Bill Text: CA AB689 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Municipal Utility District Act: nonstock security.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2019-09-05 - Chaptered by Secretary of State - Chapter 230, Statutes of 2019. [AB689 Detail]

Download: California-2019-AB689-Amended.html

---

Amended  IN  Assembly  March 21, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 689

---

Introduced by Assembly Member McCarty

February 15, 2019

---

An act to amend Section 11501 of add Section 12773 to the Public Utilities Code, relating to the Municipal Utility District Act.

LEGISLATIVE COUNSEL'S DIGEST

AB 689, as amended, McCarty. Municipal Utility District Act. Act: nonstock security.

The Municipal Utility District Act authorizes the formation of a municipal utility district and authorizes a district to acquire, construct, own, operate, control, or use works for supplying the inhabitants of the district and public agencies with light, water, power, heat, transportation, telephone service, or other means of communication, or means for the collection, treatment, or disposition of garbage, sewage, or refuse matter.

This bill would make a nonsubstantive change to the provision naming the act.

This bill would authorize a district that has owned and operated an electrical distribution system or electrical generating facility for at least 8 years and that contains a population of 250,000 or more persons to acquire and hold nonstock security, as defined, in a corporation or other private entity. The bill would authorize the governing board of the district to sell or otherwise dispose of the nonstock security when, in its judgment, it is in the best interests of the district to do so.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

---

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 12773 is added to the Public Utilities Code, to read:

12773.

 (a) For purposes of this section, “security” has the same meaning as defined in Section 25019 of the Corporations Code.

(b) This section is only applicable to a district that has owned and operated an electrical distribution system or electrical generating facility for at least eight years and that contains a population of 250,000 or more persons.

(c) A district meeting the requirements of subdivision (b) may take by grant, purchase, gift, devise, lease, or otherwise acquire and hold nonstock security in a corporation or other private entity. The board may sell or otherwise dispose of the nonstock security when, in its judgment, it is in the best interests of the district to do so.

SECTION 1.Section 11501 of the Public Utilities Code is amended to read:

11501.

This division shall be known, and may be cited, as the “Municipal Utility District Act.”