BILL ANALYSIS Ó 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