall not be expended pursuant to this chapter for
the costs of environmental mitigation measures or compliance
obligations except for those associated with providing the public
benefits as described in this section.

begin insert 79754. end insert   

In consultation with the Department of Fish and
Wildlife, the state board, and the Department of Water Resources,
the commission shall develop and adopt, by regulation, methods
for quantification and management of public benefits described
in Section 79753 by December 15, 2016. The regulations shall
include the priorities and relative environmental value of ecosystem
benefits as provided by the Department of Fish and Wildlife and
the priorities and relative environmental value of water quality
benefits as provided by the state board.

begin insert 79755. end insert   

(a) Except as provided in subdivision (c), no funds
allocated pursuant to this chapter may be allocated for a project
before December 15, 2016, and until the commission approves the
project based on the commission’s determination that all of the
following have occurred:

(1) The commission has adopted the regulations specified in
Section 79754 and specifically quantified and made public the cost
of the public benefits associated with the project.

(2) The project applicant has entered into a contract with each
party that will derive benefits, other than public benefits, as defined
in Section 79753, from the project that ensures the party will pay
its share of the total costs of the project. The benefits available to
a party shall be consistent with that party’s share of total project
costs.

(3) The project applicant has entered into a contract with each
public agency identified in Section 79754 that administers the
public benefits, after that agency makes a finding that the public
benefits of the project for which that agency is responsible meet
all the requirements of this chapter, to ensure that the public
contribution of funds pursuant to this chapter achieves the public
benefits identified for the project.

(4) The commission has held a public hearing for the purposes
of providing an opportunity for the public to review and comment
on the information required to be prepared pursuant to this
subdivision.

(5) All of the following additional conditions are met:

(A) Feasibility studies have been completed.

(B) The commission has found and determined that the project
is feasible, is consistent with all applicable laws and regulations,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.

(C) All environmental documentation associated with the project
has been completed, and all other federal, state, and local
approvals, certifications, and agreements required to be completed
have been obtained.

(b) The commission shall submit to the Legislature its findings
for each of the criteria identified in subdivision (a) for a project
funded pursuant to this chapter.

(c) Notwithstanding subdivision (a), funds may be made
available under this chapter for the completion of environmental
documentation and permitting of a project.

begin insert 79756. end insert   

(a) The public benefit cost share of a project funded
pursuant to this chapter, other than a project described in
subdivision (c) of Section 79751, shall not exceed 50 percent of
the total costs of any project funded under this chapter.

(b) No project may be funded unless it provides ecosystem
improvements as described in paragraph (1) of subdivision (a) of
Section 79753 that are at least 50 percent of total public benefits
of the project funded under this chapter.

begin insert 79757. end insert   

(a) A project is not eligible for funding under this
chapter unless, by January 1, 2022, all of the following conditions
are met:

(1) All feasibility studies are complete and draft environmental
documentation is available for public review.

(2) The commission makes a finding that the project is feasible,
and will advance the long-term objectives of restoring ecological
health and improving water management for beneficial uses of the
Delta.

(3) The director receives commitments for not less than 75
percent of the nonpublic benefit cost share of the project.

(b) If compliance with subdivision (a) is delayed by litigation
or failure to promulgate regulations, the date in subdivision (a)
shall be extended by the commission for a time period that is equal
to the time period of the delay, and funding under this chapter that
has been dedicated to the project shall be encumbered until the
time at which the litigation is completed or the regulations have
been promulgated.

begin insert 79758. end insert   

Surface storage projects funded pursuant to this chapter
and described in subdivision (a) of Section 79751 may be made a
unit of the Central Valley Project as provided in Section 11290
and may be financed, acquired, constructed, operated, and
maintained pursuant to Part 3 (commencing with Section 11100)
of Division 6.

begin insert 79759. end insert   

(a) The funds allocated for the design, acquisition, and
construction of surface storage projects identified in the CALFED
Bay-Delta Record of Decision, dated August 28, 2000, pursuant
to this chapter may be provided for those purposes to local joint
powers authorities formed by irrigation districts and other local
water districts and local governments within the applicable
hydrologic region to design, acquire, and construct those projects.

(b) The joint powers authorities described in subdivision (a)
may include in their membership governmental partners that are
not located within their respective hydrologic regions in financing
the surface storage projects, including, as appropriate, cost share
participation or equity participation. Notwithstanding Section
6525 of the Government Code, the joint powers agencies described
in subdivision (a) shall not include in their membership any
for-profit corporation or any mutual water company whose
shareholders and members include a for-profit corporation or any
other private entity. The department shall be an ex officio member
of each joint powers authority subject to this section, but the
department shall not control the governance, management, or
operation of the surface water storage projects.

(c) A joint powers authority subject to this section shall own,
govern, manage, and operate a surface water storage project,
subject to the requirement that the ownership, governance,
management, and operation of the surface water storage project
shall advance the purposes set forth in this chapter.

begin insert 79760. end insert   

(a) In approving the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, the people were informed
and hereby declare that the provisions of this chapter are
necessary, integral, and essential to meeting the single object or
work of the Water Quality, Supply, and Infrastructure Improvement
Act of 2014. As such, any amendment of the provisions of this
chapter by the Legislature without voter approval would frustrate
the scheme and design that induced voter approval of this act. The
people therefore find and declare that any amendment of the
provisions of this chapter by the Legislature shall require an
affirmative vote of two-thirds of the membership in each house of
the Legislature and voter approval.

(b) This section shall not govern or be used as authority for
determining whether the amendment of any other provision of this
act not contained in this chapter would constitute a substantial
change in the scheme and design of this act requiring voter
approval.

 

Chapter   begin insert 9. end insert Water Recycling

 

begin insert 79765. end insert   

The sum of seven hundred million dollars
($700,000,000) shall be available, upon appropriation by the
Legislature from the fund, for grants or loans for water recycling
and advanced treatment technology projects, including all of the
following:

(a) Water recycling projects, including, but not limited to,
treatment, storage, conveyance, and distribution facilities for
potable and nonpotable recycling projects.

(b) Contaminant and salt removal projects, including, but not
limited to, groundwater and seawater desalination and associated
treatment, storage, conveyance, and distribution facilities.

(c) Dedicated distribution infrastructure to serve residential,
commercial, agricultural, and industrial end-user retrofit projects
to allow use of recycled water.

(d) Pilot projects for new potable reuse and other salt and
contaminant removal technology.

(e) Groundwater recharge infrastructure pursuant to this
chapter and Chapter 10 (commencing with Section 79770).

(f) Technical assistance and grant writing assistance for
disadvantaged communities.

(g) Water supply reliability improvement for critical urban
water supplies in designated superfund areas with groundwater
contamination listed on the National Priorities List established
pursuant to Section 105 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
Sec. 9605(a)(8)(B)).

begin insert 79766. end insert   

At least a 50-percent local cost share shall be required
for projects funded pursuant to this chapter. That cost share may
be suspended or reduced for disadvantaged communities and
economically distressed areas.

begin insert 79767. end insert   

Projects funded pursuant to this chapter shall be
selected on a competitive basis, considering all of the following
criteria:

(a) Water supply reliability improvement.

(b) Water quality and ecosystem benefits related to decreased
reliance on diversions from the Delta or instream flows.

(c) Public health benefits from improved drinking water quality
or supply.

(d) Cost-effectiveness.

(e) Energy efficiency and greenhouse gas emission impacts.

(f) Reasonable geographic allocation to eligible projects
throughout the state, including both northern and southern
California and coastal and inland regions.

begin insert 79768. end insert   

For purposes of this chapter, competitive programs
shall be implemented consistent with water recycling programs
administered pursuant to Sections 79140 and 79141 or consistent
with desalination programs administered pursuant to Sections
79545 and 79547.2.

 

Chapter   begin insert 10. end insert Groundwater Sustainability

 

begin insert 79770. end insert   

Prevention and cleanup of groundwater contamination
are critical components of successful groundwater management.
Groundwater quality becomes especially important as water
providers do the following:

(a) Evaluate investments in groundwater recharge with surface
water, stormwater, recycled water, and other conjunctive use
projects that augment local groundwater supplies to improve
regional water self-reliance.

(b) Adapt to changing hydrologic conditions brought on by
climate change.

(c) Consider developing groundwater basins to provide much
needed local storage options to accommodate hydrologic and
regulatory variability in the state’s water delivery system.

(d) Evaluate investments in groundwater recovery projects.

begin insert 79771. end insert   

(a) The sum of eight hundred fifty million dollars
($850,000,000) shall be available, upon appropriation by the
Legislature from the fund, for expenditures on, and competitive
grants, and loans for, projects to prevent or clean up the
contamination of groundwater that serves or has served as a source
of drinking water. Funds appropriated pursuant to this section
shall be available to the state board for projects necessary to
protect public health by preventing or reducing the contamination
of groundwater that serves or has served as a major source of
drinking water for a community.

(b) Projects shall be prioritized based upon the following
criteria:

(1) The threat posed by groundwater contamination to the
affected community’s overall drinking water supplies, including
an urgent need for treatment of alternative supplies or increased
water imports if groundwater is not available due to contamination.

(2) The potential for groundwater contamination to spread and
impair drinking water supply and water storage for nearby
population areas.

(3) The potential of the project, if fully implemented, to enhance
local water supply reliability.

(4) The potential of the project to maximize opportunities to
recharge vulnerable, high-use groundwater basins and optimize
groundwater supplies.

(5) The project addresses contamination at a site for which the
courts or the appropriate regulatory authority has not yet identified
responsible parties, or where the identified responsible parties
are unwilling or unable to pay for the total cost of cleanup.

(c) The Legislature, by statute, shall establish both of the
following:

(1) A requirement that the grantee repay grant funds in the event
of cost recovery from the parties responsible for the groundwater
contamination.

(2) A requirement that the grantee make reasonable efforts to
attempt to recover the costs of cleanup from the parties responsible
for the contamination, except that a grantee shall not be required
to seek cost recovery related to the costs of response actions
apportioned to responsible parties who are insolvent or cannot
be identified or located or when a requirement to seek cost
recovery would impose a financial hardship on the grantee.

begin insert 79772. end insert   

Of the funds authorized by Section 79771, seventy-five
million dollars ($75,000,000) shall be available for grants for
treatment and remediation activities that prevent or reduce the
contamination of groundwater that serves as a source of drinking
water. Nothing in this section precludes the funding of projects
pursuant to Section 79771.

begin insert 79773. end insert   

The contaminants that may be addressed with funding
pursuant to this chapter may include, but shall not be limited to,
nitrates, perchlorate, MTBE (methyl tertiary butyl ether), arsenic,
selenium, hexavalent chromium, mercury, PCE
(perchloroethylene), TCE (trichloroethylene), DCE
(dichloroethene), DCA (dichloroethane), 1,2,3-TCP
(trichloropropane), carbon tetrachloride, 1,4-dioxane,
1,4-dioxacyclohexane, nitrosodimethylamine, bromide, iron,
manganese, and uranium.

begin insert 79774. end insert   

(a) A project that receives funding pursuant to this
chapter shall be selected by a competitive grant or loan process
with added consideration for those projects that leverage private,
federal, or local funding.

(b) For the purposes of awarding funding under this chapter,
a local cost share of not less than 50 percent of the total costs of
the project shall be required. The cost-sharing requirement may
be waived or reduced for projects that directly benefit a
disadvantaged community or an economically distressed area.

(c) An agency administering grants or loans for the purposes
of this chapter shall assess the capacity of a community to pay for
the operation and maintenance of the facility to be funded.

(d) At least 10 percent of the funds available pursuant to this
chapter shall be allocated for projects serving severely
disadvantaged communities.

(e) Funding authorized by this chapter shall include funding
for technical assistance to disadvantaged communities. The agency
administering this funding shall operate a multidisciplinary
technical assistance program for small and disadvantaged
communities.

begin insert 79775. end insert   

Of the funds authorized by Section 79771, one hundred
million dollars ($100,000,000) shall be made available for
competitive grants for projects that develop and implement
groundwater plans and projects in accordance with groundwater
planning requirements established under Division 6 (commencing
with Section 10000).

 

Chapter   begin insert 11. end insert Flood Management

 

begin insert 79780. end insert   

The sum of three hundred ninety-five million dollars
($395,000,000) shall be available, upon appropriation by the
Legislature from the fund, to the Department of Water Resources
and the Central Valley Flood Protection Board for the purpose of
statewide flood management projects and activities. Priority shall
be given to multibenefit projects that achieve public safety and
include fish and wildlife enhancement and recreation. The
Department of Water Resources shall make its best effort to first
utilize prior bond proceeds from Propositions 84 and 1E.

begin insert 79781. end insert   

Of the funds authorized by Section 79780, two hundred
ninety-five million dollars ($295,000,000) shall be available to
reduce the risk of levee failure and flood in the Delta for any of
the following:

(a) Local assistance under the Delta levee maintenance
subventions program pursuant to Part 9 (commencing with Section
12980) of Division 6, as that part may be amended.

(b) Special flood protection projects pursuant to Chapter 2
(commencing with Section 12310) of Part 4.8 of Division 6, as
that chapter may be amended.

(c) Levee improvement projects that increase the resiliency of
levees within the Delta to withstand earthquake, flooding, or sea
level rise.

(d) Emergency response and repair projects.

 

Chapter   begin insert 12. end insert Fiscal Provisions

 

begin insert 79785. end insert   

(a) Bonds in the total amount of six billion nine
hundred ninety-five million dollars ($6,995,000,000), or so much
thereof as is necessary, not including the amount of any refunding
bonds issued in accordance with Section 79797 may be issued and
sold to provide a fund to be used for carrying out the purposes
expressed in this division and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of both principal of, and interest on, the
bonds as the principal and interest become due and payable.

(b) The Treasurer shall sell the bonds authorized by the
committee pursuant to this section. The bonds shall be sold upon
the terms and conditions specified in a resolution to be adopted
by the committee pursuant to Section 16731 of the Government
Code.

begin insert 79786. end insert   

The bonds authorized by this division shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this division and are hereby incorporated in this division as
though set forth in full in this division, except Section 16727 of the
Government Code shall not apply to the extent that it is inconsistent
with any other provision of this division.

begin insert 79787. end insert   

(a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code) of the bonds authorized by
this division, the Water Quality, Supply, and Infrastructure
Improvement Finance Committee is hereby created. For purposes
of this division, the Water Quality, Supply, and Infrastructure
Improvement Finance Committee is the “committee” as that term
is used in the State General Obligation Bond Law.

(b) The committee consists of the Director of Finance, the
Treasurer, and the Controller. Notwithstanding any other provision
of law, any member may designate a representative to act as that
member in his or her place for all purposes, as though the member
were personally present.

(c) The Treasurer shall serve as chairperson of the committee.

(d) A majority of the committee may act for the committee.

begin insert 79788. end insert   

The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized by this division
in order to carry out the actions specified in this division and, if
so, the amount of bonds to be issued and sold. Successive issues
of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.

begin insert 79789. end insert   

For purposes of the State General Obligation Bond
Law, “board,” as defined in Section 16722 of the Government
Code, means the secretary.

begin insert 79790. end insert   

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an
amount required to pay the principal of, and interest on, the bonds
each year. It is the duty of all officers charged by law with any
duty in regard to the collection of the revenue to do and perform
each and every act that is necessary to collect that additional sum.

begin insert 79791. end insert   

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this division, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this division, as the
principal and interest become due and payable.

(b) The sum that is necessary to carry out the provisions of
Section 79794, appropriated without regard to fiscal years.

begin insert 79792. end insert   

The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account
in accordance with Section 16312 of the Government Code for the
purpose of carrying out this division less any amount withdrawn
pursuant to Section 79794. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this division. The board shall execute those documents required
by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated in accordance with this division.

begin insert 79793. end insert   

Notwithstanding any other provision of this division,
or of the State General Obligation Bond Law, if the Treasurer
sells bonds that include a bond counsel opinion to the effect that
the interest on the bonds is excluded from gross income for federal
tax purposes under designated conditions or is otherwise entitled
to any federal tax advantage, the Treasurer may maintain separate
accounts for the bond proceeds invested and for the investment
earnings on those proceeds, and may use or direct the use of those
proceeds or earnings to pay any rebate, penalty, or other payment
required under federal law or take any other action with respect
to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.

begin insert 79794. end insert   

For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the
General Fund of an amount or amounts not to exceed the amount
of the unsold bonds that have been authorized by the committee
to be sold for the purpose of carrying out this division less any
amount borrowed pursuant to Section 79792. Any amounts
withdrawn shall be deposited in the fund. Any moneys made
available under this section shall be returned to the General Fund,
with interest at the rate earned by the moneys in the Pooled Money
Investment Account, from proceeds received from the sale of bonds
for the purpose of carrying out this division.

begin insert 79795. end insert   

All moneys deposited in the fund that are derived from
premium and accrued interest on bonds sold pursuant to this
division shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest, except that amounts derived from premium may be
reserved and used to pay the cost of bond issuance prior to any
transfer to the General Fund.

begin insert 79796. end insert   

Pursuant to Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code,
the cost of bond issuance shall be paid out of the bond proceeds,
including premium, if any. To the extent the cost of bond issuance
is not paid from premiums received from the sale of bonds, these
costs shall be shared proportionately by each program funded
through this division by the applicable bond sale.

begin insert 79797. end insert   

The bonds issued and sold pursuant to this division
may be refunded in accordance with Article 6 (commencing with
Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of
the Government Code, which is a part of the State General
Obligation Bond Law. Approval by the voters of the state for the
issuance of the bonds under this division shall include approval
of the issuance of any bonds issued to refund any bonds originally
issued under this division or any previously issued refunding bonds.

begin insert 79798. end insert   

The proceeds from the sale of bonds authorized by this
division are not “proceeds of taxes” as that term is used in Article
XIII B of the California Constitution, and the disbursement of these
proceeds is not subject to the limitations imposed by that article.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009, as amended by Section 1 of Chapter
74 of the Statutes of 2012, is repealed. end insert

begin insert

begin insert SEC. 6. end insert   

(a) Notwithstanding the requirements of Sections 9040,
9043, 9044, 9061, and 9082 of the Elections Code, or any other
law, the Secretary of State shall submit Sections 1, 2, and 4 of this
act to the voters at the November 4, 2014, statewide general
election.

(b) The Secretary of State shall include in the ballot pamphlets
mailed pursuant to Section 9094 of the Elections Code the
information specified in Section 9084 of the Elections Code
regarding the bond act contained in Sections 1, 2, and 4 of this
act. If that inclusion is not possible, the Secretary of State shall
publish a supplemental ballot pamphlet regarding this act to be
mailed with the ballot pamphlet. If the supplemental ballot
pamphlet cannot be mailed with the ballot pamphlet, the
supplemental ballot pamphlet shall be mailed separately.

end insert

begin insert

begin insert SEC. 7. end insert   

Notwithstanding Sections 13115 and 13117 of the
Elections Code, Sections 1, 2, and 4 of this act shall be placed as
the first ballot measure on the November 4, 2014, general election
ballot and shall be designated as Proposition 1.

end insert

begin insert

begin insert SEC. 8. end insert   

Sections 1, 2, and 4 of this act shall take effect upon
approval by the voters of the Water Quality, Supply, and
Infrastructure Improvement Act of 2014, as set forth in Section 4
of this act, including changes to the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection
Bond Act of 2006, as set forth in Section 1 of this act, and the
Water Security, Clean Drinking Water, Coastal and Beach
Protection Act of 2002, as set forth in Section 2 of this act.

end insert

begin insert

begin insert SEC. 9. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to fund a water quality, supply, and infrastructure
improvement program at the earliest possible date, it is necessary
that this act take effect immediately.

end insert

begin delete

SECTION 1.  

Section 12559 is added to the Health and Safety
Code, to read:

12559.  

(a) Commencing January 1, 2015, a distributor shall
pay a tax upon his or her distribution of safe and sane fireworks
at the rate of ten cents ($0.10) per pound of the total weight of the
fireworks, including any packaging, unless adjusted by the State
Fire Marshal pursuant to subdivision (c).

(b) (1) Funds received by the State Fire Marshal or its designee
pursuant to this section shall be deposited into the State Fire
Marshal Fireworks Enforcement and Disposal Fund established
pursuant to Section 12728.

(2) Funds received pursuant to this section shall only be used,
upon appropriation by the Legislature, for the purposes listed in
Section 12728.

(c) The State Fire Marshal may adjust the rate specified in
subdivision (a), not to exceed twenty cents ($0.20) per pound, at
a public meeting to be held in January of each year in order to
provide sufficient revenues to pay for the estimated expenses
described in Section 12728.

(d) The State Fire Marshal may contract with another public
agency to administer this section.

(e) The State Fire Marshal is authorized to adopt emergency
regulations necessary to implement this section during the 2014-15
fiscal year in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). The adoption of emergency regulations shall be deemed
an emergency and necessary for the immediate preservation of the
public peace, health, and safety, or general welfare.

(f) The State Fire Marshal may, by regulation, establish the
period for reporting of information, returns, billings, and payment
of taxes due pursuant to this section.

(g) A violation of this section, or any regulation adopted
pursuant to this section, does not constitute a crime for purposes
of Section 12700.

(h) For purposes of this section, the following terms have the
following meanings:

(1) (A) “Distribution” means either or both of the following:

(i) The sale of previously untaxed safe and sane fireworks in
this state.

(ii) The use or consumption of previously untaxed safe and sane
fireworks in this state. For purposes of this clause, “use or
consumption” includes the exercise of a right or power over safe
and sane fireworks incident to the ownership of those fireworks,
other than the sale of the safe and sane fireworks or the keeping
or retention of those fireworks by a licensee pursuant to Section
12571, 12572, or 12573.

(B) For purposes of this paragraph, “previously untaxed safe
and sane fireworks” means fireworks that have not yet been
distributed in a manner as to result in a tax liability under this
section.

(2) “Distributor” means either of the following:

(A) A person who holds a license issued by the State Fire
Marshal pursuant to Section 12571, 12572, or 12573.

(B) A person who does not hold a license described in
subparagraph (A) and who, after the effective date of this section,
distributes, as that term is described in paragraph (1), safe and sane
fireworks in this state.

SEC. 2.  

Section 12722 of the Health and Safety Code is
amended to read:

12722.  

The following fireworks may be seized pursuant to
Section 12721:

(a) Those fireworks that are sold, offered for sale, possessed,
stored, used, or transported within this state prior to having been
examined, classified, and registered by the State Fire Marshal,
except those specific items designated as samples pending
examination, classification, and registration by the State Fire
Marshal where the licensee provides documentary evidence that
such action by the State Fire Marshal is pending.

(b) All imported fireworks possessed without benefit of the
filing of notices as required by this part.

(c) Safe and sane fireworks stored in violation of the conditions
required by the permit as provided in this part.

(d) Safe and sane fireworks sold or offered for sale at retail that
do not bear the State Fire Marshal label of registration and firing
instructions.

(e) Safe and sane fireworks sold or offered for sale at retail that
are in unsealed packages or containers that do not bear the State
Fire Marshal label of registration and firing instructions.

(f) Safe and sane fireworks sold or offered for sale at retail
before 12 noon on the 28th day of June or after 12 noon on the
sixth day of July of each year.

(g) Each safe and sane fireworks item sold or offered for sale
at retail that does not have its fuse or other igniting device protected
by a cap approved by the State Fire Marshal, or groups of fireworks
with exposed fuses that are not enclosed in sealed packages that
bear the State Fire Marshal label of registration. The State Fire
Marshal shall approve the caps as he or she determines provide
reasonable protection from unintentional ignition of the fireworks.

(h) Dangerous fireworks, including fireworks kits, used,
possessed, stored, manufactured, or transported by a person who
does not possess a valid permit authorizing an activity listed in
this part.

(i) Fireworks stored or sold in a public garage or public oil
station, or on a premises where gasoline or other class 1 flammable
liquids are stored or dispensed.

(j) Fireworks still possessed by a person who has just thrown
ignited fireworks at a person or group of persons.

(k) Model rocket engines or model rockets with engines
possessed by a person who does not hold a valid permit.

(l) An emergency signaling device sold, offered for sale, or used
that does not bear the State Fire Marshal label of registration as
required by this part.

(m) Fireworks or pyrotechnic device offered for sale by a person
violating this part.

(n) Safe and sane fireworks distributed in this state by an
unlicensed distributor and for which the tax required pursuant to
Section 12559 has not been paid.

SEC. 3.  

Section 12728 of the Health and Safety Code is
amended to read:

12728.  

(a) The State Fire Marshal Fireworks Enforcement and
Disposal Fund is hereby established in the State Treasury.

(b) All of the moneys collected pursuant to Section 12706 shall
be deposited in the fund and shall be available, upon appropriation
by the Legislature, to the State Fire Marshal for the exclusive use
in statewide programs for the enforcement, prosecution related to,
disposal, and management of seized dangerous fireworks, and for
the training of public safety agencies in the proper handling and
management of dangerous fireworks.

(c) All of the moneys collected pursuant to Section 12727 shall
be deposited in the fund and shall be available, upon appropriation
by the Legislature, to the State Fire Marshal for the exclusive use
in statewide programs for all of the following:

(1) To further assist in statewide programs for the enforcement,
prosecution related to, disposal, and management of seized
dangerous fireworks.

(2) The training of public safety agencies in the proper handling
and management of dangerous fireworks as well as safety issues
involving all fireworks and explosives.

(3) Assist the State Fire Marshal in identifying and evaluating
methods to capture more detailed data relating to fires, damages,
and injuries caused by both dangerous and safe and sane fireworks,
and to assist with funding the eventual development and
implementation of those methods.

(4) To further assist in public safety efforts within the general
public as well as public safety agencies on the proper and
responsible use, seizure, and storage of safe and sane fireworks.

(5) Disposal of any seized fireworks and any infrastructure
requirements necessary for the disposal of fireworks.

(6) Administration of the fund by the Office of the State Fire
Marshal or its contracted designee.

SEC. 4.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order for regulatory changes to be adopted to address the
public safety and environmental damage caused by illegal fireworks
in the state at the earliest possible time, it is necessary that this act
take effect immediately.

end delete