BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |AB 1816                          |Hearing    |6/15/16  |
          |          |                                 |Date:      |         |
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          |Author:   |Dahle                            |Tax Levy:  |No       |
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          |Version:  |5/24/16                          |Fiscal:    |No       |
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          |Consultant|Favorini-Csorba                                       |
          |:         |                                                      |
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                             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  







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          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,  








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          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  








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          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  








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          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.









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           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.


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