CA AB850

Extends authorization for the Cities of El Monte, Montebello, and Willows to sell public water utilities until January 1, 2024, allowing consolidation with other public water systems if the city determines ownership is uneconomical.

Removes requirement that the water system being consolidated must be wholly within city boundaries.

Expands definition of "interested persons" for protest purposes to include ratepayers outside the city, in addition to city residents.

Requires the receiving water system to have a bordering service area, fair market value sale price, four-fifths legislative vote, proof of deferred infrastructure maintenance, and rate equalization for consolidated customers.

Mandates a four-fifths city council vote to approve the sale and calls for an election if at least 10 percent of interested persons protest; prevents sale if 50 percent or more protest unless conditions are re-met after one year.