CA AB2339

Authorizes the Cities of El Monte, Montebello, and Willows to sell public water utilities for consolidation purposes until January 1, 2022, if the subsumed system is wholly within city boundaries and the city determines it is uneconomical to operate.

Requires the sale price to be fair market value, approved by four-fifths vote of the city's legislative body, and mandates an independent third-party study demonstrating deferred maintenance on aging infrastructure.

Prohibits rate discrimination between consolidated customers and requires consolidation to be economically feasible for ratepayers of the subsumed system, with rate increases phased in over time.

Establishes a protest procedure allowing 45 days for written protests; if 50% or more of interested persons protest, the city cannot proceed with the sale for one year; if 10% or more protest, a voter election is required for approval.

Amends Public Utilities Code Section 10061 to add an exception for the three named cities and includes provisions for sewer service consolidations if Assembly Bill 2179 also becomes effective.