Document: 451 U.S. 355 101 S.Ct. 1811 68 L.Ed.2d 150 Germain H. BALL et al., Appellants,v.Roland W. JAMES al. No. 79-1740. Argued Feb. 23, 1981. Decided April 29, Syllabus The Salt River Project Agricultural Improvement and Power District (District), a governmental entity, stores delivers untreated water to the owners of 236,000 acres land in central Arizona, and, subsidize its operations, sells electricity hundreds thousands people an area including large part metropolitan Phoenix. Under state law, system for electing District's directors limits voting eligibility landowners apportions power according number owned. A class registered voters living within but owning either no or less than acre there, filed suit, claiming that election scheme violated Equal Protection Clause Fourteenth Amendment. They alleged because has such powers as authority condemn sell tax-exempt bonds, it virtually half State's population exercises significant influence on flood control environmental management, policies actions substantially affect all residents, regardless property ownership. Court upheld constitutionality scheme, Appeals reversed. It held case was governed by one-person, one-vote principle established Reynolds v. Sims, 377 533, 84 1362, 12 506, rather exception Salyer Land Co. Tulare Lake Basin Water Storage Dist., 410 719, 93 1224, 35 659, which law permitting only vote district special limited purpose disproportionate effect activities group. Held : is sufficiently specialized narrow bear so disproportionately release from strict demands principle. As Salyer, supra, constitutional bears reasonable relationship statutory objectives. Pp. 362-371. (a) distinctions between more diverse extensive services furnished here those involved do not amount difference. does exercise sort invoke Reynolds. cannot impose ad valorem taxes sales enact laws governing citizens' conduct. Nor administer normal government functions maintenance streets, operation schools, sanitation, health, welfare services. 365-366. (b) functions, constitute primary originating purpose, are relatively narrow. Although unlike much 40% delivered goes nonagricultural, urban purposes, constitutionally relevant fact distributed ownership use put landowners. 367-368. (c) legality property-based affected one largest suppliers electric State meets most capital operating costs selling power. provision itself general important function would make provider subject doctrine. And, any event, incidental to, thus change character of, functions. 368-370. (d) And specific whom makes eligible vote. Voting residents whose lands liens secure who acreage-based taxing power, committed District. 370-371. 9th Cir., 613 F.2d 180, reversed remanded. Rex E. Lee, Washington, D. C., appellants. Bruce Meyerson, Phoenix, Ariz., appellees. Justice STEWART opinion Court. 1 This appeal concerns reclamation which, essence, voter owns. requires us consider whether peculiarly this local body citizens releases 2 * public entity at issue District, comprising Arizona.1 formed 1937, subsidizes operations electricity, become supplier Nevertheless, history began efforts Arizona farmers 19th century irrigate arid Valley, parties have stipulated, purposes always been storage, delivery, conservation water. 3 early 1867, Valley attempted their with River. In 1895, concerned erratic unreliable flow river, they "Farmers Protective Association," helped persuade Congress pass Reclamation Act 1902, 32 Stat. 388, 43 U.S.C. § 371 seq. Act, United States gave interest-free loans help build projects. Project, developed, created 1903 result legislation. 1906, authorized projects under generate hydroelectric 522, supported means almost since creation. 1902 act provided users benefited project had agree repay constructing project, Users Association organized corporation serve contracting agent Association's Articles, drafted cooperation Federal Service, subscribing right decisions proportion subscribers Articles also authorize acreage-proportionate stock assessments raise income Association, becoming lien owners' until paid. For 15 years, Service operated maintained project's irrigation landowners; 1917 contract States, however, took these tasks, proceeding manage next 20 years. 4 faced serious financial difficulties during Depression built new dams other works sought borrowing money overly encumber subscribers' lands. seemed be available Arizona's 1922, creation districts federal Ariz.Rev.Code 1928, 3467 Such districts, political subdivisions State, could bonds exempt tax. many members opposed creating statute required elections per capita among landowners, acreage formula rights. 1936, response request legislature amended 1922 statute. essentially case, allowed limit voters, otherwise regularly qualified own district, apportion Ariz.Rev.Stat.Ann. §§ 45-909, 45-983 (Supp.1980-1981).2 then boundaries same Association's. 1937 agreement, made agent, transferred property, turn agreed continue operate maintain Project. current manages storage work delivery. financing, now permits through mirrors assessment 45-1014, 45-1015 (1956), secured real though can simultaneously revenues, 45-936 (Supp.1980-1981). II 5 lawsuit brought live geographic complaint enjoys land, levy property. because, management boundaries, substantial Seeking declaratory injunctive relief, appellees claimed violates 6 On cross-motions summary judgment stipulated facts, dismissed complaint. divided panel Ninth Circuit 180. Noting Court's repeated application turned attention marked upholding district: 659. decision resulted examination nature conclusion "by reason group," there decision. U.S., 728, S.Ct., 1229. Accordingly, considered electoral comparing effects 7 stressed covered sparsely populated wholly agricultural land. F.2d, 183. noted remained delivery agriculture, did provide utilities. Ibid. Finally, pointed out came completely against found least modern form, very different. major generator roughly areas nonagricultural uses. Id., 183-184. court therefore concluded special, proved decisive Salyer. Moreover, recognized $290 million obligation outstanding owned members, far serviced improvements financed revenue issued $600 million, junior bonds. 184. actual burden running fallen primarily such. 184-185.3 8 correct conceiving question distinguish entities demand We conclude, that, apply criteria correctly facts case. III 9 adherence legislators. Avery Midland County, 390 474, 88 1114, 45, extended rule officials county government, holding elected exercised "general over entire served body." 485, 1120.4 Court, reserved "a special-purpose unit assigned performance affecting definable groups constituents constituents." 483-484, 1120.5 Hadley Junior College 397 50, 90 791, 25 trustees community college "exercised powers" "perform[ed] functions" residing district. 53-54, 794. But stated: "It course possible might some elects certain functionaries duties removed different popular compliance . ." 56, 795.6 10 encompassed 193,000 acres, 85% were farmed another four corporations. 723, 1227. California acquire, store, conserve, distribute water, never chosen so, form saw fit support operations. 723-724, assessed each landowner benefits received. 724, At vote, apportioned valuation landowner's "some typical powers," hire fire workers, construction projects, private n. 7, 1230, 7. "relatively authority," "its indeed existence, acquisition, distribution farming Basin." (footnote omitted). burdens fall received district's 729, 1230.7 strictures proceeded inquire simply based bore relevancy statute's objectives.8 Legislature reasonably assumed without value willing possible. 731, 1231. 11 Appeals, currently Whereas included entirely devoted agriculture 77 persons, includes parts Phoenix cities. State. Further, whereas went used areas.9 Finally born value, met revenues generated power.10 careful reveals principles Avery, Hadley, cases, First, taxes. conduct citizens, nor services.11 Second, characterized broadly even own, sell, buy delivered. behind dams, conserves loss, canals.12 true, noted, purposes. distinction significance context. like ownership,13 entitled choose it. repeatedly courts, nominal order obtain inexpensive bond remain business enterprises, chiefly benefiting group Niedner 121 Ariz. 331, 590 P.2d 447; Uhlmann Wren, 97 366, 374, 401 113, 124; Local 266, I.B.E.W. 78 30, 41-42, 275 393, 402. transform into type Amendment election.14 13 neither existence size affects scheme. context, traditional element sovereignty, Jackson Metropolitan Edison Co., 419 345, 353, 95 449, 454, 42 477, doctrine case.15 enterprise.16 permitted beneficiaries intended statute.17 key may reflect created. legislative deliver sole making enable them development sale undertaken providing public, "to supplying uses applied increase reduce cost subscribed lands." 14 claim, agreed, sheer great matter how nonvoting buying consumers enterprise buy.18 Nothing cases suggests volume breadth economic venture incident can, weight, requirements narrow, justifies departure popular-election requirement aspect Only ever charged Association.19 say selected must well-being depend entity. Rather, entity's greater seeking vote.20 16 we conclude Here, stipulation parties, subscriptions well occurred assured voice business. Therefore, rationally weight dependent upon reflects relative risks incurred operations.21 17 reversed, remanded further proceedings consistent opinion. 18 ordered. 19 POWELL, concurring. I concur fully opinion, write separately emphasize importance my Legislature's 21 previously when core particular immediate numbers dictate. 659 (1973). See 795, 45 (1970); 1119-1120, (1968). "one person, vote" applicable bodies powers. 506 (1964). sense empowered deal problems resource service management. crucial sovereignty county, municipality.1 22 Our necessity experimentation structures meet often novel confronting communities. g., Holt Civic Club Tuscaloosa, 439 60, 71-72, 99 383, 390-391, 58 292 (1978). illustrates, difficult decide compromise impermissible delegation generally selective electorate. legislatures, responsive interests people, normally better courts.2 Given broad reforms effected should expect will vigilant prevent undue concentration hands undemocratic bodies. absence just safeguard justification role requiring reapportionment. Baker Carr, 369 186, 258-259, 82 691, 732, 663 (1962) (Clark, J., concurring). 23 convincingly demonstrates popularly body. Ante, 366-371. Both Nation performed administrative These tasks sometimes aridity Southwest, policy, historical interest irrigation, inherent insistent whole receive pay electricity. 24 Appellees argue prime Southwest purchase observations interfere constitution answer recently demonstrated processes reformed small householder expense landowner. 359, 2. reform doubt demographic changes established. composition me enough resources basic governance warranted. allow process operate. dictate Board detract democratic profess protect. 26 WHITE, BRENNAN, MARSHALL, BLACKMUN join, dissenting. 27 concluding "one-acre, one-vote" constitutional, misapplies (1973), strained logic several hundred thousand "peculiarly function." Because misreads our prior conceptually unsound, dissent. 28 franchise acts preserve "other civil rights." 562, 1381, presumed "when ways decision," "does permit exclusion franchise." Kolodziejski, 399 204, 209, 1990, 1994, 523 (1970). Any granting basis poses "danger denying effective affairs lives." Kramer Union Free School 15, 395 621, 627, 89 1886, 1889, 583 (1969).1 result, classification restricting franchise, except involving residence, age, citizenship, unconstitutional "unless demonstrate serves compelling interest." Hill Stone, 421 289, 297, 1637, 1643, 44 172 (1975). Kramer, 626-627, 1889; 1994 (giving alone "can justified overriding recognize"). 29 fundamental variety contexts invalidate discriminatory schemes limiting part, owners. invidious school (1) leased taxable realty locality; (2) parents custodians children enrolled schools. Cipriano City Houma, 701, 1897, 647 (1969), relevance present action, invalidated participation municipal utility holders. funds itself, create enforceable city. 705, 1900. impact fell nonproperty alike persons "use utilities rates," rejected disenfranchising issuance respect tax revenues. 209-213, 1994-1996. Police Jury Parish Vermilion Hebert, 404 807, 92 52, 30 39 (1971), summarily rev'g 258 La. 41, 245 So.2d 349 (cannot road improvement holders). view directly burdened where nonowners affected. Hill, 299, 1644. To sure, approved board District.2 Associated Enterprises, Inc. Toltec Watershed 743, 1237, 675 nothing changed inquiry. Reynolds-Avery-Kramer line inapplicable "special 1229 (emphasis supplied). authorities, quite insubstantial nonvoters. lived worked corporations hand, associated There "no way qua residents. 1230. 31 An analysis two factors possesses wide nonvoters require scrutiny mandated Kramer. clearly not, word, corporation. Pursuant Constitution, "political vested rights, privileges benefits, immunities exemptions granted municipalities Constitution States." Ariz.Const., Art. 13, controlling political, subdivision state, extent conferred chapter statutes immunity taxation." 45-902 (1956).3 exempt, taxation. attribute indicates function. eminent domain, import. given enter range contractual arrangements energy sources.4 Inherent authorization source nuclear Obviously, field transcends 33 allocate area. veto transfers surface place another, extends "watershed drainage supplies contributes [the] 45-172.5 34 Like "private" utilities, "natural monopolies," see Otter Tail 1022, 359 regulation authority. Corporation Commission prescribe "just rates" regulate aspects 40-321 (1974). rate structure before us, agency purports perform protecting perform. Rubenstein Construction & 76 402, 265 455 (1953) (Salt forbidding practices apply). Its set rates conditions constitutes attributes sovereignty. When combined consideration wide-ranging encompass personal uses, electrical generation needs customers, clear With immense complete. more—what detailed above certainly trigger standard cases. Previous expressly situations somewhat involved. suggested if sold authority, specifically housing, transportation, roads, anything else ordinarily 728-729, 1230 city's "need close judicial examination" "because meetings 'general' exacting necessitated election; rather, resident participate not." 629, 1890. (1970), despite sufficient throughout 36 here. single-purpose vital exercising initiatives across spectrum presently direct authorities supervising privately represent responsibilities 37 terms favored officers corporation, contrast pronounced. bird's-eye helpful. Historically, storing delivering service, too expensive concern maintain. needed help, became transformation rendered exempt. subsidy, authorizing engage supply 38 once rural, encompasses eight city original provides tiny fraction gross income. fiscal year ending 1980, total approximately $450 98% derived 240,000 consumers. 1979-1980 Annual Report, p. 25. second Arizona. Furthermore, long-term debt slightly $2 billion. Approximately $1.78 billion, about 88%, solely All 1972 representing debt, being steadily retired time, purposes—25% 15% playgrounds, parks, like. mind, curious attempt characterize "incidental" irrelevant scheme.5 Here themselves afford finance them. That prices representative control. Unlike situation shifted electricity.6 least, indebtedness together compels finding placed minimal possibly 40 follows: 41 "[T]he taken independent significance. magnitude percentage paid manner unrelated ownership, elevate substance functioning benefit landowners." Cipriano, item concerning municipally system. Of resolution said: "Of course, systems—gas, electricity—affects every city, bills, outstanding. Certainly feeling bad high rates, reaping good low rates." 1900.7 apparent landowning irrigators getting free ride seem lower. subsidizing follow subsidy totally select few.8 akin ignores reality. towns, shops, hospitals, facilities designed improve quality life department, police, buses, trains." short, itself. strong. country. obvious. strong tied operation. encumbrance best speculative. Certainly, argument presented today. Simply put, integral actor ignore reality operations.9 IV 46 Underlying governmental—that "simply demands" "such services." 366. distinctly odd reach day age. Supplying domestic industrial everywhere responsibility intimately connected sanitation health. accurate Government agencies amounts power; widespread systems, facetious suggest systems government. do, seems me, return proprietary-governmental dichotomy activity landowners.10 47 Indian Towing 350 61, 67-68, 122, 125-126, 100 L.Ed. 48 (1955), remarked: " 'Government partly private, depending pedigree conducts it.' Crop Insurance Corp. Merrill, 332 380, 383-384, 1, 2-3, 10. hard think 'operational level,' concern, 'uniquely governmental,' kind time been, conceivably be, performed." 49 Lafayette Louisiana Light 435 389, 98 1123, 55 364 (1978), STEWART, after quoting passage described "proprietary" "governmental" "quagmire" 'so finespun capricious incapable mind adequate formulation.' 433, 1147 (dissenting opinion) (quoting 68, 126). proprietary action "is surely government." 434, 1147. 50 nowhere purpose. presented, rule. necessarily electrical, gas Amendment's safeguards. If stricter standards Amendment, decided was. facile characterization misreading holdings. V 51 extreme importance. daily lives unable meaningful operations.11 view, properly reasoned save arrangement. extension unwise suggestion somehow warrant review history, organization, financing drawn recent method Directors departed one-acre, originally 1969 cast fractional votes acreage. C membership Before 1976, directors, designated geographical enlarged large, having at-large election. 45-961 B, 45-963 Each President Vice President, acreage-weighted basis. 45-963. applies scope diversity appellees' water: scale interpretation side dabbles pick up little extra closely interwoven class." 184-185. Among County Commissioners establishing courthouses jails, appointing health officials, building roads bridges, administering welfare, setting rate, adopting budget, equalizing assessments. 476, 1115. uniform straitjacket bind devising mechanisms suitable efficient solving problems." 1120. "[e]ducation traditionally function, term." 795. similar Wyoming, referendum majority proposed (per curiam ). 583, stated interest. considering adopted, imposed requirement. parks. Another 25% municipalities. latter, belongs cities receiving agents. lands, earnings, 1973 pledges last 1951. staff 8, 8. dissenting companion collect 749, 1240 (Douglas, J.). invalid tying approve library, 172, utility, ), 523. full powers, 727, represents invokes However, Indeed, both Inc., erosion flooding express districts; exerts misconstrued stating portion ownership." 184 added). Though agents allotments, 9, show entitlement derives rights appurtenant entitlements stored Significantly, status technically exempts taxes, contributions treasury 45-2201 manner, 1227, alter measured gross-power equal sum dividends common stockholders comparable utility. Supreme Court: "Most managed officials. town profits Instead, landholders. defray irrigating profit. merely product, pay. 'serve people' operates 'inhabitants district' owners." I. B. 44, 402-403. consumer-business obscured claim standing. customers outside Thus, rests wrong putative voters. come 2% charges deliveries. electricity; committing security credit appellees, participants legislators upsets rationality voted all. exclusively alleys, canal way, bed hardly said acted irrationally electors law. boards strictly majoritarian (1969). unique education Brown Education, 347 483, 493, 74 686, 873 (1954). Cf. (1978) (nonresidents "police jurisdiction" neighboring city). deprecated fairly 628, 481, 6, 1118, today, evident reasoning questioned. See, e. ante, 364-365, latitude structuring nonlegislative positions need elections, discriminations scrutinized enunciated progeny. possibility departing left open "may give organization's functions." 1119-1120. assuming affected, unconstitutional, exact apply. today alternative plan instead sanctions unjustifiable exclusion. state-court business-oriented. 368. International Brotherhood Electrical Workers 393 (1954); Mesa 91, 373 722 (1962), dism'd, 372 704, 83 1018, 124 (1963). descriptions procedures inquiry resolved courts. Rev.Stat.Ann. 45-935 B (Supp.1980-1981) provides: "For acquiring assuring board, name may, develop, lease, purchase, construct, operate, equip, maintain, repair replace, coal, oil, gas, oil shale, uranium materials, hot steam, geothermal materials minerals, solar energy, wind, compressed air .." stipulate unimportant legally insignificant. context generating "incident" members. Stipulated Statement Facts, Nos. 12, 17. undercuts Even acknowledging remains "primary" legal sense, Indeed "District reliable essential portions Valley; thus, Valley." 46. substantial. that: "During ten years 83% 1974, $2,613,184. expenses, depreciation, exceeded $14,000,000, deficit averaged $10,000,000 annually 1965. include expenditures additions plant repayment decrease increased charges." 45. thought file amicus brief Brief Amicus Curiae, O.T.1968, 705. argued "only segment id., 5, applied. arguments merits Cipriano. chance participate, seek lessen subsidy. excuse prohibited "sector Carrington Rash, 380 89, 94, 85 775, 779, (1965). broader grants police conducted commission. While go fund, contribute extend franchise. taxpayers views inconsistent correct, reading various courts circumstances Choudhry Free, Cal.3d 660, 131 Cal.Rptr. 654, 552 438 (1976); Johnson Lewiston Orchards Irrigation Idaho 501, 584 646 regard, citation 477 (1974), misplaced. "not exclusive prerogative State." 454. observation implies actually valid activity. safeguards reached Jackson. 354, 455, (States segregate schools exclude religious while exclude). Once services, footnote, 371, 20, POWELL his concurring represented maintains ultimate lacks merit past 1118. 10, 1890, ultimately creature elective satisfied indirect imprecise POWELL. 406, 1133, (rejecting Sherman dissatisfied recourse legislature).

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