BILL ANALYSIS                                                                                                                                                                                                    Ó



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

                              
          
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          |Bill No:  |SB 927                           |Hearing    |3/30/16  |
          |          |                                 |Date:      |         |
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          |Author:   |Anderson                         |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |2/1/16                           |Fiscal:    |No       |
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          |Consultant|Weinberger                                            |
          |:         |                                                      |
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                  Public Utility District Act:  election of directors



          Allows the Fallbrook Public Utility District's board members to  
          be elected by subdistricts or from subdistricts, rather than  
          at-large.


           Background 

           Members of most local governments' legislative bodies are  
          elected using one of three methods:
                 An "at-large" election allows a voter residing anywhere  
               within the local government's boundaries to vote for any  
               candidate for the local government's governing board.  

                 A "by district" election allows a voter to vote only for  
               a candidate who runs and resides in the same geographical  
               district in which the voter resides. 

                 A "from district" election allows a voter residing  
               anywhere within a local government's boundaries to vote for  
               any candidate for a local government's governing board, but  
               each candidate must run in the geographical district where  
               he or she resides. 

          The Public Utility District Act governs California's 53 public  
          utility districts (PUDs).  The Act empowers a PUD to acquire,  
          construct, own, operate, control, or use works for supplying its  







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          inhabitants with light, water, power, heat, transportation,  
          telephone service, or other means of communication, or means for  
          disposing of garbage, sewage, or refuse.  The Act requires that  
          the members of the board of directors of a PUD that lies  
          entirely within one county must be elected at-large. The  
          Legislature has created two exceptions to this at-large election  
          requirement:
                 The Georgetown Divide PUD (El Dorado County) can provide  
               for electing the district's directors by wards (AB 1410, N.  
               Waters, 1980).  Its board is currently elected at-large.
                 The board of directors of a PUD located in Placer County  
               can provide for electing the district's directors by wards  
               or from wards (SB 1393, Senate Local Government Committee,  
               1993).  The North Tahoe PUD's board is currently elected  
               by-district. 

          The Fallbrook PUD (FPUD) provides retail water, sewer, and  
          recycled water services to approximately 35,000 people residing  
          within its boundaries in northern San Diego County.  A lawsuit  
          filed against the district last year in San Diego County  
          Superior Court alleged that the district's at-large board  
          elections violated the California Voting Rights Act by diluting  
          the voting strength of Latino voters, thereby impairing their  
          ability to participate meaningfully in the political process and  
          to elect candidates of their choice (Juan Atilano, Carmen  
          Cardoso, Jesus Hernandez, Jesus Hernandez Jr., and Jose Huerta  
          v. Fallbrook Public Utility District).  To avoid potentially  
          lengthy and costly litigation, the parties to the lawsuit  
          negotiated a settlement to resolve the claims against FPUD.  The  
          settlement agreement, which is enforced by a recent court order,  
          requires FPUD to change from an at-large method of election to a  
          by-district method of election.  FPUD has already begun  
          implementing the changes required by the settlement. 

          In light of the by-district election requirement in the recent  
          court order enforcing the settlement agreement, FPUD officials  
          want the Legislature to grant the district an exemption from the  
          Public Utility District Act's at-large election requirement.

           Proposed Law

           Senate Bill 927, notwithstanding any other part of the Public  
          Utility District Act, allows the candidates for director of any  
          PUD that is wholly or partially within San Diego County to be  








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          elected by subdistricts or from subdistricts either:
                 Upon adoption of a resolution or ordinance to that  
               effect by the board of directors of the district, subject  
               to approval of the board of supervisors, or 

                 As a part of a change of organization or a  
               reorganization conducted pursuant to specified provisions  
               of state law. 

          SB 927 directs that a resolution or ordinance that divides a  
          district into subdistricts adopted by the district's board of  
          directors must describe the boundaries of the subdistricts so  
          that the subdistricts shall be nearly equal in population.

          SB 927 defines "by subdistricts" as the election of members of  
          the board of directors by voters of the subdistrict alone.

          SB 927 defines "from subdistricts" as the election of members of  
          the board of directors who are residents of the subdistrict from  
          which they are elected by the voters of the entire district.


           State Revenue Impact

           No estimate.


           Comments

           1.  Purpose of the bill  .  Despite the fact that a recent court  
          order enforcing a settlement agreement requires FPUD to use a  
          by-district method for electing members of its governing board,  
          state law still appears to require the district to elect its  
          board members at-large.  To avoid any possible confusion about  
          FPUD's authority to use the by-district election method, SB 927  
          enacts an exemption to the statutory at-large election  
          requirement that is similar to exemptions state law grants to  
          two other public utility districts.

          2.  Inconsistency  .  SB 927 grants FPUD the statutory authority to  
          elect its board by subdistricts, which is exactly how the recent  
          court order requires FPUD to conduct its board elections.   
          However, SB 927's provisions also would allow the district to  
          elect board members from subdistricts.  Electing FPUD board  








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          members from subdistricts is not consistent with the court  
          order, which says that FPUD's board members "are required to be  
          residents of their respective electoral districts and to be  
          elected by the resident of their respective electoral  
          districts."  To conform SB 927 more closely to the requirements  
          of the court order governing FPUD's elections, the Committee may  
          wish to consider amending the bill to delete references to  
          electing board member "from subdistricts."

          3.  Special legislation  .  The California Constitution prohibits  
          special legislation when a general law can apply (Article IV,  
          §16).  SB 927 contains findings and declarations explaining the  
          need for legislation that applies only to public utility  
          districts in San Diego County.

          4.  Urgency  .  Regular statutes take effect on January 1 following  
          their enactment; bills passed in 2016 take effect on January 1,  
          2017.  The California Constitution allows bills with urgency  
          clauses to take effect immediately if they're needed for the  
          public peace, health, and safety. SB 927 contains an urgency  
          clause declaring that it is necessary for its provisions to go  
          into effect immediately to ensure that election procedures for  
          public utility districts in the County of San Diego conform to  
          the California Voting Rights Act of 2001 as soon as possible.

          5.  Double-referral  . The Senate Rules Committee has ordered a  
          double-referral of SB 927 -- first to the Senate Governance &  
          Finance Committee, which has jurisdiction over bills relating to  
          the governance of special districts, and then to the Senate  
          Elections and Constitutional Amendments Committee, which has  
          jurisdiction over bills relating to local government elections.   



           Support and  
          Opposition   (3/24/16)


           Support  :  Association of California Water Agencies; California  
          Special Districts Association; Fallbrook Public Utility  
          District.


           Opposition  :  Unknown.








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