BILL ANALYSIS SB 1939 Page 1 Date of Hearing: August 9, 2000 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT John Longville, Chair SB 1939 (Alarcon) - As Amended: August 9, 2000 SENATE VOTE : 30-10 SUBJECT : Irrigation districts. SUMMARY : Revises the qualifications for directors and voters in irrigation districts. Specifically, this bill : 1)Removes the requirement that a director be a landowner in the irrigation district they represent. 2)Permits irrigation district boards to adopt resolutions authorizing property owners, whether or not they are residents in the district, or their representatives to vote. 3)Defines "eligible voter" as either a person who meets the definition of "eligible voter" in the Elections Code and is a resident of the district or a property owner within the district. 4)Authorizes any eligible voter, as defined, to be a member of the board of directors. 5)States that the provisions described in numbers 2-4 above shall be operative only so long as the district does not provide water, drainage services, electricity, flood control services, or sewage disposal services for domestic purposes for district residents. 6)Requires a district to notify the Secretary of State 30 days prior to providing any of the specified services for domestic purposes. EXISTING LAW requires each director of an irrigation district to be a voter and a freeholding landowner in the district except in specified circumstances. FISCAL EFFECT : Unknown COMMENTS : SB 1939 Page 2 1)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. 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 landowners' representatives. 2)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. The Legislature enacted the freeholder requirement for irrigation district board members in 1897, when the districts' primary purpose was delivering water to agricultural landowners. Since then, the Legislature has allowed irrigation districts to provide other services, including drainage, flood control, sewage disposal, and water storage and distribution. Four irrigation districts (Imperial, Merced, Modesto, and Turlock) provide electricity services to residents. 3)Community services districts, municipal utility districts and public utility districts do not require board members to be landowners. All who are affected by the boards' decisions are eligible to serve on the governing boards. Since many irrigation districts no longer serve only agricultural landowners, but rather serve as de facto utility districts to a greater or lesser extent, it may no longer be appropriate to exclude non-landowner residents from serving on their governing boards. It may also be unconstitutional. The California Supreme Court ruled in Choudhry v. Free, 17 C.3d 660 (1976), that the Imperial Irrigation District's landowner requirement was an unconstitutional deprivation of equal protection of the laws. The Court declined to extend the ruling to all irrigation districts, but only because the other districts had not been parties in interest with an opportunity to present their views or to offer evidence. SB 1939 gets rid of the landowner requirement and replaces it with a requirement that each director of an irrigation district be a voter and a resident of the district. SB 1939 in no way prohibits resident landowners from voting or serving SB 1939 Page 3 on the board of directors of irrigation districts. It opens up the boards to qualified residents of the district whether or not they own property. 4)The Legislature has allowed eight irrigation districts (Glenn-Colusa, Richvale, Jackson Valley, Camp Fair West, Montague, Cordua, Provident, and Big Springs) to become landowner-voter districts, and has authorized the restriction of board membership, but not voting, to landowners in four others (Pixley, Hills Valley, Stratford, and Byron-Bethany). The governance provisions for these districts are found in Secs. 20527.5-20527.11 and 21100.2-21100.6 of Division 11 of the Water Code, which pertains to irrigation districts. SB 1939 preserves the current status of these 12 districts by including the phrase "except as otherwise provided in this division" in its amended version of Water Code Sec. 21100, thereby clearly exempting all irrigation districts with individually specified governance provisions. 5)SB 1939 allows an irrigation district board of directors to adopt a resolution authorizing landowners or their representatives to vote and to serve on the board of directors. A landowner need not be resident within the district in order to exercise these rights. However, if the irrigation district begins to provide services for domestic purposes (water, drainage, electricity, flood control, or sewage disposal), the provisions allowing absentee landowners to vote and serve as directors become inoperative, and control of the district shifts entirely to residents of the district. These provisions appear to be both overly broad and redundant. The basis for the Legislature's creation of the 12 current landowner-restricted districts was that the districts had few or no residents and provided only irrigation water to agricultural landowners. Any other district in these circumstances may be specifically exempted from resident-voter/board member status by legislation. In fact, SB 1571 (Costa), currently in the Assembly Appropriations Committee, proposes to make the James and Corcoran Irrigation Districts landowner-voter districts. These statutorily-established landowner-restricted districts are protected from SB 1939's resident-voter provision by the "except as otherwise provided for in this division" language of the bill. A broader, less well-defined exemption, such as is currently created in Section 4 of SB 1939, is unnecessary. SB 1939 Page 4 Suggested Author's Amendments The Committee may wish to request that the author delete Section 4 of the bill. It may also wish to request that the author change the archaic and frequently-misunderstood word "freeholder" to "landowner" in the second paragraph of Water Code Sec. 21100. Water Code Sections 21100.2, 21100.4, 21100.5, and 21100.6 should also be amended to remove reference to the landowner requirement of Section 21100 (which SB 1939 deletes) and replace it with the phrase "a person who is a landowner in the district?" 6)SB 1939 contains other provisions outside this Committee's jurisdiction. These other provisions address programs serving low-income electricity customers. 7)This bill has been double-referred to both the Assembly Committees on Utilities and Commerce, where it passed with a 9-0 vote on August 7, 2000, and to Local Government. REGISTERED SUPPORT / OPPOSITION : Support CA Journal For Filipino Americans CA Public Utilities Commission CA Rural Legal Assistance Foundation Central Valley Opportunity Center City of San Jose Coalition of CA Utility Employees Community Action Agency of San Mateo County, Inc. Community Medical Centers, Inc. Congress of CA Seniors Consumer Federation of CA Finca Management Inc. Foundation For Quality Housing Opportunities, Inc. The Greenlining Institute Hermandad Mexicana Nacional JERICHO Latin American Civic Association Latino Issues Forum Mexican American Legal Defense and Educational Fund Natural Resources Defense Council (if amended) SB 1939 Page 5 Pacific Gas & Electric Company Pacoima Beautiful Pueblo Nuevo Development Support (continued) Pueblo y Salud, Inc. Rural California Housing Corporation San Fernando Gardens Resident Management Corporation Sempra Energy Southern CA 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 CA Water Agencies CA League of Food Processors CA Municipal Utilities Association Cities of Gridley, Lodi, and Lompoc City of Azusa Light & Water Department City of San Bernardino Municipal Water Department Imperial Irrigation District Lassen Municipal Utility District Merced Irrigation District Modesto Irrigation District Northern CA Power Agency Roseville Electric Sacramento Municipal Utility District Southern CA Public Power Authority Trinity Public Utilities District Turlock Irrigation District Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916) 319-3958