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
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
April 11, 2019 |
|
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 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: 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 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 the Sacramento Municipal Utility District to operate a pilot project, until January 1, 2025, to allow the board of directors of the district to acquire and hold nonstock security, as defined, security 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. The bill would limit the pilot program to 3 acquisitions and would require
that any profit or gain earned by the acquisitions be used to benefit the district’s ratepayers.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill 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
(b) The Sacramento Municipal Utility District is authorized to operate a pilot project to allow the board of directors of the district to take by grant, purchase, gift, devise, lease, or otherwise acquire and hold nonstock security in a corporation or other private entity. The board of directors of the district 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.
(c) Before exercising the authority described in subdivision (b), the district’s board of directors shall do all of the following:
(1) Make the following findings:
(A) The acquisition furthers the purposes of the district, pursuant to the Municipal Utility District Act.
(B) The acquisition is in the interest of the district’s ratepayers and the public.
(2) Establish a policy governing acquisitions that shall include, but not be limited to, the following:
(A) Procedures for preventing conflicts of interest and violations of
Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code.
(B) Procedures for determining how much of an acquisition to accept in lieu of, or in addition to, other forms of remuneration, in order to ensure the district secures a reasonable return on any intellectual property or other resources it provides the private entity.
(C) Procedures governing the approval process for accepting any acquisitions.
(3) Post the policy described in paragraph (2) on the district’s internet website.
(4) Adopt a resolution at a regular meeting of the board stating the intent of the board to exercise the authority described in subdivision (b).
(d) The authority
described in subdivision (b) shall be limited to a total of three acquisitions. Any profit or other gain earned by these acquisitions shall be used to benefit the district’s ratepayers.
(e) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.
