Bill Text: CA SB1370 | 2013-2014 | Regular Session | Amended
Bill Title: Reliable Water Supply Bond Act of 2014.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-08 - Set, first hearing. Heard for testimony only. [SB1370 Detail]
Download: California-2013-SB1370-Amended.html
BILL NUMBER: SB 1370 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 24, 2014
INTRODUCED BY Senator Galgiani
FEBRUARY 21, 2014
An act 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
surface water storage 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.
LEGISLATIVE COUNSEL'S DIGEST
SB 1370, as amended, Galgiani. Reliable Water Supply Bond Act of
2014.
(1) Existing law creates the Safe, Clean, and Reliable Drinking
Water Supply Act of 2012, which, 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.
This bill would repeal these provisions.
(2) Under existing law, various measures have been approved by the
voters to provide funds for water supply programs.
This bill would enact the Reliable Water Supply Bond Act of 2014,
which, if adopted by the voters, would authorize the issuance of
bonds in the amount of $5,100,000,000
$6,260,000,000 pursuant to the State General Obligation Bond
Law to finance surface water storage projects.
The bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 26.7 (commencing with Section 79700) of the
Water Code, as added by Section 1 of Chapter 3 of the Seventh
Extraordinary Session of the Statutes of 2009, is repealed.
SEC. 2. Division 26.7 (commencing with Section 79700) is added to
the Water Code, to read:
DIVISION 26.7. RELIABLE WATER SUPPLY BOND ACT OF 2014
CHAPTER 1. SHORT TITLE
79700. This division shall be known and may be cited as the
Reliable Water Supply Bond Act of 2014.
CHAPTER 2. FINDINGS
79701. The Legislature finds and declares all of the following:
(a) The snowpack's statewide water content is at about 20 percent
of average for this time of year, which is a mere 7 percent of the
average April 1 measurement when the snowpack normally is at its peak
before melting into streams and reservoirs to provide one-third of
the water used by California's cities and farms.
(b) In 2013 , California had the lowest
rainfall amounts on record in many areas.
(c) The Department of Water Resources estimates it will be able to
deliver only 5 percent of the slightly more than 4 million acre-feet
of State Water Project water requested for the 2014
calendar year 2014 by the 29 public agencies that
collectively supply water to more than 25 million Californians and
nearly a one million acres of irrigated
farmland.
(d) The irrigation-dependent San Joaquin Valley farms and some
other areas will be hard hit if we have another dry year without the
reservoir storage.
(e) Many farmers are feeling the effects of the drought, and are
forced to irrigate orchards during a time of year that water is not
usually required.
CHAPTER 3. RELIABLE WATER SUPPLY BOND FUND OF 2014
79702. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Reliable Water Supply Bond Fund of
2014 (hereafter the "fund ") , which
is hereby created in the State Treasury.
CHAPTER 4. SURFACE WATER STORAGE PROJECTS
79703. (a) For the purposes of this chapter, "account" means the
Water Storage Development Account created by subdivision (b).
(b) The Water Storage Development Account is hereby created in the
fund.
(c) The sum of five billion one hundred million dollars
($5,100,000,000) six billion two hundred sixty million
dollars ($6,260,000,000) is hereby transferred from the fund
to the account. Notwithstanding Section 13340 of the Government Code,
the funds in the account are hereby continuously appropriated to the
Department of Water Resources, without regard to fiscal years, for
the design, acquisition, and construction of surface water storage
projects. The following surface water storage projects identified by
the department in the CALFED Bay-Delta Programmatic Record of
Decision, dated August 28, 2000, are eligible for funding pursuant to
this chapter:
(1) Sites Reservoir located in the Counties of Colusa and Glenn,
as identified in the North-of-the-Delta Offstream Storage
Investigation Initial Alternatives Information Report, dated May
2006.
(2) Temperance Flat Reservoir located in the Counties of Fresno
and Madera, as identified in the Upper San Joaquin River Basin
Storage Investigation Initial Alternatives Information Report, dated
June 2005.
(3) Expansion of Los Vaqueros Reservoir located in the County of
Contra Costa, as identified in the Los Vaqueros Expansion
Investigation Initial Alternatives Information Report, dated
September 2005.
(3) Expansion of the San Luis Reservoir located in the County of
Merced.
(4) Expansion of the storage capacity of Shasta Dam by 18.5
acre-feet in order to increase the overall storage capacity of Lake
Shasta.
CHAPTER 5. FISCAL PROVISIONS
79720. (a) Bonds in the total amount of five billion one
hundred million dollars ($5,100,000,000) six billion
two hundred sixty million dollars ($6,260,000,000) , or so much
thereof as is necessary, not including the amount of any refunding
bonds issued in accordance with Section 79730 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.
79721. 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 subdivisions (a) and (b) of
Section 16727 of the Government Code.
79722. (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 Supply Reliability Finance Committee is hereby created. For
purposes of this division, the Water Supply Reliability Finance
Committee is "the committee" the "committee
" as that term is used in the State General
Obligation Bond Law. The committee consists of the Director of
Finance, the Treasurer, the Controller, the Director of Water
Resources, and the Secretary of the Natural Resources Agency, or
their designated representatives. The Treasurer shall serve as
chairperson of the committee. A majority of the committee may act for
the committee.
(b) For purposes of the State General Obligation Bond Law, the
Department of Water Resources is designated the "board."
79723. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to 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.
79724. 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.
79725. 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 necessary to carry out Section 79726, appropriated
without regard to fiscal years.
79726. For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount 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 79729. Any amounts withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund from proceeds received from the sale of bonds for the
purpose of carrying out this division.
79727. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold 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.
79728. 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, the cost shall be
shared proportionally by each program funded through this division by
the applicable bond sale.
79729. 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
79726. The amount of the request shall not exceed the amount of the
unsold bonds that the committee, by resolution, has authorized to be
sold for the purpose of carrying out this division. The board shall
execute any 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.
79730. 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 the approval of the issuance
of any bonds issued to refund any bonds originally issued under this
division or any previously issued refunding bonds.
79731. Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division 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 investment of bond proceeds and
for the investment of earnings on those proceeds. The Treasurer 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 required or desirable under federal law 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.
79732. 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.
SEC. 3. Section 2 of Chapter 3 of the Statutes of 2009, Seventh
Extraordinary Session, as amended by Section 1 of Chapter 74 of the
Statutes of 2012, is repealed.
SEC. 4. Section 2 of this act shall be submitted to the voters at
the November 4, 2014, statewide general election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of a statewide measure to the voters.
SEC. 5. Section 2 of this act shall take effect upon the approval
by the voters of the Reliable Water Supply Bond Act of 2014, as set
forth in that section at the November 4, 2014, statewide general
election.
SEC. 6. 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 surface water storage program at the earliest
possible date, it is necessary that this act take effect immediately.
