BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          ELECTIONS AND CONSTITUTIONAL AMENDMENTS
                              Senator Ben Allen, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 927         Hearing Date:    4/19/16    
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          |Author:    |Anderson                                             |
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          |Version:   |3/31/16                                              |
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          |Urgency:   |Yes                    |Fiscal:    |No               |
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          |Consultant:|Frances Tibon Estoista                               |
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            Subject:  Public Utility District Act:  election of directors

           DIGEST
           
          This bill permits directors of any public utility district that  
          is wholly or partially within the County of San Diego to be  
          elected at-large  or  by subdistricts.

           ANALYSIS
           
          Existing law:

          Provides that members of most local governments' legislative  
          bodies are elected using one of three methods:

                   An "at-large" election which 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 which 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 that 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.

          This bill:








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             1)   Allows the candidates for director of any public utility  
               district that is wholly or partially within San Diego  
               County to be elected by subdistricts as follows:

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

             2)   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.

             3)   Defines "by subdistricts" as the election of members of  
               the board of directors by voters of the subdistrict alone.

             4)   Makes findings and declarations because of the need to  
               bring public utility districts in San Diego County into  
               compliance with the California Voting Rights Act of 2001  
               (CVRA).

           BACKGROUND
           
           The Public Utility District Act  .  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 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 of 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  








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                by wards or from wards (SB 1393, Senate Local Government  
                Committee of 1993).  The North Tahoe PUD's board is  
                currently elected by-district. 

           Fallbrook Public Utility District Lawsuit  .  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. 

           COMMENTS
                                           
              1)   According to the author  :  Under current law, public  
               utility districts are formed with at-large districts.   
               Under this format all those within the boundaries of the  
               public utility district vote for all of the directors of  
               the district, as opposed to voting for directors that  
               represent a specific portion of the district.  Public  
               utility districts may wish to modify the formation of their  
               board to represent specific portions of the district.  This  
               may be done for a number of reasons, including: in response  
               to a consolidation or annexation, allow for broader  
               geographic representation on the board, or in response to  
               concerns over voting rights.  Under current law, in order  
               for a district to move from at-large to district-based  
               representation, specific legislation is needed.

          Over the years, several public utility districts have pursued  
          special legislation to modify their board structure; those  
          districts include:  Tahoe City PUD (PUC 15961.5), Johnsville PUD  
          (15974), and Georgetown PUD (1s97s).








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          While the above-mentioned public utility districts have been  
          permitted to modify their board structure, the other public  
          utility districts in California do not enjoy that authority.  As  
          a result, should a public utility district wish to modify its  
          Board structure in order to address any concerns with compliance  
          with the California Voting Rights Act, a district either needs  
          specific legislation or would need to be taken to court so a  
          judge can order the district to elect its directors by  
          geographic area.

          Additionally, current law limits the ability of a public utility  
          district to establish geographic districts in response to a  
          consolidation or annexation that is approved through a local  
          LAFCO process.  This can result in uncertainties for geographic  
          representation for the entirety of the expanded district.

          This proposed legislation, which would be permissive, would  
          allow a public utility district, partially or wholly located in  
          San Diego County, to pass an ordinance or resolution which would  
          be subject to approval by a county board of supervisors, to  
          elect directors from a geographic area.  Additionally, this  
          proposal would allow a public utility district, partially or  
          wholly located in San Diego County, to move to district based  
          elections as part of a local LAFCO process.

              2)   CVRA Litigation Line Dance  ?  Now that the CVRA has been  
               on the books for over 15 years, it is important to consider  
               the following questions:  1) With the potential for future  
               lawsuits, why aren't all public utility districts permitted  
               to elect their respective board members by subdistricts?  
               and 2) How many future legislative requests lie ahead for a  
               similar exemption?

                                     PRIOR ACTION
           
          Senate Governance and Finance Committee: 7-0
                                           
          POSITIONS
           

          Sponsor: Fallbrook Public Utility District

           Support: Association of California Water Agencies








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                    California Special Districts Association
                    Mexican American Legal Defense and Educational Fund
                   San Diego County Water Authority

           Oppose:  None received

                                          
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