BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO: AB 1156                      HEARING:  6/26/13
          AUTHOR:  V. Manuel Perez              FISCAL:  Yes
          VERSION:  5/29/13                     TAX LEVY:  No
          CONSULTANT:  Austin                   

                   PALO VERDE IRRIGATION DISTRICT'S ELECTIONS
          

          Changes the weighted vote formula for the Palo Verde  
          Irrigation District's elections to entitle landowners one  
          vote for every one acre of land owned. 
           

                           Background and Existing Law  

          The California Constitution provides that the right to vote  
          or serve in elected office may not be conditioned on a  
          landownership qualification (Article I, Section 22).  

          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 has more than 3,000 special districts.  As part  
          of California's special districts, the 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 Palo Verde Irrigation District, Camp  
          Far West Montague, and Cordua Irrigation Districts use  




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          weighted votes in their elections, based on the relative  
          value of land under ownership.  

          Palo Verde Irrigation District (PVID) was established in  
          1923, by the Palo Verde Irrigation District Act, a special  
          act, and is comprised of mostly farmland occupying about  
          189 square miles of territory in Riverside and Imperial  
          counties.  PVID manages and delivers water to land within  
          its jurisdiction.  PVID is governed by a seven-member board  
          of trustees elected at large by property owners within the  
          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 current 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.  

          In 2000, the Legislature deleted the landowner  
          qualification for board members of irrigation districts  
          that provide electricity (SB 1939, Alarcón, 2000).  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, 2006).  
                                                               
          Recently, PVID has been identified as a preferred location  
          of solar development.   Concerned about potential inequity  
          in voting power caused by increased solar energy  
          development, the Palo Verde Irrigation District would like  
          to change the weighted vote formula for its elections.

                                   Proposed Law  

          Assembly Bill 1156 modifies the weighted vote of a  
          landowner in the Palo Verde Irrigation District.  

          Specifically, AB 1156:
                 Deletes provisions in current law which uses the  
               assessed value of land and improvements to calculate a  
               landowner's weighted vote. 
                 Entitles each land owner to one vote for every one  
               acre owned.  
                 Entitles a land owner that owns less than one acre  





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               of land, but at least one half of an acre, to cast one  
               vote.  
                 Requires PVID to hold a public hearing about the  
               changes to the weighted vote system.  
                 Requires PVID to provide public notice by placing  
               an advertisement in a newspaper of general  
               circulation, and by first-class mail to each landowner  
               voter in the district, as specified.  


                               State Revenue Impact
           
          Unknown.


                                     Comments  

          1.  Purpose of the bill  .  The primary purpose of Palo Verde  
          Irrigation District is to distribute irrigation water to  
          farmland and to provide agricultural drainage.   PVID users  
          are billed a flat annual charge of $52.00 per acre.  This  
          charge, plus the average irrigation district assessment,  
          results in a current total annual water cost of about  
          $61.00 per acre.  In 2011 the United States Department of  
          Energy and the Interior identified the region encompassing  
          PVID as a preferred location for solar development.  Solar  
          projects typically utilize a significant amount of land.   
          Because of the potential increased value of property,  
          including land and improvements, as a result of a landowner  
          who invests in solar development, that landowner could 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, this measure is preventative since projects  
          have yet to be developed in PVID.  However, the concern is  
          that current law could create unequal voting power in favor  
          of landowners who participate in solar development.  AB  
          1156's goal is to prevent an unfair weighted voting system  
          in the PVID. 
           
          2.   Unintended consequences  ?  Palo Verde Irrigation  
          District appears to be the first irrigation district to  
          change the weighted formula in this way.  The goal of  
          ensuring fair representation for landowners as implemented  
          through AB 1156 could favor some and reduce the influence  





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          of others.  Changing the rules of voting in PVID for a  
          problem that has yet to materialize may cause unforeseen  
          challenges.

          3.   All landowners  ? Implementing the minimum of one vote,  
          per acre, including those with a  acre or more, could  
          create new winners and losers.  The  acre minimum  
          threshold could prevent some landowners now or in the  
          future from voting if the  acre threshold were in place.   
          The Committee may wish to consider eliminating the  acre  
          provision and allow all landowners at least one vote.

          4.   Who pays  ?  Legislative Counsel says that AB 1156  
          creates a new state mandated local program.  The bill  
          provides that the State will be responsible for reimbursing  
          any local costs identified by the Commission on State  
          Mandates.  Because the bill is sponsored by the Palo Verde  
          Irrigation District and contains provisions suggested by  
          district officials, the Committee may wish to consider  
          amending the bill to add the so-called "local-request"  
          disclaimer, requiring the local government to pay for any  
          costs associated with mandates imposed by the bill.

          5.   Related Legislation.  Senate Bill 614 is currently  
          pending in the Assembly and would delete the landowner  
          qualification in statute for most irrigation district board  
          members, but does not address the districts that have  
          unique statutes, like PVID.  SB 614 builds upon several  
          legislative attempts that have sought to limit landowner  
          qualifications for board directors 
           
           

                                 Assembly Actions  

          Assembly Local Government       7-1
          Assembly Appropriations        12-5
          Assembly Floor                 66-8


                         Support and Opposition  (6/20/13)

           Support  : Palo Verde Irrigation District (Sponsor);  
          Association of California Water Agencies, Western Growers  
          Association.
           





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          Opposition  :  Unknown