BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |AB 1816 |Hearing |6/15/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Dahle |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |5/24/16 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Favorini-Csorba | |: | | ----------------------------------------------------------------- Tulelake Irrigation District Allows certain non-residents to serve on the Tulelake Irrigation District Board of Directors. Background Irrigation Districts. California's 93 irrigation districts function under a collection of statutes known as the Irrigation District Law that describe their governance structure and authority. In general, these districts are governed by a five member board of directors, with each member representing a division within the district. In most cases, registered voters are eligible to vote in district elections, but directors (also referred to as board members) must be voters, landowners, and residents in the division of the district they represent. This landowner requirement reflects the historical role of irrigation districts to exclusively provide irrigation water 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 the absence of traditional retail water suppliers in the area, or providing electricity services. Recognizing this trend, the Legislature has taken steps in the AB 1816 (Dahle) 5/24/16 Page 2 of ? past few decades to allow registered voters who do not own land to be directors in some districts. Specifically, the Legislature deleted the landowner qualification for board members of irrigation districts that provide electricity (SB 1939, Alarcón, 2000) and 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). However, the Legislature has also provided specific exemptions from the residency requirement for directors by enacting special legislation for four districts: Pixley Irrigation District, Hills Valley Irrigation District, Stratford Irrigation District, and Byron-Bethany Irrigation District. The Legislature authorized all of these districts to have non-resident directors in 1994. Tulelake Irrigation District. The Tulelake Irrigation District (TID) spans 96,000 acres of land in both Modoc and Siskiyou counties, near the Oregon border. The District was formed in 1952 to deliver water to TID lands from U.S. Bureau of Reclamation projects. In 1957, TID took over operation and maintenance of existing water infrastructure that landowners had already constructed. TID only provides water services for agricultural purposes and is financed by assessments on landowners, based on the number of acres owned. TID's governing body is a five member board of directors, each representing a division of the district. Currently, TID directors must meet all the criteria required by irrigation district statutes, such as being a resident and landowner in the division that he or she represents. LAFCOs. The Cortese-Knox-Hertzberg Act creates a local agency formation commission (LAFCO) in each county to control the boundaries of cities, county service areas, and most special districts. The courts repeatedly refer to LAFCOs as the Legislature's watchdog over boundary changes. LAFCOs are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structures, and preparing a sphere of influence for each city and special district within each county. The Cortese-Knox Hertzberg Act establishes procedures for local government changes of organization, including city incorporations, AB 1816 (Dahle) 5/24/16 Page 3 of ? disincorporations, annexations to a city or special district, and city and special district consolidations. LAFCOs regulate boundary changes by approving or denying applications by other public agencies or individuals for these procedures. In the case of special districts that span more than one county, the LAFCO for the county in which the majority of the assessed value lies has exclusive jurisdiction over the boundaries of the special district; accordingly, Modoc LAFCO has jurisdiction over TID. TID currently encompasses about 400 landowners. However, 158 of them reside outside of the district's boundaries, including 16 landowners that reside within one mile of the district's boundaries, along a surrounding ridge. Because they live outside of the district, these landowners are ineligible to serve on the board. The TID board of directors wants to expand the pool of candidates that are eligible to sit on the board of directors. Proposed Law Assembly Bill 1816 authorizes the TID board of directors to adopt a resolution that authorizes a person to be a director if the person: Is a registered voter in California, Lives within the "residency area," defined as the land within the district's boundaries or within one mile of any boundary, and Owns property within the division or is a property owner's legal representative. AB 1816 defines legal representative to mean the person authorized to act on behalf of a corporation that is allowed to own property in California. It also requires a legal representative to present to the district a copy of his or her authority to represent the corporation prior to declaring candidacy or being appointed to the board. AB 1816 requires that, upon written request by at least 25% of AB 1816 (Dahle) 5/24/16 Page 4 of ? the registered voters in the district, all directors must meet the requirements in current law for directors of irrigation districts. State Revenue Impact No estimate. Comments 1. Purpose of the bill . Currently, directors of the Tulelake Irrigation District must be residents, landowners, and registered voters in the division that they represent. These stringent requirements, coupled with the unique topography of TID and the surrounding area, have drastically reduced the number of candidates that are eligible to serve on the board. Specifically, more than one third of the landowners in the district reside outside of the boundaries of the district, making them ineligible. In one division, there are currently only two potential candidates for a division seat. AB 1816 allows landowners who reside within one mile of TID's boundaries to sit on the board of directors, expanding the pool of candidates while maintaining a close connection between the directors and the agricultural activities in the district. These simple changes are consistent with previous efforts to allow more candidates to run for irrigation board seats and promote democratic ideals by ensuring robust electoral competition. 2. Close, but no cigar . With rare exceptions, elected officials must reside within the boundaries of the agency that they represent. Of the 93 irrigation districts in California, only four allow for directors to reside outside the district that they represent. LAFCOs were formed in each county to act as an arm of the Legislature to determine boundaries while considering local conditions. While the current TID boundaries may limit the pool of candidates, Modoc LAFCO has the ability to expand its boundaries to encompass the residency area described in AB 1816, or to include any other relevant territory based on local AB 1816 (Dahle) 5/24/16 Page 5 of ? conditions. For example, the LAFCO might determine that there are more logical changes to TID's boundaries than simply expanding the district one mile in all directions. Yet TID has not applied to Modoc LAFCO to increase its jurisdiction. Moreover, all of the other districts that allow directors to reside outside of the district were given that authority prior to the comprehensive changes to local government boundary-setting that the Cortese-Knox-Hertzberg Act enacted. AB 1816 chips away at the role of LAFCOs, potentially setting an undesired precedent. The Committee may wish to consider whether this bill is necessary given the option to pursue a boundary change through LAFCO. 3. Equal representation . The California Supreme Court, in Choudhry v. Free (1976), 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 because it deprived the irrigation candidates and voters of fairness and equality in the electoral process. It did not, however, seek to determine whether this was the case for all irrigation districts that have landowner requirements for technical reasons. AB 1816 maintains the landowner requirement for holding office, raising questions about the fairness of the electoral process. Furthermore, AB 1816 authorizes directors to reside outside of the district but does not authorize residents in that area to vote, with the potential side effect that some director candidates may not be able to vote in their own election. The Committee may wish to consider whether eliminating the landowner requirement within the current boundaries could achieve the same goal of increasing the pool of candidates while potentially improving the representativeness of the board and avoiding an absurd result. 4. Prior Legislation . AB 1816 is similar to AB 386 (Dahle, 2015), which would have authorized landowners in the district that live within 10 miles of the boundaries of the district to serve as candidates on the board. However, AB 386 also included significant changes to the voting structure in the district that would have required a resident to own property in order to vote, and would have weighted votes based on the number of acres owned. AB 386 was never heard in the Assembly Local Government Committee. AB 1816 (Dahle) 5/24/16 Page 6 of ? Assembly Actions Assembly Local Government Committee: 9-0 Assembly Floor: 77-0 Support and Opposition (6/9/16) Support : Tulelake Irrigation District (sponsor); Association of California Water Agencies; Ben DuVal Farms, Inc; City of Tulelake; Frey Farms; Gold Dust Potato Processors, Inc; Jeff and Leslie Boyd Farms; JW Farming, LLC; Klamath Water Users Association; McKoen & Son; Modoc County Board of Supervisors; Modoc County Farm Bureau; Nicholas Scott; Potato Karma; Seus Family Farms, Inc; Siskiyou County Board of Supervisors; Staunton Farms; Tally Ho Farms; WJB, LLC. Opposition : Unknown. -- END --