BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1156
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          Date of Hearing:  May 8, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
            AB 1156 (V. Manuel Perez) - As Introduced:  February 22, 2013
           
          SUBJECT  :  Palo Verde Irrigation District Act.

           SUMMARY :  Excludes improvements on land from the total assessed  
          value of land used to determine the weighted vote of a landowner  
          in the Palo Verde Irrigation District.  Specifically,  this bill  :  
           

          1)Excludes the assessed value of improvements on the land from  
            the total assessed value 
          of land used to calculate a landowner's weighted vote in the  
            Palo Verde Irrigation District (PVID).  
          
          2)Makes findings and declarations.  

          3)Makes other non-substantive and technical changes.  

           EXISTING LAW  :

          1)Establishes the Palo Verde Irrigation District Act.  

             a)   Authorizes any person, firm, or corporation owning any  
               real property and improvements, or any interest in real  
               property and any improvements to vote in any election  
               pertaining to the affairs of the district.  

             b)   Provides one vote for each $100 of assessed valuation or  
               fraction greater than $50 for each qualified property  
               owner.  Determines the total number of votes any voter is  
               entitled to cast by dividing the total assessed value of  
               all parcels owned by the voter by 100.  

             c)   Requires the assessed valuation to be the equalized  
               assessment roll of the district preceding the election.

           FISCAL EFFECT  :  None

           COMMENTS :   

          1)PVID was established in 1923 and is comprised of mostly  








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            farmland occupying about 189 square miles of territory in  
            Riverside and Imperial Counties.  PVID contains approximately  
            131,298 acres and manages and delivers water to land within  
            its jurisdiction.  PVID is governed by a seven-member board of  
            trustees elected at large among owners of property within  
            district.  Current law limits voting rights in PVID to  
            landowners and establishes a weighted vote system based on the  
            assessed value of real property, including improvements made  
            by landowners.  The weighted vote system provides one vote for  
            each $100 dollars 
          of assessed property, including improvements and divides the  
            total assessed value by 100 to determine the number of votes  
            for each landowner.  

          2)This bill makes changes to the weighted vote system in PVID  
            and deletes the assessment 
          of improvements to property from the total assessed value used  
            to calculate each landowners weighted vote.  Under this bill  
            the assessed value of land alone would be used by the  
            calculation in current law to determine each landowner's  
            weighted vote.  This bill is sponsored by PVID.  

          3)According to the sponsor, "Given the size and the abundance of  
            sunshine in the geographic location of the PVID, it has been  
            identified as a preferred location for solar development.  The  
            PVID was identified in the 2011 programmatic environmental  
            impact statement of the United States Department of Energy and  
            the Interior identified the region as an area available for  
            solar development."

            According to the Association of California Water Agencies in  
            support, "These new solar projects typically utilize a few  
            thousand acres of land but the solar equipment can be worth  
            billions of dollars.  Because of the relatively high value of  
            the improvements compared to the size of the land being used,  
            the landowner of a solar project built under these terms would  
            have a disproportionate share of the district's votes.  This  
            bill would ensure that the votes of irrigated landowners would  
            not be diluted by any potential large solar projects in the  
            district's service area."

            According to the author and sponsor none of these projects  
            have been developed in PVID yet. 

          4)The California Constitution provides that the right to vote or  








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            serve in elected office may not be conditioned on a  
            landownership qualification.  However, in 1973, the U.S.  
            Supreme Court ruled in Salyer Land Co. v. Tulare Water  
            District, that the California statute requiring a  
            landownership qualification did not violate the Equal  
            Protection Clause of the U.S. Constitution.  The court ruled  
            there was no violation because those districts don't exercise  
            normal governmental authority and their activities  
            disproportionally affect landowners.  

            California's 93 irrigation districts function under a range of  
            statutes that are a hybrid of registered voter and  
            landowner-voter type districts.  In general, registered voters  
            are eligible to vote in district elections, but board members  
            must be landowners of the district.  Historically, the  
            Legislature has recognized landowners' special concerns for  
            irrigation districts' operations by creating unique separate  
            statutes that preserve the landowner requirement to vote in  
            districts that primarily deliver agricultural water.  Some of  
            these districts have landownership, but not residency  
            requirements.  Some districts, including PVID, Camp Far West  
            Montague, and Cordua Irrigation Districts use weighted votes  
            in their elections, based on the relative value of land under  
            ownership.  

          5)The Committee may wish to note the intent of this bill as  
            expressed by the author and supporters is to "ensure voting  
            power is equally distributed among all landowners and does not  
            favor those with preferred sites for renewable energy  
            development".  This bill does not just eliminate the  
            assessment of improvements for solar energy projects, it also  
            eliminates the assessment of any improvement made by any  
            landowner.  The Committee may wish to consider whether this  
            bill will harm individual landowners who make investments in  
            their land, pay increased assessments due to the improvements,  
            but would not have that investment go toward the calculation  
            of their weighted vote.  

            If the Committee finds the expressed concern brought forward  
            by the author and sponsor as necessitating a change in  
            statute, the Committee may wish to ask the author to consider  
            a different approach to accomplish the stated goal of ensuring  
            that voting power is equally distributed among landowners.  

          6)This bill does not include any public notification  








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            requirements to the landowners in PVID about changes to their  
            weighted vote.  As a result of this bill, the voting rights of  
            landowners will change without any notification or opportunity  
            for landowners to publically weigh in at the local level.  

           7)Committee amendment  :  To address the lack of public  
            notification to all PVID landowners whose weighted vote may be  
            changed by this bill, the Committee may wish to require PVID  
            to hold a public hearing and provide notice of the public  
            hearing pursuant to Section 6063 of the Government Code and by  
            first-class mailing to each voter.  

          8)SB 614 (Wolk), pending in the Assembly, would delete the  
            landowner qualification in statute for most irrigation  
            district board members, but does not address the districts  
            that have unique statutes.  SB 614 builds upon several  
            legislative attempts that have sought to limit landowner  
            qualifications for board directors.  In 2000, the Legislature  
            deleted the landowner qualification for board members of  
            irrigation districts that provide electricity (SB 1939,  
            Alarcón).  In 2006, the Legislature removed the landowner  
            requirement for irrigation districts that provide 3,000 or  
            more acre-feet of water to residential customers or that have  
            more than 3,000 customers (AB 159, Salinas).  

           9)Support arguments  :  Supporters argue that this bill will  
            ensure that voting power is equally distributed amongst all  
            land owners, and will not only favor those who have preferred  
            sites for solar energy development.  
                
              Opposition arguments  :  This bill may have unintended  
            consequences for current landowners in PVID that make  
            improvements to their land.  Additionally, the bill does not  
            require public notification to voters about the changes to  
            their weighted votes once the bill were to take effect.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Palo Verde Irrigation District [SPONSOR]
          Association of California Water Agencies

           Opposition 
           








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          None on file
           
          Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958