Proposition 1E			00.00 10/05
	Full Extract
	Submitted as: "Disaster Preparedness and Flood Prevention Act of 2006"
	Type:  Amendment to the Public Resources Code
	Subject:  $4.09 Billion Bond to finance disaster preparedness and flood prevention projects.
	Submitters:  Perata, Nunez, California Legislature, AB 140
		Senate Vote: 36 Yes, 1 No (of 40)
		Assembly Vote: 62 Yes, 9 No (of 80)
	Supporting Organization:
		Name:	The Rebuild California Plan 1127 11th Street, Suite 950 Sacramento, CA 95814
		Email:
		Web Site: www.plan4ourfuture.org
		Phone:  - 916.443.5900
	Opposing Organization:
		Name:	California Taxpayer Protection Committee 9971 Base Line Road Elverta, CA 95626-9411
		Email: info at protecttaxpayers.com
		Web Site: www.protecttaxpayers.com
		Phone: (916) 991-9300
	Section 1
	Adds Chapter 1.699, at 5096.800, to Division 5 of the Public Resources Code
	5096.800 Titles the Chapter, Disaster Preparedness and Flood Prevention Act of 2006.
	5096.805 Defines terms.  Among these is:
		The State Plan of Flood Control, which is the state and federal flood control works, etc., of the Sacramento River Flood Control Project, and also of various flood control projects in the Sacramento River and San Joaquin River watersheds.
	5096.806 Creates the Disaster Preparedness and Flood Prevention Bond Fund of 2006 [in the State Treasury] to receive the bond proceeds.
	5096.820 (a) $4.09 billion is to be available upon appropriation.
	5096.820 (b) When expending money from this fund, the governor must:
	5096.820  (b) (1) Obtain the maximum amount of federal and local matching funds, to the extent that this does not prevent timely implementation.
	5096.820  (b) (2) Prioritize in order to achieve maximum benefits.
	5096.820  (b) (3) As part of the Governor's Annual Budget, submit a Bond Expenditure Disaster Preparedness and Flood Prevention Plan describing in detail the proposed expenditure, the amount of matching funding obtained for which projects, and an investment strategy to meet long-term needs and minimize taxpayer liabilities from flooding.
	5096.821 Of the $4.09 billion, $3 billion is to be available, upon appropriation, to the Department of Water Resources, specifically for:
	5096.821 (a) Work on levees, weirs, bypasses and facilities of the State Plan of Flood Control, in these ways:
	5096.821 (a) (1) Repairing erosion sites and removing sediment from channels and bypasses.
	5096.821 (a) (2) Evaluating and repairing levees and any other facilities of the State Plan of Flood Control.
	5096.821 (a) (3) Implementing mitigation measures for a project consistent with the above.  Participation in a "natural community conservation plan" may be funded.
	5096.821 (b) Improving or adding facilities to the State Plan of Flood Control to improve flood prevention for urban areas.  Not more than $200 million may go to any one project, with the exception of "authorized flood control improvements to Folsom Dam."
	5096.821 (c) (1) Reducing the risk of levee failure in the Delta.
	5096.821 (c) (2) Specifically, for these two purposes:
		(A) Local assistance under the "delta levee maintenance subventions program" under Part 9 of the Water Code, starting at 12980.  ["subvention" means a subsidy, in this case to the private owners of the levees to help keep them repaired.  In this part of the Water Code the state takes on the task of "approval of plans and inspection of works ... to ensure that subvention funds are properly expended and that delta levees are effectively rehabilitated and maintained."  At the same time, "the state does not thereby assume any responsibility for the safety of any delta levee against failure." (see 12983) ]
		(B) Special flood prevention projects under Chapter 2 of the Water Code, starting at 12310.  [This part of the Water Code identifies the scope of ongoing flood prevention projects, specifically "a program of flood control projects on Bethel, Bradford, Holland, Hotchkiss, Jersey, Sherman, Twitchell, and Webb Islands, and at other locations in the delta and for the Towns of Thornton and Walnut Grove, and for approximately 12 miles of levees on islands bordering Northern Suisun Bay from Van Sickle Island westerly to Montezuma Slough". (12311)]
	5096.824 (a) Of the $4.09 billion, $500 million is to be available, upon appropriation to the Department of Water Resources, for payment of the state's share of nonfederal costs of flood control authorized by any of the following:
	5096.824 (a) (1) The State Water Resources Law of 1945, as represented in the Water Code starting at 12570 and 12639.  [These cover flood control projects and reclamation of flood plains.  12570, and on, defines a strategy for selecting projects.  12639, and on, lists existing projects.]
	5096.824 (a) (2) The Flood Control Law of 1946, as represented in the Water Code starting at 12800.  [12800, and on, allows the Legislature "from time to time" to withdraw money from the General Fund to pay for flood control.]
	5096.824 (a) (3) The California Watershed Protection and Flood Prevention Law of 1946, as represented in the Water Code starting at 12850.  [12850, and on, expressly authorizes the State to spend money to "pay the costs of local cooperation required by acts of Congress for [various] types of watershed projects."  (12865) ]
	5096.824 (b) The costs described in (a) include costs incurred in connection with either of the following:
	5096.824 (b) (1) The granting of credits or loans to local agencies.
	5096.824 (b) (2) The implementation of Chapter 3.5, starting at 12840, of the Water Code.  [12840 requires that flood control projects be done in a way that will "preserve and enhance the state's fish and wildlife resources".]
	5096.824 (c) The funds made available by this section shall be allocated only to projects that are not already part of the State Plan of Flood Control.
	5096.825 Of the $4.09 billion, $290 million is to be available, upon appropriation, for work on flood protection corridors and bypasses by any of the following means:
	5096.825 (a) Acquiring easements, while preserving or enhancing the agricultural use of the property.
	5096.825 (b) Constructing new levees.
	5096.825 (c) Setting back and strengthening or modifying existing flood control levees and weirs.
	5096.825 (d) Relocating or flood proofing structures within a flood protection corridor.
	5096.825 (e) Acquiring real property, located in a flood plain, that cannot reasonably be made safe from future flooding, or for providing incentives to continue its agricultural use.
	5096.825 (f) Acquiring easements to protect or enhance flood protection corridors while considering the wildlife value of the property.
	5096.825 (g) Flood plain mapping, including the following:
	5096.825 (g)  (1) The development of flood hazard maps.
	5096.825 (g)  (2) Alluvial flood plain mapping.
	5096.827 Of the $4.09 billion, $300 million is to be available, upon appropriation, for grants for storm water flood management projects meeting the following criteria:
	5096.827 (a) Have a local cost share of at least 50%
	5096.827 (b) Are not part of the State Plan of Flood Control.
	5096.827 (c) Are designed to manage storm water runoff to reduce flood damage.
	5096.827 (d) Comply with regional water quality control plans.
	5096.827 (e) Are consistent with any applicable integrated regional water management plan.
	5096.828 These Bond funds are available for appropriation only until July 1, 2016, after which any unappropriated money will be applied toward payment of this Bond's debt.
	5096.953 The Secretary of the Resources Agency will provide an annual independent audit of expenditures of this bond money.  A list of all expenditures is to be posted at least annually, on the Resource Agency's Website.
	5096.955 (a) Authorizes sale of a total $4.09 billion in bonds, and pledges full faith and credit of the State for their repayment.
	5096.955 (b) Authorizes the State Treasurer to sell the bonds.
	5096.956 Specifies that bond handling is to be consistent with the State General Obligation Bond Law.
	5096.957 (a) Creates the Disaster Preparedness and Flood Prevention Bond Finance Committee, and makes it the committee for this bond.  Committee members will be the Treasurer, Controller and Director of Finance.
	5096.957 (b) Makes the Department of Water Resources the "board" for programs managed by the Committee.
	5096.958 Authorizes the Committee to issue bonds, at times and in amounts to be determined by the Committee.
	5096.959 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.
	5096.960 Contrary to Section 13340 of the Government Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 5096.963 below.  [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]
	5096.961 The Department of Water Resources may request the Pooled Money Investment Board [PMIB] to make a loan from the Pooled Money Investment Account [PMIA].  The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold.   [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code.  The PMIA holds state funds available for expenditure but not currently committed.]
	5096.962 The Treasurer will take all steps possible to maintain the tax-exempt status of these bonds.
	5096.963 The Director of Finance may withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold.  Amounts withdrawn MUST be deposited to the Disaster Preparedness and Flood Prevention Bond Fund of 2006.  The sale of bonds must then be used to repay the amount withdrawn.
	5096.964 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.
	5096.965 The cost to issue the bonds will be paid out of the bond proceeds, shared proportionately by each funded program.
	5096.966 Bonds may be refunded.  Voter approval of this initiative constitutes approval of refunding bonds.  ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]
	5096.967 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution.  [Prop 13]
	Section 2
	Puts Section 1 into effect following adoption of this initiative by the voters.
	Section 3
	Contrary to sections 13115 and 13117 of the Elections Code, specifies a numbering scheme and order for this and 4 other initiatives created by the Legislature.  [Section 13115 specifies a certain order in which measures are to appear on the ballot.  13117 requires Measures to be numbered in a continuous sequence.  The 1A, 1B ... sequence would otherwise violate this.]
	Section 4
	Contrary to sections 13247 and 13281 of the Elections Code, specifies the exact wording to be used on the ballot to describe this Initiative.  [13427 limits the ballot statement to an abbreviated 75 words prepared by the Attorney General; 13281 repeats this.]
	Section 5
	Declares AB 140 to be an emergency act, because of the need to get the initiative onto the November 2006 ballot
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