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 ----------------------------------------------------------------- |Author: |Anderson | |-----------+-----------------------------------------------------| |Version: |3/31/16 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |Yes |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Frances Tibon Estoista | | | | ----------------------------------------------------------------- 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: SB 927 (Anderson) Page 2 of ? 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 SB 927 (Anderson) Page 3 of ? 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). SB 927 (Anderson) Page 4 of ? 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 SB 927 (Anderson) Page 5 of ? California Special Districts Association Mexican American Legal Defense and Educational Fund San Diego County Water Authority Oppose: None received -- END --