BILL ANALYSIS �
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 2453 HEARING: 6/18/14
AUTHOR: Achadjian FISCAL: No
VERSION: 3/28/14 TAX LEVY: No
CONSULTANT: Ewing
PASO ROBLES BASIN WATER DISTRICT
Establishes the governance structure and authority of the
Paso Robles Basin Water District.
Background and Existing Law
Under state law, special districts are separate local
governments formed to provide limited public services to a
geographically designated area. Most special districts
provide a focused governmental service, such as road
maintenance, but some forms of special districts, such as
Community Services Districts, can provide a range of
services. Unlike counties, special districts are not
confined to serving a contiguous area. Like cities and
counties, special districts have the operational
authorities to function and provide direct services.
Unlike cities and counties, however, special districts
typically do not have police powers, or the power to
regulate private behavior, but in some instances limited
regulatory powers are authorized.
Special districts are statutorily authorized in two
manners. The Legislature has enacted "principal acts,"
which authorize, typically through local petition and
approval by a county Local Agency Formation Commission
(LAFCO), residents or local officials to call for the
formation of a special district. The powers and
authorities for each special district originate in the
principal act under which each district is formed. There
are some 50 different principal acts.
Occasionally the needs of a community are not adequately
addressed under the principal acts, and the Legislature
authorizes a special act district, in which the district
governing structure, authorities, and financing powers are
authorized directly in a special statutory provision.
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There are some 125 special act districts in California.
Most special districts have a five member board of
directors, although historically, the size of a board has
ranged from three members in the case of small
single-purpose districts, to the 37-member board of the
Metropolitan Water District of Southern California.
Similarly, the voting structure for district formation and
elections also can vary. Typically, the registered voters
in a service area elect a district's board of directors.
For some districts, generally water-oriented districts,
political authority can rest with landowners and the
formation process and subsequent election authority rests
only with landowners.
In 1973, the U.S. Supreme Court ruled in Salyer Land Co. v.
Tulare Water District, that the California statute
requiring a landownership qualification for the district
did not violate the Equal Protection Clause of the U.S.
Constitution. The court ruled there was no violation
because those districts don't exercise normal governmental
authority and their activities disproportionally affect
landowners.
State law authorizes some 20 types of special districts
that have statutory authority to provide water or exercise
authority over groundwater. Additionally, more than a
dozen special act districts exercise some form of
groundwater authority. Groundwater also can be managed
under the police powers of local agencies, such as through
ordinances. The California Department of Water Resources
reports that 27 counties have adopted groundwater
management ordinances. Additionally, AB 3030 (Costa,
Chapter 947, 1992) established the California Groundwater
Management Act, which authorized but did not require local
agencies to put in place a groundwater management plan. SB
1938 (Machado, Chapter 603, 2002) furthered the goal of
groundwater management by requiring a groundwater
management plan before local agencies can seek a range of
state funding.
Some residents are concerned that management of the Paso
Robles Groundwater Basin is not adequate and want to form a
special district to manage the basin. Recognizing the
contentious issues surrounding water management in the
region, they are calling for a "hybrid" governance board
AB 2453 -- 3/28/14 -- Page 3
that is made up of a combination of landowner-represented
seats and voter-represented seats.
Proposed Law
AB 2453 authorizes, under the California Water District
Law, the governing board structure and powers of the Paso
Robles Basin Water District in San Luis Obispo County, with
the district's boundaries to be established by the San Luis
Obispo County Local Agency Formation Commission.
AB 2453 establishes the governing and voting structure for
the district as follows:
The governing board of the district must include nine
landowner members, six of whom shall be elected by
landowners, and three of whom shall be elected to
resident-voters.
Of the six directors elected by landowners, two directors
must elected by landowners owning 400 or more acres of land
in the district, two directors must be elected by
landowners owning between 40 and 399 acres of land in the
district, and two directors must be elected by landowners
owning less than 40 acres of land in the district.
Landowner-voting is weighted, with each landowner-voter
casting one vote for each acre of land owned by the voter
within the district. Candidates for the landowner seats
can be drawn from any class of landowner.
The three remaining landowner seats are elected by
registered voters in the district, with one-voter casting
one vote.
Eligibility for the director seats is limited to landowners
who are residents of the districts or who reside within two
miles of the district boundary, or within the City of Paso
Robles, the Atascadero Mutual Water Company, the Templeton
Community Services District, the San Miguel Community
Services District, or the San Luis Obispo County Service
Area 16.
The election of the district board is to be carried out
according to the terms of the Uniform District Election
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Law, with separate balloting for landowner-voter seats and
resident-voter seats. AB 2453 allows voting to be
conducted by all mail ballots.
The bill requires that the participation of landowners in
the election to be carried out as follows:
a) If the holder of title is a trust, any trustee of
the trust may vote on behalf of the trust;
b) If the holder of title is a corporation, the
president, vice president, secretary, or other duly
designated officer may vote on behalf of the
corporation;
c) If the holder of title is a limited liability
company (LLC), any managing member may vote on behalf
of the LLC; and,
d) Any officer or partner with managerial
responsibilities of a legal entity not listed above,
inclusive, may vote on behalf of the entity.
AB 2453 authorizes the Paso Robles Basin Water District to
exercise authority under the Groundwater Management
component of state water law and declares that the creation
of the district shall not modify the powers of the County
of San Luis Obispo or the San Luis Obispo County Flood and
Water Conservation District.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . AB 2453 establishes the
governance structure for a new water district charged with
managing the Paso Robles Groundwater Basin and ensuring
reliable and equitable access to water that is essential to
the residents and communities of the region. The unique
governance structure of AB 2453 brings together landowners
and residents, with balanced representation, to manage the
often contentious challenges surrounding water. The
AB 2453 -- 3/28/14 -- Page 5
governance structure established in the bill results from
months of community deliberations and compromise, and
represents the best approach to building the community
confidence needed to manage the region's groundwater that
is the primary - and often the only - water source for area
residents, farms and businesses. AB 2453 is a historic
compromise uniquely tailored to needs of the region.
2. What's the matter here ? AB 2453 would establish a
hybrid governance structure for a new water district in San
Luis Obispo County. But the law already authorizes the
County to manage the groundwater basin, and the County has
a groundwater management plan in place, with an enhanced
plan under development. The San Luis Obispo County Flood
and Water Conservation District also can exercise its
authority to manage groundwater. Further, the principal
acts governing the formation of special districts provide
ample opportunity for residents to form a special district,
either as a landowner-voter district or as a resident-voter
district. The Committee may wish to consider whether a new
statute is needed given the ample opportunities for
groundwater management in the basin.
3. One-voter/one-vote ? AB 2453 would authorize the
formation of a water district with a hybrid
landowner-voter/resident-voter board. In contrast, the
state has been moving to require landowner boards to
transition to registered-vote boards as they take on more
general governance responsibilities, such as the delivery
of retail water. Groundwater management is of broad public
concern; it is unclear why a one-person/one-vote district
is not an alternative. To preserve local control under the
principal act, the Committee may wish to amend AB 2453 to
allow a California Water District to be petitioned through
LAFCO and for elections to be held with voter-qualified
directors under one-voter/one-vote provisions.
4. Optional or optimal ? AB 2453 directs the San Luis
Obispo County Local Area Formation Commission to establish
the boundaries for the Paso Robles Basin Water District,
and establishes a governance structure that must be used,
if the district is formed under the California Water
District principal act. It is not clear if AB 2453 would
prohibit a California Water District for the Paso Robles
Basin from having a governing board consistent with the
principal act, instead of the governing structure outlined
AB 2453 -- 3/28/14 -- Page 6
in AB 2453. The Committee may wish to amend AB 2453 to
make permissive the requirement for the LAFCO to establish
the boundaries of the district, and clarify whether the
governing structure in the bill is optional, and may be
pursued as an alternative to the traditional governing
structure of a California Water District.
5. Who's choice is it anyway ? If AB 2453 is amended to be
permissive, providing the option for the hybrid governance
structure for a California Water District versus a
traditional landowner district, it is not clear who has the
authority to select from among the two governance options.
The Committee may wish to amend AB 2453 to clarify whether
the petitioners, the Board of Supervisors or the county
LAFCO is authorized to select among competing governance
structures.
6. Authority and discretion . In contrast to AB 2453, the
California Water District statute provides a board with the
authority to transition to a resident voter district by
resolution. The principal act similarly authorizes a
traditional five member board to increase the size of the
board to 7, 9, or 11, by resolution, and to repeal that
resolution to reduce the board to an earlier size. AB 2453
does not provide the Paso Robles district's board with
similar authority to adjust the governance structure. The
Committee may wish to consider amending the bill to
authorize an elected board of directors to transition to a
full voter-elected board and, if it makes that transition,
to alter the size of the board by resolution.
7. The powers that be . AB 2453 specifies that, if formed
under the California Water District Code principal act, the
Paso Robles Basin Water District would have the authorities
specified as part 2.75 of the Water Code. The language in
the bill suggests that the district also would have the
authorities authorized under the principal act, which would
be subject to LAFCO review. In effect, the district would
be subject to LAFCO review for some powers, but not those
granted statutorily by the bill. The Committee may wish to
clarify that if formed, the district's authority granted
under AB 2453 also would be subject to LAFCO review.
8. Constitutionality . AB 2453 provides weighted landowner
voting for the election of landowner representatives on the
district board, using one-acre / one-vote weighting. In
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the 1973 Salyer Land Co. v. Tulare Water District decision,
the U.S. Supreme Court ruled that a landownership
qualification for the district did not violate the Equal
Protection Clause of the U.S. Constitution. The court
ruled there was no violation because those districts don't
exercise normal governmental authority and their activities
disproportionally affect landowners. AB 2453 presents a
hybrid board, which suggests that the board will influence
non-landowners and may invite legal scrutiny.
9. Technical considerations . The Committee may wish to
consider the following technical amendments:
Page 4, lines 22-25. Clarify that the last
assessment roll is used to prepare the voter list for
three classes of landowner voting and does not apply
to identification of registered voters.
Page 4, line 29. Clarify that the County Assessor
shall be reimbursed rather than compensated for the
costs incurred on behalf of the district.
Page 4, lines 31-32. Clarify that for purposes of
the Uniform District Election Law, the Paso Robles
Basin Water District shall be treated as a
landowner-voter district.
10. Double- referral. AB 2453 has been referred by the
Rules Committee to the Governance and Finance, which will
hear the bill on June 18, and to the Senate Water and
Natural Resources Committee, which can provide more
information on the water management authorities outlined in
the bill.
Assembly Actions
Assembly Local Government Committee6-1
Assembly Floor 50-11
Support and Opposition (6/12/14)
Support : Jonathan Bachellier; Susan Bachellier; Robert
Brown; Marianne Brown; California Association of Winegrape
Growers; Jason Carroll; City of El Paso de Robles; Bryan
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Clifton; Mark Coats; Sheryl Coats; Paul Cuellar; Don
Elliston; Marianne Elliston; Family Winemakers of
California; Laurie Gage; Karl Gage; John Long; Sue Luft;
Karl Luft; Armando Mares; Don Merrill; Lisa Murdock; Paso
Robles Agricultural Alliance for Groundwater Solutions;
Paso Robles Groundwater Basin Blue Ribbon Committee;
Veronica Porter; PRO Water Equity; Oliver Rosa; Yvonne
Quitana; San Luis Obispo County; Gary Seals; Janet Seals;
Jim Shumate; Steve Sinton; Jim Smith; Mark William Stern;
Bob Thomas; Nathan Valdez; Bryan Wallingford; Wine
Institute.
Opposition : July Ackerman; Anthony S. Agueda, Jr.; John
Alexiev; Laurie Alexiev; Linda Allen; Kurt Almond; Suzie
Anderson; Debbie Arnold, Supervisor, 5th District , San
Luis Obispo County; Judy Avery; Robert Ballo; Roberta
Barba; Roy Barba; Lynn Barstad; Margaret Bauer; Stephen M.
Bayus; John Beccia; Jerry Bello; Janice Blake; Pamela Kay
Boggs; William Dale Boggs; James Bonnifield; Stacy
Bonnifield; Michael Bova; Michele Bova; Barbara Brainard;
David Broadwater; Eve Bundy; Ken Bundy; Rebecca Bundy;
Jessie Burnett; Peter Byrne; California Coastal Protection
Network; California Labor Federation; California Rural
Legal Assistance Foundation; California Teamsters Public
Affairs Council; California Water Impact Network; Vicki
Carlson; Larry Carlson; Brian Carvana; Center for
Biological Diversity; Donna Chesebrough; T. J. Ciesielski;
Clean Water Action; Community Water Center; John Criag;
Michelle D'Antonio; Nick D'Antonio; Vikki Dean Family;
Defenders of Wildlife; Diane M. Demers; Claude J. Demers;
Bill Denneen; Desal Response Group; Adrienne Dickinson;
Robert Dickinson; Dean Diederich; Laurel Diederich; Dean
DiSandro; Dennis Doberneck; Alan Duckworth; Frank A.
Duckworth; Penelope Duckworth; Terri Eade; Ann Ellis; Donna
Ellis; Robert Ellis; Pete Evans; Bill Faulkner; Cheryl
Faulkner; Tammy Fenske; Cody Ferguson; Food and Water
Watch; Ronald Friberg; Jon Fuller; Sara Fuller; Pam Fulmer;
Michelle Gardner; Ted J. Gilbert; Stephen Gonzales; Brad
Goodrow; Nancy Graves; Wayne Gretter; Barbara Guerena;
Barbara Haedtke; Robert Haedtke; Matt Hamm; Jack Hanauer;
Linda Hansen; Tom Hanson; Lynne Harkins; Marcia C. Harvey;
Susan A. Harvey; Richard Hawley; Deborah Health; Yolanda
Hernandez; Nancy Hoagland; Richard Heim; Russell Hodin;
Frederick C. Hoey; Janet C. Hoey; Anna Hohman; Paul Hohman;
Kathleen Holt; Larry Horn; Scott Huerta; Anastasia Hunt;
Claire Irene; Paul M. Irene; Diane Jackson; Mike Jackson;
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Helen Jacobsen; Richard Jacobsen; Astrid Jansen; Pete
Johnston; Patricia Jones; Miranda Joseph; Barbara Kastner;
Patrick M. Keating; Marina Keezer; Greg Keezer; Jennifer
Kelley; Dugan Kelly; Gary L. Kirkland; Paul Knapp; Kathy
Knapp; Dorie Krepton; Daniel Kuhns; Lisa Kuhns; Lezlie
Labhard; Kim Lachance; Frank Lamarre; Dan Larson; Erin
Larson; Lisa Leopard; Gail K Lightfoot; Maria Lorca; Sheila
Lyons; David Marquez; Terri Marquez; Mary Mason; Robert J.
Masten; Constance N. Masten; Domenico Mastrototaro; Beverly
Mays; Larry McGourty; Dr. JD Megason; Inge Meinzer; Barbara
Mikelonis; Angela Mitchell; Jonathan Morrison; Lynette
Morrison; Ann Myhre; Heinz Naef; Allyson Nakasone; George
Narancic; Ruth Narancic; Brad Nave; Elisabeth Neary; Susan
Needleman; Stephen Nelson; Janice Nelson; Janice Newhart;
Ryan Newkirk; North County Watch; Ms. O'Brien Young; Jim
Olesnanik; Cort Palmer; Lorenzo Perez; Elliott Perkins;
Jack Perry; Kurt Perry; Stephanie Perry; Richard T. Pettit;
Mary Anne Pettyjohn; Beverly Phifer; Charles Phifer; George
Phillips; Kevin Phillips; Tracy Phillips; Lori Pitoniak;
Casey Pitoniak; Corey Pitoniak; Andrew Pitoniak; Planning &
Conservation League; Jacqueline Plant Mason; Petite
Pointer; James Pope; Mindy Proffitt; Derek Proffitt;
Michael A. Raine; Terry Raley; Anna Rapp; Niles Rasmussen;
Lauren Rava; Jerry Rava; Suzanne Rava; Reddy V Reddy; Gary
Reichard; Mary Ann Reichard; Kathryn Ristow; Marc Ristow;
Warren Ristow; Melenie Ristow; Elizabeth Rolph; Karen
Roots; Carol Rowland; Michael P. Ryan; Pamela Ryan; David
Samuel; Carol Samuel; San Luis Obispo County Cattlemen's
Association; Anthony Scalise; Jim Scherz; Lynne Schmitz;
Adam Scow; Linda Seeley; Theresa Shaeffer; Chris Shaeffer;
Pamela Shaffer; John Shanahan; Lynette Shanahan; Sierra
Club California; Sierra Club, Santa Lucia Chapter; Claire
Silver; Donald Simoneau; Southern California Watershed
Alliance; Allen Steinbeck; Beverly Steinbeck; Cindy
Steinbeck; Howie Steinbeck; Joel Stinchfield; Randy
Stinchfield; Jerry Stover; Lynn Stroble; Joseph Sulse; Drew
Sweeney; Sherry Sweeney; Jerry Taft; John Texeira; Ruth
Texeira; Rex Thornhill; Bill Tkach; Patricia A. Trombly;
John Tyler; United Farm Workers; Anna Vaughn; N. Patrick
Veesart; George White; Kathleen Wigglesworth; Mary Wilhelm;
Kevin Will; Cindy Wilson; Don Wilson; Betty Winholtz; Will
Woolley; Landon Young.
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