California AB 1712: Unclaimed property.

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 Bill Text - AB-1712 City of Santa Fe Springs: sale of water utility property.

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 |Add To My Favorites |Track Bill | Version: 04/06/26 - Amended Assembly
 03/16/26 - Amended Assembly
 03/09/26 - Amended Assembly
 02/04/26 - Introduced

 AB-1712 City of Santa Fe Springs: sale of water utility property.(2025-2026)

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 Date Published: 04/06/2026 09:00 PM

AB1712:v96#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 April 06, 2026

 Amended
 IN 
 Assembly
 March 16, 2026

 Amended
 IN 
 Assembly
 March 09, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1712

Introduced by Assembly Member Pacheco

February 04, 2026

 An act to add and repeal Section 37420.5 of the Government Code, relating to local government. 

LEGISLATIVE COUNSEL'S DIGEST

AB 1712, as amended, Pacheco.
 City of Santa Fe Springs: sale of water utility property.

Existing law authorizes the furnishing of utility services by publicly owned public utilities, including municipal corporations, that 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, and authorizes a municipal corporation to sell or dispose of any public utility it owns. Existing law establishes procedures whereby a municipal corporation may lease, sell, or transfer that portion of a water utility used for furnishing water service outside or inside the boundaries of the municipal corporation, including, in the case of sale or transfer of the public utility located inside the municipal boundaries, the determination that the public utility is not necessary for supplying water to its own inhabitants or that its inhabitants will be provided with equal or better
 service by the acquiring entity, if the sale or transfer is approved by a majority of all voters voting on the issue in an election, and the acquiring entity discloses specified information before the election.

This bill would authorize the City of Santa Fe Springs, until January 1, 2032, to sell its public utility for furnishing water service for the purpose of consolidating its public water system with another public water system pursuant to specified procedures if certain requirements are met. The bill would require the city to consider oral and written protests, as provided, and would prohibit the city from selling the public utility for one year if 50% of interested persons, as defined, protest the sale.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Santa Fe Springs.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 37420.5 is added to the Government Code, to read:

37420.5.

 (a) Notwithstanding Article 2 (commencing with Section 10051) of Chapter 1 of Division 5 of the Public Utilities Code, the City of Santa Fe Springs may sell its public utility for furnishing water service pursuant to this article for the purpose of consolidating its public water system with another public water system if its legislative body determines that it is not in the public interest to own and operate the public utility for furnishing water service, subject to all of the following requirements:

(1) The legislative body of the city shall not sell the water utility property for less than its fair market value, as defined in Section 1263.320 of the Code of Civil
 Procedure.

(2) The legislative body of the city shall not sell the water utility property without obtaining a four-fifths vote of the city’s legislative body.

(3) The city’s existing water supply is contaminated, impaired, or otherwise presents a risk to public health, and the city lacks the technical, managerial, or financial capacity to provide for necessary treatment or replacement, or the cost of continued operation, maintenance, or treatment by the city would impose an unreasonable financial burden on ratepayers, as demonstrated by an independent financial analysis applying financial industry standards in adherence to Section 6 of Article XIII D of the California Constitution, commonly referred to as Proposition 218.

(4) The receiving water system’s service area borders the service area of the subsumed water system.

(4)

(5) Consolidation of the water