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SB-963 Water replenishment districts.(2017-2018)

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Date Published: 04/13/2018 04:00 AM
SB963:v97#DOCUMENT

Amended  IN  Senate  April 12, 2018
Amended  IN  Senate  March 14, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 963


Introduced by Senator Allen

January 31, 2018


An act to amend Section Sections 60292 and 60315 of, and to repeal Section 60328.1 of, and to repeal Chapter 5 (commencing with Section 60290) of Part 5 of Division 18 Sections 60290, 60291, and 60328.1 of, the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 963, as amended, Allen. Water replenishment districts.
Existing law authorizes a water replenishment district, for the purposes of replenishing the groundwater supplies within the district, to buy and sell water; exchange water; distribute water to persons in exchange for ceasing or reducing groundwater extractions; spread, sink, and inject water into the underground; store, transport, recapture, recycle, purify, treat, or otherwise manage and control water for the beneficial use of persons or property within the district; and build the necessary works to achieve groundwater replenishment.
Existing law authorizes a water replenishment district to establish an annual reserve fund not to exceed $10,000,000, as adjusted annually to reflect percentage increases or decreases in the blended cost of water from district supply sources and, beginning in the 2019–20 fiscal year, requires a minimum of 80% of the reserve to be used for water purchases. Existing law excepts from this limitation the unexpended balance of any appropriated funds in a capital improvement project construction account established to pay the cost of a project or projects under construction.
This bill would repeal this reserve fund authorization and would make conforming changes.
Existing law requires a water replenishment district to order, review, and maintain on file an independent, audited financial statement not later than 60 days from the conclusion of the district’s fiscal year and require copies of the statements to be submitted to the Governor, the Legislature, and the California State Auditor on or before November 1 of each year.
This bill would repeal these requirements. require the statements to be submitted to the appropriate policy committees of the Legislature instead of the Legislature generally.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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


SECTION 1.Chapter 5 (commencing with Section 60290) of Part 5 of Division 18 of the Water Code is repealed.

SECTION 1.

 Section 60290 of the Water Code is repealed.
60290.

The district may establish an annual reserve fund in an amount not to exceed ten million dollars ($10,000,000) commencing with the 2000–01 fiscal year. The maximum allowable reserve fund may be adjusted annually commencing with the 2001–02 fiscal year to reflect percentage increases or decreases in the blended cost of water from district supply sources. Beginning in the 2019–20 fiscal year, a minimum of 80 percent of the reserve shall be for water purchases.

SEC. 2.

 Section 60291 of the Water Code is repealed.
60291.

The limitation on the reserve established in Section 60290 does not apply to the unexpended balance of any appropriated funds in a capital improvement project construction account established to pay the cost of a project or projects under construction.

SEC. 3.

 Section 60292 of the Water Code is amended to read:

60292.
 (a) The district shall order, review, and maintain on file an independent, audited financial statement not later than 60 days from the conclusion of the district’s fiscal year. The independent audited financial statement shall be prepared by a certified public accountant or a public accountant, licensed by the California Board of Accountancy. The independent audited financial statement shall be consistent with standards provided in the “Standards for Audits of Governmental Organizations, Programs, Activities, and Functions” prepared by the Comptroller General of the United States. The independent audited financial statement shall include all of the following:
(1) The balances in all accounts established for the maintenance of the district’s funds.
(2) A report describing the amount of district funds to be expended for any capital improvement project authorized to be constructed or funded by the district and a detailed description of the capital improvement project.
(3) A report detailing the source of funds to be expended on any authorized capital improvement project, and whether the source of funds is the water replenishment assessment levied in accordance with Part 6 (commencing with Section 60300).
(4) A report describing the propriety of the district’s operating expenses.
(5) A summary of independent audited financial statement exceptions and management improvement recommendations.
(6) A description of correction or plan of correction shall be incorporated in the independent audited financial statement, describing the specific actions that are planned to be taken, or that have been taken, to correct the problem identified by the auditor. The descriptions of specific actions to be taken or that have been taken shall not solely consist of general comments such as “will implement,” “accepted the recommendation,” or “will discuss at a later date.”
(b) Copies of the independent audited financial statements shall be submitted to the Governor, the appropriate policy committees of the Legislature, including the Senate Committee on Governance and Finance or its successor, and the State Auditor on or before November 1 of each year.

SEC. 2.SEC. 4.

 Section 60315 of the Water Code is amended to read:

60315.
 Upon completing the hearing, but no later than the second Tuesday in May, the board shall, by resolution, find all of the following:
(a) The annual overdraft for the preceding water year.
(b) The estimated annual overdraft for the current water year.
(c) The estimated annual overdraft for the ensuing water year.
(d) The accumulated overdraft as of the last day of the preceding water year.
(e) The estimated accumulated overdraft as of the last day of the current water year.
(f) The total production of groundwater from the groundwater supplies within the district during the preceding water year.
(g) The estimated total production of groundwater from the groundwater supplies within the district for the current water year.
(h) The estimated total production of groundwater from the groundwater supplies within the district for the ensuing water year.
(i) The changes during the preceding water year in the pressure levels or piezometric heights of the groundwater contained within pressure-level areas of the district, and the effects thereof upon the groundwater supplies within the district.
(j) The estimated changes during the current water year in the pressure levels or piezometric heights of the groundwater contained within pressure-level areas of the district, and the estimated effects thereof upon the groundwater supplies within the district.
(k) The quantity of water that should be purchased for the replenishment of the groundwater supplies of the district during the ensuing water year.
(l) The source and estimated cost of water available for the replenishment.
(m) The estimated costs of replenishing the groundwater supplies with the water so purchased.
(n) The estimated costs of purchasing, in water years succeeding the ensuing water year, that portion of the quantity of water which should be purchased for the replenishment of the groundwater supplies of the district during the ensuing water year, but which is estimated to be unavailable for purchase during the ensuing water year; estimated costs shall be based on the estimated price of water for replenishment purposes during the ensuing water year.
(o) The estimated rate of the replenishment assessment required to be levied upon the production of groundwater from the groundwater supplies within the district during the ensuing fiscal year for the purposes of accomplishing the replenishment and providing a reserve fund to purchase in future years, when available, that portion of the quantity of water which should be purchased for the replenishment of the groundwater supplies of the district during the ensuing water year, but which is estimated to be unavailable for purchase during that ensuing water year.
(p) Whether any contaminants should be removed from groundwater supplies during the ensuing fiscal year, and whether any other actions under Section 60224 should be undertaken during the ensuing fiscal year, the estimated costs thereof, and the estimated additional rate of replenishment assessment required to be levied upon the production of groundwater from the groundwater supplies within the district during the ensuing fiscal year for those purposes.
(q) Whether any program for removal of contaminants or other actions under Section 60224 should be a multiyear program or is a continuation of a previously authorized multiyear program.

SEC. 3.SEC. 5.

 Section 60328.1 of the Water Code is repealed.