BILL NUMBER: SB 554	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 26, 2016
	PASSED THE ASSEMBLY  AUGUST 24, 2016
	AMENDED IN ASSEMBLY  AUGUST 17, 2016
	AMENDED IN SENATE  JANUARY 4, 2016

INTRODUCED BY   Senator Wolk

                        FEBRUARY 26, 2015

   An act to amend Sections 12986 and 12987.5 of, the Water Code,
relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 554, Wolk. Delta levee maintenance.
   Existing law establishes a delta levee maintenance program
pursuant to which a local agency may request reimbursement for costs
incurred in connection with the maintenance or improvement of project
or nonproject levees in the Sacramento-San Joaquin Delta. Existing
law declares legislative intent to reimburse eligible local agencies
under this program, until July 1, 2018, in an amount not to exceed
75% of those costs that are incurred in excess of $1,000 per mile of
levee. Existing law, until July 1, 2018, authorizes the board to
provide funds to an eligible local agency under this program in the
form of an advance in an amount that does not exceed 75% of the
estimated state share.
   This bill would extend the authorization to reimburse eligible
local agencies under the program and advance funds until July 1,
2020.
   Existing law, on and after July 1, 2018, declares the intent of
the Legislature to reimburse eligible local agencies under this
program in an amount not to exceed 50% of those costs that are
incurred in any year for the maintenance and improvement of levees.
   This bill, on and after July 1, 2020, would declare legislative
intent to reimburse eligible local agencies under this program in an
amount not to exceed 50% of the costs.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 12986 of the Water Code, as amended by Section
3 of Chapter 549 of the Statutes of 2012, is amended to read:
   12986.  (a) It is the intent of the Legislature to reimburse an
eligible local agency pursuant to this part for costs incurred in any
year for the maintenance or improvement of project or nonproject
levees as follows:
   (1) No costs incurred shall be reimbursed if the entire cost
incurred per mile of project or nonproject levee is one thousand
dollars ($1,000) or less.
   (2) Not more than 75 percent of any costs incurred in excess of
one thousand dollars ($1,000) per mile of project or nonproject levee
shall be reimbursed.
   (3) (A) As part of the project plans approved by the board, the
department shall require the local agency or an independent financial
consultant to provide information regarding the agency's ability to
pay for the cost of levee maintenance or improvement. Based on that
information, the department may require the local agency or an
independent financial consultant to prepare a comprehensive study on
the agency's ability to pay.
   (B) The information or comprehensive study of the agency's ability
to pay shall be the basis for determining the maximum allowable
reimbursement eligible under this part. Nothing in this paragraph
shall be interpreted to increase the maximum reimbursement allowed
under paragraph (2).
   (4) Reimbursements made to the local agency in excess of the
maximum allowable reimbursement shall be returned to the department.
   (5) The department may recover, retroactively, excess
reimbursements paid to the local agency from any time after January
1, 1997, based on an updated study of the agency's ability to pay.
   (6) All final costs allocated or reimbursed under a plan shall be
approved by the Central Valley Flood Protection Board for project and
nonproject levee work.
   (7) Costs incurred pursuant to this part that are eligible for
reimbursement include construction costs and associated engineering
services, financial or economic analyses, environmental costs,
mitigation costs, and habitat improvement costs.
   (b) Upon completion of its evaluation pursuant to Sections 139.2
and 139.4, by January 1, 2008, the department shall recommend to the
Legislature and the Governor priorities for funding under this
section.
   (c) Reimbursements made pursuant to this section shall reflect the
priorities of, and be consistent with, the Delta Plan established
pursuant to Chapter 1 (commencing with Section 85300) of Part 4 of
Division 35.
   (d) This section shall become inoperative on July 1, 2020, and, as
of January 1, 2021, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2021, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 2.  Section 12986 of the Water Code, as amended by Section 2
of Chapter 549 of the Statutes of 2012, is amended to read:
   12986.  (a) It is the intent of the Legislature to reimburse from
the General Fund an eligible local agency pursuant to this part for
costs incurred in any year for the maintenance or improvement of
project or nonproject levees as follows:
   (1) No costs incurred shall be reimbursed if the entire cost
incurred per mile of levee is one thousand dollars ($1,000) or less.
   (2) Fifty percent of any costs incurred in excess of one thousand
dollars ($1,000) per mile of levee shall be reimbursed.
   (3) The maximum total reimbursement from the General Fund shall
not exceed two million dollars ($2,000,000) annually.
   (b) This section shall become operative on July 1, 2020.
  SEC. 3.  Section 12987.5 of the Water Code is amended to read:
   12987.5.  (a) In an agreement entered into under Section 12987,
the board may provide for an advance to the applicant in an amount
not to exceed 75 percent of the estimated state share. The agreement
shall provide that no advance shall be made until the applicant has
incurred costs averaging one thousand dollars ($1,000) per mile of
levee.
   (b) Advances made under subdivision (a) shall be subtracted from
amounts to be reimbursed after the work has been performed. If the
department finds that work has not been satisfactorily performed or
where advances made actually exceed reimbursable costs, the local
agency shall promptly remit to the state all amounts advanced in
excess of reimbursable costs. If advances are sought, the board may
require a bond to be posted to ensure the faithful performance of the
work set forth in the agreement.
   (c) This section shall become inoperative on July 1, 2020, and, as
of January 1, 2021, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2021, deletes or
extends the dates on which it becomes inoperative and is repealed.