BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 408
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 408 (Bonta) - As Amended:  April 15, 2013 

          Policy Committee:                              Local  
          GovernmentVote:9-0
                        Elections and Redistricting           7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill establishes appointment procedures for municipal  
          utility districts, as specified, if no candidate or only one  
          candidate files for candidacy on the board.  Specifically, this  
          bill: 

          1)Limits its provisions to municipal utility districts with a  
            seven-member board of directors formed prior to 1974.

          2)Establishes appointment procedures when no candidate or only  
            one candidate files for candidacy on or before the 83rd day  
            prior to the election.

          3)Allows the board, on or before the 76th day prior to election  
            to:

             a)   Appoint the person who has filed, if one person files  
               for candidacy, or hold an election

             b)   Appoint any qualified person, if no person files for  
               candidacy, or hold an election.  

          FISCAL EFFECT  

          Negligible.  Although this bill is keyed a state mandate, no  
          reimbursement would be required because the affected agencies  
          are requesting this change and they can charge fees to offset  
          their costs.

           COMMENTS  








                                                                  AB 408
                                                                  Page  2


           1)Purpose  .  According to the author, AB 408 protects the  
            ratepayers of the East Bay Municipal Utility District (EBMUD)  
            and Sacramento Municipal Utility District (SMUD) by providing  
            them 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.  
             The author notes, AB 408 adds EBMUD and SMUD to the other  
            districts, including transit, sanitary, park, community  
            college, school, water, community services, irrigation,  
            recreation, fire protection and healthcare, in addition to  
            cities, that all have the statutory authority to use an  
            appointment process for uncontested elections.   

           2)Support  .  The sponsor, EBMUD, argues 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.  


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081