BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 614
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          Date of Hearing:  June 12, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                      SB 614 (Wolk) - As Amended:  June 4, 2013

           SENATE VOTE  :  25-12
           
          SUBJECT  :  Irrigation districts: directors.

           SUMMARY  :  Removes the landownership requirement from the list of  
          qualifications to serve as a director of an irrigation district  
          if the district provides water for agricultural purposes and  
          water for municipal or industrial purposes.  Specifically,  this  
          bill  :  

          1)Removes the landownership requirement from the list of  
            qualifications to serve as a director of an irrigation  
            district if the district provides water for agricultural  
            purposes and water for municipal or industrial purposes.  

          2)Deletes a provision in current law that provides an exception  
            to the landowner requirement for board members if the  
            irrigation district submits an Urban Water Management Plan.  

          3)Makes technical changes.  

           EXISTING LAW  :

          1)Requires that each director of an irrigation district be a  
            voter, a landowner in the district, and a resident of the  
            division of the district that he or she represents at the time  
            of his or her nomination or appointment and through his or her  
            entire term, unless elected at a formation hearing.  

          2)Specifies that a director elected at a formation election  
            shall be a resident and landowner in the proposed district at  
            the time of his or her nomination and a resident of the  
            division that he or she represents during his or her entire  
            term.  

          3)Provides that, in any district having no more than 15  
            landowners who are voters in the district, a person need not  
            be a voter in order to be a qualified director if  he or she  
            is a landowner of the district at the time they are nominated  








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            or appointed and during their entire term.  

          4)Provides that a director of a district that submits an Urban  
            Water Management Plan does not have to be a landowner within  
            the district if appointed or elected on or after January 1,  
            2007.  

          5)Provides that the directors in the Pixle, Hills Valley, and  
            several other irrigation districts with special acts do not  
            have to be voters in the district nor reside within the  
            division they represent, if the district has passed a  
            resolution that authorizes a person who meets only the land  
            ownership requirement to be a director.  

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)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 directors  
            (also referred to as board members) must be landowners of the  
            district.  Originally drafted in 1897, the provisions  
            requiring directors to be landowners in the Irrigation  
            District Law were drafted to recognize that landowners at that  
            time were the only ones affected by the decisions that  
            irrigation district boards made.  The Legislature has  
            continued to recognize 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.  Historically, irrigation districts only  
            provided irrigation water services to agricultural land.   
            However, as California's population has grown, more and more  
            residential and commercial development is encroaching on  
            agricultural land.  In response to this growth many irrigation  
            districts began providing retail water service to residential  
            customers that live within their jurisdictions in absence of  
            traditional retail water suppliers in the area.  

          2)This bill deletes the landowner requirement for board members  
            in irrigation districts that provide water for agricultural  
            purposes and municipal or industrial purposes.  This bill does  








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            not impact irrigation districts with special statutes.  This  
            bill also deletes the provisions established by AB 159  
            (Salinas) of 2006 that changed the requirement from a  
            landowner to resident for board members in irrigation  
            districts that submit an urban water management plan.  This  
            bill is sponsored by the California Teamsters Public Affairs  
            Council.  

          3)This bill builds upon several legislative attempts that have  
            sought to limit landowner qualifications for board directors.   
            SB 1939 (Alarc�n), Chapter 1041, Statutes of 2000, deleted the  
            landowner qualification for board members of irrigation  
            districts that provide electricity.  AB 2279 (Dymally) of 2004  
            would have deleted the landowner qualification for board  
            members of most irrigation districts, but failed passage in  
            the Senate Local Government Committee.  AB 159 (Salinas),  
            Chapter 847, Statutes of 2006, removed the landowner  
            requirement for irrigation districts that are required to  
            submit an urban water management and thus provide 3,000 or  
            more acre-feet of water to residential customers or that have  
            more than 3,000 customers.  

          4)The debate in the Legislature on landowner requirements for  
            board members in irrigation districts has most recently  
            focused on establishing a distinction between urban and  
            agricultural districts and the rights of those residents in  
            urban districts.  According to the 
          AB 159 (Salinas) Committee analysis, "AB 159 is designed to  
            protect traditional irrigation districts that provide water  
            for primarily agriculture use while providing residents who  
            receive retail water from irrigation districts with the  
            opportunity to serve on the district's board."  In 2006, the  
            impacts on irrigation districts by the proposed changes in AB  
            159 (Salinas) were clear.  At the time the bill was making its  
            way through the legislative process, 17 irrigation districts  
            were identified who submitted an urban water management plan  
            and would then need to eliminate the landowner requirement for  
            board members if the bill became law.  

            Unlike AB 159 (Salinas), the number of irrigation districts  
            that this bill will impact is unclear.  This bill removes the  
            use of a tangible report, and instead, relies on a definition  
            to determine what purposes an irrigation district uses water  
            for.  









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            Absent a comprehensive list of impacted districts, the  
            Committee may wish to consider that this bill will eliminate  
            the landowner requirement for an urban district whose revenue  
            mostly comes from residential water use, but does not submit  
            an urban water management plan in the same way it will  
            eliminate the landowner requirement in an irrigation district  
            in a rural area whose revenue mostly comes from agricultural  
            water use, but provides raw water to a cannery to use for  
            equipment.  

          5)The California Constitution provides that the right to vote or  
            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 do not exercise  
            normal governmental authority and their activities  
            disproportionally affect landowners.  

            The California Supreme Court, in Choudhry v. Free (1976) 17  
            Cal. 3d 660, declared unconstitutional a section of the  
            Irrigation District Law requiring potential board candidates  
            to be landowners.  The court ruled that this section was  
            unconstitutional as applied to the Imperial Irrigation  
            District and its board of directors, the real parties in  
            interest, because it deprived the irrigation candidates and  
            voters, including petitioner voters, of equal protection.  The  
            court's opinion gave two reasons it did not extend its ruling  
            to other irrigation districts.  First, the Imperial Irrigation  
            District was singular at that time among irrigation districts  
            in that it had more residents, land, and employees than any  
            other irrigation district and it was providing retail water  
            service.  Second, neither respondents nor real parties in  
            interest had opposed petitioners' claim that Water Code  
            Section 21100 was unconstitutional, and numerous irrigation  
            districts in the state that would have been affected by a  
            finding of unconstitutionality did not have the opportunity to  
            present their views or offer evidence regarding the  
            characteristics and operation of irrigation districts in  
            general.  

          6)Supporters argue that this bill continues to recognize the  
            position that the Legislature has taken by preserving the  








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            irrigation district landowner requirement in districts that  
            only provide water for agricultural purposes.  Under current  
            law the irrigation districts that are providing water for  
            non-agricultural purposes may not be required to do an urban  
            water management plan.  This bill will ensure that those  
            districts providing water for municipal or industrial purposes  
            will no longer have the landowner requirement for board  
            members. Supporters argue that existing law is inconsistent  
            with democratic principles of representative government and is  
            of questionable constitutionality.  

          7)Opponents of the bill argue that the original policy rationale  
            that linked irrigation district policy setting with land and  
            water is still applicable; namely, that persons who have an  
            investment in water delivery infrastructure and who assume the  
            obligations and risks of paying irrigation and drainage  
            assessments should govern irrigation districts.  Opponents  
            also argue that the landownership in existing law has been  
            upheld by the United States Supreme Court as a constitutional  
            form of governance.  

          8)The Committee may wish to ask the author to clarify the  
            language in subdivision (d) that refers to the use of water  
            for municipal  or  industrial purposes.  The phrase 'municipal  
             and  industrial' is commonly used to encompass residential,  
            municipal, industrial, and commercial uses of water.  

          9)The Committee previously heard another bill on irrigation  
            districts.  AB 1156 (V. Manuel P�rez), pending in the Senate,  
            would change the weighted vote system in the Palo Verde  
            Irrigation District (PVID) from votes based on the assessed  
            value of land to the number of acres.  PVID has a separate  
            enabling act that only grants voting power to landowners and  
            would maintain the landowner requirement for voting and board  
            membership regardless of the changes purposed in this bill.   
            The bill passed the committee on a 7-1 vote on May 8, 2013.  

            The Committee may wish to discuss if the bill should repeal  
            those irrigation districts with a unique voting system  
            established by special statute and require all irrigation  
            districts to be subject to the same requirements for board  
            members.  

           10)Support arguments  :  The sponsor argues "That there is no  
            rationale for continuing this outdated requirement other than  








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            the idea that landowners are better, more responsible citizens  
            than non-landowners."  The California Labor Federation argues  
            that "landowner requirement reinforces and perpetuates an  
            existing power structure and it fundamentally obstructs  
            democratic decision-making."  
                
              Opposition arguments  :  Opposition argues that there is no  
            compelling reason to change current law and that it remains  
            appropriate for an irrigation district that provides services  
            to land to retain landownership as a prerequisite for director  
            qualification.  Also, those who have paid for irrigation  
            infrastructure and who pay land-based assessments should  
            continue to qualify to serve on governing boards of irrigation  
            districts.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Teamsters Public Affairs Council [SPONSOR]
          California Labor Federation
          Coalition of California Utility Employees
          Community Water Center
          United Food & Commercial Workers Western States Council
           
            Opposition 
           
          American Pistachio Growers
          Association of California Water Agencies
          California Association of Nurseries and Garden Centers
          California Association of Wheat Growers
          California Association of Wine Grape Growers
          California Bean Shippers Association
          California Cattlemen's Association
          California Citrus Mutual
           Opposition (continued)

           California Cotton Ginners Association
          California Cotton Growers Association
          California Farm Bureau Federation 
          California Grain and Feed Association 
          California Grape and Tree Fruit League
          California Pear Growers Association
          California Seed Association
          California Tomato Growers Association








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          California State Floral Association
          California Warehouse Association
          California Women for Agriculture
          Friant Water Authority
          Kern County Water Agency
          Kings River Conservation District
          Kings River Water Association
          Nisei Farmers League
          Pacific Egg and Poultry Association
          San Joaquin River Exchange Contractors Water Authority
          Valley Ag Water Coalition
          Western Agricultural Processors Association
          Western Growers Association

           Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958