BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |SB 927 |Hearing |3/30/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Anderson |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |2/1/16 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Weinberger | |: | | ----------------------------------------------------------------- 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 SB 927 (Anderson) 2/1/16 Page 2 of ? 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 SB 927 (Anderson) 2/1/16 Page 3 of ? 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 SB 927 (Anderson) 2/1/16 Page 4 of ? 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. SB 927 (Anderson) 2/1/16 Page 5 of ? -- END --