SB 791 Modifies provisions pertaining to sewer and water utilities
Sponsor: Griesheimer
LR Number: 4351S.07T Fiscal Note: 4351-07T.ORG
Committee: Jobs, Economic Development and Local Government
Last Action: 7/7/2010 - Signed by Governor Journal Page: S1960-1961
Title: CCS HCS SB 791 Calendar Position:
Effective Date: August 28, 2010
House Handler: Emery

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CCS/HCS/SB 791 - This act modifies provisions pertaining to sewer and water utilities.

SECTION 204.300 - Common Sewer District Board of Trustees

The act provides that if the county governing body does not appoint a trustee to fill a vacancy on the board of trustees for a common sewer district within 60 days, then the remaining trustees may fill the vacancy. Under current law, the board of trustees for a common sewer district located in Jackson and Cass counties consists of 8 members. This act increases the membership to 10 by adding 2 additional city mayors on the board.

This section is nearly identical to the provision in TAT/SCS/HB 1612 (2010) and is similar to SB 874 (2010).

SECTION 204.472 - Annexation and Sewer Service

Current law allows the City of Poplar Bluff and sewer districts in Butler County to develop agreements to provide sewer service to land annexed by the City. Current law also provides procedures to develop such agreements when the City and a sewer district cannot agree on terms. This act extends the authority to develop such agreements to apply to any city and sewer districts in any county of the third classification and also makes these entities subject to the procedures for when agreement cannot be reached by both parties.

This section is identical to the provision in TAT/SCS/HB 1612 (2010) and is similar to SB 850 (2010) and SCS/SB 333 (2009).

SECTION 204.571 - Sewer Subdistrict Advisory Board

Under current law, the advisory board for a common sewer subdistrict must elect a chairman, vice-chairman, and a representative to the common sewer district's advisory board. The act allows the same person to serve in more than one of these roles if the subdistrict's advisory board is less than 3 people. The act allows the board of trustees for the common sewer district to appoint advisory board members to the subdistrict's advisory board, if a political subdivision does not fulfill its duty to appoint such advisory board members within 60 days.

This section is identical to the provision in TAT/SCS/HB 1612 (2010).

SECTION 250.233 - Determining Rates for Sewer Service

Current law requires water companies and public water supply districts to make water service data available to cities that provide sewer services so that the cities can better calculate rates for service. The act requires the water providers to also make this information available to sewer districts.

This section is identical to the provision in TAT/SCS/HB 1612 (2010).

SECTION 393.320 - Acquisition of Water Utilities

If a large water utility elects to use the procedures, this section specifies procedures that the Public Service Commission (PSC) must use when determining the ratemaking rate base for a small water utility when such utility is acquired by the large water utility. A small water utility is a utility that provides water or sewer service to 8,000 or fewer customers and a large water utility is a regulated water company that provides water or sewer service to more than 8,000 customers. An appraisal for the sale must be prepared by 3 appraisers who shall be appointed as specified. The PSC may determine the ratemaking rate base for the small utility using options including the purchase price, appraised value, or the rate base in the utility's most recent rate case, if applicable. Any outstanding fees for a water pollution control permit issued by the Department of Natural Resources for the small utility must be resolved prior to sale, or else the outstanding fees become the responsibility of the large utility. New water pollution control permits issued for small utility when acquired by a large utility must include a plan to resolve any outstanding permit compliance issues. The large utility must provide service to all of the customers of the utility being acquired.

This section is similar to HB 2196 (2010).

ERIKA JAQUES