CA AB1361

Authorizes municipal water districts to apply to local agency formation commissions to provide water service to Indian lands not within district boundaries at the same terms as district customers, if the Indian tribe meets certain conditions.

Allows districts to extend water service to Indian lands that were part of a reservation or held in trust as of January 1, 2017, through applications submitted before January 1, 2023.

Requires Indian tribes requesting water service to comply with all federal and tribal laws, obtain necessary federal and tribal approvals, and accept all district payment terms and conditions as if their lands were fully annexed.

Prohibits local agency formation commissions from approving new applications for water service extensions to Indian lands on or after January 1, 2023, but allows districts with prior authorizations to continue providing service.

Exempts the state from reimbursement obligations under Article XIII B of the California Constitution because local agencies may charge service fees sufficient to cover the mandated program costs.