BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 408                      HEARING:  6/12/13
          AUTHOR:  Bonta                        FISCAL:  Yes
          VERSION:  4/15/13                     TAX LEVY:  No
          CONSULTANT:  Austin                   

                  MUNICIPAL UTILITY DISTRICTS' BOARD ELECTIONS
          

          Allows seven member municipal utility district boards to  
          appoint board members to uncontested seats.


                           Background and Existing Law  

          In 1965, the Legislature approved the Uniform District  
          Election Law (UDEL), which allows special district boards  
          to appoint candidates for uncontested board seats (AB 1892,  
          Porter, 1965).   Several special districts incorporated the  
          UDEL into their enabling acts giving them the same  
          authority to appoint uncontested candidates who are running  
          in uncontested races for seats on district boards.

          Current law allows cities, regional park and open-space  
          districts, water storage districts, water replenishment  
          districts, school districts, and special districts that  
          have incorporated UDEL into their enabling acts to appoint  
          uncontested candidates in place of elections.

          In 1921, the Legislature enacted the Municipal Utility  
          District (MUD) Act (SB 755, Spence, 1921).   The  
          Legislature later allowed any district formed prior to  
          January 1, 1974, with a population of 1,000,000 or more on  
          that date to increase the size of its board of directors  
          from five to seven members (SB 379, Nejedley, 1973).

          East Bay Municipal Utility District (EBMUD) has a publicly  
          elected seven-member board of directors.  EBMUD was  
          established by vote in 1923, and provides drinking water  
          for 1.3 million customers in Alameda and Contra Costa  
          counties.    EBMUD supplies water to East Bay customers and  
          treats wastewater before it is discharged to the bay.  

          Unlike most other local governments, EBMUD's principal act  
          does not allow its board to appoint candidates to seats  




          AB 408 -- 4/15/13 -- Page 2  


          that are uncontested in an election.  EBMUD wants the same  
          authority to appoint candidates to its board directors that  
          state law grants to other local governments.



                                   Proposed Law  

          AB 408 allows seven member municipal utility district  
          boards, at a regular or special meeting held within a 7 day  
          period beginning after 5pm on or before the 83rd day of the  
          election and ending on or before the 76th day prior to  
          election, to adopt one of the following courses of action:
                 If one person files for candidacy, appoint that  
               person or hold an election; or,
                 If no person files for candidacy, appoint any  
               qualified person or hold an election.  

          AB 408 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.

          Specifically the bill: 
                 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.  
                 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.  
                 Requires the board to hold an election for the  
               office, if an appointment has not been made or an  
               appointment process has not been adopted by the 76th  
               day prior to the election.  
                 Requires appointed directors to take office and  
               serve exactly as if elected at an election for the  
               office. 
                 Prohibits the elections official from accepting any  
               statement filing of a write-in candidate submitted  
               after an appointment is made.
                 States that this bill's provisions are effective  
               for any election that takes place after January 1,  
               2014.  





          AB 408 -- 4/15/13 -- Page 3  


          
          AB 408 provides that no reimbursement will be made because  
          the local agency is requesting the authority established by  
          this bill.  


                               State Revenue Impact
           
          No estimate.







                                     Comments  

          1.  Purpose of the bill  .  East Bay Municipal Utility  
          District is looking for ways to be more efficient and cut  
          costs.  In the last 6 EBMUD elections, races for 15 of the  
          available 21 elected seats were uncontested.   Although,  
          the candidates ran unopposed, EBMUD's ratepayers had to pay  
          for the election costs.  It appears that in the two  
          counties EBMUD serves (Alameda and Contra Costa), EBMUD is  
          the only special district that cannot use an appointment  
          process for uncontested elections.  For the 2011-2012  
          election the author's office identified 36 special  
          districts in Alameda and Contra Costa counties that used an  
          appointment process for uncontested election candidates.  
          For that same election, EBMUD's ratepayers paid $475,000 in  
          election costs for three uncontested seats because the MUD  
          Act does not contain the appointment provisions.  AB 408  
          adds appointment provisions that will be used to save EBMUD  
          ratepayers money.  

          2.  Apply to all  ?   EBMUD and Sacramento Municipal Utility  
          District (SMUD) have seven member boards.  The other three  
          MUDs have five member boards.  AB 408 only applies to MUDs  
          with seven member boards.  If the bill's provisions are  
          good for districts with seven member boards, should this  
          tool also be available for others?  The Committee may wish  
          to consider amending AB 408 to apply to all MUDs.


                                 Assembly Actions  






          AB 408 -- 4/15/13 -- Page 4  


          Assembly Local Government        9-0
          Assembly Elections and Redistricting 70-0
          Assembly Appropriations            17-0
          Assembly Floor                     70-0 


                         Support and Opposition  (6/6/13)

           Support  :  East Bay Municipal Utility District; California  
          Association of Sanitation Agencies; California Special  
          Districts Association; Sacramento Municipal Utility  
          District.

           Opposition  : Unknown.