- Committee -

SCS/SB 1177 - This act pertains to Joint Municipal Utility Commissions.

SECTION 393.705 - Provides a definition for "participating municipality", modifies the definition of "project" to include the improvement of any utility facility or property including, without limitation, transmission and distribution systems, and all other types of utilities and revenue-producing facilities as deemed appropriate by the governing bodies of the contracting or participating municipalities. The reference to project facilities being "used and useful" has been eliminated.

SECTION 393.710 - Allows municipalities, public water supply districts, and sewer districts to establish a joint municipal utility commission by join contract. The specifications of those contracts are laid out here. The term "project" is applied as it has been defined in Section 393.705; other technical changes are made.

SECTION 393.715 - The general powers of a commission are modified here, to be exercised for the benefit of its contracting members. Language clarifies that the either the board of directors or the executive committee of the commission can make decisions.

SECTION 393.720 - Language that establishes the commission as a body politic and corporate of the state; emphasizes that the commission can exercise public powers for the benefit of its contracting members and in order to carry out the public functions of its contracting members.

SECTION 393.725 - The issuance of bonds by the commission is outlined. Technical changes are made primarily to accommodate the possibility that a single joint commission may be involved in financing separate projects serving different sets of municipal utilities, which would need segregated financial treatment.

SECTION 393.730 - Added language that reiterates the requirement of sufficiency of project revenues to secure repayment of joint commission bonds.

SECTION 393.740 - Authorizes participating entities to apportion any tax obligations among themselves.

SECTION 393.745 - Incorporates reference to potential delegation of board authority to its executive committee.

SECTION 393.760 - Permits a joint commission and remaining municipalities involved in a joint project to proceed with the project without the involvement of any proposed participating municipality in which the majority of voters fail to approve the issuance of municipal bonds. Changes to ballot language are included here.

SECTION 393.770 - Clarifies that revenue the joint commission derives from any and all services of its interest in a project may be available for bond repayment, and that joint commission sales of energy or other commodities to a municipal utility do not constitute a debt or obligation of the municipality payable from any other source other than its utility operations.

MEGAN CRAIN