BILL ANALYSIS Ó
AB 408
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Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 408 (Bonta) - As Amended: April 15, 2013
SUBJECT : Municipal utility districts: elections.
SUMMARY : Establishes appointment procedures for municipal
utility districts that have a seven-member board of directors,
if no candidate or only one candidate files for candidacy on the
board. Specifically, this bill :
1)Establishes appointment procedures for municipal utility
districts with a seven-member board of directors, if no
candidate or only one candidate files for candidacy by 5 p.m.
on or before the 83rd day prior to the election.
2)Requires a county elections official to submit a certificate
of facts to the district board if no candidate or only one
candidate files for candidacy by 5 p.m. on or before the 83rd
day prior to the election.
3)Allows the board, at a regular or special meeting held on or
before the 76th day prior to election, to adopt one of the
following courses of action:
a) If one person files for candidacy, appoint that person
or hold an election; or,
b) If no person files for candidacy, appoint any qualified
person or hold an election.
4)Allows the board to adopt a process to appoint any qualified
person to office on or before the 76th day prior to the
election, and requires the board, upon adoption of the
process, to make the actual appointment prior to the election.
5)Requires the board to hold an election for the office by the
76th day prior to the election, if an appointment has not been
made or an appointment process has not been adopted.
6)Requires appointed directors to take office and serve exactly
as if elected at an election for the office.
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7)Prohibits the elections official from accepting any statement
filing of a write-in candidate submitted after an appointment
is made.
8)States that this bill's provisions are effective for any
election that takes place after January 1, 2014.
9)Provides that no reimbursement will be made because the local
agency is requesting the authority established by this bill.
EXISTING LAW :
1)Establishes the Municipal Utility District Act.
2)Establishes a board of five directors, one from each ward,
elected at large for a term of four years.
3)Requires the directors to be a resident of the ward they
represent.
4)Requires elections for directors, after the formation
election, to be elected at the same time as the general
election.
5)Requires each candidate to file a declaration of candidacy at
least 88 days prior to an election.
6)Requires the county clerk to certify the names of all
candidates at least 76 days prior to the election so their
names may be placed on the ballot.
7)Increases the board, from five to seven members for any
district formed prior to January 1, 1974 with a population of
1,000,000 or more on that date.
8)Requires directors to be elected by ward for any district
described in 7) above and has owned and operated an electric
distribution system for at least eight years with a population
of 250,000.
9)Establishes procedures for a city to fill a city elective
office if no candidate or only one candidate files for an
elective city office by 5 p.m. on the day of the deadline, or
for offices elected at large, if the number of candidates who
filed for office by 5 p.m. on the day of the deadline is less
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than or equal to the number of offices to be filled.
FISCAL EFFECT : Unknown
COMMENTS :
1)According to the author, "AB 408 protects the ratepayers of
the East Bay Municipal Utility District (EBMUD) by providing
EBMUD with the same ability that other local governments
already have to use an appointment process for uncontested
candidates rather than bearing the cost burden of an
election." This bill adds EBMUD and Sacramento Municipal
Utility District (SMUD) to a number of other districts
including transit, sanitary, park, community college, school,
water, community services, irrigation, recreation, fire
protection, healthcare, in addition to cities that have the
statutory authority to use an appointment process for
uncontested elections. This bill is sponsored by the EBMUD.
2)The author and sponsor argue that with rising election costs
EBMUD's ratepayers paid $475,000 in election costs for three
uncontested board seats in 2012. Since 2002 EBMUD's
ratepayers have paid over $1.7 million in election costs for
uncontested board seats. SMUD cites their cost of an election
at approximately $100,000 to $125,000 per ward.
3)This bill establishes a procedure for municipal utility
districts with seven-member boards to fill a board director
office if no candidate or only one candidate files for office.
This bill allows the board at a regular or special meeting
held on or before the 76th day prior to the election to adopt
one of the following actions: if only one person filed a
declaration of candidacy for a ward, the board can appoint
that person to office or, if no one filed a declaration of
candidacy, this bill permits the board to appoint a qualified
person to office.
In the approximately one-week period this bill provides the
board to take action, if no one filed a declaration of
candidacy and the board decides to appoint a qualified person,
the board can adopt a process for the appointment by the 76th
day prior to the election. The adoption of an appointment
process provides more time for the board to make the actual
appointment. This bill requires the board, upon adoption of
the process, to make an appointment on or before the day fixed
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for election. While this bill does not include specified
noticing requirements, as established in existing law for
cities, notice requirements pursuant to the Ralph M. Brown Act
apply to the regular and special meetings where the decisions
provided by this bill will be made.
According to the sponsor, there are only two municipal utility
districts as defined in current law that have seven-member
boards and will be affected by this bill. This bill is
permissive and will not prevent any municipal utility district
from holding an election for an uncontested seat.
4)Support arguments : Supporters argue extending the appointment
power to these agencies would permit, but not require, those
agencies to take advantage of the appointment power when
appropriate, thereby reducing costs to ratepayers and ensuring
that these districts have the elected leadership they need to
be successful.
Opposition arguments : Opposition may argue that this bill
creates inconsistency in the law by applying different
election procedures to municipal utility districts that have a
seven- member board versus a five-member board.
5)This bill is double-referred to the Elections and
Redistricting Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
East Bay Municipal Utility District [SPONSOR]
Association of California Water Agencies
California Association of Sanitation Agencies
Sacramento Municipal Utility District
Opposition
None on file
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
AB 408
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