SB 297 Modifies provisions related to water utilities
Sponsor: Lager
LR Number: 1352S.05P Fiscal Note available
Committee: Commerce, Consumer Protection, Energy and the Environment
Last Action: 4/16/2013 - Defeated on S Third Reading Journal Page: S775
Title: SCS SB 297 Calendar Position:
Effective Date: August 28, 2013

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Current Bill Summary


SCS/SB 297 - This act modifies provisions relating to water utilities.

ST. CHARLES COUNTY (SECTION 67.312) - This act prohibits any water supply district in St. Charles County that does not actually process or treat sewage or wastewater but pays another governmental entity for the service, and that contracts with a for-profit management company for contract management and operations, from charging or collecting any increase in rates, charges, or fees without a majority vote of the qualified voters of the water supply district. This act also prohibits any water supply district in St. Charles County that does not actually process or treat sewage or wastewater but pays another governmental entity for the service from increasing the amount that the entity charges and collects from its customers to pay the sewage or wastewater processing entity without a majority vote of the qualified voters of the water supply district.

This section is similar to HCS/HB 75 (2013), and is identical to the perfected HCS/HB 178 (2013).

REPAIR OF LATERAL SEWER SERVICE LINES (Section 249.424) - This act allows voters to approve a levy or a fee not to exceed $50 per year for the repair of lateral sewer service lines on or connecting residential property. The fee shall not be imposed on property in the sewer district that already imposes a fee. The fee imposed shall be imposed on condominiums that have 6 or fewer units per building and each unit shall be responsible for its proportionate share of any fee. The county collector may collect the fee by adding such fee to the general tax levy bills of property owners. The revenues generated shall be separated from all other revenues and be used for carrying out the defective lateral sewer service line repairs.

UNPAID SEWER CHARGES (Section 249.645) - Currently, if a customer's sewer charges remain unpaid in excess of three months, the sewer district must notify the customer by certified mail before the public sewer district may disconnect the customer's sewer line. This act removes the requirement that the notice to the customer must be sent by certified mail.

This section is similar to SB 360 (2013).

RATEMAKING FOR WATER UTILITIES (SECTION 393.320) - This act specifies the ratemaking for a small water utility being acquired by a large water utility. Upon acquisition, small water utilities shall become part of a large water utility that is either contiguous, closest geographically, or best suited to acquire the small water utility. The small water utility acquired by a large water public utility shall become part of an existing service area for ratemaking purposes whether or not the procedures for establishing a ratemaking rate base have been utilized. The Public Service Commission shall approve such acquisitions as may be just and reasonable.

This section is substantially similar to the truly agreed and finally passed SS/SCS/HB 142 (2013).

MUNICIPAL BONDS (Section 393.760) - This act also removes the public voting procedure for bonds that indebt the joint municipal utility commission and allows the governing bodies of each contracting municipality to vote for such bonds. This vote must be approved by 3/4 of all governing bodies of the contracting municipalities.

This section is identical to a section contained in the truly agreed and finally passed SS/SCS/HB 142 (2013).

RATEMAKING FOR WATER AND SEWER UTILITIES (Section 393.1000-393.1003) - Currently, only water corporations in St. Louis County may utilize infrastructure system replacement surcharges (ISRS). This act makes all water and sewer corporations eligible provided the corporations produce ISRS revenues of at least one million dollars, or ten thousand dollars for small water and sewer corporations every three years. The following types of projects will qualify for ISRS: energy efficiency projects, water or sewer utility plant projects done as part of a commission order, and replacement of lines and meters as part of a water or sewer utility plant project. The provisions of this section shall expire on August 28, 2019 unless reauthorized by the General Assembly.

These sections are identical to sections contained in the perfected HB 44 (2013), HCS/HB 198 (2013), and HCS/SB 294 (2013).

KAYLA CRIDER