The subcommittee reviewed implementation status for the Sustainable Groundwater Management Act (SGMA) and a Department of Water Resources request related to staffing and fee collection in basins subject to state intervention.

DWR staff described the agencys role as the backstop under SGMA. They said several basins have been determined "inadequate" and the State Water Board has exercised probationary oversight in at least one basin (Tulare Subbasin) and conducted hearings for others (Kern Subbasin). DWR explained it needs ongoing staff to support SGMA administration and enforcement work.

DWR explained a specific problem: a recent court challenge of a Tulare re-probation decision has halted DWRs ability to collect fees from that basin, creating immediate administrative shortfalls. To keep essential SGMA staff and work active while fee collection is paused, DWR requested limited authority to use alternative funds (an Underground Storage Tank fund) for positions until fees can be collected or other action resolves the legal suspension.

LAO told members the proposal was reasonable given the temporary legal impediment, and recommended monitoring the court outcome, because court rulings could materially affect fee authority and SGMA implementation.

Why it matters: SGMA implementation requires state oversight and resources where local groundwater sustainability agencies do not meet statutory thresholds. Court actions that affect fee collection can delay enforcement and program continuity.

Next steps: The Legislature and committee will consider DWRs fund-swap authorization request while monitoring the pending litigation that affects fee collection in probationary basins.