BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Richard K. Rainey, Chairman BILL NO: SB 1939 HEARING: 5/17/00 AUTHOR: Alarcon FISCAL: Yes VERSION: 5/15/00 CONSULTANT: Swenson IRRIGATION DISTRICT DIRECTORS' QUALIFICATIONS Background and Existing Law Most of California's 3,400 special districts are registered voter districts; both the electors and the members of the governing boards must be registered to vote within the district's boundaries. But about 350 water districts are landowner-voter districts. State law assigns voting power in these districts to those who own real property within the district. Members of these districts' governing boards must be landowners or sometimes landowners' representatives. California's 97 irrigation districts are a hybrid of registered voter and landowner-voter type districts. In general, registered voters are eligible to vote in district elections, but board members must also be freeholders (landowners) in the district. However, lawmakers have granted exceptions, allowing eight irrigation districts to be landowner-voter districts. The Legislature added the freeholder requirement for irrigation districts' board members in 1897 when the districts primarily delivered agricultural water to landowners. Since then, the Legislature has allowed irrigation districts to provide other services including drainage, electricity, flood control, sewage disposal, and water storage and distribution. Irrigation districts deliver these services to their residents regardless of land tenure. Four irrigation districts (Imperial, Merced, Modesto, and Turlock) provide electricity services. These districts provide electrical services to residents much like community services districts, municipal utility districts, and public utility districts. Existing law does not require board members of these other districts to be landowners. SB 1939 -- 5/15/00 -- Page 2 Proposed Law Senate Bill 1939 repeals the requirement that irrigation district board members be landowners of the district they represent. SB 1939 also makes changes to programs serving low-income electricity customers. Comments 1. Get with the times . Current law allows all residents of an irrigation district to vote in district elections, but requires a board member of an irrigation district to be a landowner in the district. Times have changed since 1897 when irrigation districts provided services to land rather than people. Irrigation districts now provide a variety of services to their residents. Since districts no longer serve only landowners, it is no longer appropriate to exclude non-landowner residents from serving on their governing boards. In support of this notion, the California Supreme Court ruled in Choudhry v. Free (1976) that because an irrigation district provided vital services to all residents - not just landowners - landowner status could not be required of those who wish to serve as directors. 2. But don't overlook tradition . Although irrigation districts can deliver a variety of services, not all of them provide every service. A dozen or so districts provide only irrigation services to agricultural land in districts with few or no residents. Because some districts have few residents or only landowner residents, the Legislature has allowed eight irrigation districts to become landowner-voter districts, even allowing landowners to live outside the districts. The U.S. Supreme Court has allowed this departure from the one-person, one-vote rule because of the districts' limited purpose and because of the disproportionate effect of their activities on landowners as a group. SB 1939 may impose an inappropriate change on some of the more traditional districts that still serve primarily land and not people. 3. Local control . Community services districts, municipal SB 1939 -- 5/15/00 -- Page 3 utility districts and public utility districts do not require board members to be landowners. Those districts deliver services to all residents, regardless of land ownership. Accordingly, all who are affected by the boards' decisions are rightfully afforded access to serving on the governing boards. In contrast, irrigation districts, including those in the electricity business, do not provide equal access. The Committee may wish to consider if limiting access to a district's governing body, and thus control of the district, to only landowners within a district that provides general public services, is an appropriate restriction. 4. Secondary effects . The Legislature has allowed eight irrigation districts to operate as landowner-voter districts. Under SB 1939, those districts must convert and allow only district residents to serve on their boards. In other words, only landowners vote, but they can only elect residents. The Committee may wish to consider amending the bill to sort this out. 5. Related legislation . SB 1571 (Costa) allows two more irrigation districts to convert from registered voter districts to landowner-voter districts. SB 1571 is in the Senate Appropriations Committee. 6. Second stop . The Senate Rules Committee ordered a double-referral of SB 1939. The Senate Energy, Utilities, and Communications Committee passed the bill on May 9 on an 8-2 vote. 7. Other provisions . SB 1939 contains other provisions outside this Committee's jurisdiction. These other provisions affect programs serving low-income electricity customers. Support and Opposition (5/11/) Support : California Journal For Filipino Americans, California Rural Legal Assistance Foundation, Central Valley Opportunity Center, Coalition of California Utility Employees, Community Action Agency of San Mateo County, Inc., Community Medical Center, Congress of California Seniors, Consumer Federation of California, Finca Management Inc., Foundation For Quality Housing SB 1939 -- 5/15/00 -- Page 4 Opportunities, Inc., The Greenlining Institute, Hermandad Mexicana Nacional-- several members, JERICHO, Latin American Civic Association, Latino Issues Forum, Mexican American Legal Defense and Educational Fund, Pacific Gas & Electric Company, San Fernando Gardens Resident Management Corporation, Sempra Energy, Southern California Gas Workers Council, TELACU, United Farm Workers of America AFL-CIO, Watts/Century Latino Organization, West Angeles Community Development Corporation. Opposition : Agricultural Energy Consumers Association, Alameda Power & Telecom, Association of California Water Agencies, California League of Food Processors, California Municipal Utilities Association, City of Azusa Light & Water Department, Cities of Gridley, Lodi, and Lompoc, City of San Bernardino Municipal Water Department, Imperial Irrigation District, Lassen Municipal Utility District, Merced Irrigation District, Modesto Irrigation District, Northern California Power Agency, Roseville Electric, Sacramento Municipal Utility District, Southern California Public Power Authority, Trinity Public Utilities District, Turlock Irrigation District.