Under present law, the Utility District Law of 1937 provides that if a utility district is financially distressed or is financially unable to expand the amount or type of service or services described in its petition for creation, then the utility management review board may consider the consolidation of the financially distressed utility district with another utility district or districts, municipal utility system or county utility system to restore financial stability and to ensure continued operations for the benefit of the public being served by the utility district. Present law sets out in detail the requirements and process for such a consolidation.
This bill additionally authorizes the board to consider a merger of the financially distressed utility district with another utility district. This bill makes corresponding changes through the present law provisions to reflect the authorization for a merger of a financially distressed utility district with another utility district and the consolidation of a financially distressed utility district with a municipal utility system or county utility system.

Statutes affected:
Current Version: 7-82-704-