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HomePublic Utilities CodeDiv. 7Ch. 4Art. 7§ 16606 District Utility Audit Requirements

§ 16606 District Utility Audit Requirements

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16606 District Utility Audit Requirements

Key Takeaways

  • •Every two years, the board can hire an expert to check how the district is doing.
  • •The expert looks at money, contracts, services, and properties to make sure everything is fair and working well.
  • •If 15% of voters ask for it, the board must do this check.
  • •The expert checks if the services are good and if the prices are fair.

Example

Imagine your town’s water company raises prices a lot, and people are upset.

If 15% of voters sign a petition, the board must hire an expert to check if the water company is doing a good job and if the new prices are fair. The expert will look at the company’s money, contracts, and how they run things to make sure everything is okay.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16606 District Utility Audit Requirements

Every two years the board may, and upon petition of 15 percent of the electors of the district shall, employ a qualified expert who shall with all due diligence examine and report upon the following: (a) The system of accounts kept by the district. (b) All the contracts made and entered into by the board within the two years immediately preceding. (c) The management of the utilities of the district, their operation, the service furnished, and the rates charged by the district. (d) The properties and investments of the district. (e) All official acts of the board relating to acquisition, construction, completion, extension, improvement, and betterment of the public utilities of the district. (f) The efficiency and adequacy of each public utility, and of the property used in connection with it or with its operation, the reasonableness of the service and commodities furnished, and of the rates and charges therefor. (g) All the business and affairs of the district relating to the ownership, management, and operation of each public utility of the district. (Added by Stats. 1953, Ch. 72.)

Last verified: January 23, 2026

Key Terms

boardqualified expertelectorspublic utilitiesdistrict

Related Statutes

  • § 101151 Transit Facility Regulation Authority
  • § 101152 Transit System Operations Authority
  • § 101154 District Professional Services Contracts
  • § 101150 District Board Authority
  • § 101153 School Transit Contracts

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 16606.
View Official Source