(a)
It is the intent of the Legislature to ensure both of the following:
(1)
That when a mutual water company is formed or is about to be formed in connection with a subdivision, as defined in Sections 11000 and 11004.5 of the Business and Professions Code, an adequate potable water supply and distribution system exists for domestic use and fire protection.
(2)
That adequate disclosure and protection to the security
holders exist with respect to rights and duties arising from their security holdings in a mutual water company.
(b)
For purposes of this chapter, the use of the term “subdivision” has the same definition as “subdivision” as defined in Sections 11000 and 11004.5 of the Business and Professions Code.