Existing law authorizes the formation of municipal utility districts by one or more public agencies, defined to include a city, county water district, county sanitation district, or sanitary district. Formation of a municipal utility district may be initiated by resolution of the legislative bodies of one or more public agencies, or by petition of voters, and is subject to voter approval at an election. Existing law provides that no public agency may be divided in the formation of a district. Existing law generally provides for a municipal utility district to be governed by a board of directors consisting of 5 elected members, but provides alternative governing structures for certain municipal utility districts.
This bill would require the participation of at least 2 public agencies to initiate the process of formation of a municipal utility district, would delete the prohibition on dividing a public agency in the formation of a district, except that a city may not be divided in the formation of a district, and would authorize a county to be considered a public agency for these and certain other related purposes relative to the unincorporated area of a county.