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SB-1993 Public works projects: Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.(2001-2002)

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SB1993:v95#DOCUMENT

Amended  IN  Senate  April 16, 2002
Amended  IN  Senate  May 24, 2002
Amended  IN  Assembly  June 17, 2002
Amended  IN  Assembly  August 07, 2002

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Senate Bill
No. 1993

Introduced  by  Senator Machado
 (Principal Coauthor(s): Assembly Member Hertzberg)

February 22, 2002

An act to amend Section 1736 of, and to add Section 1736.1 to, the Water Code, relating to water. An act to add Section 1771.8 to the Labor Code, relating to public works.


LEGISLATIVE COUNSEL'S DIGEST


SB 1993, as amended, Machado. Long term water transfers: adverse economic imports Public works projects: Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002.
Existing law, with certain exceptions, requires the payment of not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which a public works project is performed to all workers employed on that public works project. Existing law provides that the body awarding any contract for certain public works projects is prohibited from requiring the payment of the general prevailing rate of per diem wages if the awarding body elects to adopt and enforce a prescribed labor compliance program relating to the payment of general prevailing rate wages and related laws.
The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, if approved by the voters at the November 5, 2002, statewide general election, would authorize, 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.
This bill would require the body awarding any contract for a public works project financed with funds made available by the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, if that initiative measure is approved by the voters, to adopt and enforce that above-mentioned labor compliance program for application to that public works project.

(1)Existing law authorizes the State Water Resources Control Board to approve a petition for a long-term transfer of water involving a change of point of diversion, place of use, or purpose of use if, among other things, the board determines that the change would not result in substantial injury to any legal user of water and would not unreasonably affect instream beneficial uses.

This bill, in addition, would require the board, prior to approving the petition, to determine whether the change would unreasonably adversely affect the overall economy of the county from which the water is being transferred. The bill would require a petition for a long term surface water transfer to be conclusively presumed to not unreasonably adversely affect the overall economy of the county from which the water is being transferred if the petitioner includes an economic analysis report, a letter of commitment from the transferee to pay a community impact mitigation fee, and a proposal to establish a community board that would distribute the funds generated by the payment of the mitigation fee to affected persons or entities. The bill would prescribe various requirements relating to the preparation of the economic analysis report, the payment of the mitigation fee, and the composition and functions of the community board.

Certain requirements established by the bill for local public agencies relating to the preparation of the economic analysis report and the proposal to establish the community board, as well as to service on the community board, would impose a state-mandated local program. (2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

The Legislature finds and declares all of the

SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) Payment of the prevailing rate of per diem wages to workers employed on public works projects is necessary to attract the most skilled workers for those projects and to ensure that work of the highest quality is performed on those projects.
(2) Public works projects should never undermine the wage base in a community and requiring that workers on public works projects are paid the prevailing rate of per diem wages ensures that wage base is not lowered.
(3) It is a matter of statewide concern that every public agency in California pay the prevailing rate of per diem wages to workers employed on public works projects undertaken by those public agencies.
(b) Therefore, it is the intent of the Legislature, in enacting Section 2 of this act, that every public agency in California pay the prevailing rate of per diem wages to workers employed on public works projects undertaken by that public agency.
Section 1771.8 is added to the Labor Code, to read:

1771.8.
 (a) The body awarding any contract for a public works project financed in any part with funds made available by the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Division 26.5 (commencing with Section 79500) of the Water Code) shall adopt and enforce, or contract with a third party to adopt and enforce, a labor compliance program pursuant to subdivision (b) of Section 1771.5 for application to that public works project.
(b) This section shall become operative only if the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Division 26.5 (commencing with Section 79500) of the Water Code) is approved by the voters at the November 5, 2002, statewide general election.

following:

(a)California’s economy, its environment, and the health and welfare of its citizens are all dependent upon a clean, reliable, and affordable supply of water to meet current and future needs.

(b)The voluntary transfer of water can serve as a valuable tool to meet some of California’s water needs. Nonetheless, water transfers alone will not increase California’s overall water supply and cannot be relied upon to meet the state’s long-term needs.

(c)It is in the public interest to support the voluntary transfer of surface water between willing sellers and willing buyers for all purposes, including environmental and consumptive uses.

(d)Adverse community impacts may result in the original place of use from the voluntary transfer of surface water. Communities can be immediately impacted, especially in instances of agricultural land fallowing, through the loss of jobs and support services involved in the commercial production of crops. Communities can also be impacted over time because of the foregone economic development, changes in the social structure, and loss of the agricultural resources “baseline.”

(e)It is in the public interest to facilitate voluntary surface water transfers by addressing the adverse community impacts, otherwise known as third-party impacts, by requiring the buyer/transferee in a long-term surface water transfer subject to approval by the State Water Resources Control Board to pay a fee to mitigate those potential impacts.

(f)The Legislature recognizes that third-party impacts may also result from other types of water transfers, such as short-term surface water transfers and certain transfers of groundwater.

SEC. 2.Section 1736 of the Water Code is amended to read:
1736.

The board, after providing notice and opportunity for a hearing, including, but not limited to, written notice to, and an opportunity for review and recommendation by, the Department of Fish and Game, may approve a petition for a long-term transfer if the change would not result in substantial injury to any legal user of water, would not unreasonably affect fish, wildlife, or other instream beneficial uses, and would not unreasonably adversely affect the overall economy of the county from which the water is being transferred.
SEC. 3.Section 1736.1 is added to the Water Code, to read:
1736.1.

(a)A petition for a long-term surface water transfer shall be conclusively presumed, for the purposes of Section 1736, to not unreasonably adversely affect the overall economy of the county or counties from which the water is being transferred if the petition includes all of the following:

(1)An economic analysis report.

(A)An economic analysis report shall be prepared to determine types and sources of the direct and indirect economic impacts of the proposed water transfer to third parties. The economic analysis report shall be prepared in accordance with this paragraph.

(B)The economic analysis report shall be prepared by the transferor unless the transferor is not a public agency, in which case the report shall be prepared by the chief administrative officer of the county from which the water is being transferred or, if the water is to be transferred from a city and the city has land use jurisdiction over all of the area in which economic impacts are anticipated by ____ in the place of use prior to the transfer, by the chief administrative officer of the city.

(C)The preparing agency shall make available to the public the proposed economic analysis report, and shall provide for a 30-day period during which the public may submit comments with regard to the proposed economic analysis report and the types and sources of potential economic impacts of the proposed transfer. To solicit public input, the preparing agency shall hold at least one public meeting prior to the approval of the final economic analysis report, at a place and time in the area of the place of use prior to the transfer.

(D)The preparing agency, in its final economic analysis report, shall address the types and sources of economic impacts identified by the public during the public comment period.

(E)The economic analysis report shall be relied upon by the community board described in paragraph (3) to assist the board in distributing the funds generated by the payment of the mitigation fee described in paragraph (2).

(2)A binding letter of commitment from the transferee to pay a community impact mitigation fee for deposit in a community impact fund to finance measures that will mitigate direct and indirect economic impacts of the surface water transfer as a condition of approval of the transfer. The terms of the letter of commitment shall include, but need not be limited to, all of the following:

(A)For the purposed of this subdivision, and subject to subparagraph (B), the amount of the fee shall be $1.00 per acre-foot of surface water transferred, measured at the point of transfer.

(B)For the purposes of this subdivision, if land retirement, or intermittent or limited term fallowing, will occur as part of the transfer, the mitigation fee shall be $5.00 per acre-foot of surface water transferred, measured at the point of transfer.

(C)Commencing annually on January 1, 2004, and annually thereafter, the fees described in subparagraphs (A) and (B) shall be adjusted annually to reflect changes in the California Consumer Price Index for All Urban Consumers.

(D)Acre-foot payments shall be paid over the term of the transfer, coinciding with the transfer of the water. Payments shall be made into a community impact fund established by the community board described in paragraph (3).

(E)The duration of payments shall coincide with the anticipated or contracted period of the water transfer, not to exceed a period of 30 years.

(F)Surface water exchanges that yield greater supply to the transferee shall be assessed based on the net yield of the transfer. For the purposes of this section, “net yield” means any water transfer that is not repaid with the same amount of water within a 36-month period.

(G)Disputes as to the interpretation or application of this subdivision shall be resolved by the transferee and the community board, pursuant to dispute resolution mechanisms that the transferee and community board may agree upon. Any remaining disputes shall be submitted to the state board for resolution.

(3)A proposal by the agency preparing the economic analysis report to establish an independent community board or recommendations to change an existing community board established pursuant to a prior long-term surface water transfer. The proposal shall include information relating to all of the following requirements:

(A)The proposed community board shall include a representative of the governing body of the local public agency having the maximum extent of land use jurisdiction over the transferor or areas of economic impact and shall include representatives from the place of use prior to the transfer, including representatives of employees or employee labor groups directly impacted by the transfer, as determined by ____, and owners of land engaged in the commercial production of a crop.

(B)The community board may have no more than five voting members.

(C)The proposal may prescribe the methods for selection of each board member.

(D)The proposal shall specify whether board members will serve at the pleasure of the appointing power or for a specified term, not to exceed three years. The proposal shall also specify a method of removing board members for cause.

(E)The proposal shall set forth the authority of the community board to hire employees, contract for services, and other provisions that regulate the day to day operations of the board.

(F)The proposal may contain other provisions that the preparing agency determines appropriate for achieving the purposes of this section under local conditions.

(b)(1)The community board shall distribute the funds generated by the payment of the fee described in paragraph (2) of subdivision (a) in accordance with the economic analysis report and this subdivision.

(2)Not more than 10 percent of the funds generated by the payment of the fee described in paragraph (2) of subdivision (a) shall be used for the formation and administration of the community board.

(3)Funds generated by the payment of the fee described in paragraph (2) of subdivision (a) shall first be used to mitigate the direct impacts to displaced farmworkers before those funds are applied to mitigate other impacts.

(4)Subject to paragraph (3), the community board may distribute funds to mitigate third-party impacts, including impacts on affected employees, surface water users, and providers of goods and services in the areas of place of use prior to the transfer.

(4)The community board may negotiate with the transferee with regard to the schedule of payments of the mitigation fee.

(5)The community board shall update the economic analysis report at least every five years over the contracted term of the proposed transfer, or more often if the community board determines that changes in the local economy require more frequent updates.

(6)In any year in which the revenues or expenditures of the community board exceed one hundred thousand dollars ($100,000), the community board shall contract with an independent certified public accountant to prepare an audit report of the board’s expenditures. The community board shall make the report available to the public.

(c)The board shall prepare and submit to the Legislature, on or before January 1, 2008, a report that describes, and includes recommendations regarding, the implementation of this section.
SEC. 4.

Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.