California Code, Public Utilities Code - PUC § 12773

(a) For purposes of this section, “security” has the same meaning as defined in Section 25019 of the Corporations Code.

(b) The Sacramento Municipal Utility District is authorized to operate a pilot project to allow the board of directors of the district to hold nonstock security in a corporation or other private entity if acquired as part of a procurement of goods or services from that entity, provided that no separate funding is expended solely for the nonstock security. The board of directors of the district may sell or otherwise dispose of the nonstock security when, in its judgment, it is in the best interests of the district to do so.

(c) Before exercising the authority described in subdivision (b), the district's board of directors shall do all of the following:

(d) The authority described in subdivision (b) shall be limited to a total of three acquisitions. Any profit or other gain earned by these acquisitions shall be used to benefit the district's ratepayers.

(e) The value, at the time of acquisition, of any single nonstock security acquired pursuant to the authority described in subdivision (b) shall be limited to no more that 3 percent of the district's annual revenue in the fiscal year the district makes the acquisition.

(f) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.