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SB-204 State Water Project: contracts.(2019-2020)

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Date Published: 03/18/2019 02:00 PM
SB204:v98#DOCUMENT

Amended  IN  Senate  March 18, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 204


Introduced by Senator Dodd
(Principal coauthor: Assembly Member Frazier)
(Coauthors: Senators Galgiani, Glazer, and Pan)
(Coauthors: Assembly Members Cooper, Eggman, Grayson, and McCarty)

February 04, 2019


An act to add Section 6525.5 to the Government Code, and to add Section 147.6 to, and to repeal and add Section 147.5 of, the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 204, as amended, Dodd. State Water Project: contracts.
(1) Under existing law, the Department of Water Resources operates the State Water Resources Development System, known as the State Water Project, in accordance with the California Water Resources Development Bond Act to supply water to persons and entities in the state. Existing law requires the department to present to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature the details of the terms and conditions of a long-term water supply contract between the department and a state water project contractor and to submit a copy of one long-term contract, as prescribed.
This bill would instead require the department to provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors. The bill would require the department, before the execution of a specified proposed amendment to a long-term water supply contract and at least 60 days before final approval of such an amendment, to submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature certain information regarding the terms and conditions of a proposed amendment of a long-term water supply contract and to submit a copy of the long-term contract as it is proposed to be amended. The bill would prohibit the department from finally approving a long-term water supply contract for 90 days after the first hearing by the Legislature to review the proposed amendment, as specified.
(2) Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies to enter into an agreement to jointly exercise any power common to the contracting parties.
The bill would require a certain joint powers authority, at least 60 days before it enters into a contract valued at $5,000,000 or more for the planning, design, or construction of California WaterFix, to submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature certain information regarding the proposed contract. The bill would prohibit the joint powers authority from finally approving a contract for 90 days after the first hearing by the Legislature to review the proposed contract.
(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the Sacramento-San Joaquin Delta.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 6525.5 is added to the Government Code, to read:

6525.5.
 (a) For the purposes of this section, “joint powers authority” means the Delta Conveyance Design and Construction Joint Powers Authority, any successor to that authority, or any joint powers authority created for the purposes of designing or constructing a water conveyance in the Sacramento-San Joaquin Delta to be owned and operated by the Department of Water Resources.
(b) At least 60 days before the joint powers authority enters into a contract valued at five million dollars ($5,000,000) or more for the planning, design, or construction of California WaterFix, the joint powers authority shall submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature information regarding the terms and conditions of the proposed contract.

(c)If the Joint Legislative Budget Committee or relevant policy and fiscal committees of the Legislature hold a hearing to review a contract described in subdivision (b), the joint powers authority shall not finally approve the contract for 90 days after the first hearing by the Legislature to review the proposed contract.

SEC. 2.

 Section 147.5 of the Water Code is repealed.

SEC. 3.

 Section 147.5 is added to the Water Code, to read:

147.5.
 The department shall provide at least 10 days’ notice to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature before holding public sessions to negotiate any potential amendment of a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, or that would permanently transfer a contractual water amount between contractors.

SEC. 4.

 Section 147.6 is added to the Water Code, to read:

147.6.
 (a) Before the execution of an amendment to a long-term water supply contract described in subdivision (d) (c) and at least 60 days before final approval of such an amendment, the department shall submit to the Joint Legislative Budget Committee and relevant policy and fiscal committees of the Legislature information regarding the terms and conditions of a proposed amendment of a long-term water supply contract.
(b) The department shall submit the following information in compliance with subdivision (a):
(1) A summary of the provisions of the proposed amendment.
(2) The estimated costs associated with the proposed amendment, along with an estimate of the allocation of the costs borne by each contractor.
(3) A copy of the long-term contract as it is proposed to be amended.

(c)If the Joint Legislative Budget Committee or relevant policy and fiscal committees of the Legislature hold a hearing to review a proposed amendment described in subdivision (d), the department shall not finally approve the long-term water supply contract for 90 days after the first hearing by the Legislature to review the proposed amendment.

(d)

(c) (1) This section applies to a proposed amendment by the department to a long-term water supply contract that is of projectwide significance with substantially similar terms intended to be offered to all contractors, and to a proposed contract amendment that would permanently transfer a contractual water amount between contractors.
(2) This section does not apply to an amendment for which a copy of the long-term water supply contract as it was proposed to be amended was submitted by the department to the Joint Legislative Budget Committee in May 2018.

SEC. 5.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the Sacramento-San Joaquin Delta.