Under the Metropolitan Water District Act, the board of a metropolitan water district is required to consist of at least one representative from each member public agency, as prescribed. The act authorizes each member public agency to appoint additional representatives not exceeding one additional representative for each 5% of the assessed valuation of property taxable for district purposes within the entire district that is within the boundaries of that member public agency.

This bill would, until January 1, 2030, authorize a representative of a member public agency that is entitled to designate or appoint only one representative to the board of directors to assign a proxy vote authorization to a representative of another member public agency to be exercised when the assigning representative is unable to attend a meeting or meetings of the board, as provided. The bill would require the proxy vote authorization to be memorialized by a written instrument, as specified. The bill would prohibit a proxy vote authorization from authorizing the assumption of the assigning representatives officer position at the designated meeting and would limit a proxy vote authorizations effectiveness to no more than 6 board meetings in a calendar year. The bill would declare that all provisions of the act apply to the representative assigned the proxy vote authorization and that all conflict of interest laws that apply to the assigning representative also apply to the representative assigned a proxy vote authorization.

Under the Metropolitan Water District Act, the board of a metropolitan water district is required to consist of at least one representative from each member public agency, as prescribed. The act authorizes each member public agency to appoint additional representatives not exceeding one additional representative for each 5% of the assessed valuation of property taxable for district purposes within the entire district that is within the boundaries of that member public agency.

This bill would, until January 1, 2030, authorize a representative of a member public agency that is entitled to designate or appoint only one representative to the board of directors to assign a proxy vote authorization to a representative of another member public agency to be exercised when the assigning representative is unable to attend a meeting or meetings of the board, as provided. The bill would require the proxy vote authorization to be memorialized by a written instrument, as specified. The bill would prohibit a proxy vote authorization from authorizing the assumption of the assigning representatives officer position at the designated meeting and would limit a proxy vote authorizations effectiveness to no more than 6 board meetings in a calendar year. The bill would declare that all provisions of the act apply to the representative assigned the proxy vote authorization and that all conflict of interest laws that apply to the assigning representative also apply to the representative assigned a proxy vote authorization.

Under the Metropolitan Water District Act, the board of a metropolitan water district is required to consist of at least one representative from each member public agency, as prescribed. The act authorizes each member public agency to appoint additional representatives not exceeding one additional representative for each 5% of the assessed valuation of property taxable for district purposes within the entire district that is within the boundaries of that member public agency.

This bill would would, until January 1, 2030, authorize a representative of a member public agency that is entitled to designate or appoint only one representative to the board of directors to assign a proxy vote authorization to a representative of another member public agency to be exercised when the assigning representative is unable to attend a meeting or meetings of the board, as provided. The bill would require the proxy vote authorization to be memorialized by a written instrument, as specified, and would limit a proxy vote authorizations effectiveness to one week. specified. The bill would prohibit a proxy vote authorization from authorizing the assumption of the assigning representatives officer position at the designated meeting and would prohibit a representative from assigning limit a proxy vote authorizations effectiveness to no more than 6 proxy vote authorizations board meetings in a calendar year. The bill would declare that all provisions of the act apply to the representative assigned the proxy vote authorization and that all conflict of interest laws that apply to the assigning representative also apply to the representative assigned a proxy vote authorization.

Under the Metropolitan Water District Act, the board of a metropolitan water district is required to consist of at least one representative from each member public agency, as prescribed. The act authorizes each member public agency to appoint additional representatives not exceeding one additional representative for each 5% of the assessed valuation of property taxable for district purposes within the entire district that is within the boundaries of that member public agency.

Under the Metropolitan Water District Act, the board of a metropolitan water district is required to consist of at least one representative from each member public agency, as prescribed. The act authorizes each member public agency to appoint additional representatives not exceeding one additional representative for each 5% of the assessed valuation of property taxable for district purposes within the entire district that is within the boundaries of that member public agency.

The bill would authorize each member public agency that is entitled to designate or appoint only one representative to the board of directors to designate or appoint one alternate representative for the limited purpose of participating in a meeting of the board of directors when the member public agencys designated or appointed representative will be absent from the meeting. The bill would prohibit the alternate representative from assuming any officer position at that meeting, would require the member public agency to be responsible for any additional costs of the alternate representatives meeting participation, and would condition the alternate representatives participation in a meeting of the board of directors on the corresponding member public agency providing the district notice by 5 p.m. on the 5th business day prior to the meeting. The bill would make these provisions inoperative on January 1, 2031.

 THIRD READING  

Bill No: AB 523

Author: Irwin (D)

Amended: 5/5/25 in Assembly

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 6-1, 6/18/25

AYES: Durazo, Arreguín, Cabaldon, Laird, Seyarto, Wiener

NOES: Choi

ASSEMBLY FLOOR: 70-4, 5/12/25 - See last page for vote

SUBJECT: Metropolitan water districts: proxy vote authorizations

SOURCE: Eastern Municipal Water District

DIGEST:

This bill allows, until January 1, 2030, certain members of the Metropolitan Water District of Southern California (MWD) board to assign a proxy to cast their vote under specified conditions.

ANALYSIS:

Existing law:

1. Requires, pursuant to the Ralph M. Brown Act (Brown Act), meetings of the legislative body of a local agency to be open and public.
2. Establishes provisions for teleconferencing of local agency meetings under specified circumstances.
3. Authorizes the formation of metropolitan water districts for the purpose of developing, storing, and distributing water for municipal and domestic purposes. The MWD is the only district organized under this act.
4. Establishes procedures for appointing members of the MWD board by participating member agencies, and for the allocation of votes among board members.

This bill:

1. Allows a representative from a MWD member agency with one seat on the MWD board to assign a proxy vote authorization to a representative of another member public agency if the assigning representative cannot attend a board meeting.
2. Requires the assigning representative to designate the meetings for which the proxy is valid. The proxy vote authorization must be in writing and filed with MWD’s board secretary one business day in advance of the meeting.
3. Limits the proxy authorization to being used for up to six board meetings in any calendar year.
4. Provides that:
   1. A proxy vote authorization does not allow the proxy to assume the assigning representative’s officer position, and it only applies to designated board meetings, not committee meetings.
   2. All provisions of the MWD Act apply to the representative assigned the proxy vote authorization.
   3. All conflict of interest laws that apply to the assigning representative also apply to the proxy when exercising a proxy vote authorization. If either the assigning representative or the proxy has a conflict of interest on a specific item, that conflict equally applies to the assigned representative regarding the proxy vote for that item.
5. Repeals this bill’s provisions on January 1, 2030.

Background

Brown Act. The Brown Act provides guidelines for how local agencies must hold public meetings. Among other provisions, the Brown Act requires meetings of the legislative body of a local agency be open and public.

The Brown Act generally requires local agencies to notice meetings in advance, including the posting of an agenda, and requires these meetings to be open and accessible to the public. The Brown Act only allows legislative bodies to take actions, meaning a majority vote of the legislative body unless otherwise specified, on items that appear on a posted agenda.

AB 3191 (Frazee, 1988) responded to these concerns by authorizing the legislative body of a local agency to use teleconferencing, meaning both members of the legislative body and the public have the opportunity to participate remotely.

More recently, AB 2449 (Blanca Rubio, Chapter 285, Statutes of 2022) gave members of legislative bodies more teleconferencing flexibility in certain cases. It allowed members of legislative bodies to participate remotely for “just cause” and “emergency circumstances” without noticing their teleconference location or making that location public.

MWD. MWD is a regional wholesale water district in Southern California that delivers water to 26 member public agencies. These member agencies in turn provide water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, making MWD the largest distributor of treated drinking water in the United States.

The MWD Act sets out the district’s governance structure, powers and duties, annexation processes, and taxation and bonding authorities. MWD is governed by a 38-member board, representing each of the district's 26 member agencies. The board establishes and administers MWD’s policies and oversees the operations of the district.

Each member agency appoints one director on the board, plus an additional director for each full five percent of assessed property valuation within the member agency’s territory, as a share of the total assessed valuation within MWD’s service area. For example, the City of Los Angeles appoints five directors: one for belonging to MWD and four more for its 20.63% share of assessed valuation. Accordingly, assessed valuation drives the current and future representation for all member agencies on the board.

MWD’s principal act also establishes a weighed voting system that is distinct from the number of seats that each agency gets. The voting power on the MWD’s board of directors reflects each member agency’s share of the MWD’s total assessed valuation, but rather than a fixed number of seats on the board, members get one vote for every $10 million of assessed valuation within the member agency.

Each year, MWD reviews the assessed property valuation of all 26 member agencies and adjusts its voting power and board makeup annually based on changes in the member agencies’ assessed valuations. MWD's service area has more than tripled in its assessed valuation over the last twenty years, from $863 billion to $4 trillion in 2024. However, this increase in assessed valuation is not consistent across MWD’s service area. For example, in the last fiscal year, the City of Los Angeles’s assessed valuation grew by 4.6%, while Eastern Municipal Water District’s grew by 11.8%. These changes create shifts in the makeup of MWD’s board and voting power over time.

While membership is based on assessed valuation and votes are allocated in proportion to assessed valuation, votes are not split equally among directors. The casting of votes is vested as a block in the agency, and not distributed among the number of board members. For example, the City of Los Angeles has five board members, but only one of them needs to be present to cast all 83,835 votes. Consequently, if a member agency with just one board member misses a meeting, its votes are not cast. As a result, the majority of member agencies with just one member cannot afford to miss a meeting, while board members from larger member agencies can miss meetings with no voting repercussions.

Eastern Municipal Water District wants the Legislature to ensure that MWD member agencies that only have one seat on the board can have their votes counted when their representative cannot attend a meeting.

Comments

Purpose of this bill. According to the author, “Of the 26 member agencies that constitute the Board of Directors of Metropolitan, 21 agencies are represented by a single board member. If a board member, acting as their member agency's sole representative, is unable to attend a board meeting, that member agency would lose the opportunity to cast a vote. This means their voice would go unheard regarding billion-dollar infrastructure projects and investments that impact nearly half the state's population. AB 523 will allow member agencies represented by a single board member to authorize a proxy vote authorization to another Metropolitan board member to vote on their agency's behalf if they are unable to attend a board meeting. This will ensure more fair and flexible representation for smaller member agencies on the Metropolitan board.”

Checking attendance. Under current law, MWD board members have at least two options at their disposal if they can’t travel to attend meetings. First, they can use the long-standing teleconferencing provisions under the Brown Act that allow them to participate in a meeting remotely so long as their location is publicly accessible and the public is notified ahead of time. Second, they can use the authority under AB 2449, which grants just cause exemptions for board members to participate via teleconferencing without public access or noticing their location. Together, these existing authorities provide flexibility for board members to attend meetings (and vote) remotely, ensuring they can still participate when they can’t attend in person and that the voice of their constituents does not go unheard. MWD reports that these authorities are frequently used by its board members. Despite this existing flexibility, AB 523 authorizes the casting of proxy votes when members with only one representative on the MWD board can't attend. Allowing proxy votes in this manner may increase the likelihood that board members will miss meetings because the consequences of doing so—that a member’s vote won’t be recorded—are lessened. When board members don’t attend meetings, their constituents are deprived of the opportunity to directly confront their representative about decisions they may disagree with. Given the existing flexibility in the Brown Act for teleconferencing to enable board members to attend remotely, it is unclear whether AB 523 strikes the right balance between ensuring member agencies can cast votes and the public's right to address their representatives.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 6/19/25)

Eastern Municipal Water District (Source)

Adan Ortega Jr. Representative of the City of San Fernando

Association of California Water Agencies

Central Basin Municipal Water District

City of Beverly Hills

Elsinore Valley Municipal Water District

Inland Empire Utilities Agency

Las Virgenes Municipal Water District

Upper San Gabriel Valley Municipal Water District

Western Municipal Water District

OPPOSITION: (Verified 6/19/25)

None received

ASSEMBLY FLOOR: 70-4, 5/12/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Irwin, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NOES: DeMaio, Gallagher, Hoover, Patterson

NO VOTE RECORDED: Hadwick, Jackson, Lackey, Macedo, Stefani

Prepared by: Anton Favorini-Csorba / L. GOV. / (916) 651-4119

6/19/25 16:25:43

**** END ****

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2025 - 2026 Regular

Metropolitan water districts: proxy vote authorizations

Allows, until January 1, 2030, certain members of the Metropolitan Water District of Southern California board to assign a proxy to cast their vote under specified conditions.

Background

Brown Act. The Ralph M. Brown Act provides guidelines for how local agencies must hold public meetings. Among other provisions, the Brown Act requires meetings of the legislative body of a local agency be open and public. The Legislature originally enacted the Brown Act in 1953 and has since amended it numerous times.

The Brown Act generally requires local agencies to notice meetings in advance, including the posting of an agenda, and requires these meetings to be open and accessible to the public. The Brown Act only allows legislative bodies to take actions, meaning a majority vote of the legislative body unless otherwise specified, on items that appear on a posted agenda.

Teleconferencing and the Brown Act. The Brown Act first allowed teleconference meetings in 1988. At the time, San Diego County was considering the use of video teleconferencing for meetings and hearings of the board of supervisors due to concerns about the long distances some of their constituents travelled to participate, and were concerned these distances prohibited some people from attending at all. AB 3191 (Frazee, 1988) responded to these concerns by authorizing the legislative body of a local agency to use teleconferencing, meaning both members of the legislative body and the public have the opportunity to participate remotely.

Since that time, a number of bills have made modifications to this original authorization. The Brown Act allows the legislative body of a local agency to use teleconferencing for the benefit of the public and the legislative body in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding must comply with all requirements of the Brown Act and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding. Accordingly, if a member participated via teleconference, the Brown Act requires them to notice the location and make it publicly accessible.

In response to the impacts of the COVID-19 pandemic, including mandatory “stay-at-home” orders, the Legislature provided local agencies with more flexibility to use teleconferencing. “Teleconferencing flexibility” means that a meeting can be teleconferenced without meeting all of the requirements that generally apply to teleconferencing, including:

• Each teleconference location must be accessible to the public;
• Each teleconference location must be identified in the notice and agenda of the meeting or proceeding;
• The legislative body must post agendas at all teleconference locations; and
• During the teleconference, at least a quorum of the members of the legislative body must participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, with specified exceptions.

Among other bills granting flexibility, AB 2449 (Blanca Rubio, 2022) gave members of legislative bodies more teleconferencing flexibility in non-emergency circumstances. It allowed members of legislative bodies to participate remotely for “just cause” and “emergency circumstances” without noticing their teleconference location or making that location public. Under the measure, just cause includes:

• Childcare or caregiving need that requires a member to participate remotely;
• A contagious illness that prevents a member from attending in person;
• A need related to a physical or mental disability not otherwise accommodated; and
• Travel while on official business of the legislative body or another state or local agency.

Emergency circumstances are a physical or family medical emergency that prevents a member from attending in person.

Metropolitan Water District of Southern California (MWD). The Metropolitan Water District Act (MWD Act) authorizes the creation of metropolitan water districts for the purpose of developing, storing, and distributing water for municipal and domestic purposes. The only district organized under this act is the Metropolitan Water District of Southern California (MWD). MWD is a regional wholesale water district in Southern California that delivers water to 26 member public agencies. These member agencies in turn provide water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, making MWD the largest distributor of treated drinking water in the United States. MWD owns and operates an extensive water system, including the Colorado River Aqueduct, 16 hydroelectric facilities, nine reservoirs, 819 miles of large-scale pipes, and five water treatment plants. MWD also helps its member agencies develop water recycling, storage, and other local resource programs.

The MWD Act sets out the district’s governance structure, powers and duties, annexation processes, and taxation and bonding authorities. MWD is governed by a 38-member board, representing each of the district's 26 member agencies. The board establishes and administers MWD’s policies and oversees the operations of the district.

MWD board seats and voting. Each member agency appoints one director on the board, plus an additional director for each full five percent of assessed property valuation within the member agency’s territory, as a share of the total assessed valuation within MWD’s service area. For example, the City of Los Angeles appoints five directors: one for belonging to MWD and four more for its 20.63% share of assessed valuation. Accordingly, assessed valuation drives the current and future representation for all member agencies on the board.

MWD’s principal act also establishes a weighed voting system that is distinct from the number of seats that each agency gets. The voting power on the MWD’s board of directors reflects each member agency’s share of the MWD’s total assessed valuation, but rather than a fixed number of seats on the board, members get one vote for every $10 million of assessed valuation within the member agency.

Each year, MWD reviews the assessed property valuation of all 26 member agencies and adjusts its voting power and board makeup annually based on changes in the member agencies’ assessed valuations. MWD's service area has more than tripled in its assessed valuation over the last twenty years, from $863 billion to $4 trillion in 2024. However, this increase in assessed valuation is not consistent across MWD’s service area. For example, in the last fiscal year, the City of Los Angeles’s assessed valuation grew by 4.6%, while Eastern Municipal Water District’s grew by 11.8%. These changes create shifts in the makeup of MWD’s board and voting power over time.

While membership is based on assessed valuation and votes are allocated in proportion to assessed valuation, votes are not split equally among directors. The casting of votes is vested as a block in the agency, and not distributed among the number of board members. For example, the City of Los Angeles has five board members, but only one of them needs to be present to cast all 83,835 votes. Consequently, if a member agency with just one board member misses a meeting, its votes are not cast. As a result, the majority of member agencies with just one member cannot afford to miss a meeting, while board members from larger member agencies can miss meetings with no voting repercussions.

Eastern Municipal Water District wants the Legislature to ensure that MWD member agencies that only have one seat on the board can have their votes counted when their representative cannot attend a meeting.

Proposed Law

Assembly Bill 523 allows, until January 1, 2030, certain members of the MWD board to assign a proxy to cast their vote under specified conditions.

Specifically, AB 523 allows a representative from a MWD member agency with one seat on the MWD board to assign a proxy vote authorization to a representative of another member public agency if the assigning representative cannot attend a board meeting. The assigning representative designates the meetings for which the proxy is valid. The proxy vote authorization must be in writing and filed with MWD’s board secretary one business day in advance of the meeting. The proxy authorization can only be used for up to six board meetings in any calendar year. A proxy vote authorization does not allow the proxy to assume the assigning representative’s officer position, and it only applies to designated board meetings, not committee meetings.

All provisions of the MWD Act apply to the representative assigned the proxy vote authorization. The bill also specifies that all conflict of interest laws that apply to the assigning representative also apply to the proxy when exercising a proxy vote authorization. If either the assigning representative or the proxy has a conflict of interest on a specific item, that conflict equally applies to the assigned representative regarding the proxy vote for that item.

Comments

1. Purpose of the bill. According to the author, “Of the 26 member agencies that constitute the Board of Directors of Metropolitan, 21 agencies are represented by a single board member. If a board member, acting as their member agency's sole representative, is unable to attend a board meeting, that member agency would lose the opportunity to cast a vote. This means their voice would go unheard regarding billion-dollar infrastructure projects and investments that impact nearly half the state's population. AB 523 will allow member agencies represented by a single board member to authorize a proxy vote authorization to another Metropolitan board member to vote on their agency's behalf if they are unable to attend a board meeting. This will ensure more fair and flexible representation for smaller member agencies on the Metropolitan board.”

2. Checking attendance. Under current law, MWD board members have at least two options at their disposal if they can’t travel to attend meetings. First, they can use the long-standing teleconferencing provisions under the Brown Act that allow them to participate in a meeting remotely so long as their location is publicly accessible and the public is notified ahead of time. Second, they can use the authority under AB 2449, which grants just cause exemptions for board members to participate via teleconferencing without public access or noticing their location. Together, these existing authorities provide flexibility for board members to attend meetings (and vote) remotely, ensuring they can still participate when they can’t attend in person and that the voice of their constituents does not go unheard. MWD reports that these authorities are frequently used by its board members.

Despite this existing flexibility, AB 523 authorizes the casting of proxy votes when members with only one representative on the MWD board can't attend. Allowing proxy votes in this manner may increase the likelihood that board members will miss meetings because the consequences of doing so—that a member’s vote won’t be recorded—are lessened. When board members don’t attend meetings, their constituents are deprived of the opportunity to directly confront their representative about decisions they may disagree with. Given the existing flexibility in the Brown Act for teleconferencing to enable board members to attend remotely, it is unclear whether AB 523 strikes the right balance between ensuring member agencies can cast votes and the public's right to address their representatives.

3. Tried that already. The introduced version of AB 523 granted MWD members that only appoint one member to the board to also designate an alternate, instead of establishing a proxy vote system. The advantage of this approach is that a representative of each member agency must be present in order to have their vote counted. However, this raised concerns that more individuals would be eligible to participate in closed session meetings of the MWD board, which might impair the confidentiality of those deliberations. Amendments on April 22^nd bill removed this authority and inserted the current provisions relating to proxy voting.

4. Related legislation. SB 707 (Durazo), which the Committee approved at its April 2^nd hearing on a vote of 5-0, makes numerous changes to the Brown Act, including to authorize teleconferencing without providing a publicly accessible location for members of a multi-jurisdictional body (including MWD) in specified circumstances. SB 707 is pending in the Assembly Local Government Committee.

Assembly Actions

Assembly Local Government Committee: 8-1

Assembly Floor: 70-4

Support and Opposition

(6/13/2025)

Support: Eastern Municipal Water District (Sponsor)
Adan Ortega Jr. Representative of the City of San Fernando
Association of California Water Agencies (ACWA)
Central Basin Municipal Water District
City of Beverly Hills
Elsinore Valley Municipal Water District
Inland Empire Utilities Agency
Las Virgenes Municipal Water District
Upper San Gabriel Valley Municipal Water District
Western Municipal Water District

Opposition: None Submitted

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 523

Author:(Irwin)

As Amended Ver:May 05, 2025

Majority vote

SUMMARY

Establishes a process for certain member agencies of the Metropolitan Water District of Southern California (MWD) to designate a proxy for the purposes of voting at a MWD board meeting.

Major Provisions

1. Authorizes a representative of a member public agency of MWD entitled to designate or appoint only one representative to assign a proxy vote authorization to a representative of another member public agency that shall be exercised when the assigning representative is unable to attend a meeting or meetings of the board.
2. Provides that a proxy vote authorization permits the assigned representative to cast votes on behalf of the assigning representative only for the assigned meeting or meetings designated by the assigning representatives.
3. Requires the proxy vote authorization to be memorialized by a written instrument as required by MWD and filed with MWD's board secretary one business day in advance of the meeting and the written instrument shall be maintained with Metropolitan's records.
4. Specifies that a proxy vote shall not authorize the assumption of the assigning representative's officer position at the meeting or meetings designated by the assigning representative. A proxy vote authorization shall be valid for the designated assigned meeting or meetings of the board, except committee meetings, and shall be effective for no more than six board meetings in any calendar year.
5. Provides that all provisions of the Metropolitan Water District Act (Act) shall apply to the representative assigned the proxy vote authorization. All laws relating to conflicts of interest that apply to the assigning representative shall also apply to the representative assigned a proxy vote authorization. A conflict of interest held by either the assigning representative or the assigned representative applies equally to the assigned representative relative to a proxy vote authorization for any conflicted item.
6. Specifies that this bill shall remain in effect only until January 1, 2030, and as of that date is repealed.

COMMENTS

MWD. The MWD Act authorizes the creation of metropolitan water districts for the purpose of developing, storing, and distributing water for municipal and domestic purposes. MWD is the only district organized under this act. MWD is a regional wholesale water district in Southern California that delivers water to 26 member public agencies. These member agencies in turn provide water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, making MWD the largest distributor of treated drinking water in the United States. MWD has imported water from the Colorado River since 1941 and from Northern California since the early 1970s.

The MWD Act sets out the district's governance structure, powers and duties, annexation processes, and taxation and bonding authorities. MWD is governed by a 38-member board, representing each of the district's 26 member agencies. The board establishes and administers MWD's policies and oversees the operations of MWD.

Each member agency is represented by one director on the Board, plus an additional director for each full 5% of assessed property valuation. For example, the City of Los Angeles appoints five directors, one for belonging to MWD and four more for its 20.63% share of assessed property valuation. MWD's principal act also establishes a weighed voting system that is distinct from the number of seats that each agency gets. The voting power on MWD's board of directors reflects each member agency's share of MWD's total assessed valuation. However, rather than a fixed number of seats on the board, members get one vote for every $10 million of assessed valuation within the member agency. According to MWD's August 20, 2024, report on the list of certified assessed valuations for Fiscal Year 2024/2025, the assessed valuations within MWD is more than $4 trillion.

Each year, MWD reviews the assessed property valuation of all 26 member agencies. Assessed valuation is the key to the current and future representation for all member agencies on the Board. While membership is based on assessed valuation and votes are allocated in proportion to assessed valuation, votes are not split equally among directors. The casting of votes is vested as a block in the agency, and not distributed among the number of board members. For example, the City of Los Angeles has five board members, but only one of them needs to be present to cast all 83,835 votes. Consequently, if a member agency with just one board member misses a meeting, its votes are not cast. As a result, the majority of member agencies with just one member cannot afford to miss a meeting, while board members from larger member agencies can miss meetings with no voting repercussions. The current members with more than one member on the MWD board are:

1. The City of Los Angeles, with five members.
2. The Municipal Water District of Orange County, with four members.
3. The San Diego County Water Authority, with four members.
4. The Central Basin Municipal Water District, with two members.
5. The West Basin Municipal Water District, with two members.

Attempts to change the governance structure or to provide more flexibility for smaller MWD members have taken place in recent years. AB 1220 (Garcia), Chapter 71, Statutes of 2019, provided that each MWD member agency cannot have fewer than the number of representatives the member agency had as of January 1, 2019. Similar to this bill, AB 885 of 2008 would have authorized a member public agency to appoint a proxy for each representative that is appointed or selected to serve on MWD's board of directors, and the member public agencies which appointed the proxy would have had to pay all costs for their alternate. However, AB 885 was vetoed by the Governor due to circumstances unrelated to the bill. The Governor stated in the veto message that, "The historic delay in passing the 2008-2009 State Budget has forced me to prioritize the bills sent to my desk at the end of the year's legislative session. Given the delay, I am only signing bills that are the highest priority for California. This bill does not meet that standard and I cannot sign it at this time."

County Water Authorities. The sponsors of this bill have pointed to the San Diego County Water Authority (Authority) as an example of a water agency that currently uses a proxy voting system. Under the County Water Authority Act (CWA Act), a member of the board of directors of the Authority is allowed to designate another member of the board to vote in their absence. The designation and confirmation must be by a written instrument file with the Authority and a written notice must be filed with the board secretary that a director will be absent and they wish for the designee to cast a vote on their behalf. The designation, confirmation, and notices must be maintained on file with the Authority, and the designation may be changed from time to time with the confirmation of the representative's agency. The CWA Act specifically prohibits the designation to direct how the absent representative's vote shall be cast on any matter.

According to the Author

According to the author, "Of the 26 member agencies that constitute the Board of Directors of Metropolitan, 21 agencies are represented by a single board member. If a board member, acting as their member agency's sole representative, were unable to attend a board meeting, that member agency would lose the opportunity to cast a vote. This means their voice could go unheard regarding billion-dollar infrastructure projects and investments that impact nearly half the state's population.

AB 523 will allow member agencies represented by a single board member to authorize a proxy vote authorization to another Metropolitan board member to vote on their agency's behalf if they are unable to attend a board meeting. This will ensure more fair and flexible representation for smaller member agencies on the Metropolitan board."

Arguments in Support

According to the sponsors of this bill, the Eastern Municipal Water District, "Currently, for agencies with multiple representatives, any individual representative may cast the entirety of the weighted votes allotted to that member agency. However, in the event a representative of a single-representative agency is unable to attend a board meeting, either physically or by teleconferencing, the member agency loses the opportunity to vote. This has impacted EMWD and other Metropolitan member agencies with a single representative and creates an inequitable voting structure at Metropolitan. As an agency that is embarking on billion-dollar infrastructure investments and water supply initiatives that impact millions of Californians, Metropolitan board's actions hold tremendous consequence for their member agencies and the customers that they serve. This underscores the need for more fair and flexible representation for smaller member agencies on the Metropolitan board."

Arguments in Opposition

None on file.

FISCAL COMMENTS

None.

VOTES

ASM LOCAL GOVERNMENT: 8-1-1

YES: Carrillo, Ta, Pacheco, Ramos, Blanca Rubio, Stefani, Ward, Wilson

NO: Hoover

ABS, ABST OR NV: Ransom

UPDATED

VERSION: May 05, 2025

CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0000330

ASSEMBLY THIRD READING

ATR Bill Id:AB 523

Author:(Irwin)

As Amended Ver:April 22, 2025

Majority vote

SUMMARY

Establishes a process for certain member agencies of the Metropolitan Water District of Southern California (MWD) to designate a proxy for the purposes of voting at a MWD board meeting.

Major Provisions

1. Authorizes a representative of a member public agency of MWD entitled to designate or appoint only one representative to assign a proxy vote authorization to a representative of another member public agency that shall be exercised when the assigning representative is unable to attend a meeting or meetings of the board.
2. Provides that a proxy vote authorization permits the assigned representative to cast votes on behalf of the assigning representative only for the assigned meeting or meetings designated by the assigning representatives.
3. Requires the proxy vote authorization to be memorialized by a written instrument as required by MWD and filed with MWD's board secretary one business day in advance of the meeting and the written instrument shall be maintained with Metropolitan's records.
4. Specifies that a proxy vote shall not authorize the assumption of the assigning representative's officer position at the meeting or meetings designated by the assigning representative. A proxy vote authorization shall be valid for the designated assigned meeting or meetings of the board, except committee meetings, and shall be effective for no more than six board meetings in any calendar year.
5. Provides that all provisions of the Metropolitan Water District Act (Act) shall apply to the representative assigned the proxy vote authorization. All laws relating to conflicts of interest that apply to the assigning representative shall also apply to the representative assigned a proxy vote authorization. A conflict of interest held by either the assigning representative or the assigned representative applies equally to the assigned representative relative to a proxy vote authorization for any conflicted item.
6. Specifies that this bill shall remain in effect only until January 1, 2030, and as of that date is repealed.

COMMENTS

MWD. The MWD Act authorizes the creation of metropolitan water districts for the purpose of developing, storing, and distributing water for municipal and domestic purposes. MWD is the only district organized under this act. MWD is a regional wholesale water district in Southern California that delivers water to 26 member public agencies. These member agencies in turn provide water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, making MWD the largest distributor of treated drinking water in the United States. MWD has imported water from the Colorado River since 1941 and from Northern California since the early 1970s.

The MWD Act sets out the district's governance structure, powers and duties, annexation processes, and taxation and bonding authorities. MWD is governed by a 38-member board, representing each of the district's 26 member agencies. The board establishes and administers MWD's policies and oversees the operations of MWD.

Each member agency is represented by one director on the Board, plus an additional director for each full 5% of assessed property valuation. For example, the City of Los Angeles appoints five directors, one for belonging to MWD and four more for its 20.63% share of assessed property valuation. MWD's principal act also establishes a weighed voting system that is distinct from the number of seats that each agency gets. The voting power on MWD's board of directors reflects each member agency's share of MWD's total assessed valuation. However, rather than a fixed number of seats on the board, members get one vote for every $10 million of assessed valuation within the member agency. According to MWD's August 20, 2024, report on the list of certified assessed valuations for Fiscal Year 2024/2025, the assessed valuations within MWD is more than $4 trillion.

Each year, MWD reviews the assessed property valuation of all 26 member agencies. Assessed valuation is the key to the current and future representation for all member agencies on the Board. While membership is based on assessed valuation and votes are allocated in proportion to assessed valuation, votes are not split equally among directors. The casting of votes is vested as a block in the agency, and not distributed among the number of board members. For example, the City of Los Angeles has five board members, but only one of them needs to be present to cast all 83,835 votes. Consequently, if a member agency with just one board member misses a meeting, its votes are not cast. As a result, the majority of member agencies with just one member cannot afford to miss a meeting, while board members from larger member agencies can miss meetings with no voting repercussions. The current members with more than one member on the MWD board are:

1. The City of Los Angeles, with five members.
2. The Municipal Water District of Orange County, with four members.
3. The San Diego County Water Authority, with four members.
4. The Central Basin Municipal Water District, with two members.
5. The West Basin Municipal Water District, with two members.

Attempts to change the governance structure or to provide more flexibility for smaller MWD members have taken place in recent years. AB 1220 (Garcia), Chapter 71, Statutes of 2019, provided that each MWD member agency cannot have fewer than the number of representatives the member agency had as of January 1, 2019. Similar to this bill, AB 885 of 2008 would have authorized a member public agency to appoint a proxy for each representative that is appointed or selected to serve on MWD's board of directors, and the member public agencies which appointed the proxy would have had to pay all costs for their alternate. However, AB 885 was vetoed by the Governor due to circumstances unrelated to the bill. The Governor stated in the veto message that, "The historic delay in passing the 2008-2009 State Budget has forced me to prioritize the bills sent to my desk at the end of the year's legislative session. Given the delay, I am only signing bills that are the highest priority for California. This bill does not meet that standard and I cannot sign it at this time."

County Water Authorities. The sponsors of this bill have pointed to the San Diego County Water Authority (Authority) as an example of a water agency that currently uses a proxy voting system. Under the County Water Authority Act (CWA Act), a member of the board of directors of the Authority is allowed to designate another member of the board to vote in their absence. The designation and confirmation must be by a written instrument file with the Authority and a written notice must be filed with the board secretary that a director will be absent and they wish for the designee to cast a vote on their behalf. The designation, confirmation, and notices must be maintained on file with the Authority, and the designation may be changed from time to time with the confirmation of the representative's agency. The CWA Act specifically prohibits the designation to direct how the absent representative's vote shall be cast on any matter.

According to the Author

According to the author, "Of the 26 member agencies that constitute the Board of Directors of Metropolitan, 21 agencies are represented by a single board member. If a board member, acting as their member agency's sole representative, were unable to attend a board meeting, that member agency would lose the opportunity to cast a vote. This means their voice could go unheard regarding billion-dollar infrastructure projects and investments that impact nearly half the state's population.

AB 523 will allow member agencies represented by a single board member to authorize a proxy vote authorization to another Metropolitan board member to vote on their agency's behalf if they are unable to attend a board meeting. This will ensure more fair and flexible representation for smaller member agencies on the Metropolitan board."

Arguments in Support

According to the sponsors of this bill, the Eastern Municipal Water District, "Currently, for agencies with multiple representatives, any individual representative may cast the entirety of the weighted votes allotted to that member agency. However, in the event a representative of a single-representative agency is unable to attend a board meeting, either physically or by teleconferencing, the member agency loses the opportunity to vote. This has impacted EMWD and other Metropolitan member agencies with a single representative and creates an inequitable voting structure at Metropolitan. As an agency that is embarking on billion-dollar infrastructure investments and water supply initiatives that impact millions of Californians, Metropolitan board's actions hold tremendous consequence for their member agencies and the customers that they serve. This underscores the need for more fair and flexible representation for smaller member agencies on the Metropolitan board."

Arguments in Opposition

None on file.

FISCAL COMMENTS

None.

VOTES

ASM LOCAL GOVERNMENT: 8-1-1

YES: Carrillo, Ta, Pacheco, Ramos, Blanca Rubio, Stefani, Ward, Wilson

NO: Hoover

ABS, ABST OR NV: Ransom

UPDATED

VERSION: April 22, 2025

CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0000330

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

ABPCA Bill Id:AB 523 (

Author:Irwin) – As Amended Ver:April 22, 2025

SUBJECT: Metropolitan water districts: proxy vote authorizations.

SUMMARY: Establishes a process for a member agency of the Metropolitan Water District of Southern California (MWD) to designate a proxy for the purposes of voting at a MWD board meeting. Specifically, this bill:

1. Authorizes a representative of a member public agency of MWD entitled to designate or appoint only one representative to assign a proxy vote authorization to a representative of another member public agency that shall be exercised when the assigning representative is unable to attend a meeting or meetings of the board.
2. Provides that a proxy vote authorization permits the assigned representative to cast votes on behalf of the assigning representative only for the assigned meeting or meetings designated by the assigning representatives.
3. Requires the proxy vote authorization to be memorialized by a written instrument as required by MWD and filed with MWD’s board secretary one business day in advance of the meeting and the written instrument shall be maintained with Metropolitan’s records.
4. Specifies that a proxy vote shall not authorize the assumption of the assigning representative’s officer position at the meeting or meetings designated by the assigning representative. A proxy vote authorization shall be valid for the designated assigned meeting or meetings of the board, except committee meetings, and shall be effective for no longer than one week. A representative shall not assign a proxy vote authorization more than six times in any year.
5. Provides that all provisions of the Metropolitan Water District Act (Act) shall apply to the representative assigned the proxy vote authorization. All laws relating to conflicts of interest that apply to the assigning representative shall also apply to the representative assigned a proxy vote authorization. A conflict of interest held by either the assigning representative or the assigned representative applies equally to the assigned representative relative to a proxy vote authorization for any conflicted item.

FISCAL EFFECT: None.

COMMENTS:

1. Bill Summary. This bill establishes a process for a member agency of the MWD to designate a proxy for the purposes of voting at a MWD board meeting. The proxy vote permits the assigned proxy to cast votes on behalf of the assigning representative only for the assigned meeting or meetings, and the proxy vote authorization must be memorialized by a written instrument as required by MWD. This bill also prohibits the assumption of an officer position at a meeting, and the authorization is effective for only one week for a total of six authorizations in any year. Lastly, this bill specifies that all laws relating to conflicts of interest apply to the assigned proxy.

The Eastern Municipal Water District is the sponsor of this bill.

1. Author’s Statement. According to the author, “Of the 26 member agencies that constitute the Board of Directors of Metropolitan, 21 agencies are represented by a single board member. If a board member, acting as their member agency’s sole representative, were unable to attend a board meeting, that member agency would lose the opportunity to cast a vote. This means their voice could go unheard regarding billion-dollar infrastructure projects and investments that impact nearly half the state’s population.
   

AB 523 will allow member agencies represented by a single board member to authorize a proxy vote authorization to another Metropolitan board member to vote on their agency’s behalf if they are unable to attend a board meeting. This will ensure more fair and flexible representation for smaller member agencies on the Metropolitan board.”

1. MWD. The MWD Act authorizes the creation of metropolitan water districts for the purpose of developing, storing, and distributing water for municipal and domestic purposes. MWD is the only district organized under this act. MWD is a regional wholesale water district in Southern California that delivers water to 26 member public agencies. These member agencies in turn provide water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, making MWD the largest distributor of treated drinking water in the United States. MWD has imported water from the Colorado River since 1941 and from Northern California since the early 1970s.
   

The MWD Act sets out the district’s governance structure, powers and duties, annexation processes, and taxation and bonding authorities. MWD is governed by a 38-member board, representing each of the district's 26 member agencies. The board establishes and administers MWD’s policies and oversees the operations of MWD.

Each member agency is represented by one director on the Board, plus an additional director for each full 5% of assessed property valuation. For example, the City of Los Angeles appoints five directors, one for belonging to MWD and four more for its 20.63% share of assessed property valuation. MWD’s principal act also establishes a weighed voting system that is distinct from the number of seats that each agency gets. The voting power on MWD’s board of directors reflects each member agency’s share of MWD’s total assessed valuation. However, rather than a fixed number of seats on the board, members get one vote for every $10 million of assessed valuation within the member agency. According to MWD’s August 20, 2024, report on the list of certified assessed valuations for Fiscal Year 2024/2025, the assessed valuations within MWD is more than $4 trillion.

Each year, MWD reviews the assessed property valuation of all 26 member agencies. Assessed valuation is the key to the current and future representation for all member agencies on the Board. While membership is based on assessed valuation and votes are allocated in proportion to assessed valuation, votes are not split equally among directors. The casting of votes is vested as a block in the agency, and not distributed among the number of board members. For example, the City of Los Angeles has five board members, but only one of them needs to be present to cast all 83,835 votes. Consequently, if a member agency with just one board member misses a meeting, its votes are not cast. As a result, the majority of member agencies with just one member cannot afford to miss a meeting, while board members from larger member agencies can miss meetings with no voting repercussions. The current members with more than one member on the MWD board are:

• 1. The City of Los Angeles, with five members.
     
  2. The Municipal Water District of Orange County, with four members.
     
  3. The San Diego County Water Authority, with four members.
     
  4. The Central Basin Municipal Water District, with two members.
     
  5. The West Basin Municipal Water District, with two members.

Attempts to change the governance structure or to provide more flexibility for smaller MWD members have taken place in recent years. AB 1220 (Garcia), Chapter 71, Statutes of 2019, provided that each MWD member agency cannot have fewer than the number of representatives the member agency had as of January 1, 2019. Similar to this bill, AB 885 of 2008 would have authorized a member public agency to appoint a proxy for each representative that is appointed or selected to serve on MWD’s board of directors, and the member public agencies which appointed the proxy would have had to pay all costs for their alternate. However, AB 885 was vetoed by the Governor due to circumstances unrelated to the bill. The Governor stated in the veto message that, “The historic delay in passing the 2008-2009 State Budget has forced me to prioritize the bills sent to my desk at the end of the year’s legislative session. Given the delay, I am only signing bills that are the highest priority for California. This bill does not meet that standard and I cannot sign it at this time.”

1. County Water Authorities. The sponsors of this bill have pointed to the San Diego County Water Authority (Authority) as an example of a water agency that currently uses a proxy voting system. Under the County Water Authority Act (CWA Act), a member of the board of directors of the Authority is allowed to designate another member of the board to vote in their absence. The designation and confirmation must be by a written instrument file with the Authority and a written notice must be filed with the board secretary that a director will be absent and they wish for the designee to cast a vote on their behalf. The designation, confirmation, and notices must be maintained on file with the Authority, and the designation may be changed from time to time with the confirmation of the representative’s agency. The CWA Act specifically prohibits the designation to direct how the absent representative’s vote shall be cast on any matter.
2. Policy Consideration. The 38 board members of MWD are elected officials and appointed community members, with significant interest and knowledge in MWD affairs. Since its inception in 1928, MWD has functioned without alternate or proxy board members. Although not completely unique, it is unclear how common a proxy vote is in the manner that this bill provides. While being able to appoint a proxy to vote on behalf of a member agency provides more flexibility to smaller agencies, it also gives a MWD board member the ability to make decisions for an agency in which they were not elected. Does this bill allow for the same scrutiny by voters of decisions that are made by a proxy on behalf of another local agency? The Committee may wish to consider if a system to appoint proxies from another agency strikes the right balance between flexibility and accountability.
3. Committee Amendments. In order to address the above policy consideration, the Committee may wish to amend the bill as follows:
   

Sec. 52. (c) (1) A representative of a member public agency entitled to designate or appoint only one representative may assign a proxy vote authorization to a representative of another member public agency that shall be exercised when the assigning representative is unable to attend a meeting or meetings of the board and pursuant to this subdivision. A proxy vote authorization permits the assigned representative to cast votes on behalf of the assigning representative only for the assigned meeting or meetings designated by the assigning representative. The proxy vote authorization shall be memorialized by a written instrument as required by the district and filed with the district’s Board Secretary one business day in advance of the meeting and the written instrument shall be maintained with the district records.

(2) A proxy vote authorization shall not authorize the assumption of the assigning representative’s officer position at the meeting or meetings designated by the assigning representative. A proxy vote authorization shall be valid for the designated assigned meeting or meetings of the board, except committee meetings, and shall be effective for no longer than one week. A representative shall not assign a proxy vote authorization more than six board meetings times in any calendar year.

(3) All provisions of this act, including Section 56, shall apply to the representative assigned the proxy vote authorization. All laws relating to conflicts of interest that apply to the assigning representative shall also apply to the representative assigned a proxy vote authorization. A conflict of interest held by either the assigning representative or the assigned representative applies equally to the assigned representative relative to a proxy vote authorization for any conflicted item.

(4) This subdivision shall remain in effect only until January 1, 2030, and as of that date is repealed.

1. Arguments in Support. According to the sponsors of this bill, the Eastern Municipal Water District, “Currently, for agencies with multiple representatives, any individual representative may cast the entirety of the weighted votes allotted to that member agency. However, in the event a representative of a single-representative agency is unable to attend a board meeting, either physically or by teleconferencing, the member agency loses the opportunity to vote. This has impacted EMWD and other Metropolitan member agencies with a single representative and creates an inequitable voting structure at Metropolitan. As an agency that is embarking on billion-dollar infrastructure investments and water supply initiatives that impact millions of Californians, Metropolitan board’s actions hold tremendous consequence for their member agencies and the customers that they serve. This underscores the need for more fair and flexible representation for smaller member agencies on the Metropolitan board.”
   
2. Arguments in Opposition. None on file.
   

REGISTERED SUPPORT / OPPOSITION:

Support

Eastern Municipal Water District [SPONSOR]

City of Beverly Hills

Elsinore Valley Municipal Water District

Inland Empire Utilities Agency

Las Virgenes Municipal Water District

Upper San Gabriel Valley Municipal Water District (Introduced version)

Western Municipal Water District (Introduced version)

Opposition

None on file

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958