CA Gov't Code Section 61106

(a)

If a board of directors desires to exercise a latent power, the district shall first receive the approval of the local agency formation commission, pursuant to Article 1.5 (commencing with Section 56824.10) of Chapter 5 of Part 3 of Division 3.

(b)

After receiving the approval of the local agency formation commission, the board of directors may, by ordinance, order the exercise of that power.