BILL NUMBER: SBX7 5	AMENDED
	BILL TEXT

	AMENDED IN SENATE  OCTOBER 29, 2009

INTRODUCED BY    Senator   Steinberg
  Senators   Steinberg   and Pavley


                        OCTOBER 28, 2009

    An act to amend Section 10620 of the Water Code, relating
to water.   An act to amend Sections 6103.1 and 6103.4
of the Government Code, to amend Sections 1052, 1055, 1055.2, 1055.3,
1120, 1525, 1535, 1538, 1550, 1551, 1825, 1845, 2525, 2526, 2550,
2763.5, 5100, 5101, 5103, 5106, and 5107 of, to amend and repeal
Section 10631.5 of, to add Sections 1051.1, 1240.5, 1826, 1846, and
1847 to, to add Chapter 2.7 (commencing with Section 348) to Division
1 of, to repeal Section 5108 of, the Water Code, and to amend and
supplement the Budget Act of 2009 (Chapter 1 of the 2009-10 Third
Extraordinary Session) by amending Items 3940-001-0439 and
3940-001-3058 of Section 2.00 of the Budget Act of 2009, relating to
water resources, and making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 5, as amended, Steinberg.  Urban water suppliers: urban
water management plans.   Water resources.  
   (1) Existing law generally prohibits the state, or a county, city,
district, or other political subdivision, or any public officer or
body acting in its official capacity on behalf of any of those
entities, from being required to pay any fee for the performance of
an official service. Existing law exempts from this provision any fee
or charge for official services required pursuant to specified
provisions of law relating to water use or water quality.  
   This bill would expand the exemption to other provisions relating
to water use, including provisions that require the payment of fees
to the State Water Resources Control Board for official services
relating to statements of water diversion.  
   (2) Existing law authorizes the State Water Resources Control
Board to investigate all streams, stream systems, lakes, or other
bodies of water, take testimony relating to the rights to water or
the use of water, and ascertain whether water filed upon or attempted
to be appropriated is appropriated under the laws of the state.
Existing law requires the board to take appropriate actions to
prevent waste or the unreasonable use of water. Under existing law,
the board makes determinations with regard to the availability of
recycled water.  
   This bill would authorize the board, in conducting an
investigation or proceeding for these purposes, to order any person
or entity that diverts water or uses water to submit any technical or
monitoring report related to the diversion or use of water by that
person or entity. The bill would authorize the board, in connection
with the investigation or proceeding, to inspect the facilities of
any person or entity to determine compliance with specified water use
requirements.  
   (3) Existing law authorizes the State Water Resources Control
Board, upon the submission of a petition signed by a claimant to
water of any stream system requesting a determination of rights among
the claimants to that water, to enter an order granting the
petition. After granting the petition, the board is required to
investigate the stream system to gather information necessary to make
a determination of the water rights of that stream system. 

   This bill would authorize the board to initiate a determination of
rights under its own motion if after a hearing it finds, based on
substantial evidence, that the public interest and necessity will be
served by a determination of rights.  
   (4) Existing law declares that the diversion or use of water other
than as authorized by specified provisions of law is a trespass.
Existing law authorizes the administrative imposition of civil
liability by the board for a trespass in an amount not to exceed $500
for each day in which the trespass occurs. Moneys generated by the
imposition of civil liability under these provisions are deposited in
the Water Rights Fund.  
   This bill would provide that a person or entity committing a
trespass may be liable in an amount not to exceed the sum of $1,000
or $5,000 for each day in which the trespass occurs, as specified, or
the highest market value of the water, whichever is the greater
amount. The moneys would be required to be deposited in the Water
Rights Fund, as specified. The bill would establish the Water Rights
Protection Subaccount in the Water Rights Fund. Specified penalties
would be required to be deposited in the subaccount. The bill would
state legislative intent regarding the expenditure of the moneys in
the subaccount.  
   (5) Existing law, with certain exceptions, requires each person
who diverts water after December 31, 1965, to file with the State
Water Resources Control Board a prescribed statement of diversion and
use. Existing law requires a statement to include specified
information, including, on and after January 1, 2012, monthly records
of water diversions. Under existing law, the monthly record
requirement does not apply to a surface water diversion with a
combined diversion capacity from a natural channel that is less than
50 cubic feet per second or to diverters using siphons in the tidal
zone. Existing law subjects a person who makes a material
misstatement in connection with the filing of the diversion and use
statements to administratively imposed civil penalties in the amount
of $500 for each violation.  
   This bill would revise the types of water diversions for which the
reporting requirement does not apply, including, among other
diversions, a diversion that occurs before January 1, 2009, if
certain requirements are met. The bill would delete exceptions to the
monthly record requirement, and revise requirements relating to the
contents of the statement of diversions and use.  
   The bill would subject a person to civil liability if that person
fails to file, as required, a diversion and use statement for a
diversion or use that occurs after January 1, 2009, tampers with any
measuring device, or makes a material misstatement in connection with
the filing of a diversion and use statement. The board would be
authorized to impose the civil liability in accordance with a
specified schedule. Funds recovered pursuant to these provisions
would be required to be deposited in the Water Rights Fund, as
specified.  
   The bill would authorize the board and the Department of Water
Resources to adopt emergency regulations for the electronic filing of
reports of water diversion or use that are required to be filed with
those respective state agencies under specified statutory
provisions.  
   The bill would establish a rebuttable presumption, in any
proceeding before the board in which it is alleged that an
appropriative right has ceased or is subject to prescribed action,
that no use required to be included in a statement of diversion and
use occurred unless that use is included in a statement that is
submitted to the board within a specified time period.  
   The bill would require a person who files a statement of diversion
and use, and certain petitions involving a change in a water right,
to pay an annual fee, for deposit in the Water Rights Fund. The bill
would include as recoverable costs, for which the board may be
reimbursed from the fund upon appropriation therefor, costs incurred
in connection with carrying out requirements relating to the
statements of diversion and use and the performance of duties under
the public trust doctrine and provisions that require the reasonable
use of water.  
   (6) Existing law authorizes the State Water Resources Control
Board to issue a cease and desist order against a person who is
violating, or threatening to violate, certain requirements, including
requirements set forth in a decision or order relating to the
unauthorized use of water. Any person who violates a cease and desist
order may be liable in an amount not to exceed $1,000 for each day
in which the violation occurs. Revenue generated from these penalties
is deposited in the Water Rights Fund.  
   This bill would increase, as specified, the civil penalties that
apply to a person who violates a cease and desist order. The bill
would impose civil liability, in an amount not to exceed $500 for
each day in which a violation occurs, for a failure to comply with
various reporting or monitoring requirements, including requirements
imposed pursuant to the public trust doctrine. The bill would
authorize the board to impose additional civil liability, in an
amount not to exceed $500 for each day in which a violation occurs,
for the violation of a permit, license, certificate, or registration,
or an order or regulation involving the unreasonable use of water.
Funds derived from the imposition of these civil penalties would be
deposited in the Water Rights Fund, as specified.  
   The bill would require that, in a proceeding before the board in
which it is alleged that an appropriative water right has ceased, or
is subject to prescribed action, there would be a rebuttable
presumption that no use occurred on or after January 1, 2009, unless
that diversion or use was reported to the board within 6 months after
it is required to be filed with the board.  
   (7) The Budget Act of 2009 made appropriations for the support of
the State Water Resources Control Board for the 2009-10 fiscal year,
with certain payments from the Water Rights Fund.  
   This bill would amend and supplement the Budget Act of 2009 by
making an additional appropriation from the fund to support water
rights enforcement. The bill would, commencing with the 2010-11
fiscal year, continuously appropriate $3,750,000 on an annual basis
only from fee revenue in the fund to the board for the purpose of
funding permanent water rights enforcement positions.  
   (8) This bill would take effect only if SB 1, SB 6, and 7 of the
2009-10 7th Extraordinary Session of the Legislative are enacted and
become effective.  
   Existing law requires every urban water supplier to prepare and
adopt an urban water management plan, as prescribed. 

   This bill would make technical, nonsubstantive changes to that
provision. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    Section 6103.1 of the  
Government Code   is amended to read: 
   6103.1.  Section 6103 does not apply to any fee or charge for
official services required by  Parts   Part 1
(commencing with Section 1000), Part  2 (commencing with Section
1200)  , Part  3 (commencing with Section 2000), 
and   Part  4 (commencing with Section 4000)  ,
  Part 5 (commencing with Section 4999), or Part 5.1
(commencing with Section 5100),  of Division 2  , Division 7
(commencing with Section 13000), or Division 35 (commencing with
Section 85000)  of the Water Code.
   SEC. 2.    Section 6103.4 of the  
Government Code   is amended to read: 
   6103.4.  Section 6103 does not apply to any fee or charge for
official services required by Section 100860 of the Health and Safety
Code  , or Part 5 (commencing with Section 4999) of Division
2, or Division 7 (commencing with Section 13000), of the Water Code
 .
   SEC. 3.    Chapter 2.7 (commencing with Section 348)
is added to Division 1 of the   Water Code   , to
read:  
      CHAPTER 2.7.  WATER DIVERSION AND USE REPORTS


   348.  (a) The department or the board may adopt emergency
regulations providing for the electronic filing of reports of water
diversion or use required to be filed with the department or board
under this code, including, but not limited to, any report required
to be filed under Part 5.1 (commencing with Section 5100) of Division
2 and any report required to be filed by a water right permittee or
licensee.
   (b) Emergency regulations adopted pursuant to this section, or any
amendments thereto, shall be adopted by the department or the board
in accordance with Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. The adoption
of these regulations is an emergency and shall be considered by the
Office of Administrative Law as necessary for the immediate
preservation of the public peace, health, safety, and general
welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, any
emergency regulations or amendments to those regulations adopted
under this section shall remain in effect until revised by the
department or the board that adopted the regulations or amendments.



   Chapter 4.  Water Division and Use Reports



   348.  (a) The department or the board may adopt emergency
regulations providing for the electronic filing of reports of water
diversion or use required to be filed with the department or board
under this code, including, but not limited to, any report required
to be filed under Part 5.1 (commencing with Section 5100) of Division
2 and any report required to be filed by a water right permittee or
licensee.
   (b) Emergency regulations adopted pursuant to this section, or any
amendments thereto, shall be adopted by the department or the board
in accordance with Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. The adoption
of these regulations is an emergency and shall be considered by the
Office of Administrative Law as necessary for the immediate
preservation of the public peace, health, safety, and general
welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, any
emergency regulations or amendments to those regulations adopted
under this section shall remain in effect until revised by the
department or the board that adopted the regulations or amendments.

   SEC. 5.    Section 1051.1 is added to the  
Water Code   , to read:  
   1051.1.  (a) In conducting any investigation or proceeding
specified in Section 275 or 1051, or Article 7 (commencing with
Section 13550) of Chapter 7 of Division 7, the board may order any
person or entity that diverts or uses water to prepare and submit to
the board any technical or monitoring program reports related to that
person's or entity's diversion or use of water as the board may
specify. The costs incurred by the person or entity in the
preparation of those reports shall bear a reasonable relationship to
the need for the report and the benefit to be obtained from the
report. If the preparation of individual reports would result in a
duplication of effort, or if the reports are necessary to evaluate
the cumulative effect of several diversions or uses of water, the
board may order any person or entity subject to this subdivision to
pay a reasonable share of the cost of preparing reports.
   (b) Any order issued under this section shall be served by
personal service or registered mail on the party required to submit
technical or monitoring program reports or to pay a share of the
costs of preparing reports. Unless the board issues the order after a
hearing, the order shall inform the party of the right to request a
hearing within 30 days after the party has been served. If the party
does not request a hearing within that 30-day period, the order shall
take effect as issued. If the party requests a hearing within that
30-day period, the board may adopt a decision and order after
conducting a hearing.
   (c) Upon application of any person or entity or upon its own
motion, the board may review and revise any order issued pursuant to
this section, in accordance with the procedures set forth in
subdivision (b).
   (d) In conducting any investigation or proceeding specified in
Section 275 or 1051, or Article 7 (commencing with Section 13550) of
Chapter 7 of Division 7, the board may inspect the facilities of any
person or entity to ascertain whether the purposes of Section 100 and
this division are being met and to ascertain compliance with any
permit, license, certification, registration, decision, order, or
regulation issued under Section 275, this division, or Article 7
(commencing with Section 13550) of Chapter 7 of Division 7. The board
shall adopt regulations for procedures pursuant to Article 13
(commencing with Section 11460.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code, and any time extensions
necessary to implement those regulations. Except in the event of an
emergency affecting the public health or safety, the inspection shall
be made with the consent of the owner or possessor of the facilities
or, if the consent is withheld, with a warrant duly issued pursuant
to the procedure set forth in Title 13 (commencing with Section
1822.50) of Part 3 of the Code of Civil Procedure. 
   SEC. 6.    Section 1052 of the   Water Code
  is amended to read: 
   1052.  (a) The diversion or use of water subject to this division
other than as authorized in this division is a trespass. 
   (b) Civil liability may be administratively imposed by the board
pursuant to Section 1055 for a trespass as defined in this section in
an amount not to exceed five hundred dollars ($500) for each day in
which the trespass occurs.  
   (c) 
    (b)  The Attorney General, upon request of the board,
shall institute in the superior court in and for any county 
wherein   in which  the diversion or use is
threatened, is occurring, or has occurred  appropriate
  an  action for the issuance of injunctive relief
as may be warranted by way of temporary restraining order,
preliminary injunction, or permanent injunction. 
   (d) 
    (c)     (1)  Any person or entity
committing a trespass as defined in this section may be liable
 for a sum   in an amount  not to exceed
 five hundred dollars ($500) for each day in which the
trespass occurs. The   the greater of either of the
following amounts:  
   (A) One thousand dollars ($1,000) for each day in which the
trespass occurs for the first enforcement proceeding or five thousand
dollars ($5,000) for each day in which the trespass occurs for any
subsequent enforcement proceeding.  
   (B) The highest market value of the water subject to the trespass.

    (2)     The  Attorney General, upon
request of the board, shall petition the superior court to impose,
assess, and recover any sums pursuant to this subdivision. In
determining the appropriate amount, the court shall take into
consideration all relevant circumstances, including, but not limited
to, the extent of harm caused by the violation, the nature and
persistence of the violation, the length of time over which the
violation occurs, and  ,   with respect to the violator,
the ability to pay, the effect on the ability to continue in
business,  the corrective action, if any, taken by the violator
 , and other matters as justice may require  . 
   (3) Civil liability may be imposed by the board pursuant to
Section 1055.  
   (e) 
    (d)     (1)  All funds recovered
pursuant to this section shall be deposited in the Water Rights Fund
established pursuant to Section 1550. 
   (2) Any funds recovered pursuant to this section that exceed the
amounts that were authorized before the effective date of the
amendments made to this section by ____ of the 2009-10 Seventh
Extraordinary Session of the Legislature shall be deposited in the
Water Rights Protection Subaccount in the Water Rights Fund
established pursuant to Section 1550.  
   (f) 
    (e)  The remedies prescribed in this section are
cumulative and not alternative.
   SEC. 7.    Section 1055 of the   Water Code
  is amended to read: 
   1055.  (a) The executive director of the board may issue a
complaint to any person or entity on which administrative civil
liability may be imposed pursuant to Section 1052,  Section
1536, Section 1845,   Article 4 (commencing with Section
1845) of Chapter 12 of Part 2 of Division 2,  or Section 5107.
The complaint shall allege the act or failure to act that constitutes
a trespass or violation, the provision of law authorizing civil
liability to be imposed, and the proposed civil liability.
   (b) The complaint shall be served by personal notice or certified
mail, and shall inform the party served that the party may request a
hearing not later than 20 days from the date the party was served.
The hearing shall be before  the board, or  a member of the
board  as it may specify   in accordance with
Section 183  . 
   (c) After any hearing, the member shall report a proposed decision
and order to the board and shall supply a copy to the party served
with the complaint, the board's executive director, and any other
person requesting a copy. The member of the board acting as hearing
officer may sit as a member of the board in deciding the matter. The
board, after making an independent review of the record and taking
any additional evidence as may be necessary that could not reasonably
have been offered before the hearing officer, may adopt, with or
without revision, the proposed decision and order.  
   (c) The board may adopt an order setting administrative civil
liability, or determining that no liability will be imposed, after
any necessary hearing. 
   (d) Orders setting administrative civil liability shall become
effective and final upon issuance thereof and payment shall be made.
   SEC. 8.    Section 1055.2 of the   Water
Code   is amended to read: 
   1055.2.  No person or entity shall be subject to both civil
liability imposed under Section 1055 and civil liability imposed by
the superior court under  subdivision (d) of 
Section 1052,  Section 1536, or Section  1845  ,
or 1846  for the same act or failure to act.
   SEC. 9.    Section 1055.3 of the   Water
Code   is amended to read: 
   1055.3.  In determining the amount of civil liability, the board
shall take into consideration all relevant circumstances, including,
but not limited to, the extent of harm caused by the violation, the
nature and persistence of the violation, the length of time over
which the violation occurs, and  with respect to the violator,
the ability to pay, the effect on the ability to continue in
business,  the corrective action, if any, taken by the violator
 , and other matters as justice may require  .
   SEC. 10.    Section 1120 of the   Water Code
  is amended to read: 
   1120.  This chapter applies to any decision or order issued under
this part or Section 275, Part 2 (commencing with Section 1200), Part
2 (commencing with Section 10500) of Division 6, Article 7
(commencing with Section 13550) of Chapter 7 of Division 7, 
Section 85230,  or the public trust doctrine.
   SEC. 11.    Section 1240.5 is added to the  
Water Code   , to read:  
   1240.5.  In any proceeding before the board in which it is alleged
that a right to appropriate water has ceased or is subject to
forfeiture or revocation for nonuse, there shall be a rebuttable
presumption that no use occurred unless that use is included in a
statement submitted pursuant to any reporting or monitoring
requirement established under any permit, license, certificate,
registration, decision or order, or regulation issued by the board
pursuant to this division, Section 275, Article 7 (commencing with
Section 13550) of Division 7, or the public trust doctrine under this
part, and the statement is submitted within six months after it is
required to be filed with the board. This section does not apply to
any diversion or use that occurred before January 1, 2009. 
   SEC. 12.    Section 1525 of the   Water Code
  is amended to read: 
   1525.  (a) Each person or entity who holds a permit or license to
appropriate water, and each lessor of water leased under Chapter 1.5
(commencing with Section 1020) of Part 1, shall pay an annual fee
according to a fee schedule established by the board.
   (b) Each person or entity who files any of the following shall pay
a fee according to a fee schedule established by the board:
   (1) An application for a permit to appropriate water.
   (2) A registration of appropriation for a small domestic use or
livestock stockpond  use  .
   (3) A petition for an extension of time within which to begin
construction, to complete construction, or to apply the water to full
beneficial use under a permit.
   (4) A petition to change the point of diversion, place of use, or
purpose of use, under a  registration for small domestic use or
livestock stockpond use, or under a  permit or license.
   (5) A petition to change the conditions of a permit or license,
requested by the permittee or licensee, that is not otherwise subject
to paragraph (3) or (4). 
   (6) A petition under Section 1707 or 1740 to change the point of
diversion, place of use, or purpose of use of a water right that is
not subject to a permit or license to appropriate water. 

   (6) 
    (7)  A petition to change the point of discharge, place
of use, or purpose of use, of treated wastewater, requested pursuant
to Section 1211. 
   (7) 
    (8)  An application for approval of a water lease
agreement. 
   (8) 
    (9)  A request for release from priority pursuant to
Section 10504. 
   (9) 
    (10)  An application for an assignment of a state-filed
application pursuant to Section 10504. 
   (11) A statement of water diversion and use pursuant to Part 5.1
(commencing with Section 5100). 
   (c) The board shall set the fee schedule authorized by this
section so that the total amount of fees collected pursuant to this
section equals that amount necessary to recover costs incurred in
connection with the issuance, administration, review, monitoring, and
enforcement of permits, licenses, certificates, and registrations to
appropriate water, water leases,  statements of diversion and
use,  and orders approving changes in point of discharge, place
of use, or purpose of use of treated wastewater. The board may
include, as recoverable costs, but is not limited to including, the
costs incurred in reviewing applications, registrations, 
statements of diversion and use,  petitions and requests,
prescribing terms of permits, licenses, registrations, and change
orders, enforcing and evaluating compliance with permits, licenses,
certificates, registrations, change orders, and water leases,
inspection, monitoring, planning, modeling, reviewing documents
prepared for the purpose of regulating the diversion and use of
water, applying and enforcing  the public trust doctrine, Section
275,  the prohibition set forth in Section 1052 against the
unauthorized diversion or use of water subject to this division, 
the requirements under Part 5.1 (commencing with Section 5100) for
filing statements of diversion and use,  and the administrative
costs incurred in connection with carrying out these actions.
   (d) (1) The board shall adopt the schedule of fees authorized
under this section as emergency regulations in accordance with
Section 1530.
   (2) For filings subject to subdivision (b), the schedule may
provide for a single filing fee or for an initial filing fee followed
by an annual fee, as appropriate to the type of filing involved, and
may include supplemental fees for filings that have already been
made but have not yet been acted upon by the board at the time the
schedule of fees takes effect.
   (3) The board shall set the amount of total revenue collected each
year through the fees authorized by this section at an amount equal
to the revenue levels set forth in the annual Budget Act for this
activity. The board shall review and revise the fees each fiscal year
as necessary to conform with the revenue levels set forth in the
annual Budget Act. If the board determines that the revenue collected
during the preceding year was greater than, or less than, the
revenue levels set forth in the annual Budget Act, the board may
further adjust the annual fees to compensate for the over or under
collection of revenue.
   (e) Annual fees imposed pursuant to this section for the 2003-04
fiscal year shall be assessed for the entire 2003-04 fiscal year.

   (f) Fees imposed on holders of riparian water rights or rights to
water appropriated prior to December 19, 1914, pursuant to this
chapter shall bear a fair or reasonable relationship to the payor's
burden on, or benefits from, the board's water rights program funded
by those fees. 
   SEC. 13.    Section 1535 of the   Water Code
  is amended to read: 
   1535.  (a) Any fee subject to this chapter that is required in
connection with the filing of an application, registration, request
 , statement,  or proof of claim, other than an annual fee
required after the period covered by the initial filing fee, shall be
paid to the board.
   (b) If a fee established under subdivision (b) of Section 1525,
Section 1528, or Section 13160.1 is not paid when due, the board may
cancel the application, registration, petition, request, 
statement,  or claim, or may refer the matter to the State Board
of Equalization for collection of the unpaid fee.
   SEC. 14.    Section 1538 of the   Water Code
  is amended to read: 
   1538.   (a)    In any proceeding pursuant to
Section 1052 in which it is determined that there has been a
violation of the prohibition against the unauthorized diversion or
use of water subject to this division, the board or court, as the
case may be, may impose an additional liability in the amount of 
150 percent of  any annual fees that would have been required
under this division if the diversion or use had been authorized by a
permit or license to appropriate water. 
   (b) In any proceeding pursuant to Section 5107 in which the board
imposes liability for a failure to file a statement of diversion and
use or for a material misstatement in a statement of diversion and
use, the board may impose an additional liability in the amount of
150 percent of any fees that have not been paid but would have been
required under this division if the statement of diversion and use
had been filed and did not make any material misstatement.  

   (c) The additional liability imposed under this section may
include interest, at the rate provided under Section 685.010 of the
Code of Civil Procedure, from the dates the annual fees would have
been assessed. 
   SEC. 15.    Section 1550 of the   Water Code
  is amended to read: 
   1550.   (a)    There is in the State Treasury a
Water Rights Fund, which is hereby established. 
   (b) There is hereby established the Water Rights Protection
Subaccount in the Water Rights Fund. It is the intent of the
Legislature that the moneys in the Water Rights Protection Subaccount
be available for expenditure, upon appropriation by the Legislature,
to reduce fees on water right holders, for water restoration
projects, conservancies, and for General Fund purposes.
   SEC. 16.    Section 1551 of the   Water Code
  is amended to read: 
   1551.  All of the following shall be deposited in the Water Rights
Fund:
   (a) All fees, expenses, and penalties collected by the board or
the State Board of Equalization under this chapter and Part 3
(commencing with Section 2000).
   (b) All funds collected under Section 1052,  1845, or
  Article 4 (commencing with Section 1845) of Chapter
12,   and   Section  5107.
   (c) All fees collected under Section 13160.1 in connection with
certificates for activities involving hydroelectric power projects
subject to licensing by the Federal Energy Regulatory Commission.
   SEC. 17.    Section 1825 of the  Water Code
  is amended to read: 
   1825.  It is the intent of the Legislature that the state should
take vigorous action to enforce the terms and conditions of permits
 ,  licenses, certifications, and registrations to
appropriate water, to enforce state board orders and decisions,
 and  to prevent the unlawful diversion of water
 , and to prevent the waste, unreasonable use, unreasonable
method of use, or unreasonable method of diversion   , 
 of water, and to enforce reporting and monitoring requirements
 .
   SEC. 18.    Section 1826 is added to the  
Water Code   , to read:  
   1826.  The board shall establish a schedule of penalties that
applies to small farms for de minimis water right violations under
this division. 
   SEC. 19.    Section 1845 of the   Water Code
  is amended to read: 
   1845.  (a) Upon the failure of any person to comply with a cease
and desist order issued by the board pursuant to this chapter, the
Attorney General, upon the request of the board, shall petition the
superior court for the issuance of prohibitory or mandatory
injunctive relief as appropriate, including a temporary restraining
order, preliminary injunction, or permanent injunction.
   (b) (1) Any person or entity who violates a cease and desist order
issued pursuant to this chapter may be liable  for a sum
  in an amount  not to exceed  one thousand
dollars ($1,000) for each day in which the violation occurs.
  the greater of either of the following amounts: 

   (A) One thousand dollars ($1,000) for each day in which the
violation occurs for the first enforcement proceeding or five
thousand ($5,000) for each day in which the violation occurs for any
subsequent enforcement proceeding.  
   (B) The highest market value of the water. 
   (2) Civil liability may be imposed by the superior court. The
Attorney General, upon the request of the board, shall petition the
superior court to impose, assess, and recover those sums.
   (3) Civil liability may be imposed administratively by the board
pursuant to Section 1055.
   (c) In determining the appropriate amount, the court, or the
board, as the case may be, shall take into consideration all relevant
circumstances, including, but not limited to, the extent of harm
caused by the violation, the nature and persistence of the violation,
the length of time over which the violation occurs, and  , with
respect to the  violator  , the ability to pay, the effect
on the ability to continue in business , the corrective action,
if any, taken by the violator  , and other matters as justice may
require  .
   (d)  (1)    All funds recovered pursuant to this
section shall be deposited in the Water Rights Fund established
pursuant to Section 1550. 
   (2) Any funds recovered pursuant to this section that exceed the
amounts that were authorized before the effective date of the
amendments made to this section by ____ of the 2009-10 Seventh
Extraordinary Session of the Legislature shall be deposited in the
Water Rights Protection Subaccount in the Water Rights Funds
established pursuant to Section 1550. 
   SEC. 20.    Section 1846 is added to the  
Water Code   , to read:  
   1846.  (a) Any person or entity subject to a monitoring or
reporting requirement specified in subdivision (f) who violates that
reporting or monitoring requirement, makes a material misstatement in
any record or report submitted under that reporting or monitoring
requirement, or tampers with or renders inaccurate any monitoring
device required under                                          that
reporting or monitoring requirement shall be liable for a sum not to
exceed five hundred dollars ($500) for each day in which the
violation occurs.
   (b) Civil liability may be imposed by the superior court. The
Attorney General, upon the request of the board, shall petition the
superior court to impose, assess, and recover those sums.
   (c) Civil liability may be imposed administratively by the board
pursuant to Section 1055.
   (d) In determining the appropriate amount, the court, or the
board, as the case may be, shall take into consideration all relevant
circumstances, including, but not limited to, the extent of harm
caused by the violation, the nature and persistence of the violation,
the length of time over which the violation occurs, and, with
respect to the violator, the ability to pay, the effect on the
ability to continue in business, the corrective action, if any, taken
by the violator, and other matters as justice may require.
   (e) All funds recovered pursuant to this section shall be
deposited in the Water Rights Protection Subaccount in the Water
Rights Fund established pursuant to Section 1550.
   (f) (1) This section applies to any reporting or monitoring
requirement established under any permit, license, certificate,
registration, decision or order, or regulation issued by the board
pursuant to this division, Section 275, Article 7 (commencing with
Section 13550) of Division 7, or the public trust doctrine.
   (2) This section also applies to any reporting or monitoring
requirement established by the department under Section 275, if the
department requests enforcement pursuant to this section.
   (3) This section does not provide a basis for imposing liability
on a watermaster who is subject to reporting or monitoring
requirements but does not divert or use the water subject to those
requirements. 
   SEC. 21.    Section 1847 is added to the  
Water Code   , to read:  
   1847.  (a) Any person or entity who violates any term or condition
of a permit, license, certificate, or registration issued under this
division or any order or regulation adopted by the board under
Section 275 may be liable in an amount not to exceed five hundred
dollars ($500) for each day in which the violation occurs.
   (b) Civil liability may be imposed by the superior court. The
Attorney General, upon the request of the board, shall petition the
superior court to impose, assess, and recover those sums.
   (c) Civil liability may be imposed administratively by the board
pursuant to Section 1055.
   (d) In determining the appropriate amount, the court, or the
board, as the case may be, shall take into consideration all relevant
circumstances, including, but not limited to, the extent of harm
caused by the violation, the nature and persistence of the violation,
the length of time over which the violation occurs, and, with
respect to the violator, the ability to pay, the effect on the
ability to continue in business, the corrective action, if any, taken
by the violator, and other matters as justice may require.
   (e) No liability shall be recoverable under this section for any
violation for which liability is recovered under Section 1052 or
1846.
   (f) All funds recovered pursuant to this section shall be
deposited in the Water Rights Protection Subaccount in the Water
Rights Fund established pursuant to Section 1550. 
   SEC. 22.    Section 2525 of the   Water Code
  is amended to read: 
   2525.  Upon petition signed by one or more claimants to water of
any stream system, requesting the determination of the rights of the
various claimants to the water of that stream system, the board
shall, if, upon investigation, it finds the facts and conditions are
such that the public interest and necessity will be served by a
determination of the water rights involved, enter an order granting
the petition and make proper arrangements to proceed with the
determination.  The board may initiate a determination of rights
under its own motion if after a hearing it finds   , based
on substantial evidence,   that the public interest and
necessity will be served by a determination of the rights involved.

   SEC. 23.    Section 2526 of the   Water Code
  is amended to read: 
   2526.  As soon as practicable after granting the petition  or
motion  the board shall prepare and issue a notice setting forth
the following:
   (a) The facts of the entry of the order and of the pendency of the
 proceedings;   proceedings. 
   (b) That all claimants to rights to the use of water of the stream
system are required to inform the board within 60 days from the date
of the notice, or such further time as the board may allow, of their
intention to file proof of  claim;   claim.

   (c) The date prior to which all claimants to rights to the water
of the stream system shall notify the board in writing of their
intention to file proof of claim and the address to which all
subsequent notices to the claimant relating to the proceedings may be
 sent;   sent. 
   (d) A statement that all claimants will be required to make proof
of their claims at a time to be fixed by the board after the
conclusion of its investigation.
   SEC. 24.    Section 2550 of the   Water Code
  is amended to read: 
   2550.  As soon as practicable after granting the petition  or
motion  , the board shall begin an investigation of the stream
system, of the diversion of water, of all beneficial uses being made
of the water, and of the water supply available for those uses, and
shall gather such other data and information as may be essential to
the proper determination of the water rights in the stream system.
   SEC. 25.    Section 2763.5 of the   Water
Code   is amended to read: 
   2763.5.  (a) No exception to the order of determination shall be
considered, except in the court's discretion for good cause shown,
unless the matter of the exception was presented to the board in the
form of an objection. Good cause includes, but is not limited to, the
existence of newly discovered relevant evidence which, in the
exercise of reasonable diligence, could not have been presented to
the board during the board's proceedings.
   (b) This section does not apply to persons to whom the board did
not mail either (1) written notice of the board meeting at which the
petition  or motion  pursuant to Section 2525 is to be
considered as an item of business, or (2) written notice of the
pendency of the proceedings pursuant to Section 2526.
   SEC. 26.    Section 5100 of the   Water Code
  is amended to read: 
   5100.  As used in this part:
   (a) "Best available technologies" means technologies at the
highest technically practical level, using flow totaling devices, and
if necessary, data loggers and telemetry.
   (b) "Best professional practices" means practices attaining and
maintaining the accuracy of measurement and reporting devices and
methods.
   (c) "Diversion" means taking water by gravity or pumping from a
surface stream or subterranean stream flowing through a known and
definite channel, or other body of surface water, into a canal,
pipeline, or other conduit, and includes impoundment of water in a
reservoir.
   (d) "Person" means all persons whether natural or artificial,
including the United States of America, State of California, and all
political subdivisions, districts, municipalities, and public
agencies. 
   (e) "Tidal zone" means those portions of the Sacramento-San
Joaquin Delta as described in Section 12220 that are ordinarily
subject to tidal action. 
   SEC. 27.    Section 5101 of the   Water Code
  is amended to read: 
   5101.  Each person who, after December 31, 1965, diverts water
shall file with the board, prior to July 1 of the succeeding year, a
statement of his  or her  diversion and use  ;
provided, however, that no statement need   , except
that a statement is not required to  be filed if the diversion
is any of the following:
   (a) From a spring  which   that  does
not flow off the property on which it is located  and from which
the person's aggregate diversions do not exceed 25 acre-feet in any
year  .
   (b) Covered by  an application,   a
registration for small domestic or livestock stockpond uses, or 
permit or license to appropriate water on file with the board.
   (c) Included in a notice filed pursuant to Part 5 (commencing with
Section 4999)  of this division  .
   (d) Regulated by a watermaster appointed by the department 
 and included in annual reports filed with a court or the
board by the watermaster, which reports identify the persons who have
diverted water and describe the general purposes and the place, the
use, and the quantity of water that has been diverted from each
source  . 
   (e) Reported by the department in its hydrologic data bulletins.
 
   (f) Included in the consumptive use data for the delta lowlands
published by the department in its hydrologic data bulletins.
 
   (g) 
    (e   )  Included in annual reports filed with a
court or the board by a watermaster appointed by a court or pursuant
to statute to administer a final judgment determining rights to
water, which reports identify the persons who have diverted water and
give the general place of use and the quantity of water 
which   that  has been diverted from each source.

   (h) 
    (f)  For use in compliance with  the provisions
of  Article 2.5 (commencing with Section 1226)  or
Article 2.7 (commencing with Section 1228)  of Chapter 1 of Part
2  of this division  . 
   (g) A diversion that occurs before January 1, 2009, if any of the
following applies:  
   (1) The diversion is from a spring that does not flow off the
property on which it is located, and the person's aggregate
diversions exceed 25 acre-feet in any year.  
   (2) The diversion is covered by an application to appropriate
water on file with the board.  
   (3) The diversion is reported by the department in its hydrologic
data bulletins.  
   (4) The diversion is included in the consumptive use data for the
Delta lowlands published by the department in its hydrologic data
bulletins. 
   SEC. 28.    Section 5103 of the   Water Code
  is amended to read: 
   5103.  Each statement shall be prepared on a form provided by the
board. The statement shall include all of the following information:
   (a) The name and address of the person who diverted water and of
the person filing the statement.
   (b) The name of the stream or other source from which water was
diverted, and the name of the next major stream or other body of
water to which the source is tributary.
   (c) The place of diversion.  If a public land survey has
been made, location of   The location of the 
diversion works shall be  described   depicted
on a specific United States Geological Survey topographic map, or
shall be identified using the California Coordinate System, or
latitude and longitude measurements. If assigned, the public land
description  to the nearest 40-acre subdivision  . If
not, it shall be described by reference to nearest local landmarks or
other recorded surveys   and the assessor's parcel
number shall a   lso   be   provided 
.
   (d) The capacity of the diversion works and of the storage
reservoir, if any, and the months in which water was used during the
preceding calendar year.
   (e) (1) On and after January 1, 2012, monthly records of water
diversions. The measurements of the diversion shall be made using
best available technologies and best professional practices. Nothing
in this paragraph shall be construed to require the implementation of
technologies or practices  that are   by a
person who provides to the board documentation demonstrating that the
implementation of those practices is  not locally cost
effective. 
   (2) Paragraph (1) does not apply to a surface water diversion with
a combined diversion capacity from a natural channel that is less
than 50 cubic feet per second or to diverters using siphons in the
tidal zone.  
   (3) 
    (2)  (A) The terms of, and eligibility for, any grant or
loan awarded or administered by the department, the board, or the
California Bay-Delta Authority  or its successor  on behalf
of a person that is subject to paragraph (1) shall be conditioned on
compliance with that paragraph.
   (B) Notwithstanding subparagraph (A), the board may determine that
a person is eligible for a grant or loan even though the person is
not complying with paragraph (1), if both of the following apply:
   (i) The board determines that the grant or loan will assist the
grantee or loan recipient in complying with paragraph (1).
   (ii) The person has submitted to the board a one-year schedule for
complying with paragraph (1).
   (C) It is the intent of the Legislature that the requirements of
this subdivision shall complement and not affect the scope of
authority granted to the board by provisions of law other than this
article. 
   (f) For persons not subject to paragraph (1) of subdivision (e), a
description of the acreage of each crop irrigated, the average
number of people served with water, the average number of stock
watered, and the nature and extent of any other use during the
preceding calendar year, or other equivalent information that
indicates the quantity of water used as may be prescribed by the
board. Those who maintain water measuring devices and keep monthly
records of water diversions shall state the quantity of water
diverted by months during the preceding calendar year. 

   (g) 
    (f)  The purpose of use. 
   (h) 
    (g)  A general description of the area in which the
water was used.  If the water was used on an area within the
  1/16   section containing the
point of diversion, a statement to that effect will suffice;
otherwise a description or sketch of the general area of use shall be
given.   The location of the place of use shall be
depicted on a specific United States Geological Survey topographic
map and on any other maps with identifiable landmarks. If assigned,
the public land description to the nearest 40-acre subdivision and
the assessor's parcel number shall also be provided.  
   (i) 
    (h)  The year in which the diversion was commenced as
near as is known.
   SEC. 29.    Section 5106 of the   Water Code
  is amended to read: 
   5106.  (a) Neither the statements submitted under this part nor
the determination of facts by the board pursuant to Section 5105
shall establish or constitute evidence of a right to divert or use
water.
   (b) (1) The board may rely on the names and addresses included in
statements submitted under this part for the purpose of determining
the names and addresses of persons who are to receive notices with
regard to proceedings before the board.
   (2) Notwithstanding paragraph (1), any person may submit, in
writing, a request to the board to provide notification to a
different address, and the board shall provide the notification to
that address.
   (3) If the board provides notice to persons who file statements
under this part, the notice shall not be determined to be inadequate
on the basis that notice was not received by a person, other than a
party to whom the board's action is directed, who fails to file a
statement required to be filed under this part.
   (4) This subdivision does not affect the requirement in Section
2527 to provide notice to all persons who own land that appears to be
riparian to the stream system.
   (c) In any proceeding before the board to determine whether an
application for a permit to appropriate water should be approved, any
statement submitted under this part or determination by the board
pursuant to Section 5105 is evidence of the facts stated therein.

   (d) (1) In any proceeding before the board in which it is alleged
that an appropriative right has ceased or is subject to forfeiture
for nonuse because water has not been put to beneficial use, there
shall be a rebuttable presumption that no use required to be included
in a statement submitted under this part occurred unless that use is
included in a statement submitted under this part and that the
statement is submitted within six months after it is required to be
filed with the board.  
   (2) Paragraph (1) does not apply to any use that occurred before
January 1, 2009. 
   SEC. 30.    Section 5107 of the   Water Code
  is amended to read: 
   5107.  (a) The making of any willful misstatement pursuant to this
part is a misdemeanor punishable by a fine not exceeding one
thousand dollars ($1,000) or by imprisonment in the county jail for
not to exceed six months, or both.
   (b) Any person who  fails to file a statement required to be
filed under this part for a diversion or use that occurs after
January 1, 2009, who tampers with any measuring device, or who 
makes a material misstatement pursuant to this part may be liable
civilly as provided in  subdivision (c)  
subdivisions (c) and (d)  . 
   (c) Civil liability may be administratively imposed by the board
pursuant to Section 1055 in an amount not to exceed the following
amounts:  
   (1) For failure to file a statement, one thousand dollars
($1,000), plus five hundred dollars ($500) per day for each
additional day on which the violation continues if the person fails
to file a statement within 30 days after the board has called the
violation to the attention of that person.  
   (2) For a violation resulting from a physical malfunction of a
measuring device not caused by the person or any other unintentional
misstatement, two hundred fifty dollars ($250), plus two hundred
fifty dollars ($250) per day for each additional day on which the
measuring device continues to malfunction or the misstatement is not
corrected if the person fails to correct or repair the measuring
device or correct the misstatement within 60 days after the board has
called the malfunction or violation to the attention of that person.
 
   (3) For knowingly tampering with any measuring device or knowingly
making a material misstatement in a statement filed under this part,
twenty-five thousand dollars ($25,000), plus one thousand dollars
($1,000) for each day on which the violation continues if the person
fails to correct the violation within 30 days after the board has
called the violation to the attention of that person.  
   (4) For any other violation, five hundred dollars ($500), plus two
hundred fifty dollars ($250) for each additional day on which the
violation continues if the person fails to correct the violation
within 30 days after the board has called the violation to the
attention of that person.  
   (d) When an additional penalty may be imposed under subdivision
(c) for failure to correct a violation or correct or repair a
malfunctioning measuring device within a specified period after the
violation has been called to a person's attention by the board, the
board, for good cause, may provide for a longer period for correction
of the problem, and the additional penalty shall not apply if the
violation is corrected within the period specified by the board.
 
   (c) Civil liability may be administratively imposed by the board
pursuant to Section 1055 in an amount not to exceed five hundred
dollars ($500) for each violation. 
    (e)   In determining the appropriate amount,
the board shall consider all relevant circumstances, including, but
not limited to, all of the following factors:
   (1) The extent of harm caused by the violation.
   (2) The nature and persistence of the violation.
   (3) The length of time over which the violation occurs.
   (4) Any corrective action undertaken by the violator. 
   (5) The ability of the violator to pay.  
   (6) The effect on the ability of the violator to continue in
business.  
   (7) Other matters as justice may require.  
   (d) 
    (f)     (1)  All funds recovered
pursuant to this section shall be deposited in the Water Rights Fund
established pursuant to Section 1550. 
   (2) Any funds recovered pursuant to this section that exceed those
that were authorized before the effective date of the amendments
made to this section by ____ of the 2009-10 Seventh Extraordinary
Session of the Legislature shall be deposited in the Water Rights
Protection Subaccount in the Water Rights Fund established pursuant
to Section 1550.  
   (g) Remedies under this section are in addition to, and do not
supersede or limit, any other remedies, civil or criminal. 
   SEC. 31.    Section 5108 of the   Water Code
  is repealed.  
   5108.  Statements filed pursuant to this part shall be for
informational purposes only, and neither the failure to file a
statement nor any error in the information filed shall have any legal
consequences whatsoever other than those specified in this part.

   SEC. 32.    Item 3940-001-0439 of Section 2.00 of the
Budget Act of 2009 is amended to read: 
3940-001-0439--For support of State Water
Resources Control Board................... 238,113,000
    Schedule:
    (1)    10-Water Quality.... 439,650,000
    (2)    20-Water Rights.....   11,658,000  

                                  15,408,000 
    (3)    30.01-
           Administration......   20,886,000 
                                  21,059,000 
    (4)    30.02-Distributed
           Administration......  -20,886,000 
                                 -21,059,000 
    (5)    Reimbursements......  -8,932,000
    (6)    Amount payable from
           the General Fund
           (Item 3940-001-
           0001)............... -40,575,000
    (7)    Amount payable from
           the Unified Program
           Account (Item 3940-
           001-0028)...........    -621,000
    (8)    Amount payable from
           the Waste Discharge
           Permit Fund (Item
           3940-001-0193)...... -78,768,000
    (9)    Amount payable from
           the Marine Invasive
           Species Control
           Fund (Item 3940-001-
           0212)...............    -103,000
    (10)   Amount payable from
           the Public
           Resources Account,
           Cigarette and
           Tobacco Products
           Surtax Fund (Item
           3940-001-0235)......  -2,039,000
    (11)   Amount payable from
           the Integrated
           Waste Management
           Account, Integrated
           Waste Management
           Fund (Item 3940-001-
           0387)...............  -6,757,000
    (12)   Amount payable from
           the Water Recycling
           Subaccount (Item
           3940-001-0419)......  -1,150,000
    (13)   Amount payable from
           the Drainage
           Management
           Subaccount (Item
           3940-001-0422)......    -515,000
    (14)   Amount payable from
           the Seawater
           Intrusion Control
           Subaccount (Item
           3940-001-0424)......    -222,000
    (15)   Amount payable from
           the Underground
           Storage Tank Tester
           Account (Item 3940-
           001-0436)...........     -64,000
    (16)   Amount payable from
           the 1984 State
           Clean Water Bond
           Fund (Item 3940-001-
           0740)...............    -322,000
    (17)   Amount payable from
           the Federal Trust
           Fund (Item 3940-001-
           0890)............... -51,353,000
    (18)   Amount payable from
           the Water Rights
           Fund (Item 3940-001-
           3058)...............   -7,447,000  

                                 -11,197,000 
    (19)   Amount payable from
           the Watershed
           Protection
           Subaccount (Item
           3940-001-6013)......    -250,000
    (20)   Amount payable from
           the Santa Ana River
           Watershed
           Subaccount (Item
           3940-001-6016)......    -250,000
    (21)   Amount payable from
           the Lake Elsinore
           and San Jacinto
           Watershed
           Subaccount (Item
           3940-001-6017)......    -150,000
    (22)   Amount payable from
           the Nonpoint Source
           Pollution Control
           Subaccount (Item
           3940-001-6019)......    -200,000
    (23)   Amount payable from
           the State Revolving
           Fund Loan
           Subaccount (Item
           3940-001-6020)......     -81,000
    (24)   Amount payable from
           the Wastewater
           Construction Grant
           Subaccount (Item
           3940-001-6021)......     -23,000
    (25)   Amount payable from
           the Coastal
           Nonpoint Source
           Control Subaccount
           (Item 3940-001-
           6022)...............    -150,000
    (26)   Amount payable
           from the Water
           Security, Clean
           Drinking Water,
           Coastal and Beach
           Protection Fund of
           2002 (Item 3940-001-
           6031)...............  -3,000,000
    (27)   Amount payable from
           the Safe Drinking
             Water, Water
           Quality and Supply,
           Flood Control,
           River and Coastal
           Protection Fund of
           2006 (Item 3940-001-
           6051)...............  -4,073,000
    (28)   Amount payable from
           the Petroleum
           Underground Storage
           Tank Financing
           Account (Item 3940-
           001-8026)...........    -618,000
    (29)   Amount payable from
           the State Water
           Pollution Control
           Revolving Fund
           Administration Fund
           (Item 3940-001-
           9739)...............  -5,532,000
    Provisions:
    1.     Notwithstanding any other
           provision of law,     upon
           approval and order of the
           Director of Finance, the State
           Water Resources Control Board
           may borrow sufficient funds for
           cash purposes from special
           funds that otherwise provide
           support for the board. Any such
           loans are to be repaid with
           interest at the rate earned in
           the Pooled Money Investment
           Account.
     2.     Of the amount contained in 
            Schedule (2), $3,750,000 shall 
            be used to fund 25.0 permanent 
            positions in support of water 
            rights enforcement. 


   SEC. 33.    Item 3940-001-3058 of Section 2.00 of the
Budget Act of 2009 is amended to read: 
3940-001-3058--For support of State Water
Resources Control Board, for payment to Item
3940-001-0439, payable from the Water Rights  
  11,197,00
 Fund......................................... 
7,447,00 
  0
       Provisions: 
       1.      The increase in appropriation 
               in this item shall be paid only 
               from the fee revenue in the 
               Water Rights Fund. 


   SEC. 34.    Commencing with the 2010-11 fiscal year,
and notwithstanding Section 13340 of the Government Code, three
million seven hundred fifty thousand dollars ($3,750,000) is hereby
continuously appropriated, without regard to fiscal years, on an
annual basis, only from the fee revenue in the Water Rights Fund to
the State Water Resources Control Board for the purposes of funding
25.0 permanent water right enforcement positions, as provided in
Schedule (2) of Item 3940-001-0439 of Section 2.00 of the Budget Act
of 2009, as amended by this act. 
   SEC. 35.    This act shall take effect only if Senate
Bill 1, Senate Bill 6, and Senate Bill 7 of the 2009-10 Seventh
Extraordinary Session of the Legislature are enacted and become
effective.  
  SECTION 1.    Section 10620 of the Water Code is
amended to read:
   10620.  (a) Each urban water supplier shall prepare and adopt an
urban water management plan in the manner set forth in Article 3
(commencing with Section 10640).
   (b) Each person that becomes an urban water supplier shall adopt
an urban water management plan within one year after it has become an
urban water supplier.
   (c) An urban water supplier indirectly providing water shall not
include planning elements in its water management plan, as provided
in Article 2 (commencing with Section 10630), that would be
applicable to urban water suppliers or public agencies directly
providing water, or to their customers, without the consent of those
suppliers or public agencies.
   (d) (1) An urban water supplier may satisfy the requirements of
this part by participation in areawide, regional, watershed, or
basinwide urban water management planning if those plans will reduce
preparation costs and contribute to the achievement of conservation
and efficient water use.
   (2) Each urban water supplier shall coordinate the preparation of
its plan with other appropriate agencies in the area, including other
water suppliers that share a common source, water management
agencies, and relevant public agencies, to the extent practicable.
   (e) An urban water supplier may prepare the plan with its own
staff, by contract, or in cooperation with other governmental
agencies.
   (f) An urban water supplier shall describe in the plan water
management tools and options used by that entity that will maximize
resources and minimize the need to import water from other regions.