Municipal corporations: public utility service: water and sewer service.

Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, which are subject to control by their governing bodies. Existing law authorizes any municipal corporation to acquire, construct, own, operate, or lease any public utility, as defined, to furnish its inhabitants with light, water, power, heat, transportation, or means of communications and to furnish those services outside its boundaries, except within another municipal corporation that furnishes the same service or that does not consent. Existing law authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law requires that a resolution authorizing the sale of a public utility be passed by 23 of the members of the legislative body of the municipal corporation and be passed by a 23 vote of all voters voting at an election to authorize the sale in the ordinance calling the election. Existing law establishes an alternative procedure whereby a municipal corporation can lease, sell, or transfer that portion of a water utility used for furnishing water service outside the boundaries of the municipal corporation. This bill would additionally authorize a municipal corporation to utilize the alternative procedures to lease, sell, or transfer that portion of a municipal utility used for furnishing sewer service outside the boundaries of the municipal corporation. This bill would incorporate additional changes to Section 10061 of the Public Utilities Code proposed by AB 2339 to be operative only if this bill and AB 2339 are enacted and this bill is enacted last.