SB 1120 - This act modifies Section 393.015, RSMo, first by enabling water companies to contract with sewer providers to terminate water services to any water user who has not paid a sewer bill.

This act awards immunity from civil liability to any water company disconnecting service at the behest of a sewer company via a water termination agreement.

This act allows sewer companies to file a request with the Public Service Commission (PSC) if the request made to the water company has not been honored within the six-month time frame. The PSC would then draft such an agreement between the two companies. Under this act, three commissioners shall be appointed by the companies to draft the termination agreement.

The provisions in any water termination agreement drafted by the PSC are as follows:

-The rules and regulations of the sewer provider shall provide the number of delinquent days that are required before water service is discontinued for failure to pay a sewage bill.

-The sewer provider must first provide written notice to the water provider before service is discontinued - that notice shall include both the date and amount due on the delinquent bill.

-All reasonable expenses incurred by the water provider in carrying out the water termination agreement shall be reimbursed by the sewer provider.

-Water companies carrying out these agreements shall be held harmless as a result of carrying out the agreement. Related costs to the water provider shall be recalculated annually.

-Payments received as a result of these agreements shall be received by the water company before service is restored. If service is never restored, any amount collected for delinquent accounts shall be equally divided between the water and sewer companies.

This act allows both the sewer and water companies to present evidence and information to the PSC before such an agreement is drafted, provided each company receive prior notice of the hearing from the PSC. Once an agreement is drafted under this act, the PSC shall submit the agreement to the appropriate circuit court and a decision as to the approval of said agreement shall be issued therein. If an agreement is not approved, the PSC shall then submit a revised agreement to the court for reconsideration. All court decisions are subject to appeal and all costs incurred in the process shall be paid by the sewer provider requesting the agreement.
MEGAN CRAIN